815600B7FD80E48C18962024-01-012024-12-31815600B7FD80E48C18962024-12-31815600B7FD80E48C18962023-12-31815600B7FD80E48C18962023-01-012023-12-31815600B7FD80E48C18962022-12-31815600B7FD80E48C18962022-12-31ifrs-full:IssuedCapitalMember815600B7FD80E48C18962022-12-31ifrs-full:TreasurySharesMember815600B7FD80E48C18962022-12-31ifrs-full:ReserveOfCashFlowHedgesMember815600B7FD80E48C18962023-12-31ext:ReserveForEquityInstrumentsPerpetualHybridBond815600B7FD80E48C18962022-12-31ext:OtherReservesAndRetainedEarningsMember815600B7FD80E48C18962022-12-31ext:ProfitLossAttributableToOwnersOfParentMember815600B7FD80E48C18962022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember815600B7FD80E48C18962022-12-31ifrs-full:NoncontrollingInterestsMember815600B7FD80E48C18962023-01-012023-12-31ext:OtherReservesAndRetainedEarningsMember815600B7FD80E48C18962023-01-012023-12-31ext:ProfitLossAttributableToOwnersOfParentMember815600B7FD80E48C18962023-01-012023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember815600B7FD80E48C18962023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember815600B7FD80E48C18962023-01-012023-12-31ifrs-full:ReserveOfCashFlowHedgesMember815600B7FD80E48C18962023-12-31ifrs-full:IssuedCapitalMember815600B7FD80E48C18962023-12-31ifrs-full:TreasurySharesMember815600B7FD80E48C18962023-12-31ifrs-full:ReserveOfCashFlowHedgesMember815600B7FD80E48C18962023-12-31ext:OtherReservesAndRetainedEarningsMember815600B7FD80E48C18962023-12-31ext:ProfitLossAttributableToOwnersOfParentMember815600B7FD80E48C18962023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember815600B7FD80E48C18962023-12-31ifrs-full:NoncontrollingInterestsMember815600B7FD80E48C18962024-01-012024-12-31ext:OtherReservesAndRetainedEarningsMember815600B7FD80E48C18962024-01-012024-12-31ext:ProfitLossAttributableToOwnersOfParentMember815600B7FD80E48C18962024-01-012024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember815600B7FD80E48C18962024-01-012024-12-31ifrs-full:NoncontrollingInterestsMember815600B7FD80E48C18962024-01-012024-12-31ifrs-full:ReserveOfCashFlowHedgesMember815600B7FD80E48C18962024-01-012024-12-31ext:ReserveForEquityInstrumentsPerpetualHybridBond815600B7FD80E48C18962024-12-31ifrs-full:IssuedCapitalMember815600B7FD80E48C18962024-12-31ifrs-full:TreasurySharesMember815600B7FD80E48C18962024-12-31ifrs-full:ReserveOfCashFlowHedgesMember815600B7FD80E48C18962024-12-31ext:ReserveForEquityInstrumentsPerpetualHybridBond815600B7FD80E48C18962024-12-31ext:OtherReservesAndRetainedEarningsMember815600B7FD80E48C18962024-12-31ext:ProfitLossAttributableToOwnersOfParentMember815600B7FD80E48C18962024-12-31ifrs-full:EquityAttributableToOwnersOfParentMember815600B7FD80E48C18962024-12-31ifrs-full:NoncontrollingInterestsMemberiso4217:EURiso4217:EURxbrli:shares 2024 Report on Operations 2024 Report on Operations these Financial Statements are available at the website gruppoa2a.it 2 A2A Report on Operations 2024 Contents 2.1 Overview of performance, financial conditions and net debt 30 2.2 Significant events during the year 40 2.3 Significant events after December 31, 2024 47 2.4 Business outlook 48 2.5 Proposal for the allocation of net result for the year ended December 31, 2024 and the distribution of a dividend 49 2 Consolidated results and report on operations 4.1 Summary of results sector by sector 60 4.2 Results by sector 64 4.3 Generation and Trading Business Unit 66 4.4 Market Business Unit 69 4.5 Waste Business Unit 73 4.6 Smart Infrastructures Business Unit 76 4.7 Corporate 80 4 Analysis of main sectors of activity 5 Letter to Shareholders and Stakeholders 2024 9 Corporate bodies 1.1 Business Units 10 1.2 Geographical areas of activity 12 1.3 Group Structure 14 1.4 Financial highlights at December 31, 2024 15 1.5 Shareholding 18 1.6 A2A S.p.A. on the Italian Stock Exchange 19 1.7 Alternative Performance Measures (APM) 22 1 Key figures of the A2A Group 3.1 Macroeconomic scenario 52 3.2 Energy market trends 55 3 Scenario and market Report on Operations 2024 A2A 3 5.1 General information 88 5.2 Environmental information 156 5.3 Social information 260 5.4 Information on Governance 338 5.5 Certification of sustainability reporting pursuant to Article 81-ter, paragraph 1, of Consob Regulation no. 11971 of May 14, 1999, as amended and supplemented 349 5.6 Independent auditor’s report on the limited assurance of the Sustainability Reporting in accordance with Article 14- bis of Legislative Decree n. 39, dated 27 January 2010 350 5 Sustainability Statement 8.1 Risks and uncertainties 390 8 Risks and uncertainties 6.1 Sustainable Finance 356 6 Sustainable Finance 7.1 Generation and Trading Business Unit 364 7.2 Market Business Unit 368 7.3 Waste Business Unit 371 7.4 Smart Infrastructures Business Unit 376 7 Evolution of legislation and impacts on the Business Units of the A2A Group 9.1 Essential Intangible Assets 404 9.2 Other Information 406 9 Other Information This is a translation of the Italian original “Relazione sulla Gestione 2024” and has been prepared solely for the convenience of international readers. In the event of any ambiguity the Italian text will prevail. The Italian original is available at the website gruppoa2a.it 4 A2A Report on Operations 2024 Corporate bodies Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Letter to Shareholders and Stakeholders 2024 Report on Operations 2024 A2A 5 Once again this year, we address our stakeholders at a time of profound geopolitical transformation. Historical balances, already under strain from recent years of conflict, are now being further challenged by shifting global dynamics. We continue to witness the persistence of wars in various regions of the world, with far-reaching economic and political consequences. On one side, protectionist trade strategies are becoming increasingly assertive; on the other, conservative and nationalist sentiments are gaining ground globally. In Europe, these trends are intensifying fundamental questions about foreign policy, economic cohesion, and common security — all of which weigh heavily on the diplomatic choices required in today’s complex landscape. While the United States cements its position as the world’s leading exporter of natural gas and nuclear energy re-emerges in Italy’s national debate, 2024 has marked a milestone for the European Union in its energy transition journey: for the first time, more electricity was generated from solar power than from coal. Yet, the withdrawal of the US from the Paris Agreement and the limited outcomes of COP29 have signalled a slowdown in international cooperation. One of the key achievements of the previous United Nations Climate Change Conference — the commitment to phase out fossil fuels — was notably absent from the final declaration in Baku. Meanwhile, the climate crisis continues to worsen. 2024 has been the hottest year ever recorded, surpassing the previous record set in 2023. It is also the first year in which the global average temperature exceeded 1.5°C above pre-industrial levels. We are seeing a sharp rise in the frequency and severity of extreme weather events, with devastating consequences for people, natural resources and urban environments alike. This makes the need for collective climate action more urgent than ever — not only to reduce human impact, but also to implement adaptation strategies capable of preparing our infrastructure for the increasingly frequent and severe effects of climate change. In a time when diplomacy and security are gaining increasing prominence on the European political agenda, and the Green Deal appears to be losing momentum, the real challenge lies in keeping the focus firmly on the need for ecological transition — not only as a response to the climate crisis, but also, as highlighted in the Draghi Report, as a means to ensure competitive economic growth. This is a vision fully shared by the A2A Group: decarbonisation, innovation, and contributing to the country’s energy independence are strategic choices that guide our businesses and are fully aligned with the conclusions of the Report on the Future of European Competitiveness. It is within this context that we present the Group’s financial statements, which — together with this letter — serve as a key tool for Letter to Shareholders and Stakeholders 2024 Roberto Tasca Renato Mazzoncini 6 A2A Report on Operations 2024 Letter to Shareholders and Stakeholders 2024 measuring the results achieved, telling the story of our commitment, and sharing with our stakeholders our outlook on the future and the challenges ahead. 2024 was also the first year of application of the Corporate Sustainability Reporting Directive, transposed into national law under Legislative Decree 125/2024\. The European directive requires that all sustainability-related disclosures be fully integrated into the Management Report, placing ESG results on an equal footing with traditional financial reporting and recognising the intrinsic connection between the two. Thanks to the contribution of all the Group’s Business Units — in particular Generation & Trading and Market — we closed 2024 with our best-ever performance: the Gross Operating Margin reached 2,328 million euro, an increase of 18% compared to the previous year, while Net Profit rose to 864 million euro, up 31% from 2023. In 2024, the Group’s total investments amounted to 2,941 million euro, of which 1,512 million euro were dedicated to organic investments, marking a 10% increase compared to the previous year, and 1,429 million euro were related to M&A operations. As for organic investments, the main initiatives focused on the development of solar power plants, the strengthening and efficiency improvement of networks supporting decarbonisation, increasing the flexibility of generation assets, and enhancing material and energy recovery processes. M&A investments were mainly linked to the acquisition from e-distribuzione of 90% of the share capital of Duereti S.r.l., the company vehicle receiving the electricity distribution assets in the province of Milan and in the Valtrompia area of Brescia. The operation involved over 17,000 km of network, approximately 800,000 points of delivery (PODs), and 9,500 substations. This acquisition — the largest in the sector in Italy — will enable the Group to achieve economies of scale, further support growth in densely populated and highly industrialised areas, and reaffirm A2A’s commitment to driving urban decarbonisation and supporting the electrification of energy consumption. Our energy retail customer base expanded with over 150,000 new customers, and we increased our renewable energy production by 27% compared to 2023, reaching over 6.9 TWh — of which 6 TWh came from hydroelectric, solar and wind sources, and 0.9 TWh from other renewable sources such as the renewable fraction of waste and biogas. This generation mix contributed to a significant reduction in the Group’s direct emissions, which fell to 4.6 million tonnes of CO₂, representing an 18% decrease year-on-year. Thanks to our plants and the projects we have implemented, we have contributed to the decarbonisation of the country. Renewable energy generation, the expansion of district heating networks, and the sale of energy efficiency solutions helped to avoid the emission of over 3.3 million tonnes of CO 2 . The circular economy remains a cornerstone of the Group’s strategy. The average separate waste collection rate across the areas we serve reached 71%, and our facilities sent more than 1.1 million tonnes of waste for material recovery, in line with 2023 figures. Our circular approach also extends to internal operations: in 2024 we completed the revamping of the plastic sorting plant in Muggiano, achieving a treatment capacity of 50,000 tonnes per year. This is expected to reduce by-products destined for energy recovery by 7%, and increase overall material recovery by 5%. When it comes to our people, we hired 1,636 new employees in 2024, resulting in a net increase of 819 colleagues. Aware of the serious demographic crisis affecting the country, we launched a programme to support parenthood within the company: a comprehensive package of measures offering up to 10 million euro per year in support, focused on time, financial aid, and training. We have also formulated a Widespread Share Ownership Plan for approval at the Shareholders’ Meeting. This initiative aims to reinforce the principle of value-sharing with those who contribute to its creation on a daily basis and will be extended to all employees. It is a key project for the Group’s long-term success, which confirms A2A’s willingness to share corporate successes with its people, strengthening the sense of belonging and encouraging everyone’s contribution to the achievement of strategic objectives. We also remain committed to the people who make up our value chain, including our suppliers. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Letter to Shareholders and Stakeholders 2024 Report on Operations 2024 A2A 7 This year, we set a goal of reaching an average ESG score of 50 (on a scale from 0 to 100, using the EcoVadis platform) on our orders — a target we exceeded, achieving an average score of 63, with 79% of our partners registered on the platform, a 6-point increase from the previous year. We also launched the Scope 3 project to measure — and later reduce — CO 2 emissions across our supply chain. To support suppliers in this transition, we dedicated one of the working groups in our Multistakeholder Forums — held in 14 locations across most of Italy — to discussing practical tools for improving supply chain sustainability. Another key topic, explored in collaboration with universities, associations and research centres, was the link between biodiversity protection and climate change mitigation — a crucial issue for shaping the future of both the areas where A2A operates and our entire supply network. Engaging all generations in the ecological transition continues to be a central pillar of our Group’s commitment. In 2024, around 120,000 students and teachers took part in our environmental education and sustainability initiatives at both national and local levels. We also created and shared educational content across major social media platforms, aimed at younger audiences, to explain the importance of issues such as sustainability reporting, biodiversity conservation, and working life in our Group. Finally, activities continued through the Banco dell’Energia initiative, which in 2024 carried out 13 projects to tackle energy poverty, raising more than 1.2 million euro to support families in need. Since its founding, Banco dell’Energia has donated over 13 million euro and supported more than 13,000 beneficiaries through over 150 initiatives nationwide. Buoyed by the results achieved in 2024, we confirmed our forward-looking investment plan of 22 billion euro with the updated 2035 Industrial Plan. Of this, 6 billion euro will be allocated to the Circular Economy and 16 billion euro to the Energy Transition, enabling the Group to target an EBITDA of 3.3 billion euro and a net profit of over 1 billion euro by 2035. Over the Plan horizon, the Group aims to maintain its key industrial targets, including 3.4 billion euro in RAB for electricity networks, 5.7 GW of renewable capacity, and over 7 million tonnes of waste treated by 2035, while also ensuring compliance with all financial metrics set by credit rating agencies. Only by combining financial soundness with a commitment to an ecological transition that is fair and sustainable can we guarantee long- term value — for our company and for the communities we serve. We move in this direction every day, together with our 15,000 colleagues, whose professionalism and passion in facing daily challenges have made the results we present today possible. It is thanks to the energy of all that we are building the future, together — with confidence and a shared belief that, in times marked by discontent, optimism and commitment remain the most powerful drivers of progress. The Chief Executive Officer Renato Mazzoncini The Chairman Roberto Tasca 8 A2A Report on Operations 2024 Corporate bodies Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Corporate bodies Report on Operations 2024 A2A 9 Corporate bodies Board of Directors Chair Roberto Tasca Deputy Chair Giovanni Comboni CEO and General Manager Renato Mazzoncini Directors Elisabetta Bombana Vincenzo Cariello Maria Elisa D’Amico Susanna Dorigoni Fabio Lavini Mario Motta Elisabetta Pistis Maria Grazia Speranza Alessandro Zunino Board of Statutory Auditors Chair Silvia Muzi Standing Auditors Maurizio Dallocchio Chiara Segala Alternate Auditors Vieri Chimenti Patrizia Riva Independent Auditors EY S.p.A. 1 Key figures of the A2A Group Report on Operations 2024 10 A2A Report on Operations 2024 Key figures of the A2A Group 1.1 Business Units The A2A Group operates in the production, sale and distribution of gas and electricity, district heating, environmental services and the integrated water cycle. These sectors are in turn attributable to the “Business Units” specified in the following scheme identified following the reorganization made by management: Generation and Trading • Thermoelectric, hydroelectric and other renewable plants • Energy management Market • Sale of electricity and natural gas • Energy Efficiency • Electric mobility Waste • Waste collection and street sweeping • Processing • Disposal and energy recovery Smart Infrastructures • Electricity grids • Gas networks • Integrated water cycle • District heating services • Heat management services • Development and management of technology infrastructures for integrated digital services • Public lighting Corporate • Corporate services This breakdown into Business Units reflects the organization of financial reports regularly analyzed by management and the Board of Directors in order to manage and plan the Group’s business. Key figures of the A2A Group Report on Operations 2024 A2A 11 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY 12 A2A Report on Operations 2024 Key figures of the A2A Group 1.2 Geographical areas of activity Pavia Monza Mantova Brescia - Head Office Varese Lecco Lodi Sondrio Bergamo Cremona Como Milan Lombardy Plants Energy Thermoelectric Hydroelectric Photovoltaic Wind Waste Waste-to-energy plant Waste treatment plant Material recovery plant Landfill Biogas production Services Unsorted Waste collection Distribution and transport Electricity distribution Gas distribution Gas transport District heating District heating Water Integrated Water Service Lighting Public lighting Electric mobility Recharge stations e-Moving A2A Group is also present in the United Kingdom, in Spain, Greece, and Croatia with some technological partnerships related to the activities of the Waste Business Unit. Key figures of the A2A Group Report on Operations 2024 A2A 13 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY 14 A2A Report on Operations 2024 Key figures of the A2A Group Generation and Trading Market Waste Smart Infrasctructures 1.3 Group Structure The chart illustrates the most notable shareholdings within the A2A Group. See the attachments 1, 2, and 3 of the Consolidated Financial Statements for full details of shareholdings. 1\. 30% held via A2A Integrambiente S.r.l.. Other companies A2A gencogas 100% Acinque 41.34% AEB 33,52% A2A Energiefuture 100% A2A Rinnovabili 100% Linea Green 100% Ergosud 50% VGE 05 90% A2A Energia 100% A2A Energy Solutions 100% Metamer 50% Gelsia 100% Acinque Energia 99.75% AGESP Energia 70% Acinque Ambiente 100% Gelsia Ambiente 1 100% 100% Lereti 100% RetiPiù 100% Acinque Tecnologie 100% A2A Illu- minazione Pubblica Amsa 100% 100% Aprica 100% AGRI- POWER 100% Linea Ambiente A2A Ambiente 100% Unareti 100% Duereti 90% LD Reti 100% Retragas 91.60% ASVT 74.80% A2A Calore & Servizi 100% A2A Airport Energy 100% A2A Smart City 100% Camuna Energia 89% A2A Ciclo Idrico 100% Key figures of the A2A Group Report on Operations 2024 A2A 15 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY 1.4 Financial highlights at December 31, 2024 (**) Income statement figures millions of euro 01.01.2024 12.31.2024 01.01.2023 12.31.2023 Revenues 12,857 14,758 Operating expenses (9,637) (11,972) Labour costs (892) (815) Gross Operating Income - EBITDA 2,328 1,971 Depreciation, amortization, provisions and write-downs (1,011) (954) Net Operating Income - EBIT 1,317 1,017 Result from non-recurring transactions 5 2 Financial balance (111) (140) Result before taxes 1,211 879 Income taxes (319) (199) Net result from discontinued operations - 3 Minorities (28) (24) Group result of the year 864 659 Gross Operating Income/Revenues 18.1% 13.4% 12,857 mln € Revenues 864 mln € Result of the year 2,328 mln € Gross Operating Income 0,10 € per share Dividend (**) The figures serve as performance indicators as required by CESRN/05/178/B. 16 A2A Report on Operations 2024 Key figures of the A2A Group Balance sheet figures millions of euro 12.31.2024 12.31.2023 Net capital employed 11,838 9,485 Equity attributable to the Group and minorities 6,003 4,802 Consolidated net financial position (5,835) (4,683) Consolidated net financial position / Equity attributable to the Group and minorities 0.97 0.98 Consolidated net financial position / EBITDA 2.5 2.4 Financial data millions of euro 01.01.2024 12.31.2024 01.01.2023 12.31.2023 Net cash flows from operating activities 1,139 1,040 Net cash used in investing activities (2,813) (1,359) Free cash flow (Cash Flow Statement figure) (1,674) (319) Energy scenario 12.31.2024 12.31.2023 Average of the PUN (Single Nationwide Price) Base load (Euro/MWh) 108 127 Average of the PUN (Single Nationwide Price) Peak load (Euro/MWh) 116 137 Average price of gas to the PSV* (Euro/MWh) 36 42 Average price of emission certificates EU ETS** (Euro/tonne) 66 85 * Price of gas of reference for the Italian market. ** EU Emissions Trading System. Key figures of the A2A Group Report on Operations 2024 A2A 17 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Quantitative KPIs 12.31.2024 12.31.2023 Generation and Trading Thermoelectric production (GWh) 6,189 9,134 Hydroelectric production (GWh) 5,193 3,743 Electricity sold to wholesale customers (GWh) 8,484 10,217 Electricity sold on the Power Exchange (GWh) 13,520 13,561 Market Electricity sold to retail customers (GWh) 24,502 22,964 POD Electricity (#/1000) 2,095 1,934 of which POD Electricity Free Market 1,539 1,307 Gas sold to retail customers (Mcm) 3,139 3,032 PDR Gas (#/1000) 1,549 1,555 of which PDR Gas Free Market 1,379 1,178 Waste Waste collected (Kton) 1,825 1,787 Residents served (#/1000) 3,943 3,878 Waste disposed of (Kton) 4,732 4,565 Electricity sold from waste-to-energy and other plants (GWh) 2,106 2,071 Smart Infrastructures Electricity distributed (GWh) 11,030 10,882 Gas distributed (Mcm) 2,613 2,503 Water distributed (Mcm) 66 68 RAB Electricity (M€) 1,089 953 RAB Gas (M€) 1,726 1,599 Heat sales (GWht) 2,934 2,667 Electricity sold from cogeneration (GWh) 635 595 Sustainability KPIs u.m. 2024 2023 Percentage of municipal waste collected separately in all served municipalities (%) % 71% 70% Emission factor Scope 1 + Scope 2 gCO 2 eq/ kWh 258 310 Scope 1 emissions value ktCO 2 eq 4,620 5,600 Green energy sold TWh 8.9 7 Number of employees n 14,777 13,958 Number of direct hires n 1,636 1,519 Accident Frequency Index (If) \- 15.97 16.87 Hours of training per person h 32 25 Percentage of 'sustainable debt' over total % 78% 70% 18 A2A Report on Operations 2024 Key figures of the A2A Group 1.5 Shareholding* 25.0 Municipality of Brescia 25.0 Municipality of Milano 4.4 Other municipalities 45.6 Market % Key figures of A2A S.p.A. 12.31.2024 12.31.2023 Share Capital (euro) 1,629,110,744 1,629,110,744 Number of ordinary shares (par value 0.52 euro) 3,132,905,277 3,132,905,277 Number of treasury shares (par value 0.52 euro) - - (*) Sources: Shareholders’ Register updated at dividend payment date (22 May 2024) and communications received in accordance with Art 120 of Legislative Decree February 24, 1998, no. 58 (“TUF”). Key figures of the A2A Group Report on Operations 2024 A2A 19 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY 1.6 A2A S.p.A. on the Italian Stock Exchange A2A in figures (Borsa Italiana) Market capitalisation at December 30, 2024 (millions of euro) 6,720 Share capital at December 30, 2024 (shares) 3,132,905,277 Price at December 30, 2024 (€/share) 2.15 2024 Average market cap (millions of euro) 6,018 Average daily volumes (shares) 10,749,416 Average price (€/share) 1.92 Maximum price (€/share) 2.24 Minimum price (€/share) 1.62 Source: Bloomberg. A2A stock is also traded on the following platforms: Aquis, CBOE, Equiduct, ITG Posit, LSE OTC, Sigma-X, Turquoise. On May 22, 2024 A2A distributed a dividend equal to 0.0958 euro per share. A2A forms part of the following indices FTSE MIB STOXX Europe 600 STOXX Europe 600 Utilities EURO STOXX EURO STOXX Utilities MSCI Europe Small Cap WisdomTree International Equity S&P Global Mid Small Cap S&P Global Dividend Aristocrats ESG Indices MIB ESG FTSE4Good ECPI Indices Ethibel Sustainability Index Excellence Europe EURO STOXX Sustainability Euronext Vigeo Index: Eurozone 120 Standard Ethics Italian Index Solactive Climate and Energy Transition Index Source: Bloomberg and company information. In 2024 A2A obtained the following ESG ratings: Assessment Rating CDP Climate Change A- CDP Water B FTSE ESG Rating 3.8/5 ISS ESG B- MSCI A Refinitiv B+ Standard Ethics EE+ S&P CSA 70/100 Sustainalytics 20.0/40 Vigeo 62/100 Moreover, A2A has been included in the Ethibel Excellence Investment Register and in the Ethibel Pioneer Investment Register. 20 A2A Report on Operations 2024 Key figures of the A2A Group A2A: price and volumes A2A vs FTSE MIB and EURO STOXX UTILITIES (Price 29 th December 2023 = 100) 0 10 20 30 40 50 60 70 80 90 100 1.40 1.60 1.80 2.00 2.20 2.40 Volumes (M shares) A2A (€/share) Price Volumes (right-hand axis) Jan. 2024 Feb. 2024 Mar. 2024 Apr. 2024 May. 2024 Jun. 2024 Jul. 2024 Aug. 2024 Sep. 2024 Oct. 2024 Nov. 2024 Dec. 2024 80 90 100 110 120 130 A2A FTSE MIB Euro Stoxx Utilities Jan. 2024 Feb. 2024 Mar. 2024 Apr. 2024 May. 2024 Jun. 2024 Jul. 2024 Aug. 2024 Sep. 2024 Oct. 2024 Nov. 2024 Dec. 2024 Historical 30-day volatility in 2024: A2A: 21.5% FTSE MIB: 13.7% Rating Current Standard & Poor’s M/L Term Rating BBB Short Term Rating A-2 Outlook Stable Moody’s M/L Term Rating Baa2 Outlook Stable Source: Rating Agencies. Key figures of the A2A Group Report on Operations 2024 A2A 21 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY In 2024, the positive performances of international stock markets were supported by the monetary policy decisions of major central banks: throughout the year, the Federal Reserve cut rates by 100 bps due to the easing of inflationary pressure. Considering Europe’s frail economic growth and the decline in inflation nearing the 2% target level, the European Central Bank has cut rates by 135 bps. Globally, the impressive rise of US indices is highlighted: Nasdaq (+28.2%) and S&P (+23.3%) reached new highs thanks to the performance of technology stocks linked to AI and the anticipation of economic stimulus measures after the presidential elections in November. The Japanese Nikkei index’s annual growth (+19.2%) is also significant, largely recorded in the first half of the year thanks to technology stocks, while in the second half, the Bank of Japan’s restrictive monetary policy had an impact. Lastly, the Chinese index (CSI 300 +14.7%) demonstrated a robust yearly surge attributable to the endorsement of governmental initiatives designed to foster economic development. In 2024, European stock exchanges recorded a positive performance (DAX Frankfurt +18.8%, IBEX Madrid +14.8%, FTSE 100 London +5.7%), despite the uncertainties linked to geopolitics and the continent’s modest economic growth. The German index primarily benefited from the performance of certain stocks within the industrial sector. Conversely, the French stock market saw a modest dip (CAC 40 Paris -2.2%), impacted by internal political uncertainty. The year closed for the FTSE MIB index with an impressive 12.6% rise, primarily driven by the banking sector’s 52.7% surge and the insurance sector’s 47.7% gain, both capitalizing on still elevated interest rates, while the steepest drops were seen in the industrial and consumer goods sectors. The Italian utilities sector saw a modest annual growth of 2.5%, with the first half driven by fluctuating energy commodity prices and the second half shaped more by dynamics in European and US government bond yields. Conversely, the utilities sector in the Euro area experienced a decline of 3.1% due to the negative performance of some major companies involved in the renewable energy generation business. The A2A stock recorded an annual growth rate of +15.4%, surpassing both benchmark indices and other companies in the sector, with a closing price of 2.15 euro per share, after reaching a peak of 2.24 euro per share in October. At the end of the year, the market capitalization exceeded 6.7 billion euro. In addition to the aforementioned macroeconomic factors, the performance was determined by organic growth and high rainfall, leading to four upward revisions of the annual results guidance. Furthermore, the visibility of the short and medium-term industrial goals, following the presentation of strategic plans in March and November, contributed to the performance. 22 A2A Report on Operations 2024 Key figures of the A2A Group 1.7 Alternative Performance Measures (APM) Dividend 0.0904 2022 0.0958 2023 0.10 2024 Earnings per share 0.1281 2022 0.2101 2023 2024 0.2759 Dividend Yield 6.60% 2022 5.88% 2023 5.21% 2024 Key figures of the A2A Group Report on Operations 2024 A2A 23 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Gross Operating Income 1,498 2022 1,971 2023 2024 2,328 Net Investments 1,142 2022 1,359 2023 2024 2,813 Net Financial Position/EBITDA 2.8 2022 2.4 2023 2024 2.5 ROE ( * ) 9.7% 2022 15% 2023 2024 15% 7.8% ROI 2022 10.7% 2023 2024 11.1% Net Financial Position -5,835 2022 -4,683 2023 2024 -4,258 (*) Ratio between ordinary net income and group equity. 24 A2A Report on Operations 2024 Key figures of the A2A Group Alternative Performance Measures (APM) In this Report on Operations, a number of Alternative Performance Measures (APM) have been used that are different from the financial indicators expressly provided for by the international accounting standards IFRS-EU adopted by the Group. These alternative measures are used by the A2A Group in order to more effectively submit information on the profitability of the business in which it operates as well as on the financial situation, useful to improve the overall capacity to assess financial and equity performance. These indicators are shown in the “Summary of results and financial position of the A2A Group”. For the Income Statement and the Balance Sheet, the comparative values refer to December 31, 2023. With reference to alternative indicators, on December 3, 2015, Consob issued Communication no. 92543/15, which transposes the Guidelines on the use and presentation of Alternative Performance Measures as part of regulated financial information, issued on October 3, 2015 by the European Securities and Markets Authority (ESMA). These Guidelines - which have updated the CESR Recommendation on Alternative Performance Measures (CESR/05 \- 178b) - are intended to promote the usefulness and transparency of alternative indicators to improve their comparability, reliability and understanding. On March 4, 2021, ESMA also published a new version of its Guidelines on Disclosure Obligations under the Prospectus Regulation (ESMA/32-382-1138), applicable from May 5, 2021, updating the previous CESR Recommendations (ESMA/2013/319), with the aim of providing issuers with guidance on assessing relevant information to be included in the financial disclosure. In accordance with the Guidelines, the descriptions, content and bases of calculation used for the construction of the Alternative Performance Measures adopted by the Group are described below. Gross operating margin Gross operating margin is an alternative indicator of operating performance, calculated as the sum of “Net operating income” plus “Depreciation, amortization, provisions and write-downs”. This APM is used by the A2A Group as financial target in presentations both within the Group (Business Plans) and external (presentations to financial analysts and investors) and represents a useful measure to assess the operating performance of the Group (both as a whole and in terms of individual Business Unit), also through a comparison between the operating results of the reporting period with those relating to previous periods or years. This indicator also allows conducting analyses on operational trends and measure performance in terms of operational efficiency over time. Net operating result The net operating result is the difference between the gross operating margin described above and depreciation, amortization, provisions, and write-downs. Result from non-recurring transactions The Result from non-recurring transactions is an alternative performance measure designed to highlight the capital gains/losses arising from the valuation at fair value of non-current assets sold and the results from the sale of equity investments in unconsolidated subsidiaries and associated companies and other non-operating income/expenses. This measure is positioned between net operating income and the financial balance. In this way net operating income is not affected by non-recurring operations, making it easier to measure the effective performance of the Group’s ordinary operating activities. Key figures of the A2A Group Report on Operations 2024 A2A 25 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Net fixed capital Net fixed capital is determined as the algebraic sum of: • tangible assets; • intangible assets; • capex accounted for using the equity method and other non-current financial assets; • other non-current assets and liabilities; • deferred tax assets and deferred tax liabilities; • provisions for risks, charges and liabilities for landfills; • employee benefits. This APM is used by the A2A Group as financial target in presentations both within the Group (Business Plans) and external (presentations to financial analysts and investors) and represents a useful measure of the net fixed assets of the Group as a whole, also through the comparison between the reporting period with those relating to previous periods or years. This indicator also allows conducting analyses on operational trends and measure performance in terms of operational efficiency over time. Net Working Capital and Other Current Assets/Liabilities Net working capital is determined as the algebraic sum of: • inventories; • trade receivables; • trade payables. The Other current assets/liabilities include: • other current assets; • other current liabilities; • current tax assets/tax liabilities. This APM is used by the A2A Group as financial target in presentations both within the Group (Business Plans) and external (presentations to financial analysts and investors) and represents a useful measure of the ability to generate cash flow from operations within a period of twelve months, also through the comparison between the reporting period with those relating to previous periods or years. This indicator also allows conducting analyses on operational trends and measure performance in terms of operational efficiency over time. Invested capital/Net invested capital Invested capital/Net invested capital is calculated as the sum of Net fixed capital, Net working capital and Assets/Liabilities held for sale. This APM is used by the A2A Group as the financial target in presentations both within the Group (Business Plans) and external (presentations to financial analysts and investors); it represents a useful measure for the evaluation of total net assets, both current and fixed. Sources of funds Sources of funds are calculated by adding “Shareholders’ Equity” and “Total Net Financial Position”. This APM is used by the A2A Group as financial target in presentations both within the Group (Business Plans) and external (presentations to financial analysts and investors) and represents the various sources by means of which the A2A Group is financed and the degree of autonomy that the A2A Group has in comparison with third party capital. This indicator also allows measuring the financial strength of the A2A Group. 26 A2A Report on Operations 2024 Key figures of the A2A Group Net financial position/Net debt Net financial position/Net financial debt is an indicator of the financial structure, calculated as the sum of net financial position beyond one year and net financial position within one year. Specifically, total net financial position beyond one year is obtained from the algebraic sum of: • Total medium and long-term debt: the item includes the non-current portion of bonds, bank loans, financial leasing and other non- current liabilities; Pursuant to the new ESMA recommendations, this item should also include the non-current portion of trade payables and other non-interest-bearing payables with a significant implicit financing component (payables with maturities of over 12 months); • Total medium and long-term financial receivables: this item includes Non-current financial assets (including those with related parties) and Other non-current assets. The net financial position within one year is derived from the algebraic sum of: • Total short-term debt: this item includes the portion due within twelve months of bonds, bank loans, financial leasing, current financial liabilities to related parties and other current liabilities; • Total short-term financial receivables: this item includes Other current financial assets (including to related parties) and Other current assets; • Cash and cash equivalents and Cash and cash equivalents included in assets held for sale. This APM is used by the A2A Group as financial target in presentations both within the Group (Business Plans) and external (presentations to financial analysts and investors) and is useful for the purposes of measuring the Group’s financial debt, also through the comparison between the reporting period with those relating to previous periods or years. The net financial position of the A2A Group is calculated in accordance with ESMA/32-382- 1138 Recommendations of March 4, 2021. Free cash flow This alternative performance measure represents the algebraic sum of net cash flows from operating activities and net cash flows from investing activities. Capex in tangible and intangible assets Investments in tangible and intangible assets are extrapolated from the information contained in the Notes of the Balance Sheet. This APM is used by the A2A Group as financial target in presentations both within the Group (Business Plans) and external (presentations to financial analysts and investors) and is a useful measure of the resources used in the maintenance and development of the investments of the A2A Group (as a whole and in terms of individual Business Unit), also through the comparison between the reporting period with those relating to previous periods or years. This allows the A2A Group to conduct analyses on investment trends and measure performance in terms of operational efficiency over time. Investors should not place undue reliance on these APM and should not consider all APM as: (i) an alternative to operating or net profit as calculated in accordance with IFRS; (ii) an assessment of the Group’s ability to meet cash needs alternative to as deduced from the cash flow from operating, investing or financing activities (as determined in accordance with IFRS); or (iii) an alternative to any other performance measure provided by IFRS. Key figures of the A2A Group Report on Operations 2024 A2A 27 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY These Alternative Performance Measures derive from the historical financial information of the A2A Group and are not intended to provide indications relating to future financial performance, financial position or cash flow of the Group. Moreover, these APM were calculated uniformly for all periods. Special Items The Special Items are non-recurring events from the financial year that impacted the consolidated income statement. Ordinary Net Result (Ordinary Net Profit) The Ordinary Net Result is calculated by excluding the impact of Special Items from each component of the Income Statement. ROI ROI, or the return on net invested capital, is the ratio between net operating margin and net invested capital. It aims to measure the ability to generate wealth through operations and thus to remunerate equity and debt capital. ROE ROE, or return on equity, is the ratio between ordinary net income end Group equity. It is intended to measure the profitability obtained by risk investors. 2 Consolidated results and report on operations Report on Operations 2024 30 A2A Report on Operations 2024 Consolidated results and report on operations 2.1 Overview of performance, financial conditions and net debt Results It is noted that the consolidation scope as at December 31, 2024 changed compared to December 31, 2023 for to the following operations: • acquisition by A2A S.p.A. of 90% of the Duereti S.r.l., a company operating in electricity distribution, with consequent line-by-line consolidation; • acquisition by Acinque S.p.A. of 70% of Agesp Energia S.r.l., a company operating in the sale of electricity and gas, with consequent line-by-line consolidation; • acquisition by A2A Rinnovabili S.p.A. of 70% of the company Parco Friulano 2 S.r.l. with consequent line-by-line consolidation; • acquisition by Agripower S.p.A. of 100% of Biomax Società Agricola a r.l., a company operating in the production of electricity from biogas, with consequent line-by-line consolidation; • acquisition by A2A Ambiente S.p.A. of the remaining 30% of the company A.S.R.A.B. S.p.A. operating in waste disposal; • incorporation of the company A2A Storage S.r.l. by A2A Rinnovabili S.p.A., which owns 100% of it, consolidated on a line-by-line basis; • incorporation of the company A2A Trezzo Ambiente S.r.l. held 86% by A2A Ambiente S.p.A. and 4% by A2A Calore & Servizi S.r.l. with consequent a line-by-line consolidation of the company; • incorporation of TEXELERA S.c. a r.l., held 51% by A2A S.p.A., with consequent line-by-line consolidation of the company; • sale of the company Tula Bioenergia Società Agricola a r.l. previously consolidated on a line-by-line basis; • de-registration of Proaris S.r.l. in liquidation, previously consolidated on a line-by-line basis following the completion of the liquidation process; • sale of the shareholdings held in the companies Tecnoacque Cusio S.p.A. and Consul System S.p.A., previously consolidated according to the equity method. Moreover, the economic figures as of December 31, 2024, are not consistent with the previous year due to the following extraordinary transactions that occurred during 2023: • acquisition in June 2023, by A2A Calore & Servizi S.r.l. of 100% of Termica Cologno S.r.l.; • acquisition in the second half of 2023, by A2A Rinnovabili S.p.A. of 100% of Juwi Development 12 S.r.l. and Juwi Development 13 S.r.l., with consequent line-by-line consolidation; • incorporation of the companies R2R 01 S.r.l., R2R 02 S.r.l., R2R 03 S.r.l. and R2R 04 S.r.l., by R2R S.r.l., which owns 100% of it, consolidated on a line-by-line basis; • incorporation on July 21, 2023 of the company Mogorella S.r.l. by A2A Rinnovabili S.p.A., which owns 100% of it, consolidated on a line-by-line basis. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Consolidated results and report on operations Report on Operations 2024 A2A 31 The results of the A2A Group at December 31, 2024 are set out below together with comparative figures for the previous year. Millions of euro 01.01.2024 12.31.2024 01.01.2023 12.31.2023 Change % 2024/2023 Revenues 12,857 14,758 (1,901) (12.9%) of which: \- Revenues from the sale of goods and services 12,570 14,492 (1,922) (13.3%) \- Other operating income 287 266 21 7.9 % Operating expenses (9,637) (11,972) 2,335 (19.5%) Labour costs (892) (815) (77) 9.4% Gross Operating Income - EBITDA 2,328 1,971 357 18.1% Depreciation, amortization and write-downs (898) (803) (95) 11.8% Accruals (113) (151) 38 (25.2%) Net Operating Income - EBIT 1,317 1,017 300 29.5% Result from non-recurring transactions 5 2 3 n.s. Net financial expenses (113) (139) 26 (18.7%) Affiliates 2 - 2 n.s. Result from disposal of other shareholdings - (1) 1 (100.0%) Result before taxes 1,211 879 332 37. 8 % Income taxes (319) (199) (120) 60.3% Result after taxes from operating activities 892 680 212 31.2% Net result from discontinued operations - 3 (3) (100.0%) Minorities (28) (24) (4) 16.7% Group result of the year 864 659 205 31.1% In the period under review, Group Revenues amounted to 12,857 million euro, down 12.9% compared to the previous year (14,758 million euro). The change is attributable to the drop in both wholesale and retail energy prices and, to a very limited extent, to the contraction of the quantities sold and brokered on the wholesale markets, partly offset by higher volumes sold on the electricity and gas retail markets. Operating expenses amounted to 9,637 million euro, a reduction compared to the previous year (-19.5%) in line with the trend in revenues and the relative dynamics related to the commodities market. Labour costs, amounting to 892 million euro, increased by approximately 77 million euro (+9.4%). 40% of the change was due to the higher number of FTEs (Full-Time Equivalent) in 2024 compared to the previous year (+541 FTEs, +3.9%) as a result of recruitment, the start-up and upgrading of plants and facilities in line with the Group’s development objectives, as well as the award of new tenders in the urban hygiene sector and the acquisition of a new company (Agesp Energia). The remainder of the increase is attributable to the effects of salary increases for contract renewals (CCNL Urban Hygiene, Electricity, Gas Water), merit increases and other indirect labor costs (mainly costs for mobility and welfare projects). 32 A2A Report on Operations 2024 Consolidated results and report on operations The EBITDA amounted to 2,328 million euro, an increase of 18.1%, or 357 million euro compared to 2023 (1,971 million euro). Net of non-recurring items (11 million euro in 2024, 41 million euro in 2023), the Ordinary Gross Operating Income is equal to 2,317 million euro, up by +20%, or 387 million euro, compared to the previous year (1,930 million euro) thanks to the contribution of all the Business Units, in particular the Generation & Trading Business Unit and the Market Business Unit. The following table shows the composition of the Gross Operating Margin by Business Unit: Millions of euro 12.31.2024 12.31.2023 Change Change % Generation & Trading 986 829 157 18.9% Market 462 299 163 54.5% Waste 409 375 34 9.1% Smart Infrastructures 552 534 18 3.4% Corporate (81) (66) (15) n.s. Total 2,328 1,971 357 18.1% The Gross Operating Margin of the Generation and Trading Business Unit amounted to 986 million euro, up by 157 million euro compared to 2023 (+18.9%). Before non-recurring items recorded in the two comparison periods (equal to 13 million euro in 2024 and 37 million euro in 2023), Ordinary EBITDA increased by 181 million euro. The positive change is mainly attributable to the contribution of RES plants for: • higher volumes produced as a result of the high hydraulic capacity of 2024 compared to the low rainfall recorded in the previous year: the increase in margins linked to the higher hydroelectric quantities was particularly significant in the first half of the year, then attenuating in the second half of the year. In fact, 2023 was penalized by drought problems in the first part of the year, benefiting only in the last quarter of greater rainfall; • a positive price effect due to the presence in the first half of 2023 of the impacts of the Sostegni Ter decree (two-way compensation mechanism on the price of electricity supplied for RES plants); the coverage policies of the year mitigated the negative effects deriving from the reduction of energy commodities, albeit in a trend of growth in the last part of the year. The positive impacts were partially offset by a contraction in margins recorded in other areas of the business unit’s activities, particularly the lower contribution of combined-cycle thermoelectric production, albeit increasing in the last quarter of the year, and ancillary services markets (MSD), due to both lower demand from Terna and a lower valuation of the quantities offered. The Market Business Unit EBITDA amounted to 462 million euro, an increase of 163 million euro compared to the previous year (299 million euro at December 31, 2023), confirming the positive growth trend that began last year with particular evidence in the fourth quarter. Net of non-recurring components (1 million euro in 2024 and -18 million euro in 2023), Ordinary Gross Operating Margin increased by 144 million euro. The increase in the margin is attributable to: • the evolution in the customer base of the mass market segment; • the growth in volumes sold to the key accounts segment, both electricity and gas; • the positive dynamics of the unit marginality. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Consolidated results and report on operations Report on Operations 2024 A2A 33 The positive results reflect the effects of the commercial development actions of the period, as well as the reabsorption of the negative impacts on margins related to the exceptionally unstable situation in the commodities markets, still present above all in the first three months of 2023 and progressively weakening during the year. These effects more than offset the lower margin in the protection market due to the contraction in volumes sold, the higher charges related to retention actions activated by the Group on its customer base already in 2023, and the increase in operating costs for customer acquisition and management activities. The Gross Operating Margin of the Waste Business Unit came to 409 million euro (375 million euro at December 31, 2023), an increase of 34 million euro compared to the previous year. Net of non-recurring components recorded (13 million euro in 2024, 3 million euro in 2023), Ordinary Gross Operating Margin stands at 396 million euro (372 million euro at December 31, 2023). This result was determined by: • +27 million euro relative to Waste Treatment Plants, mainly due to higher margins linked to the growth in volumes disposed of and relative prices, as well as to the contribution of the quantities of electricity and heat produced by waste-to-energy plants (particularly WTE Parona), to the greater productions from the biomass plant of Sant’Agata di Puglia, partly offset by the higher operating costs; • -3 million euro relating to the Collection segment: the result is attributable on the one hand to the higher fees mainly for the new municipalities acquired and on the other to the increase in personnel costs - both for contractual and salary increases and following the award of the new tenders - and other operating costs. The Gross Operating Margin of the Smart Infrastructures Business Unit in 2024 was 552 million euro (534 million euro at December 31, 2023). Net of non-recurring items (-3 million euro in 2024; +19 million euro in the previous year), the Business Unit’s Ordinary EBITDA came to 555 million euro, up 40 million euro compared to 2023. The change in margins was mainly driven by: • +38 million euro related to the electricity and gas distribution networks for the increase in revenues allowed for regulatory purposes following the updating of the rate of return on invested capital by ARERA (Energy, Networks and Environment Regulatory Authority) for the year 2024, partly offset by higher operating costs and lower connection fees; • +11 million euro related to the water cycle, attributable to an increase in regulated revenues and a decrease in electricity costs; • -15 million euro related to the heat sector. The change is related to the decrease in the prices of electricity sold, the presence in 2023 of the subsidies under the Aid Decrees regarding tax credits for non-energy and non-gas-intensive companies, and the lower margins related to the Superbonus business. These negative effects were only partially offset by higher district heating volumes sold and revenues from the sale of white certificates recognized for the cogeneration plants of Tecnocity, Canavese and A2A Airport; • +3 million euro related to Public Lighting due to the margin contribution of the new municipalities and lower operating costs; • +2 million euro related to Smart City due to higher revenues (Minnovo project start-up and projects for the Municipality of Monza) and lower operating costs; • +1 million euro related to E-Moving for higher electricity volumes delivered. 34 A2A Report on Operations 2024 Consolidated results and report on operations “Depreciation, amortization, provisions and write-downs” totaled 1,011 million euro (954 million euro at December 31, 2023), representing an increase of 57 million euro. “Depreciation, amortization and write-downs” amounted to 898 million euro (803 million euro as at December 31, 2023). Amortization of intangible assets amounted to 304 million euro (278 million euro at December 31, 2023). The item reports increased amortization of 26 million euro related to the integrated water service, gas distribution and metering, the implementation of information systems, and new customer lists. Amortization of property, plant and equipment amounted to 580 million euro and showed an increase of 57 million euro compared to December 31, 2023, mainly related to: • higher depreciation of 39 million euro, relating to the investments which went into production after December 31, 2023; • higher depreciation of 13 million euro for the revision of the useful lives of plants; • higher amortizations of 5 million euro for rights of use; Write-downs for the year amounted to 14 million euro (2 million euro as at December 31, 2023) and mainly related to the cancellation of projects no longer in the company’s core business and the write- down of assets no longer considered functional to the Group’s activities. “Provisions for risks” had a net effect of 31 million euro (net effect of 68 million euro at December 31, 2023) due to the provisions for the year of 53 million euro relating to the provision for derivation fees for public water for 29 million euro, to provisions for closure and post-closure costs of landfills and decommissioning for 17 million euro, and to other provisions for 7 million euro, adjusted by surpluses mainly following the release of tax provisions, closure and post-closure expense provisions on landfills, and other provisions for 22 million euro. The “Bad debt provision” amounted to 82 million euro (83 million euro at December 31, 2023). As a result of these changes “Net operating income” amounted to 1,317 million euro (1,017 million euro at December 31, 2023). The “Result from non-recurring transactions” is equal to 5 million euro (2 million euro at December 31, 2023) and refers mainly to the income related to the compensation recognized by the Municipality of Cinisello Balsamo in favor of Unareti S.p.A. in execution of the award at the conclusion of the dispute that had arisen since 2006 over the valuation of the gas distribution network returned to the Municipality. “Net financial expenses” amounted to 113 million euro (139 million euro at December 31, 2023), representing a net decrease of 26 million euro. This change is mainly attributable to an increase in financial income of 22 million euro, mainly attributable to the interest inherent in the 10% increase on credits for energy efficiency relating to 110% ecobonus credits and to a decrease in interest on bond loans attributable to the maturity of two 300 million euro bonds due in December 2023 and March 2024 partially offset by higher charges to be charged mainly to the disbursement of a term loan in January 2024. The “Affiliates” was 2 million euro (less than one million euro at December 31, 2023), and is mainly attributable to the positive valuation of the shareholdings held in some associated companies. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Consolidated results and report on operations Report on Operations 2024 A2A 35 The “Result from disposal of other shareholdings” amounted to 0, whereas at December 31, 2023 it had a negative value of 1 million euro and derived from the effect of the disposal of the shareholding in Suncity Group. “Income taxes” for the year amounted to 319 million euro (199 million euro at December 31, 2023). It is important to highlight that in the 2024 financial year, the right was exercised to select the ordinary exemption regime according to Article 176 of the TUIR and the derogatory exemption regime under Article 15, paragraphs 10 et seq., of Legislative Decree No. 185/2008, which enable fiscal recognition of increased accounting values identified in the Purchase Price Allocation (PPA) process and attributed to Asset components (goodwill and customer list). The tax exemption entailed, in exchange for the payment of a substitute tax amounting to 49 million euro, the reduction of deferred tax liabilities amounting to 28 million euro, associated with the higher values relieved, allocated to customer lists, and the recognition of deferred tax assets amounting to 58 million euro, related to the non-accounting deductions of the higher values relieved, allocated to goodwill. These deferred tax assets will be released pro rata in connection with off-balance-sheet deductions starting in 2025. The “Net result from discontinued operations” did not include any values as at December 31, 2024, while as at December 31, 2023 it amounted to 3 million euro and referred mainly to the sale of the Integrated Water Service to Acque Bresciane. The “Group result of the year”, after the minorities of 28 million euro were deducted, was positive and amounted to 864 million euro (positive for 659 million euro at December 31, 2023). Below is the income statement table with evidence of the special items that influenced both the result for the financial year 2024 and the result for the previous year, thus enabling a clearer representation of the performance of the core business. Millions of euro 01.01.2024 12.31.2024 01.01.2023 12.31.2023 Change % 2024/2023 Revenues 12,857 14,758 (1,901) (12.9%) Operating expenses (9,637) (11,972) 2,335 (19.5%) Labour costs (892) (815) (77) 9.4% Gross Operating Icome - EBITDA 2,328 1,971 357 18.1% Depreciation, amortization and write-downs (898) (803) (95) 11.8% Provision for risks (31) (68) 37 (54.4%) Provision for credit risks (82) (83) 1 (1.2%) Net Operating Icome - EBIT 1,317 1,017 300 29.5% Result from non-recurring transactions (1) - (1) n.s. Net financial expenses (122) (139) 17 (12.2%) Affiliates 2 - 2 n.s. Result from disposal of other shareholdings - (1) 1 (100.0%) Result before taxes 1,196 877 319 36.4% Income tax expenses (352) (221) (131) 59.3% Net result from discontinued operations - 3 (3) (100.0%) Minorities (28) (24) (4) 16.7% Ordinary Group Net Profit 816 635 181 28.5% Special Items 48 24 24 100.0% Group net profit of the year 864 659 205 31.1% 36 A2A Report on Operations 2024 Consolidated results and report on operations The special items for the year 2024 equal to 48 million euro refer to the tax effect of the freeing up of goodwill and the customer list of the company A2A Ambiente which, net of the allocation of assets for prepaid taxes for 58 million euro, the release of deferred liabilities for 28 million euro and the payment of the substitute tax of 49 million euro, is equal to 37 million euro and the compensation for the conclusion of the dispute with the Municipality of Cinisello which net of the tax effect of 4 million euro is equal to 11 million euro. In the previous year, special items amounted to 24 million euro and mainly related to the tax effect of redemption, which, net of the substitute tax payment of 33 million euro, amounted to 22 million euro. Balance sheet and financial position For changes in the scope of consolidation at December 31, 2024, reference should be made to the section “Income statement” in this Overview of performance, financial conditions and net debt of the A2A Group. Sources/uses statement Millions of euro 12.31.2024 12.31.2023 Change Capital employed Net fixed capital 11,330 9,567 1,763 \- Tangible assets 7,517 6,643 874 \- Intangible assets 4,299 3,630 669 \- Shareholdings and other non-current financial assets (*) 100 83 17 \- Other non-current assets/liabilities (*) (67) (188) 121 \- Deferred tax assets/liabilities 549 464 85 \- Provisions for risks, charges and liabilities for landfills (854) (828) (26) \- Employee benefits (214) (237) 23 of which with counter-entry to equity (79) (98) Net Working Capital and Other Current Assets/Liabilities 114 (82) 196 Net Working Capital: 277 (246) 523 \- Inventories 316 319 (3) \- Trade receivables 3,643 3,540 103 \- Trade payables (3,682) (4,105) 423 Other current assets/liabilities: (163) 164 (327) \- Other current assets/liabilities (*) (88) 193 (281) \- Current tax assets/tax liabilities (75) (29) (46) of which with counter-entry to equity (16) (7) Assets/liabilities held for sale (*) 394 \- 394 of which with counter-entry to equity - - Total capital employed 11,838 9,485 2,353 Sources of funds Equity 6,003 4,802 1,201 Total financial position after one year 6,454 5,571 883 Total financial position within one year (619) (888) 269 Total Net Financial Position 5,835 4,683 1,152 of which with counter-entry to equity 4 \- Total sources 11,838 9,485 2,353 (*) Excluding balances included in the Net Financial Position. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Consolidated results and report on operations Report on Operations 2024 A2A 37 Net fixed capital The “Net fixed capital” amounted to 11,330 million euro, up by 1,763 million euro compared to December 31, 2023. The main changes were related to: • total investments of 1,512 million euro, of which 1,051 million euro in tangible assets and 461 million euro in intangible assets; • contribution from the first 2024 consolidations on tangible fixed assets in the amount of 414 million euro and on intangible fixed assets in the amount of 948 million euro; • net decrease of 447 million euro for other changes mainly due to reclassification to assets held for sale, disposals and write-downs for the year; • ordinary amortization/depreciation for the year for 884 million euro; • 17 million euro increase in Equity Investments and other non-current financial assets due to mainly to investments made in innovative start-ups through Corporate Venture Capital projects and advances paid on equity investments for future projects for the development of power generation plants from renewable sources; • net increase in Other non-current assets and liabilities of 121 million euro, mainly due to the decrease in security deposits from customers; • an increase in Deferred Tax Assets of 85 million euro, of which 15 million euro related to initial consolidations. This increase is mainly attributable to the redemption carried out by the subsidiary A2A Ambiente to recognize and realign for tax purposes the higher values that emerged in the Purchase Price Allocation (PPA) process, deriving from the allocation of the cancellation deficit and recognised in the financial statements as goodwill and customer lists (among intangible assets). The redemption resulted in the recognition of the substitute tax of 49 million euro, the recognition of deferred tax assets related to off-balance sheet deductions of the higher redeemed values of goodwill in the amount of 58 million euro, and the release of deferred tax liabilities in the amount of 28 million euro, on the higher values of customer lists that became deductible within the limit of the statutory amortization recognized in the Income Statement; • increase in provisions for risks, charges and liabilities for landfills by 26 million euro; • decrease in provisions for employee benefits for 23 million euro. The “Net working capital and Other current assets/liabilities” were positive at 114 million euro, an increase of 196 million euro compared to December 31, 2023. The main changes were related to: • decrease in trade payables of 423 million euro mainly attributable to the decrease in commodities trading transactions with bilateral counterparties; • an increase in trade receivables of 103 million euro mainly attributable to the trading portfolio for CO 2 transactions and an increase in receivables from Terna for the reinstatement of costs of essential units; • overall decrease of 3 million euro in inventories; • decrease in security deposits for 336 million euro; • net increase in the Fair Value asset of commodity derivatives by 126 million euro; • net increase in VAT and excise tax payables of 41 million euro; • decrease in payables to personnel for 25 million euro; • net increase in current tax liabilities of 46 million euro; • other decreases in current assets of 5 million euro. 38 A2A Report on Operations 2024 Consolidated results and report on operations “Assets/Liabilities held for sale” are positive and equal to 394 million euro (they had no value as of December 31, 2023) and refer to the reclassification, in accordance with IFRS 5, of the value of the assets and credit items referring to certain ATEMs related to gas distribution subject to acquisition by Ascopiave following the preliminary purchase agreement signed on December 19, 2024. Consolidated “Invested capital” as at December 31, 2024 amounted to 11,838 million euro and was financed by Equity for 6,003 million euro and the Net Financial Position for 5,835 million euro. Equity and Net Financial Position “Equity” amounted to 6,003 million euro and showed a positive change for a total of 1,201 million euro. The change in Group equity relates for 864 million euro to the positive result for the year, offset by the dividend distribution of 300 million euro. There were also other increases of 742 million euro as a result of the first non-convertible, subordinated hybrid bond issue with a nominal value of 750 million euro, net of transaction costs of 8 million euro, as well as decreases of 9 million euro related to the payment of the first coupon tranche of the hybrid bond. Finally, there were decreases of 92 million euro mainly related to changes in the scope of consolidation and decreases in minority interests of 4 million euro. The “Consolidated Net Financial Position” at December 31, 2024 amounted to 5,835 million euro (4,683 million euro as at December 31, 2023). The gross debt amounted to 7,432 million euro, up by 1,070 million euro compared to December 31, 2023. Cash and cash equivalents amounted to 1,549 million euro, down by 80 million euro. The other net financial assets showed a positive balance of 48 million euro with a net decrease of 2 million euro as compared with December 31, 2023. The fixed rate portion of the gross debt amounted to 79%. The duration is 5.2 years. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Consolidated results and report on operations Report on Operations 2024 A2A 39 Change Consolidated Net Financial Position The following table summarizes the changes in the Net Financial Position. Millions of euro 12.31.2024 12.31.2023 EBITDA 2,328 1,971 Change Net Working Capital (523) (62) Changes in Other assets/liabilities 22 (218) Utilization of provisions, net taxes and net financial charges (471) (458) Operating cash flow 1,356 1,233 Capital Expenditure (1,512) (1,376) Cash flow before payment of dividends and bond coupons (156) (143) Dividends (300) (283) Hybrid Bond paid coupons (9) - Net cash flow (465) (426) Change in scope (1,429) 1 Perpetual hybrid bonds 742 - Change in Net Financial Position (1,152) (425) During the year, the change in the Net Financial Position was negative and equal to 1,152 million euro. Net cash absorption amounted to 465 million euro, after investments of 1,512 million euro, the payment of dividends for 300 million euro, and the payment of coupons for 9 million euro related to the first non-convertible, subordinated hybrid bond issue in the Green - use of proceeds with a nominal value of 750 million euro, which, net of transaction costs, was recognized at a total value of 742 million euro. These flows were partly offset by the cash generated from operations, which amounted to 1,356 million euro. Changes in the scope of consolidation during the year were negative and amounted to 1,429 million euro, mainly due to the acquisition of 90% of the share capital of Duereti S.r.l. from E-distribuzione. 40 A2A Report on Operations 2024 Consolidated results and report on operations Acinque finalizes acquisition of 70% of Agesp Energia On January 3, 2024, the acquisition of 70% of Agesp Energia by Acinque, already historically active in the Varese area, was finalized with effective date January 1. The acquisition is consistent with the growth strategies of Acinque, which, based on territorial aggregations, with A2A as its industrial partner, has progressively consolidated its competitive capacity, expanding both the critical mass of its business and its reference perimeters. Agesp Energia operates in the sale of electricity and gas and has been the reference operator, for over 60 years, in the Busto Arsizio area for its 39,300 customers (of which 27,700 are gas customers and 11,600 electricity customers). The company also operates a district heating service and owns the dedicated network (about 18 km) as well as the cogeneration plant serving it. In 2022, approximately 32,100 MWh of thermal energy was sold and 21,400 MWh of electricity, net of self-consumption, was fed into the grid. Tacit renewal of the Pact between A2A and the Public Authorities concerning Acinque Pursuant to article 122 of the T.U.F. and articles 129 and 131 of the Issuers’ Regulation, Acinque announces that the shareholders’ agreement entered into on March 30, 2018 and renewed on June 30, 2021 between A2A, Lario Reti Holding, the Municipality of Monza, the Municipality of Como, the Municipality of Sondrio and the Municipality of Varese has been tacitly renewed for a further three-year period with effect from the expiry date of June 30, 2024. The total number of ordinary shares covered by the agreement and the percentages of contracting shareholders remain unchanged: A2A holds 41.34% of the share capital, Lario Reti Holding holds 23.93%, the Municipality of Monza holds 10.53%, the Municipality of Como holds 9.61%, the Municipality of Sondrio holds 3.30% and the Municipality of Varese holds 1.29%. A2A has finalized the acquisition of Enel’s electricity distribution assets in the provinces of Milan and Brescia On March 9, A2A S.p.A. and E-distribuzione, a company of the Enel Group active in electricity distribution, signed a sale agreement regarding the portion of the electricity network managed by E-distribuzione in certain areas of Lombardy, specifically in the provinces of Milan and Brescia. On December 30, A2A, in accordance with the sale and purchase agreement, successfully completed the closing procedures for acquiring from E-distribuzione 90% of the share capital of Duereti S.r.l. (‘Duereti’), a corporate vehicle benefiting from E-distribuzione’s transfer of electricity distribution activities in certain municipalities located in the provinces of Milan and Brescia. The transfer of the shareholding to A2A took effect from December 31, 2024. The agreed amount for the transaction, defined on the basis of an Enterprise Value (referred to 100% of Duereti) of about 1.35 billion euro, is approximately 1.2 billion euro and is subject to a typical post-transaction price adjustment mechanism. Thanks to investment and an expansion in the management boundary, the Group’s electric RAB will rise to 3.4 billion in 2035. The closing occurred following the fulfilment of the conditions outlined in the agreement signed on March 9, including obtaining Antitrust approval, successfully completing the Golden Power procedure with the Presidency of the Council of Ministers, and Duereti receiving an independent electricity distribution concession from the Ministry for the Environment and Energy Security. E-distribuzione retains a 10% shareholding in Duereti’s share capital, crucial for the company’s start-up phase, which is subject to a put and call option mechanism that can be exercised one year following the closing date. 2.2 Significant events during the year Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Consolidated results and report on operations Report on Operations 2024 A2A 41 A2A presents the new 2024-2035 Strategic Plan On March 12, 2024, the A2A Board of Directors examined and approved the new Strategic Plan 2024-2035; the Plan relaunches and extends the Group’s long-term industrial growth objectives. The ecological transition is confirmed as the cornerstone of the Group’s strategy: Circular Economy and Energy Transition are the two pillars, leading a 22 billion euro investment plan over twelve years, focusing on infrastructure, people and business, decarbonization and future-fit development. A2A “stable” rating and outlook confirmed by Moody’s and S&P Global On March 15, Moody’s confirmed the A2A long- term rating at Baa2 with a “stable” outlook. On March 18, 2024, S&P Global confirmed the A2A long-term rating at BBB with “stable” outlook. The decisions follow the signing of an agreement for the acquisition by A2A of 90% of a newly established company to which the electricity distribution assets of E-distribuzione in the Province of Milan (with the exception of a few municipalities in the northern belt) and, in the Brescia area, in Valtrompia, will be transferred. This transaction is in line with the strategy outlined in the A2A’s new 2024-2035 Plan, which focuses more on low-volatility businesses, particularly regulated electricity grids, and on a slower development of renewable activities compared to the previous plan, thus improving the risk profile. The rating confirmations also reflect A2A well- diversified and vertically integrated business mix, its commitment to careful financial discipline as well as its strong commitment to maintaining its current rating on its sustainable growth path. Ordinary Shareholders’ Meeting of A2A S.p.A. On April 24, 2024, the Ordinary Shareholders’ Meeting of A2A S.p.A. approved the financial statements and the proposal formulated by the Board of Directors to distribute a dividend per ordinary share of 0.0958 euro. The dividend was paid in May 2024. The Shareholders’ Meeting also voted in favor with a binding vote on the first section of the 2024 Report on Remuneration and with an advisory, non-binding vote on the second section of the 2024 Report on Remuneration. The Shareholders’ Meeting authorized and defined the terms within which the Board of Directors may purchase and dispose of treasury shares. A2A ESG strategy performance recognized For the third year running, the commitment of A2A to environmental and social responsibility has been recognized globally with its inclusion in the “S&P Global Sustainability Yearbook 2024”, the annual report compiled by the Standard & Poor’s rating agency that highlights the world’s leading companies for their sustainability practices. In the Multiutilities sector, the Group ranked sixth among the 59 peers analyzed. Electricity auctions A2A strengthens its presence in Italy A2A Energia, a subsidiary of A2A, confirmed itself as one of the main players in the liberalization process of the energy market by winning: • in February, as part of the auctions for the Gradual Protection Service for non-vulnerable domestic customers, the Area Sud 2 and Area Sud 10 lots, for a total of just under 300,000 supply points; 42 A2A Report on Operations 2024 Consolidated results and report on operations • in May, as part of the auctions for the Gradual Protection Service for the supply of electricity to small businesses, the provisional allocation of two lots: Lazio, Friuli-Venezia Giulia, Valle d’Aosta (lot 2) and Campania, Marche, Sardinia (lot 6) covering more than 22,000 supply points. Acquisition of Parco Friulano 2 On May 7, 2024, the A2A Group, through its subsidiary A2A Rinnovabili, acquired 70% of Parco Solare Friulano 2, a company owned by EnValue Italia and MSE Solar Energy Italia, which obtained permission to build and operate a photovoltaic plant in the municipalities of Santa Maria la Longa and Pavia di Udine (UD), with an authorized capacity of 112.1 MWp. With more than 150 MWp installed in total, this plant, together with the one authorized in 2022 in the same municipalities for a capacity of 59.1 MWp, will represent the main photovoltaic hub in the north of the country. In fact, more than 210 GWh will be produced annually, meeting the electricity needs of more than 75,000 households, reducing natural gas consumption by about 40 million cubic meters and avoiding the emission of about 90,000 ton of CO 2 . Solar photovoltaic system on the Fiera Milano pavilions On May 16, the largest and most powerful photovoltaic plant in Italy began its operation, installed on the rooftops of Fiera Milano’s pavilions. The infrastructure built by A2A together with Fondazione Fiera - through the Fair Renew joint venture - consists of around 50,000 photovoltaic panels, distributed over 330,000 square meters of hall roofing, equal to the surface area of 45 football fields. The facility, which represents an example of national excellence in the field of renewable energy, will have an expected annual production of 21.6 GWh - equal to the consumption of about 7,800 households - which will avoid the emission of more than 9,800 thousand tons of CO 2 per year, and a total installed capacity of 18 MWp. The photovoltaic system will cover a part of Fiera Milano needs for the exhibition center in Rho, while the remaining portion of the green energy generated will be fed into the grid. A2A issues first Hybrid Green Bond to support investments in energy transition and circular economy On June 4, A2A S.p.A. successfully placed its first hybrid subordinated perpetual bond issue in Green/Use of Proceeds format with nominal value of 750 million euro. The issue, carried out in execution of the resolution of May 14, 2024 of the Company’s Board of Directors and the Chair’s decision on June 4, 2024, attracted great interest, receiving orders for approximately 2.9 billion euro, approximately 4 times the amount offered. The bond, placed at an issue price of 99.460% and characterized by a non-call period of 5.25 years, will have a perpetual maturity and will pay a fixed annual coupon of 5.000% until the first reset date on September 11, 2029. This issue will go to finance and/or refinance the Eligible Green Projects: strategic projects of circular economy and energy transition related to the development of renewables, to the environmental sector, to electrical grids and to the water cycle defined within the Sustainable Finance Framework of A2A. Among the selected projects are newly acquired assets in the fields of electricity grids and renewable energy production. Green Loan financing pooled for 600 million to support electricity grid development On July 10, 2024, A2A successfully completed a 600 euro million syndicated loan transaction, in a Green/Use of Proceeds format, for the acquisition of electricity grid assets in certain areas of Lombardy, in the provinces of Milan and Brescia, announced in March 2024. This instrument allows the A2A Group to strengthen its liquidity position while ensuring flexibility in the execution of its Strategic Plan. The 2-year bridge loan was structured as a Green Loan in accordance with the A2A Sustainable Finance Framework, verified by Vigeo Eiris, and the Green Loan Principles (GLP) published by the Loan Market Association (LMA). Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Consolidated results and report on operations Report on Operations 2024 A2A 43 A2A, new Sustainable Finance Framework On July 22, 2024, A2A released its updated Sustainable Finance Framework, aligning the 2022 version with the objectives of the 2024 - 2035 Strategic Plan. Within the two strategic pillars of the Plan, energy transition and circular economy, the Framework envisages the expansion of green project types – such as the installation of electric heat pumps and infrastructure for hazardous waste treatment – and the modification of some existing ones to align with the European Union Taxonomy criteria. Among the innovations of the Sustainability- linked component, an indicator related to the installed capacity of the electricity grid has been introduced in line with the Group’s strategy focused on decarbonization and electrification of consumption. The update maintains the integrated approach between the two profiles, Green/ Use-of-Proceeds, for transparency on the use of proceeds for specific projects, and Sustainability-Linked, which relates to achieving sustainability targets. A2A commits to achieving 100% ESG debt by 2035 and pledges to provide comprehensive reports on the allocation of proceeds, adhering to ICMA and LMA guidelines. A2A and Enfinity Global sign new PPAs for 134 MW of solar energy in Italy On July 24, 2024, A2A Group and Enfinity Global Inc signed new ten-year Power Purchase Agreements (PPAs) for 134 MW of solar energy. Six Enfinity photovoltaic plants, situated in the Lazio and Emilia-Romagna regions, will generate electricity equivalent to the annual usage of approximately 86,000 households, thereby preventing over 104,000 tons of CO 2 emissions each year. These agreements support Italy’s 2030 energy transition plan and demonstrate the shared commitment of A2A and Enfinity Global to decarbonization and sustainable development. Capacity market auctions In the capacity market auction for 2025 held by Terna on July 29, 2024, A2A Group secured the entire portfolio of its existing capacity offered, totaling approximately 4.6 GW, with a mix of gas plants and renewables, at a price of 45,000 €/MW/year. Additionally, it secured a yearly contract for 500 MW of foreign capacity at 4,788 €/MW/year. The auction outcome exceeds the forecast in the 2024-2035 Strategic Plan by over 60 million euro. On December 19, 2024, A2A secured 4.4 GW of capacity in the capacity market auction for 2026, with a mix of gas and renewable plants, at a price of 46,000 €/MW/year. It also secured 520 MW of foreign capacity at 11,000 €/MW/year. This outcome is in line with the 2024-2035 Strategic Plan. A2A S.p.A. and Ascopiave S.p.A.: signed a contract for the sale of gas network assets On July 30, A2A received a non-binding offer from Ascopiave for the acquisition of a portfolio of assets consisting of roughly 490,000 pdr of gas distribution in Lombardy, all managed by companies 100% owned by A2A. Negotiations continued exclusively between the parties until December 19, on which date a preliminary purchase agreement (signing) was signed. This agreement involved Ascopiave acquiring 100% ownership of a corporate entity that will, at closing, own a business unit encompassing a complete set of assets. These assets include approximately 490,000 pdr of gas distribution related to ATEM across the provinces of Brescia, Cremona, Bergamo, Pavia, and Lodi, with a 2023 RAB of 397 million euro and a 2023 EBITDA of 44 million euro. Currently, the assets included in the business unit involved in the transaction are held by Unareti and LD Reti, both wholly owned by A2A, and will be transferred to the designated vehicle in the interim period between the signing and closing. 44 A2A Report on Operations 2024 Consolidated results and report on operations The transaction has been agreed at a base price of 430 million euro, indicating the business unit’s valuation as of December 31, 2023, subject to customary post-closing adjustments. The deal is contingent upon the occurrence of suspensive conditions typically prescribed for this kind of operation, including the conduct of the so-called Golden Power procedure. The completion of the closing is anticipated by July 2025. Italy’s first project to reclaim heat from data centers is taking place in Milan On August 6, 2024, A2A Group, DBA Group, and Retelit Milano signed a collaboration project to recover heat from Retelit’s ‘Avalon 3’ data centers, with the aim of powering the district heating network in Municipality 6 of Milan and contributing to the city’s decarbonization. The project will serve 1,250 more families annually, allowing an energy saving of 1,300 tons of oil equivalent (toe) and preventing the emission of 3,300 tons of CO 2 , with environmental benefits equal to the contribution of 24,000 trees. Scheduled to become operational in the initial months of 2026, the project involves the establishment of a plant whereby the waste heat from Retelit’s expansive Avalon 3 Data Centre – spanning over 3,500 square meters and 3.2 MW of power, distinguished as Italy’s largest internet interconnection point – will be fed into the district heating infrastructure managed by A2A Calore e Servizi, increasing the green energy available to families in the western area of the city. The facility will provide 2.5 MWt of annual thermal power to the grid, along with an increase of 15 GWh in recoverable energy. A PPA has been signed between A2A and FERA Group for a 25.2 MW wind farm in Liguria On August 27, 2024, A2A and the FERA Group (Fabbrica Energie Rinnovabili Alternative) entered into a Power Purchase Agreement (PPA) for the supply of green energy from a wind farm with an installed capacity of 25.2 MW, situated in Liguria, in the province of Savona. The ten-year agreement entails A2A purchasing over 65 GWh per year of renewable energy generated by the ‘Monte Greppino’ park, owned by ADELASIA SRL, a company controlled by FERA. This acquisition is sufficient to fulfil the energy requirements of approximately 17,000 homes, while simultaneously preventing more than 16,000 tons of CO 2 equivalent from being released into the atmosphere annually. SEA and A2A: agreement for the construction of a photovoltaic system in Milan Linate On September 10, 2024, the A2A Group and SEA, the company managing Milan airports, through the Temporary Business Grouping with Esapro, signed an agreement to build a photovoltaic plant within Milan Linate airport. This facility will be operational from 2025 and will cover about 20% of the airport’s energy needs, reducing CO 2 emissions by approximately 5000 tons annually. This new project entails the construction of a ground-mounted facility using cutting-edge technologies, employing mono-axial solar tracking structures with high-efficiency mono- crystalline, bi-facial, and anti-reflective modules, capable of generating over 10 GWh of renewable energy annually. The infrastructure will be built on approximately 9 hectares of lawn area in the northwest area of the airport. The Temporary Grouping of Enterprises A2A - Esapro will provide management and maintenance services for 9 years. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Consolidated results and report on operations Report on Operations 2024 A2A 45 The Rea Dalmine waste-to- energy plant delivers new, clean heat to extend A2A’s district heating in Bergamo On September 11, 2024, the project, launched in 2019, to recover the heat generated by the Rea Dalmine waste-to-energy plant and expand A2A Calore & Servizi’s district heating network reached completion, serving an additional 11,000 apartments in Bergamo without the use of fossil fuels. The project was structured on three levels of intervention: the realization of the cogeneration section at the Dalmine waste-to-energy plant, so that the plant could produce not only electricity but also heat to be transferred to the district heating network; the laying of a backbone of over 5.6 kilometers to bring the heat from Dalmine to Bergamo and from there to the new city neighborhoods reached by the network; the enhancement of the pumping station at the A2A plant in Via Goltara, in the city, where a new thermal storage has also been built, a large tank capable of storing 5,000 cubic meters of hot water to better manage the heat coming from Rea and distribute it in the urban area. The result was a roughly 50% increase in the heat available for district heating in Bergamo, which will mean an increase of 2.6 million cubic meters of heated volume over 5 years. In 5 years, A2A Calore e Servizi is set to expand the network by an additional 22 kilometers, promising both environmental and financial benefits for families. In total, the project involved an investment of approximately 30 million euro, with over 20 million allocated for building the connection to the district heating network and carrying out works at the Goltara power plant (storage and pumping system), managed by A2A Calore & Servizi, and around 9.5 million dedicated to the construction of the new cogeneration section, handled by Rea Dalmine. CAP Group and A2A unite efforts to decarbonize the water service. 10 new photovoltaic plants at CAP’s flywheel tanks On October 15, 2024, A2A, through its subsidiary A2A Calore & Servizi, and CAP Evolution, the CAP Group company that operates in the Waste, Wastewater and Energy sectors, signed an agreement to build 10 new photovoltaic plants at the CAP Group’s flywheel tanks, with an investment of 10.9 million euro for the design, financing, and construction of the renewable energy production plants. The concession will last for 20 years, at the end of which the facilities will be entirely managed by CAP. Over 7 GWh of photovoltaic energy will be produced annually, of which 14% will be used by CAP Group for energy self-sufficiency. This is a significant step forward towards decarbonizing the water service and meeting the energy neutrality goal indicated by the proposed European Directive on urban wastewater treatment, which foresees 20% of consumed energy to be produced from renewable sources by 2030. The remaining 86% of the generated energy will instead be fed into the grid and shared with both CAP users and the municipalities associated through the mechanisms of long-distance self-consumption and Energy Communities. 46 A2A Report on Operations 2024 Consolidated results and report on operations A2A: 2024-2035 Strategic Plan Update On November 11, 2024, A2A S.p.A.’s Board of Directors approved the update to the Strategic Plan for 2024-2035, which maintains the industrial growth objectives defined in the March 2024 Plan. The strategy, which remains centered on the two pillars of Energy Transition and Circular Economy, combines decarbonization with competitiveness. The Plan confirms investments of 22 billion euro. 70% of the development investments planned to 2030 have already been authorized or are in progress. A2A, first issuer with an EMTN Programme approved in Italy On December 11, 2024, A2A launched a new EMTN (Euro Medium Term Notes) Programme, approved by CONSOB, and listed on the MOT of Borsa Italiana. With the support of CONSOB and Borsa Italiana, this initiative aims to attract issuers to the Italian market and reaffirms A2A’s commitment to developing the national bond market. The program will allow future bond issues of up to 7 billion euro. The operation involved several financial institutions as Arrangers and Dealers, with A2A being assisted by the law firm Simmons & Simmons. The Board of Directors of A2A S.p.A. has taken a new framework resolution for the issue of bonds On December 19, 2024, the Board of Directors of A2A S.p.A. authorized the issuance of bonds up to 1.65 billion euro by April 30, 2026, using the EMTN programs approved by the CSSF and CONSOB. These funds will be allocated to finance and refinance the A2A Group’s investments, maintain adequate levels of liquidity, optimize the cost of debt, and extend the average life of the debt. S&P Global reaffirms the BBB long-term rating with a ‘stable’ outlook by reducing the minimum level of FFO/Net Debt On December 20, 2024, S&P Global confirmed A2A’s long-term rating at BBB with a ‘stable’ outlook. Concurrently, the agency revised the threshold for the FFO/Net Debt parameter necessary for maintaining the current credit rating, changing it from the previous 25% to 24%. The decision reflects A2A’s strategy of focusing more on low volatility businesses, particularly regulated electricity networks, as confirmed with the update of the 2024-2035 Plan presented in November 2024. It further acknowledges the meticulous financial management enacted by the Group, demonstrated throughout the year by the issuance of bonds in a hybrid format and the agreement with Ascopiave regarding the sale and purchase of gas networks located in the provinces of Brescia, Cremona, Bergamo, Pavia, and Lodi. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Consolidated results and report on operations Report on Operations 2024 A2A 47 A2A, the first European Green Bond placed on the market On January 23, 2025, A2A successfully issued its inaugural European Green Bond, attracting significant interest from investors. A2A issued a 500 million euro European Green Bond with a maturity of 10 years, receiving orders totaling 2.2 billion euro, about 4.4 times the offered amount. The bond was placed at an issue price of 99.080% and will have an annual yield of 3.737% and a fixed coupon of 3.625%, with a spread of 125 basis points over the mid-swap reference rate. In accordance with the provisions of Regulation (EU) 2023/2631, the net proceeds derived from the issuance will be used to finance or refinance projects that are 100% aligned with the European Taxonomy and will be central to implementing the Group’s Strategic Plan in the context of the Energy Transition and Circular Economy, such as the development of electric grids, renewable energy sources, energy efficiency, and waste collection. A2A awarded 4.6 GW in the capacity market auction On March 3, 2025, A2A secured 4.6 GW in the capacity market auction for 2027, with a mix of gas and renewable plants, at a price of 47,000 euro/MW/year. Additionally, it secured annual contracts for 520 MW of foreign capacity at 7,000 euro/MW/year. This outcome is in line with the 2024-2035 Strategic Plan. 2.3 Significant events after December 31, 2024 48 A2A Report on Operations 2024 Consolidated results and report on operations 2.4 Business Outlook The forecasts for the 2025 financial year foresee an EBITDA of between 2.17 and 2.20 billion euro and a Group Net Income, net of non-recurring items, of between 0.68-0.70 billion euro. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Consolidated results and report on operations Report on Operations 2024 A2A 49 2.5 Proposal for the allocation of net profit for the year ended December 31, 2024 and the distribution of a dividend The annual financial statements of A2A S.p.A. for the year ended December 31, 2024 show a net profit of 788,384,491.00 euro. If you are in agreement with the criteria used to prepare the financial statements, with the accounting principles and methods used in those statements and with the measurement criteria adopted, we invite you to approve: the allocation of the net profit for the year of 788,384,491.00 euro as follows: • 39,419,225.00 euro to the legal reserve; • 313,290,528.00 euro as an ordinary dividend payable to shareholders to ensure a remuneration of 0.10 euro for each outstanding ordinary share; • 435,674,738.00 euro to the extraordinary reserve. By way of information, we bring to your attention that the number of shares currently outstanding is equal to 3,132,905,277 shares. The dividend will be paid from May 21, 2025, with ex-dividend date May 19, 2025 and record date May 20, 2025. The Board of Directors 3 Scenario and market Report on Operations 2024 52 A2A Report on Operations 2024 Scenario and market Overview In 2024, the global economy showed promising signs of recovery: inflation eased more rapidly than anticipated due to a decrease in energy commodity prices, consumer spending regained momentum, and job market conditions stayed solid in many areas. According to the preliminary estimate from the International Monetary Fund, global GDP growth is expected to be +3.2% in 2024, compared to a +3.3% increase in the previous year. Regarding advanced economies, the Federal Reserve estimates the US GDP to average +2.7% in 2024, after reaching +2.9% in 2023. The growth was driven by domestic demand and inventories, which more than offset the dampening effect of the strong increase in imports. China’s GDP grew by 5.4% in the fourth quarter of 2024, up from 4.6% in the third quarter, thanks to the economic incentives introduced. Throughout 2024, the Chinese economy recorded a growth rate of 5.0%, compared to 5.2% in 2023. It is one of the lowest in recent decades, as the persistent crisis in the real estate market has continued to affect domestic demand. According to initial projections by ECB analysts published in December, the Eurozone’s GDP is expected to achieve +0.7% in 2024, an increase from +0.4% in 2023, driven by the positive contribution of domestic demand and a slight improvement in productivity. Regarding Italy, growth remained virtually nil in the last months of 2024, hindered by weak consumer spending and investments, alongside the persistent sluggishness in manufacturing. According to the Bank of Italy’s estimates, the GDP is expected to grow by 0.5% in 2024, after a 0.7% increase in 2023. According to the estimate published by Eurostat, the annual inflation rate in the Eurozone for December recorded an increase of +2.4%, up from +2.2% in November 2024, and a decrease compared to +2.9% in the same month of the previous year. The services component recorded the strongest growth (+4% compared to December 2023). The average inflation for the year is equal to +2.4%. According to ISTAT’s estimate, in Italy, inflation in December 2024 recorded a month-over- month rise of 0.1% and a year-on-year increase of 1.3%. In 2024, the acquired inflation averages +1.0%, showing a significant drop from +5.7% in 2023. The noticeable reduction in inflation is mostly attributable to the marked decline in energy goods prices (-10.1% from +1.2% in 2023), followed by a decrease in food prices (+2.2% from +9.8% in 2023). In the December meeting, the ECB’s Governing Council decided to reduce the three key interest rates by a further 25 basis points, as it considered it appropriate to moderate the degree of monetary policy restriction based on an updated assessment of the inflation outlook. Therefore, the interest rates on deposits with the central bank, on main refinancing operations, and on marginal refinancing operations were reduced to 3.00%, 3.15%, and 3.40% respectively. Similarly, the Federal Reserve also decided at its December meeting to ease its monetary policy by reducing interest rates by 25 basis points, setting the reference rate in a range between 4.25% and 4.50%. From January 2024, the same monetary policy implemented in both the United States and the Eurozone has promoted substantial stability in the euro-dollar exchange rate. In the average of 2024, the EUR/USD exchange rate was $1.08, unchanged from the previous year. 3.1 Macroeconomic scenario Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Scenario and market Report on Operations 2024 A2A 53 Outlook In 2024, global growth demonstrated resilience and is expected to remain stable this year. The International Monetary Fund, in its January publication of the ‘World Economic Outlook’, forecasts a global growth rate of 3.3% for the years 2025 and 2026. The Fund notes that the forecast remains below the historical annual average, reflecting the gradual withdrawal of fiscal support measures, the ongoing weakness of the Chinese real estate sector, and uncertainties about the policies of the upcoming US administration, including Donald Trump’s foreseeable neo-protectionism. The geopolitical environment remains one of the main factors of instability, from which new surges in commodity prices and a deterioration in confidence among households, businesses, and investors might arise. Anticipated growth for the United States stands at +2.7% in 2025 (an upward revision of +0.5% from the previous estimate) and +2.1% in 2026 (an upward revision of +0.1% from the previous estimate), attributed to a more accommodative monetary policy, strong labor market conditions, and increased investment. The International Monetary Fund has also raised its growth forecast for China to +4.6% this year and +4.5% next year, marking an increase of +0.1% and +0.4% respectively from the previous estimates. The growth outlook for Japan is confirmed at +1.1% in 2025 and +0.8% in 2026. For India, a growth of +6.5% is projected both this year and the next. The growth forecast for Russia in 2025 has also been uplifted to +1.4%, reflecting a +0.1% improvement from the earlier estimate, while the 2026 projection stays at +1.2%. According to the projections of ECB experts published in December, the Eurozone’s GDP is expected to stand at +1.1% in 2025, increase to +1.4% in 2026, and then slightly decrease to +1.3% in 2027. Compared to the estimates in September, the growth prospects have been revised downwards mainly due to the expected slowdown in exports for 2025 and the lesser contribution of domestic demand for 2026. In the Eurozone, Germany’s economy is projected for modest growth, with +0.3% anticipated for this year (0.5% lower than previous estimates) and +1.1% next year, while France is expected to grow by +0.8% in 2025 (0.3% lower than previous estimates) and +1.1% in 2026. Spain is expected to grow at + 2.3% this year and +1.8% next year. The growth forecast for Britain has been adjusted upwards for 2025 to +1.6%, and remains confirmed for next year at +1.5%. Regarding Italy, the economic growth is struggling to regain momentum. According to the Bank of Italy’s estimates, the GDP is expected to grow by 0.8% in 2025 and by 1.1% in 2026. Growth is expected to remain restrained in the early part of 2025, then gain momentum, supported by consumer spending and exports benefiting from a rebound in disposable income and international trade. The unemployment rate is expected to decrease to 6.5% on average in 2025 and then settle at 6.2% in 2026. The International Monetary Fund states that global inflation is decreasing, expected to be +4.2% this year, down from +5.7% in 2024, and projected to be +3.5% in 2026, allowing central banks to return to standardizing their monetary policies. According to the Eurosystem experts’ December projections, Eurozone inflation is anticipated to be +2.1% in 2025 and +1.9% in 2026. Compared to the September estimates, the forecasts for 2025 have been revised downwards by 0.1 percentage points, while they have remained unchanged for 2026. The revision primarily highlights a more significant decline in the energy component, which more than compensated for the anticipated increase in the food component. 54 A2A Report on Operations 2024 Scenario and market As for Italy, consumer inflation is expected to rise to +1.5% in the 2025-26 period and then reach +2.0% in 2027, due to a possible temporary rise in the energy component owing to the introduction of the new system for trading emissions quotas and greenhouse gases in the European Union (EU Emission Trading System 2). The Governing Council of the European Central Bank (ECB) is determined to ensure that inflation stably settles at its 2% target over the medium term. To define the appropriate monetary policy direction, a data-driven approach will be followed, by which decisions are determined each time at every meeting. Specifically, decisions regarding interest rates will hinge on an evaluation of inflation expectations, considering the latest economic and financial data, core inflation dynamics, and the intensity of monetary policy transmission. Regarding the US, most members of the Federal Open Market Committee predict that interest rates may decrease below 4% by the end of 2025, based on two cuts during the year. Further cuts are anticipated in 2026 that could lower the benchmark rate to under 3.5% by the end of the year and stabilize it between 2.75% and 3.0% in the long term. Since October 2024, the increase in US government bond yields, driven by more favorable-than-expected macroeconomic data and expectations of fewer interest rate cuts by the Federal Reserve, has led to the dollar’s strengthening against all major currencies. The prospect of stricter US trade policies has also negatively impacted the currencies of the United States’ main trading partners. December projections by Eurosystem experts predict a drop in the euro’s value compared to the dollar, with expectations for the EUR/USD rate to reach 1.06 dollars this year. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Scenario and market Report on Operations 2024 A2A 55 Electricity As far as the national electricity market is concerned, the net electrical energy requirement in Italy in 2024 was 312,285 GWh, an increase of 2.2% compared to the requirement in 2023 (source: Terna); in seasonally adjusted terms, and corrected for calendar and temperature, the change is equal to +1.5%. The above requirements were met 42.5% from non- renewable sources, 41.2% from renewable sources and the remainder from imports. The net energy production in 2024 was 263,500 GWh, an increase of 2.7% compared to the previous year; the highest electricity demand was recorded in July with 31,084 GWh. In more detail, hydroelectric energy experienced a 30.4% boost, driven by significant rainfall during the period, and solar power climbed by 19.3%, while wind energy decreased by 5.6%, and geothermal energy levels remained nearly the same, showing a mere 0.8% decrease compared to 2023. The 13.4% increase in production from renewable sources has led to a simultaneous 6.2% decrease in thermoelectric generation compared to 2023, standing at 146,452 GWh. In 2024, there was a 47.9% increase in the foreign balance compared to 2023. In 2024, renewable energy sources accounted for 48.8% of total net production, an increase from 44.2% in the previous year. National production, excluding pumping, accounted for 84.4% of the demand for electricity, while net imports satisfied the remainder. In 2024, the PUN (Single National Price) Base Load is expected to average 108.4 €/MWh, a 14.9% decrease compared to 2023. Despite an overall annual decrease, the PUN price in 2024 showed an upward trend after an initial phase of substantial stability, culminating in December where it reached its peak at 135.1 €/MWh. The PUN trend mirrored the trend recorded in gas prices, partially mitigated by the historic high availability of energy from renewable sources. Compared to the previous year, there is a downward trend also for average quotations in high load time slots (PUN Peak Load) with a value of 115.9 €/MWh (-15.6% compared to 2023). In 2024, the average price for off-peak hours (PUN Off-Peak) is set at 104.3 €/MWh, with a decrease of 14.5% compared to the previous year. For the entire year 2025, forward curves indicate Base Load PUN prices with average values close to 134.1 €/MWh. Natural Gas Italy’s natural gas consumption is set to drop to 61,692 million cubic meters in 2024, reflecting a -2.3% decrease compared to 2023\. Consumption was at its lowest in over fifteen years due to reduced demand in the thermoelectric sector, which was affected by the increased rainfall during the period and the persistently high prices compared to the quotations seen before 2021. The reduction in the thermoelectric sector, with volumes dropping by 1.6% to 20,808 million cubic meters (-1.6%), was more marked between February and July. Instead, there was a slight increase in consumption in the civil and industrial sectors, whose volumes were 27,169 million cubic meters (a rise of 2.2%) and 11,622 million cubic meters (an increase of 1.6%) respectively. From the supply side in 2024, there is a reduction in natural gas imports, in line with a decrease in demand partly offset by domestic production at historic lows, which fell to 58,743 million cubic meters (-3.1% compared to 2023). Imports represented 95.5% of national requirements net of stock changes. Domestic production, which satisfied the remainder, stood at 2,752 million cubic meters (-1.8%). Regarding price quotations, the average gas price at the PSV in 2024 decreases compared to 2023 levels, settling at 36.3 €/MWh, a decrease of 14.3%; nevertheless, these rates remain higher than those observed before 2021. Throughout 2024, average PSV quotations experienced a progressive increase after touching the annual low in February (27.8 €/MWh) and reached their peak in December (47.6 €/MWh), corresponding with the seasonal demand recovery and the resurgence of Middle Eastern tensions. The pricing behavior across major European hubs 3.2 Energy market trends 56 A2A Report on Operations 2024 Scenario and market was comparable: in 2024, the TTF recorded an average gas price of 34.3 €/MWh, reflecting a reduction of 15.7% compared to 2023. The trend in the respective prices resulted in a PSV-TTF differential of 2.02 €/MWh for the reporting period, up compared to the differential of 2023 (1.66 €/MWh). The forecasts for the entire 2025 see gas quotations on the main European markets with an average expected gas price at the TTF of 47.4 €/MWh and at the PSV of 48.9 €/MWh; the respective forward curves show a positive PSV-TTF differential and around €1.52 €/MWh. Oil and coal In 2024, oil quotations are expected to average 79.8 $/bbl, marking a 2.9% decrease compared to the previous year. The intra-annual dynamics show higher quotations in the first half of the year, with a peak value of 89.0 $/bbl in April, then declining to a low in September before stabilizing at 73.1 $/bbl by December. In 2024, the bearish trend in quotations expressed in € per barrel (-2.9%) is consistent due to the substantial stability of the euro-dollar exchange rate. For the year 2025, oil forward curves indicate prices with average values close to 76.0 $/bbl. The Energy Information Administration (EIA) reported that global oil demand in 2024 averaged 102.8 million barrels per day. The EIA predicts that global oil demand will increase to 104.1 million barrels per day in 2025, driven by strong demand for air travel and road mobility, and then grow further to 105.2 million barrels per day in 2026. A significant portion of the anticipated growth will be in Asia, with India emerging as the primary source of increased global oil demand. However, this forecast is subject to many uncertainties due to ongoing geopolitical tensions. OPEC crude production of member countries averaged 32.2 million barrels per day in 2024. EIA forecasts that OPEC’s average crude oil production will increase to 32.6 million barrels per day in 2025 and to 33.1 million barrels per day in 2026, as a result of a relaxation of OPEC’s production cuts. U.S. crude oil production averaged 13.2 million barrels per day in 2024. EIA forecasts indicate a rise with an average of 13.55 million barrels per day in 2025, increasing to 13.62 million barrels per day in 2026, a year in which production growth could slow due to reduced drilling activity in response to low crude oil prices. Throughout 2024, coal prices show a slight upward trend, starting at their lowest point in February at 97.9 $/ton, reaching a peak of 121.4 $/ton in November, and then easing back to 111.2 $/ton in December. In 2024, the average price stands at 112.1 $/ton, marking a 13.4% decrease from the previous year’s 129.4 $/ton. In 2024, the bearish trend in quotations expressed in € per ton (-13.5%) is more or less in line due to the substantial stability of the single currency’s value against the dollar. For the year 2025, forward curves indicate prices with average values close to 111.1 $/ton. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Scenario and market Report on Operations 2024 A2A 57 4 Analysis of main sectors of activity Report on Operations 2024 60 A2A Report on Operations 2024 Analysis of main sectors of activity 12.31.2024 Millions of euro Generation and Trading Market Waste Smart Infrastructures Corporate Eliminations Income statement 01.01.24 01.01.24 01.01.24 01.01.24 01.01.24 01.01.24 01.01.24 12.31.24 12.31.24 12.31.24 12.31.24 12.31.24 12.31.24 12.31.24 Revenues 8,519 6,670 1,540 1,492 353 (5,717) 12,857 \- of which inter-sector 4,529 145 311 408 324 (5,717) Operating expenses (7,428) (6,135) (743) (810) (238) 5,717 (9,637) \- of which inter-sector (470) (4,702) (133) (396) (16) 5,717 Labor costs (105) (73) (388) (130) (196) (892) Gross operating income - EBITDA 986 462 409 552 (81) 2,328 % of revenues 11.6% 6.9% 26.6% 37.0 % (22.9%) 18.1% Depreciation of tangible assets and amortization of intangible assets (253) (85) (179) (289) (78) (884) Net write-downs of fixed assets (1) - (7) (5) (1) (14) Provisions for risks (30) 11 (14) 5 (3) (31) Provisions for credit risks - (80) (1) (3) 2 (82) Net operating income \- EBIT 702 308 208 260 (161) 1,317 % of revenues 8.2% 4.6% 13.5% 17.4% (45.6%) 10.2% Result from non- recurring transactions 5 Financial balance (111) Result before taxes 1,211 Income taxes (319) Result after taxes from operating activities 892 Net result from discontinued operations - Minorities (28) Group result of the year 864 Gross capex 1 370 115 256 660 112 (1) 1,512 1\. See the items “Capex” in the schedules on tangible and intangible assets presented in Notes 1 and 2 to the balance sheet. 4.1 Summary of results sector by sector Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Analysis of main sectors of activity A2A Report on Operations 2024 A2A 61 12.31.2023 Millions of euro Generation and Trading Market Waste Smart Infrastructures Corporate Eliminations Income statement 01.01.23 01.01.23 01.01.23 01.01.23 01.01.23 01.01.23 01.01.23 12.31.23 12.31.23 12.31.23 12.31.23 12.31.23 12.31.23 12.31.23 Revenues 10,920 7,140 1,458 1,552 337 (6,649) 14,758 \- of which inter-sector 5,491 180 313 354 311 (6,649) Operating expenses (9,992) (6,777) (718) (904) (230) 6,649 (11,972) \- of which inter-sector (417) (5,624) (126) (413) (69) 6,649 Labor costs (99) (64) (365) (114) (173) (815) Gross operating income - EBITDA 829 299 375 534 (66) 1,971 % of revenues 7.6 % 4.2% 25.7% 34.4% (19.6%) 13.4% Depreciation of tangible assets and amortization of intangible assets (225) (68) (160) (282) (66) (801) Net write-downs of fixed assets - - (1) (1) - (2) Provisions for risks (50) 5 (9) (11) (3) (68) Provisions for credit risks - (69) 1 (10) (5) (83) Net operating income \- EBIT 554 167 206 230 (140) 1,017 % of revenues 5.1% 2.3% 14.1% 14.8% (41.5%) 6.9% Result from non- recurring transactions 2 Financial balance (140) Result before taxes 879 Income taxes (199) Result after taxes from operating activities 680 Net result from discontinued operations 3 Minorities (24) Group result of the year 659 Gross capex 1 332 92 214 631 110 (3) 1,376 1\. See the items “Capex” in the schedules on tangible and intangible assets presented in Notes 1 and 2 to the balance sheet. 62 A2A Report on Operations 2024 Analysis of main sectors of activity 12.31.2024 Millions of euro Generation and Trading Market Waste Smart Infrastructures Corporate Eliminations and adjustments Total Group 12.31.24 12.31.24 12.31.24 12.31.24 12.31.24 12.31.24 12.31.24 Capital employed Net fixed capital: 2,876 447 1,842 5,807 5,986 (5,628) 11,330 \- Tangible assets 2,635 56 1,473 3,097 296 (40) 7,5 17 \- Intangible assets 410 436 605 2,728 120 - 4,299 \- Shareholdings and other non-current financial assets 15 8 36 1 5,630 (5,590) 100 \- Other non-current assets/liabilities 17 (52) 3 (56) 19 2 (67) \- Deferred tax assets 218 20 124 127 60 - 549 \- Provisions for risks, charges and liabilities for landfills (402) (13) (357) (52) (30) - (854) \- Employee benefits (17) (8) (42) (38) (109) - (214) Net Working Capital and Other Current Assets/Liabilities (230) 607 (81) (104) (69) (9) 114 Net Working Capital: (406) 711 (3) 85 (79) (31) 277 \- Inventories 200 - 47 64 5 - 316 \- Trade receivables 1,830 1,947 358 509 79 (1,080) 3,643 \- Trade payables (2,436) (1,236) (408) (488) (163) 1,049 (3,682) Other current assets/ liabilities: 176 (104) (78) (189) 10 22 (163) \- Other current assets/liabilities 158 (98) (73) (188) 91 22 (88) \- Current tax assets/ tax liabilities 18 (6) (5) (1) (81) - (75) Assets/Liabilities held for sale - - - 394 - - 394 Total Capital Employed 2,646 1,054 1,761 6,097 5,917 (5,637) 11,838 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Analysis of main sectors of activity A2A Report on Operations 2024 A2A 63 12.31.2023 Millions of euro Generation and Trading Market Waste Smart Infrastructures Corporate Eliminations and adjustments Total Group 12.31.23 12.31.23 12.31.23 12.31.23 12.31.23 12.31.23 12.31.23 Capital employed Net fixed capital: 2,758 237 1,650 4,584 4,237 (3,899) 9,567 \- Tangible assets 2,499 57 1,356 2,510 261 (40) 6,643 \- Intangible assets 423 388 608 2,105 106 - 3,630 \- Shareholdings and other non-current financial assets 9 14 29 - 3,890 (3,859) 83 \- Other non-current assets/liabilities 2 (209) 2 (31) 48 - (188) \- Deferred tax assets 236 15 35 100 78 - 464 \- Provisions for risks, charges and liabilities for landfills (391) (20) (334) (57) (26) - (828) \- Employee benefits (20) (8) (46) (43) (120) - (237) Net Working Capital and Other Current Assets/Liabilities (574) 586 (30) 27 (85) (6) (82) Net Working Capital: (852) 623 13 81 (85) (26) (246) \- Inventories 208 - 46 64 1 - 319 \- Trade receivables 1,838 1,920 340 571 81 (1,210) 3,540 \- Trade payables (2,898) (1,297) (373) (554) (167) 1,184 (4,105) Other current assets/ liabilities: 278 (37) (43) (54) - 20 164 \- Other current assets/liabilities 267 (31) (33) (66) 36 20 193 \- Current tax assets/ tax liabilities 11 (6) (10) 12 (36) - (29) Assets/Liabilities held for sale - - - - - - - Total Capital Employed 2,184 823 1,620 4,611 4,152 (3,905) 9,485 64 A2A Report on Operations 2024 Analysis of main sectors of activity Generation and Trading Business Unit The activity of the Generation and Trading Business Unit is related to the management of the generation plants portfolio 1 of the Group with the dual purpose of maximizing the availability and efficiency of the plants, minimizing operating and maintenance costs (O&M) and maximizing the profit deriving from the management of the energy portfolio through the purchase and sale of electricity and fuels (gaseous and non-gaseous) and environmental certificated on domestic and international wholesale markets. This Business Unit also includes the activity of trading on domestic and foreign markets of all energy commodities (gas, electricity, environmental certificates). Market Business Unit The activity of the Market Business Unit is aimed at the retail sale of electricity and natural gas and is responsible for providing energy efficiency services. Waste Business Unit The activities of the Waste Business Unit relate to the management of the integrated waste cycle, which ranges from collection and street sweeping to the treatment, disposal and recovery of materials and energy. In particular, collection and street sweeping mainly refers to street cleaning and the collection of waste for transportation to its destination. Instead, waste treatment is an activity that is carried out in dedicated centers to convert waste in order to make it suitable for the recovery of materials. Disposal of urban and special waste in combustion plants or landfills ensures the possible recovery of energy through waste-to- energy or the use of biogas. Smart Infrastructures Business Unit The Smart Infrastructures Business Unit develops and manages the infrastructures functional to the wide range of services provided by the Group, focusing on technology and innovation. In particular, the Business Unit’s activity mainly concerns the development and technical- operational management of electricity distribution networks, natural gas transport and distribution networks and the related metering service, characterized by important technological evolutions thanks to the use of smart meters. It manages the entire integrated water cycle (water collection, aqueduct management, water distribution, sewerage management, purification). The activity is also aimed at the sale of heat and electricity produced by cogeneration plants (mostly owned by the Group), through district heating networks and ensures the operation and maintenance of cogeneration plants and district heating networks. Also included are the activities related to the management services for heating plants owned by third parties (heat management services). The Smart Infrastructures Business Unit also develops infrastructures in the field of telecommunications, designs solutions and applications aimed at creating new models of cities and territories and improving the quality of life of citizens. It develops and manages public lighting and traffic regulation systems; finally, it builds and manages a network of recharging infrastructures functional to the electrification of transport. 1\. Total installed capacity of 9.7 GW. 4.2 Results by sector Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Analysis of main sectors of activity A2A Report on Operations 2024 A2A 65 Corporate Corporate services include the activities of guidance, strategic direction, coordination and control of industrial operations, as well as services to support the business and operating activities (e.g. administrative and accounting services, legal services, procurement, personnel management, information technology, communications, landline and mobile telephone service etc.) whose costs, net of amounts recovered from accrual to individual Business Units based on services rendered, remain the responsibility of the Corporate. The following is a summary of the main economic data by sector: Results by sector 2024 millions of euro Generation and Trading Market Waste Smart Infrastructures Corporate Eliminations and adjustments Total Revenues from the sale of goods and services 8,369 6,629 1,469 1,462 318 (5,677) 12,570 Other revenue and income 150 41 71 30 35 (40) 287 Total revenues 8,519 6,670 1,540 1,492 353 (5,717) 12,857 Operating costs 7,4 2 8 6,135 743 810 238 (5,717) 9,637 Labor costs 105 73 388 130 196 - 892 Gross operating margin 986 462 409 552 (81) - 2,328 Depreciation, amortization, provisions and write-downs 284 154 201 292 80 - 1,011 Net operating result 702 308 208 260 (161) - 1,317 Capital Expenditure 370 115 256 660 112 (1) 1,512 Results by sector 2023 millions of euro Generation and Trading Market Waste Smart Infrastructures Corporate Eliminations and adjustments Total Revenues from the sale of goods and services 10,807 7,090 1,410 1,496 305 (6,616) 14,492 Other revenue and income 113 50 48 56 32 (33) 266 Total revenues 10,920 7,1 4 0 1,458 1,552 337 (6,649) 14,758 Operating costs 9,992 6,777 718 904 230 (6,649) 11,972 Labor costs 99 64 365 114 173 - 815 Gross operating margin 829 299 375 534 (66) - 1,971 Depreciation, amortization, provisions and write-downs 275 132 169 304 74 - 954 Net operating result 554 167 206 230 (140) - 1,017 Capital Expenditure 332 92 214 631 110 (3) 1,376 66 A2A Report on Operations 2024 Analysis of main sectors of activity 4.3 Generation & Trading Business Unit 986 mln € Ebitda +18.9% compared to 2023 370 mln € Capex 332 million in 2023 (+11.4%) 0 GWh Production of coal-fired plants (312 GWh in 2023) 5,718 GWh Thermoelectric production CCGT (-24.8% vs 2023) 839 GWh Photovoltaic and wind power production (+4.1% vs 2023) 5,193 GWh Hydroelectric production (+38.7% vs 2023) 108.4 €/MWh Single National Price (-14.9% vs 2023) -5.8 €/MWh Clean Spark Spread (-6.9 €/MWh in 2023) The following is a summary of the main quantitative and economic data relating to the Generation & Trading Business Unit: Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Analysis of main sectors of activity A2A Report on Operations 2024 A2A 67 Operating figures Net electricity production (GWh) 12.31.2024 12.31.2023 Change % 2024/2023 Net thermoelectric production 6,189 9,134 (2,945) (32.2%) \- CCGT 5,718 7,601 (1,883) (24.8%) \- Oil 471 1,221 (750) (61.4%) \- Coal - 312 (312) (100.0%) Net production from Renewable Sources 6,032 4,549 1,483 32.6% \- Hydroelectric 5,193 3,743 1,450 38.7% \- Photovoltaic 382 378 4 1.1% \- Wind 457 428 29 6.8% Total net production 12,221 13,683 (1,462) (10.7%) The volumes produced in 2024, at 12,221 GWh, decreased by 10.7%. In particular, the generation of energy from renewable sources amounted to 6,032 GWh, +32.6% compared to the previous year, due to higher hydroelectric volumes (+38.7%) as a result of the rainfall recorded in most of 2024 (which compares with the low hydroelectricity of the same period of the previous year, penalized by the continuation until April of the severe drought that had affected 2022) and due to the contribution of the Matarocco wind plant, in operation since September last year. Thermoelectric generation in the period amounted to 6,189 GWh, down 32.2% year-on-year (9,134 GWh in 2023). The contraction affected combined cycle power plants (-24.8%) as a result of lower contestable demand due to increased imports and the simultaneous increase in production from renewable sources. The conclusion of the emergency measure, started in 2022 and with effects also in 2023, of the maximization of production of power plants fueled by sources other than natural gas led to the decrease in production of the plant in essentiality regime at San Filippo del Mela and the cancellation of that of the Monfalcone coal-fired plant. Economic figures Millions of euro 01.01.2024 12.31.2024 01.01.2023 12.31.2023 Change % 2024/2023 Revenues 8,519 10,920 (2,401) (22.0%) Operating costs (7,428) (9,992) 2,564 (25.7%) Labor costs (105) (99) (6) 6.1% Gross Operating Margin 986 829 157 18.9% % of Revenues 11.6% 7.6 % Depreciation, amortization, provisions and write-downs (284) (275) (9) 3.3% Net Operating Result 702 554 148 26.7% % of Revenues 8.2% 5.1% Capital Expenditure 370 332 38 11.4% FTE 1,120 1,107 13 1.2% 68 A2A Report on Operations 2024 Analysis of main sectors of activity Revenues in 2024 amounted to 8,519 million euro, down by 2,401 million euro (-22.0%) compared to the previous year due to both lower volumes sold and brokered and lower unit prices. Operating costs for the period amounted to 7,428 million euro, a decrease of 25.7% compared to 2023, mainly due to the reduction in the costs of supplying energy raw materials. Labor costs amounted to 105 million euro, up 6 million euro compared to 2023 (+6.1%). This change was caused partly by the increase in unit costs of more than 4% for salary increases (collective contracts, bonuses and allowances, and salary policy actions) and partly by costs for mobility and redundancy incentives. The FTE-related impact is about 1 million euro and relates to hires made in order to strengthen the structures for the development and management of renewable energies. The Gross Operating Margin of the Generation and Trading Business Unit amounted to 986 million euro, up by 157 million euro compared to 2023 (+18.9%). Before non-recurring items recorded in the two comparison periods (equal to 13 million euro in 2024 and 37 million euro in 2023), Ordinary EBITDA increased by 181 million euro. The positive change is mainly attributable to the contribution of RES plants for: • higher volumes produced as a result of the high hydraulic capacity of 2024 compared to the low rainfall recorded in the previous year: the increase in margins linked to the higher hydroelectric quantities was particularly significant in the first half of the year, then attenuating in the second half of the year. In fact, 2023 was penalized by drought problems in the first part of the year, benefiting only in the last quarter of greater rainfall; • a positive price effect due to the presence in the first half of 2023 of the impacts of the Sostegni Ter decree (two-way compensation mechanism on the price of electricity supplied for RES plants); the coverage policies of the year mitigated the negative effects deriving from the reduction of energy commodities, albeit in a trend of growth in the last part of the year. The positive impacts were partially offset by a contraction in margins recorded in other areas of the business unit’s activities, particularly the lower contribution of combined-cycle thermoelectric production, albeit increasing in the last quarter of the year, and ancillary services markets (MSD), due to both lower demand from Terna and a lower valuation of the quantities offered. Depreciation, amortization, provisions and write-downs totaled 284 million euro (275 million euro as at December 31, 2023), an increase of 9 million euro compared to the previous year. The change is attributable to higher depreciation and amortization (+28 million euro) for investments made in 2024 and for the acceleration related to the wet works in Valtellina referring to expired concessions, higher write-downs on fixed assets (+1 million euro) only partly offset by lower provisions for risks (-20 million euro) related to hydroelectric derivation surcharges for scenario effect and decommissioning provisions. As a result of the above changes, Net Operating Income amounted to 702 million euro (554 million euro at December 31, 2023). In the period under review, investments amounted to 370 million euro (332 million euro in 2023). Development interventions were carried out for a total of 275 million euro, of which 85 million euro related to photovoltaic and wind plants aimed at accelerating the growth of generation from renewable sources and 168 million euro for interventions on combined-cycle thermoelectric plants (new CCGT Monfalcone and internal combustion engines of the Cassano power plant) aimed at ensuring flexibility, coverage of peak demand and balancing the energy needs of the network. More than 85 million euro was spent on extraordinary maintenance, including about 54 million euro for thermoelectric plants, 23 million euro for the Group’s hydroelectric plants, 1 million euro for photovoltaic plants, and 7 million euro for work on buildings and information systems. Finally, some 10 million euro of work was carried out to adapt to standards. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Analysis of main sectors of activity A2A Report on Operations 2024 A2A 69 4.4 Market Business Unit 115 mln € Capex 92 million in 2023 (+25.0%) 24,502 GWh Electricity Sales (+6.7% vs 2023) 3,139 Mmc Gas Sales (+3.5% vs 2023) 2,095 (#/1000) POD Retail market ele customers free market: 1,539 POD (+17.8% vs 2023) 1,549 (#/1000) PDR Retail market gas customers free market: 1,379 PDR (+17.1% vs 2023) 462 mln € Ebitda +54.5% compared to 2023 The following is a summary of the main quantitative and economic data relating to the Market Business Unit: 70 A2A Report on Operations 2024 Analysis of main sectors of activity Operating figures Electricity Sales 12.31.2024 12.31.2023 Change % 2024/2023 Electricity Sales Free Market (GWh) 21,166 18,543 2,623 14.1% Electricity Sales under Greater Protection Scheme (GWh) 293 517 (224) (43.3%) Electricity Sales Safeguard Market (GWh) 1,725 2,600 (875) (33.7%) Electricity Sales Gradual Protection (GWh) 1,318 1,304 14 1.1% Total Electricity Sales (GWh) 24,502 22,964 1,538 6.7% POD Electricity 12.31.2024 12.31.2023 Change % 2024/2023 POD Electricity Free Market (#/1000) 1,539 1,307 232 1 7. 8% POD Electricity Gradual Protection (#/1000) 470 378 92 24.3% POD Electricity under Greater Protection Scheme (#/1000) 86 249 (163) (65.4%) Total POD Electricity (#/1000) 2,095 1,934 161 8.3% Gas Sales 12.31.2024 12.31.2023 Change % 2024/2023 Gas Sales Free Market (Mcm) 3,050 2,743 307 11.2% Gas Sales under Protection Scheme (Mcm) 89 289 (200) (69.2%) Total Gas Sales (Mcm) 3,139 3,032 107 3.5% PDR Gas 12.31.2024 12.31.2023 Change % 2024/2023 PDR Gas Free Market (#/1000) 1,379 1,178 201 17.1% PDR Gas under Greater Protection Scheme (#/1000) 170 377 (207) (54.9%) Total PDR Gas (#/1000) 1,549 1,555 (6) (0.4%) The quantities are stated gross of losses. The POD and PDR figures relate to the mass market. In 2024, the Market Business Unit recorded 24,502 GWh of electricity sales, up 6.7% compared to the same period of the previous year, thanks to the increase in volumes supplied to key accounts, partly offset by lower quantities sold to customers subject to the safeguard regime. Gas sales, equal to 3,139 million cubic meters, increased by 3.5% compared to 2023 following higher volumes destined for key accounts. Following the full deregulation of non-vulnerable gas customers from January 2024 and the end of the protected market for non-vulnerable household electricity customers with the consequent auctions for gradual protections from July 2024, there was, thanks to the effective commercial actions undertaken by the Group, a 4% increase in supply points with a major shift of the customer base from the protected market to the free market and a net increase in gradual protections customers. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Analysis of main sectors of activity A2A Report on Operations 2024 A2A 71 Economic figures Millions of euro 01.01.2024 12.31.2024 01.01.2023 12.31.2023 Change % 2024/2023 Revenues 6,670 7,140 (470) (6.6%) Operating costs (6,135) (6,777) 642 (9.5%) Labor costs (73) (64) (9) 14.1% Gross Operating Margin 462 299 163 54.5% % of Revenues 6.9% 4.2% - - Depreciation, amortization, provisions and write-downs (154) (132) (22) 16.7% Net Operating Result 308 167 141 84.4% % of Revenues 4.6% 2.3% - - Capital Expenditure 115 92 23 25.0% FTE 1,101 1,034 67 6.5% The revenues amounted to 6,670 million euro (7,140 million euro at December 31, 2023). The contraction is mainly attributable to the decrease in both electricity and gas unit prices, partly offset by the growth in quantities sold. Operating expenses for 2024 amounted to 6,135 million euro, down 642 million euro compared to 2023 as a result of lower energy raw material procurement costs, partially offset by increases in costs supporting customer development and management. Labor costs stood at 73 million euro (64 million euro in 2023), up 9 million euro compared to 2023 (+14.1%). This change was caused partly by the increase in unit costs of more than 5% for salary increases (collective agreements and salary policy actions) and partly by the increase in FTEs of 1,101 (1,034 FTEs as at December 31, 2023). The change is related both to the expansion of the scope (acquisition of Agesp Energia) and to the increased hiring made to meet the needs that emerged for the management of the customer base following the liberalization of the market and in general for the strengthening, in line with business development objectives, of the organizational structures. The Market Business Unit EBITDA amounted to 462 million euro, an increase of 163 million euro compared to the previous year (299 million euro at December 31, 2023), confirming the positive growth trend that began last year with particular evidence in the fourth quarter. Net of non-recurring components (1 million euro in 2024 and -18 million euro in 2023), Ordinary Gross Operating Margin increased by 144 million euro. The increase in the margin is attributable to: • the evolution in the customer base of the mass market segment; • the growth in volumes sold to the key accounts segment, both electricity and gas; • the positive dynamics of the unit marginality. The positive results reflect the effects of the commercial development actions of the period, as well as the reabsorption of the negative impacts on margins related to the exceptionally unstable situation in the commodities markets, still present above all in the first three months of 2023 and progressively weakening during the year. 72 A2A Report on Operations 2024 Analysis of main sectors of activity These effects more than offset the lower margin in the protection market due to the contraction in volumes sold, the higher charges related to retention actions activated by the Group on its customer base already in 2023, and the increase in operating costs for customer acquisition and management activities. Depreciation, amortization, provisions and write-downs totaled 154 million euro (132 million euro in 2023), an increase of 22 million euro due to both higher depreciation for capital expenditure in 2024 and higher provisions for bad debts, partly offset by higher releases of provisions for tax risks. As a result of the above changes, the net operating result amounted to 308 million euro (167 million euro at December 31, 2023). Investments in 2024 amounted to 115 million euro (92 million euro in 2023) and concerned: • the energy retail segment with 109 million euro for capitalized charges for the acquisition of new customers and for evolutionary maintenance and development work on hardware and software platforms, aimed at supporting billing and customer management activities of the Group sales companies; • the energy solutions sector with 6 million euro for energy efficiency projects. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Analysis of main sectors of activity A2A Report on Operations 2024 A2A 73 4.5 Waste Business Unit 4,732 Kton Waste disposed (+3.7% vs 2023) 256 mln € Capex 214 million in 2023 409 mln € Ebitda 9.1% compared to 2023 1,661 GWht Heat sold (+7.6% vs 2023) 2,106 GWh Electricity sold (+1.7% vs 2023) 1,141 Kton Material recovery disposals (+0.9% vs 2023) 2,175 Kton Energy recovery disposals (+7.4% vs 2023) The following is a summary of the main quantitative and economic data relating to the Waste Business Unit: 74 A2A Report on Operations 2024 Analysis of main sectors of activity Operating figures 12.31.2024 12.31.2023 Change % 2024/2023 Waste collected (Kton) 1,825 1,787 38 2.1% Residents served (#/1000) 3,943 3,878 65 1.7% Electricity sold (GWh) 2,106 2,071 35 1.7% Heat sold (GWht) 1,661 1,544 117 7.6 % Biomethane (Mm 3 ) 13 5 8 n.s. Waste disposed of (kton) 12.31.2024 12.31.2023 Change % 2024/2023 Energy recovery 2,175 2,025 150 7.4 % Material recovery 1,141 1,131 10 0.9% Other 1,416 1,409 7 0.5% Total 4,732 4,565 167 3.7% The quantities reported are gross of intra-group disposals. In 2024, the number of residents served, at 3,943,000, increased by about 2%, thanks to the newly acquired municipalities in Valle d’Aosta. In 2024, the quantity of electricity sold, amounting to 2,106 GWh, was up by about 2% compared to the previous year thanks to the contribution of line 3 of the Parona waste-to-energy plant, active from September 2023, partially offset by the lower availability of the Brescia waste-to-energy plant due to a scheduled shutdown for turbine maintenance. Volumes of heat sold grew by 8% as a result of an increase in district heating demand. Waste disposed of, including intragroup disposals, amounted to 4,732 thousand tons (+3.7% compared to the same period of the previous year), thanks to the contribution of both energy recovery plants, in particular the Parona waste-to-energy plant, and material recovery plants such as the paper and bulky waste recycling plants. Economic figures Millions of euro 01.01.2024 12.31.2024 01.01.2023 12.31.2023 Change % 2024/2023 Revenues 1,540 1,458 82 5.6% Operating costs (743) (718) (25) 3.5% Labor costs (388) (365) (23) 6.3% Gross Operating Margin 409 375 34 9.1% % of Revenues 26.6% 25.7% - - Depreciation, amortization, provisions and write-downs (201) (169) (32) 18.9% Net Operating Result 208 206 2 1.0% % of Revenues 13.5% 14.1% - - Capital Expenditure 256 214 42 19.6% FTE 6,902 6,703 199 3.0% Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Analysis of main sectors of activity A2A Report on Operations 2024 A2A 75 In 2024, the revenues of the Waste Business Unit amounted to 1,540 million euro (1,458 million euro as at December 31, 2023): the change is attributable to the increase in revenue from disposal, material recovery activities (paper sales), higher revenue from electricity, higher collection fees and non-recurring items. Operating costs amounted to 743 million euro, up 4% compared to December 31, 2023. Higher costs include the maintenance and purchase of materials of the waste-to-energy and biomass plants, higher maintenance costs of the vehicles and maintenance and for environmental services of the Collection segment. Labor costs stood at 388 million euro, up 23 million euro compared to 2023. This change is due for about 50% to an increase in FTE (6,902 units at December 31, 2024 compared to 6,703 FTE at December 31, 2023) both for changes in the scope (in particular the takeover of the Liguria area and absorbing resources for the management of Trezzo waste-to-energy plant) and for the hiring carried out to strengthen some Collection services and Treatment segment structures. The further change was substantially determined by the effects of the application of the national Urban Hygiene labor contract, increases related to bonuses and remuneration policy measures, and increases in other labor costs, particularly related to disputes with employees. The Gross Operating Margin of the Waste Business Unit came to 409 million euro (375 million euro at December 31, 2023), an increase of 34 million euro compared to the previous year. Net of non-recurring components recorded (13 million euro in 2024, 3 million euro in 2023), Ordinary Gross Operating Margin stands at 396 million euro (372 million euro at December 31, 2023). This result was determined by: • +27 million euro relative to Waste Treatment Plants, mainly due to higher margins linked to the growth in volumes disposed of and relative prices, as well as to the contribution of the quantities of electricity and heat produced by waste-to-energy plants (particularly WTE Parona), to the greater productions from the biomass plant of Sant’Agata di Puglia, partly offset by the higher operating costs; • -3 million euro relating to the Collection segment: the result is attributable on the one hand to the higher fees mainly for the new municipalities acquired and on the other to the increase in personnel costs - both for contractual and salary increases and following the award of the new tenders - and other operating costs. Depreciation, amortization, provisions and write-downs amounted to 201 million euro (169 million euro in 2023). The change is the effect of higher depreciation and amortization of +19 million euro related to investments made in 2024, write-downs of fixed assets made during the year under review related to the non-implementation of certain plant construction projects due to the lack of authorizations (+6 million euro), higher provisions related to the adjustment of the provision for waste removal risks, post-mortem and decommissioning provisions following the updating of discount rates (+5 million euro) and higher provisions for bad debts (+2 million euro). As a result of these changes, Net Operating Income totaled 208 million euro (206 million euro at December 31, 2023). Investments in 2024 amounted to 256 million euro (214 million euro in 2023) and concerned: • development work amounting to 104 million euro, of which 57 million euro related to waste-to- energy plants, 5 million euro to OFMSW plants, 21 million euro to material recovery plants, 18 million euro to other treatment plants and 3 million euro to the Collection department; • 152 million in maintenance work on waste-to-energy plants (66 million euro), waste treatment plants (27 million euro) and the collection segment (59 million euro). 76 A2A Report on Operations 2024 Analysis of main sectors of activity 4.6 Smart Infrastructures Business Unit 660 mln € Capex 631 million in 2023 (+4.6%) 552 mln € Ebitda +3,4% compared to 2023 1,726 mln € RAB Gas (+7.9% vs 2023) 1,089 mln € RAB Electricity (+14.3% vs 2023) 542 mln € RAB Water Services (+13.6% vs 2023) 3,078 GWht Heat and cold sales (+9.6% vs 2023) The following is a summary of the main quantitative and economic data relating to the Smart Infrastructures Business Unit: Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Analysis of main sectors of activity A2A Report on Operations 2024 A2A 77 Operating figures Gas 12.31.2024 12.31.2023 Change % 2024/2023 Electricity distributed (GWh) 11,030 10,882 148 1.4% Gas distributed (Mcm) 2,613 2,503 110 4.4% Water distributed (Mcm) 66 68 (2) (2.9%) RAB Electricity (M€)* 1,089 953 136 14.3% RAB Gas (M€)* 1,726 1,599 127 7.9 % RAB Water (M€)* 542 477 65 13.6% * Provisional figures, underlying the calculation of allowed revenues for the period. In 2024, the RAB for electricity, gas and water services were up by 14.3%, 7.9% and 13.6%, respectively, thanks to increased investments. Heat GWht 12.31.2024 12.31.2023 Change % 2024/2023 Sources Plants in: 1,396 1,269 127 10.0% \- Lamarmora 188 179 9 5.0% \- Famagosta 49 44 5 11.4% \- Tecnocity 76 62 14 22.6% \- Canavese 111 114 (3) (2.6%) \- Linate and Malpensa 231 228 3 1.3% \- Other plants 741 642 99 15.4% Purchases from: 2,117 1,911 206 10.8% \- From third parties 476 387 89 23.0% \- From other Business Units 1,641 1,524 117 7.7 % Total sources 3,513 3,180 333 10.5% Uses Heat sales to end customers 2,934 2,667 267 10.0% Distribution losses 579 513 66 12.9% Total uses 3,513 3,180 333 10.5% Cold sales 144 141 3 2.1% Electricity from cogeneration 635 595 40 6.7% The figures only refer to district heating and include cold sales. Purchases include the quantities of heat purchased from the Waste Business Unit. The Business Unit’s sales in 2024 stood at 2,934 GWhtc of heat volumes and at 144 GWhtf of cold volumes, recording, thanks to effective commercial development actions and the contribution of the company Agesp Energia acquired by the Acinque Group in January 2024, an increase of 10% and 2% respectively. The contribution of Agesp Energia is also evident in relation to the production of electricity, which recorded an increase of 6.7% compared to the previous year. 78 A2A Report on Operations 2024 Analysis of main sectors of activity Economic figures Millions of euro 12.31.2024 12.31.2023 Change % 2024/2023 Revenues 1,492 1,552 (60) (3.9%) Operating costs (810) (904) 94 (10.4%) Labor costs (130) (114) (16) 14.0% Gross Operating Margin 552 534 18 3.4% % of Revenues 37.0 % 34.4% - - Depreciation, amortization, provisions and write-downs (292) (304) 12 (3.9%) Net Operating Result 260 230 30 13.0% % of Revenues 17.4% 14.8% - - Capital Expenditure 660 631 29 4.6% FTE 3,267 3,147 120 3.8% Revenues of the Smart Infrastructures Business Unit amounted to 1,492 million euro (1,552 million euro at December 31, 2023). The change is related to lower revenues in the district heating segment due to the drop in unit prices and the contraction of energy-saving activities (Superbonus), partially offset by higher revenues allowed for regulatory purposes and higher revenues from the sale of white certificates. Operating costs stood at 810 million euro (904 million euro in 2023). The change is attributable to lower costs for activities related to the Superbonus and the decrease in raw material procurement costs (gas and heat) and in energy costs in general. Labor costs amounted to 130 million euro (114 million euro in the previous year). About 60% of the change is attributable to salary increases for the renewal of the CCNL for Electricity and Gas Water and for merit recognition, and the remainder to increased resources: in 2024, FTE amounted to 3,267, with a change of 120 FTE related to recruitment in the second half of 2023 and the first months of 2024. The Gross Operating Margin of the Smart Infrastructures Business Unit in 2024 was 552 million euro (534 million euro at December 31, 2023). Net of non-recurring items (-3 million euro in 2024; +19 million euro in the previous year), the Business Unit’s Ordinary EBITDA came to 555 million euro, up 40 million euro compared to 2023. The change in margins was mainly driven by: • +38 million euro related to the electricity and gas distribution networks for the increase in revenues allowed for regulatory purposes following the updating of the rate of return on invested capital by ARERA (Energy, Networks and Environment Regulatory Authority) for the year 2024, partly offset by higher operating costs and lower connection fees; • +11 million euro related to the water cycle, attributable to an increase in regulated revenues and a decrease in electricity costs; • -15 million euro related to the heat sector. The change is related to the decrease in the prices of electricity sold, the presence in 2023 of the subsidies under the Aid Decrees regarding tax credits for non-energy and non-gas-intensive companies, and the lower margins related to the Superbonus business. These negative effects were only partially offset by higher district heating volumes sold and revenues from the sale of white certificates recognized for the cogeneration plants of Tecnocity, Canavese and A2A Airport; Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Analysis of main sectors of activity A2A Report on Operations 2024 A2A 79 • +3 million euro related to Public Lighting due to the margin contribution of the new municipalities and lower operating costs; • +2 million euro related to Smart City due to higher revenues (Minnovo project start-up and projects for the Municipality of Monza) and lower operating costs; • +1 million euro related to E-Moving for higher electricity volumes delivered. Depreciation, amortization, provisions and write-downs equaled 292 million euro (304 million euro as at December 31, 2023). The change is attributable to higher depreciation and amortization (+7 million euro) for investments made in 2024, higher write-downs on fixed assets (+4 million euro), more than offset by lower provisions for risks (-16 million euro) and lower provisions for bad debts (-7 million euro). As a result of the above changes, Net Operating Income amounted to 260 million euro (230 million euro at December 31, 2023). Investments in 2024 amounted to 660 million euro (631 million euro in 2023) and regarded: • 274 million euro for the electricity distribution segment: for the connection of new users, work on primary plants and secondary substations, the expansion of remote control, and the renovation of the medium- and low-voltage network; • 141 million euro for the gas distribution segment: for the connection of new users and the replacement of medium and low-pressure pipes; • 93 million euro for the integrated water cycle segment: for maintenance and development work carried out on the water transportation and distribution network and work and refurbishment of the sewerage networks and purification plants; • 111 million euro for the district heating and heat management segment; • 12 million euro for the public lighting segment for new projects; • 11 million euro in the E-Mobility sector for the installation of new recharging stations; • 18 million euro in the Smart City segment, mainly laying fiber optics, radio frequencies and data centers. 80 A2A Report on Operations 2024 Analysis of main sectors of activity 4.7 Corporate Economic figures Millions of euro 01.01.2024 12.31.2024 01.01.2023 12.31.2023 Change % 2024/2023 Revenues 353 337 16 4.7% Operating costs (238) (230) (8) 3.5% Labor costs (196) (173) (23) 13.3% Gross Operating Margin (81) (66) (15) 22.7% % of Revenues (22.9%) (19.6%) - - Depreciation, amortization, provisions and write-downs (80) (74) (6) 8.1% Net Operating Result (161) (140) (21) 15.0% % of Revenues (45.6%) (41.5%) - - Capital Expenditure 112 110 2 1.8% FTE 1,871 1,730 141 8.2% Operating costs increased by 8 million euro mainly due to higher expenses for the digitization of the Group and higher charges for cleaning and building maintenance. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Analysis of main sectors of activity A2A Report on Operations 2024 A2A 81 Labor costs increased by 23 million euro. More than 40% of this change was due to an increase in the number of FTEs (+141 units compared to the previous year, +8.2%) due to the additions made to strengthen certain business areas such as Digital, AFC and People & Transformation, in line with the Group’s development needs and objectives. The remainder of the increase is attributable to the effects of salary increases (contractual renewals, bonuses and remuneration policy actions), higher charges for mobility and exit incentives, and other indirect labor costs (mainly welfare projects and welfare and recreational contributions). The Gross Operating Margin, corresponding to the Corporate structure costs not charged back to the various Group companies in the period under review, amounted to -81 million euro (-66 million in 2023). Net of non-recurring items (-14 million euro in 2024), the Corporate EBITDA came to -67 million euro, down 1 million euro compared to 2023. The negative change in margins is attributable to higher costs not charged back compared to the previous year. Depreciation, amortization, provisions and write-downs amounted to 80 million euro (74 million euro at December 31, 2023), an increase of 6 million euro compared to the previous year. The change is attributable to higher depreciation and amortization (+12 million euro) for investments made in 2024, and higher write-downs of fixed assets in the amount of 1 million euro, partly offset by lower provisions related to loan loss provisions (+7 million euro). After depreciation, amortization, provisions and write-downs there was a Net operating loss of 161 million euro (a net operating loss of 140 million euro at December 31, 2023). Capital expenditure in 2024 totaled 112 million euro (110 million euro in 2023) and related mainly to work on information systems (63 million euro), work on buildings (40 million euro) and investments in IT security (6 million euro). 5 Sustainability Statement Report on Operations 2024 84 A2A Report on Operations 2024 Sustainability Statement Table 1 [56, AR19] Table of contents Disclosure Requirement Reference ESRS 2 General disclosures BP-1 – General basis for preparation of sustainability statements Page 88 BP-2 – Disclosures in relation to specific circumstances Page 88 GOV-1 – The role of the administrative, management and supervisory bodies Page 89 GOV-2 – Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies Page 95 GOV-3 – Integration of sustainability-related performance in incentive schemes Page 95 GOV-4 – Statement on due diligence Page 96 GOV-5 – Risk management and internal controls over sustainability reporting Page 99 SBM-1 – Strategy, business model and value chain Page 100 SBM-2 – Interests and views of stakeholders Page 112 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model Page 116 IRO-1 – Description of the process to identify and assess material impacts, risks and opportunities Page 115 IRO-2 – Disclosure requirements in ESRS covered by the undertaking's sustainability statement Page 140 Environmental disclosure European Taxonomy Page 156 E1 Climate change ESRS 2 GOV-3 – Integration of sustainability-related performance in incentive schemes Page 95 E1-1 – Transition plan for climate change mitigation Page 201 ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model Page 203 ESRS 2 IRO-1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities Page 128 E1-2 – Policies related to climate change mitigation and adaptation Page 210 E1-3 – Actions and resources in relation to climate change policies Page 211 E1-4 – Targets related to climate change mitigation and adaptation Page 213 E1-5 – Energy consumption and mix Page 217 E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions Page 218 E1-7 – GHG removals and GHG mitigation projects financed through carbon credits Page 226 E1-8 – Internal carbon pricing Page 226 E2 Pollution ESRS 2 IRO-1 – Description of the processes to identify and assess material Pollution-related impacts, risks and opportunities Page 136 E2-1 – Policies related to Pollution Page 229 E2-2 – Actions and resources related to Pollution Page 229 E2-3 – Targets related to Pollution Page 231 E2-4 – Pollution of air, water and soil Page 231 E2-6 – Anticipated financial effects from Pollution-related impacts, risks and opportunities Page 233 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 85 Disclosure Requirement Reference E3 Water and marine resources ESRS 2 IRO-1 — Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities Page 136 E3-1 – Policies related to water and marine resources Page 236 E3-2 – Actions and resources related to water and marine resources Page 236 E3-3 – Targets related to water and marine resources Page 238 E3-4 – Water consumption Page 239 E4 Biodiversity and ecosystems E4-1 — Transition plan and consideration of biodiversity and ecosystems in strategy and business model Page 241 ESRS 2 IRO-1 — Description of processes to identify and assess material biodiversity and ecosystem- related impacts, risks and opportunities Page 137 ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model Page 241 E4-2 — Policies related to biodiversity and ecosystems Page 245 E4-3 — Actions and resources related to biodiversity and ecosystems Page 246 E4-4 — Targets related to biodiversity and ecosystems Page 248 E4-5 — Impact metrics related to biodiversity and ecosystems change Page 249 E5 Resource use and circular economy ESRS 2 IRO-1 — Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities Page 139 E5-1 — Policies related to resource use and circular economy Page 252 E5-2 — Actions and resources related to resource use and circular economy Page 252 E5-3 – Targets related to resource use and circular economy Page 255 E5-4 – Resource inflows Page 257 E5-5 – Resource outflows Page 258 Social disclosure S1 Own workforce ESRS 2 SBM-2 – Interests and views of stakeholders Page 112 ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model Page 263 S1-1 – Policies related to own workforce Page 264 S1-2 – Processes for engaging with own workforce and workers' representatives about impacts Page 270 S1-3 – Processes to remediate negative impacts and channels for own workforce to raise concerns Page 273 S1-4 – Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions Page 275 S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities Page 275 S1-6 – Characteristics of the undertaking's employees Page 283 S1-7 – Characteristics of non-employees in the undertaking's own workforce Page 287 S1-8 – Collective bargaining coverage and social dialogue Page 288 S1-9 – Diversity metrics Page 289 S1-10 – Adequate wages Page 290 S1-11 – Social protection Page 290 86 A2A Report on Operations 2024 Sustainability Statement Disclosure Requirement Reference S1-12 – Persons with disabilities Page 290 S1-13 – Training and skills development metrics Page 291 S1-14 – Health and safety metrics Page 292 S1-15 – Work-life balance metrics Page 294 S1-16 – Remuneration metrics (pay gap and total remuneration) Page 294 S1-17 – Incidents, complaints and severe human rights impacts Page 295 S2 Workers in the value chain ESRS 2 SBM-2 – Interests and views of stakeholders Page 112 ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model Page 298 S3-1 – Policies related to affected communities Page 299 S3-2 – Processes for engaging with affected communities about impacts Page 300 S3-3 – Processes to remediate negative impacts and channels for affected communities to raise concerns Page 301 S3-4 – Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions Page 302 S3-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities Page 302 S3 Affected communities ESRS 2 SBM-2 – Interests and views of stakeholders Page 112 ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model Page 310 S3-1 – Policies related to affected communities Page 310 S3-2 – Processes for engaging with affected communities about impacts Page 311 S3-3 – Processes to remediate negative impacts and channels for affected communities to raise concerns Page 312 S3-4 – Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions Page 313 S3-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities Page 313 S4 Consumers and end-users ESRS 2 SBM-2 – Interests and views of stakeholders Page 112 ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with the strategy and business model Page 328 S4-1 – Policies related to consumers and end-users Page 329 S4-2 – Processes for engaging with consumers and end-users about impacts Page 330 S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns Page 331 S4-4 – Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions Page 334 S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities Page 334 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 87 Disclosure Requirement Reference Information on Governance G1 Business conduct ESRS 2 GOV-1 – The role of the administrative, supervisory and management bodies Page 89 ESRS 2 IRO-1 – Description of processes to identify and assess relevant impacts, risks and opportunities Page 111 G1-1 – Business conduct policies and corporate culture Page 340 G1-2 – Management of relationships with suppliers Page 346 G1-3 – Prevention and detection of corruption and bribery Page 343 G1-4 – Incidents of corruption or bribery Page 343 G1-5 – Political influence and lobbying activities Page 344 G1-6 – Payment practices Page 348 88 A2A Report on Operations 2024 Sustainability Statement Basis for preparation ESRS 2 BP-1 General basis for preparation of sustainability statements [5a, 5b] This Sustainability Statement, drawn up in accordance with Legislative Decree 125 of 6 September 2024 and the European Sustainability Reporting Standards (ESRS), prepared exclusively at Group level, includes all companies consolidated on a line-by- line basis in the Consolidated Financial Statements. Therefore, the 2024 data also include information from the Acinque Group, which also prepares its own individual Sustainability Statement, as it is obliged to do so under Legislative Decree 125/2024\. For the company Duereti, which entered the scope of consolidation on 31/12/2024, the metrics relating to the characteristics of employees and non- employee workers (disclosure requirements S1-6 and S1-7), collective bargaining coverage and social dialogue (disclosure requirement S1-8), diversity (disclosure requirement S1-9) and persons with disabilities (disclosure requirement S1-12) were also included. It is also noted that the plants – owned or leased – are consolidated 100% if they are included in the assets of the consolidated companies. In this sense, the activity data of the Acerra Waste-to-Energy Plant, the Caivano plant and the Scandale Thermoelectric Power Plant are not considered, although their emission data are taken into account in the related Scope 3 categories. The Group’s jointly owned material plants are consolidated proportionally. According to this principle, for environmental data, the Mincio thermoelectric plant was 45% consolidated. An analysis was carried out to determine whether the group had any operational control over affiliated and associated companies, the result of which was negative, so the data and information of these companies were not included in the sustainability reporting. [5c] The information presented in the Sustainability Statement reflects what emerged from the double materiality assessment, therefore the impacts, risks and opportunities 5.1 General information that emerged as relevant. The evaluations were conducted both in consideration of the Group’s direct operations and in relation to the various value chains in which A2A operates, in addition to its business relationships. For more information on the materiality assessment and the identified IROs, please refer to the section “The double materiality assessment” on page159. In this regard, it is specified that the sections on policies, actions, targets and metrics dealt with in this document specify the level of coverage also in relation to the Group’s value chains. [5d] The Group shall not omit any information corresponding to intellectual property, know-how or innovation results, nor [5e] any information concerning upcoming developments or matters under negotiation, pursuant to Article 19a, paragraph 3, and Article 29a, paragraph 3, of Directive 2013/34/EU. ESRS 2 BP-2 Disclosures in relation to specific circumstances Time horizons [9a, 9b] The definition of time horizons adopted by the A2A Group and the application of these definitions reflects what is defined in ESRS 1: • short term: budget year (2025); • medium term: up to 5 years from the end of the short term; • long term: over five years. Value chain estimation [10a] This document does not report value chain metrics estimated on the basis of indirect sources. [10d] Also within the scope of Scope 3 emissions calculation, the Group aims to monitor and reduce greenhouse gas emissions throughout the supply chain by actively involving suppliers. In order to collect and monitor the suppliers’ Scope 3 emissions, the Group uses the EcoVadis platform, which is used by the Group both for the ESG assessment of partners/ suppliers and as a repository of related emission data. Suppliers are asked to report their Scope 1, 2 and 3 emissions and their intensity. In this Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 89 Governance ESRS 2 GOV-1 The role of the administrative, management and supervisory bodies [5a, 5b] The Group’s governance system consists of a Board of Directors and a Board of Statutory Auditors appointed by the Shareholders’ Meeting. The Board of Directors has the broadest powers for the ordinary and extraordinary management of the Company, while the Board of Statutory Auditors performs supervisory functions. In addition, the current Board of Directors has resolved to set up four Committees from among its members. In composing the Committees, the Board of Directors has taken into account the independence requirements and professional characteristics of the Directors, so that each Committee is made up of members whose competence and professionalism are adequate and valued with respect to the tasks assigned to the Committee itself. The Control and Risk, Remuneration and Appointments Committee and the ESG and Territory Relations Committee mainly have a proposal-making function vis- à-vis the Board of Directors, while the Related Parties Committee is in charge of performing the functions as stated in the relevant Consob regulations and in the specific procedure regulating all related party transactions. respect, the dedicated platform allows A2A to structure the emission calculation, while tracking and monitoring objectives and improvements undertaken by the suppliers. This activity has not yet been integrated into the carbon footprint calculation process, as the data perimeter is not complete. Sources of estimation and outcome uncertainty [11a, 11bi, 11bii] The possible causes of uncertainty relating to quantitative metrics and/or monetary amounts presented in the Sustainability Statement are explained in detail in the relevant section. Changes and errors in preparation or presentation of sustainability information [13a, 14a] The changes in preparation and presentation of the metrics included in this document are detailed in the reference section, in particular: • [13b, 13c, 14c] With reference to the disclosure obligation E1-6 DP 44 and DP 52, the 2023 financial year has been adjusted by integrating GHG emissions related to distribution losses. Disclosure required by other regulations or by generally accepted sustainability reporting provisions [15] The Group also reports a selection of entity- specific indicators, representative of specific IROs considered relevant. Specifically, the reference perimeter includes the indicators related to the Sustainability Plan and the Group’s Strategic Plan. Incorporation by reference [16] The information that has been reported by reference and the Disclosure Requirement by reference are shown below: • ESRS 2 IRO 1 DP 53c-iii • ESRS 2 SBM-1 DP 40c 90 A2A Report on Operations 2024 Sustainability Statement In particular, on 28 April 2023, the Shareholders’ Meeting has used the list vote mechanism to appoint the current Board of Directors (BoD) consisting of 12 members in office for three financial years, as indicated in the table below: Table 2 [21a] Members of the Board of Directors Role Name Year of birth Executive (E) – Non-Executive (NE) Man/ Woman Independence code Independence CFA Control and Risk Committee Remuneration and Appointments Committee ESG and Territory Relations Committee Chair Roberto Tas ca 1962 E M C Vice-Chair Giovanni Comboni 1957 NE M M CEO/General Manager Renato Mazzoncini 1968 E M Director Fabio Lavini 1954 NE M M Director Maria Grazia Speranza 1957 NE W M Director Maria Elisa D’Amico 1965 NE W Director Elisabetta Cristiana Bombana 1969 NE W M Director Mario Gualtiero Francesco Motta 1970 NE M M Director Elisabetta Pistis 1978 NE W M M Director Alessandro Zunino 1967 NE M C Director Susanna Dorigoni 1968 NE W C Director Vincenzo Cariello 1965 NE M M [21d] In the Board of Directors, the female component, at 42% of its members, is in line with the Corporate Governance Code, while the percentage of [21e] members who are independent is approximately 67%. There are two members with executive roles. [21b] The Group reports and notes the absence of employee representatives within the administration, management and control bodies. [20c, 21c] For the purposes of assessing the Board’s skills, the directors were offered a self- assessment questionnaire, the results of which are reported below. 83% 67% IT 58% 58% 50% 42% 42% 33% 17% 92% 92% Energy Communication Sevices Financials Real Estate Materials Consumer Discretionary Health Care Consumer Staples Industrials Utilities 3.25 Economic 3.17 Technical 3.42 Business Awareness 3.67 ESG 2.92 Legal 3.33 Institutional Compliance 3.92 Climate Change Average values identified on a scale of 1 (not at all) to 5 (very much) Figur 1 Sector expertise Figur 2 Soft skills Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 91 [22b] During the 2024 financial year, the ESG and Territory Relations Committee carried out its propositional and advisory activities with regard to, inter alia, the development of the Sustainability Development plan through: (i) promotion of a strategy that includes sustainability into business processes, in order to ensure the creation of value over time for the shareholders and all other stakeholders; (ii) monitoring of the Sustainability Plan, which sets out the commitments and objectives, also of a quantitative nature, for the advancement of the Group’s economic, environmental and social commitments and the definition of ESG targets integrated into the Group’s Strategic Plan; (iii) preparation of the 2023 Integrated Report for the purposes of non-financial disclosure (pursuant to Directive 2013/34/ EU and Legislative Decree 254/16) and the Sustainability Reports on a territory basis and preparatory activities for the purposes of aligning the Report with the requests of the Corporate Sustainability Reporting Directive (CSRD), in force from the reporting year 2024; [20b, 23, 23a, 23b, 5 G1] On a regular basis, the Group’s Board of Directors and management receive training and updates on sustainability issues that have the greatest impact on the organisation. By way of example, during 2024, training sessions were delivered to all Board members and the CEO’s direct reports about the regulatory changes introduced by the CSRD and the related ESRS Standards, highlighting not only the new reporting requirements, but also delving technically into the new requirements introduced by the European Directive. The activities described have strengthened the expertise of the Board of Directors and of management in monitoring and assessing the sustainability impacts, risks and opportunities that are most significant for the organisation, including all information relating to the disclosures that are subject to reporting. [22a] Material impacts, risks and opportunities (and related issues) that emerged from the double materiality assessment conducted in 2024 were approved by the Board of Directors on 19 December 2024, after informing the ESG and Local Relations and Control and Risk Committees, responsible for supervising this process. Table 3 Sector expertise - individual evaluations Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials IT Communication Services Utilities Real Estate Roberto Tasca ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Giovanni Comboni ✔ ✔ ✔ ✔ ✔ Renato Mazzoncini ✔ ✔ ✔ ✔ ✔ Elisabetta Bombana ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Vincenzo Cariello ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Maria Elisa D’Amico ✔ ✔ ✔ ✔ ✔ ✔ ✔ Susanna Dorigoni ✔ ✔ ✔ ✔ ✔ Fabio Lavini ✔ ✔ ✔ ✔ ✔ Mario Motta ✔ ✔ ✔ ✔ Elisabetta Pistis ✔ ✔ Maria Grazia Speranza ✔ ✔ ✔ ✔ ✔ ✔ ✔ Alessandro Zunino ✔ ✔ ✔ ✔ ✔ 92 A2A Report on Operations 2024 Sustainability Statement (iv) the material impacts, risks and opportunities (and related issues) arising from the double materiality assessment conducted in 2024. The Board of Statutory Auditors, as part of the performance of the functions assigned to it, has supervised compliance with the provisions set forth in Legislative Decree no. 254/2016 with particular reference to both the drafting process and the contents of the 2023 Integrated Financial Statement for the purposes of non- financial disclosure prepared by the Company. [22c] Group leadership plays a relevant role in processes to define any controls and procedures to monitor and manage relevant impacts, risks and opportunities. In particular, the assessment of the impacts generated by the Group, presented to the ESG and Territory Relations Committee annually, analyses the list of identified impacts and the relative assessment provided by the Group’s internal functions and by the stakeholders. The Committee has the power to intervene on the results obtained, in order to understand whether what emerged is actually in line with the Group’s characteristics. Finally, significant impacts are approved by the parent company’s Board of Directors. Instead, the role of managing them is delegated to specific management positions depending on the nature of the impact. With regard to the assessment of climate-related risks and opportunities, which derives directly from the Group’s ERM model, it is presented to the Audit and Risk Committee, which plays a similar role as the ESG and Territory Relations Committee. It should be noted that the A2A Group has an Internal Control and Risk Management System (SCIGR - Sistema di Controllo Interno e di Gestione dei Rischi). Enterprise Risk Management Process in the A2A Group [22c] The A2A Group has an Internal Control and Risk Management System (SCIGR), consisting of the set of rules, procedures and organisational structures aimed at allowing the identification, measurement, management and monitoring of the main risks to which the A2A Group is exposed. The SCIGR is based on the articulation of controls on three levels and establishes the control activities at each operational level, identifying tasks and responsibilities, in particular in the phases of setting up and defining the control system, supervising and (iv) the definition and assessment of material topics from a double materiality perspective, as required by the new European Directive (CSRD); (v) the dissemination of the culture of sustainability among employees, citizens, schools and, more generally, stakeholders; (vi) the implementation and promotion of structured methods of discussion with the territories in which the Group operates, also through the creation of initiatives involving all stakeholders (Multi-stakeholder Forum or Listening Forum); (vii) the implementation and monitoring of the proposed actions during stakeholder involvement; (viii) the analysis of the evidence emerging from the assessments of the ethical rating agencies; (ix) the analysis of regulatory developments on ESG issues at European and Italian level; (x) the definition of the Climate Transition Plans of the Group’s Business Units. After preliminary investigation by the ESG and Territory Relations and Control and Risk Committees, material impacts, risks and opportunities (and related issues) arising from the double materiality assessment conducted in 2024 were submitted to the Board of Directors for approval. The Remuneration and Appointments Committee has collaborated with the ESG and Territory Relations Committee in defining sustainability objectives in the MBO system. The Board of Directors – which, in line with the provisions of the Corporate Governance Code, guides the Company in pursuit of its sustainable success – has approved: (i) the business plan of the Company and the group it leads, also based on the analysis of the issues relevant to the generation of long- term value carried out with the assistance of the ESG and Local Communities Committee; (ii) the Group’s Sustainability Plan; (iii) the 2023 Integrated Report for the purposes of non-financial disclosure (pursuant to Directive 2013/34/EU and Legislative Decree 254/16); Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 93 intervening and correcting any irregularities found, also with the aim of ensuring coordination among the various subjects involved in the SCIGR. These activities consist of: • line or first-tier control, consisting of the set of control activities and specific risk treatment actions that the individual functions/ organisational structures or Group companies perform on the processes under their responsibility in order to ensure the proper execution of operations; management and operating structures are therefore primarily responsible for the internal control and risk management process; • second-tier control, entrusted to the corporate functions dedicated to managing compliance and governance models related to specific corporate risks (e.g. Risk Management, Legal, Compliance, Financial Reporting Manager, specialised compliance functions in the areas of Environment, Health, Safety and Quality, Taxation, Security, Regulatory Affairs, Sustainability) in order to ensure the efficiency and effectiveness of operations, adequate risk control, prudent conduct of business, reliability of information, compliance with laws, regulations and internal procedures; • third-tier control, entrusted to the Internal Audit function, which ensures independence in assessing the suitability and adequacy of the SCIGR, also by verifying line controls and second-tier control activities. Subsidiaries are required to establish and maintain an adequate and functioning Internal Control and Risk Management System in compliance with the management and coordination of A2A SpA and the Guidelines of the A2A Group. The roles and responsibilities most involved in the monitoring, management and supervision of risks are described in more detail below: • The Board of Directors plays a role in guiding and evaluating the adequacy of the Internal Control and Risk Management System and identifies a Control and Risk Committee from among its members, with the task of supporting the Board’s evaluations and decisions relating to the SCIGR, as well as those relating to the approval of periodic financial and non-financial reports. Furthermore, the Board of Directors identifies the Chief Executive Officer as the Director in charge of establishing and maintaining the SCIGR; • The Control and Risk Committee is tasked with assisting the Board of Directors and, as far as it is competent, the Chair and the CEO of the Company, with regard to assessments and decisions concerning the internal audit and risk management (SCIGR) system and the approval of periodic financial and non-financial reports. The Risk Control Committee periodically reviews all risks to which the A2A Group is exposed, including climate, environmental, social and governance risks; • The Chief Executive Officer is entrusted by the Board of Directors with the establishment and maintenance of the SCIGR and, in the performance of his duties, among other activities, he is responsible for identifying the main corporate risks, taking into account the characteristics of the activities carried out by A2A SpA and its subsidiaries, and periodically submits them to the Control and Risk Committee and to the Board of Directors for review; • The Head of the Group Risk Management function supports the Chief Executive Officer in the activities of identifying, assessing, monitoring, prioritising and reporting the main risks to which the A2A Group is exposed, with particular reference - among others - to: \- designing, managing and developing the Group’s Enterprise Risk Management model; \- coordinating and monitoring the development and implementation, by the competent Organisational Structures, of frameworks, tools and operating processes designed to ensure adequate risk management and compliance information flows; \- ensuring adequate and concise reporting flows on risk to the Chief Executive Officer, the Control and Risk Committee and the relevant corporate bodies, based on the Risk Assessment processes in place; \- promoting a managerial culture on the subject of risk. The Group Risk Management structure reports to the head of the Strategy and Growth organisational structure, which in turn reports to the General Manager of A2A SpA. 94 A2A Report on Operations 2024 Sustainability Statement economic-financial and reputational aspects (the figure below shows the A2A Group’s Risk Model). The risk profiles of the Group and its subsidiaries are assessed every six months by the Risk Control Committee and the Board of Directors of the parent company, while those of the Companies with Significant Strategic Value (SRVS) are assessed by their respective Boards of Directors. The risk measurement process, coordinated by Enterprise Risk Management, identifies critical issues and mitigation plans through interviews with Risk Owners, extending to the entire A2A Group. The Acinque Group has its own Risk Management process, the results of which have been integrated into this sustainability report. Every six months, the risks to which the A2A Group is exposed are monitored and measured, according to a process and methodology formalised in the “Enterprise Risk Management Policy”. The periodic assessment, coordinated by the Enterprise Risk Management organisational structure, is extended to the entire A2A Group, i.e. the Business Units, subsidiaries and staff Organisational Structures of the parent company, and is carried out by means of interviews with the Risk Owners, who are usually identified as the Chief Executive Officers of the companies and/or staff Organisational Structures. The ERM process takes into account all the possible risks to which the A2A Group is exposed, including climatic, environmental, social and governance risks, and assesses their impact on the company, with reference to both Figur 3 The A2A Group’s risk model • Climatic-physical changes • Climatic- transitional changes • Natural events • Commodity • Interest rate • Exchange rate • Liquidity • Counterparty • Cost of capitals • Legislative and regulatory amendments • Macroeconomic context • Macroeconomic context • Fiscal and tax • Legal disputes • Strategic initiatives and business plan • Capital Expenditure/ Divestments • Governance • Innovation Type Type Category Category Drivers Drivers Natural events Financial Competitive- regulatory area Direction • Environmental • Business interruption • Service level to customers • Environmental charges • Credit • Procurement • Security • Compliance • Internal skills • Health and safety • Information infrastructure • Integrity and security Operational Human Resources Information Technology Internal External Strategic Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 95 ESG perspective. The processes described strengthen the management of issues that are material to the Group. For more information, please refer to the disclosure requirements on Double Materiality IRO-1 and SBM-3 in this chapter. [26b, 26c] As part of the definition of the Strategic Plan, the Sustainability Development function is required to update the assessment of the main sustainability trends that may affect the Group and its businesses. In this sense, the function analyses the assessments made for the materiality assessment and the results thereof, in concert with other Group functions, and in particular the ERM function, in order to actualise the considerations and include them as drivers for defining the Strategic Plan guidelines, together with scenario analyses and sector benchmarks. This study is then brought, together with the Strategy function, to the attention of the CEO who evaluates the results and defines which ESG issues should be addressed in the long-term strategy. The ESG objectives defined in the Strategic Plan are presented, before being approved by the Board of Directors, to the ESG and Territory Relations Committee, which assesses their consistency with the identified guidelines. ESRS 2 GOV-3 & E1 ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes [29] All Group employees are strongly encouraged to take responsibility for achieving the medium and long-term objectives of the Strategic Plan, including those of sustainability, which are intrinsically linked thereto. This is also reflected in the Remuneration Policy approved in March 2024: starting from the Chief Executive Officer and cascading down to all his direct reports, also in 2024, ESG- related objectives have been set as part of the individual incentive schemes (MBO). [29e] The Remuneration Policy is adopted by the Board of Directors, following an investigation and on the proposal of the Remuneration and Appointments Committee, and is defined in line with the business strategy, with the governance model implemented and with the guidelines provided by the Corporate Governance Code of Listed Companies. [22d] The findings of the assessment of relevant impacts, risks and opportunities are also used when defining the targets of the Strategic Plan and the Sustainability Plan. During the year, periodic meetings of the Committees and the Board of Directors are scheduled to monitor the progress of the set out objectives and their state of advancement. Sustainability indicators are in fact an integral and qualified part of the Strategic Plan, and the process for defining and monitoring them, as well as for drafting the integrated document, involves all the Departments and the Group’s BUs. The objectives of the Strategic Plan and the Sustainability Plan are approved by the Group’s Board of Directors, after verifying that they cover A2A’s businesses and consider the impacts, risks and opportunities to which the Group is exposed. ESRS 2 GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies [26a] On a monthly basis, the ESG and Territory Relations Committee is informed by the Director of Communication, Sustainability and Regional Affairs, supported by the Sustainability Development function, on sustainability issues, including aspects related to the impacts generated by the Group on the environment and society. The meetings cover the progress towards the achievement of the Sustainability Plan objectives, the monitoring of the Group’s decarbonisation strategy and engagement activities with stakeholders on climate change and ecological transition issues, as well as specific activities carried out during the reporting period to enhance the Group’s ESG profile. The Chair of the ESG and Territory Relations Committee reports to the Board of Directors on the main topics discussed in the Committee prior to the Board meeting. The Managing Director also keeps the Board of Directors constantly informed about the progress of the implemented corporate strategy. On the other hand, the Audit and Risk Committee is informed on a half-yearly basis by the Enterprise Risk Management function about risks and opportunities that are relevant for the Group (i.e. that have a potential significant economic-financial or image impact) from an 96 A2A Report on Operations 2024 Sustainability Statement \- [29d] Sustainability, measured on indicators across the Group’s businesses (30%) For the CEO/GM, the % of the LTI amount allocated on the RAL is 35% of the RAL. [13 E1] It should be noted that, with reference to the current reporting period, there are no specific incentive schemes for the administration, management and control bodies related to greenhouse gas (GHG) emission reduction objectives, but it was present for some Strategic Directors. ESRS 2 GOV-4 Statement on due diligence [30, 32] In the context of preparing the Sustainability Statement, the Group has started a process of mapping information relating to its due diligence practices, while recognising that at the moment there is no structured process or formal policy explicitly and specifically dedicated to this area. The initiatives and activities listed in the following table contribute significantly to building a framework for managing the impacts that the Group causes or could cause in environmental, social and governance terms. The efforts undertaken are the foundation on which a more articulated strategy will be built in the future. [29a, 29b, 29c] In particular, ESG elements are reflected in: • MBO Plan 2024, which provides for remuneration elements linked to sustainability issues for top management. In particular: specific objectives related to the reduction of accidents, the development of strategic projects in the area of energy transition and the circular economy, and the improvement of DE&I indicators compared to the previous year (e.g. increase in the % of women managers; increase in the presence of women on the Boards of Directors of subsidiaries and investee companies; increase in the % of women hired). This plan affects the MBO remuneration of the General Manager (GM) by [29d] 23% and the MBO targets of the CEO and GM by 19%. • Long-term variable remuneration (LTI Plan 2023-2025) which provides, in support of the Strategic Plan guidelines, the Long-Term Incentive Plan includes a specific target on ESG issues (30% overall weight), articulated on specific goals related to decarbonisation processes, energy transition and circular economy The monetary incentive plan, which has a timeframe of 2023-2025, has the following objectives: \- 2023-2025 Operating Cash Flow of the A2A Group (weight 35%); \- A2A Total Shareholder Return (TSR) positioning compared to a panel of comparable Italian companies (35%) Table 4 Due Diligence Elements of Due Diligence Reference paragraphs and contextual information a) Embedding due diligence in the governance, strategy and business model As a basis for integrating responsibility in the respect of social and environmental aspects, the Group adopts policies of different nature, in particular: • Human Rights Policy; • Code of Ethics; • Environmental, health, safety and Quality Policy; • Responsible Procurement Policy. In addition, activities related to due diligence governance are integrated and made explicit in the following processes: • the role of the ESG and Territory Relations Committee and the impacts identified; • the management systems adopted by the Group (e.g. ISO 14001, ISO 45001, PdR 125, ISO 9001...) allow continuous monitoring of performance in the various areas and ensure that impacts are constantly assessed and proactively managed. This commitment enables the integration of sustainability goals into the corporate strategy. The structure of the management systems also allows the Group to compete in the various areas of due diligence; • considering the results of the Double Materiality process (which includes the identification of impacts, risks and opportunities), as a basis for possible adjustments to the business model. • ESRS 2 MDR-P • ESRS 2 IRO-1e SBM-3 • ESRS S1-1 • ESRS S3-4 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 97 Elements of Due Diligence Reference paragraphs and contextual information b) Engaging with stakeholders in all key steps of due diligence • Group Stakeholder Engagement Process: the structured programme of listening to and dialogue with local stakeholders as input for the creation of debates on the most relevant issues in order to develop concrete solutions in line with the Group’s Business Plan; • in the context of the assessment of IROs carried out in 2024 during the Double Materiality assessment process; • Human Rights Assessment, an analysis involving the evaluation of the Group’s main stakeholders impacted by the specific issues under investigation; • whistleblowing as a reporting channel accessible to all stakeholders; • the supplier approval process and the signing of the integrity agreement as a form of supplier engagement; • specific involvement processes with respect to the workforce, value chain workers, affected communities, consumers and end users. • ESRS 2 SBM-2 • ESRS 2 IRO-1e SBM-3 • ESRS 2 GOV-4 • G1-1 • G1-2 • S1-2, S2-2, S3-2, S4-2 c) Identifying and assessing negative impacts • during the Double materiality process, the Group assessed the relevant ESG impacts; • Human Rights Assessment, an analysis involving the timely evaluation of certain principles pertaining to human rights; • SA 8000 and the related reporting channel that allows employees to raise concerns in order to promote transparent communication between employees and management and understand the impacts of labour practices (scope limited to Group companies where SA 8000 is applied); • whistleblowing as a tool for receiving, assessing and handling reports of violations of the entity’s integrity; • dispute management process and the management of any measures ordered by the authorities; • the suppliers’ approval process is based on an in-depth analysis of the specific risks per sector and product category of the supplier in order to identify potential criticalities; • Sustainable Procurement project enabling the identification of specific ESG indicators within the Group’s procurement processes. • ESRS 2 IRO-1e SBM-3 • ESRS 2 GOV-4 • S1-1 and S1-3 • G1-1 • G1-2 • S4-4 d) Taking actions to address negative impacts • Human Rights Assessment, an analysis that reports on the Group’s levels of compliance with specific human rights principles; • whistleblowing: the tool provides that at the end of the investigation, if the conditions for filing the Report are not met, the Whistleblowing Committee informs the competent corporate bodies of the outcome of the investigations as regards: the adoption of measures and/or actions that in the specific case are necessary for the protection of the A2A Group Company, including the possible involvement of the competent authorities, even in a criminal case; the implementation of any improvement actions identified; the implementation of relevant management measures, including, if the conditions are met, disciplinary action. The Whistleblowing Committee shall provide timely feedback to the Whistleblower on the outcome of the investigation and on any measures taken; • Sustainable Procurement project with post-assessment rules applicable to certain suppliers, • specific actions aimed at the mitigation or prevention of negative impacts can be found within the specific sections of this document. • ESRS 2 GOV-4 • G1-1 • G1-2 e) Tracking the effectiveness of these efforts and communicating • whistleblowing: after analysing the reports received, the Whistleblowing Committee monitors the proper implementation of improvement actions (i.e. six-monthly reporting of the complaints received and managed); • sustainable Procurement project; • dispute management through joint conciliation. • G1-1 • S4-4 • E1-3, E2-2, E3-2, E4-3, E5-2 98 A2A Report on Operations 2024 Sustainability Statement Focus on the Assessment of human rights Human Rights are the inalienable rights of all human beings, i.e. the rights that must be granted to every person by the mere fact of belonging to the human race, irrespective of a person’s origins, affiliations or location. The A2A Group acknowledges and promotes the protection of dignity, liberty, and equality of mankind, the protection of labour and the freedom of unions, the protection of health, safety, the environment, the safeguarding of biodiversity, as well as the set of values and principles relating to circular and efficient use of resources and sustainable development. Since 2012, the Group participates in the Global Compact and has defined the principles of conduct regarding human rights in its Code of Ethics and Organisational Model 231/01\. In addition, A2A has adopted a Human Rights Policy, approved by the Board of Directors on 8 July 2021, to formally reaffirm the commitment of all the companies belonging to the Group in promoting and supporting all the values and principles affirmed by the International Human Rights Institutions and Conventions to which the A2A Group adheres. As further evidence of the Group’s commitment to promoting and guaranteeing the protection of human rights, A2A has carried out an assessment of respect for human rights, divided into the following three main phases: • analysis of internal sources, such as policies, procedures and other regulatory documents adopted by the Group, and external sources, such as international standards and frameworks; • involvement of corporate departments, in order to assess the Group’s level of human rights protection, both in terms of governance maturity and the internal practices put in place to monitor and mitigate the risk of human rights violations (e.g., policies, procedures, monitoring actions, etc.). • analysis of results, identification of gaps and definition of areas for improvement. The results of the assessment process show that, in light of the controls adopted by the A2A Group and of the context in which it operates, i.e., mainly in Italy, there are no potential significant risks. Although the Group has a medium-high level of human rights protection, A2A has nevertheless identified some areas for improvement in terms of monitoring actions and safeguards to be implemented, linked to certain areas of investigation. For example: • strengthening the already existing and structured stakeholder engagement process, with a focus on the social needs of the territory, in order to constantly increase cohesion with local communities; • implementing further solutions to reduce possible negative environmental impacts on the communities; • strengthening the process of listening to customers belonging to vulnerable groups, in order to better take into account their needs and expectations within corporate strategies; • monitoring national and international regulations in order to align its processes and controls with the highest standards of protection. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 99 and to identify the Group companies that contribute most to consolidated reporting; • a process of identifying the main risks associated with the sustainability information reporting process (key risks) and the key controls (control risks) to monitor the risks identified, represented in control matrices (Risk and Control Matrix) that describe, among other things, the risks and associated control activities for each Disclosure Requirement considered relevant for the purposes of the sustainability reporting process. [36c] Among the main potential reporting risks identified are inaccurate and incomplete data collection, errors in the calculation of indicators and non-alignment with ESRS requirements. It should be noted that risk-mitigating controls, namely Entity Level Controls and Process Level Controls, have been identified with reference to the defined scope; • a set of corporate procedures relevant to the preparation and dissemination of sustainability information; • [36d] process of continuous monitoring of the adequacy and effective application of company procedures through periodic verification of the design and effective operation of key controls (testing), with the definition of any corrective action and/or improvement plans, as well as the evaluation of Entity Level Controls with reference to the Sustainability Reporting process; • [36e] structured reporting process to the Board of Directors, also through the Control and Risks Committee and the ESG and Territory Relations Committee, which guarantees, among other things, adequate information about the results of monitoring activities carried out regarding relevant company procedures; • an internal certification process, by virtue of which the delegated administrative bodies of Group companies and the heads of organizational units/departments, for the areas under their responsibility, are required to submit declarations to the Financial Reporting Manager on the completeness and reliability of the relevant information flows and the proper functioning of the internal control system for the purposes of preparing Sustainability Reporting; • an external attestation process, based on the reports and declarations made by the Financial Reporting Manager pursuant to Article 154-bis of the Consolidated Finance Act as amended; ESRS 2 GOV-5 Risk management and internal controls over sustainability reporting [36a] In 2024, the A2A Group, as part of the project to comply with the CSRD directive and in response to the requirements of the European Sustainability Reporting Standards (ESRS), has defined the Internal Control System on Sustainability Reporting, consisting of the set of internal procedures and tools adopted by the Company to safeguard the reliability, accuracy and trustworthiness of the information produced, as well as the correct use of sustainability standards for the purposes of preparing the Sustainability Statement. The system was designed in accordance with the best practices in the field of internal control, and specifically in alignment with the Internal Control Integrated Framework (CoSO Framework SCIGR), which represents the benchmark against which each component of the A2A Group’s internal control system is established, maintained and evaluated. [36b] The risk analysis at process level is based on the ‘assertions’ or reporting principles defined by the ESRS standards, consistently with what is used in financial reporting, and in line with the guidelines provided in this context by the CoSO ICSR (Internal Control over Sustainability Reporting) Guide. Furthermore, the Internal Control over Sustainability Reporting operates in line with current regulations and corporate governance principles, and is fully integrated into the Group’s Internal Control and Risk Management System. In particular, the sustainability information control and reporting system was designed considering the following main components: • a process of defining the scope of the Group companies to be included in the evaluation of the control system on the sustainability information reporting process (scoping), determined in relation to the specific level of relevance, both in quantitative terms (for the level of significance of the potential impact on consolidated sustainability reporting) starting from the material sustainability issues identified through the double materiality assesssment, both in qualitative terms (taking into account the specific risks related to the business, the process or the issue/topic presented in the consolidated sustainability reporting). This assessment made it possible to classify the reported indicators into five risk levels (high, medium-high, medium, medium-low and low) 100 A2A Report on Operations 2024 Sustainability Statement A2A Group plants and services The Group operates almost exclusively in Italy, with the exception of the management of some wind and photovoltaic plants in Spain. In addition to its strong presence in the historical territory of Lombardy, the Group is an important player with a presence throughout the country. The geographical distribution of the Group is shown in the map on page 12. [40aii] Considering the wide range of services offered, the Group, [40aiii] with its 14,777 employees (of which 6 abroad and the remainder in Italy), interfaces with different types of customers and consumers, each of whom has different needs and requirements. With regard to the energy sector, the Market Business Unit addresses domestic customers, small and large companies and public bodies by managing and developing sales and after-sales activities for electricity and gas supplies, as well as products and services for energy efficiency and e-mobility, throughout Italy, with the aim of creating innovative and sustainable solutions. Well aware that the decarbonisation process requires the involvement of as wide an audience as possible, the Group has been committed to offering products and services that promote energy efficiency, making customers actively contribute to the country’s energy transition and ensuring the highest standards of sales and service quality. Municipalities, public bodies, resident citizens and companies are instead the main interlocutors of the Waste and Smart Infrastructures BUs as they provide essential services for the territory such as waste collection, electricity and gas distribution and the integrated water service, in addition to the new services developed by the companies A2A Smart City and A2A E-mobility. [40aiv] A2A’s business model aims to create sustainable and shared value over time for the company and for its reference community and, in particular, for each individual Italian region where the Group is present with its services. As a Life Company, the Group is geared towards improving the quality of life of citizens and businesses operating in its areas of competence, through the provision of essential services, guaranteed by the highest standards of quality and efficiency. • a training process within the internal control system on the sustainability reporting process of the actors involved in the activities related to the maintenance, development and monitoring of the Company’s sustainability information control and reporting model. The Company, through the Financial Reporting Manager, implements and executes the control and reporting system for sustainability information, and also plans and carries out periodic checks on the operational effectiveness of the controls in support of the certification process for sustainability reporting. The Financial Reporting Manager interacts and cooperates with the corporate bodies and the Group’s corporate organisational structures in order to ensure the correct and effective performance of the assignment received. The sustainability information control and reporting system of the Company and the Group involves an ongoing process of updating and maintenance aimed at ensuring the effectiveness and coordination of the main elements of the system, with respect to the organizational and governance evolution of the Company and the Group. Strategy ESRS 2 SBM-1 Strategy, business model and value chain The A2A Group is a Life Company because it is committed every day to providing the infrastructure and services that are necessary for life, while accelerating decarbonisation and protecting the environment and the areas in which it operates. Every day the Group deals with the environment, water and energy through a real model that promotes the circular use of resources. At A2A, every waste and scrap is transformed into a resource, giving it a new life not only in the form of new matter, but also new energy. Offering communities more and more clean and renewable energy generated by the sun, water and wind is one of the Group’s core objectives. [40ai] The business sectors in which the Group operates can be traced back to the Business Units (BUs) discussed on page 10. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 101 at the forefront of decarbonisation, with the construction of new renewable plants, entering into PPAs (Power Purchase Agreements) for the purchase and sale of energy, and with investments in electricity grids to support the electrification of consumption. In order to promote greater European autonomy with respect to the procurement of critical raw materials, the Group – building on its leadership in the Circular Economy – has planned to extend its material recovery activities to lithium batteries, designing the construction of a plant to create new “second raw material” to be reused in production processes. The transition initiated by the Group starts in cities, optimal ecosystems that make investments more effective both environmentally and economically, where more than 50% of CapEx is planned over the course of the Plan. Investments in the Circular Economy aim to reduce the national plant engineering gap and promote waste reuse through energy and material recovery. The Group will produce 2.7 TWh of electricity and 2.2 TWh of thermal energy from waste. In addition, in terms of material recovery, more than 1 million tonnes will be transformed into products and secondary raw materials by 2035. The development of district heating remains a key lever for the decarbonisation of urban contexts, with growth also due to the recovery of third-party industrial waste heat and new data centres. The Group’s commitment to the circular economy is completed by the investment of half a billion euros in the water cycle to reduce network losses and build new treatment plants. [40b] The Group’s activities generated a turnover of € 12,857 mln in 2024, in particular, the [40di] revenues of the fossil fuel activities (coal, oil and gas) are shown: Table 5 Revenues from fossil fuel sector u.m. 2024 Revenues from coal million € - Revenues from oil million € - Revenues from gas* million € 325.93 Total revenues of the fossil fuel sector million € 325.93 Revenues from economic activities aligned with the taxonomy related to fossil gas million € - * Revenues refer to the transport, distribution, trading and sale of gas, excluding intra-group revenues. The Strategic Plan [40g, 40e, 40f] The 2024-2035 Strategic Plan was approved by the Board of Directors of November 11, 2024, and it maintains the industrial growth objectives defined in the March 2024 Plan. The strategy remains focused on the ecological transition with its two strategic pillars, Circular Economy and Energy Transition, in line with the objectives identified by the Draghi Report for the relaunch of European competitiveness: innovation, decarbonisation and autonomy. The updated Plan confirms investments of € 22 billion, divided into € 6 billion for the Circular Economy and € 16 billion for the Energy Transition, which will make it possible to reach an EBITDA of € 3.3 billion and a net profit of over € 1 billion by 2035. The Group’s ambition over the Plan timeframe is to maintain key industrial targets, including € 3.4 billion of RAB in electricity grids, 5.7 GW of capacity from renewable sources and more than 7 million tonnes of waste treated by 2035. The Group’s industrial transformation process rests on the steady increase of annual investments from an average of € 0.8 billion in 2018-20 to an average of €1.8 billion in 2031-35, with a progressive focus on future- fit businesses. In an environment that poses challenges to operators in terms of commodity prices and the economic and regulatory framework, A2A interprets ecological transition as a central pillar of its competitive strategy. On the innovation front, the Group is an anchor investor in the “360 LIFE II” venture capital fund dedicated to ecological transition, with a target endowment of € 200 million. A2A is 102 A2A Report on Operations 2024 Sustainability Statement in the 2024-35 period. The Group is developing a Climate Transition Plan and a biodiversity protection action plan to be completed by 2025, along with programmes for promoting diversity, equity and inclusion in the workplace. While the € 10 million per year Parenting Plan continues, an extended stock option plan for Group employees will also be proposed at the next Shareholders’ Meeting. The three-year extended employee stock option Plan, which aims to promote engagement and a sense of belonging to the company, in addition to fostering financial training for employees, will include an initial no- expense share package, and the possibility of purchasing additional shares under favourable conditions. The Sustainability Plan [40e, 40f] In addition to the ESG objectives included in the Strategic Plan, the Group also is drawing up a detailed Sustainability Plan which is divided into 27 actions and 115 targets with the aim of defining reference KPIs for each business and corporate area in order to assess and direct operations towards the creation of sustainable value for A2A and its stakeholders. The Plan, like the Strategic Plan, is divided into the pillars of Circular and Energy Transition, without forgetting the enabling factors for a fair and just environmental transition: Digital, Governance and People Innovation. Below is a summary table of the Sustainability Plan targets, indicating the Business Unit, the relevant service (if applicable), and the impacted stakeholders. The Plan’s targets are then detailed within the sections related to the corresponding topics. A2A’s commitment to the Energy Transition is realised with a € 16 billion investment plan focused on electrification of consumption, development of the electricity distribution network and renewables. Thanks to the planned investments in distribution networks, in 2025 the electrical RAB will exceed the gas RAB, also thanks to the acquisition of assets in the provinces of Milan and Brescia planned for the end of 2024. In line with the Group’s future-fit growth guidelines, a possible sale of gas assets in the local areas of Brescia, Bergamo, Cremona, Pavia and Lodi is currently being finalised. With a target of 5.7 GW of installed renewable capacity by 2035 (from the current 2.6 GW by 31 December 2024), A2A continues to support the electrification of consumption and the development of RES: investments aim to make renewable energy more widespread, accessible and less sensitive to market volatility, also thanks to long-term agreements (PPAs) and incentive mechanisms. Finally, the Group expects to expand its customer base to over 5 million by 2035, of which 1 million with long-term contracts (PPA Mass Market). The commitment to ESG remains at the centre of the Strategic Plan, with concrete initiatives and measurable targets. The direct and indirect emission reduction targets managed by the Group are confirmed, with a target of a 65% reduction in the emission factor by 2035 compared to 2017 (Scope 1 and 2 at 226 gCO 2 / kWh by 2030) and Scope 3 emission reduction targets relating to the supply chain (-30% in 2035 compared to 2023 values). Furthermore, an objective is being set for Scope 4, with more than 50 million tonnes of CO 2 emissions avoided Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 103 Table 6 Circular economy Objective KPIs BU Service/ business Stakeholders Waste recovery and treatment To improve the recovery process of waste collected (including through their transformation into energy) and promoting separate waste collection Index of sorted waste collected (% of total collected) Waste Waste collection Community Institutions % of separate waste collection - city of Milan Waste Waste collection Community Institutions % municipal waste collected in landfill Waste Waste collection and treatment Community Institutions Per capita undifferentiated waste reduction (kg/ inhabitant) Waste Waste collection Community Institutions Waste sent for material recovery (kt) Waste Waste treatment Community Institutions District Heating To help reduce the environmental impact of the cities, paying close attention to air quality and implementing district heating and district cooling Thermal storage capacity for TLR (cubic metres) Smart Infrastructures TLR Customers Energy from non-fossil sources for the TLR (TWht) Smart Infrastructures TLR Customers Community Share of heat from non-fossil sources Smart Infrastructures TLR Customers Community CO 2 emissions avoided thanks to TLR (t/a) Smart Infrastructures TLR Community Institutions NOx emissions avoided thanks to TLR (t) - cumulative Smart Infrastructures TLR Community Institutions Water To implement actions to reduce water consumption in capture and distribution processes, reduce water dispersion and improve the quality of water returned to the environment Reduction in water consumption from aqueducts in electrical distribution - Unareti perimeter - % reduction compared to 2020 consumption Smart Infrastructures Integrated water service Community Linear water losses (cubic metres/km/days) - average Smart Infrastructures Integrated water service Community Number of intelligent sensors installed for water service - cumulative figure Smart Infrastructures Integrated water service Community Percentage of new generation water service meters installed Smart Infrastructures Integrated water service Community % of districting of the A2A Ciclo Idrico aqueduct network Smart Infrastructures Integrated water service Community Waste reduction policies To reduce the production of waste through a prevention, reduction and reuse policy Territories where waste prevention and reduction actions are active (% of total population served) always >85% Waste Circular economy Community Institutions Number of partnerships launched for circular economy initiatives Waste Circular economy Community Institutions 104 A2A Report on Operations 2024 Sustainability Statement Table 7 Energy transition Objective KPIs BU Service/Business Stakeholder Renewables To increase the proportion of energy produced from renewable sources Total installed RES capacity (GW) Generation BU Generation & Trading Energy production Community Institutions Percentage of renewable energy out of the total – Generation BU Generation & Trading Energy production Community/ Customers Total installed RES capacity (GW) BUMER Market Energy production Customers Total net production (GWh) solar BUMER Market Energy production Customers Emissions To develop actions aiming to reduce the environmental footprint, like direct and indirect emissions of greenhouse gases Emission factor Scope 1 + Scope 2 (gCO 2 eq/kWh) A2A Group Community Emissions Scope 2 (ktCO 2 eq) – energy purchase A2A Group Community Emissions Scope 3 - Upstream energy carriers A2A Group Suppliers Emissions Scope 3 - Products sold A2A Group Customers Total methane emissions avoided from distribution networks - cumulative values with respect to 2015 (tCO 2 eq) - Unareti perimeter Smart Infrastructures Community Sustainable mobility To develop sustainable internal and external mobility solutions Charging service contracts Emoving (number) Market Electric mobility Customers Emissions avoided by A2A stations Market Electric mobility Community Number of electric charging points - cumulative 21-34 Market Electric mobility Institution Community Average specific emissions of the service vehicle fleet (excluding special vehicles) A2A Group Electric mobility People Number of low environmental impact collection and street sweeping vehicles (Euro 6 vehicles, methane gas, electric) Waste Waste collection Community Green energy and energy efficiency in end uses To contribute to the reduction of emissions of end customers through the sale of green energy and the development of energy efficiency measures for public and private real estate assets Green energy sold to the market (TWh) Market Energy sale Customers CO 2 -free gas sold to the segment (Mm 3 ) Market Gas sale Customers Loyal customers with energy efficiency services (Customers with a service/product in addition to the commodity) Market Energy Efficiency Customers Cumulative avoided emissions 21-30 - VAS products (HVAC, PV systems) (t) Market Energy Efficiency Customers Avoided emissions accumulated 21-30 - b2b Energy efficiency – ESCo (t) Market Energy Efficiency Customers Cumulative avoided emissions 21-30 - VAS products for condominiums and commercial buildings (t) Market Energy Efficiency Customers Smart Grid To develop solutions to offer a better information access infrastructure (Smart Grid) and improve the grid resilience as well as to contribute to the growing electrification of consumption Percentage of users with 2G electricity smart meter (Unareti) Smart Infrastructures Network Management Community User interruptions in LV - SAIFI (#/ year/POD) Smart Infrastructures Network Management Community Installed capacity of the electricity grid (MVA) Smart Infrastructures Network Management Community Number of primary substations installed Smart Infrastructures Network Management Community Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 105 Table 8 People Innovation Objective KPIs BU Service/Business Stakeholder Responsible Procurement To develop initiatives aiming to spread the culture of health and safety at work amongst contractors and other suppliers. Develop Green Procurement policies Incidence of sustainability criteria in the vendor rating process Group Network Management Supply chain Average ESG score on orders placed Group Network Management Supply chain Orders assigned to suppliers with implemented D&I policies Group Supply chain % of the orders to Suppliers evaluated with ESG indicator (Infoprovider Ecovadis) Group Supply chain Corrective actions taken following unsuccessful audits Group Supply chain Inspections of road sites (number/year) Smart Infrastructures Network Management Supply chain Transparency and Stakeholder Engagement To develop integrated reporting and an adequate information system for planning and control. To develop external stakeholder engagement activities, strengthening the relationship with the territory Group events CO 2 free (offset through credits) with an economic value >30k Group Network Management Community Sponsorships with initiatives to raise awareness of SDGs issues Group Network Management Community Institutions Territories involved in multi stakeholder engagement initiatives / year Group Network Management Community Institutions Impact assessment on the areas of competence (cumulative) Group Community Institutions Publishing content for the Group’s growth in ESG brand reputation (value of reputational return on digital channels) Group Customers Organisation of meetings on innovative regulatory and sustainability issues related to the Business Plan between A2A top management and one or more relevant regulatory stakeholders Group Institutions People Health and safety To consolidate the training and prevention plan to reduce injuries and develop new initiatives for worker health and safety Percentage of accesses to health promotion initiatives Group People Accident Frequency Index (If) with gate on Severity Index (Ig) calculated taking into account only the first prognoses Group People MbO and Performance Management To incorporate sustainability objectives into MbO forms (correlation between management remuneration and KPIs Sustainability) Employees involved in a Performance Management process that entails the assignment of objectives Group People 106 A2A Report on Operations 2024 Sustainability Statement Training To implement training routes aimed at optimising and requalifying competences and professional development (including on matters such as sustainability, anti-corruption and human rights) Reskilling and upskilling of thermal power plant employees Group People Reskilling and upskilling of employees in the digital field Group People Organisation Wellness To implement the best business organisation systems for effective development of all work processes Digitalisation of regulatory documents Group People Adoption APP A2A Life Group People Welfare, Diversity and equal opportunities To develop innovative welfare policies, also in connection with the promotion of gender equality, and enhance skills through a generational bridge that allows for the transfer of knowledge and experience between the junior and senior populations Women in positions of responsibility (% of total managers) Group People Gender Balance BoD Group People Gender Pay Gap Group People Women in succession plans (% of total) Group People Direct hires Group People Community Women among the Group’s new hires (excluding blue collar workers) % Group People Employees with disabilities involved in specific support/ inclusion projects (% of total employees in Protected categories) Group People Hours spent in smart working Group People Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 107 Table 9 Digital Objective KPIs BU Service/Business Stakeholder Quality To maintain high quality standards of the services supplied by keeping high customer satisfaction levels Digitalization of Customer Care: digital contacts of total Group Customer support Customers CSI Call Center A2A Energia Market Customer support Customers Customer Satisfaction Amsa (Milan/Municipalities) Waste Customer support Customers Community Customer Satisfaction Aprica Waste Customer support Customers Community Interventions on Group sites for evolved interactivity - number/year Group Customer support Customers Community Number of active supplies bollett@mail - BU MARKET Market Customer support Customers Innovation and R&D To develop capital expen- ditures in research and de- velopment, increasing the number of partnerships with international research centres and universities. To develop new technologies, patents for technological innovation Initiatives with a positive im- pact on emissions Group Shareholders and financial stakeholders Investment in digital and in- novation initiatives with posi- tive impact on emissions Group Shareholders and financial stakeholders CCUS initiatives vs. total R&D initiatives Group Shareholders and financial stakeholders Table 10 Governance Objective KPIs BU Service/Business Stakeholder Biodiversity To participate in projects aiming to protect the soil and protected species, monitoring and protecting biodiversity in the territories of competence Plants monitored with respect to potential interference with biodiversity (protected areas, Natura 2000 and others). This includes new plants acquired during the reporting year, the monitoring of which is going to be carried out within the same year. (Maintaining full coverage of sites and activities as the company’s perimeter is expanded) Waste Generation Smart Infrastructures Customer support Community Definition of a Biodiversity Action Plan Group Customer support Community Initiation and development of initiatives aimed at protecting/improving biodiversity Group Waste Generation Smart Infrastructures Customer support Community 108 A2A Report on Operations 2024 Sustainability Statement transversally among them (for example, through the generation of heat from waste-to- energy, A2A is present transversally among the value chains relating to Heat and Waste Management): • Electricity: all activities relating to the generation of electricity from different sources, including the recovery of energy from waste treatment, to its transmission, dispatch, distribution and measurement, to its wholesale and retail trading and to its end use. A2A is part of the value chain with all its four Business Units, through generation from traditional sources, wind, solar and hydroelectric power, electrical storage and hydroelectric pumping services, wholesale buying and selling and trading, distribution and metering, retail sales and E-mobility charging infrastructure services. On the other hand, as far as generation from fossil fuels is concerned, the value chains upstream of it, i.e. those for natural gas, oil and coal, were considered and mapped. • Natural gas: all activities related to the marketing of natural gas from the stages of exploration and extraction, processing, storage, transport, distribution and, finally, sale and end use. The activities directly managed by A2A are mainly concentrated in the transport, distribution and retail stages, in particular through the Smart Infrastructures and Market BUs. The Generation & Trading BU uses natural gas to generate energy from thermoelectric plants. • Heat: all activities aimed at the generation of heat, its distribution, sale and final use. The Group has an absolutely transversal presence in this value chain; in fact, the BU Smart Infrastructures is active in heat generation and cogeneration, in the purchase and recovery of heat from third parties, in its distribution and sale, both to third-party operators and to end customers. In addition, the Waste BU, through its waste- to-energy activities, ensures the supply of heat to district heating networks, exploiting the energy recovery process of waste. The Group’s value chain [42, 42a, 42b] The Group’s value creation is based on the efficient use of numerous inputs, which are skilfully exploited by the business model to achieve the desired outcomes. The inputs that enable the Group to operate are many: economic resources, infrastructure, natural resources such as water, wind, sun but also natural gas, people and their knowledge and skills, and all the relationships with stakeholders and all the other players in the value chain. The Group makes sure it has the inputs it needs in various ways, for example: there are structured processes for the procurement of natural gas, precise rules for the use of water resources both for electricity production and for water distribution, solid programmes for the selection and subsequent professional development of highly qualified people and defined processes to manage interactions with all stakeholders in the value chain. The final outcome anticipated by the A2A Group’s Business Plan is to promote the energy transition and the development of circular economy models and thus to create sustainable value for people and territories, improving people’s lives. The benefits expected for citizens, customers and other stakeholders include clean cities, reuse of resources, supply of renewable energy and heat, management of the water service with the highest quality standards (also resolving the numerous European infringements) and public lighting with the latest available technologies. The proper management of business inputs and strategies and excellent governance also ensure the Group’s economic stability and soundness, with expected benefits for all financial stakeholders. [42c] During the reporting year, the Group mapped both its own activities and those of its value chains in a timely manner. This process initially involved an in-depth analysis of the characteristics of the Group’s business model and, subsequently, also through the involvement of the most representative corporate structures, the activities managed outside the Group were examined. Below is a description of the five main value chains within which A2A’s business model fits, also Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 109 • Water management: in this case, the aim was not to obtain a holistic mapping of the entire value chain of water management from different sources, but only of the one in which the A2A business model is part of, i.e. the one related to groundwater. The integrated water cycle for these waters was therefore mapped, including abstraction and distribution, industrial, municipal and domestic use, and treatment and discharge. A2A, and specifically the Smart Infrastructures BU, is present in this cycle both upstream and downstream of water use, through exploration and catchment, purification, management and distribution, management of sewage systems, treatment and discharge. • Waste management: the set of activities that make up the integrated waste cycle, including the collection and transport of waste, its subsequent treatment and recovery of materials and energy, other treatment and possible export. A2A, through its Waste BU, has an extensive presence within the integrated waste cycle, covering activities within all its levels listed above, and intersecting with those carried out by third parties. For the sake of completeness, the mapping also included two other auxiliary services developed by the Waste BU, namely the engineering of material and energy treatment and recovery plants, and remediation activities. 110 A2A Report on Operations 2024 Sustainability Statement The graphical mapping resulting from the activity is shown below: Value chain NATURAL GAS Exploration & Production and processing Liquefaction Transport Regasification Storage Distribution Retail sale Final use HEAT Heat generation and cogeneration Purchase/ recovery of heat from third parties Heat distribution Sale to third- party operators Sale to final customers Final use Wholesale electricity trading Transmission and dispatching Distribution and measurement Retail sale E-mobility charging infrastructure Final use ELECTRIC ENERGY Resource extraction Solar and wind generation Hydroelectric generation Fossil fuel generation Electrical storage services and hydroelectric pumping VC Oil Activity carried out by A2A Activity carried out by third parties Activity carried out by A2A and by third parties Connection within a value chain Connection between different value chains Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 111 WASTE MANAGEMENT WATER MANAGEMENT Plant engineering Logistics and Export Reclamation activities Production of agricultural waste and/or feedstock Storage (transfer stations) Production of urban waste (domestic and non-domestic users) Selection and treatment of RD fractions Waste collection Soil hygiene Ancillary services Waste transportation Waste to energy Material recovery Landfill (disposal) Inerting Replacement of materials on the market Storage in mines (disposal and/ or recovery) Organic treatment TMB treatment Treatment platform Chemical-physi- cal treatment Underground water Exploration and capture Management and distribution Drinking water Industrial use Municipal and domestic use Sewer systems Purification Unload Industrial waste water treatment Industrial waste production CSS productionCement factory Biogas production Biomethane production Production and distribution of certified compost Collection and transportation Treatment and recovery of materials and energy Other treatments, including landfill 112 A2A Report on Operations 2024 Sustainability Statement to them on the basis of their competencies, on different territorial levels, according to four parameters: familiarity, influence, relationship status and dependency. In addition, each user was asked to indicate for each category and territory their relevant, critical and potential stakeholders. In conjunction with the evaluation of the subcategories of stakeholders, the business organisations were asked to specify the number of initiatives carried out by type and to provide details about the initiatives considered most relevant. This mapping and assessment process has made it possible, on the one hand, to obtain quantitative results to measure relations with the communities affected by the Group’s activities through numerical KPIs with an overview at the corporate level and for each BU; and, on the other hand, to focus attention on certain territories and specific relations, highlighting critical situations to be taken into consideration when defining activities and engagement strategies for the year 2025. The results of this entire process are shared and accessible internally through an interactive report. By extracting comparable indicators across categories, territorial levels and Business Units, the model makes it possible to monitor relationships with relevant stakeholders over time and define appropriate engagement plans. For 2024, quantitative assessments expressed within the platform showed that the status of the relationship with the different categories of stakeholders was at an average level of ‘very good’ throughout Italy, with slight differences based on the different territorial contexts and the subcategory considered. During the reporting year, engagement initiatives led to interactions with stakeholders of different types: 67% information, 20% consultation, 12% communication and the remainder mediation. The engagement activities were declined for the various stakeholder categories on the basis of the engagement objectives of the different corporate structures with a view to continuous improvement of relations with their stakeholders. In particular, it is through the Multi-stakeholder Forums that A2A carries out a structured programme of listening and maintaining a dialogue with local stakeholders, through working groups and periodic public meetings, aiming to understand the specific characteristics of the communities, create debate on the most relevant issues for the development of the Group and the local areas, and contribute to the implementation of ideas and projects ESRS S1 SBM-2 ESRS S2 SBM-2 ESRS S3 SBM-2 ESRS S4 SBM-2 ESRS 2 SBM-2 Interests and views of stakeholders [45a] A2A considers the creation of shared value for all stakeholders, the preservation of resources and care for the wellbeing of communities to be indispensable aspects of its activities as a Life Company. This is why the Group is committed to understanding and respecting the context in which it conducts its business, combining ongoing dialogue with the analysis and monitoring of stakeholders and their needs in different geographical areas. In order to map and track the progress of relationships and initiatives undertaken with the various stakeholders, as well as to identify groups or categories that could be more significantly impacted by the Group’s activities due to specific factors, a timely reporting flow has been developed for the categories of stakeholders and the activities carried out to involve them. Since 2021, the Group has been cooperatively using a digital platform that allows it to track and evaluate relationships and initiatives in order to optimise stakeholder engagement strategies and to collect specific requests and needs with respect to the territories and the Group’s various services and activities. At the same time, the application enables the design of voluntary and transparent dialogue initiatives consistent with the needs of territories. The Group has identified 7 macro-categories of stakeholders and 58 sub-categories with which it has relations and on which it has an influence or by which is affected: Customers, Community, People, Market, Institutions, Supply Chain, Shareholders and Financial Stakeholders. In 2024, the entire stakeholder mapping and evaluation process was revised to make it more efficient and functional for the business, maintaining its widespread nature in order to obtain timely strategic results for each territory in which the Group operates, but at the same time having an overview of A2A’s relationships with the different categories of stakeholders. In 2024, the number of corporate structures required to participate in the process was increased to 40. The compilers belonging to the different corporate functions had to evaluate the stakeholder categories assigned Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 113 • “Together against energy poverty” in Apulia and Calabria, to map the needs of the territory with respect to the fight against energy poverty through dedicated round tables; • “Energy Efficiency for Industry” in Apulia and Sicily, with the aim of proposing energy efficiency and energy autonomy solutions, with a focus on “hard to abate” sectors and disseminating specific solutions, also in support of new regulatory requirements. The roadshow continued in 2024, engagement activities focused vertically on two thematic streams, sustainable supply chains and the protection of local biodiversity. The decision to explore these two issues in depth was guided by the important regulatory developments taking place at European level and by the increased awareness, also following the first cycle of meetings, that the A2A Group has a duty to stand by its local areas to facilitate, where possible, any area impacted by the ecological transition process. In particular, the CSRD (Corporate Sustainability Reporting Directive) has broadened the scope of companies required to report on sustainability issues and has introduced the requirement to include in the Sustainability Statement information on the impacts, the significant risks and opportunities associated with the company through its direct and indirect commercial relationships in the upstream and/ or downstream value chain, and the obligation for companies to regularly monitor, assess and disclose biodiversity-related risks, dependencies and impacts. Alongside this are the CSDD (Corporate Sustainability Due Diligence Directive), which has introduced the concept of corporate due diligence on sustainability and accountability for human rights violations and environmental violations along the supply chain, and the European Nature Restoration Regulation, which requires EU countries to develop national plans to restore 90 per cent of habitats in poor condition by 2050 and at least 30 per cent by 2030. In 2024, 187 stakeholders took part in the closed-door working groups. In the different territories, the stakeholders involved were the spokespersons for the interests and viewpoints of their communities, bringing in different demands depending on the entity represented. The objective of the working groups was to identify collective actions to: • support local companies and, in particular, the A2A supply chain, in accelerating the sustainable transition on environmental, with shared value and in line with the Strategic Plan. The programme was launched in 2021 and the first year of “listening” was followed by a programme of co-designing initiatives with local stakeholders, called “Alliances for a Successful Transition”. The plans were drawn up by analysing the results of the previous edition and carrying out a quantitative analysis based on the indicators of fair and sustainable well- being measured by ISTAT, to draw a snapshot of each area concerned, identifying the main barriers and opportunities on the path towards ecological transition. Overall, this process has led to the development of 43 practical solutions, including, for example, the Vademecum in 2023, to support small and medium-sized enterprises in integrating sustainability into their business models (for more details, please refer to disclosure requirement S3-4), and the Charter of Sustainable Consumption, which brings together the priorities and actions for sustainable consumption by citizens and businesses, identified by the Advisory Board for Milan, Brescia and Bergamo, in which the main stakeholders of the cities, including organisations and associations, took part in 36 hours of discussion. In the first months of 2024, the following initiatives were implemented based on the requests that had previously emerged from stakeholders in some areas: • “The power of good habits” in Calabria and Apulia, in which, starting from a SWG survey, supported by A2A, on habits in terms of energy efficiency, circular economy and sustainable mobility, meetings were held to share the results with local stakeholders and to disseminate advice and good practices among citizens in a capillary manner through the creation of cards with useful tips which were distributed to local stakeholders; • “Call 2 action: citizens and schools for sustainability” in Calabria, Sicily and Apulia, in which schools were involved in order to stimulate the younger generations to look for creative and innovative solutions to foster sustainable development; • “Electric mobility for the territory” in Apulia, with the aim of identifying, together with local authorities and institutions, the most suitable areas for the development of electric mobility in the territory and launching activities to raise awareness among users and citizens on sustainable mobility; 114 A2A Report on Operations 2024 Sustainability Statement event in Liguria, where both the workshops and the Life Talk were held. Each roadshow event, in line with previous editions, also included a public presentation of the Territorial Sustainability Report, with the participation of A2A’s top management, institutions and the main local Key Opinion Leaders, to report on the results achieved by the Group in the geographical area of reference, evaluate its progress compared to previous years and communicate future projects that will affect the territory. The events were also an opportunity to discuss the path towards ecological transition and to comment on the results of the work carried out behind closed doors with stakeholders, considering together which alliances to build in order to achieve concrete results. More than 1,000 people attended the public sessions in 2024, including stakeholders, local media and local representatives. [45b] For specific information on the interests and opinions of the Group’s main Stakeholders, please refer to the disclosure requirements ESRS 2 IRO 1, relating to double materiality, and ESRS 2 GOV-4, relating to due diligence processes [45d] The needs that emerge from direct discussion with stakeholders and the internal mapping process are periodically presented to the ESG and Land Relations Committee, which assesses how stakeholder interests and views can be integrated into the company’s strategies and business model. Moreover, the Group’s constant presence in the territories, a distinguishing feature of the Group, allows for a continuous and direct dialogue between territorial company representatives and stakeholders, facilitating the transfer of the various stakeholders’ requests to the governance bodies, so that these can permeate the planning of the Group’s activities. In particular, during the 2024 financial year, the ESG and Territory Relations Committee met 9 times and carried out its proposal and advisory activities regarding, among other things: • the implementation and promotion of structured means of comparison with the territories in which the Group operates, also through the implementation of initiatives of the involvement of all stakeholders (Forum Multi- stakeholder); • the implementation and monitoring of actions proposed during the involvement of stakeholders. social and governance performance, also in compliance with new European regulations (CSRD, CSDD); • raise community awareness of the protection of local biodiversity by bridging information gaps and taking concrete action to protect the specific characteristics of local ecosystems. From the discussion with the participants at the “Sustainable Supply Chain” round table, it emerged that the most urgent and necessary actions at the moment concern training on sustainability tools and the transfer of specialised skills among companies through exchange programmes, due to the lack of internal skills found especially among SMEs. Another of the main critical issues encountered is accessing financial resources, as the investments required from SMEs for the transition are often incompatible with their size and economic capacity. From the discussion with stakeholders at the round table on “biodiversity and climate”, the main action identified as necessary consists of implementing information programmes and awareness campaigns on the issue, as the main obstacle to the protection of biodiversity is linked to the lack of awareness on the subject by citizens. Secondly, it has emerged that the current level of knowledge of ecosystems is still rather limited, so mapping fragile ecosystems can represent a concrete action to provide a crucial knowledge base for designing targeted and effective conservation and restoration interventions. The actions implemented and planned for 2025 to respond to the requests gathered through these opportunities for discussion are reported in the S3-4 disclosure requirement. Working tables were held in 11 territories: Valtellina Valchiavenna, Friuli-Venezia Giulia, Brescia, Milan, Calabria, Piedmont, Apulia, Bergamo, Southern Lombardy, Liguria e Monza Brianza. The territories of Sicily (West), Sardinia and Liguria were involved in the roadshow for the first time following a recent expansion of the customer base and the expansion of services, which required a dedicated positioning action. For this reason, the Multi-stakeholder Forums in these areas were held according to the format of Life Talks: meetings dedicated to citizens and stakeholders of the Group aimed at spreading the culture of sustainability, promoting consistent and responsible communication among the communities in which the company operates. Overall, therefore, in 2024 the roadshow included 14 stages in 13 regions, with a double Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 115 • objectives of the Plan, industrial strategy, activities and products/services of the company and geographical location of these activities; • mapping of activities included in the Value Chain (as explained in this chapter, to the SBM-1N disclosure requirement) and business relationships. [53b.iii] At the same time, through the ongoing involvement of stakeholders in Multi-stakeholder Forums throughout the year, A2A was able to engage with representatives of the communities in which it operates in order to capture the main sustainability issues relevant to them. This involvement was also repeated at the impact assessment stage, where 11 categories of stakeholders were asked to assess the significance of impacts. [53b.iv] At the conclusion of the preliminary assessment process, a long list of 61 impacts potentially relevant for the Group was defined. These were submitted for evaluation by 22 internal Group functions, which were asked to assess the severity (scale, extent and, in the case of negative impacts, irremediability), the likelihood, in the case of potential impacts, and the timeframes in which the effects would manifest themselves. The results were then reviewed against the findings of the stakeholder evaluation. The Group has defined four relevance scales based on the results obtained: • high; • medium – high; • medium – low; • low. A materiality threshold was then set, considering the impacts with a high or medium-high materiality rating as relevant. [53c, 53e, 53f, 53g] With reference to financial materiality, for the definition of risks, the Group made use of the universe of risks identified by the ERM function, in relation to which an analysis was carried out in relation to the issues proposed by ESRS 1 AR 16. The same process was adopted for the climatic opportunities, while the remaining opportunities were defined Impact, risk and opportunity management ESRS 2 IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities [53a] In 2024, the Group has carried out a process to update its materiality assessment to bring it in line with the requirements of the new ESRS standards, concluding a process, already started in previous years, to align with the new “double materiality” requirement introduced by the EU Corporate Sustainability Reporting Directive (CSRD). The assesment, which led to the identification of both the impacts generated by the Group externally (inside-out logic) and the way in which sustainability risks and opportunities affect A2A’s operations (outside-in logic), was structured in the following macro-phases: • understanding of the context; • identification of current and potential impacts and ESG risks and opportunities; • assessment of impacts, risks and opportunities; • engagement with external stakeholders • determination of material impacts, risks and opportunities. [53b.i] For the update of impact materiality, an analysis was performed with respect to relevant impacts in the past reporting year, also assessing their consistency with the proposed structure within ESRS 1 AR16. At the same time, to verify the completeness of these, an analysis was conducted to examine the external context in depth, focusing on: • the relevant impacts on a panel of peers and competitors operating in the multi-utility sector; • the main impacts identified by institutional reports, scientific research articles on the sector and sustainability, sustainability and sector frameworks, benchmark providers; • the legal and regulatory environment in which the Group operates. [53b.ii] In addition, an in-depth study was conducted with respect to the Group’s business activities and relations, focusing on: 116 A2A Report on Operations 2024 Sustainability Statement ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model [48a, 48c.i, 48c.ii, 48c.iii, 48h] Below is a list of the Impacts, Risks and Opportunities (IROs) that emerged as relevant for the Group with the related description, including details in relation to the Group’s activities and business model, and an association with the relevant ESRS Standards. For each IRO, the relevant stages of the value chain are also shown. Consistent with the value chain analysis described in ESRS 2 SBM-1 the stages in question are: • OO: own operations; • EE: Electricity; • P: Oil; • GN: Natural Gas; • C: Heat; • R: Waste management; • I: Water management. With reference to impacts, risks and opportunities, the reasonably expected timeframes for their manifestation are: • ST: short term (reporting year); • MT: medium term (2-5 years); • LT: long term (>5 years). through a review of the company’s activities together with the department managers. [53c.i] Next, an analysis was conducted to assess the completeness of the risks and opportunities with respect to the identified impacts and the dependencies among them. [53c.ii] The assessment of risks and opportunities was conducted in accordance with the ERM policy, assigning a current rating given by the impact of the risk or opportunity and the probability. In addition, 13 stakeholders from the financial community were involved to evaluate a selection of risks and opportunities. The ESG risks that have obtained a high or medium-high relevance and the opportunities that have obtained a score (p*i) greater than or equal to 9, on a scale with a maximum score of 16, are deemed as relevant. [53c.iii] Sustainability-related risks and opportunities integrated within the ERM model are treated in the same way as non-ESG risks and opportunities under the ERM policy. For more information, please refer to the chapter Risks and Uncertainties in the Report on Operations. [53d] The results of the double materiality assessment were presented to the ESG Committee and the Risk and Control Committee and subsequently approved by the Board of Directors. The process of identifying material topics is governed by a dedicated operational instruction, which is part of the broader Sustainability Reporting Procedure. This procedure defines the roles and responsibilities of the parties involved in the process, describes the phases and related activities carried out by the A2A Group for the double materiality assessment, as well as the methodology used by the Group.Specific codified control activities are also envisaged, involving multiple levels of review and approval. These activities engage the Sustainability Reporting function, the Officer in charge of financial reporting, the dedicated internal committees, and the Administrative Body. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 117 Table 11 Impact detail: Topic Impact description Stage Time horizon E1 - Climate Change \- Contribution to the acceleration of the energy transition through sustainable infrastructure development Actual positive OO; EE; C; R; I ST; MT; LT \- Generation of direct GHG emissions related to the activities carried out in the Group’s offices and sites Actual negative OO ST; MT; LT \- Generation of indirect GHG emissions, related to activities carried out at the Group’s offices and sites Actual negative OO ST; MT; LT \- Generation of climate-changing emissions produced in the value chain as a result of activities Actual negative OO; EE; P; C; GN; R; I ST; MT; LT \- Contributing to the fight against climate change through investments in R&D and Digital & Innovation Actual positive OO; EE; C ST; MT; LT \- Energy consumption for industrial processes with negative consequences on the environment and reduction of the energy stock Actual negative OO; EE; P; C; GN; R; I ST; MT; LT \- Contributing to and supporting the development of Smart Cities in the territories where the Group operates through new innovative and digital business models Actual positive OO; EE; C; I ST; MT; LT \- Contribution to the acceleration of the transition to electric mobility and its diffusion Actual positive OO; EE ST; MT; LT \- Contribution to the reduction of greenhouse gas emissions by offering customers energy from renewable sources Actual positive OO; EE ST; MT; LT \- Reduction of climate-changing emissions thanks to the use of district heating solutions that involve centralising heat production Actual positive OO; C ST; MT; LT \- Contribution to the development of Renewable Energy Sources (RES) in Italy through specific investments and the acquisition, within the Group scope, of dedicated companies Actual positive OO; EE; C ST; MT; LT E2 - Pollution \- Generation of non-GHG pollutant emissions with consequent effects on air quality levels Actual negative OO; P; R; I ST; MT; LT \- Worsening quality of life in cities due to excessive noise Pollution Actual negative OO; R ST; MT; LT E3 - Water and Resources \- Impact on water resource availability as a result of water use in production processes Actual negative OO; P; R ST; MT; LT \- Impact on the availability of water resources as a result of catchment activities and network leaks during water supply services Potential negative OO; I ST; MT; LT \- Contribution to the responsible use of water and the extension of its life cycle through its collection and treatment Actual positive I ST; MT; LT \- Re-introduction of poor quality water due to malfunctions in the purification systems resulting in damage to the environment Potential negative OO; I ST; MT; LT 118 A2A Report on Operations 2024 Sustainability Statement Topic Impact description Stage Time horizon E4 - Biodiversity and ecosystems \- Potential damage to biodiversity caused by interference of activities with the protected and non-protected area system (soil damage, deforestation, water damage, Pollution, etc.) Actual negative OO; EE; P; C; GN; R; I ST; MT; LT E5 - Circular economy \- Use of natural resources resulting in a reduction in their availability Actual negative OO; EE; P; GN ST; MT; LT \- Potential environmental damage related to the generation of hazardous and non-hazardous waste and its improper disposal Potential negative OO; EE; P; C; GN; R; I ST; MT; LT \- Contribution to achieving autonomy and maintaining the country’s energy security thanks to efficient resource management and investment in practices for the recovery of agricultural and food production waste and discards Actual positive OO ST; MT; LT \- Contribution to the responsible use of raw materials and to the extension of the life cycle of products or materials through the collection, treatment and recovery of municipal waste Actual positive OO; R ST; MT; LT S1 - Own workforce \- Negative effects in terms of satisfaction and turnover due to remuneration that does not meet employees’ expectations Actual negative OO ST; MT \- Increased employee satisfaction and psycho-physical well- being through well-being and work-life balance practices and initiatives Actual positive OO ST; MT; LT \- Outbreaks of disease and illness due to unhealthy or risky production or service provision processes Actual negative OO ST; MT; LT \- Violation of fundamental workers’ rights, such as the right to freedom of association and collective bargaining, privacy, child labour, forced or mandatory labour Potential negative OO ST; MT; LT \- Occurrence of accidents at work, with consequent risks to the health and safety of employees, during the course of company activities Actual negative OO ST; MT; LT \- Respect for diversity and promotion of an inclusive and meritocratic corporate climate thanks to company activities and initiatives that combat discrimination, including equal pay for women and men Actual positive OO ST; MT; LT \- Cases of discrimination and failure to include and integrate vulnerable groups Actual negative OO ST; MT; LT \- Development of skills through training and professional growth activities (e.g. digital skills, sustainability), job rotation programmes, general and technical programmes, also linked to growth objectives and personalised evaluation (e.g. career development plans) Actual positive OO ST; MT; LT Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 119 Topic Impact description Stage Time horizon S2 - Workers in the value chain \- Violation of human rights along the value chain, such as the right to freedom of association and collective bargaining, child labour, forced or mandatory labour Potential negative EE; P ST; MT; LT \- Occurrence of accidents at work (e.g. fires and explosions), with consequent health and safety risks for workers in the value chain and violation of their rights as a result also of poor maintenance of plant and machinery Actual negative EE; P; C; GN; R; I ST; MT; LT S3 - Affected communities \- Increased awareness of the community being served on energy and environmental issues thanks to the promotion of information and training initiatives Actual positive OO; EE; C MT; LT \- Contribution to the social development of the areas in which the Group operates through the creation of professional opportunities and social inclusion Actual positive OO ST; MT; LT \- Loss of cohesion of the reference communities due to the failure to listen to and involve them in the Group’s projects Potential negative OO MT; LT \- Emergence of conflicts and creation of social inequality for the control of natural resources and materials useful for the construction of facilities Potential negative EE; P; GN ST; MT; LT \- Interruption of water supply service to communities following system failures or inefficiencies Actual negative OO ST; MT; LT \- Decline in the availability of water resources for agricultural activities as a result of its predominant use for hydroelectric plants Actual negative OO; I ST; MT; LT \- Harm to the community caused by the visual impact of infrastructure construction and service provision Actual negative OO; EE; P; GN; R; I ST; MT; LT \- Negative effects on the health and safety of people and communities due to inefficient management and a lack of and/or inadequate control over the safety of infrastructure and services Potential negative OO; EE; P; C; GN; R; I ST; MT; LT \- Decline in the quality of local water, due to failure to comply with the pre-established requirements for the drinking water service Potential negative OO ST; MP; LT \- Worsening of the quality of life of the community due to odour emissions caused by waste collection and treatment activities Potential negative OO; R ST; MT; LT S4 - Consumers and end-users \- Violations of privacy and confidentiality in the processing of customers’ personal data Potential negative OO ST; MT; LT \- Negative effects on the recipients of corporate communications caused by misleading, non-transparent and discriminatory commercial and/or institutional communications Potential negative OO ST; MT; LT \- Possible health and safety impacts on customers as a result of receiving services that do not meet required standards, due to inefficiencies, malfunctions or control failures Actual negative OO; EE; R; I ST; MT; LT \- Contribution to the spread of electrification and increased energy accessibility through the construction of several charging points Actual positive OO; EE ST; MT; LT \- Improved accessibility of services for vulnerable customers through the development of systems to analyse their needs (e.g. bill reading for the visually impaired) Actual positive OO ST; MT; LT \- Decline in the quality of local water, due to failure to comply with the pre-established requirements for the drinking water service Potential negative OO ST; MT; LT \- Reduction of heating costs through the construction of district heating plants Actual positive OO; C ST; MT; LT 120 A2A Report on Operations 2024 Sustainability Statement Topic Impact description Stage Time horizon G1 - Business conduct \- Anti-competitive behaviour, monopolistic practices, episodes of corruption with negative repercussions on the economy and markets Potential negative OO; P; GN ST; MT; LT \- Awareness and dissemination of an ethical business culture based on the principles of integrity, fairness, non- discrimination and respect for human rights by management, employees, business partners and stakeholders Actual positive OO ST; MT; LT \- Supporting public policy development through lobbying activities Actual positive OO ST; MT; LT \- Contribution to the improvement of suppliers’ ESG performance and social and environmental impact in the communities in which they operate, including through qualification and selection policies that incorporate social and environmental sustainability criteria Actual positive OO; EE; P; C; GN; R; I MT; LT \- Negative impacts on the economy of communities, caused by over-delayed payment practices that can cause difficulties for SMEs Potential negative OO MT; LT \- Negative effects related to the lack of and/or incorrect assessment of suppliers, particularly on issues of compliance with environmental, social and economic regulations Actual negative OO; EE; P; C; GN; R; I ST; MT Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 121 Table 12 Risk detail: Topic Risk Description Stage Time horizons E1 - Climate Change Extreme weather phenomena Risks to the Group’s assets and business continuity as a result of risks arising from acute physical weather hazards (e.g., floods, landslides, water bombs, tornadoes, hail) which affect the Group’s plants and infrastructure. OO ST; MT; LT Scarcity of water for drinking water use Risk of failure to continuously supply drinking water in the event of prolonged periods of drought and/or changes in the hydrogeological regime. OO, I ST; MT; LT Resilience of electricity distribution grids Risk of interruptions to the electricity distribution service caused mainly by physical causes (peaks in demand for summer air conditioning, following heat waves and flooding caused by heavy rain) and transitional causes (greater demand for energy following the electrification of services). OO, EE ST; MT; LT EUAs emission allowances Risks related to changes in the price of emission allowances other than those assumed in the Business Plan. OO ST; MT; LT Biomass Plan Targets Possible incomplete achievement of the growth targets set out in the Business Plan in relation to the development of bioenergy due to changes in the regulatory framework of the incentive system, delays in obtaining authorisations and possible changes in the availability and price of biomass. OO ST; MT; LT Carbon footprint Potential impacts of a reputational nature for the A2A Group as a result of the failure to implement the decarbonisation programmes planned and communicated by the company, programmes that are subject to the following main sources of uncertainty: \- possible geopolitical, market or climatic situations that could lead to an increase in the demand for energy from fossil sources, either to meet a possible higher domestic demand for energy or to compensate for any lower production from renewable sources (primarily hydroelectric) and/or any lower imports; \- changes in the environment in which the group operates such as regulatory changes that have an adverse impact on the development of renewable energy sources; \- insufficient technological development, which may not adequately support the replacement of fossil production and/or the removal of carbon (“carbon removal”) from processes that are inherently “carbon intensive” (hard-to-abate). OO, EE LT ETS Directive Revision Risk concerning the application of the Emissions Trading Scheme to the Group’s waste-to-energy facilities following the revision of the EU Directive. OO LT E-mobility Plan Targets Potential incomplete achievement of the growth targets set out in the Business Plan in relation to charging stations for electric vehicles due to the penetration rate of electric vehicles being lower than forecast; the rise in the prices of materials and supplies and the extension of delivery times. OO ST; MT; LT Change in the precipitation event regime (hydraulicity) Risks related to changes in the availability of water resources at the Group’s main hydroelectric plants. OO ST; MT; LT 122 A2A Report on Operations 2024 Sustainability Statement Topic Risk Description Stage Time horizons E2 - Pollution A2A Ambiente Risk - fire risk Potential impacts of a reputational and economic-financial nature for A2A Ambiente and the Group connected to the possible occurrence of fires affecting recovery facilities, WTE plants and landfills, with repercussions for personnel and internal structures and the surrounding environment. OO, R ST; MT; LT Water cycle – Purification Potential impacts on the Group’s overall image, in relations with local authorities and communities as a result of any complaints of insufficiently purified water discharges into the receiving water bodies, in relation to the reference regulatory framework and the distribution of responsibilities between the Company and the competent local bodies OO ST; MT; LT Abnormal discharges into public sewers Potential impacts on the Group’s overall image, in its relations with local authorities and communities as a result of possible malfunctions in the purification process due to abnormal discharges of pollutants into the sewers that carry waste to the purification systems. OO ST; MT; LT Directive on Urban Waste Water Treatment Potential impacts on the Group’s overall image, in relations with local authorities and communities as well as economic and financial impacts as a result of possible critical issues in the application of the new Directive on Urban Waste Water, the text of which is currently being finalised at a European level (COM(2022)541) and will have to be implemented in Italy. OO MT; LT Recycling area management Potential impacts of a reputational nature for APRICA as a result of possible criticalities that may emerge in the management and/or in the implementation of activities for regulatory compliance of the ecological waste disposal areas of the Municipalities entrusted to the Company and/or in the management of relations with citizens. OO; transversal along the VC ST; MT; LT Environmental compliance Potential impacts on the Group’s overall image and economic-financial situation as a result of possible non-compliance - real or presumed - with regulations and/or authorisations or possible environmental damage caused by accidents and/or the incorrect management of the Group’s activities. OO; transversal along the VC ST; MT; LT E3 - Water and Resources Risks associated with the water supply chain - A2A Ciclo Idrico The distribution of water for human consumption that does not respect the quality and quantity characteristics associated with the distribution of drinking water could have repercussions on people’s health as well as economic impacts due to the need to interrupt production activities and impacts on the overall image of the Group in its relations with local authorities and communities. OO ST; MT; LT Scarcity of water for drinking water use Risk of failure to continuously supply drinking water in the event of prolonged periods of drought and/or changes in the hydrogeological regime. OO, I ST; MT; LT Water cycle – Purification Potential impacts on the Group’s overall image, in relations with local authorities and communities as a result of any complaints of insufficiently purified water discharges into the receiving water bodies, in relation to the reference regulatory framework and the distribution of responsibilities between the Company and the competent local bodies. OO ST; MT; LT Directive on Urban Waste Water Treatment Potential impacts on the Group’s overall image, in relations with local authorities and communities as well as economic and financial impacts as a result of possible critical issues in the application of the new Directive on Urban Waste Water, the text of which is currently being finalised at a European level (COM(2022)541) and will have to be implemented in Italy. OO MT; LT E4 - Biodiversity and ecosystems - Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 123 Topic Risk Description Stage Time horizons E5 - Circular economy Risk Optimisation and Development Waste BU The Group’s business plan for A2A Ambiente provides for development in certain business areas such as the materials recovery segment, OFMSW initiatives, new WTEs, hazardous waste treatment plants and M&A operations. There is a risk that these business development objectives will not be fully achieved, with potential economic and image impacts at Group level. OO, R ST; MT; LT Risk Controls on incoming waste to Waste BU facilities There are possible image and economic-financial damages for A2A Ambiente and the Group due to potential criminal/administrative actions connected to the acceptance of waste that is accidentally non-compliant or wrongly carried out in the absence of certain conditions set out in the relevant approval forms. OO; transversal along the VC ST; MT; LT S1 - Own workforce Risk of conversion of San Filippo del Mela thermoelectric plant A2A Energiefuture Potential reputational and economic and financial impacts for A2A Energiefuture and the Group related to the San Filippo del Mela site, for which alternatives are being assessed for the reuse of the site for industrial purposes in the energy sector, which would allow for the maintenance of both employment levels and economic and financial equilibrium. OO ST; MT Managerial and technical expertise risk Potential economic and financial impacts for the A2A Group in connection with possible difficulties in supporting its growth plans or in successfully achieving the initiated sustainable growth process as a result of the departure of management and/or technical staff, as well as any difficulties in acquiring new resources. OO MT; LT Health risk Potential reputational and economic impacts for the A2A Group as a result of any allegations of occupational diseases and/or real or alleged non-compliance by the company with health and health surveillance regulations, involving personnel working for the Group, in the event of media coverage. OO ST; MT; LT Security risk Potential repercussions for the Group’s image as a result of serious or very serious accidents involving internal and/or external staff of third-party companies operating at the premises and operational sites, as well as visitors and third parties, and/or any real or alleged non-compliance by the company in terms of safety. The scenario also considers the risks to people’s well-being from weather and climate factors. OO ST; MT; LT Major Accident Hazard Corteolona and Giussago Potential image repercussions for A2A Ambiente and the Group as a result of the occurrence of a major accident involving internal staff or the territory. OO ST; MT; LT Digital skills risk Possible economic and financial impacts for the A2A Group in connection with any difficulties in supporting its growth and successfully achieving the initiated sustainable growth process, in the absence of resources with adequate “digital” skills or in the presence of resources that do not achieve and maintain adequate digital knowledge. OO MP Maturity Risk Diversity Management A2A Potential impacts of a reputational nature for the A2A Group in connection with the partial failure to implement the diversity management policies that the company intends to develop, with the effect of generating less competitiveness as well as less attractiveness for high-potential resources in the coming years. OO ST; MT; LT S2 - Workers in the value chain Security risk Potential repercussions for the Group’s image as a result of serious or very serious accidents involving internal and/or external staff of third-party companies operating at the premises and operational sites, as well as visitors and third parties, and/or any real or alleged non-compliance by the company in terms of safety. The scenario also considers the risks to people’s well-being from weather and climate factors. OO ST; MT; LT Engineering Risk A2A Ambiente - Project Quality Management Potential economic-financial and reputational impacts for A2A Ambiente and the Group in relation to the possibility that the management of the process of designing and building plants and of investments fails to guarantee compliance with explicitly defined (technical specifications, etc.) or implicit (regulatory compliance, respect for intellectual property, etc.) times and requirements. OO ST; MT; LT Health risk Potential reputational and economic impacts for the A2A Group as a result of any allegations of occupational diseases and/or real or alleged non-compliance by the company with health and health surveillance regulations, involving personnel working for the Group, in the event of media coverage. OO ST; MT; LT 124 A2A Report on Operations 2024 Sustainability Statement Topic Risk Description Stage Time horizons S3 - Affected communities A2A Ambiente Risk - fire risk Potential impacts of a reputational and economic-financial nature for A2A Ambiente and the Group connected to the possible occurrence of fires affecting recovery facilities, WTE plants and landfills, with repercussions for personnel and internal structures and the surrounding environment. OO ST; MT; LT Waste collection and cleaning service risk Potential reputational impacts for AMSA and the Group in relation to possible interruptions of waste collection and urban cleaning services lasting several days. OO, R ST; MT; LT WTE Silla 2 risk Potential impacts on the Group’s image, on the relations with local authorities and communities resulting from possible malfunctions of the plant that prevent the correct waste disposal cycle and the normal supply of heat to the district heating network. OO ST; MT; LT Environmental sensitivity risk on Waste BU activities Potential economic and financial impacts connected to critical issues or limitations for the plants (waste-to-energy plants, recovery and disposal plants, including landfills) of the Waste BU, in the event of (i) the periodic renewal or review of the IEA, (ii) the implementation of new projects to expand certain plants/ sites, (iii) waste procurement activities, or (iv) daily operations in the event of a negative perception of the Company’s business by public opinion and local communities. OO ST; MT; LT Engineering Risk A2A Ambiente - Project Quality Management Potential economic-financial and reputational impacts for A2A Ambiente and the Group in relation to the possibility that the management of the process of designing and building plants and of investments fails to guarantee compliance with explicitly defined (technical specifications, etc.) or implicit (regulatory compliance, respect for intellectual property, etc.) times and requirements. OO ST; MT; LT Risks associated with the water supply chain - A2A Ciclo Idrico The distribution of water for human consumption that does not respect the quality and quantity characteristics associated with the distribution of drinking water could have repercussions on people’s health as well as economic impacts due to the need to interrupt production activities and impacts on the overall image of the Group in its relations with local authorities and communities. OO ST; MT; LT Major Accident Hazard Corteolona and Giussago Potential image repercussions for A2A Ambiente and the Group as a result of the occurrence of a major accident involving internal staff or the territory. OO ST; MT; LT Unauthorised access risk - Group facilities and locations Unauthorised third-party access to the Group’s plants and facilities could hinder the conduct of business, with potential repercussions on the safety of personnel and unauthorised third parties, the sites and their surroundings, as well as economic impacts resulting from the need to interrupt production activities. OO ST; MT; LT Operational Technology Security Risk Possible compliance/image impacts (“National Cybersecurity Scope” and “NIS Directive”) and operational impacts resulting from potential disruptions, problems with the continuity of operations and the safety of the production sites, networks and infrastructures of the companies of the Group due to problems that may affect the OT systems and networks that are managed by the respective Business Units. OO ST; MT; LT Acerra waste disposal risk Possible negative impacts in terms of relations with local authorities and communities and the Group’s overall image resulting from the potential interruption of the correct waste disposal cycle at the Acerra University Hospital. R ST; MT; LT Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 125 Topic Risk Description Stage Time horizons S4 - Consumers and end-users Regulation EU 2016/679 regarding Data Protection Code Potential impacts of an economic-financial and reputational nature for the A2A Group as a result of the company’s possible failure to comply with the obligations and fulfilments set forth in Privacy Law. OO ST; MT; LT ICT Security Unauthorised access to and theft of relevant/sensitive information from the Group’s systems, from employee computers and/or mobile devices, which may expose the company to loss of competitive advantage or result in administrative, financial or disqualification sanctions. OO ST; MT; LT Quality of distributed water Potential damage to the reputation of the Company and the Group as a result of initiatives by local communities that, on the basis of non-accredited and unrecognised procedures, wrongly certify the presence of pollutants in concentrations above the limits established by law in the drinking water distributed by A2A Ciclo Idrico, as well as the introduction of more restrictive regulations that make the distributed water non-compliant. OO ST; MT; LT Customer satisfaction A possible decrease in customer satisfaction levels as a result of the potential prolonged unavailability of both the CRM and front end systems and the IT infrastructures; this could result not only in damage to the Group’s image, but also in the loss of customers with economic repercussions. The presence of different applications and the management of numerous suppliers can result in a lengthening of the time taken to resolve infrastructural and application problems. OO ST; MT; LT G1 - Business conduct Corruption risk in Group activities Potential image and economic/financial impacts for the Group deriving from possible acts of corruption or unethical behaviour by the Group or its employees, particularly in the context of commercial and/or development activities also carried out in foreign countries, and which could also have relevance according to Model 231. OO; transversal along the VC ST; MT; LT Ethical requirements of suppliers Potential image impacts for the A2A Group if, in the case of a supplier or sub- supplier, critical issues emerge from an ethical point of view (acts of corruption, contribution irregularities or other illegal behaviour or behaviour contrary to ESG principles of the company or its directors). OO ST; MT; LT Models 231 Potential economic-financial and reputational impacts for the A2A Group resulting from the possible inadequacy of the 231 Organisational Model of one or more companies in the group in connection with a possible dispute regarding offences committed by personnel of the same Group Company and for which offences the Company has administrative responsibility pursuant to Legislative Decree 231/2001, as amended. OO ST; MT; LT Sustainability in Governance Potential impacts of a reputational and economic-financial nature for the A2A Group as a result of a possible ineffective synthesis between profitability and sustainability objectives, involving, for example, failure to meet sustainability targets, involvement in investigations and/or criminal proceedings for non- compliance or misconduct by management and/or employees, making choices not based on the principles of sustainability and of the SA8000 standard, with potential loss of competitiveness in the long term, all in consideration of A2A’s positioning as a Life Company. OO ST; MT; LT 126 A2A Report on Operations 2024 Sustainability Statement Table 13 Opportunity detail: Topic Opportunities Description Stage Time horizons E1 - Climate Change \- Opportunity for the Group to support with sustainable finance instruments its strategy of funding “green” investments outlined in the Business and Sustainability Plan OO ST; MT; LT \- Opportunity to make remunerated adaptation investments OO, EE ST; MT; LT \- Regulatory framework favourable to the implementation of the energy transition OO; transversal along the VC ST; MT; LT \- Opportunity to make remunerated capital expenditures and participate in programmes defined by ARERA aimed at increasing the resilience and flexibility of electricity distribution OO, EE ST; MT; LT \- Opportunity to increase demand for energy efficiency solutions by Public Administration and business and/or retail customers, also favoured by the spread of incentive systems OO, EE ST; MT; LT \- Possibility that favourable changes in climatic conditions (e.g. changes in water availability for some of the main hydroelectric plants) could have a positive impact on the profitability of the Group’s hydroelectric plants OO ST; MT; LT E3 - Water and Resources \- Enhancement of investments in saving and optimising the use of the water resource for drinking purposes OO, I ST; MT; LT E5- Circular economy \- Regulatory framework favourable to circular economy development OO, R ST; MT; LT \- Change in consumer behaviour resulting from increased sensitivity towards sustainable services/products (e.g. waste sorting), also thanks to environmental education and awareness campaigns and programmes carried out by the Company, which can positively affect the Group’s performance, in terms of higher revenues/lower costs and/or increased operational efficiency (e.g. lower costs for treating and selecting waste for recovery, lower costs for treating liquid waste) OO, R ST; MT; LT \- Development opportunities in the domestic market through the recovery of materials from waste OO, R ST; MT; LT \- Development opportunities in the domestic market through the recovery of critical raw materials OO, R ST; MT; LT \- Development opportunities in the domestic market through the recovery of energy from waste OO, R ST; MT; LT S1 - Own workforce \- Experimenting with innovative technologies to perform operational activities more safely and efficiently OO; Transversal along the VC ST; MT; LT S3 - Affected communities \- Territory’s appreciation of companies that provide products and services with high quality standards OO; Transversal along the VC ST; MT; LT Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 127 obtained an insurance reimbursement on this damage in the amount of € 0.38 million, which was recognised in the financial statements under other revenue, thus limiting the financial effect to € 0.43 million. It should also be noted that these financial effects are also reported under the E2-6 disclosure requirement; • the risk of extreme natural phenomena: damage to the Group’s assets was detected due to extreme natural phenomena such as landslides, storms and floods, which resulted in operating costs of €0.13 million, mainly incurred for the restoration of damaged assets. It should be noted that the Group mitigates this risk by taking out insurance that also includes coverage for any damage caused by extreme natural phenomena. In fact, in view of the operating costs indicated above, we have estimated indemnities of approximately €0.10 million, of which €0.02 million already collected during the year and recorded in the financial statements among other revenues; while 0.08 million euros will be collected in the following years, if recognized by the insurance companies. In addition, it should be noted that during the year there was other damage to the Group’s assets caused by landslides, storms and floods, the economic assessment of which is still being carried out and for which the estimated deductible to be borne by us is a total of €0.35 million. [48b, 48c.iv] To comply with the requirements of the standard, please refer to the introductory sections of all chapters. Please note that this information has already been reported within the individual sections of the Topical Standards. [48d] For each of the material risks identified as a result of the double materiality analysis, an assessment of the associated current financial effects was performed. Specifically, during 2024, financial effects with a total impact on the budget of approximately €9.98 million arose, related to the following risks: • the risk on the interruption of the electricity distribution service: there were service interruptions on the networks operated by the company UNARETI that led to the payment of penalties to ARERA for € 1.52 million and maintenance work carried out following line failures for a total amount of € 7.92 million; • the risk of fire relating to plants managed by the company A2A Ambiente: two fires occurred at the Fombio and Novate-Beltrami plants, resulting in operating costs of € 0.55 million and capital expenditure of € 0.26 million, both supported for the restoration of damaged systems and equipment and disposal. In addition, it should be noted that A2A Ambiente Topic Opportunities Description Stage Time horizons S4 - Consumers and end-users \- High level of appreciation of the territory for services with high quality standards OO; Transversal along the VC ST; MT; LT \- Development of products and services with high added value (e.g., post-meter and e-mobility services). OO, EE ST; MT; LT G1 – Business conduct \- Responsible management of the supply chain Transversal along the VC ST; MT; LT \- Training, internal communication, and projects to enhance ESG policy integration at all levels of the organization OO ST; MT; LT 128 A2A Report on Operations 2024 Sustainability Statement risks concern: information technology and cyber security, environmental compliance, health and safety, governance and macroeconomic instability. In particular, recently, the speed of the ecological transition and of all the activities related to it has undergone accelerations and sudden stops due to favourable and unfavourable exogenous factors. However, the A2A Group has shown an extraordinary ability to adapt, grow and exploit the relevant opportunities that have emerged from the changes taking place. The presence of a diversified and integrated business portfolio has undoubtedly been a strategic advantage in dealing with instabilities and seizing market opportunities in recent years. The advantages of this flexible business model, which is ready to adapt to external changes, are many: it allows the strategy, and therefore the growth of the company, to be modulated according to market trends, it reduces risks thanks to the diversification of the services portfolio and it improves the competitive positioning of the Group on the reference markets. E1 ESRS 2 IRO-1 Description of the processes to identify and assess material climate-related impacts, risks and opportunities Climate change impacts [20a, AR13a 13b, 13c, 13d] As part of the materiality assessment, and in particular the process to identify current and potential climate impacts, the Strategic Plan was taken as a reference, as a guide to define areas and activities with current and prospective climate change impacts. The analysis was then further examined for each individual business of the Group, in order to map out in detail the activities that currently produce emissions, whether significant or not, and how these sources may evolve in the course of the Plan, i.e. up to 2035. In addition, the internal work on the preparation of Business Unit Transition Plans was useful to define which activities are likely to remain in the portfolio beyond the Plan timeframe and which actions can be implemented to cope with the expected impacts. [20b] The A2A Group has a system in place for identifying, assessing and managing climate change risks and opportunities that is integrated It should be noted that the financial effects described above are reflected in the balance sheet as follows: in the income statement, other revenues of € 0.40 million (see section 26 “Revenues” in the Notes to the consolidated financial statements) and operating costs of € 10.12 million (see section 27 “Operating Costs” in the Notes to the consolidated financial statements) and in the balance sheet, tangible fixed assets of € 0.26 million (see section 1 “Tangible Fixed Assets” in the Notes to the consolidated financial statements). The potential effects of physical and transitional climate risks were also taken into account in the impairment test. In particular, the independent expert for this CGU has prepared a sensitivity analysis based on the development of econometric and statistical models. This analysis is designed to measure the impact of changes in the energy scenario and climate change on the CGUs that are most exposed (Generazione CCGT, Generazione Rinnovabili and Calore). There are no financial effects and please refer to the section “Impairment Test” in the Notes to the consolidated financial statements for further details. [48g] For the purposes of this Statement, the materiality assessment process has been modified from the previous reporting (prepared according to the requirements of the GRI standard) to be aligned with the requirements of the ESRS reporting standard. The results of the materiality assessment are consistent with the analysis previously carried out, in terms of relevant issues. Resilience of the strategy and the business model [48f] The resilience analysis of a company’s strategy and business model with regard to its ability to cope with impacts and risks and exploit opportunities, has as its starting point and prerequisite the analysis and assessment of ESG risks. The analysis is extended to all Group companies, consistent with the guidelines of the system of internal control and risk management (SCIGR) and the Enterprise Risk Management process (to which reference is also made for the definition of time horizons). The main area of risk identified that has the greatest potential impact on the resilience of the A2A Group’s strategy and business model is the climate change; other Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 129 well as to the positioning along the value chain are indicated. For more information on the description of physical risks and opportunities, please refer to the E1 ESRS E2 SBM-3 disclosure requirement. [AR11a] Climate-related hazards and Critical Issues for the A2A Group The Group conducts the systematic assessment regarding the exposure of the A2A Group companies and assets to climate-related hazards as classified by the European Taxonomy through the Delegated Acts issued in implementation of EU Regulation 2020/852\. The assessment is integrated into the Group’s Enterprise Risk Management process and is carried out in the course of periodic interviews and in any ad hoc in-depth reviews. This assessment has made it possible to build a database that includes the physical climate change adaptation measures implemented by the various Group companies and to have a knowledge base to identify the most relevant areas for conducting further in- depth studies on forecast climate parameters, useful for improving the assessment and optimizing the adaptation and risk reduction measures. The figure below shows the main critical climate factors that impact each Business Unit of the A2A Group. The level of materiality indicated takes into account the A2A Group’s type of business, the geographical location of activities and assets, and recent climate change. The main climate criticalities highlighted were assessed and quantified with reference to the short, medium and long term horizons. In carrying out the assessment, the A2A Group also examined assets and business activities to determine their exposure to climate-related risks. into the Group Enterprise Risk Management process. The main features of the system with reference to climate risks are described below. Within the process of analysing climatic risks, other contextual elements are being considered, including: • the recommendations issued by the Taskforce on Climate-related Financial Disclosure (TCFD), which provide a framework for climate risk categories to be considered for comprehensive and transparent reporting; • the European Taxonomy Regulation and the related delegated acts; • the ESRS E1 standard - Climate Change; • the businesses operated and the services offered by the Group, as well as the risks already included in the Group’s risk profile. The analysis was also supported by the document “Climate Change, Infrastructure and Mobility” prepared by the Ministry of Infrastructure and Sustainable Mobility and presented at the conference with the same name held at the Milan Polytechnic University of Milan on 28 September 2022. Physical risks and opportunities Climate risks and physical opportunities for the A2A Group are also identified and assessed for the purposes of the financial materiality assessment process. For each identified risk or opportunity, the line of business concerned and the time horizon over which the risk or opportunity may manifest itself, the description of the risk, the type of impact on the business, the management strategy and the link to the resources on which the business depends as 130 A2A Report on Operations 2024 Sustainability Statement Table 14 Generation & Trading Smart Infrastructures Waste Market All BUs Hydroelectric production Thermoelectric production Photovoltaic plants Eolic plants Electricity and gas distribution District heating Water cycle Waste treatment plant Waste collection Biomass electricity production Market People Temperature Chronic events Glaciers retreat Minor efficiency Thermic stress and fault / more cooling days and grid overload Less heat sold due to warmer autumn and winter seasons Possible microbiological contamination of drinkable water sources and grids Less need of thermic energy by clients Less heat sold due to warmer autumn and winter seasons Extreme events Extreme flows due to fast glaciers melting Critical cooling of thermoelectric processes Less production during heath waves Electricity black- out due to peaks in air conditioning demand Electric equipment overheating Freez/brek of pipes and limited accessibility to mountain wellsprings due to cold waves Electric equipment overheating Higher fire risk in waste deposit Uncoltivated land fires Unprogrammed deviations of gas commodity portfolio usage Workers wellbeing during external work during heath waves Wind Chronic events Less production due to wind changes Extreme events Impacts on hydroelectric system due to tornadoes Tree falling on plants and grids Asset damage due to tornadoes Outage due to extreme wind Tree falling on plants and grids Detachment of panels Electricity outages due to grid damage. Tree/branch falling and sewer obstruction Waste dispersion from deposit structures Waste dispersion from deposit structures Asset damage due to tornadoes Transportation infrastructures damage due to tornadoes Incidents of workers operating outside Water Chronic events Hydrogeological variability with impacts on production Hydrogeological variability with gas pipes break risk Heating pumps withdrawal aquifer drop Less water availability in mountain communities Extreme events Less production due to less water availability Water scarcity for thermoelectric processes Asst damage due to hail and lightinings Flood of underground cabins Less water availability for plant use Less water availability in mountain communities. Sewer obstruction and overflowing Changes in humidity standard of waste treated. Flood/overflowing and Pollution Impacts on assets and services in cities with high hydrogeological risk Less biomass availability in the event of drought Transportation infrastructures damage due to flood/ overflowing Safety impacts on workworn in cities with high hydrogeological risk Solid mass Chronic events Possible drag and pipes break Extreme events Impact on the hydroelectric system due to landslides Damage due to landslides Damage due to landslides Landslides in areas with grids Disruption due to pipe break for landslide Impacts on assets and services in cities with high hydrogeological risk Transportation infrastructures damage due to landslide Safety impacts on workworn in cities with high hydrogeological risk Relevant Little/less relevant To be monitored Not exposed Management methodology, which identifies and evaluates risks as a difference to the Strategic Plan’s objectives and forecasts. [AR11c] The table below provides the valuation assumptions for each physical risk identified as material and the related geographic information of the exposed assets. The analysis of physical risks is based on the site-specific geospatial coordinates of the company’s locations, where the risk is closely linked to site-specific exposure. [AR11b] Climate risks and physical opportunities are identified on the basis of three timeframes: short-term, corresponding to the budget year; medium-term, from two to five years; long-term, five or more years and until 2035. The choice of these timeframes was based on the analysis of the climatic, economic, energy and regulatory reference context (hereinafter referred to as scenario analysis). These definitions of time horizons are consistent with and are reflected in the Strategic Plan and the Enterprise Risk Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 131 Table 15 Physical risks Code Risk/opportunity Assumptions of evaluation of the risk/opportunity E1_1 Change in the precipitation event regime Reduction in production for each of the Group’s hydroelectric auctions compared to the Business Plan forecasts - due to an unfavourable change in average rainfall. To assess the impact of the variability of hydroelectric production, the historical volume series was analysed. The historical volatility and probability of occurrence (estimated through 10,000 Monte Carlo simulations based on a lognormal distribution) were applied to the volumes of the Plan period to calculate the volumetric change, which was then used to estimate the economic impact. The lower production is valued with the energy price values provided for in the energy scenario of the Business Plan. Geographical information The risk includes all the hydroelectric plants of the A2A Group and the Acinque Group in Lombardy (Valtellina, Valchiavenna, Valcamonica), Friuli and Calabria. E1_2 Resilience of electricity distribution grids Regarding the risk, the reputational impact is considered prevalent. The opportunity is estimated as a forecast of Plan EBITDA related to planned investments to maintain and develop the electricity grid. Geographical information The physical component of the risk concerns the distribution network in Milan. The transition component also affects other areas but is particularly important for the Milan network. E1_3 Resilience of drinking water distribution networks Regarding the risk, the reputational impact is considered prevalent. The opportunity is estimated as a forecast of Plan EBITDA relating to investments to mitigate the effects of drinking water scarcity. Geographical information The risk affects distribution networks in the province of Brescia: mountain municipalities are more vulnerable than lowland ones because their water supply sources are more exposed to fluctuations in rainfall and, consequently, to periods of drought. E1_4 Extreme weather phenomena For existing plants, the probability of events related to extreme weather phenomena was estimated based on information regarding exposure to acute weather phenomena made available by recognised institutions and/or research organisations, information contained in Risk Assessment reports prepared by insurance brokers, as well as analyses of claims that have occurred in the recent past on the Group’s assets, in addition to the knowledge of the plants and the territory of the managers of the plants in question. In particular, ISPRA’s IdroGEO platform (https://beta.idrogeo.isprambiente. it/app/) was used, which provides national hazard mapping for landslides and floods under different scenarios. The analysis is based on the site-specific geospatial coordinates of the company’s locations, where the risk is closely linked to a site- specific exposure. The analysis developed allowed for the quantitative estimation of the residual risk to which the A2A Group’s assets are subject, taking into consideration the deductibles for direct and indirect damages provided for in the insurance contract. The analyses were carried out for almost all assets owned or managed by the A2A Group. As for the new plants under the Strategic Plan 2025-2035, an estimate has been made of the risks to which the EBITDA and Capex included in the Plan are exposed, in relation to the development of the pipeline (in particular technologies for electricity generation from renewable sources, storage systems and repurposing of existing plants). The methodology adopted for the economic quantification of risks is similar to that used for existing plants, but in this case the probability and impact have been estimated considering the year-on-year progress of the projects undertaken throughout the entire Plan period. Geographical information Transversal risk, please refer to the distribution of plants owned or managed by the A2A Group throughout the country. 132 A2A Report on Operations 2024 Sustainability Statement In the following figures, the previously described physical risks and opportunities are summarised on the impact-probability heatmap. Figur 4 2 1 1 23 4 3 RISKS 1 1 2 3 4 5 2 5 4 3 E1_1 Change in precipitation regime R/O E1_2 Resilience of electricity distribution networks R/O E1_3 Scarcity of water resources for drinking purposes R/O E1_4 Extreme weather events R LEGENDA RISKS Impact level: 1 = irrelevant 2 = slightly relevant 3 = moderate 4 = significant 5 = critical OPPORTUNITIES Livello di impatto 1 = irrelevant 2 = slightly relevant 3 = moderate 4 = significant 5 = strategic� 1 = Unlikely 0% 5% 2 = Hardly possible 5% 25% 3 = Possible 25% 50% 4 = Probable 50% 75% 5= Very probable 75% For economic-financial risks and opportunities, the impact scales refer to effects on average annual EBITDA, downside for risks and upside for opportunities. Level 4 corresponds to impacts greater than approximately 20 M€/year, while Level 5 corresponds to impacts g reater than approximately 50 M€/year.� Note: The margins of opportunities E1_2 and E1_3 are already included in the forecasts of the Industrial Plan. PROBABILITY LEVEL MIN MAX TYPE OF IMPACT Reputational Impact Economic-Financial Impact IMPACT 1 1 2 3 4 5 2 5 4 3 IMPACT PROBABILITY PROBABILITY OPPORTUNITIES On the basis of the above, it should be noted that the physical climate risks with the most significant potential economic-financial impact are related to changes in the water resource available for hydroelectric production, as a result of both potential changes in the distribution of precipitation over the year and the potential reduction in the water reserve accumulated in the form of snowpack (Snow Water Equivalent) \- due to rising average and maximum air temperatures. The most significant climate opportunities are linked to possible favourable variations in the trend of hydroelectric production compared to the Plan forecasts (statistical analysis of historical data from recent years has shown significant volatility in hydroelectric production), the carrying out of remunerated investments in the adaptation and upgrading of the electricity distribution network (margins already included in the forecasts of the Business Plan) and the carrying out of remunerated investments in the mitigation of the effects caused by the scarcity of water resources for drinking (margins already included in the forecasts of the Business Plan). [AR11d, 21] The identification of climate-related hazards and the assessment of exposure and sensitivity are based on high-emission climate scenarios. Data from multiple simulations were acquired through the Dataclime platform of CMCC (Euro-Mediterranean Centre for Climate Change). These simulations were carried out using regional climate models which, starting from global-scale simulations, derive information on expected climate parameters on a local or regional scale under different scenarios of greenhouse gas concentration and emission levels, known as Representative Concentration Pathways, RCP: Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 133 landslides. Hydrogeological Structure Plans are drawn up by the District Basin Authorities and the Autonomous Provinces of Trento and Bolzano for the territories under their jurisdiction. The ISPRA national mapping of hydraulic hazard areas is related to the 3 scenarios: high hydraulic hazard with return time between 20 and 50 years (frequent floods); medium hazard with return time between 100 and 200 years (infrequent floods); low hazard (low probability of floods or extreme event scenarios). The source of the data are the PGRAs drawn up by the District Basin Authorities pursuant to Leg. Decree 49/2010 (transposition of Floods Directive 2007/60/EC). The risk indicators for landslides and floods are returned on a national, regional, provincial, municipal and macro-geographical basis. Transition risks and opportunities [20c] Climate risks and material transition opportunities for the A2A Group are identified and assessed for the purposes of the financial materiality analysis process. Transitional events that may give rise to climate risks are identified through the analysis of the scenario and the regulatory, market, technological, macroeconomic and geopolitical context, carried out by dedicated company structures and interviewed during the periodic Risk Assessment. Significant transition events identified for the A2A Group are an integral part of the description of material transition climate risks identified and assessed by the Group. For more information on the description of transition and opportunities, please refer to the E1 ESRS E2 SBM-3 disclosure requirement. [AR12c, 21] The transition events considered for the identification and assessment of climate risks are based on CO 2 emission reduction policies in the context of the energy transition. In particular, we consider the policies and regulatory framework of the Green Deal, which has the overall objective of achieving climate neutrality in Europe by 2050. [AR12a] Climate transition risks and opportunities are also identified based on three timeframes: short-term, corresponding to the current and next year; medium-term, from two to five years; long-term, five or more years and until 2035. The choice of these timeframes was based on the analysis of the climatic, economic, energy and regulatory reference context (hereinafter referred to as scenario analysis). These definitions of time horizons are consistent • “Aggressive Mitigation” (RCP2.6), characterised by peak emissions in 2020, steadily decreasing until reaching “zero emissions” by 2100; • “Stabilisation” (RCP4.5), characterized by peak emissions in 2040, decreasing over the years, reaching levels below current levels by 2070; carbon dioxide atmospheric concentrations ill stabilize by 2100 at about twice pre-industrial levels; • “High emissions” (RCP8.5), characterised by growth in emissions at current rates that will lead to atmospheric CO 2 concentrations triple or quadruple pre-industrial levels (280 ppm) by 2100. These climate scenarios were used to make forecasts for the Heating Demand Plan. These forecasts are based on the prediction of a chronic rise in average temperatures corresponding to the RCP 4.5, and to quantify the risk/opportunity associated with decreases/ increases in sales in the less favourable (RCP8.5) and more favourable (RCP2.6) scenarios. With the use of climate scenarios in the Plan, the risk of reduced sales of thermal energy for heating due to milder autumns and winters was reduced and found to be non- material. The risk assessment of acute climate-related hazards was carried out with a degree of detail corresponding to the individual asset and identifying the most critical acute phenomenon for each. The probability of occurrence was based on information regarding exposures to acute weather phenomena made available by recognised institutions and/or research bodies, information contained in Risk Assessment reports prepared by insurance brokers, as well as analyses of claims made in the recent past. In particular, ISPRA’s IdroGEO platform was used, which provides national hazard mapping for landslides and floods. The ISPRA (Institute for Environmental Protection and Research) national mapping of landslide hazard areas in the Hydrogeological Structure Plans (Piani di Assetto Idrogeologico - PAI) is carried out using a harmonised legend in five classes for the entire national territory: very high hazard (P4), high (P3), medium (P2), moderate (P1) and attention areas (AA). Hazardous areas consider, in addition to landslides that have already occurred, also the areas where these phenomena may develop and the areas potentially susceptible to new 134 A2A Report on Operations 2024 Sustainability Statement with and are reflected in the Strategic Plan and the Enterprise Risk Management methodology, which identifies and evaluates risks as a difference to the Strategic Plan’s objectives and forecasts. [AR12b] During the assessment of the risks and opportunities of transition, the extent to which the company’s assets and activities may be exposed and its sensitivity to the identified transition events was verified. The table below describes the assumptions for assessing the risks of transition opportunities detailed in the disclosure requirement E1 ESRS E2 SBM-3, as well as geographic information on the assets exposed to these risks/opportunities. Table 16 Transition risks Code Risk/opportunity Assumptions of evaluation of the risk/opportunity E1_5 ETS Directive Revision There is still a lot of uncertainty as to how this will apply to waste-to-energy plants in the new ETS. The estimate took into account the CO 2 emission forecasts of the waste- to-energy plants, the EUA price forecasts of the Plan Scenario and an assumption of the transfer of the cost of the allowances to the disposal tariff. Only emissions from the fossil carbon fraction in waste were considered. Geographical information The risk concerns the urban waste-to-energy plants owned or managed by the Group and located in the municipalities of Milan, Brescia, Bergamo, Como, Cremona, Corteolona (PV), Parona (PV), Acerra (Metropolitan City of Naples), as well as plants subject to development initiatives. E1_6 E-Mobility Plan Targets The A2A Group has developed and consolidated a methodology for estimating risks on the achievement of Plan targets. For each of the Plan’s initiatives, the amount at risk is estimated as the reduction in EBITDA that could occur, year on year, in the event of delay or cancellation of the specific initiative, while the probability of occurrence is estimated considering a set of risk factors, including, for example, delays in the authorisation process, contextual issues, relations with counterparties, etc.), appropriately weighted and applied to the individual initiative. E1_7 Biomass Plan Targets E1_8 EUAs emission allowances Sensitivity analyses are carried out which estimate the change in the Group’s EBITDA as a result of a price variance of the EUA equal to +/-10 €/t compared to the Business Plan forecast. Sensitivities are made with different assumptions about the correlation between the EUA price and the single national electricity price (PUN). The impact on EBITDA is calculated in the scenario that the Group considers most likely in the energy transition context, which sees, over the plan years, a progressively decreasing correlation between the value of the PUN and the value of the EUAs. Geographical information Risk/opportunity across the Group’s power generation plants. E1_9 Energy efficiency systems The opportunity is estimated as a forecast of Plan EBITDA related to planned investments in the development of the efficiency business. E1_10 Sustainable Finance Framework The reputational impact is considered prevalent. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 135 [AR12d] The company’s assets and activities that are incompatible with the transition to a climate-neutral economy, or that require significant efforts to be made in order to become compatible, will be communicated as part of the Transition Plan that will be published in 2025. [AR15] Finally, it should be noted that the different climate scenarios used were applied in order to carry out sensitivity analyses aimed at understanding the variability of the emission profile in the short, medium and long term. In the following figures, the previously described transition risks and opportunities are summarised on the impact-probability heatmap. Figur 5 5 7 9 8 6 8 1 1 2 3 4 5 2 5 4 3 E1_5 Revision of the ETS Directive R E1_6 E-Mobility Plan Target R E1_7 Biomass Plan Target R E1_8 Emission Permits R/O E1_9 Energy Efficiency Systems O E1_10 Green Financing Framework O For economic-financial risks and opportunities, the impact scales refer to effects on average annual EBITDA, downside for risks and upside for opportunities. Level 4 corresponds to impacts greater than approximately 20 M€/year, while Level 5 corresponds to impacts great er than approximately 50 M€/year.�� Note: The margins of opportunities E1_2 and E1_3 are already included in the forecasts of the Industrial Plan. 1 1 2 3 4 5 2 5 4 3 10 RISKS IMPACT IMPACT PROBABILITY PROBABILITY OPPORTUNITIES TYPE OF IMPACT Reputational Impact Economic-Financial Impact LEGENDA RISKS Impact level: 1 = irrelevant 2 = slightly relevant 3 = moderate 4 = significant 5 = critical OPPORTUNITIES Livello di impatto 1 = irrelevant 2 = slightly relevant 3 = moderate 4 = significant 5 = strategic� 1 = Unlikely 0% 5% 2 = Hardly possible 5% 25% 3 = Possible 25% 50% 4 = Probable 50% 75% 5= Very probable 75% PROBABILITY LEVEL MIN MAX Based on the above, it is clear that the climatic risks with the most significant potential economic-financial impact are linked to the possibility of not fully achieving the economic objectives of the Plan regarding the development of plants for the production of biogas and biomethane from biomass. The most significant climate opportunities are related to the adoption of sustainable finance instruments and the development of energy efficiency services (margins already included in the Business Plan forecasts). 136 A2A Report on Operations 2024 Sustainability Statement The production of electricity from hydroelectric plants, whether reservoir or flowing water, depends to a large extent to annual and seasonal rainfall patterns. Less accumulated precipitation events throughout the year result in less water availability for the power plants. In particular, low snowfall events result in lower water reserves that accumulate during the winter and that become available during the normally less rainy summer season. The way in which rainfall is distributed over the months, is also important for hydropower production, as rainfall events with a more uniform pattern throughout the year mean a better chance of exploitation compared to more intense rainfall concentrated in short periods. The resulting risk for the A2A Group is both a reduced availability of resources for hydroelectric production and the need to release greater quantities of water from reservoirs to make it available for other uses, e.g., agriculture, due to the increased demands and the needs of other stakeholders. The Group companies operating in the integrated water service are exposed to the risk of interruptions in the drinking water distribution service caused by the potential scarcity of water resources mainly as a result of any prolonged periods of drought, which could lead to the depletion of sources of supply that are more sensitive to seasonal fluctuations and rainfall patterns, normally located in mountainous municipalities. The consequences of this risk for the Group are represented by possible reputational impacts in relation to a possible lowering of the level of public satisfaction, as well as economic impacts for possible penalties in case of non-compliance with the service quality indicators established by the Authority. Finally, acute or chronic water shortages resulting from any changes in the rainfall event regime in the short and medium/long term also entail minor risks for other businesses and activities of the A2A Group, including district heating, thermoelectric production, biomass plants and waste treatment plants. It should also be noted that, taking the World Research Institute’s “Aqueduct” tool as a reference, regions characterised by water risk, The climate scenario analysis used in the risk assessment is the strategic plan scenario and is therefore the same as the reference scenario for the Financial Statements. E2 ESRS 2 IRO-1 Description of the processes to identify and assess material Pollution-related impacts, risks and opportunities [11a, 11b, AR9] During 2024, the A2A Group updated its double materiality analysis process in accordance with the requirements of this ESRS standard, analysing its assets, activities and business model to identify material impacts, risks and opportunities related to Pollution, in its own operations and in the upstream and downstream value chain. In fact, the reporting and information discussed in the following paragraphs refer to activities that can generate significant effects by directly affecting the environment and natural resources. E3 ESRS 2 IRO-1 Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities [8a] During 2024, the A2A Group updated its double materiality analysis process in accordance with the requirements of this ESRS standard, analysing its assets, activities and business model to identify, among others, material impacts, risks and opportunities related to water and marine resources, in its own operations and in the upstream and downstream value chain. The activities of the A2A Group and some of its businesses (e.g. activities related to hydroelectric power plants and the integrated water cycle management service) depend significantly on the availability of water resources. The main dependencies and risks derive from a possible acute or chronic lack of water resulting from potential changes in the precipitation event regime in the short and medium/long term due to climate change. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 137 constant dialogue and joint management of the water resource, it was possible to support the territory at a particularly critical time. Potential investments for the identification of long-term structural solutions for the benefit of the sector were also shared and proposed. In addition, a study was prepared in collaboration with Svimez (Association for the Development of Industry in Southern Italy) entitled “A supply chain perspective for water protection in Calabria”. The document illustrates the main data on the water crisis in Calabria and the potential positive impact on the territory - both in socio-economic terms and in terms of conservation of the resource - of virtuous industrial management upstream, at the level of hydroelectric power stations, and downstream with water networks. The dissemination of the study will be accompanied in 2025 by intense dialogue and collaboration with various local stakeholders (from universities to associations and committees) in order to contribute to a constructive debate on the topic of water. Initiatives will also be held aimed mainly at raising awareness among young people, especially university students, through visits to the facilities and interactive discussions on water resources. E4 ESRS 2 IRO-1 Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks and opportunities [17a, 17b, 17c, 17d] The Group promotes the protection of the landscape heritage and the flora and fauna of the territories in which its plants or operating sites are located. A2A is actively committed to protecting biodiversity and not interfering with the protected area system through its operations. In addition, in order to minimize the impact on biodiversity and ecosystems in new intervention areas, the Group carries out constant analyses, monitoring and dialogue with local communities and other stakeholders, aimed at incorporating any critical issues and considerations on the Group’s operations in the territories of reference. The analysis of the A2A Group’s activities, its including those with high water stress, were mapped. For the determination of these areas, the geographical locations of the Group’s activities were taken into consideration in relation to the stress and risk maps available in the “Aqueduct” tool, taking into account the “high” and “extremely high” levels of the “Water stress” and “Overall water risk” parameters. [8b] The involvement of the areas and communities affected by the Group’s activities and on which these may have an impact is one of the key elements of the A2A Group’s Stakeholder Engagement model. Since 2015, the Group has been carrying out a programme of listening and dialogue with local stakeholders, as described in the ESRS 2 SBM-2 disclosure requirement, seeking to understand the specific characteristics of local communities and to create debate on the most relevant topics for the development of A2A and its stakeholders, including those related to water resources. In order to respond to the impact linked to the reduction in the availability of water resources due to its destination to hydroelectric plants, in 2024, in Calabria, the Group, which holds hydroelectric plants in the region, has worked constantly with the relevant institutional bodies to guarantee and meet irrigation and drinking water needs, as the region was affected by a serious water crisis during the year. In fact, the Region of Calabria has set up a permanent Control Room in which A2A has guaranteed its willingness to respond to emergencies, actively contributing to the search for solutions with all the stakeholders present. Between February and November 2024, A2A therefore participated in the four meetings of the technical committee of the Control Room in the presence of all the local stakeholders (Region, Provinces, Municipalities, Land Reclamation Consortium, Arrical – Waste and Water Resources Authority of Calabria - and Sorical – Calabria Water Resources Company, Civil Protection and Basin Authority) as well as to the order and safety committees at the Prefecture of Crotone and a series of technical meetings with the offices of the Region. Thanks to 138 A2A Report on Operations 2024 Sustainability Statement groups. Within these documents, actions carried out to protect biodiversity are also reported, particularly in areas where there are facilities and services that can have the greatest impact. In addition to the activities carried out within the Multi-stakeholder Forums, the Group has developed two projects in the Milan area, managed by the Municipal Administration and supported by A2A: • the maintenance of the green areas of two roundabouts, • the ForestaMI project, which aims to plant 3 million trees by 2030, with the goal of increasing natural capital, improving air quality and city life, and counteracting the effects of climate change. Furthermore, in 2024 the Group supported a research project of the University of Gastronomic Sciences in Pollenzo in the field of safeguarding and preserving insect biodiversity in selected rural settings in Northern Italy. The project involved the voluntary self-selection of nine first- and second-year students of the three-year degree course in Gastronomic Sciences and Cultures at Pollenzo. This work has led to the identification of two virtuous examples of food production according to agroecological practices and principles that support local populations and local insect diversity, while reflecting on the ways in which this entomological diversity supports these food productions. In particular, the first group has conducted research in the Monferrato foodscape, focusing on a butterfly (swallowtail or Papilio machaon L.) and a spider and the relations between these two species as well as the management of meadows and hazelnut groves in the area; the second group focused instead on the relations between bumblebees, potatoes and the landscape in the municipality of Entracque, in the Stura Valley. business model and value chain led to the identification of a material impact. As part of the Group’s enterprise risk management process and the related periodic assessments carried out, no critical issues were found related to any physical, transitional or systemic dependencies or risks within biodiversity, ecosystems and related services, at its sites and along the value chain. [18] During 2024, the Group did not make use of the scenario analysis concerning biodiversity and ecosystems scenario analysis to inform the identification and assessment of material risks and opportunities over short-, medium- and long-term time horizons . [17e] The involvement of the communities affected by the Group’s activities and the situations on which they may have an impact is one of the key elements of the Group’s Stakeholder Engagement model. Since 2015, A2A has been carrying out a programme of listening and dialogue with local stakeholders. In particular, as described in the ESRS 2 SBM-2 disclosure requirement, in 2024, engagement activity focused vertically on two topic streams, one of which is the protection of biodiversity. For each territory, local stakeholders who are aware of the territory’s critical issues and areas for improvement on this specific topic were selected and invited to participate in working tables. The discussion with the working groups on biodiversity focused on the level of protection of living species and endemic ecosystems present in the territories, with the aim of identifying collective actions to raise awareness in the territory about the safeguarding of local ecosystems, filling information gaps and taking concrete action to protect their specific characteristics. A Territorial Sustainability Report is published for each area involved in the listening and dialogue activities through the work Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 139 conducted to assess the degree of citizen satisfaction and gather any feedback regarding the impact of A2A on the communities involved in this activity. Following a process of continuous improvement, A2A periodically collects data useful for understanding the needs, observations and suggestions of citizens, verifying the effectiveness of services, and identifying the need to start new services or improve existing ones. These surveys aim to assess customer satisfaction, measure the gap between expected and perceived quality, map strengths and weaknesses and identify new needs. The surveys are carried out by accredited research institutes on statistically representative samples and are often aimed at both domestic and non-domestic users, in order to investigate the satisfaction of the service offered as accurately as possible. The surveys are carried out annually and every two years, allowing for an analysis of trends compared to previous surveys. For 2024, the average CSI (Customer Satisfaction Index) in the areas where the Group provides the environmental hygiene service was 72.6 (on a scale of 1 to 100). In particular, in the province of Monza Brianza, where the service is provided to a catchment area of 27 municipalities, the opinion of the citizens was good on the collection of green waste at home (82.1), on the collection of bulky waste at home and at the ecological platform (81.6), on separate waste collection (78.6) and on the contact channels (77.3). [19]. The Group has sites located in or near biodiversity-sensitive areas. The identification of assets that directly interfere with biodiversity-sensitive areas is a key step in implementing measures to identify, prevent, mitigate and monitor any associated negative impacts. To date, there has been no evidence of a significant negative influence from the Group’s activities on these protected areas. Further assessments on the matter will be conducted and integrated into the Biodiversity Action Plan, which is expected to be drafted by December 2025. E5 ESRS 2 IRO-1 Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities [11a] During 2024, the A2A Group updated its double materiality analysis process in accordance with the requirements of this ESRS standard, analysing its assets, activities and business model to identify material impacts, relevant risks and opportunities related to the use of resources and the circular economy, in its own operations and in the upstream and downstream value chain. [11b] In areas where the environmental hygiene service is provided, surveys are periodically 140 A2A Report on Operations 2024 Sustainability Statement ESRS 2 IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement Table 17 [56] List of datapoints in transversal and topical standards that derive from other EU legislation Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU climate law reference Material/ Non-material Reference Page ESRS 2 GOV-1 Board’s gender diversity paragraph 21 (d) Indicator number 13 of Table #1 of Annex 1 Commission Delegated Regulation (EU) 2020/1816, Annex II Not subject to materiality Page 89 ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) Delegated Regulation (EU) 2020/1816, Annex II Not subject to materiality Page 89 ESRS 2 GOV-4 Statement on due diligence paragraph 30 Indicator number 10 Table #3 of Annex 1 Not subject to materiality Page 96 ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i Indicators number 4 Table #1 of Annex 1 Article 449a of Regulation (EU) no. 575/2013; Commission Implementing Regulation (EU) 2022/2453, Table 1 - Qualitative Information on Environmental Risk and Table 2 - Qualitative Information on Social Risk Delegated Regulation (EU) 2020/1816, Annex II Not subject to materiality Page 100 ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii Indicator number 9 Table #2 of Annex 1 Delegated Regulation (EU) 2020/1818(7), Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II Not subject to materiality Not applicable Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 141 Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU climate law reference Material/ Non-material Reference Page ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv Annex I, table 1, indicator no. 14 Article 12, paragraph 1, of Delegated Regulation (EU) 2020/1818 and Annex II of Delegated Regulation (EU) 2020/1816 Not subject to materiality Not applicable ESRS 2 SBM-1 Involvement in activities related to tobacco cultivation and production, paragraph 40, paragraph d), point iv Article 12, paragraph 1, of Delegated Regulation (EU) 2020/1818 and Annex II of Delegated Regulation (EU) 2020/1816 Not subject to materiality Not applicable ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 Regulation (EU) 2021/1119, Article 2 (1) Material Page 201 ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book- Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2 Material Page 201 142 A2A Report on Operations 2024 Sustainability Statement Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU climate law reference Material/ Non-material Reference Page ESRS E1-4 GHG emission reduction targets, paragraph 34 Indicator number 4 Table #2 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 6 Material Page 213 ESRS E1-5 Energy consumption from fossil fuels disaggregated by source (high climate impact sectors only), paragraph 38 Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex 1 Material Page 217 ESRS E1-5 Energy consumption and mix, paragraph 37 Indicator number 5 Table #1 of Annex 1 Material Page 217 ESRS E1-5 Energy intensity associated with activities in high climate impact sectors, paragraphs 40 to 43 Indicator number 6 Table #1 of Annex 1 Material Page 217 ESRS E1-6 Gross Scope 1, 2, 3 and total GHG emissions, paragraph 44 Indicators number 1 and 2 Table #1 of Annex 1 Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) Material Page 218 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 143 Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU climate law reference Material/ Non-material Reference Page ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 Indicators number 3 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 8(1) Material Page 218 ESRS E1-7 GHG removals and carbon credits, paragraph 56 Regulation (EU) 2021/1119, Article 2(1) Material Page 226 ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II Material Disclosure subject to phase-in ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c). Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book - Climate change physical risk: Exposures subject to physical risk. Material Disclosure subject to phase-in 144 A2A Report on Operations 2024 Sustainability Statement Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU climate law reference Material/ Non-material Reference Page ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy- efficiency classes paragraph 67 (c). Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34; Template 2:Banking book -Climate change transition risk: Loans collateralised by immovable property - Energy efficiency of the collateral Material Disclosure subject to phase-in ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69 Delegated Regulation (EU) 2020/1818, Annex II Material Disclosure subject to phase-in ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 Material Page 231 ESRS E3-1 Water and marine resources paragraph 9 Indicator number 7 Table #2 of Annex 1 Material Page 236 ESRS E3-1 Dedicated Policy, paragraph 13 Indicator number 8 Table 2 of Annex 1 Material Page 236 ESRS E3-1 Sustainable oceans and seas paragraph 14 Indicator number 12 Table #2 of Annex 1 Not material - ESRS E3-4 Total water recycled and reused paragraph 28 (c) Indicator number 6.2 Table #2 of Annex 1 Material Page 239 ESRS E3-4 Total water consumption in m3 per net revenue on own operations paragraph 29 Indicator number 6.1 Table #2 of Annex 1 Material Page 239 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 145 Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU climate law reference Material/ Non-material Reference Page ESRS 2- IRO 1 - E4 paragraph 16 (a) i Indicator number 7 Table #1 of Annex 1 Not subject to materiality Page 137 ESRS 2 IRO-1 - E4 paragraph 16 (b) Indicator number 10 Table #2 of Annex 1 Not subject to materiality Page 137 ESRS 2 IRO-1 - E4 paragraph 16 (c) Indicator number 14 Table #2 of Annex 1 Not subject to materiality Page 137 ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b) Indicator number 11 Table #2 of Annex 1 Material Page 245 ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) Indicator number 12 Table #2 of Annex 1 Not material \- ESRS E4-2 Policies to address deforestation paragraph 24 (d) Indicator number 15 Table #2 of Annex 1 Material Page 245 ESRS E5-5 Non-recycled waste paragraph 37 (d) Indicator number 13 Table #2 of Annex 1 Material Page 258 ESRS E5-5 Hazardous Waste and Radioactive Waste, paragraph 39 Indicator number 9 Table #1 of Annex 1 Material Page 258 ESRS 2 – SBM3 – S1 Risk of incidents of forced labour paragraph 14 (f) Indicator number 13 Table #3 of Annex I Material Page 263 ESRS 2 - SBM3 \- S1 Risk of incidents of child labour paragraph 14 (g) Indicator number 12 Table #3 of Annex I Material Page 263 146 A2A Report on Operations 2024 Sustainability Statement Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU climate law reference Material/ Non-material Reference Page ESRS S1-1 Human rights policy commitments paragraph 20 Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I Material Page 264 ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21 Delegated Regulation (EU) 2020/1816, Annex II Material Page 264 ESRS S1-1 processes and measures for preventing trafficking in human beings paragraph 22 Indicator number 11 Table #3 of Annex I Material Page 264 ESRS S1-1 workplace accident prevention policy or management system paragraph 23 Indicator number 1 Table #3 of Annex I Material Page 264 ESRS S1-3 grievance/ complaints handling mechanisms paragraph 32 (c) Indicator number 5 Table #3 of Annex I Material Page 273 ESRS S1-14 Number of fatalities and number and rate of work\- related accidents paragraph 88 (b) and (c) Indicator number 2 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Material Page 292 ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) Indicator number 3 Table #3 of Annex I Material Page 292 ESRS S1-16 Unadjusted gender pay gap, paragraph 97, (a) Indicator number 12 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Material Page 294 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 147 Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU climate law reference Material/ Non-material Reference Page ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) Indicator number 8 Table #3 of Annex I Material Page 294 ESRS S1-17 Incidents of discrimination paragraph 103 (a) Indicator number 7 Table #3 of Annex I Material Page 295 ESR S1-17 Non-respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a) Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) Material Page 295 ESRS 2 SBM- 3 - S2 labour or forced labour in the value chain paragraph 11 (b) Indicators number 12 and n. 13 Table #3 of Annex I Material Page 298 ESRS S2-1 Human rights policy commitments paragraph 17 Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 Material Page 299 ESRS S2-1 Policies related to value chain workers paragraph 18 Indicator number 11 and n. 4 Table #3 of Annex 1 Material Page 299 ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) Material Page 299 ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19 Delegated Regulation (EU) 2020/1816, Annex II Material Page 299 148 A2A Report on Operations 2024 Sustainability Statement Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU climate law reference Material/ Non-material Reference Page ESRS S2-4 Human rights issues and incidents in its upstream and downstream value chain, paragraph 36 Indicator number 14 Table #3 of Annex 1 Material Page 302 ESRS S3-1 Political Commitments on Human Rights, paragraph 16 Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 Material Page 310 ESRS S3-1 non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines paragraph 17 Indicator number 10 Table #1 Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) Material Page 310 ESRS S3-4 Human Rights Issues and Incidents, paragraph 36 Indicator number 14 Table #3 of Annex 1 Material Page 313 ESRS S4-1 – Policies related to consumers and end-users, paragraph 16 Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 Material Page 329 ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) Material Page 329 ESRS S4-4 Human Rights Issues and Incidents, paragraph 35 Indicator number 14 Table #3 of Annex 1 Material Page 334 ESRS G1-1 United Nations Convention against Corruption, paragraph 10, (b) Indicator number 15 Table #3 of Annex 1 Material Not applicable Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 149 Disclosure Requirement and related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU climate law reference Material/ Non-material Reference Page ESRS G1-1 Protection of whistle- blowers paragraph 10 (d) Indicator number 6 Table #3 of Annex 1 Material Not applicable ESRS G1-4 Fines for violation of anti- corruption and anti-bribery laws paragraph 24 (a) Indicator number 17 Table #3 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II) Material Page 343 ESRS G1-4 Standards of anti- corruption and anti- bribery paragraph 24 (b) Indicator number 16 Table #3 of Annex 1 Material Page 343 [59] With reference to the Impacts, Risks and Opportunities found to be material as a result of the materiality analysis process, set out in ESRS 2 IRO-2 and SBM-3, the Group discloses information in accordance with the disclosure requirements (including application requirements) related thereto in the corresponding ESRS topics. In addition, in order to ensure continuity in the representation of the company’s performance for the financial stakeholders, the relevant KPIs used in the Group’s Sustainable Finance instruments are shown below, together with their performance over the two-year period 2023-2024. 150 A2A Report on Operations 2024 Sustainability Statement Table 18 ESRS/ Topic/ Subtopic Risk Impact KPIs u.m. 2024 2023 ESRS E1/Climate Change/Climate change mitigation \- Potential economic and financial impacts related to the possible failure to fully achieve Business Plan targets on the development initiatives established for the Company \- Generation of direct GHG emissions related to the activities carried out in the Group’s offices and sites Installed capacity of renewable energy sources (RES) Solar capacity GW 0.34 0.32 Wind power capacity GW 0.27 0.27 Water capacity GW 1.95 1.95 Installed renewable capacity (B2B) GW 0.02 0.02 Total installed capacity of renewable energy sources GW 2.58 2.56 ESRS E1/ Climate Change/ Climate change adaptation \- Potential interruptions of the electricity distribution service, such as to cause possible impacts on the overall image of the Company and the Group and economic damages for failure to achieve the objectives set by ARERA. \- Contribution to the acceleration of the energy transition through sustainable infrastructure development Installed capacity of the electricity grid Total installed capacity of the electricity grid MVAr 5,155 5,016 ESRS E1/Climate Change/Climate change mitigation \- Potential economic and financial impacts related to the possible failure to fully achieve Business Plan targets on the development initiatives established for the Company \- Generation of direct GHG emissions related to the activities carried out in the Group’s offices and sites Emission intensity GES emission intensity of Scope 1 + Scope 2 (market-based) gCO 2 eq /kWh 258 310 ESRS E2/ Pollution/All subtopics \- Potential impacts on the Group’s overall image and economic-financial situation as a result of possible non- compliance - real or alleged \- with regulations and/or authorisations or possible environmental damage caused by accidents and/or the incorrect management of the Group’s activities. \- Generation of non-GHG pollutant emissions with consequent effects on air quality levels etc Basic internal audits Number of elementary internal audits related to the environmental component n 80 71 ESRS E4/ Biodiversity and ecosystems/ Direct impact drivers of biodiversity loss \- Potential damage to biodiversity caused by the interference of the Group’s activities with the protected and non-protected area system (soil damage, deforestation, water damage, Pollution, etc.) % of plants monitored in relation to potential impact on biodiversity Percentage of installations monitored % 100 100 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 151 ESRS/ Topic/ Subtopic Risk Impact KPIs u.m. 2024 2023 ESRS E5/Circular Economy/Waste \- The Group’s business plan entails, for A2A Ambiente, a development in certain business areas such as the materials recovery segment, OFMSW initiatives, new WTE, hazardous waste treatment plants, and M&A transactions. There is a risk that these business development objectives will not be achieved, with potential economic and image impacts at Group level. \- Potential environmental damage related to the generation of hazardous and non- hazardous waste and its improper disposal Waste treated in the Group’s material recovery plants Waste treated in the Group’s material recovery plants Mt 1,141 1,494 ESRS S1/Own Workforce/Health and Safety \- Potential reputational and economic impacts for the A2A Group resulting from any disputes regarding occupational diseases and/ or real or alleged non- compliance by the company in terms of health and health surveillance, involving personnel working for the Group, in the event of media coverage. The scenario also takes into account issues related to Covid-19 \- Occurrence of accidents at work, with consequent risks to the health and safety of employees, during the course of company activities Number of accesses to health promotion initiatives Number of accesses to health promotion initiatives n 13,180 11,605 ESRS S1/Own Workforce/Health and Safety \- Potential reputational and economic impacts for the A2A Group resulting from any disputes regarding occupational diseases and/ or real or alleged non- compliance by the company in terms of health and health surveillance, involving personnel working for the Group, in the event of media coverage. The scenario also takes into account issues related to Covid-19 \- Occurrence of accidents at work, with consequent risks to the health and safety of employees, during the course of company activities Percentage of companies retaining ISO45001 certification as at 31.12.2024 compared to companies already holding this certification as at 31.12.2023 (excluding consolidation changes such as mergers or transfers) Percentage of companies retaining certification % 100 100 ESRS S1/Own Workforce/Equal treatment and opportunities for all \- Potential impacts of a reputational nature for the A2A Group in connection with the partial failure to implement the diversity management policies that the company intends to develop, with the effect of generating less competitiveness as well as less attractiveness for high- potential resources in the coming years. \- Respect for diversity and promotion of an inclusive and meritocratic corporate climate thanks to company activities and initiatives that combat discrimination, including equal pay for women and men. Gender Pay Gap (Gross Annual Salary Difference between Men and Women) White collar % 92.1 91.6 Supervisor % 94.3 94.2 Executive % 98.5 101.6 152 A2A Report on Operations 2024 Sustainability Statement ESRS/ Topic/ Subtopic Risk Impact KPIs u.m. 2024 2023 ESRS S2/ Workers in the value chain/ Health and Safety \- Potential repercussions for the Group’s image as a result of serious or very serious accidents involving internal and/or external staff of third-party companies operating at the premises and operational sites, as well as visitors and third parties, and/or any real or alleged non-compliance by the company in terms of safety. The scenario also considers the risks to people’s well- being from weather and climate factors. \- Occurrence of accidents at work (e.g. fires and explosions), with consequent health and safety risks for workers in the value chain and violation of their rights as a result also of poor maintenance of plant and machinery Number of inspections at construction sites Number of inspections at construction sites n 7, 5 4 4 6,952 ESRS G1/ Business conduct/ Management of relations with suppliers including payment practices \- Contribution to the improvement of suppliers’ ESG performance and social and environmental impact in the communities in which they operate, including through qualification and selection policies that incorporate social and environmental sustainability criteria Percentage of the orders to Suppliers evaluated with ESG indicator (Ecovadis) Percentage of the order placed with suppliers evaluated with Ecovadis % 79 73 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 153 Minimum Disclosure Requirement MDR-P - Policies adopted to manage material sustainability matters The table below illustrates the policies adopted by the Group to manage the main sustainability issues. With these policies A2A aims to define the guidelines for guaranteeing a quality service and promoting sustainable management of its activities, in line with the commitments undertaken in the ESG sphere. Below you will find information on the content and scope of application, those responsible for its implementation, the international regulatory references, as well as instructions on how to access the documents. These policies are, therefore, a fundamental element of corporate governance, as they ensure transparency, consistency and effective dialogue with all stakeholders involved. Table 19 Policy Description of main contents Application scope Most senior level responsible for implementation and approval International standards met Policy availability Code of Ethics Defines the fundamental ethical principles, rules of conduct and responsibilities that the Group recognises, respects and assumes as a binding value and obligation Identifies the prerequisites aimed at ensuring that business activities are inspired by the principles of fairness, transparency, diligence, honesty, mutual respect, loyalty and good faith Any form of discrimination, corruption, forced or child labour is prohibited. Group Board of Directors of A2A S.p.A. (approval) Supervisory Board (monitoring of compliance with the Code) A2A S.p.A. and subsidiaries (implementation) United Nations Global Compact United Nations Universal Declaration of Human Rights Core Conventions of the ILO - International Labour Organisation OECD Guidelines for Multinational Enterprises. Publication on the website, company intranet Posting on notice board Adequate training programme Human rights policy Recognises the safeguarding of the dignity, freedom and equality of human beings, the protection of labour and trade union freedoms, health, safety, the environment and biodiversity. Any form of discrimination, corruption, forced or child labour is prohibited. Group(employees, managers, members of corporate bodies) Suppliers and business partners Other parties dealing with Group companies Board of Directors and executives of A2A S.p.A: (approval) A2A S.p.A. Group and subsidiaries (implementation) United Nations Universal Declaration of Human Rights Core Conventions of the ILO - International Labour Organisation OECD Guidelines for Multinational Enterprises United Nations Global Compact Publication on the company intranet for employees Publication on the A2A website for consultants, agents, suppliers and business partners Training programmes on the subject Diversity, Equity & Inclusion Policy Promotes the Group’s commitment to Diversity, Equity & Inclusion, for an inclusive and innovative climate, based on respect, ethics and equal opportunities, free of any cultural stereotypes, and aimed at combating any form of physical, verbal, digital abuse in the workplace Group(employees, managers, members of corporate bodies) Suppliers and business partners Other parties dealing with Group companies Group (monitoring, including through the implementation of the listening channel and the platform for collecting reports) Global Compact Publication on the corporate site 154 A2A Report on Operations 2024 Sustainability Statement Stakeholder Engagement Policy Promotes sustainable growth and the creation of shared value Increases corporate competitive advantage Provides a better understanding of the environment in which the Group operates and the resulting risks and opportunities Informs, educates and persuades stakeholders to improve decision-making processes that impact the company (e.g. authorisations, operating permits) It builds a climate of trust. All Group Stakeholders Structures dedicated to stakeholder relations, with clear governance based on the geographical area of stakeholders (implementation) This Policy does not refer to specific international provisions Publication on the corporate site Responsible Procurement Policy Selection of suppliers through sustainability criteria Promotion of ESG practices along the supply chain Protection of human and social rights Group Suppliers, collaborators and business partners Board of Directors of A2A S.p.A. (approval) A2A S.p.A. Group and subsidiaries (implementation) United Nations Guiding Principles on Business and Human Rights ILO Declaration on Fundamental Principles and Rights at Work OECD Guidelines for Multinational Enterprises Publication on the corporate site Anti-Corruption Policy Providing a systematic framework in the fight against corrupt phenomena Disseminating the principles and rules to be followed to exclude corrupt conduct of any kind, direct and indirect, active and passive, including in the form of incitement Group All those working for or on behalf of Group Companies (Supervisory Board and Corporate Bodies) The Board of Directors of A2A S.p.A. (approval) A2A S.p.A. Group and subsidiaries (implementation) Anti-Corruption Law Organisation for Economic Cooperation and Development Convention on combating bribery of foreign Public Officials in international business transactions United Nations Convention against corruption Legislative Decree 231/2001 “Rules governing corporate criminal liability for companies and entities” “Ley Organica” no.5 of 22 June 2010; UK ‘Bribery Act’ Global Compact Publication on the corporate site Copy of the Anti- Bribery Policy issued to new recruits Employees are required to complete a training program within the first six months from the date of hiring and whenever deemed necessary, with different levels of detail based on the qualification of the recipients and their involvement in sensitive activities. Social Responsibility Policy Confirms the Group’s commitment to corporate social responsibility, outlining the various commitments and initiatives adopted by the Group Group Social Performance Team, consisting of Workers’ Representatives and Management (monitoring and implementation) Main international human rights and labour rights conventions SA8000 Publication on the corporate site Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 155 • the metrics, which make it possible to measure the effectiveness of the actions undertaken through clear and standardised indicators; • the targets, describing short, medium and long-term objectives and their alignment with corporate strategies and international regulatory references. The information provided reflects the Group’s commitment and progress in promoting the continuous adoption of responsible and sustainable business practices, measuring the impact generated in environmental, social and economic terms; this information is presented in the various sections of the document. Actions, metrics and targets In the various chapters of the disclosure, A2A has focused specifically on reporting the actions taken, the metrics adopted and the targets set for the management of the impacts, risks and opportunities (IROs) related to the material topics identified. These elements are in line with the ESRS requirements for each sustainability topic and consistent with the objectives set out in the Plan. In particular, the Group provides information on: • the actions, highlighting strategic initiatives taken to mitigate negative impacts, enhance positive ones and manage risks and opportunities; Whistleblowing Guidelines Ensuring compliance with the provisions of Leg. Decree 24/2023 on whistleblowing and ensuring the protection of persons who report violations Protecting the expression of freedom of expression and information Providing clear indications regarding the process of sending, receiving, analysing and handling reports A2A S.p.A. Group Companies subject to Management and Coordination General Manager (approval) Legal Affairs and Compliance; Internal Audit Regulation of the European Parliament no. 679 of 27 April 2016 Law no. 179 of 30 November 2017 “Provisions for the protection of the authors of reports of crimes or irregularities” Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 Legislative Decree no. 24 of 10 March 2023, implementing Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 Publication on the corporate site Biodiversity policy Protection and enhancement of biodiversity Adoption of mitigation measures and incentives to favour low- or zero-impact operational solutions All relevant stakeholders Group (implementation) Biodiversity Principle No Net Loss European Taxonomy criterion of “Do No Significant Harm” (DNSH) Publication on the corporate site QAS Policy Reaffirms the Group’s commitment to environmental protection, innovation and continuous improvement, health and safety of workers inside and along the value chain, and respect for human rights Group Chief Executive Officer (approval): This Policy does not refer to specific international provisions Publication on the corporate site 156 A2A Report on Operations 2024 Sustainability Statement European Taxonomy Description of the eligibility and alignment process In order to ensure compliance with the requirements of EU Regulation 2020/852, the A2A Group has implemented a specific process for identifying its “eligible” and “aligned” economic activities in accordance with the Regulation. Each economic activity has been evaluated to understand its environmental sustainability, as required by the Regulation. The rationale in the verification practice is translated into eligibility and alignment assessments that are carried out annually by the A2A Group: • Eligibility: After analyzing the Delegated Acts, the correspondence between the Group’s economic activities and those provided for by the Regulation is verified. If the activities carried out by the Group correspond to those listed in the technical sheets provided by the Regulation, they are considered eligible; • Alignment: After assigning the economic activities to at least one of the six objectives provided by the Delegated Acts, it is verified that they: \- Meet the criteria of substantial contribution, evaluating with the Business Unit representatives that the activities carried out are in line with the performance and/ or regulatory thresholds in relation to the environmental objective they contribute to; \- Satisfy the “Do Not Significant Harm” requirement, meaning that the economic activities contributing to at least one of the objectives provided by the Regulation do not cause significant harm to any of the other five. For the DNSH criteria, the verification involved additional functions, including the Group’s Enterprise Risk Management function, owner of A2A’s Climate Risk Assessment, with which it was verified whether the relevant Delegated Acts’ requirements were met, in terms of identified risks and mitigation measures identified and implemented. The DNSH criteria related to the other objectives were instead verified with the technical functions of the individual Business Units. Furthermore, at the Group level, the adequate application of minimum safeguards, i.e., international standards for the respect of human rights, including OECD, UN, and ILO, is verified. This process has led to the identification of the following categories of economic activities “eligible” for the objectives of Climate Change Mitigation, Circular Economy, Pollution Prevention and Reduction, and Sustainable Use and Protection of Water and Marine Resources. • 4.1 CCM. Production of electricity using photovoltaic solar technology: the generation of electricity by the Generation BU and the Market BU is considered an eligible activity and, for most of the Group’s plants, aligned. The only plants that do not meet the Do Not Significant Harm criteria for the circular economy are those installed at the Chivasso, Sermide, Brindisi, and San Filippo del Mela power plants, which, given the total installed photovoltaic capacity of the Group, have a negligible weight. Therefore, these plants have not been considered aligned; • 4.3 CCM. Production of electricity from wind energy: the generation of wind energy by the Generation BU is considered an eligible and aligned activity for all plants except Mimiani, as it interferes with protected areas according to the DNSH criteria on biodiversity; • 4.5 CCM. Production of electricity from hydroelectric energy: the generation of electricity from hydroelectric sources by the Generation BU is considered an eligible and aligned activity. In particular, by adopting the measurement proxy according to which reservoirs are considered upstream of cascade plants, for non-run-of-river plants, the turbine power exceeds the required threshold, which is 5 W/m 2 ; • 4.8 CCM. Production of electricity from bioenergy: Waste BU biomass plants are 5.2 Environmental information Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 157 considered eligible in this category. All assets are aligned; • 4.9 CCM. Transmission and distribution of electricity: the distribution networks owned by the Group (particularly those part of the Smart Infrastructures BU) have been considered eligible and aligned, except for a portion of the network in Salò and a portion of the network recently acquired from Enel, as they interfere with protected areas according to the DNSH criteria on biodiversity; • 4.10 CCM. Storage of electricity: batteries will allow the storage of renewable electricity (wind and photovoltaic) and are considered eligible and aligned; • 4.11 CCM. Thermal energy storage: the Group’s cogeneration plants are equipped with technologies that allow the storage of thermal energy, which are considered eligible and aligned; • 4.14 CCM. Transmission and distribution networks of renewable and low carbon gases: the gas network owned by the Group (particularly part of the Smart Infrastructures BU) is considered eligible and aligned only for the portion related to the replacement of pipes with materials such as steel and polyethylene that allow the passage of low carbon gas and hydrogen. Additionally, leak monitoring is carried out at least biennially and covers the entire network; • 4.15 CCM. District heating and cooling networks: the activity covers the district heating and cooling network owned by the Group (Smart Infrastructures BU). Some networks are not considered aligned as they are not efficient according to the current regulations required by the Delegated Act. The efficiency of the aligned networks is confirmed through the issuance of GSE certifications; • 4.16 CCM. Installation and operation of electric heat pumps: the activity is considered aligned with particular reference to the Canavese, Famagosta and Lodi, Santa Giulia and Technocity plants of the Smart Infrastructures BU; • 4.20 CCM. Cogeneration of heat and cold and electricity from bioenergy: the activity includes the biomass plants of Cremona and Lodi, which are also considered aligned; • 4.25 CCM. Production of heat/cold using waste heat: the plants owned or managed by the Group and part of the Smart Infrastructures BU, which generate heat using waste gas, are included in this activity, which is also fully aligned; • 4.29 CCM. Production of electricity from fossil gaseous fuels: the generation of electricity from natural gas thermal power plants of the Generation BU has been included in this activity provided by the Delegated Act on gas and nuclear; however, no Group plant meets the criteria of substantial contribution, so the activity is not aligned; • 4.30 CCM. High-efficiency cogeneration of heat/cold and electricity from fossil gaseous fuels: cogeneration from plants of the Smart Infrastructures BU has been included as an eligible activity, but not aligned, as the technical screening criteria provided by the Regulation are not met; • 4.31 CCM. Production of heat/cold from fossil gaseous fuels in an efficient district heating and cooling system: the production of heat from natural gas by the Smart Infrastructures BU plants has been included as an eligible activity, but not aligned, as the technical screening criteria provided by the Regulation are not met; • 5.1 CCM. Construction, expansion, and management of water collection, treatment, and supply systems: the water distribution plants owned and managed by the Group (Smart Infrastructures BU) and the networks connected to them are included. The activity is partially aligned, as in some cases the limits for the net average energy consumption for extraction and treatment are not met, while in others (Casto and Sabbio Chiese) the DNSH criteria for sustainable use and protection of water and marine resources are not met; • 2.1 WTR, Water supply: the activity is considered overlapping in terms of eligibility with 5.1 CCM, however, in this case, all the water distribution plants owned by the Group and the networks connected to them are not aligned as they do not meet the substantial contribution criteria provided; 158 A2A Report on Operations 2024 Sustainability Statement • 5.9 CCM. Recovery of materials from non- hazardous waste: this activity includes the treatment plants for non-hazardous waste of the Environment BU. Some of these do not meet the substantial contribution criterion (plants in Castenedolo, Fombio, Coccaglio, Muggiano, Cavaglià, Novate Vialba, Terre di spazzamento Brescia, and Silla), which requires the conversion of 50%, by weight, of incoming waste into secondary raw material; • 2.7 CE. Sorting and recovery of materials from non-hazardous waste: the activity is perfectly overlapping in terms of eligibility with activity 5.9 CCM. In relation to the Circular Economy objective, only the Terre di spazzamento plants in Brescia and Silla are not aligned as they do not meet the substantial contribution criterion for material recovery; • 5.10 CCM. Capture and use of landfill gas: the plants installed at the Group’s landfills (Environment BU) fall under this activity. The plants in Cascina Maggiore, Calcinato, Buffalora, Castenedolo, Castegnato, Comacchio, Villafaletto, and Cavaglià are not considered aligned, as they do not meet the substantial contribution criteria of the Delegated Acts of the Regulation; • 6.15 CCM. Infrastructure enabling low-carbon road and public transport: the activity covers the installation of charging points for electric vehicles on public land. This activity is considered fully aligned with the provisions of the Delegated Acts of the Regulation; • 7.1 CCM. Construction of new buildings: this activity includes the construction of the new A2A Tower, which is considered aligned, and the construction of the Zanica building, which is not considered aligned due to non- compliance with the technical screening criterion (activity aimed at extending revenue); • 3.1 CE Construction of new buildings: this activity is perfectly overlapping with activity 7.1 CCM, however, in this case, neither the A2A Tower nor the Zanica building are considered aligned due to non-compliance with the technical screening criteria; • 7.2 CCM. Renovation of existing buildings: this activity includes the renovations of the Acinque Company’s buildings, which are only partially aligned; • 5.3 CCM. Construction, expansion, and management of wastewater collection and treatment systems: this includes the effluent treatment plants owned and managed by the Group (Smart Infrastructures BU) and the connected sewer networks. The activity is partially aligned, as in some cases the limits for the net average energy consumption for wastewater treatment (substantial contribution criterion) are not met, while in others (Pavone del Mella and Pontevico) the DNSH criteria for sustainable use and protection of water and marine resources are not met; • 2.2 WTR, Urban wastewater treatment: the activity is considered overlapping in terms of eligibility with activity 5.3 CCM. The activity is partially aligned due to the non-compliance of some treatment plants with the technical criteria of Directive 2000/60/EC and others with the technical criteria 91/271/EEC; • 5.5 CCM. Collection and transport of non- hazardous waste in fractions: this includes all activities of separate collection of non- hazardous waste by the Environment BU and their transport to disposal plants. The activity is fully aligned; • 2.3 CE, Collection and transport of non- hazardous and hazardous waste: the activity is perfectly overlapping in terms of eligibility with activity 5.5 CCM and is fully aligned; • 5.6 CCM. Anaerobic digestion of sewage sludge: this includes the sludge plant in Corteolona, which is aligned; • 5.7 CCM. Anaerobic digestion of organic waste: this includes the Forsu plants in Lachiarella and Cavaglià (Environment BU), both aligned with the criteria set by the Delegated Acts of the Regulation; • 5.8 CCM. Composting of organic waste: the composting plants in Corteolona and Bedizzole of the Environment BU are aligned with the Regulation’s criteria; • 2.5 CE. Recovery of organic waste through anaerobic digestion or composting: the activity is perfectly overlapping in terms of eligibility with activities 5.7 and 5.8 CCM. In this case, the plants are also aligned; Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 159 as a binding imperative value to which all recipients are required to conform. The Code, therefore, identifies the prerequisites aimed at ensuring that business activities are inspired by the principles of fairness, transparency, diligence, honesty, mutual respect, loyalty, and good faith, in order to safeguard the interests of stakeholders and ensure an efficient, reliable, and correct working method, based on compliance with current regulations and ethical principles deemed adequate, necessary, and indispensable for operating within the market, with regard to both activities carried out within the Italian territory and activities carried out in other countries and the resulting relationships with national and international operators, companies, and institutions. The code regulates: • the obligations of the company’s internal and external stakeholders, with specific regulations on behavior towards the latter; • conflict of interest; • protection of company assets; • protection of the image. 2\. Anti-Corruption Policy: This Policy has been examined and approved by the Board of Directors of A2A S.p.A. and applies to the Group’s personnel and all those who operate in favor of or on behalf of Group companies, within the scope of the activities carried out and within the limits of their responsibilities, including the members of the Supervisory Body and the Social Bodies (hereinafter the “Recipients”). The implementation of the Policy is mandatory for A2A S.p.A. and all controlled companies, which will adopt it through a resolution of their respective Board of Directors (or the corresponding body/role if the governance of the controlled company does not provide for such a body). 3\. Human Rights Policy: The Human Rights Policy of the A2A Group, approved by the Board of Directors of A2A S.p.A., aims to define the fundamental principles, behavioral rules, and responsibilities in the field of human rights that the A2A Group recognizes, respects, and assumes as a binding imperative value, to which all Recipients of the Policy are required to conform. The Policy applies to all personnel of the A2A Group and all those who operate in favor of or on behalf of the Group’s companies, within the scope of • 3.2, CE. Renovation of existing buildings: this activity is perfectly overlapping with activity 7.2 CCM, and in this case, only partial alignment is found; • 2.2 PPC. Treatment of hazardous waste: this activity includes plants dedicated to the treatment of hazardous waste, including incinerators for non-recyclable waste. In particular, this activity includes the plants in Filago, Crotone WTE, liquids and inertization, Castegnato, Robassomero, the inertizer in Giussago and the related platform, and Sannazzaro. All plants are considered eligible and aligned; • 7.3 CCM. Installation, maintenance, and repair of energy efficiency devices: this activity includes interventions related to public lighting and energy efficiency services for third parties (public administration and civil clients), conducted by the Smart Infrastructures BU and considered aligned with the Regulation; • 7.4 CCM. Installation, maintenance, and repair of instruments and devices for measuring, regulating, and controlling the energy performance of buildings: this activity covers the service of installing charging points for electric vehicles at third-party assets. This activity is considered fully aligned with the Regulation; • 7.6 CCM. Installation, maintenance, and repair of renewable energy technologies: this includes maintenance and installation of technologies for generating electricity from renewable sources (e.g., photovoltaic panels) on third-party assets. The activity is aligned with the criteria set by the Regulation; • 8.1 CCM. Data processing, hosting, and related activities: this includes activities conducted by A2A Smart City, which, for the reporting year, are not considered aligned as they do not comply with the technical screening criteria of the activity. Reporting on Minimum Safeguards At the following link (A2A website), you can find the following documentation: 1\. Code of Ethics: The Code of Ethics approved by the Board of Directors of A2A aims to define the fundamental ethical principles, behavioral rules, and responsibilities that the Group recognizes, respects, and assumes 160 A2A Report on Operations 2024 Sustainability Statement the activities carried out and within the of its responsibilities, including the members of the Social Bodies. The Policy also applies to the activities carried out by the Group’s companies abroad, while considering the existing differences in regulatory, social, economic, and cultural aspects. 4\. Antitrust Code of Conduct: The Company, through an adequate Antitrust Compliance Program, also provides for the adoption and dissemination of this Antitrust Code of Conduct, intended for all resources of the A2A Group (regardless of their classification) and aims to ensure compliance with the rules protecting competition, spreading knowledge of antitrust regulations and understanding the underlying risks of non-compliance, also introducing adequate preventive measures to avoid the risk of antitrust violations, within the broader scope of compliance initiatives (model 231, compliance procedures with sector regulations, privacy regulations, etc.) promoted by A2A. Accounting Policy The analysis is carried out on economic items, reconciled with the amounts of the Balance Sheet, Capex, Opex, and Revenues, in accordance with European Regulation 2020/852\. In particular, the total capital expenditures and revenues are analyzed according to the Taxonomy, while only the operating costs of maintenance and research and development fall within the scope of analysis. For the determination of the scope of inclusion, eligibility, and alignment of economic items, intra- Group items, amortizations, provisions and impairments, items related to M&A operations that do not fall within the scope of consolidation, leases, and PNRR contributions are excluded from the calculation scope. Regarding the scope of eligibility and alignment, the economic items to be considered are evaluated for each Business Unit based on their respective specificities. Table 20 Nuclear and fossil gas related activities Nuclear related activities The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. No The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. No The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. No Fossil gas related activities The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. Yes The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. Yes The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. Yes Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 161 CapEx Table 21 Taxonomy-aligned economic activities (denominator) Economic activity (CCM+CCA) Climate change mitigation (CCM) Climate change adaptation (CCA) Amount (€) % Amount (€) % Amount (€) % 4.29 - Electricity generation from fossil gaseous fuels 191,252,271 9.84 191,252,271 9.84 0 0 4.30 - High-efficiency co-generation of heat/ cool and power from fossil gaseous fuels 17,326,148 0.89 17,326,148 0.89 0 0 4.31 - Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system 11,931,955 0.61 11,931,955 0.61 0 0 Total other activities 1,722,662,423 88.66 1,722,662,423 88.66 0 0 Total 1,943,172,799 100 1,943,172,799 100 0 0 Table 22 Taxonomy-aligned economic activities (numerator) Economic activity (CCM+CCA) Climate change mitigation (CCM) Climate change adaptation (CCA) Amount (€) % Amount (€) % Amount (€) % 4.29 - Electricity generation from fossil gaseous fuels 0 0 0 0 0 0 4.30 - High-efficiency co-generation of heat/ cool and power from fossil gaseous fuels 0 0 0 0 0 0 4.31 - Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system 0 0 0 0 0 0 Total other activities 1,075,723,516 55.4 1,075,723,516 55.4 0 0 Total 1,075,723,516 55.4 1,075,723,516 55.4 0 0 162 A2A Report on Operations 2024 Sustainability Statement Table 23 Taxonomy-eligible but not taxonomy-aligned economic activities Economic activity (CCM+CCA) Climate change mitigation (CCM) Climate change adaptation (CCA) Amount (€) % Amount (€) % Amount (€) % 4.29 - Electricity generation from fossil gaseous fuels 191,252,271 9.84 191,252,271 9.84 0 0 4.30 - High-efficiency co-generation of heat/ cool and power from fossil gaseous fuels 17,326,148 0.89 17,326,148 0.89 0 0 4.31 - Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system 11,931,955 0.61 11,931,955 0.61 0 0 Total other activities 8,076,037 5 8,076,037 5 0 0 Total 317,422,826 16.3 317,422,826 16.3 0 0 Table 24 Taxonomy non-eligible economic activities Economic activity (CCM+CCA) Climate change mitigation (CCM) Climate change adaptation (CCA) Amount (€) % Amount (€) % Amount (€) % 4.29 - Electricity generation from fossil gaseous fuels 0 0 0 0 0 0 4.30 - High-efficiency co-generation of heat/ cool and power from fossil gaseous fuels 0 0 0 0 0 0 4.31 - Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system 0 0 0 0 0 0 Total other activities 550,026,457 28.3 550,026,457 28.3 0 0 Total 550,026,457 28.3 550,026,457 28.3 0 0 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 163 OpEx Table 25 Taxonomy-aligned economic activities (denominator) Economic activity (CCM+CCA) Climate change mitigation (CCM) Climate change adaptation (CCA) Amount (€) % Amount (€) % Amount (€) % 4.29 - Electricity generation from fossil gaseous fuels 23,152,112 5.25 23,152,112 5.25 0 0 4.30 - High-efficiency co-generation of heat/ cool and power from fossil gaseous fuels 9,580,155 2.2 9,580,155 2.2 0 0 4.31 - Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system 2,624,736 0.6 2,624,736 0.6 0 0 Total other activities 405,501,083 92 405,501,083 92 0 0 Total 440,858,089 100 440,858,089 100 0 0 Table 26 Taxonomy-aligned economic activities (numerator) Economic activity (CCM+CCA) Climate change mitigation (CCM) Climate change adaptation (CCA) Amount (€) % Amount (€) % Amount (€) % 4.29 - Electricity generation from fossil gaseous fuels 0 0 0 0 0 0 4.30 - High-efficiency co-generation of heat/ cool and power from fossil gaseous fuels 0 0 0 0 0 0 4.31 - Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system 0 0 0 0 0 0 Total other activities 136,637,277 31 136,637,277 31 0 0 Total 136,637,277 31 136,637,277 31 0 0 164 A2A Report on Operations 2024 Sustainability Statement Table 27 Taxonomy-eligible but not taxonomy-aligned economic activities Economic activity (CCM+CCA) Climate change mitigation (CCM) Climate change adaptation (CCA) Amount (€) % Amount (€) % Amount (€) % 4.29 - Electricity generation from fossil gaseous fuels 23,152,112 5.25 23,152,112 5.25 0 0 4.30 - High-efficiency co-generation of heat/ cool and power from fossil gaseous fuels 9,580,155 2.2 9,580,155 2.2 0 0 4.31 - Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system 2,624,736 0.6 2,624,736 0.6 0 0 Total other activities 9,260,285 2.1 9,260,285 2.1 0 0 Total 44,617,291 10.12 44,617,291 10.12 0 0 Table 28 Taxonomy non-eligible economic activities Economic activity (CCM+CCA) Climate change mitigation (CCM) Climate change adaptation (CCA) Amount (€) % Amount (€) % Amount (€) % 4.29 - Electricity generation from fossil gaseous fuels 0 0 0 0 0 0 4.30 - High-efficiency co-generation of heat/ cool and power from fossil gaseous fuels 0 0 0 0 0 0 4.31 - Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system 0 0 0 0 0 0 Total other activities 259,603,520 59% 259,603,520 59% 0 0 Total 259,603,520 59% 259,603,520 59% 0 0 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 165 Turnover Table 29 Taxonomy-aligned economic activities (denominator) Economic activity (CCM+CCA) Climate change mitigation (CCM) Climate change adaptation (CCA) Amount (€) % Amount (€) % Amount (€) % 4.29 - Electricity generation from fossil gaseous fuels 991,980,971 7.75 991,980,971 7.75 0 0 4.30 - High-efficiency co-generation of heat/ cool and power from fossil gaseous fuels 150,737,499 1.2 150,737,499 1.2 0 0 4.31 - Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system 70,734,860 0.55 70,734,860 0.55 0 0 Total other activities 11,590,911,241 90 11,590,911,241 90 0 0 Total 12,804,004,572 100 12,804,004,572 100 0 0 Table 30 Taxonomy-aligned economic activities (numerator) Economic activity (CCM+CCA) Climate change mitigation (CCM) Climate change adaptation (CCA) Amount (€) % Amount (€) % Amount (€) % 4.29 - Electricity generation from fossil gaseous fuels 0 0 0 0 0 0 4.30 - High-efficiency co-generation of heat/ cool and power from fossil gaseous fuels 0 0 0 0 0 0 4.31 - Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system 0 0 0 0 0 0 Total other activities 2 ,1 57, 2 78,9 4 3 17 2 ,1 57, 2 78 ,9 4 3 17 0 0 Total 2 ,1 57, 2 78,9 4 3 17 2 ,1 57, 2 78,9 4 3 17 0 0 166 A2A Report on Operations 2024 Sustainability Statement Table 31 Taxonomy-eligible but not taxonomy-aligned economic activities Economic activity (CCM+CCA) Climate change mitigation (CCM) Climate change adaptation (CCA) Amount (€) % Amount (€) % Amount (€) % 4.29 - Electricity generation from fossil gaseous fuels 991,980,971 7.75 991,980,971 7.75 0 0 4.30 - High-efficiency co-generation of heat/ cool and power from fossil gaseous fuels 150,737,499 1.2 150,737,499 1.2 0 0 4.31 - Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system 70,734,860 0.55 70,734,860 0.55 0 0 Total other activities 141,647,911 1.1 141,647,911 1.1 0 0 Total 1,355,455,391 10.6 1,355,455,391 10.6 0 0 Table 32 Taxonomy non-eligible economic activities Economic activity (CCM+CCA) Climate change mitigation (CCM) Climate change adaptation (CCA) Amount (€) % Amount (€) % Amount (€) % 4.29 - Electricity generation from fossil gaseous fuels 0 0 0 0 0 0 4.30 - High-efficiency co-generation of heat/ cool and power from fossil gaseous fuels 0 0 0 0 0 0 4.31 - Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system 0 0 0 0 0 0 Total other activities 9,291,270,237 72.6% 9,291,270,237 72.6% 0 0 Total 9,291,270,237 72.6% 9,291,270,237 72.6% 0 0 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 167 any activity of the Regulation, due to the fact they re not referred to any specific asset; • Increase in the Retail sector in the Market BU, which is not eligible as it is not related to any activity of the Regulation. For the KPI regarding alignment, the main reason for the discrepancy concerns the reduction in business volumes of energy efficiency interventions due to the cessation of bonuses and incentives (-82% year on year). Compared to 2023, the Group has finally revised its interpretation of the gas distribution activity. In particular, in contrast to the initial interpretation following the European Commission Communication 2022/C 385/01, only the portion of Capex and Opex related to gas network replacement operations aimed at transporting hydrogen or biogas has been made eligible. Based on this approach, the associated revenue share was calculated, valuing the investments made based on the RAB calculation. Finally, the percentages related to turnover (out of a total of 12.8 billion euros) are 27% for eligibility (a decrease of 2% compared to 2023) and 17% for alignment (+5% compared to 2023). The decline in eligibility is mainly due to the reduction in sales volumes of energy efficiency solutions and the increase in revenues from the Group’s waste-to-energy plants. Conversely, the increase in aligned revenue volume is mainly due to the alignment of turnover related to the development and maintenance of the underground network and the reduction in CCGT revenues, combined with the increase in hydroelectric production. In 2024, with reference to CapEx, out of a total of 1.9 billion euros considered, 72% was deemed eligible (in line with 2023) and 55% aligned (+9% compared to the previous year). The main reasons behind the percentage increase were summarized in the following points: • The Watt operation introduced eligible and aligned assets into the perimeter. The original value of the deal was deducted from goodwill, as it is not includable under the Regulation, and a portion of networks (BT and MT) and cabins considered non-aligned as they interfere with protected areas. The Group’s assets affecting protected areas are limited to a few kilometers of network and a small number of secondary cabins located in Milan and, in particular, in the Ticino park; • The Generation BU increased the investment amount related to renewable plants, eligible and aligned with the Regulation; • The hazardous waste treatment plants in Crotone, Filago, and Sannazzaro were considered aligned. These plants were not considered aligned in the fiscal year 2023 in compliance with regulatory provisions, which require reporting the alignment of activities related to the “Environment Delegated Act” starting from the fiscal year 2024. Regarding operating expenses, out of the total considered (441 million euros), 41% was deemed eligible (24 percentage points less than in 2023) and 31% aligned (20 percentage points less than the previous year). The reasons for the decline in the eligibility parameter mainly concern: • BU Corporate maintencance costs are not eligible since they can’t be reconciliated with 168 A2A Report on Operations 2024 Sustainability Statement Table 33 Share of turnover from products or services associated with eligible and taxonomy-aligned economic activities Financial year 2024 Substantial contribution criteria DNSH criteria (Does not significantly harm) Economic activity (1) Code (2) Absolute turnover (3) € Turnover share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T A. Taxonomy eligible activities A.1\. Environmentally sustainable activities (Taxonomy-aligned) Electricity generation using solar photovoltaic technology PPC 2.2 77,696,740 0.61% N/EL N/EL N/EL N/EL Y N/EL N Y Y N N Y Y 0.53% Electricity generation using solar photovoltaic technology CCM 4.1 79,604,315 0.62% Y N/EL N/EL N/EL N/EL N/EL N Y N Y N Y Y 0.66% Storage of electric energy CCM 4.10 - 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.00% E Storage of thermal energy CCM 4.11 - 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.00% E Transmission and distribution networks for renewable and low-carbon gases CCM 4.14 24,576,633 0.19% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.14% District heating/ cooling distribution CCM 4.15 127,799,704 1.00% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.91% Installation and operation of electric heat pumps CCM 4.16 - 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.00% Cogeneration of heat/cool and power from bioenergy CCM 4.20 7,075, 8 8 3 0.06% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.06% Production of heat/ cool using waste heat CCM 4.25 - 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y N Y Y Y Y 0.00% Electricity generation from wind power CCM 4.3 55,795,224 0.44% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.38% Electricity generation from hydropower CCM 4.5 788,370,891 6.16% Y N/EL N/EL N/EL N/EL N/EL N Y Y N N Y Y 3.45% Electricity generation from bioenergy CCM 4.8 79,666,426 0.62% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.56% Transmission and distribution of electricity CCM 4.9 169,103,341 1.32% Y N/EL N/EL N/EL N/EL N/EL N Y N Y Y Y Y 0.91% E Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 169 Table 33 Share of turnover from products or services associated with eligible and taxonomy-aligned economic activities Financial year 2024 Substantial contribution criteria DNSH criteria (Does not significantly harm) Economic activity (1) Code (2) Absolute turnover (3) € Turnover share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T A. Taxonomy eligible activities A.1\. Environmentally sustainable activities (Taxonomy-aligned) Electricity generation using solar photovoltaic technology PPC 2.2 77,696,740 0.61% N/EL N/EL N/EL N/EL Y N/EL N Y Y N N Y Y 0.53% Electricity generation using solar photovoltaic technology CCM 4.1 79,604,315 0.62% Y N/EL N/EL N/EL N/EL N/EL N Y N Y N Y Y 0.66% Storage of electric energy CCM 4.10 - 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.00% E Storage of thermal energy CCM 4.11 - 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.00% E Transmission and distribution networks for renewable and low-carbon gases CCM 4.14 24,576,633 0.19% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.14% District heating/ cooling distribution CCM 4.15 127,799,704 1.00% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.91% Installation and operation of electric heat pumps CCM 4.16 - 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.00% Cogeneration of heat/cool and power from bioenergy CCM 4.20 7,075, 8 8 3 0.06% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.06% Production of heat/ cool using waste heat CCM 4.25 - 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y N Y Y Y Y 0.00% Electricity generation from wind power CCM 4.3 55,795,224 0.44% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.38% Electricity generation from hydropower CCM 4.5 788,370,891 6.16% Y N/EL N/EL N/EL N/EL N/EL N Y Y N N Y Y 3.45% Electricity generation from bioenergy CCM 4.8 79,666,426 0.62% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.56% Transmission and distribution of electricity CCM 4.9 169,103,341 1.32% Y N/EL N/EL N/EL N/EL N/EL N Y N Y Y Y Y 0.91% E 170 A2A Report on Operations 2024 Sustainability Statement Financial year 2024 Substantial contribution criteria DNSH criteria (Does not significantly harm) Economic activity (1) Code (2) Absolute turnover (3) € Turnover share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Construction, extension and operation of water collection, treatment and supply systems CCM 5.1. WTR 2.1 41,696,105 0.33% Y N/EL N N/EL N/EL N/EL Y Y Y N N Y Y 0.32% Landfill gas capture and utilisation CCM 5.10 2,278,002 0.02% Y N/EL N/EL N/EL N/EL N/EL N Y N N Y Y Y 0.01% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 2,531,793 0.02% Y N/EL Y N/EL N/EL N/EL N Y Y N Y Y Y 0.05% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 4,128,574 0.03% Y N/EL N N/EL N/EL N/EL N Y Y N Y Y Y 0.00% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 34,439,737 0.27% N N/EL Y N/EL N/EL N/EL Y Y Y N Y Y Y 0.00% Collection and transport of non- hazardous waste in source segregated fractions CCM 5.5. CE 2.3 346,685,563 2.71% Y N/EL N/EL Y N/EL N/EL N Y Y N N N Y 2.04% Anaerobic digestion of sewage sludge CCM 5.6 3,027,933 0.02% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.03% Anaerobic digestion of bio-waste CCM 5.7. C E 2.5 8,334,230 0.07% Y N/EL N/EL Y N/EL N/EL Y Y Y N Y Y Y 0.04% Composting of bio-waste CCM 5.8. CE 2.5 1,180,591 0.01% Y N/EL N/EL Y N/EL N/EL Y Y N N Y Y Y 0.00% Material recovery from non-hazardous waste CCM 5.9. CE 2.7 65,426,565 0.51% Y N/EL N/EL Y N/EL N/EL N Y N N N Y Y 0.43% Material recovery from non-hazardous waste CCM 5.9. CE 2.7 44,452,065 0.35% N N/EL N/EL Y N/EL N/EL Y Y N N N Y Y 0.00% Infrastructure enabling low-carbon road transport and public transport CCM 6.15 2,926,488 0.02% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y Y Y Y 0.02% E Construction of new buildings CCM 7.1\. CE 3.1 0.00% Y N/EL N/EL N N/EL N/EL Y Y Y Y Y Y Y 0.00% Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 171 Financial year 2024 Substantial contribution criteria DNSH criteria (Does not significantly harm) Economic activity (1) Code (2) Absolute turnover (3) € Turnover share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Construction, extension and operation of water collection, treatment and supply systems CCM 5.1. WTR 2.1 41,696,105 0.33% Y N/EL N N/EL N/EL N/EL Y Y Y N N Y Y 0.32% Landfill gas capture and utilisation CCM 5.10 2,278,002 0.02% Y N/EL N/EL N/EL N/EL N/EL N Y N N Y Y Y 0.01% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 2,531,793 0.02% Y N/EL Y N/EL N/EL N/EL N Y Y N Y Y Y 0.05% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 4,128,574 0.03% Y N/EL N N/EL N/EL N/EL N Y Y N Y Y Y 0.00% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 34,439,737 0.27% N N/EL Y N/EL N/EL N/EL Y Y Y N Y Y Y 0.00% Collection and transport of non- hazardous waste in source segregated fractions CCM 5.5. CE 2.3 346,685,563 2.71% Y N/EL N/EL Y N/EL N/EL N Y Y N N N Y 2.04% Anaerobic digestion of sewage sludge CCM 5.6 3,027,933 0.02% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.03% Anaerobic digestion of bio-waste CCM 5.7. C E 2.5 8,334,230 0.07% Y N/EL N/EL Y N/EL N/EL Y Y Y N Y Y Y 0.04% Composting of bio-waste CCM 5.8. CE 2.5 1,180,591 0.01% Y N/EL N/EL Y N/EL N/EL Y Y N N Y Y Y 0.00% Material recovery from non-hazardous waste CCM 5.9. CE 2.7 65,426,565 0.51% Y N/EL N/EL Y N/EL N/EL N Y N N N Y Y 0.43% Material recovery from non-hazardous waste CCM 5.9. CE 2.7 44,452,065 0.35% N N/EL N/EL Y N/EL N/EL Y Y N N N Y Y 0.00% Infrastructure enabling low-carbon road transport and public transport CCM 6.15 2,926,488 0.02% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y Y Y Y 0.02% E Construction of new buildings CCM 7.1\. CE 3.1 0.00% Y N/EL N/EL N N/EL N/EL Y Y Y Y Y Y Y 0.00% 172 A2A Report on Operations 2024 Sustainability Statement Financial year 2024 Substantial contribution criteria DNSH criteria (Does not significantly harm) Economic activity (1) Code (2) Absolute turnover (3) € Turnover share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Renovation of existing buildings CCM 7.2. CE 3.2 - 0.00% Y N/EL N/EL Y N/EL N/EL Y Y Y Y Y N Y 0.00% T Installation, maintenance and repair of energy efficiency equipment CCM 7.3 184,208,874 1.44% Y N/EL N/EL N/EL N/EL N/EL N Y N N Y N Y 2.35% E Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) CCM 7.4 710,886 0.01% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.00% E Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings CCM 7.5 - 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.00% E Installation, maintenance and repair of renewable energy technologies CCM 7.6 5,518,302 0.04% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.09% E Professional services related to energy performance of buildings CCM 9.3 44,080 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.00% E Turnover of environmentally sustainable activities (Taxonomy-aligned) 2 ,1 57, 278 ,9 4 3 16.85% 15.63% 0.00% 0.27% 0.35% 0.61% 0.00% 12.97% of which enabling 362,511,970 2.83% 2.83% 0.00% 0.00% 0.00% 0.00% 0.00% 3.38% E of which transitional - 0.0% 0.0% 0.00% T Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 173 Financial year 2024 Substantial contribution criteria DNSH criteria (Does not significantly harm) Economic activity (1) Code (2) Absolute turnover (3) € Turnover share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Renovation of existing buildings CCM 7.2. CE 3.2 - 0.00% Y N/EL N/EL Y N/EL N/EL Y Y Y Y Y N Y 0.00% T Installation, maintenance and repair of energy efficiency equipment CCM 7.3 184,208,874 1.44% Y N/EL N/EL N/EL N/EL N/EL N Y N N Y N Y 2.35% E Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) CCM 7.4 710,886 0.01% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.00% E Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings CCM 7.5 - 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.00% E Installation, maintenance and repair of renewable energy technologies CCM 7.6 5,518,302 0.04% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.09% E Professional services related to energy performance of buildings CCM 9.3 44,080 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.00% E Turnover of environmentally sustainable activities (Taxonomy-aligned) 2 ,1 57, 278 ,9 4 3 16.85% 15.63% 0.00% 0.27% 0.35% 0.61% 0.00% 12.97% of which enabling 362,511,970 2.83% 2.83% 0.00% 0.00% 0.00% 0.00% 0.00% 3.38% E of which transitional - 0.0% 0.0% 0.00% T 174 A2A Report on Operations 2024 Sustainability Statement Financial year 2024 Substantial contribution criteria DNSH criteria (Does not significantly harm) Economic activity (1) Code (2) Absolute turnover (3) € Turnover share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Electricity generation using solar photovoltaic technology CCM 4.1 0.00% EL N/EL N/EL N/EL N/EL N/EL 0.00% Transmission and distribution networks for renewable and low-carbon gases CCM 4.14 28,353,842 0.22% EL N/EL N/EL N/EL N/EL N/EL 1.09% District heating/ cooling distribution CCM 4.15 34,667,950 0.27% EL N/EL N/EL N/EL N/EL N/EL 0.19% Electricity generation from fossil gaseous fuels CCM 4.29 991,980,971 7.7 5 % EL N/EL N/EL N/EL N/EL N/EL 12.31% Electricity generation from wind power CCM 4.3 - 0.00% EL N/EL N/EL N/EL N/EL N/EL 1.06% High-efficiency co- generation of heat/ cool and power from fossil gaseous fuels CCM 4.30 150,737,500 1.18% EL N/EL N/EL N/EL N/EL N/EL 0.00% Production of heat/ cool from fossil gaseous fuels in an efficient district heating and cooling system CCM 4.31 70,374,860 0.55% EL N/EL N/EL N/EL N/EL N/EL 0.47% Transmission and distribution of electricity CCM 4.9 19,617,346 0.15% EL N/EL N/EL N/EL N/EL N/EL 0.11% Construction, extension and operation of water collection, treatment and supply systems CCM 5.1. WTR 2.1 5 6, 5 97, 2 75 0.44% EL N/EL EL N/EL N/EL N/EL 0.36% Landfill gas capture and utilisation CCM 5.10 69,113 0.00% EL N/EL N/EL N/EL N/EL N/EL 0.00% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 1,158,591 0.01% EL N/EL EL N/EL N/EL N/EL 0.23% Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 175 Financial year 2024 Substantial contribution criteria DNSH criteria (Does not significantly harm) Economic activity (1) Code (2) Absolute turnover (3) € Turnover share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Electricity generation using solar photovoltaic technology CCM 4.1 0.00% EL N/EL N/EL N/EL N/EL N/EL 0.00% Transmission and distribution networks for renewable and low-carbon gases CCM 4.14 28,353,842 0.22% EL N/EL N/EL N/EL N/EL N/EL 1.09% District heating/ cooling distribution CCM 4.15 34,667,950 0.27% EL N/EL N/EL N/EL N/EL N/EL 0.19% Electricity generation from fossil gaseous fuels CCM 4.29 991,980,971 7.7 5 % EL N/EL N/EL N/EL N/EL N/EL 12.31% Electricity generation from wind power CCM 4.3 - 0.00% EL N/EL N/EL N/EL N/EL N/EL 1.06% High-efficiency co- generation of heat/ cool and power from fossil gaseous fuels CCM 4.30 150,737,500 1.18% EL N/EL N/EL N/EL N/EL N/EL 0.00% Production of heat/ cool from fossil gaseous fuels in an efficient district heating and cooling system CCM 4.31 70,374,860 0.55% EL N/EL N/EL N/EL N/EL N/EL 0.47% Transmission and distribution of electricity CCM 4.9 19,617,346 0.15% EL N/EL N/EL N/EL N/EL N/EL 0.11% Construction, extension and operation of water collection, treatment and supply systems CCM 5.1. WTR 2.1 5 6, 5 97, 2 75 0.44% EL N/EL EL N/EL N/EL N/EL 0.36% Landfill gas capture and utilisation CCM 5.10 69,113 0.00% EL N/EL N/EL N/EL N/EL N/EL 0.00% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 1,158,591 0.01% EL N/EL EL N/EL N/EL N/EL 0.23% 176 A2A Report on Operations 2024 Sustainability Statement Financial year 2024 Substantial contribution criteria DNSH criteria (Does not significantly harm) Economic activity (1) Code (2) Absolute turnover (3) € Turnover share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Material recovery from non-hazardous waste CCM 5.9. CE 2.7 1,183,795 0.01% EL N/EL N/EL EL N/EL N/EL 0.23% Construction of new buildings CCM 7.1\. CE 3.1 - 0.00% EL N/EL N/EL EL N/EL N/EL 0.00% Renovation of existing buildings CCM 7.2. CE 3.2 0.00% EL N/EL N/EL EL N/EL N/EL 0.00% Data processing, hosting and related activities CCM 8.1 714,148 0.01% EL N/EL N/EL N/EL N/EL N/EL 0.00% Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) 1,355,455,392 10.59% 10.59% 0.00% 0.45% 0.01% 0.00% 0.00% 16.05% Turnover of Taxonomy eligible activities (A1+A2) 3,512,734,335 2 7. 4 3 % 26.83% 0.00% 1.10% 3.65% 0.61% 0.00% 29.0% B. Taxonomy non-eligible activities Turnover of Taxonomy non-eligible activities 9,291,270,238 72.57% Total 12,804,004,573 100% Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 177 Financial year 2024 Substantial contribution criteria DNSH criteria (Does not significantly harm) Economic activity (1) Code (2) Absolute turnover (3) € Turnover share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Material recovery from non-hazardous waste CCM 5.9. CE 2.7 1,183,795 0.01% EL N/EL N/EL EL N/EL N/EL 0.23% Construction of new buildings CCM 7.1\. CE 3.1 - 0.00% EL N/EL N/EL EL N/EL N/EL 0.00% Renovation of existing buildings CCM 7.2. CE 3.2 0.00% EL N/EL N/EL EL N/EL N/EL 0.00% Data processing, hosting and related activities CCM 8.1 714,148 0.01% EL N/EL N/EL N/EL N/EL N/EL 0.00% Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) 1,355,455,392 10.59% 10.59% 0.00% 0.45% 0.01% 0.00% 0.00% 16.05% Turnover of Taxonomy eligible activities (A1+A2) 3,512,734,335 2 7. 4 3 % 26.83% 0.00% 1.10% 3.65% 0.61% 0.00% 29.0% B. Taxonomy non-eligible activities Turnover of Taxonomy non-eligible activities 9,291,270,238 72.57% Total 12,804,004,573 100% 178 A2A Report on Operations 2024 Sustainability Statement Table 34 Share of operating expenses arising from products or services associated with eligibleand taxonomy-aligned economic activities Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) OpEx (3) € OpEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T A. Taxonomy eligible activities A.1\. Environmentally sustainable activities (Taxonomy-aligned) Electricity generation using solar photovoltaic technology PPC 2.2 6,646,924 1.51% N/EL N/EL N/EL N/EL Y N/EL N Y Y N N Y Y 1.40% Electricity generation using solar photovoltaic technology CCM 4.1 3,387,601 0.77% Y N/EL N/EL N/EL N/EL N/EL N Y N Y N Y Y 0.74% Storage of electric energy CCM 4.10 \- 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.00% E Storage of thermal energy CCM 4.11 198,910 0.05% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.02% E Transmission and distribution networks for renewable and low-carbon gases CCM 4.14 8,203,280 1.86% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 2.43% District heating/ cooling distribution CCM 4.15 1,112,618 0.25% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.40% Installation and operation of electric heat pumps CCM 4.16 75,419 0.02% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.03% Cogeneration of heat/cool and power from bioenergy CCM 4.20 684,237 0.16% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.15% Production of heat/ cool using waste heat CCM 4.25 50,904 0.01% Y N/EL N/EL N/EL N/EL N/EL N Y N Y Y Y Y 0.06% Electricity generation from wind power CCM 4.3 4,727,169 1.07% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.96% Electricity generation from hydropower CCM 4.5 10,889,779 2.47% Y N/EL N/EL N/EL N/EL N/EL N Y Y N N Y Y 2.18% Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 179 Table 34 Share of operating expenses arising from products or services associated with eligibleand taxonomy-aligned economic activities Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) OpEx (3) € OpEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T A. Taxonomy eligible activities A.1\. Environmentally sustainable activities (Taxonomy-aligned) Electricity generation using solar photovoltaic technology PPC 2.2 6,646,924 1.51% N/EL N/EL N/EL N/EL Y N/EL N Y Y N N Y Y 1.40% Electricity generation using solar photovoltaic technology CCM 4.1 3,387,601 0.77% Y N/EL N/EL N/EL N/EL N/EL N Y N Y N Y Y 0.74% Storage of electric energy CCM 4.10 \- 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.00% E Storage of thermal energy CCM 4.11 198,910 0.05% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.02% E Transmission and distribution networks for renewable and low-carbon gases CCM 4.14 8,203,280 1.86% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 2.43% District heating/ cooling distribution CCM 4.15 1,112,618 0.25% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.40% Installation and operation of electric heat pumps CCM 4.16 75,419 0.02% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.03% Cogeneration of heat/cool and power from bioenergy CCM 4.20 684,237 0.16% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.15% Production of heat/ cool using waste heat CCM 4.25 50,904 0.01% Y N/EL N/EL N/EL N/EL N/EL N Y N Y Y Y Y 0.06% Electricity generation from wind power CCM 4.3 4,727,169 1.07% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.96% Electricity generation from hydropower CCM 4.5 10,889,779 2.47% Y N/EL N/EL N/EL N/EL N/EL N Y Y N N Y Y 2.18% 180 A2A Report on Operations 2024 Sustainability Statement Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) OpEx (3) € OpEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Electricity generation from bioenergy CCM 4.8 10,753,842 2.44% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 1.89% Transmission and distribution of electricity CCM 4.9 14,458,523 3.28% Y N/EL N/EL N/EL N/EL N/EL N Y N Y Y Y Y 3.04% E Construction, extension and operation of water collection, treatment and supply systems CCM 5.1. WTR 2.1 2,712,411 0.62% Y N/EL N N/EL N/EL N/EL Y Y Y N N Y Y 0.64% Landfill gas capture and utilisation CCM 5.10 845,731 0.19% Y N/EL N/EL N/EL N/EL N/EL N Y N N Y Y Y 0.13% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 190,333 0.04% Y N/EL Y N/EL N/EL N/EL N Y Y N Y Y Y 0.14% Collection and transport of non- hazardous waste in source segregated fractions CCM 5.3. WTR 2.2 360,449 0.08% Y N/EL N N/EL N/EL N/EL N Y Y N Y Y Y 0.00% Collection and transport of non- hazardous waste in source segregated fractions CCM 5.3. WTR 2.2 1,660,873 0.38% N N/EL Y N/EL N/EL N/EL Y Y Y N Y Y Y 0.00% Collection and transport of non- hazardous waste in source segregated fractions CCM 5.5. CE 2.3 32,025,658 7.26% Y N/EL N/EL Y N/EL N/EL N Y Y N N N Y 6.87% Anaerobic digestion of sewage sludge CCM 5.6 261,068 0.06% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.03% Anaerobic digestion of bio-waste CCM 5.7. C E 2.5 2,859,676 0.65% Y N/EL N/EL Y N/EL N/EL Y Y Y N Y Y Y 0.51% Composting of bio-waste CCM 5.8. CE 2.5 352,631 0.08% Y N/EL N/EL Y N/EL N/EL Y Y N N Y Y Y 0.05% Material recovery from non-hazardous waste CCM 5.9. CE 2.7 2,184,870 0.50% Y N/EL N/EL Y N/EL N/EL N Y N N N Y Y 0.54% Material recovery from non-hazardous waste CCM 5.9. CE 2.7 2,178,341 0.49% N N/EL N/EL Y N/EL N/EL Y Y N N N Y Y 0.00% Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 181 Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) OpEx (3) € OpEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Electricity generation from bioenergy CCM 4.8 10,753,842 2.44% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 1.89% Transmission and distribution of electricity CCM 4.9 14,458,523 3.28% Y N/EL N/EL N/EL N/EL N/EL N Y N Y Y Y Y 3.04% E Construction, extension and operation of water collection, treatment and supply systems CCM 5.1. WTR 2.1 2,712,411 0.62% Y N/EL N N/EL N/EL N/EL Y Y Y N N Y Y 0.64% Landfill gas capture and utilisation CCM 5.10 845,731 0.19% Y N/EL N/EL N/EL N/EL N/EL N Y N N Y Y Y 0.13% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 190,333 0.04% Y N/EL Y N/EL N/EL N/EL N Y Y N Y Y Y 0.14% Collection and transport of non- hazardous waste in source segregated fractions CCM 5.3. WTR 2.2 360,449 0.08% Y N/EL N N/EL N/EL N/EL N Y Y N Y Y Y 0.00% Collection and transport of non- hazardous waste in source segregated fractions CCM 5.3. WTR 2.2 1,660,873 0.38% N N/EL Y N/EL N/EL N/EL Y Y Y N Y Y Y 0.00% Collection and transport of non- hazardous waste in source segregated fractions CCM 5.5. CE 2.3 32,025,658 7.26% Y N/EL N/EL Y N/EL N/EL N Y Y N N N Y 6.87% Anaerobic digestion of sewage sludge CCM 5.6 261,068 0.06% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.03% Anaerobic digestion of bio-waste CCM 5.7. C E 2.5 2,859,676 0.65% Y N/EL N/EL Y N/EL N/EL Y Y Y N Y Y Y 0.51% Composting of bio-waste CCM 5.8. CE 2.5 352,631 0.08% Y N/EL N/EL Y N/EL N/EL Y Y N N Y Y Y 0.05% Material recovery from non-hazardous waste CCM 5.9. CE 2.7 2,184,870 0.50% Y N/EL N/EL Y N/EL N/EL N Y N N N Y Y 0.54% Material recovery from non-hazardous waste CCM 5.9. CE 2.7 2,178,341 0.49% N N/EL N/EL Y N/EL N/EL Y Y N N N Y Y 0.00% 182 A2A Report on Operations 2024 Sustainability Statement Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) OpEx (3) € OpEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Infrastructure enabling low-carbon road transport and public transport CCM 6.15 570,130 0.13% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y Y Y Y 0.12% E Construction of new buildings CCM 7.1\. CE 3.1 0.00% Y N/EL N/EL N N/EL N/EL Y Y Y Y Y Y Y 0.00% Renovation of existing buildings CCM 7.2. CE 3.2 \- 0.00% Y N/EL N/EL Y N/EL N/EL Y Y Y Y Y N Y 0.00% T Installation, maintenance and repair of energy efficiency equipment CCM 7.3 28,457,036 6.45% Y N/EL N/EL N/EL N/EL N/EL N Y N N Y N Y 29.95% E Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) CCM 7.4 111,185 0.03% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.09% E Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings CCM 7.5 \- 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.00% E Installation, maintenance and repair of renewable energy technologies CCM 7.6 67 7,6 8 1 0.15% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.33% E Professional services related to energy performance of buildings CCM 9.3 \- 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.00% E Opex of environmentally sustainable activities (Taxonomy-aligned) 136,637,277 30.99% 28.61% 0.00% 0.38% 0.49% 1.51% 0.00% 52.72% of which enabling 44,473,464 10.09% 10.09% 0.00% 0.00% 0.00% 0.00% 0.00% 33.56% E of which transitional \- 0.0% 0.0% 0.00% T Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 183 Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) OpEx (3) € OpEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Infrastructure enabling low-carbon road transport and public transport CCM 6.15 570,130 0.13% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y Y Y Y 0.12% E Construction of new buildings CCM 7.1\. CE 3.1 0.00% Y N/EL N/EL N N/EL N/EL Y Y Y Y Y Y Y 0.00% Renovation of existing buildings CCM 7.2. CE 3.2 \- 0.00% Y N/EL N/EL Y N/EL N/EL Y Y Y Y Y N Y 0.00% T Installation, maintenance and repair of energy efficiency equipment CCM 7.3 28,457,036 6.45% Y N/EL N/EL N/EL N/EL N/EL N Y N N Y N Y 29.95% E Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) CCM 7.4 111,185 0.03% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.09% E Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings CCM 7.5 \- 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.00% E Installation, maintenance and repair of renewable energy technologies CCM 7.6 67 7,6 8 1 0.15% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.33% E Professional services related to energy performance of buildings CCM 9.3 \- 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.00% E Opex of environmentally sustainable activities (Taxonomy-aligned) 136,637,277 30.99% 28.61% 0.00% 0.38% 0.49% 1.51% 0.00% 52.72% of which enabling 44,473,464 10.09% 10.09% 0.00% 0.00% 0.00% 0.00% 0.00% 33.56% E of which transitional \- 0.0% 0.0% 0.00% T 184 A2A Report on Operations 2024 Sustainability Statement Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) OpEx (3) € OpEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Electricity generation using solar photovoltaic technology CCM 4.1 0.00% EL N/EL N/EL N/EL N/EL N/EL 0.00% Transmission and distribution networks for renewable and low-carbon gases CCM 4.14 1,768,548 0.40% EL N/EL N/EL N/EL N/EL N/EL 1.90% District heating/ cooling distribution CCM 4.15 956,246 0.22% EL N/EL N/EL N/EL N/EL N/EL 0.16% Electricity generation from fossil gaseous fuels CCM 4.29 23,152,113 5.25% EL N/EL N/EL N/EL N/EL N/EL 4.72% Electricity generation from wind power CCM 4.3 613,642 0.14% EL N/EL N/EL N/EL N/EL N/EL 2.50% High-efficiency co- generation of heat/cool and power from fossil gaseous fuels CCM 4.30 9,580,155 2.17% EL N/EL N/EL N/EL N/EL N/EL 0.00% Production of heat/ cool from fossil gaseous fuels in an efficient district heating and cooling system CCM 4.31 2,624,737 0.60% EL N/EL N/EL N/EL N/EL N/EL 0.48% Transmission and distribution of electricity CCM 4.9 1,470,641 0.33% EL N/EL N/EL N/EL N/EL N/EL 0.32% Construction, extension and operation of water collection, treatment and supply systems CCM 5.1. WTR 2.1 3,418,358 0.78% EL N/EL EL N/EL N/EL N/EL 0.69% Landfill gas capture and utilisation CCM 5.10 38,550 0.01% EL N/EL N/EL N/EL N/EL N/EL 0.01% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 159,285 0.04% EL N/EL EL N/EL N/EL N/EL 0.45% Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 185 Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) OpEx (3) € OpEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Electricity generation using solar photovoltaic technology CCM 4.1 0.00% EL N/EL N/EL N/EL N/EL N/EL 0.00% Transmission and distribution networks for renewable and low-carbon gases CCM 4.14 1,768,548 0.40% EL N/EL N/EL N/EL N/EL N/EL 1.90% District heating/ cooling distribution CCM 4.15 956,246 0.22% EL N/EL N/EL N/EL N/EL N/EL 0.16% Electricity generation from fossil gaseous fuels CCM 4.29 23,152,113 5.25% EL N/EL N/EL N/EL N/EL N/EL 4.72% Electricity generation from wind power CCM 4.3 613,642 0.14% EL N/EL N/EL N/EL N/EL N/EL 2.50% High-efficiency co- generation of heat/cool and power from fossil gaseous fuels CCM 4.30 9,580,155 2.17% EL N/EL N/EL N/EL N/EL N/EL 0.00% Production of heat/ cool from fossil gaseous fuels in an efficient district heating and cooling system CCM 4.31 2,624,737 0.60% EL N/EL N/EL N/EL N/EL N/EL 0.48% Transmission and distribution of electricity CCM 4.9 1,470,641 0.33% EL N/EL N/EL N/EL N/EL N/EL 0.32% Construction, extension and operation of water collection, treatment and supply systems CCM 5.1. WTR 2.1 3,418,358 0.78% EL N/EL EL N/EL N/EL N/EL 0.69% Landfill gas capture and utilisation CCM 5.10 38,550 0.01% EL N/EL N/EL N/EL N/EL N/EL 0.01% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 159,285 0.04% EL N/EL EL N/EL N/EL N/EL 0.45% 186 A2A Report on Operations 2024 Sustainability Statement Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) OpEx (3) € OpEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Material recovery from non-hazardous waste CCM 5.9. CE 2.7 127,961 0.03% EL N/EL N/EL EL N/EL N/EL 0.40% Construction of new buildings CCM 7.1\. CE 3.1 \- 0.00% EL N/EL N/EL EL N/EL N/EL 0.00% Renovation of existing buildings CCM 7.2. CE 3.2 \- 0.00% EL N/EL N/EL EL N/EL N/EL 0.00% Data processing, hosting and related activities CCM 8.1 70 7,0 5 4 0.16% EL N/EL N/EL N/EL N/EL N/EL 0.15% Opex of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) 44,617,291 10.12% 10.12% 0.00% 0.81% 0.03% 0.00% 0.00% 11.79% Opex of Taxonomy eligible activities (A1+A2) 181,254,569 41.11% 39.61% 0.00% 1.93% 9.01% 1.51% 0.00% 64.5% B. Taxonomy non-eligible activities Opex of Taxonomy non-eligible activities 259,603,521 58.89% Total 440,858,089 100% Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 187 Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) OpEx (3) € OpEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Material recovery from non-hazardous waste CCM 5.9. CE 2.7 127,961 0.03% EL N/EL N/EL EL N/EL N/EL 0.40% Construction of new buildings CCM 7.1\. CE 3.1 \- 0.00% EL N/EL N/EL EL N/EL N/EL 0.00% Renovation of existing buildings CCM 7.2. CE 3.2 \- 0.00% EL N/EL N/EL EL N/EL N/EL 0.00% Data processing, hosting and related activities CCM 8.1 70 7,0 5 4 0.16% EL N/EL N/EL N/EL N/EL N/EL 0.15% Opex of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) 44,617,291 10.12% 10.12% 0.00% 0.81% 0.03% 0.00% 0.00% 11.79% Opex of Taxonomy eligible activities (A1+A2) 181,254,569 41.11% 39.61% 0.00% 1.93% 9.01% 1.51% 0.00% 64.5% B. Taxonomy non-eligible activities Opex of Taxonomy non-eligible activities 259,603,521 58.89% Total 440,858,089 100% 188 A2A Report on Operations 2024 Sustainability Statement Table 35 Share of capital expenditures from products or services associated with eligible and taxonomy-aligned economic activities Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) CapEx (3) € CapEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T A. Taxonomy eligible activities A.1\. Environmentally sustainable activities (Taxonomy-aligned) Electricity generation using solar photovoltaic technology PPC 2.2 15,080,320 0.78% N/EL N/EL N/EL N/EL Y N/EL N Y Y N N Y Y 1.16% Electricity generation using solar photovoltaic technology CCM 4.1 109,042,198 5.61% Y N/EL N/EL N/EL N/EL N/EL N Y N Y N Y Y 3.82% Storage of electric energy CCM 4.10 15,458,929 0.80% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.00% E Storage of thermal energy CCM 4.11 5 97, 2 2 1 0.03% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.08% E Transmission and distribution networks for renewable and low-carbon gases CCM 4.14 60,512,014 3.11% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 5.20% District heating/ cooling distribution CCM 4.15 56,452,769 2.91% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 4.18% Installation and operation of electric heat pumps CCM 4.16 582,588 0.03% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.05% Cogeneration of heat/cool and power from bioenergy CCM 4.20 809,765 0.04% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.04% Production of heat/ cool using waste heat CCM 4.25 2,054,358 0.11% Y N/EL N/EL N/EL N/EL N/EL N Y N Y Y Y Y 0.16% Electricity generation from wind power CCM 4.3 11,960,119 0.62% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 1.77% Electricity generation from hydropower CCM 4.5 27,869,040 1.43% Y N/EL N/EL N/EL N/EL N/EL N Y Y N N Y Y 1.71% Electricity generation from bioenergy CCM 4.8 16,382,335 0.84% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 1.41% Transmission and distribution of electricity CCM 4.9 566,868,639 29.17% Y N/EL N/EL N/EL N/EL N/EL N Y N Y Y Y Y 15.11% E Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 189 Table 35 Share of capital expenditures from products or services associated with eligible and taxonomy-aligned economic activities Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) CapEx (3) € CapEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T A. Taxonomy eligible activities A.1\. Environmentally sustainable activities (Taxonomy-aligned) Electricity generation using solar photovoltaic technology PPC 2.2 15,080,320 0.78% N/EL N/EL N/EL N/EL Y N/EL N Y Y N N Y Y 1.16% Electricity generation using solar photovoltaic technology CCM 4.1 109,042,198 5.61% Y N/EL N/EL N/EL N/EL N/EL N Y N Y N Y Y 3.82% Storage of electric energy CCM 4.10 15,458,929 0.80% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.00% E Storage of thermal energy CCM 4.11 5 97, 2 2 1 0.03% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.08% E Transmission and distribution networks for renewable and low-carbon gases CCM 4.14 60,512,014 3.11% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 5.20% District heating/ cooling distribution CCM 4.15 56,452,769 2.91% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 4.18% Installation and operation of electric heat pumps CCM 4.16 582,588 0.03% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 0.05% Cogeneration of heat/cool and power from bioenergy CCM 4.20 809,765 0.04% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.04% Production of heat/ cool using waste heat CCM 4.25 2,054,358 0.11% Y N/EL N/EL N/EL N/EL N/EL N Y N Y Y Y Y 0.16% Electricity generation from wind power CCM 4.3 11,960,119 0.62% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y N Y Y 1.77% Electricity generation from hydropower CCM 4.5 27,869,040 1.43% Y N/EL N/EL N/EL N/EL N/EL N Y Y N N Y Y 1.71% Electricity generation from bioenergy CCM 4.8 16,382,335 0.84% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 1.41% Transmission and distribution of electricity CCM 4.9 566,868,639 29.17% Y N/EL N/EL N/EL N/EL N/EL N Y N Y Y Y Y 15.11% E 190 A2A Report on Operations 2024 Sustainability Statement Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) CapEx (3) € CapEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Construction, extension and operation of water collection, treatment and supply systems CCM 5.1. WTR 2.1 25,733,455 1.32% Y N/EL N N/EL N/EL N/EL Y Y Y N N Y Y 2.32% Landfill gas capture and utilisation CCM 5.10 1,560,280 0.08% Y N/EL N/EL N/EL N/EL N/EL N Y N N Y Y Y 0.00% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 3,854,009 0.20% Y N/EL Y N/EL N/EL N/EL N Y Y N Y Y Y 1.22% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 4,221,874 0.22% Y N/EL N N/EL N/EL N/EL N Y Y N Y Y Y 0.00% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 16,186,531 0.83% N N/EL Y N/EL N/EL N/EL Y Y Y N Y Y Y 0.00% Collection and transport of non- hazardous waste in source segregated fractions CCM 5.5. CE 2.3 38,033,393 1.96% Y N/EL N/EL Y N/EL N/EL N Y Y N N N Y 2.41% Anaerobic digestion of sewage sludge CCM 5.6 4,316,993 0.22% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.34% Anaerobic digestion of bio-waste CCM 5.7. C E 2.5 4,586,584 0.24% Y N/EL N/EL Y N/EL N/EL Y Y Y N Y Y Y 0.21% Composting of bio- waste CCM 5.8. CE 2.5 35,531 0.00% Y N/EL N/EL Y N/EL N/EL Y Y N N Y Y Y 0.03% Material recovery from non-hazardous waste CCM 5.9. CE 2.7 5,199,731 0.27% Y N/EL N/EL Y N/EL N/EL N Y N N N Y Y 0.27% Material recovery from non-hazardous waste CCM 5.9. CE 2.7 13,530,919 0.70% N N/EL N/EL Y N/EL N/EL Y Y N N N Y Y 0.00% Infrastructure enabling low-carbon road transport and public transport CCM 6.15 10,987,276 0.57% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y Y Y Y 0.55% E Construction of new buildings CCM 7.1\. CE 3.1 31,739,992 1.63% Y N/EL N/EL N N/EL N/EL Y Y Y Y Y Y Y 3.00% Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 191 Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) CapEx (3) € CapEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Construction, extension and operation of water collection, treatment and supply systems CCM 5.1. WTR 2.1 25,733,455 1.32% Y N/EL N N/EL N/EL N/EL Y Y Y N N Y Y 2.32% Landfill gas capture and utilisation CCM 5.10 1,560,280 0.08% Y N/EL N/EL N/EL N/EL N/EL N Y N N Y Y Y 0.00% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 3,854,009 0.20% Y N/EL Y N/EL N/EL N/EL N Y Y N Y Y Y 1.22% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 4,221,874 0.22% Y N/EL N N/EL N/EL N/EL N Y Y N Y Y Y 0.00% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 16,186,531 0.83% N N/EL Y N/EL N/EL N/EL Y Y Y N Y Y Y 0.00% Collection and transport of non- hazardous waste in source segregated fractions CCM 5.5. CE 2.3 38,033,393 1.96% Y N/EL N/EL Y N/EL N/EL N Y Y N N N Y 2.41% Anaerobic digestion of sewage sludge CCM 5.6 4,316,993 0.22% Y N/EL N/EL N/EL N/EL N/EL N Y Y N Y Y Y 0.34% Anaerobic digestion of bio-waste CCM 5.7. C E 2.5 4,586,584 0.24% Y N/EL N/EL Y N/EL N/EL Y Y Y N Y Y Y 0.21% Composting of bio- waste CCM 5.8. CE 2.5 35,531 0.00% Y N/EL N/EL Y N/EL N/EL Y Y N N Y Y Y 0.03% Material recovery from non-hazardous waste CCM 5.9. CE 2.7 5,199,731 0.27% Y N/EL N/EL Y N/EL N/EL N Y N N N Y Y 0.27% Material recovery from non-hazardous waste CCM 5.9. CE 2.7 13,530,919 0.70% N N/EL N/EL Y N/EL N/EL Y Y N N N Y Y 0.00% Infrastructure enabling low-carbon road transport and public transport CCM 6.15 10,987,276 0.57% Y N/EL N/EL N/EL N/EL N/EL N Y Y Y Y Y Y 0.55% E Construction of new buildings CCM 7.1\. CE 3.1 31,739,992 1.63% Y N/EL N/EL N N/EL N/EL Y Y Y Y Y Y Y 3.00% 192 A2A Report on Operations 2024 Sustainability Statement Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) CapEx (3) € CapEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Renovation of existing buildings CCM 7.2. CE 3.2 1,380,830 0.07% Y N/EL N/EL N N/EL N/EL Y Y Y Y Y N Y 0.29% T Installation, maintenance and repair of energy efficiency equipment CCM 7.3 27,592,510 1.42% Y N/EL N/EL N/EL N/EL N/EL N Y N N Y N Y 1.96% E Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) CCM 7.4 370,085 0.02% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.03% E Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings CCM 7.5 1,292 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.00% E Installation, maintenance and repair of renewable energy technologies CCM 7.6 2,730,935 0.14% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.27% E Professional services related to energy performance of buildings CCM 9.3 \- 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.00% E Capex of environmentally sustainable activities (Taxonomy-aligned) 1,075,723,516 55.36% 53.05% 0.00% 0.83% 0.70% 0.78% 0.00% 47.55% of which enabling 624,606,888 32.14% 32.14% 0.00% 0.00% 0.00% 0.00% 0.00% 17.99% E of which transitional 1,380,830 0.07% 0.07% 0.29% T A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Electricity generation using solar photovoltaic technology CCM 4,1 45,259 0.00% EL N/EL N/EL N/EL N/EL N/EL 0.00% Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 193 Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) CapEx (3) € CapEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Renovation of existing buildings CCM 7.2. CE 3.2 1,380,830 0.07% Y N/EL N/EL N N/EL N/EL Y Y Y Y Y N Y 0.29% T Installation, maintenance and repair of energy efficiency equipment CCM 7.3 27,592,510 1.42% Y N/EL N/EL N/EL N/EL N/EL N Y N N Y N Y 1.96% E Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) CCM 7.4 370,085 0.02% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.03% E Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings CCM 7.5 1,292 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.00% E Installation, maintenance and repair of renewable energy technologies CCM 7.6 2,730,935 0.14% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.27% E Professional services related to energy performance of buildings CCM 9.3 \- 0.00% Y N/EL N/EL N/EL N/EL N/EL N Y N N N N N 0.00% E Capex of environmentally sustainable activities (Taxonomy-aligned) 1,075,723,516 55.36% 53.05% 0.00% 0.83% 0.70% 0.78% 0.00% 47.55% of which enabling 624,606,888 32.14% 32.14% 0.00% 0.00% 0.00% 0.00% 0.00% 17.99% E of which transitional 1,380,830 0.07% 0.07% 0.29% T A.2. Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Electricity generation using solar photovoltaic technology CCM 4,1 45,259 0.00% EL N/EL N/EL N/EL N/EL N/EL 0.00% 194 A2A Report on Operations 2024 Sustainability Statement Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) CapEx (3) € CapEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Transmission and distribution networks for renewable and low-carbon gases CCM 4.14 10,947,582 0.56% EL N/EL N/EL N/EL N/EL N/EL 5.19% District heating/ cooling distribution CCM 4.15 3,800,702 0.20% EL N/EL N/EL N/EL N/EL N/EL 0.18% Electricity generation from fossil gaseous fuels CCM 4.29 191,252,272 9.84% EL N/EL N/EL N/EL N/EL N/EL 11.53% Electricity generation from wind power CCM 4.3 373,767 0.02% EL N/EL N/EL N/EL N/EL N/EL 0.98% High-efficiency co- generation of heat/ cool and power from fossil gaseous fuels CCM 4.30 17,326,149 0.89% EL N/EL N/EL N/EL N/EL N/EL 0.00% Production of heat/ cool from fossil gaseous fuels in an efficient district heating and cooling system CCM 4.31 11,931,956 0.61% EL N/EL N/EL N/EL N/EL N/EL 0.66% Transmission and distribution of electricity CCM 4.9 37, 4 5 4 ,78 9 1.93% EL N/EL N/EL N/EL N/EL N/EL 1.76% Construction, extension and operation of water collection, treatment and supply systems CCM 5.1. WTR 2.1 30,473,709 1.57% EL N/EL EL N/EL N/EL N/EL 1.51% Landfill gas capture and utilisation CCM 5.10 124,641 0.01% EL N/EL N/EL N/EL N/EL N/EL 0.00% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 10,089,830 0.52% EL N/EL EL N/EL N/EL N/EL 1.91% Material recovery from non-hazardous waste CCM 5.9. CE 2.7 629,943 0.03% EL N/EL N/EL EL N/EL N/EL 0.30% Construction of new buildings CCM 7.1\. CE 3.1 2,800,177 0.14% EL N/EL N/EL EL N/EL N/EL 0.00% Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 195 Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) CapEx (3) € CapEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Transmission and distribution networks for renewable and low-carbon gases CCM 4.14 10,947,582 0.56% EL N/EL N/EL N/EL N/EL N/EL 5.19% District heating/ cooling distribution CCM 4.15 3,800,702 0.20% EL N/EL N/EL N/EL N/EL N/EL 0.18% Electricity generation from fossil gaseous fuels CCM 4.29 191,252,272 9.84% EL N/EL N/EL N/EL N/EL N/EL 11.53% Electricity generation from wind power CCM 4.3 373,767 0.02% EL N/EL N/EL N/EL N/EL N/EL 0.98% High-efficiency co- generation of heat/ cool and power from fossil gaseous fuels CCM 4.30 17,326,149 0.89% EL N/EL N/EL N/EL N/EL N/EL 0.00% Production of heat/ cool from fossil gaseous fuels in an efficient district heating and cooling system CCM 4.31 11,931,956 0.61% EL N/EL N/EL N/EL N/EL N/EL 0.66% Transmission and distribution of electricity CCM 4.9 37, 4 5 4 ,78 9 1.93% EL N/EL N/EL N/EL N/EL N/EL 1.76% Construction, extension and operation of water collection, treatment and supply systems CCM 5.1. WTR 2.1 30,473,709 1.57% EL N/EL EL N/EL N/EL N/EL 1.51% Landfill gas capture and utilisation CCM 5.10 124,641 0.01% EL N/EL N/EL N/EL N/EL N/EL 0.00% Construction, extension and operation of waste water collection and treatment CCM 5.3. WTR 2.2 10,089,830 0.52% EL N/EL EL N/EL N/EL N/EL 1.91% Material recovery from non-hazardous waste CCM 5.9. CE 2.7 629,943 0.03% EL N/EL N/EL EL N/EL N/EL 0.30% Construction of new buildings CCM 7.1\. CE 3.1 2,800,177 0.14% EL N/EL N/EL EL N/EL N/EL 0.00% 196 A2A Report on Operations 2024 Sustainability Statement Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) CapEx (3) € CapEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Renovation of existing buildings CCM 7.2. CE 3.2 35,301 0.00% EL N/EL N/EL EL N/EL N/EL 0.00% Data processing, hosting and related activities CCM 8.1 141,750 0.01% EL N/EL N/EL N/EL N/EL N/EL 0.00% Capex of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) 317,422,826 16.34% 16.33% 0.00% 2.09% 0.18% 0.00% 0.00% 24.03% Capex of Taxonomy eligible activities (A1+A2) 1,393,146,342 71.69% 70.92% 0.00% 4.66% 5.04% 0.78% 0.00% 71.6% B. Taxonomy non-eligible activities Capex of Taxonomy non- eligible activities 550,026,458 28.31% Total 1,943,172,800 100% Table 36 Financial year N 2024 Economic activity Code Share of eligible turnover % Share of aligned turnover % Taxonomy eligible acitivites Climate change adaptation CCA 0 0 Climate change mitigation CCM 26.83% 15.63% Water and marine resources WTR 1.10% 0.29% Circular economy CE 3.65% 3.64% Pollution prevention and control PPC 0.61% 0.61% Biodiversity and ecosystems BIO 0 Na Table 37 Financial year N 2024 Economic activity Code Share of eligible Opex % Share of aligned Opex % Taxonomy eligible acitivites Climate change adaptation CCA 0 0 Climate change mitigation CCM 39.61% 28.61% Water and marine resources WTR 1.93% 0.42% Circular economy CE 9.01% 8.98% Pollution prevention and control PPC 1.51% 1.51% Biodiversity and ecosystems BIO 0 Na Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 197 Financial year N 2024 Substantial contribution criteria DNSH criteri (Does not significantly harm) Economic activity (1) Code (2) CapEx (3) € CapEx share (4) % Climate change mitigation (5) % Climate change adaptation (6) % Water and marine resources (7) % Circular economy (8) % Pollution (9) % Biodiversity and ecosystems (10) % Climate change mitigation (11) Y/ N Climate change adaptation (12) Y/N Water and marine resources (13) Y/N Circular economy (14) Y/N Pollution (15) Y/ N Biodiversity and ecosystems (16) Y/N Minimum safeguards criteria (17) Y/ N Portion of Turnover aligned (A.1.) or eligible (A.2.) to EU Taxonomy, year N -1 (18) % Category (e.g. enabling activity) (19) E Category (Transitional activity) (20) T Renovation of existing buildings CCM 7.2. CE 3.2 35,301 0.00% EL N/EL N/EL EL N/EL N/EL 0.00% Data processing, hosting and related activities CCM 8.1 141,750 0.01% EL N/EL N/EL N/EL N/EL N/EL 0.00% Capex of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) 317,422,826 16.34% 16.33% 0.00% 2.09% 0.18% 0.00% 0.00% 24.03% Capex of Taxonomy eligible activities (A1+A2) 1,393,146,342 71.69% 70.92% 0.00% 4.66% 5.04% 0.78% 0.00% 71.6% B. Taxonomy non-eligible activities Capex of Taxonomy non- eligible activities 550,026,458 28.31% Total 1,943,172,800 100% Table 38 Financial year N 2024 Economic activity Code Share of eligible Capex % Share of aligned Capex % Taxonomy eligible acitivites Climate change adaptation CCA 0 0 Climate change mitigation CCM 70.92% 53.05% Water and marine resources WTR 4.66% 1.03% Circular economy CE 5.04% 3.16% Pollution prevention and control PPC 0.78% 0.78% Biodiversity and ecosystems BIO 0 Na 198 A2A Report on Operations 2024 Sustainability Statement 5.2.1 ESRS E1 Climate change Table 39 Impacts: ESRS E1 Sustainability topic Impact Type Stage Time horizon Short Medium Long Climate change adaptation Contribution to the acceleration of the energy transition through sustainable infrastructure development Positive Actual OO, EE, C, R, I Climate change mitigation Generation of direct GHG emissions, related to the activities carried out in the Group’s offices and sites Negative Actual OO Generation of indirect GHG emissions, related to activities carried out at the Group’s offices and sites Negative Actual OO Generation of climate-changing emissions produced in the value chain as a result of activities Negative Actual OO, EE, P, C, GN, R, I Contributing to the fight against climate change through investments in R&D and Digital & Innovation Positive Actual OO, EE, C Contributing to and supporting the development of Smart Cities in the territories where the Group operates through new innovative and digital business models Positive Actual OO, EE, C, I Contribution to the acceleration of the transition to electric mobility and its deployment Positive Actual OO, EE Contribution to the reduction of greenhouse gas emissions by offering customers energy from renewable sources Positive Actual OO, EE Reduction of greenhouse gas emissions through the use of district heating solutions involving centralised heat production Positive Actual OO, C Contribution to the development of Renewable Energy Sources (RES) in Italy through specific investments and the acquisition, within the Group perimeter, of dedicated companies Positive Actual OO, EE, C Energy Energy consumption for industrial processes with negative consequences on the environment and reduction of the energy stock Negative Actual OO, EE, P, C, GN, R, I Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 199 Table 40 Risks: ESRS E1 Sustainability topic Risk Stage Time horizon Short Medium Long Climate change adaptation Extreme weather phenomena Risks to Group assets and business continuity as a result of the risks arising from acute physical climatic hazards (floods, landslides, water bombs, tornadoes, hail) affecting Group facilities and infrastructure. OO Scarcity of water for drinking water use Risk of failure to continuously supply drinking water in the event of prolonged periods of drought and/or changes in the hydrogeological regime. OO, I Resilience of electricity distribution grids Risk of interruptions in the electricity distribution service caused mainly by physical causes (peaks in demand for summer air conditioning as a result of heat waves and flooding caused by heavy rain) and transition causes (increased energy demand as a result of electrification of services). OO, EE Climate change mitigation EUAs emission allowances Risks related to changes in the price of emission allowances other than those assumed in the Business Plan. OO Biomass Plan Targets Possible failure to fully achieve the growth targets envisaged in the Business Plan with regard to the development of bioenergy due to changes in the regulatory framework of the incentive system, delays in obtaining authorisations and possible changes in the availability and price of biomass. OO Carbon footprint Potential reputational impacts for the A2A Group resulting from the failure to implement the decarbonization programs planned and communicated by the company, programs that are subject to the following main sources of uncertainty: \- possible geopolitical, market or climatic situations that could lead to an increase in the demand for energy from fossil sources, either to meet a possible higher domestic demand for energy or to compensate for any lower production from renewable sources (mainly hydroelectric) and/or any lower imports; \- changes in the environment in which the group operates such as regulatory changes that have an unfavourable impact on the development of renewable energy sources; \- insufficient technological development, which may not adequately support the replacement of fossil production and/or the removal of carbon (“carbon removal”) from processes that are inherently “carbon intensive” (hard-to-abate). OO, EE ETS Directive Revision Risk concerning the application of the Emissions Trading Scheme to the Group’s waste-to-energy facilities following the revision of the EU Directive OO Energy E-mobility Plan Targets Possible non-fulfilment of the growth targets envisaged in the Business Plan with regard to electric vehicle charging stations due to the lower than expected penetration rate of electric vehicles; higher prices for materials and supplies and longer delivery times. OO Change in the precipitation regime (hydraulicity) Risks related to changes in the availability of water resources at the Group’s main hydroelectric plants. OO 200 A2A Report on Operations 2024 Sustainability Statement Table 41 Opportunities: ESRS E1 Sustainability topic Opportunity Stage Time horizon Short Medium Long Climate change adaptation Opportunities to make remunerated capital expenditures and participate in programs defined by ARERA aimed at increasing the resilience and flexibility of electricity distribution grids OO, EE Opportunities to make remunerated adaptation investments OO, EE Possibility that favourable changes in climatic conditions (e.g. changes in water availability for some of the main hydroelectric plants) could have a positive impact on the profitability of the Group’s hydroelectric plants OO Climate change mitigation Opportunity for the Group to support with sustainable finance instruments its strategy of funding “green” investments outlined in the Business and Sustainability Plan OO Energy Opportunity to increase demand for energy efficiency solutions by Public Administration and business and/or retail customers, also favoured by the spread of incentive systems OO, EE Regulatory framework favorable to the implementation of the energy transition OO; transversal along the VC Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 201 be prepared, a document that will be updated annually and in which [16j] timely reporting on progress in implementing the explicit decarbonization levers will be provided. [16g] It should also be noted that, for Transition Plan reporting purposes, the Group is not excluded from the Paris-aligned EU benchmarks. [16a] Pending the elaboration and publication of the Transition Plan for Climate Change Mitigation, the Group has consolidated its climate change mitigation pathway by including GHG emission reduction targets in its Strategic Plan. It should also be noted that a detailed analysis on the expected trend of the KPIs of alignment to the Taxonomy in relation to the Transition Plans has not been formalised. The current decarbonization targets reflect the Group’s effort to move as close as possible to the trajectory envisaged by the Paris Agreement, according to a realistic logic and without taking into account possible future technological evolutions, which cannot be foreseen precisely at present. In particular, the Strategic Plan published in November 2024 confirmed the Group’s decarbonization target to 2030, aligned to the 2°C trajectory, and further strengthened to 2035 with a target of -65% of the Scope 1 and Scope 2 emission factor, aligned to the WB2C trajectory, compared to 2017 values 1 through [16b] 2 : • reduction of energy production from CCGTs, in favour of a more extensive use of renewables; • zeroing of Scope 2 emissions by 2026; • electrification of the corporate fleet; • application of Carbon Capture and Storage on a Group plant. Strategy ESRS E1-1 Transition plan for climate change mitigation [14, 17] In 2024, the A2A Group started a process of defining its Transition Plan according to the Transition Plan Taskforce (TPT) framework. In 2024, the Transition Plans of the Group’s 4 Business Units were drawn up, with the aim of defining for each its emission inventory, specific decarbonization strategy and related levers, investments and governance structure of the Plan. As part of the project, the short-, medium- and long-term economic-industrial scenario was analysed and the related risks and opportunities. Subsequently, the Group’s Business Units, starting from the most recent Carbon Footprint, analysed the emission sources and identified some potential decarbonization levers applicable to each business. These levers were then assessed in detail, both from the point of view of decarbonization potential and technical and economic-financial feasibility. From the combination of the levers, the targets of the BUs descend directly. [16h] The Transition Plans of each Business Unit allowed the analysis of the decarbonization strategy to be pushed beyond the Strategic Plan horizon to 2035, envisaging its complete alignment with the Group’s business and strategic planning and defining 2040 and 2050 targets for each business. [16i] These Plans have been approved by the Chief Executive Officer and, by the 2025 deadline, the Group Transition Plan will also 1\. Please refer to the disclosure within the E1-4 disclosure requirement for more details on the GHG emission reduction targets set by the A2A Group. 2\. Please refer to the disclosure within the E1-3 disclosure requirement for more details on climate change mitigation actions developed and implemented during 2024. 202 A2A Report on Operations 2024 Sustainability Statement upgrading of electricity grids, the development of renewable energy and energy flexibility. Among the most significant interventions is the development of up to 5.7 GW of RES capacity by 2035, which is associated with almost 5 billion CapEx. This boost will constitute the baseload of energy fed into the grid and marketed, which traditional plants will make up for when demand from customers and citizens reaches peak times; • 6 billion euro dedicated to the circular economy pillar, which, through energy recovery actions and the expansion of district heating services, will contribute to a further push towards the decarbonization of the Group and, more generally, of the Italian system. With regard to district heating, in detail, an increase in the share of heat from non-fossil sources (e.g. waste heat from production processes by third parties, which would otherwise be dispersed) to 60% is envisaged. Furthermore, reduction targets related to Scope 3 emissions along the Group’s value chain have been set in the Strategic Plan; in particular, the Group has set a target to reduce Scope 3 emissions to 2035 from 2023 values: • by 65% the emission contribution of upstream energy carriers used in industry; • emissions from gas sales to end customers by 26%. [16j] Timely reporting of progress on the implementation of the decarbonization levers set out in the Transition Plan will be included from 2025, when the Group will have published its transition document. [16c] The Group envisages a CapEx plan of 22 billion euro over the period 2024-2035, of which: • 16 billion allocated to the energy transition pillar, which includes investments in the Table 42 Financial resources allocated to the action plan u.m. 2024 2023 Financial resources allocated to the action plan (OpEx) € 83,823,994 - Financial resources allocated to the action plan (CapEx) € 533,698,495 - [16d] Given the Group’s different businesses, so-called ‘blocked’ emissions are an issue of primary importance and of careful and continuous evaluation. Waste-to-energy plants, energy production plants from traditional sources and emissions related to the use of gas by customers are, with reasonable certainty, the emission hotspots that will characterize the Group in the coming years and on which we are working, in order to understand which technologies can help in the improvement of the decarbonization strategy. It should be noted that the objectives presented in the latest update of the Strategic Plan consider the technologies that are mature and applicable to today, without taking into account the technological evolution of the coming years which, hopefully, will contribute to the achievement of more challenging objectives and in line with international best practices. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 203 of Internal Control and Risk Management (SCIGR) and the Enterprise Risk Management (ERM) process. [18] The relevant climate-related risks identified with the distinction between physical risk and transition risk, the reference time horizon and the alignment with the climate scenario considered by the Group are listed below. [AR7b] The time horizon of resilience analysis and risk assessment covers the horizon of the Business Plan (up to 2035). ESRS E1 SBM-3 Material impacts, risks and opportunities and their interaction with the strategy and business model [19a] The resilience analysis of the A2A Group’s strategy and business model in the face of climate change has as its starting point and prerequisite the analysis and assessment of physical and transitional climate risks. The analysis is extended to all Group companies, consistent with the Guidelines for the System [16e] Finally, with the aim of improving performance within the European Taxonomy, the Group carried out an eligibility assessment on the investments (Capex) planned up to 2035 when publishing the Strategic Plan. This analysis allows the prioritisation of potentially aligned investments in line with Regulation (EU) 2020/852. [16f] The following table shows the significant amounts of CapEx invested in coal-, oil- and gas- related economic activities: Table 43 Significant investments in fossil fuels u.m. 2024 Significant amounts of CapEx in relation to coal-related economic activities - Significant amounts of CapEx in relation to diesel-related economic activities - Significant amounts of CapEx in relation to gas-related economic activities € 220,024,439 Table 44 Material climate risk identified Type of climate risk (18) Time horizons (AR 7b) Alignment with climate and business scenario (AR 7b) Resilience of electricity distribution grids Climate-related physical risk Climate-related transition risk Long-term Ye s Change in the precipitation regime (hydraulicity) Climate-related physical risk Long-term Ye s Carbon footprint Climate-related transition risk Long-term Yes Scarcity of water for drinking water use Climate-related physical risk Long-term Ye s E-mobility Plan Targets Climate-related transition risk Long-term Yes ETS Directive Revision Climate-related transition risk Long-term Yes Change in prices of emission allowances (EUAs) Climate-related transition risk Long-term Yes Biomass Plan Targets Climate-related transition risk Long-term Ye s Extreme weather phenomena Climate-related physical risk Long-term Yes 204 A2A Report on Operations 2024 Sustainability Statement businesses affected by these parameters. With the use of climate scenarios in the Plan, the risk of reduced sales of thermal energy for heating due to milder autumns and winters was reduced and found to be non-material. Regarding the physical climate risks reported in Table 32, these were estimated based on recent trends in the parameters and climate indicators representative of each risk—trends that already account for the climate change that has occurred. Since these indicators and parameters were adopted to consistently estimate risk across the entire horizon of the Industrial Plan (2025–2035), this implies the assumption that there will be no significant further deterioration of the climate over the next decade. [19c, AR8b] As a result of these analyses, the table below shows the main findings that have emerged, i.e. the risks potentially capable of significantly affecting the A2A Group’s business activities and the related measures and strategies of adaptation and resilience to cope with such risks. For each identified risk or opportunity, the line of business concerned and the time horizon over which the risk or opportunity may manifest itself, the description of the risk, the type of impact on the business, the management strategy and the link to the resources on which the business depends as well as to the positioning along the value chain are indicated. Resilience to physical climate risks [19a] The Group carries out the assessment of physical climate risks with reference to the climate-related hazards set out in Commission Delegated Regulation (EU) 2021/2139, which supplements the EU Regulation 2020/852 of 18 June 2020 on establishing a framework for sustainable investment (Taxonomy regulation). For more details on the assessment of physical climate risks, please refer to the E1 ESRS 2 IRO-1 disclosure requirement. [19b] The A2A Group, through a contract with CMCC Centre Euro-Mediterranean for Climate Change, in 2024 acquired long-term climate forecasts (up to 2100) at a local (municipal) scale for the RCP 2.6, RCP 4.5 and RCP 8.5 scenarios, for a portfolio of indicators and municipal territories considered to be a priority in relation to the activities carried out by the A2A Group and the territories in which it operates. The forecasts were adopted in 2024 for the definition of the reference scenario for the Strategic Plan, with regard to the Degree Days parameter, and the risk assessment. The Group has adopted the RCP 4.5 scenario (intermediate mitigation scenario) as a reference for the Degrees Day indicator and has performed risk/opportunity assessments by means of sensitivity analyses with the RCP 2.6 and RCP 8.5 scenarios of the projected profitability in the plan for the Table 45 Physical risks Code Business Unit Classification and time horizon Risk/opportunity topic Impact on business/ business activity Management and capital expenditure strategy Resources and Value Chain E1_1 Generation and Trading Business Unit Physical Chronic Short-term, Medium-term, Long-term Change in the precipitation regime (hydraulicity) Risks related to changes in the availability of water resources at the Group’s main hydroelectric plants. Economic and financial risk/ opportunity Impact: lower/ greater volumes and margins of hydroelectric production. Development of tools to improve precipitation event and outflow forecasts. Development of analysis and engineering models to support the planning of hydroelectric plants, both short and medium term, also with the support of meteorological expertise within the Group. Hydroelectric production well distributed throughout Italy. The Business Plan includes investments to optimize the use of the derived water resource for hydroelectric purposes (e.g., increased production and pumping efficiency). They are investments eligible according to the EU Taxonomy for Green capital expenditures (Regulation 2020/852). Risks/ opportunities related to water resource availability, upstream in the value chain Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 205 Code Business Unit Classification and time horizon Risk/opportunity topic Impact on business/ business activity Management and capital expenditure strategy Resources and Value Chain E1_2 Smart Infrastructures Business Unit Physical Acute Short-term, Medium-term, Long-term Transition Technology Medium-term Long-term Resilience of electricity distribution grids 3 Risk of interruptions of electricity distribution service caused by: physical causes \- peaks in demand for summer air conditioning, due to: \- heat waves \- flooding caused by heavy rains transition causes \- greater energy demand as a result of the electrification of services (electric cars, development of public transport, heating). Opportunities to make remunerated capital expenditures aimed at increasing the resilience and flexibility of electricity distribution grids. Reputational risk Reputational impacts in case of prolonged service interruptions Penalties for non- compliance with minimum levels on continuity of service. Economic and financial opportunity Remuneration of risk management capital expenditures with predetermined rate within ARERA regulated business. Margins already included in Business Plan forecasts. Establishment of a Working Group, in collaboration with the Municipality of Milan, to manage the effects of extreme precipitation. The 2025-35 Business Plan includes a capital expenditure program for the maintenance and development of the electricity grid, enabling both adaptation to physical climatic risks and the progressive electrification of energy services (heat pump heating, electric mobility, induction cookers, etc.), improving efficiency and reducing CO2 emissions. In particular, the plan includes interventions to upgrade and rationalize grids, secondary substations, primary substations and expansion of remote asset management systems. Said CapEX enable the energy transition and are eligible under the EU Taxonomy for Green capital expenditures (Regulation 2020/852). Resilience Plan 2022-24 defined in accordance with ARERA resolutions aimed at mitigating the impacts of heavy rain and heat waves. Risk of peak energy demand on the grid, downstream in the value chain, with regard to issues related to rising temperatures and electrification of services. The flooding phenomena insist on the group’s own operations. Opportunity related to relations with competent authorities in the field of electricity distribution and in relation to energy demand downstream in the value chain. 3\. It should be noted that the risk of ‘Electricity distribution service interruptions’ is both a physical risk and a transition risk. 206 A2A Report on Operations 2024 Sustainability Statement Code Business Unit Classification and time horizon Risk/opportunity topic Impact on business/ business activity Management and capital expenditure strategy Resources and Value Chain E1_3 Smart Infrastructures Business Unit Physical Chronic Medium-term Long-term Scarcity of water for drinking water use Risk of failure to continuously supply drinking water in the event of prolonged periods of drought and/or changes in the hydrogeological regime. Opportunities for remunerated investments to mitigate the impacts of water scarcity Reputational risk Reputational impact in case of interruptions of water supply service for prolonged periods and/or on significant portions of territory. Economic and financial opportunity Remuneration of risk management capital expenditures with predetermined rate within ARERA regulated business. Margins already included in Business Plan forecasts. Mapping of leaks from aqueducts in order to identify the most critical parts. Studies to use – in conditions of scarcity/emergency – freshwater reserves (lakes) to supplement upstream sources. Participation in the “Water Stressed Areas” project: mapping the municipalities most at risk and refining the monitoring of the quantities of treated, dispensed and lost water. Continuous monitoring of source and reservoir levels. Emergency management with road tankers and mobile tanks, also with the support of the Civil Defence. The Business Plan includes investments to: \- reduce leakage from the water grid \- implement capture from new sources of supply \- interconnect aqueducts in order to create a “collaboration” between sources of supply and distribution networks. Since they reduce the risks arising from possible drought phenomena, they can be configured as climate change adaptation activities. Risks related to water resource availability, upstream in the value chain Opportunities related to relations with the competent authorities and the needs of end users, downstream in the value chain. E1_4 A2A Group Physical Acute Short-term, Medium-term Long-term Extreme weather phenomena Risks to the Group’s assets and business continuity as a result of risks arising from acute physical weather hazards (e.g., floods, landslides, water bombs, tornadoes, hail) which affect the Group’s plants and infrastructure Economic and financial risk Impact: direct damage to the Group’s assets and indirect damage due to the need to interrupt production activities. Reputational impacts should such extreme events not be managed in an optimal way for the purposes of territorial safety in the areas where the Group operates. Insurance contracts with extended coverage also for damage from natural phenomena. Improvement plans in terms of loss prevention, shared with the insurance broker. Procedures and emergency and business continuity plans to promptly and optimally manage the onset of any acute weather phenomena. Implementation of plant modifications to prevent Pollution in the event of “water bombs”. Design and construction of installations (e.g., wind and photovoltaic) carried out while considering the features of the territory and local climatology (e.g., slope stability, windiness, etc.). Risk affecting the group’s own operations with consequences of disruption of essential services also downstream in the value chain. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 207 used, such as the price forecasts for electricity and European Allowances (EUA). [19c, AR8b] As a result of these analyses, the table below shows the main findings that have emerged, i.e. the risks potentially capable of significantly affecting the A2A Group’s business activities and the related measures and strategies of adaptation and resilience to cope with such risks. For each identified risk or opportunity, the line of business concerned and the time horizon over which the risk or opportunity may manifest itself, the description of the risk, the type of impact on the business, the management strategy and the link to the resources on which the business depends as well as to the positioning along the value chain are indicated. The main findings relate to the competitive and reputational aspects in relation to decarbonization in a global context that requires addressing its business model towards energy and ecological transition. The Group’s Strategic Plan places the ecological transition at the basis of its growth strategy, not only as a choice of environmental and social responsibility, but also as a competitive choice for the Group and the country system. Resilience to transition climate risks [19a] The Group conducts transition climate risk assessments, also with reference to the recommendations prepared by the Task Force on Climate Related Financial Disclosure. The assessment of transition climate risks for the A2A Group is carried out on the perimeter of the subsidiaries. Analyses concern the potential financial effects on business activities in connection with the transition of global economies to a low-carbon economy, which is expressed through regulatory and technological changes, changes in the expectations of the Group’s stakeholders and possible litigation related to climate change and resource use. The potential expected financial effects of the transition climate risks were quantified according to specific assumptions and models for each risk, for a detailed description of which please refer to disclosure requirement E1 ESRS 2 IRO-1. [19b] For the analysis and assessment of transition climate risks, the forecast data of the macro-economic parameters of the reference scenario adopted for the Strategic Plan were Table 46 Transition risks Code Business Unit Classification and time horizon Risk/opportunity topic and transition event Impact on business/business activity Management and capital expenditure strategy Value Chain E1_5 Waste Business Unit Transition Policy and Legal Medium-term Long-term ETS Directive Revision Risk related to the application of Emissions Trading Schemes for the Group’s waste- to-energy plants following the revision of the EU Directive Economic and financial risk Impact: lower margins and loss of competitiveness of waste-to-energy plants. Monitoring regulatory developments and assessing possible impacts. Participation in international working tables with universities and sector operators to define a shared protocol for the application of the directive to be proposed to the European Union Experimental projects to capture CO 2 emitted by waste- to-energy plants. The Business Plan includes the construction of a plant for the capture and sequestration of CO 2 emitted, based on the results collected in the experimental projects. As this is a regulatory risk, there are risks upstream in the value chain. 208 A2A Report on Operations 2024 Sustainability Statement Code Business Unit Classification and time horizon Risk/opportunity topic and transition event Impact on business/business activity Management and capital expenditure strategy Value Chain E1_6 Smart Infrastructures Business Unit Transition Market Short-term Medium-term Long-term E-mobility Plan Targets Potential shortfall in achieving the growth targets outlined in the Business Plan for electric vehicle charging stations as a result of: \- penetration rate of electric vehicles lower than expected; \- increase in the prices of materials and supplies \- extension of delivery times. Economic and financial risk Impact: lower margins compared to Plan forecasts. Strategic and multidisciplinary management carried out by internal organisational structures dedicated to Business Development. Risk that insists on the Group’s own operations but is closely linked to causes/ criticalities potentially present both upstream (supplies) and downstream (end users) in the value chain. E1_7 Waste BU Transition Policy and Legal Short-term Medium-term Long-term Biomass Plan Targets Potential shortfall in achieving the growth targets foreseen in the Business Plan relating to the development of bioenergy due to: \- modifications in the normative framework governing the incentive system \- delays in obtaining authorizations \- variations in the availability and price of biomass. Economic and financial risk Impact: lower margins compared to Plan forecasts. Strategic and multidisciplinary management carried out by internal organisational structures dedicated to Business Development. Risk that insists on the Group’s own operations, but also linked to potential critical issues in the legislative and regulatory context as well as in the availability of resources upstream in the value chain. E1_8 Generation and Trading Business Unit Transition Policy and Legal Short-term, Medium-term Long-term EUA emission allowances 4 Risks/opportunities related to changes in the price of emission allowances other than those assumed in the Business Plan Economic-financial risk/opportunity Impact: lower/ higher margins of electric production. Management as part of the monitoring of changes in the price of energy commodities in accordance with the Energy Risk Policy. Commodity risk related to price developments on the EUA allowance market. 4\. The variability in the cost of CO 2 emission permits (EU Allowances) can constitute both a risk and an opportunity. The Group’s electricity production is indeed diverse in terms of energy sources, and any fluctuations in the cost of the EUA, linked to the national energy price, could lead to A2A Group experiencing lower or higher margins than those projected in the Strategic Plan. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 209 Code Business Unit Classification and time horizon Risk/opportunity topic and transition event Impact on business/business activity Management and capital expenditure strategy Value Chain E1_9 Smart Infrastructures Business Unit Market Transition Policy and Legal Market Medium-term Long-term Energy efficiency systems Opportunity to increase demand for energy efficiency solutions by Public Administration and business and/or retail customers, also favoured by the spread of incentive systems. Economic and financial opportunity Impact: possibility of margins from the development of energy efficiency service proposal, such as equipment replacement and/or building upgrades. Margins already included in Business Plan forecasts. Presence of corporate S.O. and working groups dedicated to carrying out studies on the applicability of local financing calls and on the methods of access to incentive systems. Strong presence on the territory with district heating services that can “work” in synergy with new interventions on public or private buildings. Management of a consolidated territorial database for the location of interventions and the study of synergies. The Business Plan envisages the development of energy efficiency and district heating efficiency services in the civil, industrial, tertiary and Public Administration sectors. Opportunity related to increased demand for energy efficiency services from end customers downstream in the value chain. E1_10 A2A Group Market (financial markets) Medium-term Long-term Sustainable Finance Framework Opportunity for the Group to support with sustainable finance instruments its strategy of funding “green” investments outlined in the Business and Sustainability Plan. Economic-financial and reputational opportunity Reputational benefit, particularly in relation to institutional investors, investment funds, shareholders, etc. Advantages on economic conditions in the subscription of financing tools, in connection with the achievement of sustainability goals. Establishment of the Sustainable Finance Committee with the aim of monitoring potential “green”/sustainable capital expenditures initiatives and guaranteeing the implementation of capital expenditure projects subject to financing. Development of the Sustainable Finance Framework, in accordance with the Green Bond Principles published by the International Capital Market Association (ICMA) and the Green Loan Principles published by the Loan Market Association (LMA). Definition of a capital expenditure classification system in accordance with international standards and the relevant taxonomy. Issue of “Green Bonds” Subscription of “KPI-linked Bonds”, whose coupon is linked to certain sustainable performance indicators defined by specific KPIs. Opportunities related to investor and lender relations, upstream in the value chain. 210 A2A Report on Operations 2024 Sustainability Statement Impact, risk and opportunity management ESRS E1-2 Policies related to climate change mitigation and adaptation [24,25] The A2A Group places environmental protection, including the achievement of carbon neutrality (Net Zero), as an indispensable objective of its business. In line with this mission, the Group has prepared policy documents addressing these issues, such as the ‘Policy on Environment, Health, Safety and Quality’ and the ‘Statement of Commitment to Reduce Emissions along the Value Chain’. The Policy, endorsed by the Chief Executive Officer, emphasises, within the paragraph on the environment, the Group’s willingness to contribute to climate change mitigation by reducing its carbon footprint through a transition to renewable energy sources and improving its energy performance. This policy is the result of a process of involvement and sharing at all levels of the organisation and has an impact on all workers in their daily activities. The Statement, on the other hand, is a document outlining various actions that the Group intends to undertake through its infrastructure and expertise to contribute to the ecological transition through a series of measures, such as, for example, increasing the production and spread of energy from renewable sources, making its assets more energy efficient and optimizing its existing energy production facilities. The document is addressed to all stakeholders and, in order to ensure utmost transparency, is committed to regular and transparent reporting on actions taken and progress achieved. In addition, since it is important to assess the contribution that the Group makes with its activities, technologies and investments to the decarbonization of the country system, the procedure ‘Determination of avoided CO 2 emissions and energy savings’ has been drawn up, which aims to define a clear methodology for the development of indicators concerning the Group’s emission and energy savings. These indicators are fundamental for measuring and enhancing the positive impact of the processes, [8a] It should be noted that the achievement of the Group’s planned and communicated targets are subject to the following main sources of uncertainty: • possible geopolitical, market or climatic situations that could lead to an increase in the demand for energy from fossil sources, either to meet a possible higher domestic demand for energy or to compensate for any lower production from renewable sources (mainly hydroelectric) and/or any lower imports; • changes in the context in which the group operates such as regulatory changes that have an unfavourable impact on the development of renewable energy sources; • insufficient technological development, which may not adequately support the replacement of fossil production and/or the removal of carbon (“carbon removal”) from processes that are inherently “carbon intensive” (hard-to-abate). In order to mitigate these uncertainties, the Group has a number of monitoring activities in place, such as: 1\. emission trajectory monitoring; 2\. inclusion in the investment appraisal process of the assessment of alignment to the European Taxonomy and contribution to avoided emissions; 3\. experiments and investments in carbon capture; 4\. Group Transition Plan definition process. The Strategic Plan 2024-35 is resilient to transitional climate change, as it is built on the pillars of energy transition and circular economy. The potential expected financial effects of physical and transition climate risks were also considered in the impairment test. In fact, the cash flows underlying the business plan used for the impairment test natively reflect the assumptions of the energy scenario and climate change variables deemed most probable. In order to provide information on the sensitivity analysis on these variables, this year the Group, using an external expert, will include a multi-scenario analysis using the Montecarlo methodology considering the volatility estimated through econometric models. The results of this analysis are described in the Impairment Test section of the Notes. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 211 over the decommissioned fleet in terms of ergonometric characteristics, environmental impact, image and productivity. Indeed, the electrification of the vehicle fleet has led to a reduction in the average specific emissions (kg/ year) of the service vehicle fleet, from 1,816 kg/ year in 2023 to 1,600 kg/year in 2024. Increase in the production of energy from renewable sources The Group’s Strategic Plan to 2035 plans to increase the share of energy production from renewable sources. Thanks to this action, 2.5 million tons of CO 2 were avoided in 2024. In particular, taxonomy-aligned operating and capital expenditures were made during the year in relation to activities 4.1, 4.3 and 4.5, details of which are given in the table below. In 2024, A2A launched Noi2, the innovative light offer dedicated to domestic consumers. With the Noi2 offer, A2A proposes a real partnership with customers for 10 years to support together the growth of production from renewable sources, contributing to the country’s energy transition and autonomy. Thanks to Noi2, those who cannot place solar panels on their roofs or in their gardens will have V.I.P. (Virtual Innovative Panel), the innovative virtual panel to produce the energy you need, every day, for your home. Therefore, with V.I.P., customers will get a daily mix of energy from A2A wind and photovoltaic plants built in Italy. Electricity/heat distribution In 2024, there was a strong boost to investments in electricity distribution and expansion of the distribution perimeter thanks to the completion of the acquisition of Enel electricity distribution assets in the provinces of Milan and Brescia. In particular, taxonomy-aligned operating and capital expenditures were made during the year in relation to activities 4.9, 4.15 and 4.16, details of which are given in the table below. activities and investments made by A2A Group companies to achieve the objectives underlying the Group’s strategy. Finally, the procedure on the greenhouse gas emission inventory, a necessary tool to ensure the complete mapping and evaluation of all emission sources, is being finalized. It should be noted that the Group currently has no policies dedicated to the issue of climate change adaptation. ESRS E1-3 Actions and resources in relation to climate change policies 5 [28, 29a, 29b, AR19d] The actions of the A2A Group that contribute to the mitigation and adaptation to climate change are mainly related to the increase in electricity production from renewable sources and the distribution of electricity and heat, as defined by the European Taxonomy. Below are some initiatives linked to these actions. Fleet electrification In line with the Strategic Plan 2024-2035, the Zero Emission corporate project was launched. Specifically, this is a series of initiatives dedicated to the people of the A2A Group to emphasize its concrete and strategic commitment to sustainability and reducing its environmental footprint. Future goals and actions include the electrification of 70% of the company fleet by 2026, aiming for 93% by 2030, and the installation of charging stations for private electric and plug-in hybrid vehicles to facilitate sustainable mobility within the Group. In addition, the renewal of the Waste BU fleet of vehicles represents continuous improvement 5\. Please note that the disclosures relating to the disclosure requirement ESRS E1-3 paragraphs 29a. and 29b. are not available and will be reported starting in 2025, when the Transition Plan will be available and implemented and will ensure the identification of the decarbonization levers and the calculation of the achieved and expected GHG emission reductions under each action. It is also specified that, for actions reported under the ESRS E1-3 disclosure requirement, the calculation of GHG emission reduction is not applicable in all circumstances. 212 A2A Report on Operations 2024 Sustainability Statement [29c]* Table 47 Action Plan u.m. OpEx 2024* CapEx 2024* Future OpEx* Future CapEx* Link to KPI required by Commission Delegated Regulation (EU) 2021/2178 (29cii) Link to CapEx plan required by Commission Delegated Regulation (EU) 2021/2178 (29ciii) Increased electricity production from renewable sources (wind, hydroelectric, solar) € 19,004,548 148,862,357 194,872,466 4,633,856,354 Reconciliation with Opex and Capex’ 24 Aligned in Taxonomy to the following Activities: 4.1, 4.3, 4.5\. With regard to future Capex and Opex, in line with the Business Plan, we considered the amount eligible for taxonomy according to the following Activities 4.1, 4.3, 4.5. n.a Electricity/heat distribution: € 15,646,560 297,958,518 285,366,342 4,102,617,377 Reconciliation with Opex and Capex’ 24 Aligned in Taxonomy to the following Activities: 4.9, 4.15, 4.16\. With regard to future Capex and Opex, in line with the Business Plan, we considered the amount eligible for taxonomy according to the following Activities 4.9, 4.15, 4.16. n.a Renewal of the car fleet with a strong push on the electrification of the fleet € 2,859,553 45,188,416 111,480,000 315,881,832 n.a n.a In the quantification of actions, the time horizon considered was the Plan period. To finance the aforementioned action plan, A2A plans to allocate both part of the cash flows generated (self-financing) and sustainable debt instruments, such as Green Bonds, including European Green Bonds, and green financing. Sustainable Finance is considered a key lever to support the realisation of the Group’s strategic plan, as described in detail in the ‘Sustainable Finance’ section. * [29c] These amounts are included under operating costs and investments in the Company’s Financial Statements. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 213 and ‘Statement of Commitment to Reduce Emissions along the Value Chain’. The targets were defined using the most up-to-date and internationally recognized methodologies, based on the processing of data collected by the relevant functions. Where applicable, as in the case of emissions KPIs, both national and European regulations and policies and the context in which impacts occur have been considered. It should also be noted that the targets in the tables below apply to all Group companies, but do not extend beyond the perimeter of direct operations, net of the Scope 3 emissions target: in this case, the perimeter is extended to the supply chain (Upstream energy carriers and supply chain) or customers (Products sold). Each target is calculated with respect to the period of the Plan, with targets set to 2035. In order to monitor the progress of the objectives, two intermediate milestones are planned at 2027 and 2030, in addition to the actual performance measured in the reporting year. Stakeholders do not participate directly in the process of defining the targets below, but are involved in the process of identifying material issues, which form the basis from which these targets are determined. [AR19d] In connection with adaptation actions, the Group installed panels at its biomass plant in Sant’Agata di Puglia to mitigate the effects of winds, whose increasing intensity and frequency, caused by the region’s variable climate, caused interference with turbine operation. Metrics and targets ESRS E1-4 Targets related to climate change mitigation and adaptation [32, 33] A2A interprets the ecological transition as a central pillar of its competitive strategy and on the issue of decarbonization, it is at the forefront with the construction of new renewable plants, entering into PPA (Power Purchase Agreements) for the purchase and sale of energy, and with investments in electricity grids as support for the electrification of consumption. In line with the 2024-2035 Strategic Plan, the Group has defined specific objectives within its Sustainability Plan that contribute to climate change mitigation, renewable energy deployment and energy efficiency. These objectives are in line with the guidelines and recommendations in the policies ‘Environment, Health, Safety and Quality Policy’ 214 A2A Report on Operations 2024 Sustainability Statement Table 48 Energy transition Action KPIs KPIs detail 2024 2027 2030 2035 Renewables Increase the proportion of energy produced from renewable sources Total installed RES capacity (GW) Generation BU Sum of installed capacities of the Generation BU: hydroelectric, photovoltaic, and wind power 2.6 2.9 3.8 5.6 Total installed RES capacity (GW) BUMER Sum of installed RES capacities of the Market Business Unit 0.02 0.04 0.07 0.11 Total net production (GWh) solar BUMER 14.4 38.4 49.7 76.9 Sustainable mobility Develop sustainable internal and external mobility solutions Charging service contracts Emoving (number) Number of contracts signed for the Group's Emoving charging services 43,394 91,309 236,439 973,608 Avoided emissions from A2A columns kWh delivered by A2A's electric charging stations, multiplied by the ISPRA factor of the circulating vehicle fleet in Italy 6,632 44,316 150,145 436,107 Number of electric charging points - cumulative 21-35 (thousands) 1.90 9.74 15.87 25.53 Average specific emissions (kg/year) of the service vehicle fleet (excluding special vehicles) calculated using WLTP criteria Calculated using the WLTP (Worldwide Harmonized Light-Duty Vehicles Test Procedure) criteria 1600 518 - - Number of low environmental impact collection and street sweeping vehicles (Euro 6 vehicles, methane gas, electric) 76% 89% 94% 98% Green energy and end- use energy efficiency Contribute to the reduction of emissions of end customers through the sale of green energy and the development of energy efficiency measures for public and private real estate assets Green energy sold to the market (TWh) 8.9 12 17 24 CO 2 -free gas sold to the segment (Mm 3 ) The calculation considers both biomethane and gas offset through carbon credits 132 132 167 201 Loyal customers with energy efficiency services (Customers with a service/ product in addition to the commodity) Customers with an additional service/product purchased beyond electricity and/or gas commodities 15% 30% 46% 85% Cumulative avoided emissions 21-35 - VAS products (HVAC, PV systems) (t) Sum of avoided emissions accumulated since 2021 thanks to the sale of VAS products, calculated as MWh delivered by new plants multiplied by the national EU ETS standard emission factor 9,534 37,78 3 118,341 434,134 Cumulative avoided emissions 21-35 - Energy efficiency b2b \- ESCo (t) Cumulative value of the Group’s avoided emissions, calculated based on Energy Efficiency Certificates as reported by GSE 170,318 322,169 488,827 588,320 Cumulative avoided emissions 21-30 - VAS products for condominiums and commercial buildings (t) Sum of avoided emissions accumulated since 2021 from the implementation of: consignment sale contracts, integrated building and plant renovations, thermal plant capex, and photovoltaic capex 6,781 11,148 19,094 34,911 Smart Grid Develop solutions to offer a better information access infrastructure (Smart Grid) and improve the grid resilience and to contribute to the growing electrification of consumptio Percentage of users with 2G electricity smart meter (Unareti) 88% 95% 98% 98% User interruptions in LV - SAIFI (#/year/POD) (Unareti) Average number of electricity supply interruptions per year per withdrawal point 1.88 1.52 1.38 1.33 Installed capacity of the electricity grid (GVA) 5 10 10 11 Number of primary substations installed 38 106 111 117 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 215 Table 49 Circular Economy Action KPIs KPIs detail 2024 2027 2030 2035 District heating Help reduce the environmental impact of the cities, paying close attention to air quality, implementing district heating and district cooling Thermal storage capacity for TLR (cubic metres) 31,015 32,715 34,215 34,215 CO 2 emissions avoided thanks to TLR (t/a) Difference between CO 2 emissions in the reference thermal scenario and CO 2 emissions from the A2A district heating system 312,505 348,303 385,323 399,953 Table 50 People Innovation Action KPIs KPIs detail 2024 2027 2030 2035 Transparency and Stakeholder Engagement Develop integrated reporting and an adequate information system for planning and control. Develop external stakeholder engagement activities, strengthening the relationship with the territory Group events CO 2 free (offset through credits) with economic value >30k CO 2 -free Group events (com- pensated through credits) with an economic value >30k. 90% 100% 100% 100% Table 51 Digital Action KPIs KPIs detail 2024 2027 2030 2035 Innovation and R&D Develop capital expenditures in research and development, increasing the number of partnerships with international research centres and universities. Develop new technologies, patents for technological innovation Initiatives with a positive impact on emissions Cumulative number of Digital & Innovation initiatives 14 16 18 20 Investment in digital and innovation initiatives with positive impact on emissions Totex of DII initiatives at scale with a positive impact on emissions 10.9 30 48 80 CCUS initiatives vs. total R&D initiatives Percentage of total R&D projects in the portfolio. 22% 31% 34% 32% [AR25] With regard to emission targets, the base year against which the targets for Scope 1 and Scope 2 emissions are calculated is 2017, while Scope 3 emissions are calculated with 2023 as the base year. For the definition of the base year, an analysis was carried out with respect to the fluctuations in emissions in the last period and, if necessary, related to exogenous phenomena or the Group’s own phenomena that caused significant variations in values. Following this analysis, 2017 was identified as the most representative year for direct emissions. 216 A2A Report on Operations 2024 Sustainability Statement [32, 34a, 34b, 34c, 34d, 34e, 34f] It should also be noted that the Scope 2 emissions included in the decarbonization target are calculated using the Market-Based approach. Table 52 Energy transition Action KPIs KPIs detail 2024 2027 2030 2035 Science- based objective Compatibility with the global warming limit Emissions 6 To develop actions aiming to reduce the environmental footprint, like direct and indirect emissions of greenhouse gases Reduction of emission factor Scope 1 + Scope 2 (gCO 2 eq/ kWh) Total stationary emissions of the Group / Total electricity production 39% 42% 47% 65% Si WB2C Reduction of Scope 2 emissions (ktCO 2 eq) \- energy purchase Scope 2 market- based emissions 20.7 - - - Si 1.5 Reduction of Scope 3 emissions \- Upstream energy carriers (Base year 2023) Upstream emissions consider the following energy carriers: coal, natural gas, and petroleum products - - 50% 65% Si WB2C Reduction of Scope 3 emissions \- Products sold (Base year 2023) The calculation includes emissions from sold fossil gas, obtained by multiplying the sold fossil gas by the associated emission factor - - 12% 26% No 2C Total methane emissions avoided from distribution networks - cumulative values with respect to 2015 (tCO 2 eq) \- Unareti perimeter Kg of methane whose leakage was prevented, multiplied by the methane emission factor 108,302 368,035 453,257 466,066 No 6. Please note that the disclosure relating to disclosure requirement ESRS E1-4 paragraph 34f is not available and will be reported from 2025, when the Transition Plan will be available and implemented and will ensure that decarbonization levers are identified. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 217 On 2 March 2020, the SBTi declared that A2A direct and indirect CO 2 emission reduction targets (Scope 1-2) are aligned with the reductions required to keep global warming below 2°C. The Group estimates to reach a value close to 226 gCO 2 /kWh within the decade - equivalent to a 47% reduction in the CO 2 emission factor compared to the 2017 value (425 gCO 2 /kWh). Table 53 2021 2022 2023 2024 2025 Objective 2030 Objective 2030 SBTi Objective Emission factor gCO 2 /kWh 332 385 318 258 285 226 230 It should be noted that the baseline certified by SBTi, and the related annual trajectory monitored by the Group, excludes the Smart Infrastructures BU, which accounts for less than 5% of the Group’s emissions. The other emission data and targets reported in this document, however, are calculated for the entire Group. [AR 30c] The achievement of the targets is supported by the definition and subsequent implementation of several decarbonization levers, including, the development of renewable plants and the gradual decrease of fossil plant production. For a comprehensive discussion, please refer to the disclosure in this chapter. It should be noted that the Group did not set any targets related to climate change adaptation in the reporting period. ESRS E1-5 Energy consumption and mix Table 54 [37, 38, AR 34] Energy consumption and mix u.m. 2024 2023 Fuel consumption from coal and coal products [38a] MWh - 885,713 Fuel consumption from crude oil and petroleum products [38b] MWh 1,927,317 4,140,322 Fuel consumption from natural gas [38c] MWh 13,699,743 14,773,726 Fuel consumption from other fossil sources [38d] MWh 4,038,174 3,628,495 Consumption of electricity, heat, steam or cooling from fossil sources, purchased or acquired [38e] MWh 39,715 12,739 Total energy consumption from fossil sources [37a] MWh 19,704,949 23,440,995 Percentage of fossil sources in total energy consumption [AR34] % 78.49 81.68 Total energy consumption from nuclear sources [37b] MWh 1,326.10 ND Percentage of energy consumption from nuclear sources in total energy consumption [AR34]* % 4 ND Fuel consumption from renewable sourcesi [37ci] (1) MWh 4,871,414 4,713,153 Consumption of electricity, heat, steam and cooling from renewable sources, purchased or acquired [37cii] MWh 520,848 537,444 Consumption of self-generated non-fuel renewable energy [37ciii] MWh 6,514 5,532 Total energy consumption from renewable sources [37c] MWh 5,398,776 5,256,129 Percentage of renewable sources in total energy consumption [AR34] % 21.51 18.32 Total energy consumption related to own operations [37] (2) MWh 25,103,725 28,697,124 * For the percentage relating to the consumption of energy from nuclear sources, the percentage deriving from the tabular data relating to the energy mix of the national electricity grid has been considered and refers exclusively to energy imports from abroad where this technology is used to produce electricity. MWh were calculated by multiplying this percentage with the electricity purchased by the Group not covered by Guarantee of Origin certificates. 218 A2A Report on Operations 2024 Sustainability Statement Table 55 [39] Non-renewable and renewable energy production u.m. 2024 2023 Non-renewable energy production MWh 7,542,713 10,375,432 Renewable energy production MWh 6,899,902 5,440,785 Renewable energy production includes: Hydroelectric, wind, solar, B2B solar, biomass, renewable production from WTE, landfill gas and biogas from digestion plants. Non-renewable energy production includes: coal, CCGT, fuel oil and non-renewable production from WTE. It is specified that all feed-in is taken into account for the calculation of production. [42] According to Commission Delegated Regulation (EU) 2022/1288, the A2A Group is one of the companies belonging to the high climate impact sectors. The energy intensity is therefore calculated taking into account the A2A Group’s overall energy consumption and revenues. Listed below are the high-impact sectors within the scope of activities managed by the group: • electricity, gas, steam and air conditioning supply; • water supply; sewerage, waste treatment and sanitation activities. Table 56 [40,41] Energy intensity of activities in high climate impact sectors u.m. 2024 Total energy consumption from activities in high climate impact sectors [41] MWh 25,103,725 Net revenues from activities in high climate impact sectors used to calculate energy intensity (E1-5) millions of euro 12,699 Energy intensity associated with activities in high climate impact sectors [40] MWh/millions of euro 1,977 [43] For the calculation of energy intensity, the total consolidated revenues net of Acerra, Caivano and Scandale were considered Table 57 [AR38b] Reconciliation to Financial Statements u.m. 2024 Net revenues from activities in high climate impact sectors for the calculation of energy intensity (E1-5) millions of euro 12,699 Net revenue (other) millions of euro 157 Total net revenue (Financial Statements) for E1-5 millions of euro 12,857 ESRS E1-6 Gross GHG emissions of Scope 1, 2, 3 and total GHG emissions [44,52] The reporting of GHG emissions is conducted in accordance with the guidelines of the GHG Protocol ‘A Corporate Accounting and Reporting Standard’, prepared by the World Business Council for Sustainable Development (WBCSD) and not according to EN ISO 14064-1:2018. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 219 [50] The A2A Group uses the financial control approach to define the organizational boundaries within which it reports greenhouse gas emissions. Under this approach, the Group consolidates 100% of the greenhouse gas emissions over which it has financial control. GHG emissions related to assets/operations in which the company owns interests but does not have financial control fall into Scope 3 (indirect emissions).It is also specified that the Group does not exercise operational control over associates, joint ventures, unconsolidated subsidiaries (investment entities) and contractual arrangements that are jointly controlled arrangements not structured through an entity. [47] There were no material changes in the Group’s operations or value chain during the reporting period. [44,52] The following table presents a summary view of Scope 1, 2 and 3 GHG emissions for the A2A Group: Table 58 GHG Emissions u.m. 2024 2023 Gross Scope 1 GHG emissions [44a] tCO 2 eq 4,620,312 5,600,628 Gross location-based Scope 2 GHG emissions [44b] tCO 2 eq 249,731 206,309 Gross market-based Scope 2 GHG emissions [44b] tCO 2 eq 108,261 92,152 Gross Scope 3 GHG emissions [44c] tCO 2 eq 13,698,987 9,350,588 Total location-based GHG emissions [44d. 52a] tCO 2 eq 18,569,030 15,157,525 Total market-based GHG emissions [44.d 52b] tCO 2 eq 18,427,560 15,043,368 [AR39b] The calculation methodology used by the Group to estimate total GHG emissions is mainly based on the multiplication of activity data related to emission sources by their appropriately selected emission factors. GHG emissions = Activity data * EF where: • GHG emissions: this is the quantification of GHG emissions emitted by the activity, expressed in terms of tonnes of CO 2 equivalent (tCO 2 eq); • Activity data: this is the quantity that describes the activity related to GHG emissions (e.g. expressed in terms of energy, mass, volume); • EF: is the factor that correlates activity data with emissions. Factors from legislation, literature or databases are used. In particular: • installations subject to regulated emissions trading systems (EU ETS) calculate direct emissions in accordance with sector regulations; • WTE plants adopt a monitoring system of the CO 2 emitted at the stack, which makes it possible to accurately identify emissions and discriminate between fossil and biogenic CO 2 ; • the calculation of emissions from wastewater treatment plants is carried out according to the IPCC method updated in 2019. This methodology is based on the measurement of organic matter (BOD or COD) input, transferred to sludge, abated and discharged, applying appropriate emission factors results in the emission of CO 2 equivalent, which is the sum of CH 4 and N 2 O fluxes; • the calculation of methane emissions from the networks provides for a punctual quantification of the gas emitted into the atmosphere from each localised leakage; the method associates for each 220 A2A Report on Operations 2024 Sustainability Statement type of leakage (corrosion, leakage, etc.) a leakage section, quantifies the leakage rate based on the operating conditions of the gas and the pipelines, and defines a duration depending on the origin of the leakage (methodology updated in 2024). For the calculation of Scope 1 GHG emissions, the main sources of emission factors are: UNFCCC Inventory, IPCC WGI Report. Regarding indirect Scope 2 emissions: • the “Location-based” approach involves the use of a national average emission factor related to the specific national energy mix for power generation (source: ISPRA); • the market-based approach refers to contractual agreements entered into with the electricity supplier. In the absence of specific contractual agreements between the Group companies and the electricity supplier (e.g. purchase of Guarantee of Origin certificates), for this approach, reference is made to the emission factor relating to the national “residual mix” (source: AIB European Residual Mix). In addition to emissions from electricity consumption, emissions associated with electricity distribution losses from the Group’s networks are included in Scope 2. From the physical data of grid losses, emissions are calculated using the emission factor of the electricity consumption of the national grid (source: ISPRA). Indirect emissions falling under Scope 3 are calculated using emission factors from the following sources: ISPRA, DEFRA, Ecoinvent. Emissions are calculated: • by site/activity contact persons; • by an application used by the companies of the A2A Group to collect, consult and manage aspects relating to the Environment, Health and Safety at Work through calculation formulas implemented on the basis of the primary activity data entered in the application itself; • off-line using primary data received from the relevant Organizational Structures. Table 59 [48] Scope 1 Emissions Gross Scope 1 GHG emissions u.m. 2024 2023 Gross GHG emissions from emission trading schemes (ETS) tCO 2 eq 3,008,751 - Gross Scope 1 GHG emissions [48a] tCO 2 eq 4,620,312 5,600,628 Percentage of gross GHG emissions in Scope 1 from emissions trading schemes [48b] % 65.12 - The Scope 1 emissions, in addition to emissions linked to the combustion processes of fossil sources and the non-renewable part of waste, also include: • methane from biogas escaped capture in landfills; • natural gas leaked from networks (including also leakages from plants); • emissions related to the vehicle fleet; • emissions from accidental leaks of fluorinated greenhouse gases from air conditioning equipment and electrical switches; • direct emissions of CH 4 and N 2 O from water cycle treatment plant tanks. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 221 With reference to the A2A Group, direct greenhouse gas emissions (Scope 1) mainly derive from combustion processes. These emissions decreased compared to the previous year in line with the reduction of energy production by thermoelectric power plants; specifically, the Generation Business Unit decreased these emissions by 30%. In particular, it should be noted that: • the plants related to the old coal-fired thermal power plant in Monfalcone were shut down and taken out of service in 2024. • the plants related to the S. Filippo del Mela thermoelectric plant produced less due to a lower demand for production from the national electricity grid operator (Terna). The share of Scope 1 GHG emissions covered by regulated emissions trading systems (EU ETS) is 65.12%. Please note that the accounting period for Scope 1 gross GHG emissions and ETS gross GHG emissions is the same. Table 60 [AR43c] Biogenic emissions not included in Scope 1 u.m. 2024 2023 Biogenic CO 2 emissions from combustion or biodegradation of biomass separately from Scope 1 GHG emissions tCO 2 eq 1,399,925 1,380,867 Biogenic emissions come from biomass combustion plants, biogas combustion plants and the biogenic share of waste-to-energy. The value recorded in 2024 is in line with that of 2023 as the plants did not undergo any significant changes during the financial year. Table 61 [49] Gross Scope 2 GHG emissions u.m. 2024 2023 Gross location-based Scope 2 GHG emissions [49a] tCO 2 eq 162,128 136,887 Gross market-based Scope 2 GHG emissions [49b] tCO 2 eq 20,658 22,730 Gross GHG emissions in Scope 2 related to distribution losses tCO 2 eq 8 7,6 0 3 69,422 Scope 2 emissions include indirect emissions from electricity purchased from third parties for their own consumption and emissions associated with electricity distribution losses from the Group’s networks. According to the GHG Protocol, Scope 2 emissions related to electricity consumption are calculated according to two different approaches: “Location-based” and “Market-based”. The location-based approach considers the average emission intensity of the grid on which energy consumption takes place, while the market-based approach reflects the emissions of the electricity companies choose to buy. Compared to 2023, electricity consumption is almost unchanged (+3%). The change in Scope 2 emissions calculated according to the location-based approach are up mainly due to the fact that the ‘National Grid Electricity Consumption’ emission factor used for the calculation has increased compared to last year. The reduction in Scope 2 emissions calculated using the market-based approach, on the other hand, is due to a higher share of energy from renewable sources purchased by the Group for its own consumption. As far as electrical distribution losses are concerned, there was an increase due partly to the increase in distributed energy and partly, also in this case, to the increase in the ‘National Grid Electricity Consumption’ emission factor used for the calculation. 222 A2A Report on Operations 2024 Sustainability Statement [AR45d] The A2A Group uses 94% of its electricity from renewable sources. The contractual instruments it uses to certify the supply of green energy are the coupled Guarantee of Origin Certificates (GOC). The Guarantee of Origin (GO) is an electronic certification attesting to the renewable origin of the sources used by IGO qualified plants. For each MWh of renewable electricity fed into the grid by IGO qualified plants, the GSE issues a GO title, in accordance with Directive 2009/28/EC. Of market-based emissions, 100% refer to electricity purchased in conjunction with these instruments; no stand-alone contractual instruments were used. Table 62 GHG emissions of Scope 2 related to purchased electricity in combination with instruments u.m. 2024 2023 Scope 2 market-based GHG emissions related to purchased electricity in combination with instruments tCO 2 eq 20,658 22,730 Percentage of Scope 2 market-based GHG emissions related to electricity purchased with instruments % 100 100 Table 63 [AR45e] Biogenic emissions not included in Scope 2 u.m. 2024 2023 Biogenic CO 2 emissions from combustion or biodegradation of biomass separately from Scope 2 GHG emissions [AR45e] tCO 2 eq - - Table 64 7 [51, AR46i] Scope 3 GHG emissions u.m. 2024 2023 Total Category 1 Goods and services purchased tCO 2 eq 1,284,204 1,103,023 Category 1: Gas purchased for sale tCO 2 eq 1,169,729 1,020,571 Category 1: Chemical products and other materials tCO 2 eq 114,475 82,452 Category 3 Fuel and energy-related activities (not included in Scope 1 or 2) tCO 2 eq 4,153,510 1,128,242 Category 5 Waste generated by the Group and managed in third-party facilities tCO 2 eq 269,034 216,711 Category 6 Business Trips tCO 2 eq 1,121 850 Category 7 Home-work commute of employees tCO 2 eq 15,115 - Category 8 Leased assets (upstream) tCO 2 eq 445,899 431,103 Category 11 End use of products sold tCO 2 eq 7,169,893 6,227,214 Category 15 Investments tCO 2 eq 360,212 243,446 Gross Scope 3 GHG emissions [51] tCO 2 eq 13,698,987 9,350,589 7. Although applicable for the A2A Group, category 2 is equal to 0 tCO 2 eq not because the emissions are zero but because it has not been reported for 2024.. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 223 With a view to improving the analysis of its impacts on the climate, the A2A Group has begun an in-depth analysis of the various types of indirect emissions associated with its activities, with reference to the GHG Protocol Scope 3 categories. Indirect emissions along the supply chain (Scope 3) include both upstream activities (e.g. emissions related to purchased products and fuels, emissions associated with purchased services) and downstream activities (e.g. emissions related to the use of products sold and the management of waste produced in non-Group facilities). The different Scope 3 categories and applicability criteria for the A2A Group are outlined below: • Cat. 1: Purchased goods and services - For 2024, this category includes the purchase of chemicals and other materials and gas purchased for sale. The Group is carrying out a project activity to report on the purchase of services and goods other than chemicals and other materials. Based on first estimates, these emissions related to the purchase of services and goods other than chemicals and other materials account for about 5% of Category 1, making them insignificant. The calculation methodology considers as activity data the accounted/expensed, m3 of gas purchased for resale and tons of chemicals. The sources of the emission factors used for the three subcategories were SIDA, DEFRA and ECOINVENT, respectively. • Cat. 2: Capital goods - Emissions generated by the production of durable goods (such as buildings or machinery) purchased in the reporting year. Although applicable for the A2A Group, this category has not been reported for 2024. The Group is carrying out a project activity that aims to report on this category as well. The calculation methodology considers the accounted/expensed as activity data. The source of the emission factors used was SIDA. • Cat. 3: Fuel and energy-related activities - For the A2A Group, category 3 includes emissions associated with: \- Upstream of fuels; \- Upstream of biomass used as fuel for thermal energy production; \- Upstream of electricity purchased for its own consumption; \- Network losses related to electricity purchased and distributed on third-party networks; \- Losses from energy sold on third-party networks; \- Upstream of imported heat for district heating; \- Non-green electricity purchased for resale. The calculation methodology considers fossil fuels, electricity purchased for own consumption, grid losses of electricity sold on third-party grids, non-green electricity purchased and sold to third parties, grid losses of electricity purchased for own consumption and distributed on third-party grids, and End of Waste biomass and virgin biomass used as fuels as activity data. The sources of the emission factors used were DEFRA, ECOINVENT and ISPRA • Cat. 4: Upstream transportation and distribution \- Emissions associated with the transportation of goods and services purchased by the company, carried out using non-owned vehicles. Although applicable for the A2A Group, this category has not been reported for 2024. The Group is carrying out a project activity that aims to report on this category. The calculation methodology considers the accounted/expensed as activity data. • Cat. 5: Waste generated in operations - Emissions generated by the treatment at third-party plants of waste produced by the Group. The calculation methodology considers the tonnes of waste produced as activity data. The sources of the emission factors used were ECOINVENT and DEFRA. • Cat. 6: Business travel - Emissions associated with business trips made by staff, i.e. the impact generated by the means of transport used (excluding company vehicles) to travel to a customer, supplier or event. Overnight stays are also included. The calculation methodology considers the kilometres travelled, the number of overnight stays and the CO2 calculated by the supplier as activity data. The source of the emission factors used was DEFRA. • Cat. 7: Employee commuting - Emissions from employee home-work trips. The calculation methodology considers the distance travelled on the home-work journey and the prevailing mode of travel as activity data. The sources of the emission factors used were ISPRA and GHG Protocol. • Cat. 8: Upstream leased assets - Emissions related to assets under management 224 A2A Report on Operations 2024 Sustainability Statement investment are re-proportioned according to the share of capital invested. The calculation methodology takes as activity data the emission data declared by the companies in which there are investments, multiplied by the shareholding. The calculation includes the indirect emissions of the Acinque Group implemented for the relevant categories. The increase in indirect Scope 3 emissions is mainly due to the fact that emissions associated with non-green electricity sold to third parties were also reported in 2024. [AR46g] No primary data obtained from suppliers or other partners along the value chain were used for the calculation of Scope 3 emissions. [AR46h] It should be noted that, in the calculation of Scope 3, indirect emissions associated with the companies included in the A2A Group’s scope of consolidation are accounted for, as well as “joint ventures” for their share only (direct emissions of ERGOSUD S.p.A. falling under Cat. 15) and assets under management for which the A2A Group has mere operational control (falling under Cat. 8). For the calculation of indirect emissions falling under Scope 3, the following are used: • Primary data: activity data (e.g. fuel consumption, electricity consumption, amount of gas sold); • Secondary data: emission factors obtained from regulations, literature or databases. whose consumption has not already been reported in Scope 1 or Scope 2. The calculation methodology considers fossil fuel consumption, electricity consumption and CO2 calculated by the leasing company (Acerra) as activity data. The sources of the emission factors used were ISPRA and the Ministry of the Environment. • Cat. 9: Downstream transportation and distribution - Not applicable. The A2A Group does not transport goods sold by the company with third party vehicles (not owned by the company). • Cat. 10: Processing of sold products - Not applicable. The A2A Group does not produce intermediate products sold by third parties. • Cat. 11: Use of sold products - Emissions from the use of sold products. For the Group, they refer to the use of gas sold. The calculation methodology considers m3 of gas sold as activity data. The source of the emission factors used was DEFRA. • Cat. 12: End-of-life treatment of sold products - Not applicable. The A2A Group is not involved in the sale of products. • Cat. 13: Downstream leased assets - Not applicable. The A2A Group does not own any assets sold to third parties under leases. • Cat. 14: Franchises - Not applicable. The A2A Group does not engage in Franchises. • Cat. 15: Investments - Emissions generated by the companies in its investment portfolio. The emissions generated by the assets of Table 65 [AR46j] Biogenic emissions not included in Scope 3 u.m. 2024 2023 Biogenic CO 2 emissions from combustion or biodegradation of biomass occurring in the value chain separately from gross Scope 3 GHG emissions [AR46j] tCO 2 eq - - Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 225 Table 66 [53] GHG intensity per net revenue u.m. 2024 Total location-based GHG emissions tCO 2 eq 18,569,030 Total market-based GHG emissions tCO 2 eq 18,427,560 Net revenue used to calculate GHG intensity millions of euro 12,857 Intensity of location-based GHG emissions [53] tCO 2 eq/ millions of euro 1,444 Intensity of market-based GHG emissions [53] tCO 2 eq/ millions of euro 1,433 [55] For the calculation of GHG intensity, Scope 3 is also taken into account, thus the entirety of consolidated revenues was considered, as specified within the ESRS 2 BP-1 disclosure requirement. Table 67 [AR55] Reconciliation with Financial Statements u.m. 2024 Net revenue used to calculate GHG intensity [E1-6] millions of euro 12,857 Net revenue (other) millions of euro - Total net revenue (in financial statements) millions of euro 12,857 [AR41] The following table shows the breakdown of GHG emissions of Scope 1, 2 and 3 for the Acinque Group and by Business Unit of the A2A Group: Table 68 GHG emission areas u.m. Gross Scope 1 GHG emissions Gross location- based Scope 2 GHG emissions Gross market- based Scope 2 GHG emissions Gross Scope 3 GHG emissions Total location- based GHG emissions Total market- based GHG emissions Waste BU tCO 2 eq 1,287,728 30,080 3,082 794,955 2,112,763 2,085,765 Smart Infrastructures BU tCO 2 eq 5 57,0 70 137,255 91,770 216,800 911,125 865,640 Generation and Trading BU tCO 2 eq 2,645,866 61,930 6,346 851,279 3,559,075 3,503,491 Market BU tCO 2 eq 474 18 2 10,880,109 10,880,601 10,880,585 Corporate tCO 2 eq 1,682 1,614 165 3,810 7,106 5,657 Acinque Group tCO 2 eq 1 2 7, 4 9 2 18,834 6,896 952,034 1,098,360 1,086,422 Total tCO 2 eq 4,620,312 249,731 108,261 13,698,987 18,569,030 18,427,560 It should be noted that for the Smart Infrastructures Business Unit, indirect Scope 2 emissions include not only emissions associated with electricity purchased for its own consumption, but also emissions related to electricity distribution losses. 226 A2A Report on Operations 2024 Sustainability Statement [AR52] The table below reports GHG emissions disaggregated by Scope 1, 2 and 3, broken down along the value chain: Table 69 GHG Emissions u.m. Upstream Own operations Transport Downstream Total Gross Scope 1 GHG emissions [44a] tCO 2 eq - 4,620,312 - - 4,620,312 Gross location-based Scope 2 GHG emissions [44b] tCO 2 eq - 249,731 - - 249,731 Gross market-based Scope 2 GHG emissions [44b] tCO 2 eq - 108,261 - - 108,261 Gross Scope 3 GHG emissions [44c] tCO 2 eq 6,168,882 - - 7,530,105 13,698,987 Total location-based GHG emissions [52a] tCO 2 eq 6,168,882 4,869,866 - 7,530,105 18,569,030 Total market-based GHG emissions [52b] tCO 2 eq 6,168,882 4,724,509 - 7,530,105 18,427,560 Specifically: • upstream: includes the following indirect Scope 3 emissions: Category 1 (Purchased goods and services), Category 3 (Fuels and energy-related activities - not included in Scope 1 or 2), Category 5 (Waste produced by the Group and managed in third-party facilities), Category 6 (Business trips), Category 7 (Employee commuting), Category 8 (Leased assets (upstream)); • own operations: includes direct Scope 1 emissions and indirect Scope 2 emissions (market-based electricity consumption emissions plus grid electricity losses); • downstream: includes the following indirect Scope 3 emissions: Category 11 (End use of products sold) and Category 15 (Investments). ESRS E1-7 GHG removals and GHG mitigation projects financed with carbon credits [56 a, AR62, 58, 58a, AR58f, AR60, 58b, AR58e, 59a, 59b] The A2A Group does not carry out GHG absorption and storage projects as part of its operations or in the value chain, except in non- material quantities and mainly related to specific initiatives of an experimental nature. [56b, AR61] Furthermore, the Group does not purchase carbon credits for offsetting its GHG emissions outside the value chain, except in insignificant quantities: in fact, the Group only uses carbon credits for offsetting corporate events, which, compared to the overall carbon footprint, results in non-material emission numbers. [60] The analysis of how the Group intends to neutralize residual GHG emissions will be published in the context of the Group Transition Plan by the end of 2025. ESRS E1-8 Internal carbon pricing [63c, AR65b, AR65c] The A2A Group uses an unambiguous method for setting the internal carbon price that is aligned to the market quotations of the Emission Trading Scheme - EUA, expressed in €/Ton CO 2 using the most recent market settlements as a reference and through the acquisition of data from the markets and stock exchanges. Daily data curves are received and aggregated by the systems in the company’s application map, with daily updates allowing operators to identify the carbon price to be applied that day. That being said, it should be noted that in the year 2024, the quotas issued by the group correspond to approximately 3 mln tonnes. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 227 Table 70 [63a, 63c] Types of internal carbon prices [63a] u.m. Price applied (63c) The internal carbon price applied by the Group is a shadow price that is used in investment decisions and risk management activities. The carbon price presented refers to the annual average of 2024. €/tCO 2 eq 67 [63b] Decision-making processes, where necessary and relevant, take into account these reference values and involve the Group’s business processes and activities exposed to this variable. The methodology is therefore homogeneous. EUA prices are used for operational activities related to covering the needs of the industrial portfolio. These are used for risk management and investment decisions. Table 71 [63d] 2024 GHG emissions covered by internal carbon pricing schemes u.m. Scope 1 Scope 2 (market- based) Scope 2 (location- based) Scope 3 Volume of GHG emissions covered by carbon pricing schemes tCO 2 eq 3,008,751 - - - GHG emissions (for each respective Scope) tCO 2 eq 4,620,312 20,658 162,128 13,698,987 Percentage of GHG emissions under domestic carbon pricing schemes [63d] % 65.12 - - - The volume of GHG emissions covered by carbon pricing schemes coincides with the emissions subject to the Emission Trading Scheme. 228 A2A Report on Operations 2024 Sustainability Statement Table 72 Impacts: ESRS E2 Sustainability topic Impact Type Stage Time horizon Short Medium Long Pollution Pollution of air Generation of non-GHG pollutant emissions with consequent effects on air quality levels Negative Actual OO, P, R, I Pollution Pollution of air Worsening quality of life in cities due to excessive noise Pollution Negative Actual OO, R Table 73 Risk: ESRS E2 Sustainability topic Risk Stage Time horizon Short Medium Long Pollution Pollution of air A2A Ambiente Risk - fire risk Potential impacts of a reputational and economic-financial nature for A2A Ambiente and the Group connected to the possible occurrence of fires affecting recovery facilities, WTE plants and landfills, with repercussions for personnel and internal structures and the surrounding environment. OO, R Pollution Pollution of water Water cycle – Purification Potential impacts on the Group’s overall image, in relations with local authorities and communities as a result of any complaints of insufficiently purified water discharges into the receiving water bodies, in relation to the reference regulatory framework and the distribution of responsibilities between the Company and the competent territorial bodies. OO Pollution Pollution of water Abnormal discharges into public sewers Potential impacts on the Group’s overall image, in its relations with local authorities and communities as a result of possible malfunctions in the purification process due to abnormal discharges of pollutants into the sewers that carry waste to the purification systems. OO Pollution Pollution of water Directive on Urban Waste Water Treatment Potential impacts on the Group’s overall image, in relations with local authorities and communities as well as economic and financial impacts as a result of possible critical issues in the application of the new Directive on Urban Waste Water, the text of which is currently being finalised at a European level (COM(2022)541) and will have to be implemented in Italy. OO Pollution Pollution of air Recycling area management Potential reputational impacts for APRICA as a result of possible critical issues arising in management and/or in the implementation of activities for regulatory compliance of the ecological waste disposal areas of the Municipalities entrusted to the Company and/or in the management of relations with citizens. OO; transversal along the VC Pollution Pollution of air Pollution of water Environmental compliance Potential impacts on the Group’s overall image and economic- financial situation as a result of possible non-compliance - real or presumed - with regulations and/or authorisations or possible environmental damage caused by accidents and/or the incorrect management of the Group’s activities. OO 5.2.2 ESRS E2 Pollution Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 229 Impact, risk and opportunity management E2-1 Policies related to Pollution [14, 15a, 15c] Currently, the Group does not have a specific policy on Pollution; however, Pollution prevention is mentioned in the Quality, Environment and Safety Policies of some companies of the Group and managed in operations in compliance with current regulations and authorisations, which prescribe limits on concentrations and monitoring methods for the main substances emitted in fumes and waste water, as well as specific procedures within the sites where the Group operates. Atmospheric emissions, which mainly originate from thermoelectric power plants and waste and biomass utilisation plants, are contained at the lowest possible levels thanks to combustion technologies and Pollution reduction systems; macro-pollutants, in particular nitrogen oxides, sulphur oxides, dust and hydrochloric acid, are monitored by means of automatic continuous systems, while micro-pollutants are detected through sampling and analysis conducted according to prescribed frequencies. Fugitive emissions (e.g. of natural gas from pipelines or refrigerant gases) are mitigated by maintenance programmes and leak detection equipment. All industrial waste water is purified before being discharged into water bodies in order to comply with the maximum permitted concentrations of pollutants. The Group’s activities do not generate ground emissions. Emergency situations that may result in the release of pollutants, both on soil and in other environmental areas, are identified and included in site-specific emergency plans. The A2A Group conducts an assessment of environmental risks related to emissions into water and air, according to a methodology, which provides for the adoption of specific actions to reduce the risks assessed as medium and high. A system for reporting and analysing any environmental incidents is also implemented, with the aim of analysing their causes, verifying the correct handling of the event and identifying improvement actions to ensure that the event does not recur. A project aimed at revising current policies is also underway, including aspects related to Pollution, with a conclusion expected by 2025. E2-2 Actions and resources related to Pollution [19] The various companies in the Group that manage the plants included in the scope of application of Regulation 166/2006 have formally established operating procedures aimed at controlling emissions. In particular, with regard to atmospheric emissions, these procedures define aspects such as the management of exceeded emission limits, checks on the continuous emission monitoring system, the management of malfunctions of the continuous monitoring system, the execution of discontinuous measurements, the maintenance of equipment at emission points and the responsibilities in the various processes. With regard to water discharges, the existing procedures provide, among other aspects, guidelines for water sampling and analysis. The A2A Group guarantees compliance with emission limits, both in the atmosphere and in the water, thanks to the use of high-performance technologies and pollutant reduction systems, with the aim not only of complying with authorisation requirements, but also of reducing emissions as far as possible to values well below authorised limits. All waste-to-energy plants are equipped with innovative emission treatment systems that lower the content of pollutants by various degrees from the combustion chamber to the point of emission into the chimney. The fumes are purified using specific technologies depending on the substances to be treated: • deNOx systems that act on the concentration of nitrogen oxides, transforming them into natural air components such as nitrogen and water; • bag filter systems that retain dust and particulate matter; • fume scrubbing systems or systems for the dry 230 A2A Report on Operations 2024 Sustainability Statement injection of reagents for the transformation and chemical “capture” of other compounds. At combined cycle thermoelectric plants, NOx emissions are minimised thanks to the use of “primary” combustion techniques, i.e. DLN (Dry Low NOx) burners with low nitrogen oxide emissions. At the San Filippo del Mela power plant, which is powered by fuel oil, the following systems are in operation: • a system for pre-cleaning the fumes and a system for adding limestone diluted with water that reacts with the sulphur dioxide (SO 2 ) contained in the fumes, with the formation of gypsum (CaSO 4 ) that is filtered, centrifuged, placed in a warehouse and subsequently disposed of at recycling facilities; • a system for adding ammonia to the boiler outlet and a catalyst for reducing nitrogen oxide emissions (DeNOx). The “Boos” type combustion method also contributes to the containment of emissions. • electrostatic precipitators (ESP), consisting of chambers placed on the fume ducts, with an internal system of wires and electrified plates, which have the task of capturing the particulate present in the fumes. During 2024, work continued on the revamping of the Monfalcone power plant, which was decommissioned in 2023 and until then operated on coal, for reconversion to a natural gas-fired combined-cycle plant, scheduled for completion in 2026. The phase-out from coal has brought environmental benefits, including a decrease in the Group’s emission curve (refer to the chapter on Standard E1) and a lowering of pollutant levels, which have always been within legal limits, due to the intrinsic qualities of the fuel. In quantifying the actions, the time horizon was considered to be the Plan period. Table 74 Actions E2 Action Plan u.m. Operating expenses (OpEx) 2024 Capital Expenditure (CapEx) 2024 Future Operating Expenses (OpEx) Future capital expenditure (CapEx) Monfalcone Plant revamping € 0 157,164,980 55,344,168 275,774,810 These amounts are included under the investments item in the Company’s Financial Statements. To finance the above-mentioned action plan, A2A plans to allocate both part of the cash flows generated (self-financing). It is noted that the actions related to the San Filippo del Mela power plant do not have associated capital expenditures, while the operating expenses have been deemed not significant. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 231 Metrics and Targets E2-3 Targets related to Pollution [22] The Group has defined targets within the Sustainability Plan for the district heating that contribute to combating Pollution in cities. In fact, district heating helps reduce the environmental impact by offering an alternative that cuts down on the emissions produced by combustion for heat production that deteriorate air quality. The targets in the table below refer to all Group companies and only include directly managed activities in the scope, thus excluding the upstream and/or downstream value chain. Although these targets have not been defined on the basis of a specific policy, it can be said that they are consistent with the guidelines in the Strategic Plan updated in November 2024, where it is emphasised that district heating remains a key lever for the decarbonisation of urban contexts, with growth also due to recovery from third-party industrial thermal waste and new data centres. Each target is calculated consistently with the time frame of the Plan, i.e. with targets to 2035. In addition, in order to monitor the progress of the objectives, two intermediate milestones are planned as of 2027 and 2030 and actual performance measured in the reporting year. Stakeholders are not directly involved in the process of defining the objectives below, but are involved in the process of identifying impacts, risks, opportunities and material issues within the framework of Double Materiality which form the basis for determining the targets. [25] Finally, it should be noted that the objectives set by the Group are voluntary, but guided by European regulations. Table 75 [23] Circular economy Action KPIs KPIs detail 2024 2027 2030 2035 District heating Helping to reduce the environmental impact of cities, paying particular attention to air quality implementing district heating and district cooling NOx emissions avoided thanks to TLR (t) - cumulative Difference between NOx emissions generated to heat buildings without district heating and NOx emissions generated by district heating 1,034 1,855 2,776 4,388 232 A2A Report on Operations 2024 Sustainability Statement E2-4 Pollution of air, water and soil [28a] Data on the pollutants emitted by the Group (Regulation EC No. 166/2006 of the European Parliament and of the Council, E-PRTR register) are provided below: Table 76 Pollutants in the air Name of the pollutant u.m. 2024 Chlorine and inorganic compounds (expressed as HCl) kg 12,650 Nickel (Ni) and compounds kg 96 Nitrogen oxides (NOx/NOz) kg 1,017,717 Total kg 1,030,463 Table 77 Pollutants in water [AR23c] Name of the pollutant u.m. 2024 Total nitrogen kg 182,000 Total organic carbon (TOC) (as total C or COD\/3) kg 179,667 Chlorides kg 2,592,000 Total phosphorus kg 14,000 Copper (Cu) and compounds kg 202 Zinc (Zn) and compounds kg 1,303 Total kg 2,969,172 Table 78 Emissions of pollutants to water in areas at water risk Emissions of pollutants to water in water risk areas u.m. 2024 Total emissions of pollutants to water in water risk areas (RA 23c) kg - Total pollutant emissions to water occurring in areas of high water stress kg 4,472,667 Total water pollutants kg 4,472,667 Percentage of total pollutant emissions to water in water risk areas % - Percentage of total pollutant emissions to water in areas of high water stress % 100 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 233 [30a] In 2024, the NOx emissions to air decreased by 37% due to lower production by some thermoelectric plants, resulting in emissions below the threshold values. In accordance with the methodology, emissions below the threshold values were decoupled from the 2024 indicator, leading to a sharp decrease in the value compared to the figure of 2023. Emissions to water remained almost constant, confirming that the performance of the purification plants was maintained. [30b] In accordance with current permits, pollutants in fumes and waste water are monitored by continuously certified control systems or by regular sampling and analysis according to approved methods. As far as atmospheric emissions are concerned, the declared substances were monitored at site level, in accordance with the sector’s BREFs (BAT Reference Documents, i.e. reference documents aimed at disseminating and increasing awareness of the best technologies available). In particular, the concentrations of nitrogen oxides, relating to the thermal power plants and waste- to-energy plants, and the concentrations of hydrochloric acid, relating only to the waste-to-energy plants, were measured continuously through Emission Monitoring Systems (EMS), managed according to sector standards; the equipment constituting the EMS is subject to control, calibration and maintenance activities in accordance with the authorisations in force and according to the UNI EN 14181:2015 standard. Copper and nickel compounds were determined by regular sampling and analysis by accredited laboratories according to UNI CEN EN ISO/IEC 17025. Reported water emissions were monitored through regular sampling and analysis, carried out by accredited laboratories according to internationally standardised methods. Bulk pollutant values are calculated by the facilities in charge, from the measured concentrations multiplied by the volume of fumes or water discharged. For 2024, the actual data up to November 2024 were taken into account and the emissions for December were estimated. [30c] Mass pollutant values are determined at site level by the relevant facilities. Subsequently, specifically authorised personnel enter the quantities for each site of the Group into the dedicated data collection software where they undergo a control and validation process. Values above the thresholds that are set by Regulation 166/2006 are aggregated at Group level in order to determine the indicators to be reported in this document. [31] Bulk pollutant values are calculated by the facilities in charge, from the measured concentrations multiplied by the volume of fumes or water discharged. For 2024, the actual data up to November 2024 were taken into account and the emissions for December were estimated. E2-6 Anticipated financial effects from Pollution-related impacts, risks and opportunities [40b] During 2024, two fires occurred at the Fombio and Novate-Beltrami plants, resulting in operating costs of € 555,171 and capital expenditure of € 260,000 both supported for the restoration of damaged systems and equipment and disposal. In addition, it should be noted that A2A Ambiente obtained an insurance reimbursement on this damage in the amount of € 383,212 which was recognised in the financial statements under other revenue, thus limiting the financial effect on operating costs to € 171,960. Table 79 [40b] Expected financial effects due to material risks from Pollution-related impacts and dependencies u.m. 2024 Operating expenses (OpEx) in relation to deposits and serious accidents (Pollution) (40b) € 171,960 Capital Expenditure (CapEx) in relation to deposits and serious accidents (Pollution) (40b) € 260,000 234 A2A Report on Operations 2024 Sustainability Statement Table 80 Impacts: ESRS E3 Sustainability topic Impact Type Stage Time horizon Short Medium Long Water Water consumption Water withdrawals Impact on water resource availability as a result of water use in production processes Negative Actual OO, P, R Water Water consumption Impact on water resource availability as a result of abstraction activities and network losses during water supply services Negative Potential OO, I Water Water withdrawals Contribution to the responsible use of water and the extension of its life cycle through collection and treatment Positive Actual I Water Water discharges Re-introduction of poor quality water due to malfunctions in the purification systems resulting in damage to the environment Negative Potential OO, I Table 81 Risks: ESRS E3 Sustainability topic Risk Stage Time horizon Short Medium Long Water Risks associated with the water supply chain - A2A Ciclo Idrico The distribution of water for human consumption that does not respect the quality and quantity characteristics associated with the distribution of drinking water could have repercussions on people’s health as well as economic impacts due to the need to interrupt production activities and impacts on the overall image of the Group in its relations with local authorities and communities. OO Water Water consumption Scarcity of water for drinking water use Risk of failure to continuously supply drinking water in the event of prolonged periods of drought and/or changes in the hydrogeological regime. OO, I Water Water discharges Water cycle – Purification Potential impacts on the Group’s overall image, in relations with local authorities and communities as a result of any complaints of insufficiently purified water discharges into the receiving water bodies, in relation to the reference regulatory framework and the distribution of responsibilities between the Company and the competent territorial bodies. OO Water Water discharges Directive on Urban Waste Water Treatment Potential impacts on the Group’s overall image, in relations with local authorities and communities as well as economic and financial impacts as a result of possible critical issues in the application of the new Directive on Urban Waste Water, the text of which is currently being finalised at a European level (COM(2022)541) and will have to be implemented in Italy. OO 5.2.3 ESRS E3 Water and marine resources Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 235 Table 82 Opportunities: ESRS E3 Sustainability topic Opportunity Stage Time horizon Short Medium Long Water Water consumption Water withdrawals Enhancement of investments in saving and optimising the use of the water resource for drinking purposes OO, I 236 A2A Report on Operations 2024 Sustainability Statement relative humidity). At this stage, acidic pollutant residues are further removed from the fume by pH control performed with the injection of a sodium hydroxide solution. In order to monitor the salt concentration in the tower, the washing water is purged and returned to the combustion chamber. For maximum environmental benefit, the wet fume treatment system consists of a second stage in which, through sub-cooling of the fumes, a part of the humidity contained in them condenses, recovering the latent heat of evaporation. The new fume treatment system allows the recovery of latent heat through condensation (Flue Gas Condensation) of the water vapour contained in the flue gas. Using heat pumps, the thermal energy recovered from the fumes is transferred to the district heating network. Fume condensation produces water, which is treated in the new CWT (Condensate Water Treatment) plant to produce demineralised water for boiler feed, and osmoticised water for the wet-purification process and the district heating network. The CWT plant has been designed with a view to maximum reuse of the flows involved and, under normal operating conditions, involves no water discharges. It achieves a double environmental benefit: \- avoids water discharges from the fume treatment process; \- reduces the extraction of well/aqueduct water for the production of demineralised and osmosis water. • at the Lamarmora co-generation plant of A2A Calore e Servizi, continues the commitment to favour water supply from industrial wells and to reduce withdrawals from the aqueduct: thanks to this commitment, compared to 2023, the ratio of water recovered in the production cycle to that drawn from the well has increased from 0.1 to 0.5. In addition, in 2024, water consumption for process use at the power plant decreased and the water contribution from the fumes cleaning plant of the Brescia waste-to-energy plant described above, which is now fully operational, was recovered. • also in 2024, the A2A Ciclo Idrico’s commitment to pursuing the strategic objectives for the protection of water resources continued, within the perimeter defined by ARERA which, with Resolution 917/2017 (the so-called Technical Quality), has established a set of macro- indicators of an environmental nature to which specific improvement objectives, which water service providers must respect, are associated, based on an agreement with the Area Authority Impact, risk and opportunity management ESRS E3-1 Policies related to water and marine resources Water and water consumption [11] Water resource issues are addressed by the HSEQ Policy adopted by the A2A Group, which has among its principles the care of water assets, minimising consumption, waste and safeguarding the quality and quantity of the resource. However, the Group does not have a specific policy in place on this issue, which is planned to be drafted by 2025. [12a, 12b, 12c, 13] The aspects covered by this standard and relevant to the A2A Group will be taken into consideration and assessed as part of the Policy being defined, which include the management of water resources (use and supply of water, water treatment and the prevention and reduction of water Pollution deriving from the Group’s activities), the design of services with a view to tackling water-related problems and the commitment to reduce significant water consumption in water-risk areas. ESRS E3-2 Actions and resources related to water and marine resources Water and water consumption [17, 19] The protection of water resources is a value for the entire A2A Group, which for years has carried out actions aimed at managing them in the best possible way, also by virtue of the strategic value that water assumes for its own activities and for the well-being of the ecosystems. Recent interventions include 3 : • during 2023-2024, a wet system for the reduction of acid gases with recovery of the moisture contained in the fumes was implemented at the Brescia waste-to-energy plant. At the outlet of the bag filter, the gases are sucked in by the fume fan (which thus maintains the fume circuit from the boiler to the dry scrubber) and sent to the wet fume treatment section. A fume-fume exchanger allows a reduction in the temperature of the fume gases, which are sent to the wet scrubbing section where, through the injection of water, they are brought to a saturated condition (100% 3\. [19] It should be noted that all the actions described refer to water-risk areas. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 237 on the actions and implementation priorities, also considering the possible presence of services in Municipalities in European infringement proceedings, areas with higher water stress and regulatory adjustments. With particular reference to the reduction of network losses, starting from the base value calculated in 2017, the Authority defines a reduction target which is updated every two years, on the basis of the previous balance. The reduction of network losses is aimed at ensuring a decrease in water withdrawal, and therefore investments in the waterworks service are mainly aimed at the restoration or replacement of pipes, the districting of networks, and the control and modelling of flows within them. Another area of action for A2A Ciclo Idrico concerns water resilience, for which ARERA introduced a new specific macro-indicator in 2023, i.e. the ratio between the consumption of the integrated water service, including network leaks, and the water availability of the service itself. The monitoring of the indicator includes an experimental phase, which will provide the necessary data to set improvement objectives. To reduce leaks, a plan has been drawn up for the mass replacement of the networks and user sockets. The plan is based on evidence gathered from systematic leak detection campaigns and requires an assessment of the infrastructure needs of the municipality in question. During the works, pipelines can be upgraded and lined to improve the continuity and regularity of the service. Computer tools and calculation algorithms are used to identify the networks most in need of intervention, allocating economic resources in the most efficient way. These tools will be implemented with predictive failure analysis information, using big data to identify the sections most likely to break in the future. In addition to network replacement, the plan includes infrastructure interventions to optimise the management of water systems and pressures, such as: \- system modelling (which involves: data collection, model construction and calibration, verification and testing) \- districting (to lower pressure and better monitor and react to ruptures), \- rationalisation of networks through intermediate repumping. Lastly, the Plan contains a set of maintenance work on existing meters and the installation of new meters aimed at controlling leaks and network balances. Water Safety Plans (WSP) include an analysis of the water system in order to reduce the risks, both in terms of quality and quantity, associated with the distribution of drinking water. This analysis is carried out for each stage of the drinking water supply chain, from the hydro-geological basin to capture, treatment, storage and distribution, including the water delivery point. Table 83 Action Plan u.m. Operating expenses (OpEx) 2024* Capital Expenditure (CapEx) 2024* Future operating expenses (OpEx) Future Capital expenditures (CapEx) Water recovery € 402,674 - 4,400,000 - Reducing network losses at A2A Ciclo Idrico € 605,333 29,833,016 3,582,332 127,526,539 * These amounts are included under the operating cost and/or investments item in the Company’s Financial Statements. In quantifying the actions, the time horizon was considered to be the Plan period. To finance the above-mentioned action plan, A2A plans to allocate both part of the cash flows generated (self-financing) and sustainable debt instruments, such as Green Bonds, including European Green Bonds, and green financing. Sustainable Finance is considered a fundamental lever to support the implementation of the Group’s strategic plan, as described in detail in the “Sustainable Finance” section. 238 A2A Report on Operations 2024 Sustainability Statement Metrics and Targets ESRS E3-3 Targets related to water and marine resources Water and water consumption [22] The Group has defined specific objectives within its Sustainability Plan that contribute to the protection of water resources. Although not defined on the basis of a specific policy, it can be said that these objectives are in line with the HSEQ Policy, which states that the Group takes care of water resources by minimising water consumption, water dispersion, and controlling the quantity and quality of water returned to the environment. The objectives in the table below refer to all Group companies (or to specific companies where indicated) and only include directly managed activities in the scope, thus excluding the upstream and/or downstream value chain. These were defined using internal methodologies and based on the processing of data collected by the relevant functions. Each objective is calculated consistently with the time frame of the Plan, with targets set for 2035. In order to monitor the progress of the objectives, two intermediate milestones are planned at 2027 and 2030. In addition, the actual performance measured in the reporting year is reported. Stakeholders are not directly involved in the process of defining the objectives below, but are involved in the process of identifying impacts, risks, opportunities and material issues within the framework of Double Materiality which form the basis for determining the targets. [25] Finally, it should be noted that the objectives set by the group are voluntary, but guided by European regulations. Table 84 [22] Circular economy Action KPIs KPIs detail 2024 2027 2030 2035 Water Implement actions to reduce water consumption in capture and distribution processes, reduce water dispersion and improve the quality of water returned to the environment Reduction in water consumption from aqueducts in electrical distribution - Unareti perimeter - % reduction compared to 2020 consumption 32% 53% 59% 59% Linear water leaks (cubic metres/km/days) – average 16.1 15.0 14.4 13.5 Number of intelligent sensors installed for water service - cumulative figure 3,471 9,116 9,441 9,841 Percentage of new generation water service meters installed Number of smart meters / total meters 56% 79% 85% 89% Percentage of districting of the A2A Ciclo Idrico aqueduct network Cumulative km of districts / total km of distribution network 52% 61% 69% 83% [23a, 23c] All the above objectives have been defined with the aim of implementing actions to reduce water consumption in capture and distribution processes, reduce water dispersion and improve the quality of water returned to the environment. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 239 ESRS E3-4 Water consumption [28a, 28b, 28c, 28d] The following data on the A2A Group’s performance in relation to water consumption is presented below: Table 85 Water consumption u.m. 2024 2023 Total water consumption [28a] m 3 8,002,241 7,714,000 Total water consumption in areas at water risk, including areas of high-water stress [28b] m 3 987,859 - Total recycled and reused water [28c] m 3 1,510,220 1,353,000 Total volume of stored water [28d] m 3 257,000,000 - Volume changes [28d] m 3 -39,900,000 - [28e] Water consumption indicators report the quantities of water resources withdrawn for use in processes and sanitation. This is water that is partly reused within the sites (in 2024, 19% of the total volume withdrawn was reused) and partly discharged, after purification treatment in the cases provided for by law and permits. The indicator does not include water withdrawn for hydroelectric production and cooling water, which is entirely returned to the environment. Compared to the withdrawals of the year 2023, there is no significant change. In addition, a volume of 257 million cubic metres of water stored in hydropower reservoirs in 2024 was recorded. This value was obtained through indirect processing based on level measurements of the reservoirs of the hydroelectric basins of the Generation and Trading BU. Compared to previous years, there was a reduction in the quantities of water stored due to the emptying of the Truzzo reservoir in Valchiavenna, in order to allow for some maintenance activities, and to the decrease in the volumes stored in Calabria, due to a long period of drought that affected the reporting year, as described above. Data on total water consumption, including in water-risk areas, percentages of recycled and reused water, volumes of stored water and changes in volume are collected by the business structures on the basis of actual consumption recorded during the year or the quantities reported on utility bills. For 2024, water withdrawal values correspond to the figures recorded up to 30 November 2024 and the estimated values for the month of December, on the basis of average withdrawals in the year or expected production in December. [29] Shown below in tabular form is the A2A Group’s water intensity, calculated as total water consumption in its operations on the Group’s net revenues. Table 86 Water intensity u.m. 2024 Total water consumption [28a] m 3 8,002,241 Net revenue millions of euro 12,699 Water intensity ratio [29] cubic metres/ millions of euros 63,015 Revenues from activities in sectors with a high climate impact were taken into account for the calculation of water intensity. 240 A2A Report on Operations 2024 Sustainability Statement Table 87 Impacts: ESRS E4 Sustainability topic Impact Type Stage Time horizon Short Medium Long Factors with a direct impact on the loss of biodiversity Change in land use, change in fresh water use and change in sea use Pollution Impacts on the state of species Impacts on the extent and condition of ecosystems Impacts and dependencies on ecosystem services Potential damage to biodiversity caused by the interference of activities with the protected and non- protected area system (soil damage, deforestation, water damage, Pollution, etc.) Negative Actual OO, EE, P, C, GN, R, I 5.2.4 ESRS E4 Biodiversity and ecosystems Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 241 and reduce associated effects. For this reason, in accordance with the Biodiversity Policy adopted in 2022, analyses of potential interferences of the Group’s activities with the system of protected areas continued, with a view to extending them to the new sites in the areas. The system in question concerns areas belonging to the Natura 2000 Network (SCI/ SAC and SPA) identified at a community level, nationally protected areas (EUAP), wetlands listed as internationally important and IBAs (Important Bird and Biodiversity Areas), areas considered to be important habitats for the conservation of wild bird populations. From the mapping phase, it emerged that out of a total of 399 Group sites and networks analysed, 172 have potential interference with the system of protected areas, which not only takes into account criteria of adjacency or overlap, but also wider areas of possible influence. Of these, 41 are located within protected areas, of which 19 are sites (one is in the planning stage) and 22 are networks (including underground parts). Strategy E4-1 Transition plan and consideration of biodiversity and ecosystems in strategy and business model [13] The A2A Group does not have a resilience analysis of its strategy and business model in relation to biodiversity and ecosystem. However, the Group is committed to defining and developing a Biodiversity Action Plan by December 2025, which will improve its strategy and business model in terms of protecting biodiversity and the ecosystems. E4 ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model [16a] Identifying the potential interactions of the A2A Group’s activities with biodiversity and the environment is essential in order to define the actions to be taken to prevent 242 A2A Report on Operations 2024 Sustainability Statement Below are the results of the analysis of potential interferences, understood as the overlap or proximity of the Group’s activities to protected areas. Table 88 Governance Relevant sites/ networks Activities performed Interaction assessment Type of protected area ID of protected areas FVT20 Energy production from photovoltaics Direct interference Natura 2000 Network National network ITA070005, EUAP1155 EOL11 Wind energy production Direct interference Natura 2000 Network ITA050009 AMB47 Waste management Direct interference National network EUAP0224 AMB50 Waste management Direct interference Natura 2000 Network IT1332614 AMB74 Energy production from biomass Direct interference IBA IBA178 AMB82 Energy production from biomass Direct interference IBA IBA197 AMB83 Energy production from biomass Direct interference Natura 2000 Network IBA ITB011113, IBA173 IDR01 Hydroelectric power generation Direct interference IBA IBA048 IDR03 Hydroelectric power generation Direct interference Natura 2000 Network National network IBA IT2040044, EUAP0017, IBA041 IDR09 Hydroelectric power generation Direct interference Natura 2000 Network National network IBA IT9320302, IT9310069, EUAP0550, IBA149 IDR10 Hydroelectric power generation Direct interference National network EUAP0550 RGAS01 Gas distribution network Direct interference Natura 2000 Network National network IT2050001, EUAP0736 RGAS02 Gas distribution network Direct interference Natura 2000 Network National network IT2050002, IT2050004, EUAP0899, EUAP0734, RGAS03 Gas distribution network Direct interference Natura 2000 Network IBA IT2060004, IT2060401, IT2060005, IBA012 RGAS04 Gas distribution network Direct interference Natura 2000 Network National network IT2020008, EUAP0290 RGAS06 Gas distribution network Direct interference Natura 2000 Network National network IBA IT2060004, IT2060401, IT2060012, EUAP0192, IBA012 RGAS07 Gas distribution network Direct interference Natura 2000 Network National network IBA Ramsar IT2070020, EUAP0334, EUAP0329, IBA019, Ramsar295 RGAS08 Gas distribution network Direct interference National network EUAP0736 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 243 Relevant sites/ networks Activities performed Interaction assessment Type of protected area ID of protected areas RGAS09 Gas distribution network Direct interference Natura 2000 Network IT1180032, IT20B0401, IT4010016 RGAS11 Gas distribution network Direct interference Natura 2000 Network National network IBA Ramsar IT2070020, IT3120120, EUAP0334, IBA019, Ramsar295 RGAS12 Gas distribution network Direct interference Natura 2000 Network National network IBA IT2080002, IT2080014, IT2080301, EUAP0195, IBA018, IBA022 RGAS14 Gas distribution network Direct interference Natura 2000 Network IBA IT4010018, IT20B0401, IBA199 RGAS17 Gas distribution network Direct interference Natura 2000 Network IT3220013, IT3220040 IGAS02 Gas distribution systems Direct interference Natura 2000 Network National network IT2050002, EUAP0734 IGAS03 Gas distribution systems Direct interference IBA IBA012 IGAS06 Gas distribution systems Direct interference IBA IBA012 IGAS07 Gas distribution systems Direct interference IBA IBA019 IGAS09 Gas distribution systems Direct interference Natura 2000 Network IT1180032, IT20B0401, IT4010016 IGAS12 Gas distribution systems Direct interference Natura 2000 Network National network IBA IT2080014, IT2080301, EUAP0195, IBA018 REL02 Electricity distribution network Direct interference National network EUAP0202 REL03 Electricity distribution network Direct interference Natura 2000 Network National network IBA IT2070021, IT2070402, IT2070015, IT2070016, IT2070006, IT2070019, IT2070018, EUAP0735, EUAP0193, EUAP0338, EUAP0332, EUAP0281, EUAP0719, IBA045, IBA058 REL04 Electricity distribution network Direct interference Natura 2000 Network National network IBA IT2070301, EUAP0305, IBA045 244 A2A Report on Operations 2024 Sustainability Statement Relevant sites/ networks Activities performed Interaction assessment Type of protected area ID of protected areas IEL03 Electricity distribution systems Direct interference Natura 2000 Network National network IBA IT2070021, IT2070402, IT2070016, IT2070018, EUAP0193, EUAP0338, EUAP0281, IBA058 IEL04 Electricity distribution systems Direct interference Natura 2000 Network National network IBA IT2070301, EUAP0305, IBA045 RACQ02 Aqueduct network Direct interference Natura 2000 Network National network IT2070018, EUAP0332, EUAP0281 RFOG02 Sewer network Direct interference Natura 2000 Network National network IT2070018, EUAP0281 ILL01 Public lighting network Direct interference Natura 2000 Network National network IT2050001, EUAP0202 ILL03 Public lighting network Direct interference Natura 2000 Network National network IBA IT1150001, EUAP0218, IBA018 ILL04 Public lighting network Direct interference Natura 2000 Network IBA IT1140017, IBA207 ILL05 Public lighting network Direct interference Natura 2000 Network National network IBA IT2080301, EUAP0195, IBA018 ILL07 Public lighting network Direct interference Natura 2000 Network National network IT2060012, EUAP0192 [16b] It should be noted that the mapped sites are currently not a source of impacts related to potential soil loss, desertification and sealing. The A2A Group will consider these issues further in the Biodiversity Action Plan, which is due to be drafted by December 2025. [16c] In order to assess the influences on threatened species from the Group’s operations, protected areas that are directly impacted by the Group were analysed. These protected areas are home to numerous animal and plant species - including some of those listed on the World Conservation Union’s (IUCN) “Red List” - belonging to various endangered categories and whose conservation is considered a priority. A total of 137 species are present in the areas directly impacted by the Group’s sites and networks and listed on the IUCN Red List. Specifically, there are 130 species of birds, 4 species of plants, 2 species of mammals and 1 species of amphibian, belonging to the following categories: • 7 in critical danger (CR); • 15 in danger (EN); • 24 vulnerable (VU); • 19 almost threatened (NT); • 72 of least concern (LC). It should be noted, however, that there is no evidence of direct impact of the Group’s activities on threatened species on the IUCN Red List. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 245 areas at high risk of deforestation, with the aim of achieving zero impact and not contributing to global deforestation (Zero Net Deforestation). [AR17] The biodiversity policy does not refer to third-party standards of conduct. [23] It should be noted that further objectives and criteria will be evaluated in the course of 2025 for integration into this Policy. The Group will consider updating the above-mentioned policy on biodiversity and ecosystems, incorporating elements not covered to date, such as: • impacts on biodiversity: identification of the direct contribution to the impact drivers of biodiversity loss, of the impacts on animal and plant species and on ecosystems and natural habitats; • impact management: strategies to mitigate damage to biodiversity and ecosystems through effective conservation measures; • dependencies and risks management: assessing physical and transitional risks related to biodiversity and ecosystems; • resource traceability: tracking the origin and impact of raw materials along the global value chain; • sustainable production and sourcing: managed ecosystems to enhance biodiversity with regular monitoring and reporting of the results obtained; • social consequences: effects of activities on biodiversity and ecosystems with impacts on local communities and vulnerable populations. [24a] Further assessments regarding the preparation of policies concerning operational sites within or near a biodiversity-sensitive area will be evaluated and possibly integrated into the Biodiversity Action Plan, which is expected to be drafted by December 2025. [24b] Furthermore, the A2A Group will look into updating its policy on biodiversity and ecosystems with regard to the application of practices concerning sustainable land use. Impact, risk and opportunity management E4-2 Policies related to biodiversity and ecosystems [22] The A2A Group has drawn up and adopted a Biodiversity Policy: a document of commitment aimed at protecting all species, especially those at risk of extinction, and at preserving the health of ecosystems, not only those that may be affected by the Group’s activities but also ecosystems outside the territorial boundaries in which it operates, from a broader perspective of protection. The scope of application of the policy is intended to apply to all Group companies, within the context of their activities and within the limits of their responsibilities. The Biodiversity Policy sets out the criteria according to which the Group wishes to conduct its activities in order not to harm ecosystems. These criteria include: • promoting information and education activities on the respect for biodiversity to all relevant stakeholders; • promoting and financing studies on biodiversity, also conducted by third parties, to broaden scientific knowledge; • maintaining up-to-date mapping of the Group’s assets in relation to areas of high biodiversity; • managing possible interference with biodiversity, adopting no or low impact operational and designing solutions with a view not to cause significant harm to flora and fauna, in accordance with the criterion of the European Taxonomy Do No Significant Harm (DNSH). [24d] The Biodiversity Policy also specifies that A2A, aware of the possible indirect risks of deforestation connected to the running of its activities, is committed to favouring the procurement of recycled cellulose and wood materials or materials from certified forests (FSC – Forest Stewardship Council/PEFC – Program for the Endorsement of Forest Certification Schemes) and avoiding the use of goods derived from raw materials originating from 246 A2A Report on Operations 2024 Sustainability Statement Programme for the protection of bird life in the Alto Garda Bresciano area The ornithological research project continued in the Alto Garda Bresciano park, a protected natural area of great naturalistic and landscape value. The project has found an interesting synergy with the interventions planned by Unareti to improve the electrical lines, such as burying them and replacing some of their sections without insulation. The aim of the study is to identify the potential interference of overhead power lines on bird life in the area being studied. In the initial stages of the project, five target species were identified for monitoring: Eagle owl (Bubo bubo), Golden eagle (Aquila chrysaetos), Peregrine falcon (Falco peregrinus), Black kite (Milvus migrans) and Short-toed Snake Eagle (Circaetus gallicus), all of which are particularly prone to mortality through electrocution and/or collision. A study area was defined to investigate the territory within the borders of the Alto Garda Bresciano Regional Park for a period of three reproductive seasons (from May 2022 to the end of 2024). In view of the wide motility of migratory and dispersive individuals covering particularly extensive territories that are not necessarily included in the regional protected area alone, the research activity will also be extended to the area of the valley that runs between the municipalities of Bagolino to the north, Casto to the west and Rezzato to the south. Field monitoring and research of past occurrence data of the target species and known mortality cases were then carried out. The methodology applied in the field surveys involved the identification of seven transects under short sections of bare cable medium voltage power lines that were periodically checked in search of potential bird species mortality events. In addition, seven photo-traps focused on specially positioned carcasses were installed in order to estimate the frequency and timing of their removal and consumption by carnivorous (canids and mustelids), omnivorous (wild boar, corvids) and other bird species. This part of the project will make it possible to estimate the actual mortality rate of birds more accurately, by integrating the number of documented events with the expected value of events that have occurred but were not E4-3 Actions and resources related to biodiversity and ecosystems [27, AR20e] Actions implemented by the Group in relation to biodiversity and ecosystems are individual actions undertaken by the Group using its own resources. These actions will be complemented and further developed as part of the review of biodiversity policy and the drafting of the Biodiversity Action Plan due by December 2025. Inauguration of a biological corridor at the Gissi power plant A biological corridor was inaugurated at the Gissi power plant, a project aimed at enhancing the area’s natural resources, promoting the absorption and storage of CO 2 and protecting the biodiversity of local fauna and flora. The area includes 6 hectares of green space surrounding the plant, enriched by over 800 olive trees of the Gentile di Chieti cultivar, 600 of which are over 50 years old, and 30 beehives that support the balance of the ecosystems through pollination. To encourage the pollination process and the preservation of biodiversity, melliferous plants are planted every year. This commitment is combined with the presence of extensive plots of land cultivated with lavender and rosemary, used for the production of essential oils and cosmetics in collaboration with a local agricultural organisation. The biological corridor also hosts a large orchard, including peach, almond, apricot, cherry, fig and plum trees, further enriching the ecological and agricultural value of the project. Every year, thanks to sustainable agronomic management, an average of 800 litres of extra virgin olive oil and 750 kg of zero-kilometre honey are produced. Both productions, entrusted to local farms, some of which operate within the Slow Food framework, helped to strengthen ties with the community and reduce environmental impact. All proceeds are donated to the Banco dell’Energia Foundation for its initiatives. This project is a tangible example of the Group’s commitment to implementing its biodiversity protection policies, fostering the conservation of natural resources and strengthening relations with the territory in which it operates. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 247 are estimated to pollinate around 30 million flowers every day, contributing to the protection and enhancement of local biodiversity. The project includes a programme of environmental biomonitoring of the site. At the end of the beekeeping season, samples of honey, bees, wax and pollen will be collected for chemical and physical analysis to detect any traces of environmental contaminants. In-depth pollen analyses will also be conducted on the honey using microscopy to identify the botanical species visited by the bees. This information will provide a picture of the area’s plant biodiversity and will be useful for estimating the amount of CO₂ absorbed by plants, based on their specific ability to sequester carbon dioxide and their distribution in the surrounding area. Scientific study for the protection of bats at the Ampezzo hydroelectric power station A study for the protection of the bat population was initiated at the Ampezzo hydroelectric power station, following the discovery of a significant number of bats during the reclamation of structures on the site. In particular, a monitoring of the Rhinolophus hipposideros population was conducted through bio-acoustic and photographic surveys, aimed at estimating the size of the nursery, which consisted of around 125 specimens. Thanks to these activities, it has been possible to postpone reclamation operations, avoiding disturbances during the breeding season of bats and at the same time improving the scientific knowledge of the Rhinolophus hipposideros species in the area. Currently, an infrared camera system is being installed to systematically monitor population progress. This tool will make it possible to collect data and images of scientific value and to use this information for educational purposes, making visitors aware of the importance of bat conservation and promoting awareness of their protection. This project is in line with the objectives of A2A’s biodiversity policy as it responds to the Group’s commitment to promote the conservation of local fauna by mitigating environmental impacts through low or zero impact operational solutions, as well as promoting education and awareness of the importance of bat conservation by raising awareness of their protection. documented as a result of carcass removal and consumption. The research allowed for an in-depth study of the presence of the target species in the protected area under study. Field monitoring, conducted during the three-year period 2022-2024, together with the analysis of numerous previous bibliographic data, led to the collection of a total of 521 reports and the identification of 31 nesting sites. Monitoring activities also resulted in the presence of 27 breeding pairs. In particular, with regard to the Eagle Owl, four new breeding pairs were identified, in addition to the four already known, thus doubling the known breeding population. These results also made it possible to identify potentially dangerous power lines to the studied species. The results contribute significantly to achieving the objectives of the Group’s biodiversity policy, following the principle of ‘No Net Loss’. Furthermore, the project favours the increase of ecological connectivity in the areas around the lake, in the foothills and valley floors, which represent preferential corridors for the migration, resting and feeding of the target species. This is in line with the Group’s commitment to maintain and develop healthy ecosystems in the territories in which it operates. Bee Hotel at Lamarmora power station A Bee Hotel has been installed in the area of the Lamarmora power station in Brescia with the aim of contributing to the protection of biodiversity and raising awareness on a priority topic such as the protection of pollinators, which are now at risk of extinction. The work, made mainly of wood and containing various materials, simulates the nesting and wintering places of wild bees and other small insects. The different varieties of apoids present in the area will be able to benefit from this structure, finding favourable conditions to start the reproductive process from February/ March and concluding it in the autumn. Installation of beehives for biomonitoring at the Somplago power plant An apiary has been set up in the Somplago hydroelectric power station, consisting of two organically managed beehives entrusted to the care of local beekeepers. The hives are home to around 120,000 Ligustica bees, which 248 A2A Report on Operations 2024 Sustainability Statement have been defined taking into account the context in which A2A operates and since Italy is a biodiversity hotspot, the Group is committed to monitoring all plants with respect to potential interference with biodiversity and to promoting initiatives in each Business Unit aimed at protecting biodiversity, since this is a transversal issue and intrinsically connected to all the Group’s activities. Each objective is calculated consistently with the time frame of the Strategic Plan, with targets set for 2035. In order to monitor the progress of the objectives, two intermediate milestones are planned for 2027 and 2030. In addition, the actual performance measured in the reporting year is reported. Although stakeholders are not directly involved in the process of defining the objectives below, they are extensively involved in the process of identifying material issues. [28] With respect to the actions implemented during 2024, the A2A Group did not use biodiversity offsets. Metrics and Targets E4-4 Targets related to biodiversity and ecosystems [31] IThe Group has defined specific objectives within its Sustainability Plan that contribute to the protection of biodiversity. These objectives were defined on the basis of the “Biodiversity Policy”. The objectives, primarily qualitative, in the table below refer to all Group companies and only include directly managed activities in the scope, thus excluding the upstream and/ or downstream value chain. These objectives Table 89 Governance Action KPIs KPIs detail 2024 2027 2030 2035 Biodiversity To adhere to projects aiming to protect the soil and protected species, monitoring and protecting biodiversity in the territories of competence Plants monitored with respect to potential interference with biodiversity (protected areas, Natura 2000 and others). This includes new plants acquired during the reporting year, the monitoring of which is planned within that year. (Maintaining full coverage of sites and activities as the company’s perimeter is expanded) 100% 100% 100% 100% Definition of a Biodiversity Action Plan - Maintenance Maintenance Maintenance Initiatives aimed at protecting/improving biodiversity are started and developed. - At least 1 initiative per BU At least 1 initiative per BU At least 1 initiative per BU Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 249 [32] The Sustainability Plan objective “Definition of a Biodiversity Action Plan” will be developed taking into account the regulatory context, including any relevant aspects of the “EU biodiversity strategy for 2030” [32b, 32a]. In particular, the Biodiversity Action Plan will assess the biodiversity and ecosystem targets in relation to impacts, dependencies, risks and opportunities relevant to its operations and value chain [32c], and with regard to the additional objectives that will be identified, the opportunity to apply ecological thresholds on a case-by-case basis [32a] will be evaluated. Finally, within the Plan, the geographical perimeter of the objectives will be identified [32d], any biodiversity offsetting activities [32e], and the level of the mitigation hierarchy to which each objective will be referred will be assessed [32f]. E4-5 Impact metrics related to biodiversity and ecosystems change [35, 38] The data in the following table are derived from the analysis of potential interferences, understood as the overlap or proximity of the Group’s sites to protected areas, regardless of the negative impact these may have. To date, there is no evidence of a significant negative influence from the activities of the Group’s sites on protected areas. Further in-depth studies will be carried out and, if necessary, integrated into the Biodiversity Action Plan, which is expected to be drawn up by December 2025. Table 90 Sites in biodiversity-sensitive areas u.m. 2024* Number of sites n 41 Site area ha 179 * In 2024, the calculation method for the interference of hydropower sites with protected natural areas was updated: the current indicator only considers the physical area occupied by individual structures (dams, works, buildings, sealed areas, guardhouses; reservoirs are not taken into account) as interference. The previous methodology considered the portion of the catchment area subtended by plants and dams that fall within protected areas. 250 A2A Report on Operations 2024 Sustainability Statement Table 91 Impacts: ESRS E5 Sustainability topic Impact Type Stage Time horizon Short Medium Long Resources inflows, including resource use Use of natural resources resulting in a reduction in their availability Negative Actual OO, EE, P, GN Resources inflows, including resource use Contributing to the country’s energy self-sufficiency and maintenance of energy security through efficient resource management and investment in waste and agricultural and food production waste valorisation practices Positive Actual OO Resources inflows, including resource use Contribution to the responsible use of raw materials and extension of product life cycle through collection, treatment and recovery of municipal waste Positive Actual OO, R Waste Potential environmental damage related to the generation of hazardous and non-hazardous waste and its improper disposal Negative Potential OO, EE, P, C, GN, R, I Table 92 Risks: ESRS E5 Sustainability topic Risk Stage Time horizon Short Medium Long Waste Risk Optimization and Development Waste BU The Group’s business plan envisages, for A2A Ambiente, development in certain business areas such as the materials recovery segment, OFMSW initiatives, new WTE, hazardous waste treatment plants, and M&A. There is a risk that these business development objectives will not be fully achieved, with potential economic and image impacts at Group level. OO, R Waste Risk Controls on incoming waste to Waste BU facilities There are possible image and economic-financial damages for A2A Ambiente and the Group due to potential penal/ administrative actions connected to the acceptance of waste that is accidentally non-compliant or wrongly carried out in the absence of certain conditions set out in the relevant approval forms. OO; transversal along the VC 5.2.5 ESRS E5 Resource use and circular economy Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 251 Table 93 Opportunities: ESRS E5 Sustainability topic Opportuniy Stage Time horizon Short Medium Long Resources inflows, including resource use Waste Regulatory framework favourable to circular economy development OO, R Resources inflows, including resource use Waste Change in consumer behaviour resulting from increased awareness of sustainable services/products (e.g. waste sorting), also thanks to environmental education and awareness-raising campaigns and programs carried out by the Company, which can positively affect the Group’s performance, in terms of higher revenues/lower costs and/or increased operating efficiency (e.g. lower costs for treating and sorting waste for recovery, lower costs for treating liquid waste) OO, R Resources inflows, including resource use Development opportunities in the domestic market through the recovery of critical raw materials OO, R Resources inflows, including resource use Development opportunities in the domestic market through energy recovery from waste OO, R Resources inflows, including resource use Development opportunities in the domestic market through material recovery from waste OO, R 252 A2A Report on Operations 2024 Sustainability Statement Impact, risk and opportunity management ESRS E5-1 Policies related to resource use and circular economy The circular economy is one of the two pillars on which the A2A Strategic Plan is based. The Group is a national leader in the collection, treatment and recovery of urban waste and continues to promote the construction of new plants, as well as the improvement of existing ones, in order to enhance separate waste collection as a source of raw materials that is no longer secondary but now ordinary. [14] Although there is no specific policy, issues related to the use and procurement of resources and waste management are addressed and managed by the HSEQ Policy and the Responsible Procurement Policy adopted by the A2A Group. [15b] The Group is committed to reducing its environmental footprint related to the procurement of materials, products and services, focusing in particular on the themes of Circular Economy and Energy Transition. In particular, it favours the sourcing of recycled cellulose and wood materials or materials from certified forests (FSC - Forest Stewardship Council/ PEFC - Program for the Endorsement of Forest Certification Schemes), as also provided for in the Biodiversity Policy. In the future, the company intends to progressively increase the use of recycled secondary resources and gradually reduce the use of virgin resources. The Group aims to purchase materials, products and services by assessing their whole life cycle impacts, focusing on the principles of reduction, reuse and recovery and in particular on the zero waste to landfill philosophy. With specific reference to the fight against climate change, in the process of selecting purchasing materials, the Group is committed to structuring a process to assess the carbon and environmental footprint of what it procures. In the course of 2025, consideration will be given to revising the Responsible Procurement Policy, integrating aspects of sustainable procurement and use of renewable resources. ESRS E5-2 Actions and resources related to resource use and circular economy [19] As part of the Circular Economy, the Group plans around 6 billion euro of investments, mainly in the treatment and closure of the waste cycle and the water cycle. The A2A ambition is to maintain a leading position in the environmental sector with more than 7 million tonnes of waste treated by 2035 in over 70 plants, of which 11 new ones are currently in the pipeline. The Group’s commitment to zero landfill is complemented by its commitment to closing the cycle by transforming waste into end-of-waste products in the wood, plastic, ash, glass, paper and compost chains, with the aim of transforming more than 1 million tonnes of waste into products and secondary raw materials by 2035. Installation and commissioning of a new osmosis plant at the Lamarmora power station Among the actions aimed at reducing input resources, of central importance was the installation and commissioning in 2024 of a new osmosis plant at the Lamarmora Cogeneration Plant, which will result in lower consumption of chemical reagents. Conversion of agricultural installations to biomethane production The A2A Group’s treatment plants generate secondary raw materials, ready for reuse in place of virgin materials, or waste, prepared for subsequent recycling in third-party company plants. Added to these materials is biomethane, the production of which started at the end of 2022, at the plants for the treatment of the organic fraction of municipal solid waste (OFMSW) in Lacchiarella and Cavaglià, and increased in 2023, after the revamping of the Biofor Castelleone plant. In 2024, the first projects for the conversion to biomethane production of biogas plants fed exclusively with agricultural and/or agro-industrial matrices were started. In particular, conversion authorisations have been obtained for the Livorno Ferraris, S. Fiorano, Scalenghe, S. Quirico, Iumagas, Giuliana and Biomax plants (the latter acquired in 2024), and the relevant work sites have been started in the first three plants. Once fully operational, these first 7 authorised plants will, through the valorisation of more than 350,000 tonnes per year of livestock manure, by-products Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 253 and energy crops, allow the production of approximately 25 million cubic metres per year of biomethane and more than 300,000 tonnes per year of digestate. The latter will be brought to the fields as a natural fertiliser because it is able to provide the soil with organic matter and nutrients (including nitrogen, phosphorus and potassium), thus allowing the reduction of the use of chemical fertilisers such as, for example, urea. In the course of 2025, further authorisations are expected to be obtained and further construction sites to convert other biogas plants to biomethane, so that the quantities of biomethane and natural fertilisers produced can be further increased. New robotic WEEE treatment line inside the Second Prison in Bollate The new robotic line was inaugurated in October at the treatment plant for Waste Electrical and Electronic Equipment (WEEE), managed by Amsa inside the Second Prison in Bollate. The facility, which has been operational since 2018 and has been realised within a peculiar European context for mitigated custody and the active participation of inmates in the activities offered, represents a virtuous model of circular economy and social-work inclusion. In fact, it not only allows the valorisation of critical raw materials contained in WEEE, such as rare earths and precious metals that are crucial for the ecological transition, but also offers a concrete vocational training path. The new treatment line, developed in collaboration with Hiro Robotics, a start-up company specialising in advanced robotics, uses artificial intelligence and collaborative robotics for the treatment and recovery of special electronic waste (WEEE), namely Flat Panel Displays (monitors, flat screen TVs, etc.). Uniquely, it significantly reduces processing time to 3.5 minutes per monitor compared to the current 10 and increases productivity by 100%, improving the accuracy of material separation and making the entire handling cycle more efficient. In addition, the project helps to increase the recovery of valuable raw materials, contributing to the circularity of the economy. Revamping the Muggiano plastics sorting plant The project, which forms part of the actions to develop the circular economy provided for in the A2A Ambiente business plan, involved the installation of a series of machines and structures for the storage, transport and sorting of different types of plastic and metal materials, to supplement and complete the existing ones, including belts, optical readers and automation systems and supervision software, as well as the preparation of areas and auxiliary services for the forthcoming installation of quality control systems using Artificial Intelligence, i.e. scanners capable of processing thousands of images per minute to “learn” to recognise the shape of certain types of plastic packaging. The revamping was carried out with the dual purpose of ensuring compliance with the new COREPLA, CORIPET, CONIP regulations and improving the efficiency of the plant by increasing the quantities of plastic products sorted, the quantities of aluminium recovered, and making the plant more flexible and able to meet future opportunities for sorting new products. The new conFigurtion, when fully operational in November 2024, will allow around 50,000 tonnes of plastics to be processed annually, with an expected reduction in by- products to be sent for energy recovery of -7% and an overall increase in recovery of +5%, compared to today. In 2024, the plant has not yet reached full operation, so there is no operational expenditure. As part of the revamping of the plant, the ‘Waste Robotics’ project represents a significant innovation in the field of plastic waste management. The initiative aims to automate the plastic sorting and sorting process using robotic systems assisted by artificial intelligence, aiming to replace traditionally slow and subjective manual operations. The robots are able to detect, select, take and precisely sort different types of plastic according to COREPLA specifications. It is expected to significantly increase productivity, reduce operating costs and improve the quality of the recycled material. In addition, the automation of the process will help make the sorting activity safer and less tiring for the operators. At present, the results obtained in the experimental phase at the Muggiano plant are promising and point to a future in which robotic technologies will play an increasingly important role in sustainable waste management. 254 A2A Report on Operations 2024 Sustainability Statement with the aim of informing and engaging 1400 business users (bars/restaurants) in Milan. The campaign aimed to raise awareness of correct waste disposal in glass and to reduce the percentage of impurities. The final results showed a decrease in the percentage of unsuitable materials and/or impurities in the areas analysed and a strong involvement of restaurateurs, who gave a lot of positive feedback. • In cooperation with Erion WEEE and Iper, Amsa placed the tenth Milanese Eco-island in Piazza Portello. The innovative collection point was set up as part of the European RENEW project to raise awareness and encourage citizens to dispose of electronic waste. Furthermore, in cooperation with Erion, Amsa launched the ‘LIFE-ECOSWEEE’ project with the aim of concretely testing different methods and incentives to increase the collection rate of small WEEE and portable batteries. • Furthermore, with the #AmbienteaScuola project, now in its seventh edition, Amsa has continued to promote separate waste collection in Milan schools and to raise awareness among students on the issues of environmental sustainability, urban decorum and the reduction of waste production. There are also many collective awareness- raising actions of citizens, schoolchildren and other stakeholders promoted by Aprica: • awareness-raising campaigns on urban decorum and public hygiene carried out in cooperation with the Municipality of Bergamo, with the main objective of increasing awareness of the importance of each citizen’s actions for the well-being of their city, and in Brescia through the anti-littering campaign, which tackles the problem of abandoning waste outside the bins; • awareness-raising campaign in Liguria, aimed at both citizens and tourists, was launched in July and August 2024, with the aim of promoting the importance of respecting the environment, encouraging more responsible and sustainable conduct, and disseminating good practices of separate waste collection even in the place of holiday. Circular economy As part of the Circular Economy, operating and capital expenditures aligned to the EU Taxonomy related to the following activities (5.5;5.6;5.7;5.8;5.9) in particular, investments support the objectives of the Business Plan in the area of Circular Economy by supporting the Group’s commitment to reduce to zero the landfill and favour the closure of the cycle with the transformation of waste into End-of- Waste products in the wood, plastic, ash, glass, paper and compost chains, with the aim of transforming more than 1 million tonnes of waste into products and secondary raw materials by 2035. [19, AR11, AR12] Since resources are a shared good and since circular economy strategies may require collective action, the A2A Group has for years been committed to developing collaborations and initiatives with its relevant stakeholders in the area in which it operates, such as the following. Participation in the Alliance for the Circular Economy Also in 2024, A2A took part in the Alliance for the Circular Economy, a joint initiative of 11 Italian companies aimed at promoting circularity in business strategies. In 2024, the Alliance for a Circular Economy has developed a new Manifesto to renew its commitment to promoting circular business, with a more strategic, open and collaborative perspective. Information and awareness-raising activities aimed at citizens for proper waste separation and responsible consumption In continuity with previous years, also in 2024, the subsidiaries Amsa and Aprica have carried out several initiatives aimed at promoting separate waste collection, the first fundamental step for circularity in waste management, and at raising awareness among citizens. Below are some collective actions implemented by Amsa, also in cooperation with its stakeholders: • Amsa, in cooperation with COREVE, continued with the campaign ‘All that glitters is not glass’ Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 255 Table 94 Action Plan u.m. Operating expenses (OpEx) 2024* Capital expenditures (CapEx) 2024* Future operating expenses (OpEx) Future capital expenditure (CapEx) Installation and commissioning of a new osmosis plant at the Lamarmora power station € 16,791 603,757 184,698 - Conversion of agricultural installations to biomethane production € - 5,098,506 80,635,469 64,193,000 New robotic WEEE treatment line inside the Second Prison in Bollate € - 619,964 445,744 - Revamping the Muggiano plastics sorting plant € - 6,378,291 2,313,198 216,343 Circular economy € 37,683,904 52,172,233 479,546,280 1,531,316,455 * These amounts are included under the item of operating costs and/or investments in the Company’s financial statements. In quantifying the actions, the Plan period was considered as the time horizon. To finance the aforementioned action plan, A2A plans to allocate both part of the cash flows generated (self-financing) and sustainable debt instruments, such as Green Bonds, including European Green Bonds, and green financing. Sustainable Finance is considered a key lever to support the realisation of the Group’s strategic plan, as described in detail in the ‘Sustainable Finance’ section. Metrics and Targets ESRS E5-3 Targets related to resource use and circular economy [23] The circular economy is a cornerstone of the Group’s strategy, which considers its commitment to the ecological transition not only a choice of environmental and social responsibility but also a competitive choice for both the Group and the country system. On this basis, targets were set in the Sustainability Plan for the development of the circular economy. Specifically, in addition to aspects related to the protection of water resources and the development of district heating, a series of objectives were defined to improve the process of waste recovery and treatment, the promotion of separate waste collection, and the grounding of policies that reduce waste production. The targets in the table below only include directly managed activities in the scope, thus excluding the upstream and/or downstream value chain. Although not defined on the basis of a specific policy, it should be emphasised that these objectives are in line with the commitments in the Strategic Plan updated in November 2024. The objectives were defined using internal methodologies and based on the processing of data collected by the relevant functions. Where applicable, as in the case of waste recovery and treatment KPIs, both national and European regulations and policies and the context in which the impacts occur have been considered. Each target is calculated consistently with the time frame of the Strategic Plan, with targets set to 2035. In order to monitor the progress of the objectives, two intermediate milestones are planned at 2027 and 2030, in addition to the actual performance measured in the reporting year. Stakeholders do not participate directly in the process of defining the targets below, but are involved in the process of identifying impacts, risks, opportunities and material issues, which form the basis for determining these targets. 256 A2A Report on Operations 2024 Sustainability Statement [27] Finally, it should be noted that the targets set by the group are voluntary, but guided by European regulations. Table 95 Circular economy Action KPIs KPIs detail Waste hierarchy [25] 2024 2027 2030 2035 Waste recovery and treatment Improve the recovery process of waste collected (including through their transformation into energy) and promote separate waste collection Rate of separate collection of urban waste in all municipalities served (%) Ratio between sorted waste and total waste at Group level. The calculation considers all the waste published in the MUD. The data relating to waste managed by third parties are estimated as they are not available at the time of publication Recycling 71% 72% 73% 75% % separate waste collection city of Milan Ratio between sorted waste and total waste at Group level. The calculation considers all the waste published in the MUD. The data relating to waste managed by third parties are estimated as they are not available at the time of publication Recycling 63.7% 65.2% 66.6% 69.0% % municipal waste collected in landfill Collected waste destined for landfill / Total of collected waste Disposal 0.4% <1% <1% <1% Per capita undifferentiated reduction (kg/ inhabitant) (Undifferentiated waste collected in tons / Total served inhabitants) * 1000 Recycling 138.0 129.0 120.8 1 07. 4 Waste sent for material recovery (kt) the KPI is calculated using the value of gross waste Recycling 1,141 1,363 1,741 2,045 Policies to reduce waste production Reduce the production of waste through a prevention, reduction and reuse policy Territories where waste prevention and reduction actions are active (% of total population served) always >85% Prevention 89% 91% 92% - No. of partnerships launched for circular economy initiatives Prevention / Reuse 32 39 46 - District heating Help reduce the environmental impact of the cities, paying close attention to air quality, implementing district heating and district cooling Energy from thermal waste / renewables for the TLR (TWht) Reuse 1.84 2.10 2.15 2.24 Share of heat from renewables and waste recovery Reuse 63% 63% 61% 60% Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 257 In 2024, the waste and biomass entering the Group’s plants will amount to 4 million tonnes, of which 1.8 million tonnes will be treated in material recovery plants, where they are transformed into new material or sorted and prepared for subsequent recycling in other plants. Non- recoverable waste sent to waste-to-energy plants is an energy resource, considered in the disclosure along with fuels in the ESRS E1-5 disclosure requirement. For details of water consumption, however, please refer to the discussion of the ESRS E3 disclosure requirement. The table below shows the indicators for the different types of chemicals and materials, the main ones of which are: mineral acids, additives for water treatment, ammonia solution and urea for denitrification, reagents for flue gas purification, aggregates for landfill filling and fluidised bed heaters, odourisers used in natural gas transport and distribution, oils and lubricants. At present, the Group has not activated a process for collecting and transmitting information on material and machinery flows. The relevance of this type of resource inflow will be assessed and, if appropriate, how to implement the monitoring process. [24c, 24d, 24e, 24f] As reported within the ESRS E3-3 disclosure requirement, the Group is committed to decreasing water use by reducing water consumption from waterworks in the distribution of electricity and linear water losses that occur in the course of its operations. Furthermore, the targets in the ESRS E1-4 disclosure requirement to increase the share of energy production from renewable sources implicitly involves a lower use of fuel and thus of raw materials. Each of the aforementioned objectives is connected to waste management, which is an incoming resource for the A2A Group. Actions aimed at waste recovery and treatment seek to incentivise separate waste collection as much as possible in order to recover the waste collected through the preferable solution of material recovery and residual use of energy recovery, but above all to limit landfill disposal as much as possible. ESRS E5-4 Resource inflows [30] For 2024, the main resource inflows are, in addition to energy resources, waste, water, chemicals and inert materials used in landfills and plants. Waste is treated at the Group’s plants for material recovery, energy recovery and disposal of the residual fraction that cannot be further valorised. Table 96 [31] Resource inflows u.m. 2024 2023 Overall total weight of materials used t 131,001 242,495 Overall total weight of products and technical materials used during the reporting period [31a] t 131,001 242,495 Overall total weight of biological materials (and biofuels used for non-energy purposes) t - - Percentage of biological materials (and biofuels used for non-energy purposes) that originate from a sustainable supply chain [31b] % - - Total weight of reused or recycled secondary components and intermediate secondary products and materials [31c] t - - Percentage of reused or recycled secondary components and intermediate secondary products and materials [31c] % - - The consumption of materials and products decreased compared to the quantity in 2023, mainly due to the closure of the Cavaglià landfill in 2023 and the decrease in thermoelectric production, both as a result of lower contestable demand and the shutdown of the Monfalcone power plant. The Group purchases biological materials (e.g. wood chips and straw) in order to supply its plants with biomass, therefore in order to produce electricity and heat as reported in the obligation to E1-5. 258 A2A Report on Operations 2024 Sustainability Statement [32] The chemicals and materials used are recorded by the business facilities on the basis of the actual consumption recorded during the year or the quantities on the purchase documents. For 2024, a ‘best estimate’ approach was used, taking data from direct measurements from January to November 2024 and estimating consumption in December. The December estimates were conducted by the business contacts using different criteria: the monthly average of 2024 rather than a historical series, the value proportional to the expected production, consumption or production in December 2023. ESRS E5-5 Resource outflows [37] Performance data related to the quantities of waste produced by the A2A Group’s own operations are presented below: Table 97 2024 2023 Waste generated u.m. Hazardous waste Non- hazardous waste Total Hazardous waste Non- hazardous waste Total Waste diverted from disposal through preparation for re-use [37bi] t - - - - - - Waste diverted from disposal through recycling [37bii] t 41,255 379,909 421,164 49,857 37 7,7 1 5 4 2 7, 57 2 Waste diverted from disposal through other recovery operations [37biii] t 1 28,206 28,207 - 26,687 26,687 Amount of waste not for disposal [37b] t 41,256 408,115 449,371 49,857 404,402 454,259 Waste for disposal through incineration [37ci] t 351 2,287 2,638 244 1,984 2,228 Waste for disposal through landfill [37cii] t 14,040 3,437 1 7, 47 7 13,643 3,478 17,121 Waste for disposal through other disposal operations [37ciii]* t 96,384 202,851 299,235 81,195 183,888 265,083 Total direct waste for disposal [37c] t 110,775 208,575 319,350 95,082 189,350 284,432 Total waste generated [37a] t 152,031 616,690 768,721 144,939 593,752 738,691 Non-recycled waste [37d] t 110,776 236,781 347,557 95,082 216,037 311,119 Percentage of non- recycled waste [37d] % 72.86 38.40 45.21 65.60 36.39 42.12 * The other disposal operations are preliminary storage, chemical-physical treatment and biological treatment. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 259 Table 98 [39] Hazardous and radioactive waste u.m. 2024 2023 Total quantity of hazardous waste t 152,031 144,939 of which total quantity of radioactive waste t - - [38a] The waste leaving the Group’s sites has very different compositions depending on the many processes by which it is generated. At the treatment plants, incoming waste, if not converted into new material, is transformed into waste that can be recovered by further plants; these types consist mainly of plastics, dry fraction of municipal waste, metals. In the energy recovery sector, mainly slag and ash from combustion, residual dust from flue gas treatment and ferrous metals recovered from ash treatment are produced. Similarly, in the energy production sector, waste is generated such as ash and residues from fuel combustion, as well as waste from the management of used mineral oils. In the wastewater treatment sector, the characteristic waste is sewage sludge, waste from filtration and screening, and residues from sewer cleaning. Clarification sludge and spent activated carbon are also generated in drinking water production. In other specific sectors, such as composting, the main waste is the soil improver, while in biomass digestion, chlorinated emulsions are produced. Landfills mainly generate leachate and digestate is produced in the OFMSW treatment plants. Finally, in the gas and electricity distribution sector, infrastructure maintenance and renewal activities mainly generate waste such as WEEE, as well as metal and plastic materials from the replacement of network components. [38b] The materials present in the main waste streams generated by the Group’s activities vary by business sector and process type and include: a) ash and slag resulting from combustion and containing mainly inert materials, minerals and sometimes traces of heavy metals depending on the type of fuel used; b) sewage sludge containing organic and inorganic substances and metals; c) soil and rock, inert waste from excavation and maintenance work, mainly consisting of sand, gravel, clay and rock; d) WEEE containing plastics, metals and sometimes rare metals; e) metallic and plastic materials from infrastructure maintenance or the decommissioning of industrial equipment; f) spent mineral oils, used for lubricating and cooling machinery, which contain chemical additives, heavy metals and hydrocarbons. [40] The quantities of waste produced are recorded by business facilities on the basis of waste registration documents (waste identification forms, loading and unloading registers). For 2024, data from direct measurements from January to November 2024 were taken into account, estimating production in December. The December estimates were conducted by the business contacts using different criteria: the monthly average of 2024 rather than a historical series, the value proportional to the expected production, consumption or production in December 2023. 260 A2A Report on Operations 2024 Sustainability Statement 5.3 Social information 5.3.1 ESRS S1 Own workforce Table 99 Impacts: ESRS S1 Sustainability topic Impact Type [14b] Negative: generalized/systemic, [14c] Positive: activity description Stage Time horizon Short Medium Long Working conditions: Adequate wages Negative effects in terms of satisfaction and turnover due to remuneration that does not meet employees’ expectations Negative Actual Generalized OO Working conditions: Work-life balance; Health and safety Increased employee satisfaction and psycho- physical well-being through well-being and work-life balance practices and initiatives Positive Actual Initiatives to promote employee well-being and health and safety awareness OO Working conditions: Health and safety Outbreaks of disease and illness due to unhealthy or risky production or service provision processes Negative Actual Generalized OO Working conditions: Working hours; Social dialogue; Freedom of association, the existence of works councils and the information, consultation and participation rights of workers; Collective bargaining, including percentage of workers covered by collective agreements Other work-related rights: Child labour; Forced labour; Confidentiality Violation of fundamental workers’ rights, such as the right to freedom of association and collective bargaining, privacy, child labour, forced or compulsory labour Negative Potential Generalized OO Working conditions: Health and safety Occurrence of accidents at work, with consequent risks to the health and safety of employees, during the course of company activities Negative Actual Generalized OO Equal treatment and opportunities for all: Gender equality and equal pay for work of equal value; Employment and inclusion of persons with disabilities; Measures against violence and harassment in the workplace; Diversity Respect for diversity and promotion of an inclusive and meritocratic corporate climate through company activities and initiatives that combat discrimination, including equal pay for women and men Positive Actual Activities related to D&I declaration and UNI/ PDR 125 certification OO Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 261 ESRS S1 Sustainability topic Impact Type [14b] Negative: generalized/systemic, [14c] Positive: activity description Stage Time horizon Short Medium Long Equal treatment and opportunities for all: Gender equality and equal pay for work of equal value; Employment and inclusion of persons with disabilities; Measures against violence and harassment in the workplace; Diversity Cases of discrimination and failure to include and integrate vulnerable groups Negative Actual Generalized OO Equal treatment and opportunities for all: Training and Skills Development Development of skills through training and professional development activities (e.g. digital skills, sustainability), job rotation, general and technical programs, also linked to personalized growth and evaluation objectives (e.g. career development plans) Positive Actual Training activities and career development plans OO Table 100 Risks: ESRS S1 Sustainability topic Risk [14d] impact or dependency related/ connected to the risk Stage Time horizon Short Medium Long Working conditions: Secure employment Risk of conversion of San Filippo del Mela thermoelectric plant A2A Energiefuture Potential reputational and economic and financial impacts for A2A Energiefuture and the Group related to the San Filippo del Mela site, for which alternatives are being assessed for the reuse of the site for industrial purposes in the energy sector, which would allow both occupational levels and the economic-financial balance to be maintained. - OO Working conditions: Adequate wages Managerial and technical expertise risk Potential economic and financial impacts for the A2A Group in connection with possible difficulties in sustaining its growth plans or successfully achieving the sustainable growth process that has been started as a result of the exit of “management” and/ or “technical profile” level resources as well as possible difficulties in acquiring new resources. - OO Working conditions: Health and safety Health risk Potential reputational and economic impacts for the A2A Group as a result of any allegations of occupational diseases and/ or real or alleged non-compliance by the company with health and health surveillance regulations, involving personnel working for the Group, in the event that there is media coverage. - OO 262 A2A Report on Operations 2024 Sustainability Statement ESRS S1 Sustainability topic Risk [14d] impact or dependency related/ connected to the risk Stage Time horizon Short Medium Long Working conditions: Health and safety Safety risk Potential repercussions for the Group’s image as a result of serious or very serious accidents involving internal and/or external personnel of third-party companies working at its premises and operating sites as well as visitors and third parties and/or any actual or alleged failures to comply with safety regulations. The scenario also considers the risks to people’s well-being from weather and climate factors. - OO Working conditions: Health and safety Major Accident Hazard Corteolona and Giussago Potential image repercussions for A2A Ambiente and the Group as a result of the occurrence of a major accident involving internal staff or the territory. Risk arising from impact OO Equal treatment and opportunities for all: Training and Skills Development ‘Digital’ skills risk Possible economic and financial impacts for the A2A Group in connection with possible difficulties in sustaining its growth and successfully achieving the process of sustainable growth, in the absence of resources with adequate “digital” skills or in the presence of resources that do not achieve and maintain adequate digital literacy. Risk arising from impact OO Equal treatment and opportunities for all: Diversity Maturity Risk Diversity Management A2A Potential impacts of a reputational nature for the A2A Group in connection with the partial failure to implement the diversity management policies that the company intends to develop with the effect of generating lower competitiveness as well as lower attractiveness of high-potential resources in the coming years. Risk arising from impact OO Table 101 Opportunities: ESRS S1 Sustainability topic Opportunity impact or dependency related/connected to the opportunity Stage Time horizon Short Medium Long Working conditions: Work-life balance; Health and safety Experimenting with innovative technologies to perform operational activities more safely and efficiently - OO; Transversal along the VC Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 263 Strategy S1 ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with the strategy and business model [13a, 13b] The Group’s strategy is aimed at attracting talent and retaining people through the implementation of a series of initiatives aimed at minimizing negative impacts and, where possible, eliminating them, while enhancing positive ones. The strategy and business model are continuously monitored in order to adapt them to any emerging and as yet unmanaged impacts, risks and opportunities. [14] For the purposes of this document, the A2A Group includes all of its own workers on whom it could have a material impact. [14a] ‘Employees’ means workers hired under one of the types of contract that, pursuant to the provisions of Legislative Decree No. 81/2015, configure the employment relationship: open-ended contract, fixed-term contract and apprenticeship contract. There are also people who work in companies under types of contract that are not strictly speaking subordinate employment but are considered as their own workforce: • Interns: individuals placed on an alternation training pathway between study and work, aimed at vocational guidance and training. If it serves the purpose of obtaining a formally recognized degree, the internship is defined as curricular. In all other cases, the internship is extra-curricular; • Self-employed workers: these are providers of works or services who are given assignments, of varying duration depending on the subject of the assignment, carried out with discretion as to the manner in which the activity is to be performed, with predominantly their own work and without being subordinate to the principal; • Temporary workers: persons who work in the company under a contract of employment. This is a contract, of indefinite or fixed term, by which an authorized recruitment agency places one or more of its employees at the disposal of the user, who, for the duration of the assignment, carry out their work in the interest of and under the direction and control of the user. In that case, the employer is the agency and the subordination bond remains with it. [14e] In order to achieve the objectives set out in the Strategic Plan regarding the country’s ecological transition, a number of infrastructural interventions are planned on some of the Group’s sites, aimed at maximizing efficiency, reducing consumption and, in particular cases, reconverting the site itself to the production of electricity from less polluting sources. These activities can have negative impacts on workers, mainly in terms of reduced working hours during times of infrastructural interventions; in addition, new technologies require ever new knowledge and skills, with the need for workers to undertake continuous training. In relation to these aspects two material risks have been highlighted: (i) Potential reputational and economic and financial impacts for A2A Energiefuture and for the Group as a result of the failure to convert the current fuel oil plant into another industrial plant that also allows current employment levels to be maintained”; (ii) Possible economic and financial impacts for the A2A Group in connection with any difficulties in sustaining its growth and successfully achieving the sustainable growth process that has been started, in the absence of resources with adequate “digital” skills or in the presence of resources that do not achieve and maintain adequate digital literacy. It should be noted that the A2A Group actively strives to minimize negative impacts on workers, in agreement with trade unions and workers’ representatives. [16] Among the material risks arising from impacts and dependence on people in its workforce that relate to specific groups of people is the aforementioned risk of conversion of the San Filippo del Mela thermoelectric plant - A2A Energiefuture. [14f, 14g] As recalled by its Human Rights Policy, the A2A Group undertakes to promote the effective elimination of all forms of forced or compulsory labour, as defined by ILO Convention no. 29, as well as all forms of exploitation of workers, including any form of abuse, coercion or psychological and physical violence, both with respect to its own employees and to workers employed along the supply chain, and strongly condemns the trafficking and exploitation of human beings in all its forms. The A2A Group also refuses the employment of child labour, as defined by the legislation in force in the country where the activities are 264 A2A Report on Operations 2024 Sustainability Statement The Policy applies to the staff of the A2A Group companies and to all those who operate in favor or on behalf of the same, within the scope of the activities carried out and within the limits of the relevant responsibilities, including the members of the Corporate Bodies and Supervisory Bodies pursuant to Legislative Decree 231/2001\. External collaborators, business partners and workers along the value chain are also addressees of the Policy. The Human Rights Policy, in addition and complementary to the Code of Ethics: • reaffirms the commitment of all companies in the A2A Group to promoting and supporting the values and fundamental principles affirmed by international institutions and conventions, including, in particular: the United Nations (UN) Guiding Principles on Business and Human Rights, the International Labour Organization (ILO) Fundamental Conventions and the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises; • provides for constant compliance with applicable law and the voluntary codes the A2A Group has decided to follow, as well as precise compliance with all company rules and regulations; • identifies potential risks of human rights violations and promotes a commitment to respect human rights in all professional relationships. Moreover, as part of the Enterprise Risk Management process, the A2A Group periodically monitors the risk relating to any failure to comply with the principles of ethical and social responsibility envisaged by the SA8000 standard as well as any involvement in investigations and/or criminal proceedings for non-compliance or misconduct on the part of management and/or employees. Moreover, the Group’s own workforce policies explicitly address human trafficking, forced or compulsory labour and child labour, confirming A2A commitment to social responsibility. carried out, and, in any case, in compliance with the minimum age established by ILO Convention no. 138. This applies regardless of the geographical areas and sectors in which the A2A Group operates, the activities performed, and the tasks undertaken by both operational and non-operational personnel. In the specific areas of activity of the A2A Group, there are no operations that, due to type or geographical area of reference, expose its workforce to a high risk of forced, compulsory or child labour. [15] All the tasks performed by the Group’s own workers are carefully analysed and a Risk Assessment Document (DVR) is prepared for each one, in order to prevent and contain occupational accidents and diseases. All risks associated with the activities of the company’s own workers are also managed by the Enterprise Risk Management process, from which the necessary mitigation measures are derived to reduce the risks and/or the probability of occurrence. Finally, all Group plants have internal procedures to structure processes, limit errors and reduce risks. Impact, risk and opportunity management S1-1 Policies related to own workforce [20, 20a, 21, 22] The A2A Group’s commitment as a Life Company has led to the adoption by the Board of Directors of A2A S.p.A., and the subsequent implementation by the respective Administrative Bodies of the companies in the A2A Group, of a specific Human Rights Policy to: • protect and promote the recognition and protection of the dignity, freedom and equality of human beings, labour protection, trade union freedoms and health and safety at work; • firmly reject any kind of discrimination, corruption, forced or child labour and exploitation of human beings, including any form of abuse, coercion or psychological violence; • ensure respect for the rights of communities (e.g. local realities, consumers, interested end- users) and promote their development. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 265 As part of improving the safety of operations, innovative technologies were tested in 2024 to carry out operational activities more safely and efficiently, and actions were initiated to increase staff awareness, so as to minimize human error. For the same purpose, provided were: • training and awareness-raising programs on safe behaviour that adopt forms of communication that appeal to emotional aspects and are also aimed at suppliers, • specific Health & Safety training programs, • as part of the Generation and Trading BU, a project was launched to identify the degree of accidentality in various organizational areas using a behavioural questionnaire and subsequent definition of a training solution dedicated exclusively to accident prevention with a focus on moods and risk perception; • then, in all the plants of the Generation and Trading BU and in 8 plants of the Waste BU, a specific awareness-raising campaign was carried out on fundamental safety behaviour involving the personnel of the contractors present in the plant. HSE measures and controls are also in place to ensure that activities are entrusted to and managed by suppliers whose performance is in line with company standards (e.g. minimum rating - for comparison with industry accident indices - to get on the vendor list). With specific reference to contractors, HSE audits are conducted at the sites of contracted activities and contractor accidents are monitored (in contracted activities). Finally, the MBO system was supplemented with health and safety indicators with the inclusion of KPIs related to the number of Safety and Near Miss Reports. At the same time, the Group promotes a culture of respect for the individual and their human rights and adopts specific measures (such as the Human Rights Policy or the Whistleblowing reporting system) aimed at countering the occurrence of sexual harassment or physical and psychological harassment in the workplace. [20c, 20b] With the intention of constantly monitoring its current and potential impacts on the human rights of its own workers and along the value chain, but also with respect to any impacted communities and customers, the A2A Group, committing itself to improving the effectiveness of preventive actions and any remedial action, has adopted various specific tools, including: • the whistleblowing channel, which is governed, also in terms of the relative methods of handling reports, by the “Guideline for reports, including anonymous ones, of the A2A Group (whistleblowing)” and described in the G1-1 disclosure requirement; • reporting channels and management tools established within the SA8000 management system and, with specific reference to discrimination (including gender), within the Diversity, Equity & Inclusion structure; • reference figures for relations with their staff (so-called HR Business Partners), who are also in charge of collecting informal (written or oral) reports for their area of competence and assessing possible corrective actions and/ or the appropriateness of activating formal reporting processes through other channels. [23] The Group is actively committed to ensuring a healthy working environment for all workers, whether employees, contractors or collaborators. In order to ensure full compliance with current regulations and prevent accidents throughout the supply chain, A2A adopts working practices and management systems that establish procedures, monitoring actions and training activities in the field of occupational health and safety that allow for the controlled management of the Group’s activities both in its offices and plants/operating sites. Specifically, the Group adopts certified management systems, both according to ISO 45001 on health and safety and ISO 39001 on road safety (for higher risk companies). In addition, there is continuous monitoring by HSE structures both at Corporate and at specific Company or Site level. 266 A2A Report on Operations 2024 Sustainability Statement • ensure the implementation, annual review and continuous and effective application of the gender equality management system, consistent with the People Strategy guidelines. The Steering Committee is made up of six company front lines that are directly involved in DE&I initiatives and for which they work in coordination with the DE&I function. [24b, AR25e] A2A undertakes to operate according to impartiality, promoting and protecting freedom of expression, not admitting any form of direct or indirect, multiple and interconnected discrimination in relation to gender, belonging to the LGBTQI+ community, age, disability, neurodiversity, state of health, ethnic origin, nationality, political opinions, social category of belonging, religious faith. The Group has also defined and implemented company policies that provide for the involvement of all levels of the organisation in the respect of these values, and promotes training and awareness initiatives on the subject and the dissemination of an inclusive culture that enhances the principle of equal treatment of all employees on the basis of their professional skills and abilities. Particular attention is paid to the development of innovative welfare policies aimed at promoting the well-being of employees and the reconciliation of private and professional life, as well as compliance with regulations to safeguard protected categories. [24c] The DE&I function confirmed the organizational model that includes voluntary work groups called the Inclusion Team, consisting of more than 100 colleagues. In mid-January 2024, the Inclusion Team was renewed with new participants through a new Call to Action to apply to join the team. In 2024, the figure of the Co-Leader was introduced, who together with the HR Guide and Sponsors identified in the Steering Committee, coordinate the activities of each group. [24a, AR25e] The Group’s approach to diversity, equity and inclusion is based on the principles of integrity and the protection of the individual within the working environment, ensured through the Code of Ethics, the Human Rights Policy, the Inclusive Language Manifesto and the DE&I Declaration of Commitment updated in May 2024. Through these documents, A2A undertakes to guarantee its employees a climate of mutual respect for the dignity, and reputation of each individual, guaranteeing and promoting freedom of expression, preventing insulting, discriminatory or defamatory attitudes and openly condemning any mobbing, harassment of any kind or unjustified attempts to hinder the professional prospects of others. The organizational structure Diversity, Equity & Inclusion (set up on 1 January 2021 under the name Diversity and Inclusion and renamed with its current name in March 2023) aims to foster and encourage a culture that values the full expression of individual characteristics and an increasingly inclusive work environment, through the coordination of DE&I initiatives in the different areas (Gender, Disability, Generation, Culture, Sexual Orientation and Gender Identity). Involving people, seeking and exchanging the professional contribution of all people is a pillar of our identity. The A2A commitment is contained in a DE&I commitment statement that applies to the entire Group, and is signed by the CEO and approved by top management. The company also has a management system for gender equality and has established a Diversity, Equity & Inclusion Steering Committee for project governance, with the following responsibilities: • ensure the effective adoption, implementation and continuous updating of the DE&I Declaration of Commitment by supporting and enhancing its dissemination; • sponsor and supervise initiatives aimed at enhancing Diversity and Inclusion; Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 267 The A2A commitment to gender fairness, both in terms of remuneration and professional development prospects, has also remained central, which has found action in 2024, in the constant monitoring of DE&I indicators, relating to the number of women managers, gender balance in the composition of the Boards of Directors of subsidiaries and investee companies in the inclusion of DE&I KPIs in the MBOs of the Group’s Top Management and senior roles, in the analysis, with an ever- increasing level of detail, of all indicators relating to gender balance, both in terms of remuneration (“gender pay gap”) and professional growth, paying particular attention to the career development of women. In 2024, an Action Plan was also implemented based on the analysis of the Adjusted Pay Gap (Pay Gap measured on a population of approximately 13,000 people, net of all legitimate pay differentiation factors, such as tenure at the company), which led to a further improvement in the KPI, which was already quite positive in 2023. Again in 2024, A2A collaborated with the Human Age Institute Foundation, the Italian Red Cross and Mestieri Lombardia for the placement of 23 people in dedicated pathways, which envisage 3 months of apprenticeship with the possibility of employment, accompanied by Italian courses and support in obtaining a B driving licence. For this result, in June 2024, UNHCR Italy and the UN Refugee Agency awarded A2A, for the second year running, the Welcome Working for Refugee Integration logo, a project supported by the Ministry of Labour and Social Policies, Confindustria and UN Global Compact Network Italy. On the occasion of 21 March - the International Day for the Elimination of Racial Discrimination \- a webinar was realized to learn more about the initiatives implemented by the Group. On the occasion of 21 May - World Day of Cultural Diversity for Dialogue and Development - the Group decided to offer a multi-ethnic themed menu in its corporate restaurants, to foster greater awareness and understanding of the various cultures in the world. The A2A Multicultural Calendar initiatives also continued, The objective of the Inclusion Team is to promote initiatives aimed at fostering and encouraging an inclusive culture on the 5 DE&I topics: Gender, Generations, LGBTQI+, Cultures and Disabilities. The Inclusion Team identified an action plan consisting of 30 actions, of which 22 priority actions started in 2024. During the past year, among other initiatives, 9 awareness- raising webinars were realized on the occasion of International Days on Diversity, Equity and Inclusion, as well as several video features. With regard to the latter, we would like to mention the video feature #Maipiùcon, with the participation of people from the Inclusion Team as actors, with 13 brief videos published weekly for about 3 months, aimed at promoting an increasingly inclusive working environment, starting with the language used, even in the most common, everyday situations. In addition, a cycle of 5 transversal meetings on DE&I issues called “Not only for parents...” was held to explore various topical issues such as multiculturalism, disability, cyberbullying, and equal roles within the family. The Group, over the years, has signed: • Charter for Equal Opportunities and Equality at Work promoted by the Sodalitas Foundation; • Manifesto for female employment - Valore D, a programmatic document in nine points to promote female employment and gender equity as a factor of innovation and growth for companies, by monitoring the presence of women within the organization; • “Patto Utilitalia - La Diversità fa la Differenza” to promote inclusion and value diversity; • WEPs, or Women’s Empowerment Principles: seven principles established by the United Nations Global Compact and UN Women, to promote female employment and gender equity as a factor of innovation and growth for companies; • Elis’ Business School System, which aims to orient girls and boys to the professions of the future and break gender stereotypes. In 2024, A2A 23 Role Models held 18 events in secondary schools to inspire girls and boys in the professions of the future, particularly in STEM fields. In the two-year period 2023-2024, 1,046 students were involved. 268 A2A Report on Operations 2024 Sustainability Statement commitment to raising awareness on this issue. On the occasion of 3 December - International Day of Disability - a theatrical performance was organized, reserved for A2A people, to raise awareness and explore these issues. Every year, on 4 October, A2A celebrates Generations Day, an event introduced in 2023 to highlight the generational diversity that characterizes the Group. The commitment is to foster synergy and mutual listening, creating an environment in which intergenerational collaboration can become a source of innovation and success. During the last celebration, a ‘A2A Generations’ video feature was launched: every week in October, colleagues simulated typical situations of working life, highlighting how different experiences, skills and approaches can be valorized, so that enrichment and growth can arise from intergenerational exchange. Recently, the Buddy Program, a pilot project, was launched, through which a senior support figure (Buddy) is to be deployed for more support and initial orientation to newly recruited persons (Buddee). The aim is to make new people feel an integral part of Life Company from the outset, with the contribution of colleagues of different ages and experience. This is complemented by the Smart Infrastructures Technical Academy, launched in 2022, which aims to create a working environment that promotes circularity of skills and inclusiveness, offering different generations the opportunity to collaborate and contaminate each other in a synergic manner. [24d] In order to ensure that discrimination is avoided, the A2A Group has defined and implemented corporate policies (Code of Ethics, Human Rights Policy, DE&I Policy) that envisage the involvement of all levels of the organization in respecting these values, and promotes the organization of training and awareness-raising initiatives on the issue of diversity and the dissemination of an inclusive culture, which enhances the principle of equal treatment of all employees on the basis of their professional skills and abilities. In particular, the A2A Group recognizes the fundamental role of the Function Managers, whose task is to: • verify that acts of discrimination do not occur in the work environment in which they work; consisting, for example, of the publication on the company intranet of the main holidays relating to the most widespread religions, with good practices for behaviour towards male and female colleagues of different cultures, and the maintenance of the figure of Multicultural Ambassador/Ambassadress (colleagues who are promoters and spokespeople towards the outside world of the issues of differentiated waste collection and the circular economy in the area). Since 2022, A2A has been part of the Parks network, a non-profit association set up with the aim of promoting diversity-friendly corporate strategies and practices. In addition, A2A was awarded as ‘Best Company’ at the presentation of the results of the eighth edition of the Parks LGBT+ Diversity Index, benchmarking tool related to LGBTQI+ issues. On the occasion of 31 March - International Transgender Visibility Day \- a webinar was held to present the Transition Policy, in force from March 2024, which aims to describe the initiatives launched by the A2A Group to remove obstacles to social transition, making it easy for the corporate context to recognize the perceived gender identity (gender of choice) of each person. Again this year, the Group participated in Pride, the public event celebrating social acceptance and recognition of civil rights of the LGBTQI+ community in several cities. A2A has been participating in the “Nuove Energie” project since 2021, with the aim of defining, starting from the mapping of the “needs” of “fragile” workers, a disability management model aimed at facilitating the involvement of people with disabilities in company processes. During 2024, the activity of administering specific questionnaires continued, followed by individual interviews by external consultants, both to managers and workers with disabilities, from whose analysis and synthesis the areas of intervention will emerge and, consequently, the 2025 action plan on the person. In addition, A2A has initiated various improvement actions, such as mapping the tools and equipment needed by fragile colleagues for full inclusion in company processes and initiatives. On the occasion of World Autism Awareness Day, the Group renewed its Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 269 [AR17b] In the MBOs of directors, individual targets against the KPIs of percentage Gender Balance BoD, percentage of women employees net of operatives and percentage of women managers are included, in order to ensure consistency in policies aimed at employment equality. In addition to those mentioned above, the Group has also introduced from 2024 a target for the indicator related to the completion, by the entire company population with employee, middle management and executive status, of compulsory courses in the area of Governance, including those related to the “Being a Life Company” path, which covers topics related to the reflection on possible biases within company processes, knowledge of the “DE&I and Harassment Policy” and the one related to “Human Rights”. [AR17c] Numerous initiatives were also introduced during 2024 in the area of awareness-raising and training, including dedicated webinars and film screenings on the topic. In addition, a number of red benches were installed and painted at the AEM Foundation headquarters in Milan, at the AEB headquarters in Seregno and at the Brescia- Lamarmora, Milan-Olgettina and Milan-Zama sites, as a visible and constant symbol of raising awareness of the importance of preventing and combating all forms of violence. The Lamarmora and Olgettina benches are also smart benches: solar-powered, they have USB and wireless induction charging points and a glass shelf with integrated photovoltaic cells and LED backlighting. On 25 November (International Day for the Elimination of Violence against Women), an anonymous survey conducted together with Fondazione Libellula was launched on the topic of harassment and gender discrimination. This survey, translated into 6 languages and accessible to screen readers for blind and visually impaired people, was created with the aim of understanding the perception and awareness of employees on the topic of gender violence and identifying the most effective actions to address the phenomenon also within our Group. Another initiative involved the posting and dissemination of materials (postcards, flyers, stickers) with the 1522 number in evidence, to spread awareness • identify cultural, organizational and relational obstacles that prevent full employment inclusion; • create a climate open to the expression of each person; • raise their team’s awareness of the company’s policies and content on diversity and inclusion. To ensure the concrete realization of the objectives set out in its policies, the A2A Group envisages: i) indicators to measure the effectiveness of Diversity, Equity & Inclusion actions, setting challenging targets in line with its strategic plan; ii) comparison with international ratings and best practices to identify and assess any “gaps” on the objectives of Diversity, Equity & Inclusion policies with a view to continuous improvement; iii) specific procedures to regulate certain business processes (e.g. the personnel selection process). In the event of incidents of discrimination, the possibility of using the Whistleblowing channel remains unaffected. [AR17a, 17f] The A2A Group monitors the following indicators on a quarterly basis in order to observe any trends and make decisions on current or planned projects, as well as on existing policies: i) recruiting and selection - number of selections by gender; number and percentage of female selections by business unit; number and percentage of female selections by qualification; composition of selection stages and conversion rate by gender. ii) people development & talent management - percentage of women managers raised internally compared to new managers (overall and by business unit); number of new women managers (overall and by business unit); percentage of training by gender and by contract (full-time and part-time); percentage of non-compulsory training by gender and by contract (full-time and part-time); number of women trained by qualification; average number of training hours by gender; average number of non-compulsory training hours by gender. 270 A2A Report on Operations 2024 Sustainability Statement by the participants according to their specific training needs. These are tailor-made initiatives to foster people’s self-learning and professional development, with a focus on continuous improvement of skills. The training courses for employees of hydroelectric and thermoelectric plants also included several hours of in-house training. S1-2 Processes for engaging with own workers and workers’ representatives about impacts [27, 27a, 27e, AR26] Since 2021, internal communication has played an increasingly central role within the organization, becoming a tool not only to inform, but also to involve, monitor, and bring people closer to the company, allowing them to feel that they are the protagonists of a single narrative. The Group has also set up a multi-channel communication strategy, with an editorial plan focusing on information relevant to the company, the Group’s business and the employees themselves. In particular, since 2022, the Group has been providing an anonymous annual Engagement Survey, managed by the Politecnico of Milan and addressed to all employees, which has been growing steadily since its introduction and whose latest redemption, in 2024, was 64%, with more than 8,000 responses received. This tool is essential to understand the level of involvement and satisfaction of the employees, who are also engaged through infopoints organized in the locations with the most staff. The Engagement Survey is an instrument designed to investigate: • the individual dimension, i.e. how employees perceive their daily work, • the relational dimension, i.e. relations between colleagues and managers, • the organizational dimension, i.e. how employees perceive company policies, • the value dimension, i.e. how much employees feel aligned with the Group’s values; and of the national anti-violence and stalking hotline (1522), a free 24-hour service offering concrete help to those in need. In addition, some Group companies have obtained UNI/PDR 125:2022 Gender Equality Certification. The virtuous path of A2A S.p.A., A2A Energia S.p.A, Amsa S.p.A, Aprica S.p.A, A2A Gencogas S.p.A and Unareti S.p.A was also recognized in 2024 and extended to the new certified companies A2A Ambiente S.p.A, A2A E-mobility S.r.l., A2A Ciclo idrico S.p.A, A2A Calore e servizi S.r.l., A2A Smart City S.p.A, A2A Illuminazione Pubblica S.r.l., and A2A Services & Real Estate S.p.A.. [AR17d] The Group has made all necessary and prescribed changes to the physical environment to ensure the health and safety of workers, customers and other visitors. [AR17h] For the development of digital and innovative skills, the Group is committed to setting up dedicated training programs. The commitment of the Digital Academy continues with the launch of the new Digital Empowerment program of more than 10 hours per person in phygital mode, dedicated to all A2A managers, to provide them with the indispensable skills to face the challenges that new technologies are posing. The training course of Copilot - Microsoft’s AI-based assistant - was the first pilot project that determined the importance of people at the centre of the AI deployment strategy, to reduce the effort on high-impact, low-value-added tasks and free up people’s time. The trial, which started in April 2024, saw users involved in an alternating cycle of theoretical training and practical workshop, with a training commitment of around 10 hours per user. In 2024, the first upskilling training course dedicated to people working in the hydroelectric cores and thermoelectric plants and those working in the A2A Energia contact centre started. During the training program, 230 people from the plants and 200 from the Contact Centre were involved, for a total of 28 hours for each participant, divided into 20 hours of cross- training and 8 hours of modules chosen directly Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 271 collective agreements. The rules of dialectics are further extended, at company level, where the issues to be discussed, as well as the subjects entitled to participate, are set out in the 2019 Industrial Relations Protocol, which identifies a series of issues (e.g. welfare, safety, equal opportunities) whose governance is entrusted to bilateral commissions, composed of the company and trade union sides, which meet periodically. Formal and institutionalized ways of involving workers’ representatives also include information and/or meetings carried out pursuant to legal provisions. Reference is made, for example, to the procedures pursuant to Article 47 of Law No. 428/1990, which generally end with a report of completion of the procedure; the procedures pursuant to Article 24 of Law No. 223/1991; the annual report on the number of contracted workers; the biannual report to the RSU on the situation of male and female staff. With regard to informal channels of contact with workers’ representatives, these do not constitute fulfilment of contractual agreements or legal provisions, but fall within the ordinary activity of informing and sharing with the trade union solutions concerning issues not subject to company bargaining or application of provisions deriving from CCNL or second-level bargaining (e.g. meeting for the management of employee meals when canteens are closed, etc.). [27d] Relations of all A2A Group employees are regulated by National Collective Bargaining Agreements (“CCNL”). The collective bargaining agreements applied in the Group lay down principles to guarantee the dignity of workers within the company context, particularly in the context of the articles mentioned below: • Art. 49 CCNL Electrical Sector - Equal Opportunities, Diversity, Inclusion • Art. 50 CCNL Electrical Sector - Social Actions \- Annex to the CCNL Electrical Sector “Charter of values of the person in the electrical sector companies” • Articles 47-48 CCNL Gas Water Sector - Equal Opportunities, Diversity, Inclusion • Art. 48 CCNL Gas Water - Social Actions • Art. 8, lett. B) CCNL Environmental Hygiene • general well-being at an internal level i.e. engagement, commitment and job satisfaction). In the last reporting period, more than 50 meetings were held with the managers in charge of the various organizational structures and, following what emerged and was shared with the business areas, a number of Focus Groups were set up to explore the needs from a generational and/or business-specific point of view. Suggestions and ideas are collected from the people involved and serve as the basis for planning mitigation actions, focused directly on the needs of internal staff. Throughout the process, from engagement to the return of results, a robust communication campaign is carried out through various channels. In addition, the Group listens to and directly engages its workforce to: • make services increasingly consistent with needs; • understand the perception downstream of events or the launch of new services. A further tool for communication and involvement is the Group Convention, a time when updates to the strategic plan and details of business developments are shared each year. In 2024, the ‘Life is a circle’ convention was held, attended by 1,500 managers in attendance and over 4,000 remotely connected. Further internal engagement tools are news and online communications, used to keep people in touch and directly involved in news and information from A2A daily work. [27b, 27c] As regards the process of involving workers’ representatives, the company has an ‘Industrial Relations’ function, which is responsible for defining and implementing company policies on labour relations in all Group companies. Depending on the issues being discussed with the trade unions, the dialogue may be limited to information/ consultation only or may be conducted by negotiation and conclude with the drafting of minutes. This involvement takes place through both formal, institutionalized and more informal channels. As far as the former are concerned, the modalities and timing of involvement are primarily defined by national 272 A2A Report on Operations 2024 Sustainability Statement education and the work-life balance, through reimbursement of expenses for education and instruction services, differentiated by age group, covering employees’ children up to the age of 18; training for Group managers, in order to develop a vision of maternity and paternity as life experiences that strengthen interpersonal and behavioural skills, as well as dissemination and awareness-raising activities for all Group employees on parenting issues. • Agreement for the definition of corporate collective bargaining and participation measures - energy area: in addition to and application of what was already provided for within the Industrial Relations Protocol of 2019, the Agreement reinforces and launches a system of participation of Trade Unions in the Governance of certain topics (Safety, Training Diversity & Inclusion), through the establishment of ad hoc technical observatories for each of them. • Memorandum of Understanding on the Launch of a Diffuse Share Ownership Plan for Group Employees: in order to allow employees to benefit in a direct way from the results achieved by the Group, favouring their involvement and participation in the life of the company, the Memorandum initiates a Diffuse Share Ownership Plan. It is envisaged, at three separate times, for the years 2025, 2026 and 2027, the allocation of shares without any outlay for Group employees, and the possibility of offering them the option of purchasing shares on favourable terms is also being studied. The start of the initiative is subject to further steps within the corporate bodies, which will take place in the course of 2025. [28] The Group’s approach to diversity and inclusion is based on the principles of integrity and the protection of the individual within the working environment, ensured through the Code of Ethics, the Human Rights Policy, the Inclusive Language Manifesto and the DE&I Declaration \- Social Integration and Labour Policies for Social and Marginalized People at Risk of Exclusion • Art. 54 CCNL Environmental Hygiene - Equal treatment between men and women \- Prevention and repression of discriminatory behaviour and sexual harassment and violence in the workplace • Art 55 CCNL Environmental Hygiene - Leave for women victims of gender-based violence • Art 56 CCNL Environmental Hygiene - Prevention and repression of mobbing. Multiple second-level trade union agreements were again stipulated in 2024, divided into those of a transversal nature to Group companies and other specific ones of some realities. The main ones are as follows: • Agreements on initiatives for greater environmental sustainability: in continuation of what had already been achieved in 2022 and 2023, agreements were signed - for both the energy and the environment area - to encourage greater environmental sustainability in the Group’s operations, by activating agile work on Fridays during certain winter and summer months, with a view to saving energy related to the heating of the offices. • Life Caring’ agreement: taking note of the period of serious demographic crisis that the country is going through and recognizing the dialogue between the parties as a driving force in supporting families, a trade union agreement was signed that recognizes a package of support measures for workers who are parents, which is based on three areas: time, economic support and training. Thus, a month of maternity/paternity leave in addition to what is required by law was extended to all Group employees, and granted to all fathers, with the possibility of opting for monetization in the pay packet, as an alternative to taking it; contributions were recognized to support Please note that for the AEB Group, the following are not applicable: • Art. 49 CCNL Electrical Sector - Equal Opportunities, Diversity, Inclusion; • Art. 50 CCNL Electrical Sector - Social Actions - Annex to the CCNL Electrical Sector “Charter of the values of the person in the enterprises of the Electricity.” • The Memorandum of Understanding on the launch of the Diffuse Share Ownership Plan. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 273 S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns [32a] As specified in the Human Rights Policy, the A2A Group assesses and monitors its human rights impacts with respect to its workforce, value chain workers and affected communities and is committed to improving the effectiveness of its actions to prevent the risk of incurring practices that violate human rights, as well as to ensure the effective management and mitigation of any negative impacts it may have contributed to causing in the course of its business. The A2A Group also identifies and assesses its human rights risks as part of the Enterprise Risk Management (“ERM”) process implemented according to the “Guidelines for the Internal Control and Risk Management System”. The A2A Group companies have adopted their own Organization, Management and Control Models in accordance with Legislative Decree 231 in order to prevent the negative impacts of any unlawful conduct, including on their workforce * . The A2A Group makes use of organizational tools aimed at empowering, involving and raising the awareness of its staff on social issues, such as, for example, specific information at company offices, on its website and through internal communication tools, as well as training and sharing events at various company levels. With reference to the possibility of making reports through the whistleblowing system, please refer to what is stated within the G1-1 disclosure requirement. [32b] In addition to the Whistleblowing channel, the A2A Group provides its workers with other ways to communicate their concerns and complaints. The main means of signalling are listed below: • in case of suggestions or complaints to facts or events occurred in the workplace and found to be in contrast with the social responsibility principles of the SA8000 standard (child labour, forced or compulsory labour, health of Commitment updated in May 2024. The data reported in this document refer to the male and female gender; A2A, however, recognizes the existence of a plurality of identities and is committed to enhancing them. All of the Group’s own workers who may be particularly vulnerable to the impacts and/ or marginalized, in all their daily activities are supported by specific tools that enable them to carry out the various tasks involved. Supporting tools are also provided in the case of engagement with own workers such as the survey. [AR25a, 25b] The company makes Italian language courses available and in addition, all online training courses also include subtitles in Italian and English. DE&I surveys are translated into several languages according to the nationalities prevailing in the Group and are accessible via screen readers to all visually impaired and blind people. The Group also prepares numerous initiatives dedicated to cultural integration, thanks to the Inclusion Team as described in the previous paragraphs [24d]. [AR25c, 25b] A multichannel communication strategy has been in place for some years now, which sees the differentiation of messages, in terms of ‘tone of voice’ and channels used (web, mobile and physical), as a solution to increase the effectiveness of communication. In fact, the Group informs its employees through editorial news, staff alerts, organizational news, and dedicated communications on the Ina2a Digital Workplace and the A2A Life app. In addition, reinforcement tools can be used for major campaigns with direct email and WhatsApp messages, posters on notice boards, messages in company video walls. For enquiries, the comunicazione.interna@a2a.it mailbox is active. * As of December 31, 2024, 76 companies of the A2A Group (including A2A S.p.A. and companies of strategic importance) have adopted Model 231, 11 companies (mostly recently acquired/established) will adopt it during 2025 and/or 2026, while two companies are not currently expected to adopt Model 231, as they are inactive. 274 A2A Report on Operations 2024 Sustainability Statement • facilitating the conduct of audits by verifying their results and promoting corrective action where necessary; • managing ‘non-conformities’, promoting and verifying the actions necessary to correct or prevent them; • Managing reports and claims; • Maintaining and defining contacts with interested parties. [32d] In order to raise awareness among workers about the availability of these channels, the A2A Group is committed to grounding training tools and communication strategies that are accessible to all. Awareness of the use of the various channels is measured and consolidated over time. [32e, 33, AR29] The monitoring of these reports and any resulting corrective actions is ensured and tracked by the relevant structures, especially where a structured tracking process is in place (e.g.: whistleblowing channels, SA8000). On this aspect, please refer to what is stated in the G1-1 disclosure requirement. [AR30] The ‘Industrial Relations’ function, by its very nature, is also the preferred channel for collecting any reports of negative impacts. With the Industrial Relations Protocol of 2019, dedicated spaces were then institutionalized, namely Group and individual Area Observatories (Energy and Environment) on the following topics: Economic Scenarios, Industrial Strategies, Employment Policies; Security; Training; Diversity, Equal Opportunities & Ageing Management; Welfare. These Observatories, made up of representatives of the company and the workers, are also configured as moments within which any critical issues concerning the specific topics can be brought to light. and safety, freedom of association and right to collective bargaining, discrimination, disciplinary practices, working hours, remuneration, management system), any worker and/or interested party may transmit them, also in written and anonymous form, by hand delivery directly to the SA8000 Workers’ Representatives on the Social Performance Team, by e-mail to sa8000.a2aspa@a2a.it, ordinary mail to A2A SpA Corso di Porta Vittoria, 4 20122 Milan. It should be noted that this is a tool only introduced in some Group companies, but with a plan for gradual extension to other companies; • in the event of non-inclusive and discriminatory behaviour, the employee may also report it to the Diversity, Equity and Inclusion Team, which manages its monitoring in coordination with the Group HR Business Partners; • in the event of informal reports of any kind, the worker may always contact the relevant HR Business Partners, who will assess the seriousness and complexity of the report and, consequently, put in place corrective actions and/or activate the channels mentioned above. [32c] For the handling of complaints, ownership and process responsibilities have been appropriately defined, identifying dedicated resources by role and competence. As an example, within the framework of the social responsibility policy, the so-called Social Performance Team (SPT) has been set up with the aim of: • identifying and assessing risks related to the SA8000 international standard by liaising with stakeholders; • allowing and pursuing possible corrective actions; • periodically verifying the effectiveness of the SA8000 policy and management system; Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 275 delegated and others to support the business in the pursuit of corporate strategies and objectives; guidance, coordination and control and others to support the business in the pursuit of corporate strategies and objectives; • guarantees systematic and documented verification of compliance with the applicable regulations and with the requirements and standards adopted; • guarantees the traceability of activities and documents relating to relevant Environmental, Health, Safety and Quality processes. [39] The process of identifying actions in response to identified negative impacts is characterized by several approaches, which are outlined below: • benchmark analysis: comparison of internal results and trends with what is happening in the market, in order to identify points of improvement and terms of comparison; • analysis of internal data (historical and trends): elaboration of analyses focused on specific phenomena (e.g. voluntary turnover) and consequent identification of critical trends that require further investigation and possible targeted actions for their mitigation; • performance indicators (KPIs): monitoring of key HR KPIs and comparison with relevant targets and historical trends for trend analysis and identification of specific patterns; • surveys: dissemination of surveys to gather feedback and insights from Group employees and highlight more or less critical evidence to prioritize and focus on; • internal audits: analysis of ‘non-conformities’ for a better understanding of critical issues; • top-down and/or bottom-up ideas that emerge from internal Group brainstorming moments based on the analysis of real and potential situations, both among senior figures and among HR department resources specialized and competent in the matter; • analysis of reports collected from workers through specific channels (e.g. whistleblowing, etc.); • needs emerging from relations with workers’ representatives: within the framework of Metrics and Targets S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions S1-5 Targets related to managing material negative impacts, enhancing positive impacts and managing material risks and opportunities [37, 40a] To prevent impacts, mitigate risks, and at the same time pursue opportunities related to environmental protection and employee management, the A2A Group has adopted Environment, Health and Safety, and Quality (HSEQ) management systems, in addition to the Gender Equality Reference Practice and the Social Responsibility standard. In addition, through the workforce KPIs of the Sustainability Plan we monitor the progress of managing the impacts of risks and opportunities. The A2A Group considers its commitment to corporate social responsibility both within its own organization and towards its stakeholders to be of great importance, setting as one of its primary objectives the achievement of the highest ethical standards and sustainable business development. The Group has defined an organizational model regarding HSEQ, described in a Guideline. This model also involves those who in various capacities collaborate with the Group’s companies and aims to protect the environment and the health and safety of workers and their well-being, by identifying risks, identifying corrective actions and preventive actions, and ensuring adequate education, information and training. The organizational model: • identifies HSEQ roles and responsibilities in positions close to risk sources to ensure effective management; • identifies, at the various levels, the corporate figures and structures to which the tasks of guidance, coordination and control are 276 A2A Report on Operations 2024 Sustainability Statement [38a, 38b, 38c, AR33a, AR33b, AR33c, AR33d, AR43] As part of its own workforce, during 2024, the A2A Group has committed to taking actions to mitigate negative impacts and promote positive ones. Working conditions Actions to mitigate negative impacts related to working conditions are as follows: • integration of the MBO system with health and safety indicators with the inclusion of KPIs related to the number of safety and near miss reports; • specific awareness-raising campaign on basic safety behaviour in all the plants of the Generation and Trading BU and in many plants of the Waste BU with the involvement of the personnel of the contractors present in the plant; • launch of a project within the Generation and Trading BU aimed at identifying the degree of accidentality in different organizational areas using a behavioural questionnaire and subsequent definition of a training solution dedicated exclusively to prevention, with particular focus on moods and risk perception. Regarding actions with the intention of generating positive impacts, the main ones are: • A2A Talent Attraction Strategy set up based on the profiles sought for the different roles and various Business Units. The search and selection of the best profiles available on the Italian market is planned annually in relation to the growth of the business and based on estimated turnover: the Group’s recruiting activities are continuous, with positions posted frequently and targeted activities on specific searches; • communicating information about the working environment and what the Group offers using social networks, especially LinkedIn and Instagram. On the A2A page of the latter platform, an HR column has been included that provides a clear and engaging description of welfare policies, smart working, tips for the selection process and what may be of interest to applicants. Those who join A2A are offered a package which includes comprehensive welfare, meritocratic and fair remuneration policies and an environment that upholds the values of diversity and inclusion; the company Observatories (Safety, Equal Opportunities, Training) - bilateral bodies composed of workers’ and company representatives - any needs emerging from the trade union side can be collected and actions subsequently assessed; • corporate events (e.g. team building) as an opportunity to gather needs and ideas for improvement in the management of resources and labour relations. In summary, the definition of actions to mitigate negative impacts derives from data-driven observations, from insights of HR resources by expertise or through the active involvement of employees or their proxies. [46, 47a, 47b, 47c] In addition, within the People Strategy, as the official manifesto of HR objectives and priorities, a number of employee- related sustainability goals were defined. The People Strategy’s quantitative targets are aligned with the HR targets in the Sustainability Plan and Strategic Plan and are therefore monitored in quarterly and internal HR reports. The objectives of the People Strategy are defined on the basis of the needs of A2A own employees, ideas for improvement and market trends, with the ultimate aim of improving the People Journey at A2A. Each action to be implemented is supported and accompanied by measurable objectives and related targets until 2035. Each KPI has a specific calculation methodology, in order to make its measurement objective and uniform over time. The measurability of results over time is also functional for dedicated reporting and monitoring activities with the ultimate aim of analysing trends and performance. The objectives and related actions have a perimeter of applicability consisting of the entire Group, i.e. the staff structures of the subsidiaries, and cover a time period consistent with that of the Strategic Plan, with the objective of elevating the People Strategy to an enabling factor for the grounding of the Plan and the achievement of the Group’s strategic objectives. It is also added that the rolling monitoring of the objectives set through dedicated KPIs is complemented by any other data sources, constructed ad hoc to gather the views of employees on the effects and effectiveness of the actions grounded (e.g. focus groups, surveys, etc.) Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 277 in every sphere and phase of their lives. The initiative is completed with the possibility of periodic webinars dedicated to the topic of Psychological Well-being. In addition, the collaboration with LILT Milan Monza and Brianza continued, with which the Group organized two initiatives: a webinar aimed at raising awareness of the importance of primary prevention as a useful tool to fight the onset of oncological diseases and promote healthy lifestyles. In addition, an awareness-raising campaign on gambling addiction was launched as part of the ‘Fighting Addiction’ cycle. [40b] New Ways of Working: with the constant aim of improving the well-being of employees, more and more flexibility tools are being developed to better reconcile work-life balance and facilitate the use of tools and correct habits to be adopted. Following a listening session, an improvement path was constructed, which led, as of 1 June 2023, to the updating of the maximum smart working percentage quotas for almost 1,400 people. In 2024, employees worked 17.5% of the total hours worked remotely. In 2024, Guidelines for Sustainable Collaboration in a Life Company were defined, structured in three macro-areas: effective online meetings, digital sustainability, HSEQ and security. Finally, the Group is embarking on an AI strategy to centrally govern the application of AI-based technologies throughout the company, with the aim of promoting them as an ally, an everyday technology to support our activities. Health: also for 2024 for people in the Energy Area the Health Care system is available and operational. The coverage has been designed to provide an immediate and concrete response to Group employees and their families, offering supplementary benefits beyond the National Healthcare Service. In its fifth year now, the initiative has involved some 7,000 member employees and their families. • definition of specific guidelines for selection interviews, with the aim of making the process increasingly transparent and inclusive and also being an important Employer Branding vehicle. In addition, a series of initiatives were implemented to harmonize and develop recreational and cultural services, and important activities were carried out to redesign and update the services provided by the Recreational Clubs. In addition, a series of macro measures were carried out to improve the work-life balance and well-being of employees, specifically: In the family sphere: among the various measures aimed at supporting families, in 2024 A2A further strengthened its welfare plans for the benefit of its people with the “A2A Life Caring” project, as described in the S1-2 disclosure requirement. To encourage the spread of a new approach to the issue of work- life balance, without precluding professional growth, A2A has defined awareness paths aimed at management and new parents, which are in addition to the internal dissemination activities already underway on fertility and procreation, on the medical-psychological implications in maternity/paternity paths and on the importance of making informed choices. With this initiative, the Group promotes a new vision of active social commitment with the aim of contributing concretely to the well-being of people and the sustainable growth of the country, also by combating the ‘demographic winter’. Well-being: during 2024, the Psychological Counselling service was consolidated, an initiative designed to offer Group members the support they need to take care of themselves and their well-being, face moments of difficulty or change, gain awareness of experiences and emotions and enhance resources and strengths, 278 A2A Report on Operations 2024 Sustainability Statement • defined the criteria for the construction and redevelopment of bicycle parking areas, providing site contact persons with indications for the design of parking areas to enable people to park their bicycles safely and quietly, even if they are of significant value (e.g. electric bikes); • support for the initiative BMBS Bici Marcata Bici Salvata, promoted by the associations Fiab Melegnano L’aBICI (project leader association), WWF Sud Milano e Martesana and Ripartiamo. The project proposes a practice to counter the phenomenon of bicycle theft, which consists of ‘marking’ the bike with a unique identification code, producing a ‘Bike Booklet’ that is handed over to the owner and recording, on a special database shared with the police, the bike, its main characteristics and the name of its owner. The associations organized two event days dedicated to punching at the A2A offices in Milan - Signora and Brescia - Lamarmora. The initiative was enthusiastically received and more than 30 bicycles were punched. Welfare: in 2024, the Group, in cooperation with the trade unions, signed an important agreement to increase the Solidarity Fund contribution that employees can access, in order to have a useful subsidy to cope with serious and/or exceptional health situations. Furthermore, the possibility of converting the Performance Bonus into a Welfare Credit has also been confirmed for 2024. In continuation with previous years, the Group offered an additional share on top of the amount converted and spent. Table 102 Action Unit of measurement CapEx* 2024 OpEx* 2024 Future CapEx* (by 2035) Future OpEx* (by 2035) Description of the future objective to be achieved (if defined/available) Parenting Project \- A2A Life Caring € \- 3,800,000 \- 113,000,000 Project aimed at involving employees with a package of measures to support parenthood by covering an ever-increasing population Contribution for Supplementary Health Care € \- 7,580,000 \- 102,000,000 The contribution is aimed at supporting all employees, full time and part time, for supplementary health care. It includes both Insieme Salute (Energy Area) and FASDA (Environment Area). The share relating to Managers is also considered. *These amounts are included under the item of operating costs in the Company’s financial statements Mobility: in May 2024, the Group’s Sustainable Mobility Profile was launched: a new tool, developed in-house, that allows people to calculate the environmental footprint of their home-work journeys and helps them reduce it thanks to personalized suggestions and facilities, proposed on the basis of the routes and travel habits indicated by people in the sustainable mobility profile, which can be updated continuously by accessing the company’s tools. For years, A2A has had dedicated agreements in place in collaboration with public mobility companies in the cities where it operates to allow the annual season ticket to be paid in instalments in the pay packet and to which the A2A Group also contributes an amount equal to 15% of the price charged. Also in 2024, further initiatives were realized including: • the extension of the corporate e-bike sharing service: electric bicycles provided by Unicorn Mobility were made available free of charge. A2A monitors the effectiveness of the project through a dedicated dashboard, where the relative CO 2 emission savings can be measured; Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 279 The targets set in the Sustainability Plan in relation to this issue are: Table 103 People Innovation Action KPIs KPIs detail 2024 2027 2030 2035 Welfare, Diversity and equal opportunities Develop innovative welfare policies, also in relation to the promotion of gender equality, and enhance skills through a generational bridge that allows the transfer of knowledge and experience between the junior and senior population Gender Balance BoD Calculate the companies that meet the criterion of 1/3 of female members considering only the members of the A2A Group. Excludes foundations, energy banks, companies with AU, companies in liquidation. In the calculation, consider all companies in the perimeter at 12/31 of year n, including new companies that enter the Group’s perimeter after 12/31 of year n only if they have a 100% participation. Those that do not have a 100% participation do not enter the analysis in year n+1 but in year n+2 (even if the corporate composition does not change) 67% 76% 96% 100% Health and Safety Consolidate the training and prevention plan to reduce injuries and develop new initiatives for worker health and safety % accesses to health promotion initiatives The number of accesses to individual company initiatives is considered and not the number of people who access them 100% 92% 100% 100% Injury Frequency Index (IF) with gate on Severity Index (IG) calculated taking into account only the first prognoses (value in brackets) If=(n°professional accidents with first prognosis >=1day/hh worked)*1,000,000 15.9 (0.47) 14.32 (0.25) 12.28 (0.25) 9.91 (0.20) Equal treatment and opportunities for all Actions to mitigate negative impacts related to equal treatment and opportunities for all impacted the following areas: Digital and innovative skills development In order to increase and consolidate IT and digital skills within the corporate population, the Group is committed to setting up dedicated training programs: such as the Copilot training course already mentioned within the S1-1 disclosure requirement. In addition, actions were carried out to mitigate the negative impacts on the own workforce resulting from the transition to a greener and climate-neutral economy during 2024\. In order to concretely support the plan objectives, as described in the S1-1 disclosure requirement, in 2024, the first upskilling training course dedicated to people working in the hydroelectric cores and thermoelectric plants and to those working at the A2A Energia Contact Centre was launched and the new Digital Empowerment program dedicated to all A2A managers. Concerning actions with the intention of generating positive impacts, these focused on: Schools Offer to high school students of the Path for Transversal Skills and Orientation (PCTO) in digital version, which provides 40 hours of e-learning on the modules Energy, Circular Economy, Innovation and Work Orientation with concluding project work and possibility to apply for job and internship positions open- at the A2A Group. Talent acquisition and Inclusiveness Started a training course for managers on selection interviewing, to provide the tools to conduct useful and inclusive interviews for candidates. As of February 2024, advertisements will be published both externally and internally (in the employee portal) at the same time; both modes of application will be evaluated equally, 280 A2A Report on Operations 2024 Sustainability Statement the Italian language, with the opportunity to integrate more easily into the working and non- working context. • Learning Lab: cycles of innovative webinars and experiential workshops aimed at the entire population concerned, to help identify the most functional practices and tools for managing processes and activities, in a hybrid dimension of work. The webinars were attended by about 800 participants and the in-depth workshops by 150 participants. The topics covered were: Digital Effectiveness and Management By Digital. The project ended in 2024 with the third and final exploration area: Managing Projects And Processes. • Smart Team Lab: experimental path addressed to 11 teams indicated by the BUs (about 150 people) and inspired by team coaching, which aims at spreading virtuous working practices to the entire organization and designed to be an enabling factor for organizational transformation, change management and team adaptation to new working methods and supporting tools. Professional development To support spreading the culture of development, training courses are periodically held on the key skills of the A2A model, both in terms of business growth and sustainability, and in terms of retention. In order to foster awareness of the competencies of the Life&Me model and the key conducts associated with it, launched in November 2023 and continued until September 2024, was the ‘Be a Life Manager’ training course. The course involved all Group managers in online meetings aimed at fostering a coaching-oriented and inclusive managerial style that recognizes and values the differences of each person. At the end of the program, an in-presence follow-up involving more than 620 managers in 21 in-presence classrooms spread between June and September 2024 was conducted. The Group mentoring project continued in 2024, consolidated with a significant expansion in the number of participants. During 2024, participants were paired as mentors with a mentee from previous editions in order to enhance the learning of each one. Today, more than 200 people are involved in the program. thus providing employees with even more opportunities for job rotation than before. Training activities In 2024, several initiatives saw people at the centre of the training courses. Among these: • Coursera: the training via the Coursera platform continued in 2024, reaching its third edition and providing a six-month course to train skills in Data Analysis and New Technologies. The path envisages the achievement of 3 objectives: experimenting with a new training solution in line with the self-development competence envisaged in the Life & Me model; responding to a training need present in A2A on topics related to new technologies; and finally introducing increasingly international training, through the involvement of world- famous bodies and universities. • Phishing Awareness Training: the training course involved about 7,300 Group personnel in the area of phishing awareness. The topics covered were divided into 3 cycles: e-mail security, password and data security, and threats and protection of work tools. • E-learning Excel and Powerpoint: training courses available for the entire company population, for which an initial test is provided to direct the user to the correct starting level and a final test to certify the skills trained, also by means of an Open badge to be published on social channels that replaces the learning certificate. • Problem Solving with new technologies: experiential training intervention on problem solving delivered on a pilot group of participants using augmented reality viewers and digital escape rooms. The proposal allowed people to experience their own limits and personal approach to a problem. Participants were involved in individual and group exercises, projective and immersive metaphorically reinterpreted from a professional perspective with the aim of restoring vision and awareness with respect to the subject matter of the course. • Italian language training for foreigners: the aim of the course was to give 21 people of 16 different nationalities the opportunity to approach or deepen their knowledge of Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 281 activities shared between the person and the manager, which can be updated periodically. In the subsequent evaluation phase, all participants work on a self-assessment step aimed at stimulating awareness and discussions with managers, as well as the possibility of involving one or more additional assessors beyond direct managers in order to gather additional points of view and enrich the feedback in the manager- person relationship. A2A has a Performance Management process that involves the entire population of middle managers and white collars in the Group, altogether more than 6,000 people. The process involves an overall assessment of the individual contribution and one of the conducts implemented with respect to the key skills of the A2A new Life&Me skills model. The first stage of the process involves defining one’s individual contribution through a description of one’s 282 A2A Report on Operations 2024 Sustainability Statement The targets set for this topic are: Table 104 People Innovation Action KPIs KPIs detail 2024 2027 2030 2035 MbO and Performance Management Add sustainability goals to the MbO sheets (correlation between Management remuneration and Sustainability KPIs Employees involved in a performance management process involving the assignment of objectives Number of employees with journey (including MBO and executive cards) / total number of employees 51% 80% 100% 100% Training Implement training courses aimed at enhancing and upgrading skills and professional development (including on issues such as sustainability, anti- corruption, human rights) Reskilling and upskilling of thermoelectric power plant employees Number of employees who have attended at least one course in the field of “Role training” or “digital campaigns” in the last three years / Total in the workforce excluding those who have ceased (only heating systems, selected by workplace) of the reference year 89% 69% 81% 100% Digital employee reskilling and upskilling Number of employees trained in the “IT or digital” or “digital campaigns” category / Total workforce excluding terminated employees (all companies in scope) - annual 53% 42% 51% 66% Organization Wellness Implementation of the best company organization systems for the effective development of all work processes Digitalization of regulatory documents Number of digitized regulatory documents out of the total number of regulatory documents in force as of January 1, 2025 31% 54% 78% 100% Adoption APP A2A Life Number of devices that have logged in for the first time out of the total number of employees (excluding internships and temporary placements) 77% 81% 85% 90% Welfare, diversity and equal opportunities Develop innovative welfare policies, also in connection with the promotion of gender equality, and optimize competences through a generational bridge that allows for the transfer of knowledge and experience between the junior and senior populations Women in positions of responsibility (% of total managers) Ratio of female managers to total managers 28% 30% 35% 40% Gender Pay Gap The indicator measures the distance between the average percentage deviation of expected and actual wages between men and women through a statistical regression method 0.69% < 1% < 1% < 1% Women in succession plans (% of total) Women in succession planning / total candidates on succession planning 27% 27% 30% 35% Direct hires Number of employees hired (managerial and non- managerial employees) 1,636 718 628 629 Women among the Group’s new hires (excluding blue collar workers) % Ratio between the total number of women hired and the total number of Group hires. Workers, internships and temporary workers are excluded, while those hired on a fixed-term basis are included. The database includes any terminations during the year) 47% 47% 50% 50% Employees with disabilities involved in specific support/ inclusion projects (% of total employees Protected categories) Ratio between disabled workers involved in inclusion projects and total disabled workers in the workforce 76% 85% 100% 100% Hours worked in remote working Number of hours worked remotely / total hours worked 14.70% 15.70% 20.60% 22.70% Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 283 For issues relating to diversity and inclusion, the coordination of corrective initiatives is managed directly by the Diversity, Equity & Inclusion structure, which, also with the support of the Inclusion Team (for more information see disclosure requirement S1-1), defines and implements initiatives aimed at creating an increasingly fair and inclusive working environment. All human resources involved and dedicated to the management of positive and negative impacts and their monitoring are supported by ad hoc information tools (e.g. whistleblowing channel, e-learning platforms, reporting and data analysis systems, etc.) The allocation of financial resources for the management of negative impacts is distributed among the various departments involved and aims to cover the implementation of actions and related technologies. S1-6 Characteristics of the undertaking’s employees [50e] A2A people are those who live the Life Company every day, directing daily choices towards the achievement of sustainability goals. Taking care of people’s quality of life is a great responsibility. That is why the Group puts dialogue, well-being and attention first in managing its people: towards them, towards citizens, and above all, towards the environment. Because people are the value that creates a Life Company. Since 2022, the Life&Me skills model has been defining behaviours to be inspired by and put into practice in our daily work. The model is based on Three Pillars - Business, People and Relationships - and focuses on the concept of sustainability as a synthesis of all the behaviours. As at 31 December 2024, there were 14,777 people employed by the A2A Group (+5.87% compared to 31 December 2023), of whom 21% were women. The figure includes 136 resources of Duereti, a company consolidated in the Group since 31 December 2024. Job stability remains a prerogative of the Group: 97.7% of employees have a permanent contract. [50d] Employee figures refer to headcount at the end of the reporting period (31/12/2024). The average figure refers to average headcount (part-time and full-time) over the entire reporting period. It should be noted that there are no variable-hour employees. [38d] The monitoring of the effects of the initiatives introduced is ensured through various instruments made available to the Group itself: • satisfaction surveys (e.g. following the use of training courses, at the end of the selection process, etc.); • exit interview to intercept the exit motivations of Group employees and identify new retention levers; • engagement survey (for more details, see disclosure requirement S1-2); • quarterly reporting tools containing a selection of HR KPIs with the aim of highlighting key trends; • plenary meetings to share and compare the objectives of the initiatives and the expected and actual results. The monitoring and control phase of the effects aims to assess the direction and consequences of the invested resources in order to consider possible extensions, corrections or reinforcements. [41] Whatever actions or initiatives are put in place to implement the strategy, the Group shall ensure that its practices do not cause or contribute to significant negative impacts on the workforce by safeguarding workers’ rights, preventing risks and ensuring welfare and safety. In order to monitor the well-being of employees, the Group uses engagement tools and feedback requests, change management and change coaching plans, and internal communication techniques for continuous information alignment. [43, AR48] The Group places high priority on managing impacts, ensuring that resources are sufficient and appropriately distributed to address issues and promote a safe, inclusive and sustainable working environment. Through coordination between different company functions and the use of advanced technologies, the company is able to constantly monitor results and ensure effective corrective actions. For the management of socially relevant impacts, the specific allocation of resources depends on the type of potential or actual impact. Each impact and related corrective action in mitigation is associated with one or more HR functions, consisting of professionals with specific expertise in managing the impact and grounding the initiative. 284 A2A Report on Operations 2024 Sustainability Statement [50a] Table 105 2024 2023 Characteristic of company employees - number of employees per gender u.m. Women Men Total Women Men Total Number of employees (number of persons), at the end of the period n 3,116 11,661 14,777* 3,217 10,741 13,958 Breakdown of employees by gender at the end of the period % 21 78 100 23.05 76.95 100 * [50f] Please refer to the total number of employees in the Consolidated Notes, pharagraph 28. [50d] Table 106 2024 2023 Characteristics of company employees - number of employees by gender and country (at the end of the period) u.m. Women Men Total Women Men Total Italy n 3,115 11,656 14,771 3,215 10,737 13,952 Belgium n 1 2 3 2 1 3 England n - 3 3 \- 3 3 Total n 3,116 11,661 14,777 3,217 10,741 13,958 [50b] Table 107 2024 2023 Characteristics of company employees - number of employees by contract type and gender, at the end of the period u.m. Women Men Total Women Men Total Number of permanent employees (50bi) n 3,053 11,383 14,436 2,789 10,784 13,573 Number of fixed-term employees (50bii) n 63 278 341 65 320 385 Number of variable-hour employees (50biii) n - - - - - - Total n 3,116 11,661 14,777 2,854 11,104 13,958 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 285 [51] Table 108 2024 Total number of employees by region, at the end of the period u.m. Women Men Total Abruzzo n 6 38 44 Basilicata n - - - Calabria n 6 142 148 Campania n 20 208 228 Emilia-Romagna n 10 70 80 Friuli-Venezia Giulia n 6 96 102 Lazio n 7 12 19 Liguria n 24 208 232 Lombardy n 2,988 10,484 13,472 Marche n - - - Molise n - - - Piedmont n 31 125 156 Puglia n 4 79 83 Sardinia n - 3 3 Sicily n 4 149 153 Tuscany n - - - Trentino-Alto Adige n 3 13 16 Umbria n - - - Valle d’Aosta n - 27 27 Veneto n 6 2 8 International n 1 5 6 Total Italy n 3,115 11,656 14,771 Total n 3,116 11,661 14,777 2024 Total number of permanent employees by region and gender, at the end of the period u.m. Women Men Total Abruzzo n 6 38 44 Basilicata n - - - Calabria n 6 142 148 Campania n 20 202 222 Emilia-Romagna n 10 69 79 Friuli Venezia Giulia n 6 96 102 Lazio n 7 12 19 Liguria n 23 200 223 Lombardy n 2,926 10,224 13,150 Marche n - - - Molise n - - - Piedmont n 31 125 156 Puglia n 4 79 83 Sardinia n - 3 3 Sicily n 4 149 153 Tuscany n - - - Trentino-Alto Adige n 3 13 16 Umbria n - - - Valle d’Aosta n - 25 25 Veneto n 6 2 8 International n 1 4 5 Total Italy n 3,046 11,249 14,295 Total n 3,053 11,383 14,436 286 A2A Report on Operations 2024 Sustainability Statement 2024 Total number of fixed-term employees by region and gender, at the end of the period u.m. Women Men Total Abruzzo n - - - Basilicata n - - - Calabria n - - - Campania n - 6 6 Emilia-Romagna n - 1 1 Friuli Venezia Giulia n - - - Lazio n - - - Liguria n 1 8 9 Lombardy n 62 260 322 Marche n - - - Molise n - - - Piedmont n - - - Puglia n - - - Sardinia n - - - Sicily n - - - Tuscany n - - - Trentino-Alto Adige n - - - Umbria n - - - Valle d’Aosta n - - - Veneto n - 2 2 International n - 1 1 Total n 63 278 341 [52b] Table 109 2024 2023 Characteristics of company employees - number of full-time and part- time employees, at the end of the period u.m. Women Men Total Women Men Total Number of full-time employees (52a) n 2,810 11,625 14,435 2,546 11,070 13,616 Number of part-time employees (52b) n 306 36 342 308 34 342 Total n 3,116 11,661 14,777 2,854 11,104 13,958 [50c] Table 110 2024 2023 Employee turnover u.m. Women Men Total Women Men Total Number of employees who left the company n 169 818 987 167 1,089 1,256 Total number of employees n 3,116 11,661 14,777 3,217 10,741 13,958 Employee turnover rate 1 % 5.42 7.0 1 6.68 5.19 10.14 9 1\. The employee turnover rate was calculated as the ratio between the number of employees (by gender and total) who left the company and the number of employees present at 31.12 (by gender and total). Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 287 [50f] The growth in the average number of employees in 2024 compared to the previous year led to a proportional increase in the Group’s personnel costs. The further increase in labour costs is mainly due to the increases in minimum wage rates recognized by contractual renewals and wage policy interventions. Staff costs 2024 also reflect the effect of some new initiatives in the Welfare area, for which the Group has decided on a significant economic investment; in particular, they include: • A2A Life Caring: in the first year of experimentation, around 2,700 parents in the Group received an average contribution of 1,300 euro; • Recreational Clubs: extension of the energy sector’s Single Club to all sites/companies in the scope and increase of the contribution for participation of employees’ children in summer camps, for an average contribution per employee in the energy sector of 265 euro; • Supplementary Health Care: increase in the unit contribution to the Supplementary Fund of the Energy area, giving everyone a policy with an annual value of 635 euro per employee, and increase in the unit contribution of the Environment area, to an annual value of 338 euro per employee. S1-7 Characteristics of non-employees in the undertaking’s own workforce [55a] Table 111 2024 2023 Characteristics of non-employees in the company workforce by gender u.m. Women Men Total Women Men Total Total number of non-employees n 89 172 261 82 168 250 [55b, 55bi] The Group includes among its non-employee workers, workers with temporary, internship and self-employed contracts, as well as so-called atypical contracts. The metrics for these resources are expressed in headcount as at 31/12/2024. [AR61] With regard to both employees and non-employees, the A2A Group adopts a uniform approach that is consistent with its principles, i.e., inclusive and responsible employment, undertaking to ensure that all workers, regardless of their type of contract, are treated fairly, respecting their rights and promoting their well-being (e.g., clear and transparent contracts, recognition of fundamental rights, fairness, responsible agency selection, etc.). 288 A2A Report on Operations 2024 Sustainability Statement S1-8 Collective bargaining coverage and social dialogue [60a, 60b] The relations of all employees of the A2A Group (100%) are covered by collective bargaining. [60c] Table 112 2024 Employees covered by collective labor agreements u.m. Number of employees covered by collective labor agreements Total number of employees by number of people (from S1-6) Percentage of the total number of employees covered by collective agreements (60c) (%) Abruzzo n 44 44 100 Basilicata n - - - Calabria n 148 148 100 Campania n 228 228 100 Emilia-Romagna n 80 80 100 Friuli Venezia Giulia n 102 102 100 Lazio n 19 19 100 Liguria n 232 232 100 Lombardy n 13,472 13,472 100 Marche n - - - Molise n - - - Piedmont n 156 156 100 Puglia n 83 83 100 Sardinia n 3 3 100 Sicily n 153 153 100 Tuscany n - - - Trentino-Alto Adige n 16 16 100 Umbria n - - - Valle d’Aosta n 27 27 100 Veneto n 8 8 100 International* n 6 6 100 Total n 14,777 14,777 100 * Please note that 100% of employees outside the EEA are covered by collective bargaining. [63 a, 63b] At Group level, the number of workers covered under the Unitary Trade Union Representation model is 14,514, covering 99.13% of the total (not including Duereti). Whereas, there are currently no agreements with their employees for representation by an EWC, SE or SCE committee. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 289 S1-9 Diversity Metrics [66a] Table 113 2024 2023 Employees at senior management level by gender u.m. Women Men Total Women Men Total Number of employees by number of people at senior management level n 29 75 104 25 78 103 Gender distribution of employees at senior management level % 2 7.8 8 72.12 100 24.27 75.73 100 [AR71] The A2A Group considers the managers in charge of first- and second-level organizational structures, who represent the top figures in the subsidiaries and staff departments, to be part of top management. [66b] Table 114 2024 2023 Age distribution of employees u.m. Women Men Total Women Men Total Number of employees under 30 [66b] n 403 1143 1,546 418 1,271 1,689 Number of employees aged 30 - 50 [66b] n 1,673 5,475 7,1 4 8 1,563 5,312 6,875 Number of employees above 50 [66b] n 1,040 5,043 6,083 873 4,521 5,394 Total number of employees n 3,116 11,661 14,777 2,854 11,104 13,958 Total number of employees (from S1-6) n 3,116 11,661 14,777 2,854 11,104 13,958 Percentage of employees under 30 [66b] % 12.93 9.80 10.46 14.65 11.45 12.10 Percentage of employees aged between 30 and 50 [66b] % 53.69 46.95 48.37 54.77 4 7. 8 4 49.25 Percentage of employees over 50 [66b] % 33.38 43.25 41.17 30.59 40.72 38.64 290 A2A Report on Operations 2024 Sustainability Statement a) illness; b) unemployment; c) accident at work and acquired disability; d) parental leave; e) retirement. Italian law provides for measures for all the aforementioned cases, which are regularly applied by the Group. In addition, at company level, through the “A2A Life Caring” trade union agreement, as described in the S1-2 disclosure requirement, a month of parental leave was introduced in addition to the legal provisions, which can be taken by both mothers and fathers, paid at 100%. The employee also has the choice of whether to use the additional month or request its monetization. Second-level company bargaining also made it even more favourable for employees to join supplementary pension schemes for retirement purposes, by providing additional incentives It should be noted that the AEB Group is expected to sign agreements during 2025 to encourage membership of supplementary pension schemes for the category, based on what is already in place in the A2A Group S1-10 Adequate wages [69] The A2A Group sets its remuneration policy with full respect for internal fairness and external competitiveness. In the definition of interventions, it scrupulously complies with Italian law and the relevant national collective agreements, excluding any kind of discrimination. The remuneration policies and processes focus on acknowledging and optimizing the commitment, constant achievement of results, skills and behaviours of employees in line with the Group’s managerial model and with external benchmarks. S1-11 Social protection [74a, 74b, 74c, 74d, 74e] All Group employees are covered by social protection against loss of income due to any of the following events: S1-12 Persons with disabilities [79, 80] Table 115 2024 2023 Employees with disabilities by gender u.m. Women Men Total Women Men Total Number of employees with disabilities n 146 370 516 126 363 489 Total number of employees by number of people (from S1-6) n 3,116 11,661 14,777 2,854 11,104 13,958 Percentage of persons with disabilities (80) % 4.69 3.17 3.49 4.41 3.27 3.50 [AR76] Disabled persons under L.68/99 are persons with a disabling condition of a physical, psychic, intellectual or sensory nature recognized by a special medical commission (e.g.: persons with civil invalidity of more than 45%, persons with labour invalidity of more than 33%, blind and deaf persons, persons with war invalidity, civil war invalidity and invalidity for reasons of service). On the other hand, persons belonging to certain special categories who can access the jobs that companies with more than 50 employees are obliged to reserve (e.g. orphans and surviving spouses of persons who have died as a result of work, war or service-related causes or as a result of the aggravation of the disability suffered as a result of such causes; repatriated Italian refugees; victims of terrorism, organized crime and duty; witnesses to justice, etc.) are considered as protected categories pursuant to Article 18 of Law 68/99. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 291 S1-13 Training and skills development metrics [83a] With respect to training and skills development, the detailed metrics below concern the number and percentage of Group employees who participated in regular performance and career development reviews and the average number of training hours by employee and gender. Table 116 2024 2023 Training and skills development indicators by gender u.m. Women Men Total Women Men Total Employees who participated in periodic performance and career development reviews n 2,559 4,751 7,310 1,836 3,806 5,642 Percentage of employees who participated in periodic performance and career development reviews [83a] % 82.28 41.20 49.93 5 7.07 35.43 40.42 [83b] Table 117 2024 2023 Average number of hours of training by gender u.m. Women Men Total Women Men Total Total number of training hours offered and completed by employees h 122,122.17 345,033.75 4 6 7,1 5 5.9 2 81,857.40 264,861.34 346,718.74 Average number of hours of training by employee [83b] h 39.27 29.92 31.91 25.45 24.66 24.84 [84] Table 118 2024 2023 Average number of training hours by employee category u.m. Total number of training hours offered and completed by employees Average number of hours of training by employee Total number of training hours offered and completed by employees Average number of hours of training by employee Managers h 10,515 51.29 7, 2 8 7 36.62 Middle Managers h 53,934 55.43 39,612 43.24 White-collar workers h 275,836 40.85 199,933 31.44 Blue-collar workers h 126,870 18.90 99,888 15.41 Total h 4 67,1 5 5 31.91 346,720 24.84 292 A2A Report on Operations 2024 Sustainability Statement [84] Table 119 2024 Training and skills development indicators by employee category u.m. Employees who participated in periodic performance and career development reviews Percentage of employees who participated in periodic performance and career development reviews (%) Managers n 190 92.68 Middle Managers n 923 94.86 White-collar workers n 6,197 91.78 Blue-collar workers n - - Total n 7,310 49.93 S1-14 Health and safety metrics [88a, 90, AR81] Health and Safety Management Systems certified according to ISO 45001 cover 98% of employees and 96% of non-employees, all activities and all workplaces of the Group. The management system of the companies certified according to ISO 45001 was audited in its entirety by the certification body. Of workers, 100% are covered by health and safety management systems based on legal requirements and/or recognized standards or guidelines and have been subject to certification audit by an independent third party accredited by Accredia. Table 120 2024 Persons covered by the health and safety management system u.m. Employees Non-employees Total Persons covered by the health and safety management system n 14,286 251 14,537 Percentage of own workers covered by the company’s health and safety management system [88a] % 98 96 98 [88b] Table 121 2024 2023 Fatalities as a result of work-related injuries and work- related ill health u.m. Employees Non- employees Total Employees Non- employees Total Number of fatalities as a result of work-related injuries n 1 - 1 1 - 1 In 2024, there were 3 fatalities of value chain workers working at company sites. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 293 [88c] Table 122 2024 2023 Recordable occupational accidents u.m. Employees Employees Number of recordable occupational accidents n 381 405 Total number of hours worked n 23,850,806.57 24,009,091 Rate of recordable occupational accidents % 15.97 16.87 [88d] During 2024, 19 occupational disease complaints were registered by workers in force. Of these 14 are related to the musculoskeletal system, 4 to the respiratory system and 1 to the auditory system. Table 123 Number of recordable cases of work-related diseases u.m. 2024 Number of recordable cases of work-related diseases* [88d] n 19 * Please note that in 2023, 22 cases of occupational diseases were recorded in the Group among the current and previous workforce. [88e] Table 124 Days lost* due to occupational injuries, accidents and fatalities (employees) u.m. 2024 Number of days lost to work-related injuries and fatalities from work-related accidents, work-related ill health and fatalities from ill health [88e] n 12,759 * The number refers to calendar days lost through injury. Commuting accidents are excluded. [AR94] During 2024, 3 occupational disease complaints were registered by workers no longer in the workforce. Of these, 2 are related to the respiratory system and 1 to the musculoskeletal system. Table 125 Recordable cases of work-related diseases detected among the former workforce u.m. 2024 Number of recordable cases of work-related diseases detected among the former workforce n 3 294 A2A Report on Operations 2024 Sustainability Statement S1-15 Work-life balance metrics [93a] [93b] Table 126 2024 2023 Employees who took family leave u.m. Women Men Total Women Men Total Employees who took family leave n 870 2,356 3,226 - - - Employees entitled to take family-related leave n 3,110 11,531 14,641 2,854 11,104 13,958 Percentage of employees who took family-related leave [93b] % 27. 97 20.43 22.03 - - - [94] All A2A Group employees are entitled to leave for family reasons by virtue of the provisions of the law, the national collective agreements applied, and supplementary company agreements that provide for more favourable leave arrangements. S1-16 Remuneration metrics (pay gap and total remuneration) [97a] Table 127 Gender pay gap 1 u.m. 2024 Average gross hourly remuneration of female employees € 20.58 Average gross hourly remuneration of male employees € 18.88 Gender pay gap [97a] % (9) 1\. The calculation methodology includes: a) fixed remuneration over 12 months considering full-time working hours (including DG) b) number of average annual working hours by qualification c) gross annual remuneration on an hourly basis is calculated as: (Average gross hourly remuneration of male employees - Average gross hourly remuneration of female employees)/ Average gross hourly remuneration of male employees * 100 [97b] Table 128 Total annual remuneration ratio* u.m. 2024 Total annual remuneration of the person with the highest salary € 836,162.56 Median annual total remuneration (excluding the person with the highest salary) € 39,467 Ratio of annual total remuneration of the person with the highest salary to the median annual total remuneration [97b] 21.19 * The calculation methodology includes: a) the social security taxable amount of CEO + GM b) the median social security taxable income for the remaining population over 12 months considering full-time working hours c) Ratio of annual total remuneration of the person with the highest salary to the median annual total remuneration is (as per AR 101c): Total annual remuneration of the person with the highest salary / Median annual total remuneration (excluding the person with the highest salary) Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 295 [98] Table 129 2024 Gender pay gap by employee category (ordinary basic wage) u.m. Average gross hourly wage of female workers Average gross hourly wage of male workers Gender pay gap (%) Managers € 64.35 65.31 1.47 Middle Managers € 33.26 35.27 5.70 White-collar workers € 19.00 20.63 7.9 0 Blue-collar workers € 13.67 14.83 7. 8 2 S1-17 Incidents, complaints and severe human rights impacts [103a, 103b, 103c] Table 130 2024 Incidents, complaints and severe human rights impacts* u.m. Number Fines (€) [103c] Incidents of discrimination [103a] n 3 - Complaints submitted through the channels provided for the company’s own workers to raise concerns [103b] n 10 - Total n 13 - * Please note that in 2023, the whistleblowing channel received no cases/incidents/reports of discrimination/conflicts with reference to working personnel regarding respect for diversity and/or minorities. [104a, 104b] In order to quantify the number of complaints of discrimination and serious human rights violations submitted through its own and official channels made available to employees, data were collected through the following sources: Whistleblowing channel; Diversity, Equity and Inclusion channel; SA8000 channel for certified companies. It should be noted that the number of reports pertaining to 2024 does not concern cases of proven serious human rights violations. For the quantification of discriminatory acts, data was collected through the official channels mentioned above. It is confirmed that no complaints have been submitted to the national contact points for OECD multinational companies, regarding the A2A Group. No serious cases of human rights violations were reported. 296 A2A Report on Operations 2024 Sustainability Statement Table 131 Impacts: ESRS S2 Sustainability topic Impact Type [11c] Negative: systemic or related to individual incidents 1 [11d] 2 Positive: activity description Stage Time horizon Short Medium Long Working conditions Health and safety Occurrence of workplace accidents (e.g., fires and explosions), with consequent health and safety risks for workers in the value chain and violation of their rights as a result also of poor maintenance of plants and machinery Negative Actual Related to individual incidents EE, P, C, GN, R, I Working conditions Safe employment Working hours Social dialogue Freedom of association Collective bargaining Equal pay and opportunities for all Other work-related rights Child labour Forced labour Violation of human rights along the value chain, such as the right to freedom of association and collective bargaining, child labour, forced or compulsory labour Negative Potential Related to individual incidents EE, P 1\. The main negative impacts to which workers in the Group’s value chain are potentially subject mainly concern accidental events limited to the facilities where they operate. 2\. Since the A2A Group has not identified any material positive impacts on workers in the value chain, this data point is not reported. 5.3.2 ESRS S2 Workers in the value chain Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 297 Table 132 Risks: ESRS E2 Sustainability topic Risk [11e] Impact or dependence linked/ connected to the risk Stage Time horizon Short Medium Long Working conditions Health and safety Safety risk Potential repercussions for the Group’s image as a result of serious or very serious injuries involving internal and/or external personnel of third-party companies working at its premises and operating sites as well as visitors and third parties and/or any actual or alleged failures to comply with safety regulations. The scenario also considers the risks to people’s well-being from weather and climate factors. Risk arising from impact OO Working conditions Health and safety A2A Ambiente engineering risk - Project quality management Potential economic-financial and reputational impacts for A2A Ambiente and the Group regarding possible failure in the process management of designing and building plants and investments to guarantee compliance with the timeframes and requirements defined explicitly (technical specifications, etc.) or implicitly (regulatory compliance, respect for intellectual property, etc.). - OO Working conditions Health and safety Health risk Potential reputational and economic impacts for the A2A Group as a result of any allegations of occupational diseases and/ or real or alleged non-compliance by the company in relation to health and health surveillance regulations, involving personnel working for the Group, in the event of media coverage. - OO 298 A2A Report on Operations 2024 Sustainability Statement Strategy S2 ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model [10a,b] The Group’s strategy is aimed at eliminating accidents in the workplace and combating the violation of the human rights of workers in the value chain, through the implementation of a series of initiatives aimed at minimising negative impacts and eliminating them where possible, while enhancing positive ones. The strategy and business model are continuously monitored in order to adapt them to any emerging and as yet unmanaged impacts, risks and opportunities. [11] The A2A Group has embarked on a journey to identify the main categories of workers in its value chain, in order to understand the extent of the impacts generated by its own operations and business relations, on the workers themselves. Currently, for the purposes of this document, all employees who have a direct relationship with the Group are considered as included in the scope. [11a, 12] The main types of workers in the value chain that could be significantly impacted by A2A’s own operations or the value chain can be categorised as follows 1 : i. workers working on the undertaking site but who are not part of own workforce, i.e., who are not self-employed workers or workers provided by third party undertakings primarily engaged in employment activities (covered through ESRS S1); ii. workers working for entities in the value chain upstream of the undertaking; iii. workers working for entities in the value chain downstream of the undertaking. The A2A Group has identified five value chains linked to its businesses, to which are added the procurement processes of raw materials such as fuel oil and coal (the latter used until 2023). The five value chains are: electricity, heat, natural gas, waste management and water management. The types of workers in the identified value chains are mainly workers of contractors carrying out work on the Group’s road construction sites and plants (electricity and natural gas value chain), on the water and district heating networks (water and heat management value chain) or involved in the management of the waste collection service (waste management value chain). These are types of “labour intensive” activities, carried out mainly on company sites or on behalf of the Group and which are subject to the greatest risks, together with disabled workers or workers falling within protected categories under Italian Law 68/99. Over the years, the A2A Group has worked to protect its employees and workers in the value chain: for example, the two management companies of the urban hygiene service, AMSA and Aprica, have been engaged in programmes to include workers from disadvantaged social backgrounds in their workforce and often rely on contractors carrying out similar activities for years. With regard to workers in the natural gas value chain, the Group currently has no visibility of upstream activities such as exploration and production, and midstream activities such as gathering, processing, liquefaction and regasification. Natural gas is bought on European financial markets similarly to the other commodities, and there is no direct business relationship with upstream players. [11b] The Group operates within the Italian national context, which is why there is no risk of child, forced or compulsory labour among workers in the value chain. With regard to the workers in the natural gas value chain, the Group is aware of the critical issues related to the working conditions of workers in companies in the fossil fuel extraction sector; purchasing them on the financial markets, as previously mentioned, we do not have business relations with these companies and have no direct and concrete knowledge of the workers’ conditions. As for the supply of fuel oil, it is purchased locally from a refining plant located near the Group’s thermoelectric plant. 1\. Note that the following categories are expressly listed in the disclosure requirement of ESRS S2.ESRS 2 SBM-3. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 299 [13] The risks identified by the Group, arising from impacts and dependencies in relation to its workers in the value chain, do not involve specific workers in the value chain but all workers in the value chain considered for the purposes of this standard and identified in this disclosure requirement. Impact, risk and opportunity management S2-1 Policies related to value chain workers [16] The management of material impacts, risks and opportunities related to workers in the value chain is regulated and addressed by the Human Rights Policy and the Responsible Procurement Policy. Human Rights Policy In addition to the ESRS S1-1 and G1-1 disclosure requirements, through the Human Rights Policy, the A2A Group reaffirms, promotes and undertakes to: • not use or support the use of any form of child labour, slavery, servitude, forced/compulsory labour or human trafficking, or any other form of exploitation; • guarantee equal opportunities, freedom of association and promote the development of every individual; • oppose the use of corporal punishment, mental or physical coercion or verbal abuse; • comply with applicable laws and industry standards on working hours and wages, ensuring that wages are sufficient to meet the basic needs of personnel; • establish and maintain adequate procedures to evaluate and select suppliers and subcontractors based on their commitments to social, human and labour rights and environmental responsibility; • not tolerate bribery in any manner or form in any jurisdiction, even if such activities are permitted, tolerated or not prosecuted. To this end, A2A envisages increasing engagement of all its strategic and critical suppliers, incentivising the implementation of a monitoring and continuous improvement plan and rewarding those who set challenging objectives in line with this Policy. [17, 17a, 17b, 17c] For details of the human rights commitments related to both employees and workers in the value chain, please see disclosure requirement ESRS S1-1. In addition, the Human Rights Policy clarifies that in order to minimise the risks of human rights violations in their supply chain, suppliers and external collaborators of A2A Group companies must meet certain minimum requirements and are subject to assessments, for example, aimed at checking compliance with labour legislation, including that relating to child labour and the health and safety conditions of workers. The A2A Group shall notify vendors and external associates of the content of the Human Rights Policy by making it available to the same on the institutional website. Responsible Procurement Policy [16] The Responsible Procurement Policy describes the vision and principles that guide the A2A Group in integrating sustainability criteria in supplier selection and assessment, promoting socially and environmentally responsible practices. In the context of managing impacts and risks related to workers in the value chain, the overall objectives of the Responsible Procurement Policy include the promotion of human rights and the protection of the health and safety of workers in the supply chain. [AR16] Like all other Group Policies, the Policy is published on the website and is available to all internal (employees) and external stakeholders (suppliers, value chain employees, investors, etc.). It has been translated into English in order to facilitate its understanding and dissemination. [AR12] During 2024, it was also revised to incorporate new ways of assessing the risk profile of suppliers. [AR15, 19] The Human Rights and Responsible Procurement Policy is committed to respecting, applying and promoting the principles of the Sustainable Development Goals and the UN Global Compact, as well as international 300 A2A Report on Operations 2024 Sustainability Statement S2-2 Processes for engaging with value chain workers about impacts [22] The A2A Group considers the demands and views of workers in the value chain to guide decisions and activities aimed at managing the main impacts to which workers are subjected. [22a, 22b] The engagement of workers in the value chain at the Multi-stakeholder Forums organised by the Group during the year. In the operational sphere, inspection visits to construction sites result in moments of engagement and discussion with contractors. In particular, the controls carried out during the inspection are reported and tracked by means of special checklists in which any anomalies are formalised and classified according to their severity. The results are analysed with the construction site personnel and, In the case of blocking or serious anomalies, the project manager and the customer are promptly informed in order to adopt the corrective actions required together with the contractors involved. In addition, the Group provides employees of third-party companies with training courses specific to the scope of the contract they are involved in. In particular, health and safety issues are the issues that are most addressed across the board. On the other hand, supplier representatives present in the various territories in which the Group operates are regularly invited to the Forums in order to gather their views on the Group’s activities and the main issues being addressed, especially in the ESG sphere. Supplier engagement occurs once a year per territory (as per the calendar defined for the Forums) and consists of a round table discussion during which stakeholders are invited to discuss various topics (for more information please see disclosure requirement ESRS 2 - SBM-2). The suppliers involved are local companies that have established business relations with the Group. [22c] Operationally, all activities related to Multi-stakeholder Forums are the responsibility of the corporate Sustainability Stakeholder Engagement structure within the Sustainability Development structure. standards, frameworks, conventions and charters such as those defined by the UNGC, GRI, ILO, ISO, OECD and UN. [18] Policies protecting workers in the value chain explicitly address human trafficking, forced or bonded labour and child labour. [AR15, 19] For more information on compliance with internationally recognised instruments relevant to the above-mentioned workers and on reporting any instances of non-compliance with the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work and the OECD Guidelines for Multinational Enterprises, please see disclosure requirement S1-1. [18] The company has also adopted a code of conduct for suppliers, called the ‘Integrity Pact’. All A2A Group suppliers and collaborators must sign this document and comply with strict standards on health and safety, the environment, human rights and business ethics, inspired by the above policies. The Integrity Pact enshrines respect for ethical principles and responsible conduct. Specifically, by signing this agreement, suppliers undertake to comply with all applicable rules and principles of the Group A2A Code of Ethics, among which are expressly mentioned: • fight against corruption and the infiltration of organized crime; • environmental protection and efficient use of energy sources; • occupational health and safety protection; • respect for workers’ and children’s rights; • freedom of association and collective bargaining; • protection of competition. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 301 ESG aspects, which is articulated in several stages. First, companies must provide supporting documents, such as policies, certificates and KPI reports, demonstrating the maturity of their sustainability management system. An international team of experts examines the documents provided and checks whether there is sufficient evidence to approve the companies’ claims. In addition, EcoVadis integrates thousands of external sources, such as NGOs, trade unions, international organisations and local authorities, to gather information on the assessed company. This monitoring is continuous, thereby making it possible to detect any violations and update the supplier’s sustainability rating. The due diligence carried out by EcoVadis supports A2A with respect to potential negative impacts on human rights and the environment through the determination of a score for each pillar of sustainability. Each indicator is assigned a score from 0 to 100, reflecting the supplier’s performance in the relative area. This evaluation system allows A2A to identify and correct any non-conformities, promoting continuous improvement in supplier performance. In summary, with its evidence-based assessment methodology and 360° monitoring, EcoVadis is able to provide accurate supplier due diligence based on recognised international sustainability standards (e.g. UNGC). [27b, 27d] At present, the A2A Group does not have communication channels specifically dedicated to workers in the value chain that offer the opportunity to communicate their concerns or needs and receive assistance in this regard. However, workers or collaborators of external companies that provide goods or services or carry out works in favour of A2A Group Companies, may, through a specific channel (known as the Whistleblowing system pursuant to Italian Legislative Decree 24/2023 implementing Directive (EU) 2019/1937 of the European Parliament and of the Council), to communicate, even anonymously, information concerning violations, even suspected violations, of regulatory provisions and principles enshrined in policies adopted by the Company. The aforementioned reporting channel is made available by the A2A Group through a special IT platform and guarantees the confidentiality of the identity of the whistleblowers, the others involved and the content of the reports. [22d] To date, the A2A Group has not signed any Global Framework Agreements or other agreements with global trade union federations related to respect for the human rights of workers in the value chain. It should be noted that most of the Group’s suppliers are based in Italy, with almost total coverage of workers with collective labour agreements (CCNL). [22e] As of 2024, there is no structured mechanism to track and evaluate the effectiveness of engagement with workers in the value chain. However, at the end of each Multi- stakeholder Forum the participants, including representatives of the Group’s suppliers, are asked to fill out a survey on their satisfaction with the initiative. Thanks to this tool, it is possible to deepen the perspective of each stakeholder category engaged and assess the effectiveness of that which was presented at the event: in particular, the average satisfaction score and the percentage of stakeholders taking part in the event who believe that these initiatives improve relations with A2A are measured. A concrete example of a positive result following the supplier listening and dialogue process carried out in 2023 was the Sustainable Supply Chain project, which was followed by the publication of Guidelines for SMEs in January 2024. The document guides companies in drafting their Code of Ethics, environmental, labour and human rights policies, offering tangible support in the creation of concrete and detailed documents (for more information please see disclosure requirement ESRS S3-4). [23] Currently, the A2A Group has not taken any specific measures to better understand the views of workers in the value chain. The Group is currently evaluating the possibility of developing engagement projects, in the future, aimed at workers in the value chain who fall under two types of workers (the disabled or those belonging to protected categories under Italian Law 68/99 and workers who perform ‘labour intensive’ activities on company sites or on behalf of the Group) who are more exposed to risks and dangers. S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns [27a] A2A is supported by the methodology of EcoVadis in supplier due diligence through a structured and rigorous process of assessing 302 A2A Report on Operations 2024 Sustainability Statement S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities The main action plans and resources allocated by the A2A Group during 2024 to manage impacts, risks and opportunities related to workers in the value chain are listed below. Ecovadis Rating The Group has implemented a structured supplier evaluation process using the EcoVadis methodology, which assesses labour practices and human rights as fundamental pillars. Suppliers are assigned a rating based on their environmental and social performance: relative to the score obtained, the Group activates specific actions in order to work with the supplier to act on the main areas of improvement. Suppliers are informed about the sustainability programme through continuous communication campaigns, and an ESG clause is included in contracts requiring suppliers to obtain their EcoVadis ESG score within six months of the contract’s awarding. Suppliers with an ESG score below 37/100 at the time of the evaluation are placed on an ESG watch list and will have to improve within 12 months. This evaluation mechanism aims to incentivise virtuous behaviour and care for workers throughout the supply chain. Suppliers are engaged on an individual basis, but the human rights assessment can be used as a credible proxy to gain insight into actual working conditions along the supply chain. The supplier qualification process includes the verification of company and financial data, technical and professional capabilities, environmental and safety requirements, and injury indices. In particular, a reputational audit of the supplier is carried out in some cases. When evidence of potential risk (including human rights impacts) is identified, A2A takes a structured approach to remediate them. For more information on the Whistleblowing system and the related control and monitoring processes, please see the disclosure requirement ESRS G1-1. [27c] In addition, the suppliers of A2A Group Companies are given notice, through the Responsible Procurement Policy (published on the A2A Group website) and the Code of Ethics (also published on the A2A Group website, and explicitly referred to in the Integrity Pact that all A2A Group suppliers are required to sign) of the possibility for all stakeholders to report, including anonymously, through the current reporting channels, any breach or suspected breach of the Policy and the Code of Ethics. [28, AR25] Finally, reference is made to what is stated within disclosure requirement G1-1, regarding: • the degree to which workers in the value chain are aware of the existence of the communication and reporting channel mentioned above; • the implementation of policies to protect persons using such options from retaliation; • the confidential treatment and protection of the data contained in the reports received; • the use of anonymous channels for workers in the value chain to raise concerns or needs. Metrics and Targets S2-4 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions [31a, 31b, 32a, 32d, 33a, 33b, 33c] Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 303 The supplier is put on a watchlist or blacklist depending on the severity of the evidence. The watchlist is used to monitor suppliers with financial, reputational, HSE (health, safety and environment), ESG or negative performance risks. If the evidence is serious, the supplier may be suspended or blacklisted, preventing it from participating in future tenders. This management system ensures that suppliers maintain high ethical and operational standards, protecting workers in the value chain and minimising risks for A2A. Table 133 Action Plan u.m. OpEx 2024 CapEx* 2024 Future OpEx Future CapEx Description of the future objective to be achieved (if defined/available) Ecovadis € 117,700 - 1,412,400 - The collaboration with Ecovadis has the aim of mapping all suppliers from a sustainability perspective, with two main objectives: sourcing from “sustainable” suppliers and creating a virtuous circle between companies, which are pushed to improve their ESG aspects. * These amounts are included in operating expenses in the Company’s Financial Statements. ISO 45001 Certification and on-site audits To strengthen the protection of workers along the entire value chain, A2A implements specific initiatives, including safety programmes for contractors and regular audits at construction sites. In addition, all Group sites have achieved ISO 45001 certification, which covers 98% of employees and extends safety requirements to contractors. SA8000 Certification The objective of SA8000 certification is to implement prevention and protection measures for the environment and to protect and guarantee the health and integrity of personnel, and to manage activities with respect for workers’ rights by drawing inspiration from national and international labour protection standards, conventions and resolutions of bodies such as the International Labour Organisation (ILO) and the United Nations (UN). It applies to all workers in the Group’s value chain and, in particular, to the employees of contractors working at A2A sites and construction sites. HSE for Procurement [32b, 35] Thanks to the ‘HSE for Procurement’ project launched in 2020, appropriate safeguards have been identified and implemented to ensure that activities are entrusted to and managed by contractors with HSE performance in line with Company standards, even for those activities with a high risk potential. The project identified the following mitigation measures: • identification of Merchandise Classes (MC) with HSE relevance; • definition of specific procedures for HSE-relevant purchases in normal, urgent and emergency situations; • HSE technical visa for RdA on HSE-relevant MCs; • drafting special contract conditions and inclusion of specific contract clauses on HSE issues (e.g. request and analysis of the DUVRI - Single Document for the Evaluation of Interference Risks and analysis of accident index trends); • definition of a list of safety documentation to be required from suppliers above and beyond what is defined by the applicable regulations to ensure HSE compliance; • minimum rating on supplier Injury Frequency Index to be added to the tender Vendor List; 304 A2A Report on Operations 2024 Sustainability Statement [36] No serious human rights problems and incidents have been reported in the value chain. [38] The A2A Group engages with various types of resources, both monetary and non- monetary, to prevent these impacts from occurring. In particular, the Procurement Excellence and Governance Department is responsible for promoting, planning and coordinating the implementation of all initiatives aimed at pursuing the operational excellence of procurement processes and ensuring the evolution of Vendor Management in line with the Group’s sustainability and risk management objectives. The Department is responsible for managing the supplier evaluation process managed through Ecovadis. [AR30] In order to mitigate the negative impacts identified, the Group requires all partners to sign the Code of Ethics and the Integrity Pact, in which international standards on respect for Human Rights are recalled. Failure to sign these documents makes it possible to begin the business relationship. In addition, the Group promotes various training and information initiatives for its suppliers in order to make them aware of sustainability issues and value alignment. [AR44] In terms of corporate departments involved, the HSEQ Departments of the Corporate Business Unit and all other Companies of the Group Companies are committed to ensuring a safe, healthy and suitable working environment for all employees, non-employees and workers in the value chain who perform tasks at Group sites. In addition, through its supplier qualification, vendor rating and ESG assessment processes via Ecovadis, the Procurement Department ensures that supplier employees do not suffer any material negative impacts. Finally, the Compliance Department provides whistleblowing channels for employees in the value chain to send in any reports in cases where negative impacts arise. • information flow to Procurement and procedure of activities to be implemented in the event of a serious incident/severe HSE non-compliance with watchlist/blacklist definition and provision of operational spot checks and/or regulatory/ process compliance audits; • tenders awarded on the basis of the economically most advantageous offer, with scoring based on quality scores with more weight than price scores offered, and definition of a minimum technical score for access; • administration of a Customer Satisfaction questionnaire to the business with HSE elements and scoring system; • definition of shared tools with suppliers that reward and/or raise awareness of HSE issues (e.g: Safety Pact, Safety Walk, HSE Awards, etc.); • HSE documentation management through the use of an IT application for document management/VITP; • specific awareness-raising campaign on basic safety behaviour in all plants of the Generation and Trading BU and in 8 plants of the Waste BU with the involvement of the contractor personnel present in the plant. [34a] Processes to manage risks related to workers in the value chain are fully integrated into the existing risk management process: within the ERM process, the material safety risk for workers is identified and mitigation actions are discussed and updated, the main ones being the adoption of a procedural body focused on the proper management of engineering activities, from project development to construction site management, and the adoption of an Organisation, Management and Control model pursuant to Italian Legislative Decree 231, which calls for internal controls adopted in order to prevent the attribution of organisational fault which, pursuant to Italian Legislative Decree 231/01, a company could incur. [34b] Since no material opportunities were identified in relation to the issue of workers in the value chain, no actions were planned or initiated in this regard. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 305 [41] The Group has set itself specific objectives aimed at increasingly integrating sustainability issues within the corporate culture of its suppliers. Table 134 People Innovation Action KPIs KPIs detail 2024 2027 2030 2035 Responsible Procurement Develop initiatives aiming to spread the culture of health and safety at work amongst contractors and other suppliers. Develop Green Procurement policies Incidence of sustainability criteria in the vendor rating process Weight of the Ecovadis score included in the supplier risk rating calculation algorithm 30% 30% 30% 30% Average ESG score on orders Average of the ESG score (scale 1-100) of suppliers weighted on order Procurement 63 54 60 70 Orders assigned to suppliers with D&I policies implemented Sum of order amounts assigned to vendors that have implemented D&I policies on total sum order amounts - 35% 42% 70% % of orders to Suppliers evaluated with ESG indicator (Infoprovider Ecovadis) Total amount of orders assigned to suppliers evaluated with Ecovadis / Total orders assigned. (Ecovadis assessed suppliers = published or in the process of being issued scorecards) 79% 78% 90% 90% Corrective actions taken following unsuccessful audits Weighted average of corrective actions taken out of the total number of inspections 97% 96% 97% 97% Inspections of road sites (number/year) Number of inspections carried out in the year of analysis 7,5 4 4 7,160 7, 4 4 0 7,780 In particular, the target for the average ESG score on Ecovadis for orders was set at 70 by 2035. Such an increase in score can be realised through a combination of autonomous initiatives from the supply base and synergistic projects in which the Group can become an active participant and ‘capacity builder’ vis-à-vis its suppliers. In addition, a specific target was defined concerning the percentage of orders awarded to suppliers with D&I Policies implemented. The targets, which intercept the Group’s material impacts, risks and opportunities, were developed in order to increase the sustainability awareness and performance of the Group’s suppliers and, in particular, to promote the inclusion of employees throughout the value chain and the enhancement of diversity, in line with the Life Company’s value principles [AR45a, AR45c]. These targets are updated annually as part of the Sustainability Plan, whose time horizon coincides with the Strategic Plan, and specifically defines short-term (2027), medium-term (2030) and long-term (2035) targets. [AR45b] [42a] Currently, the A2A Group does not have a mechanism for directly engaging workers in the value chain in order to set targets, define a monitoring system [42b] and establish improvement actions [42c]. 306 A2A Report on Operations 2024 Sustainability Statement Table 135 Impacts: ESRS S3 Sustainability topic Impact Type [9b] Negative: generalised / systemic, [9c] Positive: activity description Stage Time horizon Short Medium Long Communities’ economic, social and cultural rights Increased awareness of the community served in relation to energy and environmental issues by promoting information and training initiatives Positive Actual Educational projects, teaching tools and training courses for schools Involvement and communication of sustainability reporting content to Generation Z Contribution to the podcast News dal Pianeta Terra [News from Planet Earth], produced by LifeGate OO, EE, C Communities’ economic, social and cultural rights Contribution to the social development of the areas where the Group operates by creating professional and social inclusion opportunities Positive Actual AMSA’s ‘Multicultural Ambassadors’ Project Ecological worker induction and training pathway for refugees and non-EU nationals Responsible investments in the community Projects developed by Group Foundations OO Communities’ economic, social and cultural rights Loss of community cohesion due to the failure to listen to and involve communities in the Group’s projects Negative Potential Generalised OO Communities’ economic, social and cultural rights Land-related impacts Safety-related impacts Creation of conflicts and social inequality for the control of natural and material resources useful for plant construction Negative Potential Generalised EE, P, GN Communities’ economic, social and cultural rights Water and sanitation services Interruption of water supply service to communities following system failures or inefficiencies Negative Actual Generalised OO Communities’ economic, social and cultural rights Water and sanitation services Decline in the availability of water resources for agricultural activities as a consequence of its predominant use for hydroelectric plants Negative Actual Generalised OO, I Communities’ economic, social and cultural rights Land-related impacts Harm caused to the community by the visual impact of infrastructure construction and service provision Negative Actual Generalised OO, EE, P, GN, R, I 5.3.3 ESRS S3 Affected Communities Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 307 ESRS S3 Sustainability topic Impact Type [9b] Negative: generalised / systemic, [9c] Positive: activity description Stage Time horizon Short Medium Long Economic, social and cultural rights of communities Safety-related impacts Negative effects on the health and safety of people and communities due to inefficient management and a lack of and/ or inadequate control over the safety of infrastructure and services Negative Potential Generalised OO, EE, P, C, GN, R, I Communities’ economic, social and cultural rights Water and sanitation services Decline in local water quality following non-compliance with drinking water service requirements Negative Potential Systemic towards the communities served OO Communities’ economic, social and cultural rights Deterioration of community quality of life due to odour emissions caused by waste collection and treatment activities Negative Potential Generalised OO, R Table 136 Risks: ESRS S3 Sustainability topic Risk [9d] Impact or dependence linked/ connected to the risk Stage Time horizon Short Medium Long Communities’ economic, social and cultural rights Land-related impacts A2A Ambiente Risk - fire risk Potential impacts of a reputational and economic-financial nature for A2A Ambiente and the Group connected to the possible occurrence of fires affecting recovery plants, WTE plants and landfills, with repercussions for personnel and internal structures and the surrounding environment. - OO Communities’ economic, social and cultural rights Water and sanitation services Waste collection and cleaning service risk Potential reputational impacts for AMSA and the Group in relation to possible interruptions of waste collection and urban cleaning services lasting several days. - OO, R Communities’ economic, social and cultural rights Water and sanitation services WTE Silla 2 risk Potential impacts on the Group’s image, relations with local authorities and communities resulting from possible malfunctions of the plant that prevent the correct waste disposal cycle and the normal supply of heat to the district heating network. - OO 308 A2A Report on Operations 2024 Sustainability Statement ESRS S3 Sustainability topic Risk [9d] Impact or dependence linked/ connected to the risk Stage Time horizon Short Medium Long Communities’ economic, social and cultural rights Land-related impacts Waste BU risk related to the sensitivity of environmental activities Potential economic-financial impacts related to critical issues or limitations for the plants (waste-to-energy plants, recovery and disposal plants, including landfills) of the Waste BU, during (i) the periodic renewal or review of the AIA, (ii) the implementation of new expansion projects of certain plants/ sites, (iii) waste procurement activities or (iv) daily operations in the face of negative public opinion and perception of local communities of the business operated by the Company. - OO Communities’ economic, social and cultural rights Land-related impacts A2A Ambiente engineering risk - Project quality management Potential economic-financial and reputational impacts for A2A Ambiente and the Group regarding possible failure in the process management of designing and building plants and investments to guarantee compliance with the timeframes and requirements defined explicitly (technical specifications, etc.) or implicitly (regulatory compliance, respect for intellectual property, etc.). - OO Communities’ economic, social and cultural rights Water and sanitation services Water supply chain risks - A2A Ciclo Idrico The distribution of water for human consumption that does not respect the quality and quantity characteristics associated with drinking water distribution could have repercussions on people’s health as well as impacts of an economic nature due to the need to interrupt production activities, and impacts on the Group’s overall image in its relations with local authorities and communities. Risk arising from impact OO Communities’ economic, social and cultural rights Land-related impacts Corteolona and Giussago major accident risk Potential image repercussions for A2A Ambiente and the Group as a result of the occurrence of a major accident involving internal staff or the land. - OO Communities’ economic, social and cultural rights Safety-related impacts Unauthorised access risk - Group plants and offices Unauthorised access of third parties to the Group’s plants and offices, which could impede the conduct of activities, with potential impact on the safety of personnel, unauthorised third parties, the sites and their surroundings, as well as economic impacts resulting from the need to interrupt production activities. - OO Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 309 ESRS S3 Sustainability topic Risk [9d] Impact or dependence linked/ connected to the risk Stage Time horizon Short Medium Long Communities’ economic, social and cultural rights Safety-related impacts Operational Technology security risk Possible compliance/image impacts (‘National cybersecurity perimeter’ and ‘NIS Directive’) and operational impacts resulting from potential disruptions, business continuity and security problems of the production sites, networks and infrastructures of the Group’s companies as a result of issues affecting the OT systems and networks that are managed by the respective Business Units. - OO Communities’ economic, social and cultural rights Water and sanitation services Acerra disposal interruption risk Possible negative impacts in terms of relations with local authorities and communities and the Group’s overall image resulting from the potential interruption of the correct waste disposal cycle at the Acerra TU. - R Table 137 Opportunities: ESRS S3 Sustainability topic Opportunity [9d] Impact or dependence linked/ connected to the opportunity Stage Time horizon Short Medium Long Communities’ economic, social and cultural rights Land-related impacts Territory’s appreciation of companies that provide products and services with high quality standards - OO; Cross- cutting along the VC Scuola 310 A2A Report on Operations 2024 Sustainability Statement Strategy S3 ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model [9] Within the scope of its activities, the Group is committed to contributing to the development and well-being of the community in which it operates, guaranteeing respect for the needs of the territory, with the aim of interpreting its needs also in terms of attention to employment levels, and investing in the research and development of efficient and advanced technologies that enable it to provide services according to the highest standards of sustainability from an environmental and energy point of view. In particular, the experience gained in serving local communities and the awareness that the Group’s activities involve a high degree of territorial, social and environmental interaction have enabled A2A to consolidate a relationship with communities based on listening, continuous dialogue and the active engagement of its stakeholders, a source of valuable information and ideas for incorporating the territories’ needs and responding to them effectively, anticipating any critical issues. The variety of stakeholder categories involved in the Company’s initiatives encourages the sharing of different experiences and points of view, in order to improve the services offered to communities and the quality of life in the territories where the Group is present. [9a] As emerged from the results of the dual materiality analysis, the communities potentially impacted by the Group’s activities are those living near the Group’s sites and plants or those served by the essential services provided by A2A Companies [10] As highlighted in disclosure requirement ESRS 2 SBM-2, the A2A Group uses the stakeholder management platform to map the territorial communities in which it operates and analyse specificities and any problems, so as to implement engagement activities tailored to the situation in question. [11] Among the material risks, those listed below are specific to certain groups of communities and do not extend to all areas affected by the Group’s activities and services: • the potential interruption of the proper waste disposal cycle at the Acerra waste-to-energy plant could lead to negative impacts in terms of relations with local authorities and communities, with a consequent image risk for the Group; • the possible malfunctioning of the Silla 2 waste-to-energy plant would prevent the correct waste disposal cycle and the normal supply of heat to the district heating network, which could have a potential impact on relations with authorities, local communities and the Group’s image; • a major accident at the Corteolona and Giussago waste treatment plants involving internal or local staff could have an impact on relations with local authorities and communities, with consequences for the Group’s image. Impact, risk and opportunity management S3-1 Policies related to affected communities [14, AR9, AR11] The A2A Group manages its impacts, risks and opportunities on the communities affected by its services and activities through three documents, which are publicly available on the Group’s website in both Italian and English, and therefore easily accessible to all: the Code of Ethics and the Human Rights Policy approved by the Board of Directors, and the Stakeholder Engagement Policy approved by the ESG and Territory Relations Committee. No significant changes were made to the above policies in 2024. With specific reference to the provisions of the Policies adopted by the Group in relation to communities, through the Code of Ethics, the Group ensures: • compliance with area needs, ongoing definition of sustainable development of infrastructures, the use of the most efficient and evolved technologies, investment in research and development, all of which allows for the definition of service delivery that is more and more in line with the needs of its clientèle, and the productivity of the business, not to mention sustainable from an environmental / energy- production point of view; Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 311 • that dialogue with public or private institutions that represent the collective interests of the different local entities shall be marked by the utmost adherence to the Code’s principles; • loyal, professional, and law-abiding (with respect to the adjudication procedures) participation to any grantor or procuring entity, cooperating with the entity to perform precisely under the service agreement, and submitting transparent and complete information by the deadlines set by the procuring administration itself. Local entities represent a key, central reference point for the Group, in their roles as shareholders, grantor/procuring entities, as well as parties issuing authorisations; these entities and their respective communities constitute the clientèle to which Group services are directed. With the Stakeholder Engagement Policy, the Group defines how stakeholders are prioritised and how engagement activities and their outputs are managed. In particular, in accordance with the policy, A2A’s stakeholder engagement process is based on the principles of i) inclusiveness, taking into account the most material stakeholder views to identify material topics and their impact; ii) materiality, identifying and prioritising the most material topics that impact A2A and its stakeholders; iii) responsiveness, considering material topics and their impact in A2A’s decisions and activities; iv) impact, monitoring, measuring and assessing the effects of A2A’s activities on stakeholders. [16a] Within the Human Rights Policy (presented in disclosure requirement S1-1), the topics related to affected communities are addressed, such as respect for them, environmental protection, security activities, digital inclusion and access to innovation. [16b] The experience gained in serving the territory and the awareness that the Group’s activities entail a high level of local, social and environmental interaction have enabled the A2A Group to consolidate a relationship with the affected communities and its customers based on listening, continuous dialogue and active stakeholder engagement, as a source of valuable information and ideas for incorporating territories’ needs and responding to them effectively, anticipating any critical issues. Moreover, dialogue with public or private institutions that represent the collective interests of several local entities ensures the greatest understanding of the end-customer’s interests, and more generally, that of the local community, and allows for the identification of initiatives that align with A2A Group principles, and which would gel with the communities hosting them [16c, 17] As for mechanisms to remedy human rights impacts and reports of non-compliance with internationally recognised principles or standards, see disclosure requirement S1-1. S3-2 Processes for engaging with affected communities about impacts [21, 21a, 21b] For information on how the views of communities guide the Group’s decisions and activities to manage impacts, how communities or their representatives are engaged, and the stages and frequency of engagement, please see disclosure requirement ESRS 2 SBM-2. [21c] From an operational perspective, all stakeholder engagement activities, as well as the stakeholder mapping process described in disclosure requirement S3 ESRS 2 SBM-3, are the responsibility of the corporate Sustainability Stakeholder Engagement structure within the Sustainability Development structure. Periodically, the structure reports the results of community dialogue initiatives to the ESG and Territory Relations Committee in order to identify follow-up actions with respect to the emerging evidence. [21d] During 2024, two projects were launched to evaluate the effectiveness of the stakeholder engagement process: • the first, developed in collaboration with The European House Ambrosetti, aims to measure the corporate value of stakeholder engagement activities. The impact generated for the Company is evaluated considering the change of the state of relations with stakeholders compared to the effort expended by A2A in a specific geographical area. The study is based on data collected internally and externally. The pilot project includes a focus on the areas of Southern Lombardy and Liguria. 312 A2A Report on Operations 2024 Sustainability Statement S3-3 Processes to remediate negative impacts and channels for affected communities to raise concerns [27a] With respect to processes to remediate or help remediate a negative impact which the A2A Group causes, or contributes to causing, reference is made, as applicable, to disclosure requirement S1-3. [27b, 27c, AR20] A2A makes many channels available for its stakeholders to express criticism and concerns in relation to its activities and services offered, and more specifically: • social media caring flows to promptly intercept the needs and reports to be transmitted to the customer care channels: overall, approximately 32,298 requests received from users of the social platforms have been taken care of. Moreover, the activity allows to understand and gather the main topics discussed on the web, taking cues to design new services and products; • Group website, where the e-mail addresses of the Company’s Press Office, Investor Relations and Sustainability Development Managers are listed, thus enabling anyone to have direct contact with Company management, as well as to request clarifications and raise issues in relation to their area of responsibility. In particular, the Group has a dedicated e-mail address for sustainability-related matters (sostenibilita@a2a.it); • Multi-stakeholder Forums are a direct channel of communication with the Group, as they allow the stakeholders involved, representatives of local communities, to express any problems and critical issues directly to the corporate functions present. Moreover, there are no channels operated by third parties. [27d] Evidence gathered through these channels is transferred to the most appropriate corporate structure to be handled according to the competence and subject matter of the concern raised. The assessment of the effectiveness of the actions implemented by the various business areas, as a response to the needs and requirements gathered through the corporate structures and dedicated channels • the second measurement initiative, launched in cooperation with Bocconi University, aims on the other hand to measure the external social impact of stakeholder engagement activities carried out in specific territories. The first two territories selected as the object of study are Brescia and Bergamo. The study is based on both input analyses (activities and resources invested) and output analyses (results obtained). [22] When developing specific projects, the team conducts ad hoc consultations in the territory, including through surveys in order to capture the views of the communities affected by the activity in question, which may consequently be particularly vulnerable to impacts. In addition, through the Energy Bank Foundation described within disclosure requirement S3-4, projects related to combating energy poverty are implemented for vulnerable households throughout the country. The project beneficiaries are helped indirectly through other non-profit organisations in the third sector which are active in the country and selected on the basis of criteria of reliability and consolidated experience, to which Banco dell’Energia disburses the funds. These entities also identify the beneficiaries and define the modalities of intervention to combat poverty and vulnerability in their territories. In some cases, on the other hand, a shared planning process on specific territories or types of action identified by the Foundation itself at the instigation of its partners, through the involvement of reliable and well-established local bodies and associations, has been set in motion. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 313 various Group structures in the process of defining objectives also made it possible to collect and take into account the needs and requests that emerged from stakeholders during the various engagement activities carried out during the year. The collective actions developed and implemented by the Group in 2024 and the objectives in relation to the relevant IROs are: [31, 32a, 32b, 32c, 34a, 34b, 35, AR27, AR34c] Territorial sustainability reports A Territorial Sustainability Report is published for each territory involved in listening and dialogue activities through working tables 1 : these are simple, easy-to-consult documents and transparent communication tools in which the Group’s performance in the economic, environmental and social spheres in a specific territory is reported on an annual basis and with reference to the UN Sustainable Development Goals (SDGs), providing stakeholders with a means for understanding and knowing A2A’s impacts on the territory. In fact, A2A’s sustainability strategy has been based on 11 of the 17 SDGs identified as most relevant to the Group’s business on the basis of the value chain since 2016, and specifically: 4 - Quality Education, 5 - Gender Equality, 6 - Clean Water and Sanitation, 7 - Clean and Affordable Energy, 8 - Decent Work and Economic Growth, 9 - Sustainable Cities and Communities, 11 \- Sustainable Cities and Communities, 12 - Responsible Consumption and Production, 13 - Climate Action, 15 - Life on Land, 17 - Partnership for the Goals. The main and most significant actions carried out in the different territories are reported annually within the Territorial Sustainability Reports, using dedicated KPIs and associating the SDG supported with each initiative. These reports therefore represent tools for communicating the Group’s commitment to stakeholders and monitoring its impacts over time, giving everyone the opportunity to assess its performance and raise any critical issues, and giving corporate structures the opportunity to plan accordingly to develop activities over time on the basis of the results and evidence that emerge. The Territorial Reports are presented during Multi-stakeholder Forums and are then published on the website, where they remain accessible to all even in subsequent years. described above, is designed and carried out by the competent corporate area, based on the characteristics of the action itself and its recipients. [28, AR21] The social channels and contacts mentioned are indicated on the Company website, and are thereby easily accessible to any category of user wishing to get in touch with the Group. Metrics and Targets S3-4 Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions S3-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities [33a] Stakeholder engagement, discussion and dialogue are the main tools used by A2A to prevent and mitigate impacts and risks on communities affected by the Group’s activities and services. In particular, the Group relies on two specific structures (Regional Affairs and Sustainability Stakeholder Engagement) to carry out activities and take care of relations with the various local entities, as well as to gather requests from the territories with respect to material impacts linked directly or indirectly to the Group’s activities. [42a] During the definition of the Strategic Plan 2024-2035, in order to regularly monitor all sustainability implications of the identified goals, the CEO, the Strategy, Sustainability Development functions and the Business Units were in constant contact with each other. Sustainability indicators are in fact an integral and qualified part of the Strategic Plan, and the process for defining and monitoring them, as well as for drafting the integrated document, involves all the Departments and the Group’s BUs. This continuous sharing between the 1\. For more information on listening to territories, please see disclosure requirement ESRS 2 SBM-2. 314 A2A Report on Operations 2024 Sustainability Statement • helping companies build a labour and human rights policy adapted to different company sizes (small, medium and large companies). This tool therefore aims to offer tangible support in the creation of concrete and detailed documents and to provide the necessary tools to integrate sustainable practices into activities. The document is made available to all suppliers following the EcoVadis evaluation and has also been published on the Company website, thus being accessible to all. Meetings, activities and programmes on sustainable supply chains and biodiversity As reported within disclosure requirement ESRS 2 SBM-2, during the Multi-stakeholder Forums held during 2024, stakeholders had the opportunity to vertically discuss two thematic lines in separate working tables: sustainable supply chain and biodiversity and climate. In continuity with the needs that emerged in the dialogue process carried out in 2023, which led to the publication of the Guidelines for SMEs, the actions most requested by participants at the ‘Sustainable Supply Chain’ table in 2024 concerned training on sustainability issues, skills transfer and sharing best practices. Meetings and activities on the subject are planned for 2025 to meet these needs, in partnership with the local Confindustria (Confederation of Italian Industries) in order to support the ecological transition process of the entire business fabric in the areas where the Group is present. One of the main actions identified from the discussion with stakeholders participating in the biodiversity and climate working table is the implementation of information programmes and awareness-raising campaigns on the issue. To this end, and in response to the need that has emerged, an educational moment dedicated to biodiversity has already been introduced for the 2024-2025 school year in the primary school workshops of the Futuro in Circolo project. In addition, two online events dedicated to biodiversity were planned as part of the national Futuro in Circolo project and Pianeta Green: Educare al Futuro Sostenibile [Green Planet: Educating for a Sustainable Future], a webinar series developed in cooperation with Deascuola, both of which are expected to be attended by more than 48,000 and 17,000 students and teachers, respectively, in line with 2024 figures. Therefore, these documents allow the Group to be accountable to stakeholders with respect to the impacts and value generated for each territory, providing everyone with an opportunity to have discussions based on concrete and comparable data from year to year. Guidelines for SMEs As a result of the stakeholder dialogue carried out in 2023, Guidelines were published in January 2024 to support small and medium- sized enterprises in integrating sustainability into their governance model, thereby facilitating their approach to meeting the new regulatory obligations that will affect an ever-increasing spectrum of companies over the next few years. In fact, from direct discussions with suppliers at the Forums and the analysis of the results of the questionnaires completed by the Group’s supplier companies on the Ecovadis platform (a leader in sustainability assessments), some differences emerged between the results of large, medium and small companies, with the latter obtaining lower scores on average. Based on this, 2 workshops were initially conducted with 30 stakeholders (companies and trade associations) to map out common challenges, knowledge, and best practices. Subsequently, 3 webinars were held, one of which was specifically for construction companies, as it was observed that they have particular and urgent needs. Finally, it was decided to create a tailor-made survey to better understand the difficulties that SMEs face when dealing with ESG issues. The survey was circulated among stakeholders, to their associates and to a pool of A2A’s supplier SMEs, obtaining about 100 responses and highlighting the main difficulties encountered by small and medium-sized enterprises. To bridge the existing gap and respond to the needs that emerged during the activities described, Guidelines were produced with the aim of: • supporting SMEs in drafting their own Code of Ethics, which defines the principles, behavioural rules and responsibilities that the organisation recognises, respects and assumes as a value and binding imperative; • helping companies to build an environmental policy based on business types (e.g., professional services, raw material manufacturing, construction work, etc.); Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 315 the use of meta-materials as a solution to the problem. In cooperation with Phononic Vibes, a spin-off of the Milan Polytechnic Institute, in which the Group invested through a Corporate Venture Capital initiative, an innovative solution to significantly reduce noise during glass collection was developed and successfully tested. This process not only proves to be economically viable but, more importantly, has no negative impact on the activities of our operators and is also a benefit for the entire Milanese population. During testing, the solution more than halved the sound level. The operating principle is to dampen the incident sound wave by macroscopic geometric structures in the sheet metal forming the recycling bins. The application of these sheets was foreseen in the supply of new vehicles for the glass collection service, which are scheduled to be delivered in early 2025 - this application is already carried out during the construction of the glass collection container, and the noise reduction results are expected to be in line with what was found during the trial phase. To protect this innovation, a patent application for an industrial invention was filed on behalf of A2A and Phononic Vibes. Finally, to avoid causing significant negative impacts on communities through its activities (related to the planning, acquisition and exploitation of land, the financing, extraction or production of raw materials, the use of natural resources and the management of environmental impacts) the A2A Group adopts environmental management systems certified in accordance with UNI EN ISO 14001, which make it possible to identify and manage the impacts arising from business processes through the analysis of environmental aspects. In fact, these systems make it possible to identify the impacts of business processes on the various environmental matrices and consequently on the local communities that interact with these matrices at various levels. In addition, the Environmental Impact Assessment (VIA) required by current legislation to authorise the construction of energy production facilities that fall under certain criteria aims to ensure that human activity is compatible with the conditions for sustainable development, and thus with respect for the regenerative capacity of ecosystems and resources, the preservation of biodiversity, and a fair distribution of the benefits Disseminating and spreading awareness of the importance of sustainable development The commitment to disseminating and spreading awareness on the importance of sustainable development to the entire population, and especially to the younger generations, is also highlighted by two important projects: the promotion of three episodes of the podcast ‘News dal Pianeta Terra’ [News from Planet Earth] on the topics of biodiversity and sustainable cities, and the vodcast that explored the connections between cinema and sustainability. In October 2024 in the municipality of San Filippo del Mela (ME), a plogging initiative was carried out with the same adjective. The activity combines running with waste collection, which has become increasingly popular in recent years thanks to its ability to combine passion for sport with raising awareness of environmental protection issues. 50 citizens were involved, who in two hours collected around 350 kg of waste, which was then correctly sorted, avoiding the emission of over 500 kg of CO 2 into the atmosphere. Ecological worker induction and training pathway for refugees For an overview of the actions taken to promote employment and social inclusion in the territories where the Group operates, generating a positive impact, please see the projects described within disclosure requirement ESRS S3-2, developed by AMSA. Protection of health and safety of people and the environment The Group follows applicable legislation and has adopted certified management systems according to the major voluntary standards recognised at the international level, such as ISO 14001 for the Environment, ISO 9001 for Quality and ISO 45001 for Occupational Health and Safety, or within the European Community, such as EMAS Registration, which refers to Regulation (EC) 1221/09. Noise reduction during the waste collection process In the search for solutions to mitigate strong glass noise during the collection process, at the end of 2021 a public challenge was launched on the crowdsourcing platform Wazoku, which saw the participation of 132 innovators from 44 countries around the world within three months. One of the best proposals identified involved 316 A2A Report on Operations 2024 Sustainability Statement • in the knowledge that environmental education activities do not end in the classroom, the Group offers guided tours of its plants. Indeed, these moments are a fundamental part of the educational proposal, since they allow students and teachers to discover the infrastructures present in their territories, interact with experts and technicians in the sector and learn about the essential services that work daily to make the country’s future more sustainable. During 2024, more than 15,000 students and teachers visited the Group’s plants. In addition, to spread awareness of A2A’s commitment to the ecological transition, virtual tours of the plants have been created and are available at “https:// virtualtour.gruppoa2a.it/”. Thanks to the 3D reconstruction of the infrastructure, users can enjoy an immersive experience, exploring the operation, processes and technologies used. The plants concerned are: the Muggiano plastic sorting plant, the Brescia waste-to-energy plant, the Grighine wind farm and the Macchiareddu photovoltaic plant; a fourth virtual tour was added in 2024 dedicated to the Valchiavenna hydroelectric plant. Over 33,000 users visited the dedicated page, generating more than 336,000 views. • Alongside the educational projects described above, in 2024 the commitment to engaging Generation Z and communicating sustainability reporting content to younger people continued, with a project dedicated to telling the story of the Integrated Report in an innovative, simple and engaging way, exploring the relationship between sustainability and cinema. During the Giffoni Film Festival in July, A2A held a masterclass on ESG reporting, explaining to an audience of about 400 people under 30 the main topics covered in A2A’s Integrated Report through film analogies. In order to deepen the relationship between cinema and sustainability and spread the culture of sustainability, a four-part vodcast on the relationship between cinema and ESG dimensions was produced within the setting of the Giffoni Film Festival 2024. The four episodes unveil how different film genres \- from animation to documentaries, from investigative films to dystopian science fiction - narrate sustainability and how film production must also address ESG of economic activity. The VIA is therefore a tool for identifying, describing and assessing the effects of a project on the environment and population. Raising community awareness on energy and environmental issues, with a special focus on the younger generation A2A supports schools by promoting the values of sustainability through educational projects, teaching tools and training courses. The aim is to engage children and youth to become active agents of sustainable change in their communities. The A2A website for schools serves as a portal for communicating with teachers and offering educational materials and training courses on the topics of energy, the environment, water resources and sustainability. In 2024, the A2A Group involved over 103,000 students and teachers in environmental education and sustainability projects at national and local level, also through collaboration with partners and institutional stakeholders: • the school year 2023-2024 saw the launch of ‘Futuro in Circolo - In Movimento per il nostro Pianeta’ [Future in Circulation - On the Move for Our Planet], the national educational project inviting students from all schools in Italy (primary, lower and upper secondary schools) to join the A2A Movement to protect the Planet. The project is structured into two main stages: The first focused on education: teachers were provided with various tools to explore the topics of energy transition, circular resource use and smart networks with their classes. In the second stage, the classes participated in a creative contest, inviting them to implement sustainable actions at home, at school and in their local area and tell their stories through photos, videos, articles, interviews, posts and class journals. The project involved more than 48,000 students and teachers. Moreover, with the A2A PCTO pathway the Group offers students training that includes technical aspects, related to the business of reference and the development of soft skills and abilities related to innovation. • PCTO training course, a 40-hour certified project for technical institutes and secondary schools that involved 6,440 students in 2024. This aims to provide the necessary skills for professions in the energy sector. The course includes a multimedia course focusing on environmental sustainability issues and operational project work; Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 317 monitoring the comfort of spaces, with the aim of designing and adopting measures to improve the air quality and energy efficiency of buildings; • remote reading of water meters and district heating through software solutions in various territories nationwide, enabling more sustainable water management, reduced water losses and an in citizens’ awareness of waste and service quality improvement. Responsible Investments in the Community In order to contribute to the development of the areas in which the Group operates and generate positive impacts, various social-institutional activities have been carried out. The main initiatives of national interest that the A2A Group has decided to join include: • partnerships with the Cattolica University and LUISS, ISPI Next - Empowering Future Leaders and the 14th UNI-CIG Forum on technologies, innovation and prospects of the gas system for a safe and sustainable energy transition. This year’s edition covered several topics, including the commitment to the security of the national energy system, the national gas system as support for the challenges of change, and innovation and research in the multi-gas sector for a sustainable energy transition. The Young Innovators Business Forum of the National Association of Young Innovators and the MIND Social Innovation Campus project, a festival that included a contest open to young people aged between 13 and 18 who had to submit a video on the topic of sustainability, organised by Fondazione Triulza, were among the various supports for the younger generation. • At territorial level, in line with the Group’s focus on Diversity & Inclusion issues, A2A was a sponsor of ‘Milano Pride’ and ‘Napoli Pride’. In addition, multiple initiatives were supported in the territories of Brescia, Calabria, Cremona, Milan, Pavia, Sicily and Valtellina. • In the sports field, the collaboration with the PalaleonessaA2A of Brescia was renewed through the naming of the sports centre. The Group also increased the teams in its portfolio by adding Napoli Basket to the already present New Basket Brindisi and Polisportiva Dinamo Sassari S.r.l. for the Lega Basket Serie A season. Also this year, the collaboration with Lega Basket Serie A for the Final Eight of the Italian Cup and the Super Cup and the partnership with Atlantide Pallavolo of Brescia and dimensions. In parallel, each part of the series illustrates the role of corporate Sustainability Reporting to inform and measure ESG performance. An event dedicated to the project was organised on 19 November at Franco Parenti Theatre in Milan, attended by 200 young people from various secondary schools, universities and vocational colleges in Milan. In addition, the project received the Special ‘Generation Z’ Award of the 2024 edition of the Reporting Oscars event promoted by FERPI, the Italian Stock Exchange and Università Bocconi dedicated to organisations that stand out for their transparency, innovation and commitment to sustainability. The dissemination of the key concepts of sustainable development and safeguarding the planet is crucial not only for the younger generation but for the entire public. This is why A2A has contributed to the News dal Pianeta Terra [News from Planet Earth] podcast produced by LifeGate, which reports daily on key news on topics such as the environment, renewable energy, biodiversity, human rights, society and sustainable mobility. Smart City Development In 2024, A2A Smart City, a Group company that develops innovative and digital business models for cities, carried out several projects that improve the quality of life for citizens in various ways, including: • installation of video-surveillance and litter monitoring cameras in several areas, including Milan and Monza, with the aim of increasing urban safety and raising citizens’ awareness of respect for the environment and the territory; • management, maintenance and upgrading of public lighting installations with broadband and narrowband provision and public Wi-Fi network for neighbourhood committees in several areas, with the aim of improving connectivity in the city for citizens and businesses; • installation of the first 5G microcells on public lighting poles in the city of Milan to optimise the use of ultra-wideband, providing high- speed connection in specific areas of the city with the greatest demand for mobile data from both businesses and citizens; • installation of benches for recharging mobile phones, sensors for monitoring air quality (PM 2.5 and PM 10) and pollen and for 318 A2A Report on Operations 2024 Sustainability Statement entertainment took place in the areas of Asti- Cuneo, Bergamo, Brescia, Milan, Sicily and Valtellina. • Lastly, with reference to the environmental theme, A2A again participated in the 5th Regional Forum for Sustainable Development promoted by the Lombardy Region and was the protagonist of the tenth edition of the ‘Keep Clean and Run’ eco-marathon, an initiative with the dual objective of running and collecting waste; the event lasted seven days and touched seven cities, bringing a message of sustainability and peace. In Sicily, the initiatives ‘Sicilia Carbon Free’ and ‘Sicilia Munnizza Free’ organised by Legambiente and ETS Rete Associativa were sponsored. Stramilano continued. A2A has supported other initiatives such as the University of Milan’s ‘Stai Sano’ [Stay Healthy] project and sports seasons of various disciplines organised in the areas of Bergamo, Cassano d’Adda, Cremona, Friuli- Monfalcone, Pavia and Valtellina. • In the cultural sphere, the partnership with the Franco Parenti Theatre was launched through the naming of the newly built hall; in addition, collaborations continued with the theatre season of the Centro Teatrale Bresciano, the concert season of ‘Milano Arte Musica’, and the cultural festival ‘La Milanesiana’. Support for the I.S.E.O. Summer School and at the Piano Festival of Brescia and Bergamo project also continued. Other cultural initiatives and musical Table 138 Action Unit of measurement CapEx 2024 OpEx* 2024 Future CapEx Future OpEx* (cumulated 2025-2035) Description of the future objective to be achieved (if defined/ available) Multi-stakeholder Forum calendar € \- 905,000 \- 15,560,000 Continue to hold at least 1 multi-stakeholder forum per year for the 14 territories covered by the Group in 2024, and expand coverage following new territories managed (see Sustainability Plan objective) Environmental education in schools € \- 1,033,000 \- 16,248,000 Continue to carry out educational initiatives in schools at a national and territorial level, growing with the number of teachers and students involved (see objective of the Sustainability Plan) *These amounts are included in operating expenses in the Company’s Financial Statements. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 319 the implementation of small energy efficiency measures with the replacement of the most energy-intensive household appliances for some of the beneficiaries. In 2024, an important milestone was reached in the development of Renewable and Solidarity Energy Communities (CERS): 11 projects were launched. Among these is the CERS set up at ‘Casa del Fanciullo’ in the Barra district of Naples, on whose roofs a photovoltaic system has been installed and inside which a canteen service and a solidarity emporium to support the weakest will be set up. The energy produced supports about 40 poor families in the neighbourhood, identified through the parish listening centre. Another example is the CERS in Baranzate, in the province of Milan, where a photovoltaic system has been set up to reduce the energy consumption of the La Rotonda Association: the savings are then returned to the area in the form of charitable donations to support the energy costs of families experiencing hardships. To date, the Energy Bank Foundation has collected and donated € 13 million, which has guaranteed support to more than 13,000 beneficiaries through 150 projects distributed throughout the country. The Energy Bank’s objective is to consolidate its role as a national touchstone on the issue of energy poverty in the coming years, continuing to implement innovative and increasingly effective projects and continuing to raise awareness on this issue, in synergy with all strategic partners. For more information and to view the Social Report of the Energy Bank Foundation, please visit www.bancodellenergia.it. AEM Foundation: preserving and enhancing AEM’s historical memory and corporate culture since 2007. The Foundation focuses on environmental education, the protection and enhancement of AEM historical heritage, training and scientific research in the areas of Milan and Valtellina. The headquarters of Fondazione AEM have been home to AEMuseum since 2022, the corporate museum dedicated to its immense heritage. It was enriched in 2023 by a second area for exhibits, with the founding principle being the use of historical heritage to understand the present and project visitors into the future, including through the Sustainable Development Goals of the UN 2030 Agenda. In 2024, the AEMuseum hosted over 1,000 visitors and several exhibitions, also innovating some exhibition sections such as the new timeline on the history of AEM. One Group Foundations The Foundations of the A2A Group act with a focus on the social dimension, promoting cultural initiatives for the overall growth of communities, supporting scientific research and sustainable development. The protection of historical memory and tension towards the future come together in a coherent and wide- ranging project within the territorial context of the Group’s presence. In particular: Banco dell’energia [Energy bank] Foundation The Energy Bank implements projects related to combating energy poverty. Established in Lombardy in 2016 by A2A and its Foundations, in October 2022 following the reform of the third sector and the entry into force of RUNTS (Single National Registry of the Third Sector), the Energy Bank was transformed from a non- profit committee to a Foundation Philanthropic Body, broadening its governance to other companies. Edison, Eni Plenitude S.p.A. Benefit Corporation and Iren joined the Foundation’s Board of Directors. In 2024, the Energy Bank achieved its goal of expanding its partner network and increasing the number of initiatives launched. Over the year, the Energy Bank successfully consolidated its Mission thanks to the implementation of several new projects throughout the country and the promotion of the Manifesto ‘Together to fight energy poverty’, which was endorsed by new stakeholders, reaching more than 80 signatories. With more than 50 interventions spread across North, Centre and South Italy, 2024 was a particularly important year for the Energy Bank. After Milan, Rome and Reggio Calabria, the ‘Energy in the suburbs’ initiative created to provide support to energy vulnerable families living in the suburbs of cities was replicated in many other Italian territories, and over 1,000 families were able to benefit from economic aid for the payment of their electricity and/or gas bills issued by any energy operator. Specific training meetings were also organised for these families by TED (Tutor for Household Energy) to raise awareness of energy saving, optimising consumption and consequently reducing expenditure on electricity and gas utilities. The Energy Bank’s objectives and interventions also included supplementing income support activities with energy efficiency measures. During the year, some ten support/ efficiency projects were launched, involving 320 A2A Report on Operations 2024 Sustainability Statement general and the relationship that the company has created and consolidated over the years with the city administrations and the territory. LGH Foundation: established in 2021, it shares social, cultural, scientific and environmental commitments in the territories of Crema, Cremona, Lodi, West Brescia and Pavia. It aims to promote and support scientific research and the implementation of innovative technologies with positive spill-over effects on the target territories. It contributes to the development of projects in line with its own guidelines on topics related to energy transition, circular economy, bioenergy, sustainability, biotech and agritech, consistent with the callings and identities of the reference territories. The Foundation also supports cultural projects that enhance the identity, culture and traditions of local entities that may also be of national interest. In recent years, the LGH Foundation has contributed to the implementation of innovative projects in food agribusiness, life sciences and the bio-economy and to the establishment of Renewable Energy Communities (CERs). In order to fully develop its capacity to positively influence the territories and intercept a growing number of partners and projects in the areas of interest, the Foundation has set up a Consolidation and Listening Plan that envisages a survey of the territories’ needs, the active engagement of stakeholders, the enlargement of the target audience and the improvement of brand awareness and reputation. In particular, in 2024 the ‘MEETINGS WITH SCIENCE’ Roadshow was carried out: this crucial point of the Consolidation and Listening Plan consists of a five-stop travelling event carried out in cooperation with the Corriere della Sera, with the aim of fostering dialogue on the current topics of science and innovation, for shared and conscious growth. In order to make the appointments more engaging and effective, the new formula has been enriched with three components: initiatives to listen to the territories, openness to a wider audience, and high-level scientific testimonials. of the most significant initiatives is the cycle ‘Meetings with History’, consisting of annual appointments promoted in collaboration with the Corriere della Sera Foundation, aimed to focus on the challenges of the contemporary world, drawing on AEM history and cultural heritage to interpret the transformations taking place today in the fields of culture and society. In this year’s appointments focused on the role of women in business, the theme of work, and Milan Polytechnic and International, experts and celebrity guests dialogued together with Ferruccio de Bortoli, Alberto Martinelli and A2A Chairman Roberto Tasca to recount the complexities of the contemporary world. The events were once again an extraordinary success with the public, selling out in the 110-plus-seat Fondazione AEM Auditorium and reaching over 1 million views with Corriere.it streaming. ASM Foundation is a philanthropic organisation that was established in 1999 and has been fully operational since 2000, supporting cultural and social projects in the Brescia and Bergamo areas. The Foundation is an active partner in numerous initiatives promoted by voluntary associations, social enterprises and other foundations. It works to reduce inequalities and build sustainability, contributing to the formation of an open and environmentally sensitive society. During 2024, the ASM Foundation supported many organisations that took up the challenge of consolidating the excitement generated by the designation in 2023 of Brescia and Bergamo as Capital of Culture, in addition to the many actors working in the social sphere. 2024 also saw the publication of the volume ‘The Municipalisation of Services between the Giolittian Age and Fascism [1907- 1944]’, the first of three planned. The project reconstructs the history and memory of Azienda Servizi Municipalizzati, whose name the Foundation cherishes, and delves into the entrepreneurial and technical culture that has always characterised the Brescian community in Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 321 With reference to the categories particularly vulnerable to impacts, the main activities in 2024 were developed by AMSA, a Group Company that deals with waste collection and management in the province of Milan, through two projects designed to promote employment and social inclusion. • the ‘Multicultural Ambassadors’ project saw the active participation of three employees of Arab origin, who after training in public speaking, carried out educational activities in their native language held at both the Italo-Egyptian school Nagib Mahfuz in 2023, where they interfaced with about 30 students aged about ten and 15 of their parents, and in 2024 at the San Giuliano Milanese public housing, where they addressed about 15 tenants. During the lessons, the most important concepts about best practices for proper waste management, separate waste collection, and the principles of the circular economy were conveyed. This training moment proved to be an enriching opportunity for both operators and participants in the meetings, who welcomed the chance to communicate with someone who spoke to them in Arabic. Milan is indeed a multi-ethnic city, embracing many cultures: there are more than 300,000 residents of foreign origin. Therefore, in order for all people to work every day to help keep the city cleaner, the key topics of the circular economy, such as waste management and waste separation, must be accessible to everyone. • the second project led to the creation of an insertion and training course for ecological operators aimed at fostering social integration. The protagonists of this project are nine refugee and non-EU citizens from Africa, Asia and Europe, disadvantaged in accessing the labour market due to the lack of requirements normally considered essential for employment, such as possession of a B driving licence and knowledge of the Italian language. The aim of the project was their placement within the Company, with the subsequent possibility of stabilisation with an open-ended contract. The pathway comprised three phases: 1\. the resources were placed in a three-month traineeship period, during which they followed - at the Company’s expense - an in- house Italian course; 2\. at the end of the three-month traineeship, the resources were hired with a six-month fixed-term contract with a possible renewal for a further six months. During the course of the fixed-term contracts, in addition to continuing to follow the Italian course already started during the first phase, the resources were enrolled in a driving school at a cost borne by the Group, and had the opportunity to attend preparatory courses for the theoretical test and practical examination required to obtain a B driving licence; 3\. following an overall evaluation of the pathway, the resources will eventually see the formalisation of an open-ended contract. The project started in 2023 and the second phase was fully implemented in 2024. [32d, 33c] To assess the effectiveness of these actions, as described above, A2A is carrying out two experimental research projects in collaboration with Bocconi University and TEHA (see disclosure requirement ESRS S3-2). Through these projects carried out in parallel, in 2025 it will be possible to assess stakeholder engagement processes on two fronts, both internally within the Company and externally, enabling the Group to prioritise its actions and strategies for the following year, in order to generate a positive impact on the communities concerned and which is increasingly responsive to their needs and requirements. As instead regards the actions implemented by the various business areas, following the needs and requirements gathered by the dedicated functions, the assessment of their effectiveness is designed and carried out by the competent business area, based on the characteristics of the action itself and its target audience. The Group’s objectives related to affected communities and stakeholder engagement activities, shown in the table below, are included in the Sustainability Plan, which is published on the Company website and thus easily accessible. For each target, the result achieved in the reporting year, the expected value in the target year 2035 and the expected values in two intermediate years are published annually. 322 A2A Report on Operations 2024 Sustainability Statement All the objectives involve direct Group activities, particularly related to stakeholder engagement and sponsorship activities, but they also have a positive impact downstream in the corporate value chain, on the communities and territories affected by A2A’s plants and services. In particular, the targets linked to the communities concerned arise from the awareness that dialogue with the territories is a pivotal element that cannot be disregarded by the business, in order to propose and implement projects with shared value. The ultimate aim of the targets included in the Sustainability Plan, and in general of the activities for the territories, is to encourage their active engagement, so that the communities affected by the impacts generated by the Group’s activities and services have an increasingly significant influence on business choices, whose projects are at the same time in line with the Group’s industrial objectives and the needs of local communities. In addition, the target related to the percentage of sponsorships with SDG awareness-raising initiatives seeks to spread a culture of sustainability within the affected communities, which can be increasingly integrated into the daily life of local realities. The continuous exchange between the various Group structures to define the objectives included in the Sustainability Plan also made it possible to collect and consider the requests that emerged from stakeholders within the framework of the various engagement activities carried out during the year. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 323 [41, AR44] Table 139 People Innovation Action KPIs KPIs detail 2024 2027 2030 2035 Transparency and Stakeholder Engagement Develop integrated reporting and an adequate information system for planning and control. Develop external stakeholder engagement activities, strengthening the relationship with the territory Sponsorships with initiatives to raise awareness of SDG issues Percentage calculated on the number of sponsorships and not on the expense 61% 66% 69% 70% Territories involved in multi stakeholder engagement initiatives / year Number of territories involved annually in stakeholder engagement initiatives 16 16 18 20 Evaluation of impact on the territories of competence (cumulative from 2021) Cumulative number since 2021 of impact assessments carried out in the territories of competence 5 7 8 15 Publishing content for the Group’s growth in ESG brand reputation (value of reputational return on digital channels) Change in the algorithm for calculating ESG impact as of January 1, 2024 38% 39% 40% 41% Organization of meetings on innovative regulatory and sustainability issues related to the Business Plan, between A2A top management and one or more material regulatory stakeholders Number of meetings organised on innovative regulatory and sustainability issues related to the Business Plan 2 >1 >1 >1 Elaboration, also in sharing with BUs, of at least one innovative regulatory proposal on an issue of development of the business plan 1 1 1 1 Compared to 2023, there was no change in the methodology for assessing the actual performance achieved in the reporting year. All the targets mentioned are in line with the Group’s Strategic Plan and its policies, all in turn inspired by the Code of Ethics, which identifies the prerequisites aimed at ensuring that business activities are inspired by the principles of fairness, transparency, diligence, honesty, mutual respect, loyalty and good faith, in order to safeguard stakeholders’ interests and ensure an efficient, reliable, correct working method based on compliance with current regulations and ethical principles deemed adequate, necessary and unavoidable to operate within the market. In particular, the above targets are inspired by the principles of the Stakeholder Engagement Policy. [42b] With reference to target monitoring, the stakeholder forums described in the document, such as Multi-stakeholder Forums and direct interviews with the Regional Affairs function, represent a forum for discussion on the methods for monitoring the Group’s targets and on the improvement actions to be implemented following target achievement: the performance of the reporting year, as well as the interim targets, are in fact reported on the corporate website, thus being easily 324 A2A Report on Operations 2024 Sustainability Statement the stakeholders involved have the opportunity to express the point of view of the entity they represent: the impacts thus detected are transmitted to the relevant business area and to the first lines of management through annual reports, so that each one can be managed in the most appropriate manner and with the most suitable resources based on the different territorial specificities. The report drawn up at the end of the programme is shared both internally within the Group and externally, so that the evidence which emerged is accessible to all stakeholders, representing a further transparent communication channel. In addition, the results emerging from the discussion with stakeholders during the Forums are reported periodically to the ESG and Territory Relations Board Committee. The Sustainability Stakeholder Engagement structure is also responsible for the stakeholder mapping process and the initiatives dedicated to them: this reporting process makes it possible to assess the state of the Group’s relations with the various stakeholders, allowing to identify any critical situations in the territories and to organise and prioritise engagement actions accordingly. The two structures work on their respective tasks in coordination with each other in order to ensure consistent actions and responses. In addition, in order to ensure a stronger focus on sustainability issues in the Business and Management Departments, focal points have been identified which, interfacing with the Sustainability Development structure, have the task of: • Integrate sustainability into business processes, with a view to continuous improvement, through participation in the definition of Sustainability Plan targets and the development of cross-cutting initiatives; • Promote and enhance new sustainability projects and deepen sustainability issues related to their BU/Department; • Promote communication and exchange of information for the purpose of carrying out sustainability-related activities; • Support the Sustainability Development structure in defining KPIs to assess the progress of sustainability initiatives and in collecting the necessary data to produce the Sustainability Statement and Territorial Sustainability Reports. accessible to all. The Territorial Sustainability Reports are a further tool for assessing the Company’s environmental, social and economic performance in each territory through easy-to- understand KPIs, which are reported annually so that everyone can compare them with previous years and verify that the results are in line with expectations. [42c] Finally, all stakeholders can make use of the channels described in disclosure requirement S3-3 to suggest ways for monitoring targets to be implemented and possible improvement actions with respect to achieved targets. [38, AR43] To carry out the engagement, listening and dialogue activities with local communities described in this chapter and in disclosure requirement ESRS 2 SBM 2, the Group has two structures dedicated to carrying out activities and maintaining relations with the various local entities, as well as to gathering the requests of the territories with respect to the significant impacts linked directly or indirectly to the Group’s activities. The two dedicated corporate structures are Regional Affairs and Sustainability Stakeholder Engagement, the latter in turn part of Sustainability Development, and both under the Communication, Sustainability and Regional Affairs Department. The Regional Affairs structure employs a total of 15 resources, part of which is specifically responsible for relations with environmental associations and think tanks, and part of which is in responsible for relations with local institutions, each for its own area of responsibility. This organisation makes it possible to reach all areas of the national territory in which the Group operates in a capillary manner, acting as an intermediary between local communities and the business: through its various constituent areas, the business then implements its own actions to manage the material impacts that emerge from the dialogue with the communities themselves. In parallel, the Sustainability Stakeholder Engagement structure, consisting of four resources, is responsible for organising the Multi-stakeholder Forums * , to which various representatives of civil society and local communities, including environmental associations and citizens’ committees, are invited to participate. On these occasions, all *More details on Multi-stakeholder Forums can be found in disclosure requirement ESRS 2 SBM-2. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 325 and work in the field developed over the years thanks to their proximity to the territories, which has always been a distinguishing feature of the Group’s operations, and tangible resources, thanks to partnerships with parties outside the Group that enable the actions and projects implemented to be enriched, also in terms of skills and tools used. [33b, AR34a, AR34b, AR35] Impacts, highlighted by stakeholders through the available channels (website, social media, direct interviews through the Company’s territorial coverage structures, Multi-stakeholder Forums), are managed by addressing them to the relevant Business Unit, which is responsible for developing actions to mitigate and remedy impacts considering the specificities of the different local communities. [36] To date, the Sustainability Stakeholder Engagement function has not become aware through the stakeholder contact channels it oversees of any incidents of human rights violations that occurred in 2024 within the communities affected by the Group’s activities and services. The Focal Points are involved in a regular programme of activities, including meetings and updates on the various sustainability processes, in-depth coverage of current events on the topic, and interactive and educational activities. In 2024, the Focal Point group was formally upgraded to integrate additional Group Companies and ensure connection to the business. In addition, to meet new ESG regulatory requirements, the Sustainability Lead Committee was also established, coordinated by Sustainability Development, which is responsible for coordinating ESG strategies and project development across the Group. Collaboration between the corporate structures that deal directly with relations with the territories and local communities, the Lead Committee and the Focal Points makes it possible to concretely implement actions and projects across the Group and Business Units in order to respond to the requests that emerge from the dialogue with stakeholders. The human resources within the aforementioned corporate structures make use of intangible resources, consisting of experience 326 A2A Report on Operations 2024 Sustainability Statement Table 140 Impacts: ESRS S4 Sustainability topic Impact Type [10b] Negative: generalised / systemic, [10c] Positive: activity description Stage Time horizon Short Medium Long Information-related impacts for consumers and/or end-users Confidentiality Privacy and confidentiality violations in processing customers’ personal data Negative Potential Generalised OO Information-related impacts for consumers and/or end-users Social inclusion of consumers and/or end- users Access to (quality) information Non-discrimination Responsible marketing practices Negative effects on the recipients of corporate communications caused by misleading, non-transparent and discriminatory commercial and/or institutional communications Negative Potential Specific commercial relations OO Personal safety of consumers and/or end-users Health and safety Possible health and safety impacts on customers as a result of receiving services that do not meet required standards due to inefficiencies, malfunctions or control failures Negative Actual Generalised OO, EE, R, I Personal safety of consumers and/or end-users Decline in local water quality following non-compliance with drinking water service requirements Negative Potential Systemic towards customers served OO Social inclusion of consumers and/or end-users Access to products and services Contribution to the spread of electrification and increased energy accessibility through the construction of several charging points Positive Actual Infrastructure activities OO, EE Social inclusion of consumers and/or end-users Access to products and services Improved service accessibility for vulnerable customers through the development of systems to analyse their needs (e.g. bill reading for the visually impaired) Positive Actual Specific customer care activities for vulnerable customer categories OO Social inclusion of consumers and/or end-users Reduced heating costs through the construction of district heating plants Positive Actual Infrastructure activities OO, C 5.3.4 ESRS S4 Consumers and end-users Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 327 Table 141 Risks: ESRS S4 Sustainability topic Risk [9d] Impact or dependence linked/ connected to the risk Stage Time horizon Short Medium Long Information-related impacts for consumers and/or end-users Confidentiality EU Regulation 2016/679 - Personal Data Protection Code Potential impacts of an economic-financial nature as well as reputational for the A2A Group as a result of the company’s possible failure to comply with the obligations and fulfilments required by Privacy Law. Risk arising from impact OO Information-related impacts for consumers and/or end-users Confidentiality ICT Security Unauthorised access to and theft of material/ sensitive information from the Group’s systems, employee PCs and/or mobile devices, which may expose the Company to loss of competitive advantage or result in administrative, financial or disqualification sanctions. Risk arising from impact OO Personal safety of consumers and/or end-users Health and safety Quality of distributed water Potential reputational damage for the Company and the Group as a result of initiatives by local communities which, on the basis of non-accredited and recognised procedures, erroneously certify the presence of pollutants with concentrations above the limits established by law in the drinking water distributed by A2A Ciclo Idrico, as well as the introduction of more restrictive regulations that render the water distributed non-compliant. Risk arising from impact OO Information-related impacts for consumers and/or end-users Access to (quality) information Customer satisfaction Possible reduction in customer satisfaction levels as a consequence of the potential prolonged unavailability of both CRM and front-end systems and IT infrastructures; this could lead not only to image damage for the Group, but also to the loss of customers with economic repercussions. The presence of several applications and the management of numerous suppliers may lead to longer timeframes for resolving infrastructure and application problems. - OO Table 142 Opportunities: ESRS S4 Sustainability topic Opportunity [9d] Impact or dependence linked/ connected to the opportunity Stage Time horizon Short Medium Long Social inclusion of consumers and/ or end-users Access to products and services High level of appreciation of the territory for services with high quality standards - OO; Cross- cutting along the VC Social inclusion of consumers and/ or end-users Access to products and services Development of products and services with high added value (e.g. post-meter and e-mobility services). - OO, EE 328 A2A Report on Operations 2024 Sustainability Statement By the end of 2024, the Market Business Unit customer base consisted of domestic customers, small businesses, VAT numbers, condominiums, SMEs, large service and industrial companies, and bodies and subjects of the public administration. With reference to A2A Energia, vulnerable customers are individuals or groups who, for various reasons, are in a disadvantaged position compared to other consumers. A distinction must be made between vulnerable gas and electricity customers; in fact, the former are: • People over 75 years of age. • People in an economically disadvantaged position. • Subjects with disabilities within the meaning of Italian Law 104/92. • Subjects whose utility is in emergency housing due to calamitous events. Vulnerable electricity customers are instead: • People over 75 years of age. • People who have an economically disadvantaged condition. • People whose utilities are also used to charge life-saving medical devices. • Subjects covered by Italian Law 104/92. • Subjects whose utility is within an emergency housing for calamitous events. • Subjects whose utility is located on a non- interconnected minor island. In the gas, electricity and water cycle sectors, there are legal and regulatory provisions to protect financially fragile consumers, known as gas, electricity and water bonuses. The companies of the Smart Infrastructures and Market BUs active in these areas contribute to the proper functioning of these mechanisms by complying with the regulations in force. At the regulatory level, enhanced protections are also provided for the utilities of critical public services (e.g. hospitals, nursing homes, schools, prisons, military facilities, etc.). [12] With regard to risks and opportunities arising from impacts, none were identified that were restricted to only a part of consumers and/or end-users. Strategy S4 ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model [10] The scope of the disclosure includes all consumers and/or end-users who may be affected by the Company. [10c, 10d] The Group’s strategy is aimed at fostering the positive use of its services by all consumers and end-users through the implementation of a series of initiatives aimed at minimising negative impacts and eliminating them where possible, while enhancing positive ones. The strategy and business model are continuously monitored in order to adapt them to any emerging and as yet unmanaged impacts, risks and opportunities. [10ai, ii, iii, iv, 11] Some of the distribution services managed by the Smart Infrastructures BU (BSI) concern energy carriers that are intrinsically dangerous for all types of users, in particular electricity, natural gas and high- temperature water used for district heating. Dangers to consumers and more generally to the community may arise from unintentional (e.g. accidents resulting from excavations or works by third parties) or intentional (e.g. for terrorist purposes) misuse of the infrastructure managed by the Companies of the Smart Infrastructures BU. In the provision of their respective services, the Smart Infrastructures BU companies use some sensitive data related to end-users (e.g., personal data, address, consumption data, payment data, etc.). This data is processed in accordance with all applicable regulations to protect the confidentiality and privacy rights of users. The products or services for which exact and accessible information is needed to avoid potentially harmful use are only those infrastructural elements accessible to end-user customers, e.g. electricity, gas and heat meters and charging stations. These elements are installed, operated and maintained according to the technical and safety regulations in force. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 329 archiving services. In addition, the data may be disseminated through publication in print media, websites, Company intranet sites, and social channels, subject to the express consent of the users. • Transfer of Data: personal data is processed within the European Economic Area (EEA). Should it become necessary to transfer data outside the EEA, this will be done on the basis of appropriate safeguards required by the Privacy Regulation. • Retention Period: personal data are retained for the time necessary to achieve the purposes for which they are processed or to comply with legal obligations. For marketing activities, data may be processed for up to 24 months after collection. [16a, 17, AR9, AR13] The Human Rights Policy, presented within disclosure requirement S1-1, with reference to consumers and end-users, deals with the topics of: • Digital inclusion: the A2A Group promotes digital, social and geographical inclusion and supports the dissemination of new smart and digital technologies. In this context, the Group promotes innovation, developed in partnership with universities, research centres and start-up, in order to continuously develop new services that are useful and functional to improve the quality of life of people and communities. • Privacy: the A2A Group respects its stakeholders’ right to confidentiality and privacy and is committed to the correct use of the personal data and information it is provided. In particular, it is committed to processing personal data and information in a manner that respects fundamental liberties and rights, and the dignity of data subjects, with specific reference to the confidentiality, personal identity, and personal data protection. The A2A Group guarantees that personal data are processed lawfully and in accordance with the provisions of current regulations, ensuring, in particular, the relevance of data processing to the stated and pursued purposes. To this end, the A2A Group has adopted an organisation and management model and procedures for personal data aimed at protecting the data subject and guaranteeing the correct application of the legislation on the protection of personal data. Impact, risk and opportunity management S4-1 Policies related to consumers and end- users [15] With specific reference to the provisions of the Policies adopted by the Group in relation to consumers and end-users, the following should be noted: Information on the processing of personal data: this is a mandatory information document pursuant to Articles 13 and 14 of EU Regulation 2016/679 of 27 April 2016, which provides explanations regarding the processing of personal data of customers and consumers. The latest update of the A2A Energia document is dated June 2024. The document is addressed to customers, former customers and future customers (prospects), who in this case can be considered ‘consumers’. The information document is on the Group’s website and is accessible to all. Internal procedures have been developed for data management, including workflows and risk analysis. These procedures help to identify and mitigate the risks associated with data management, ensuring that sensitive information is adequately protected. In addition, privacy management in communication campaigns is a key aspect carried out through a few key points: • Privacy Consent: during communication campaigns, users’ privacy consent is collected. This process includes displaying dedicated scripts for collecting consent and recording the authorisations provided by users. • Data processing: personal data collected during campaigns may include identifying information, contact data and image data, such as photo and video footage. This data is processed in accordance with the principles of lawfulness and fairness, guaranteeing the confidentiality and rights of the persons concerned. • Disclosure of data: personal data may be disclosed to companies providing IT, social media management, marketing and 330 A2A Report on Operations 2024 Sustainability Statement In continuity with the activation of the toll-free number dedicated exclusively to consumer associations, A2A Energia has also provided an online form dedicated specifically to them in order to provide information and support on everything concerning commercial practices for consumers. In September, we also met with representatives of the Consumer and User Directorate of ARERA to present our ongoing commitment to consumers and their associations. Thanks to the collaboration with the IRCAF Study Centre, A2A and consumer associations were involved in the Conferences on Artificial Intelligence, Energy Poverty, the Energy Market and the Water Service in 2024. [20a] In 2024, consumer associations were involved in the presentation of A2A Territorial Sustainability Reports throughout the country, as part of the Multi-stakeholder Forums and ‘Energy Exchange’ events organised by Acinque Spa in the territories of Como, Monza and Lecco. In April 2024, an open meeting dedicated to CERs (Renewable Energy Communities) was organised, in which a representative of the consumer associations and the GSE participated. Representatives of consumer associations are constantly involved in the various activities carried out at both national and territorial level, depending on the activity in question. [20b] Engagement activities with consumer associations are based on transparency and mutual collaboration. With constant dialogue throughout the year, the types of engagement foreseen are adaptable to the subject matter of the consumer association, as is the frequency of the engagement itself. This dialogue is based on constant listening and synergy with national and territorial consumer associations, and also includes the implementation of proposals and projects to mitigate any negative impact on territories as well as to provide additional services to consumers. A2A positions itself as a promoter of dialogue, actively participating in numerous campaigns proposed by associations to raise public awareness on topics of conscious consumption, ecological transition, and [16b] In relation to the engagement of consumers and/or end-users, please see what is stated within disclosure requirement S3-1 on the subject of continuous listening and dialogue to best understand end-user interests. [16c] No human rights impacts on consumers and end-users have been found. For further details on human rights, please see disclosure requirement S1-1. S4-2 Processes for engaging with consumers and end-users about impacts [20] Constant relations and dialogue with territories, civil society and consumers, in particular through consumer associations, represent a strategic element for the Group and its business activities, since they enable it to identify and understand the main needs and expectations of its stakeholders, directing its investments in the best way possible to build consensus and alliances in the territories and with the communities of reference, promoting our values to the varied set of stakeholders. In 2024, consumer associations were involved in the presentation of A2A Territorial Sustainability Reports throughout the country as part of the Multi-stakeholder Forums and events organised by Acinque Spa - Scambi di Energia - in the territories of Como, Monza and Lecco. In April, an open meeting dedicated to CERs \- Renewable Energy Communities - was organised with the participation of the GSE as well as a representative of the AA.CC. Thanks to the constant and fruitful cooperation with the AA.CC, we participated in the CODICI project carried out together with ten other consumer associations under the name ‘ricomincio da tRe’ (Riuso Riciclo e Riparo) [Starting again from thRee (I reuse, recycle and repair)], aimed at stimulating discussion on the circular economy and addressed to local students, financed by the Ministry of Enterprise and Made in Italy. Two meetings were organised: a visit to the waste-to-energy plant in Como and the Verziano (BS) purification plant. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 331 and/or contractually established within the scope of concession and entrusting agreements. The consumer’s perspective is monitored based on the provisions and service levels laid down in the sector regulations and agreements to which the BU companies refer and which guide their actions and investments. [20d] In relation to the above-mentioned structured engagement activities, their use and effectiveness are periodically monitored. S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns [25a] The Group has a structured process designed to identify potential negative impacts, manage them and remediate them. In accordance with ARERA’s consumer protection regulations, A2A Energia works to protect consumers’ rights, providing information and tools to resolve disputes and promoting transparency in contracts and bills. A2A Energia is required to comply with very stringent commercial quality indicators defined by ARERA and divided into two levels: general and specific. With the Integrated Sales Quality Text (TIQV, Annex A of Resolution 413/2016/R/ com as amended and supplemented), ARERA has provided a further tool to protect energy consumers. The aim is to ensure maximum efficiency and timeliness in both the handling of complaints and the rectification of billing errors. The TIQV subjects the supplier to stringent quality levels, against which it is measured and periodically monitored by ARERA. In the event of non-compliance with these standards (known as specific standards), the supplier is obliged to pay the customer financial compensation, subject to the cases of exclusion of the right to automatic compensation listed in Article 20 of the TIQV. In addition, A2A Energia has an internal support system for all customers and handles every request and practice itself, using different channels to meet customers’ needs. Moreover, vulnerable customers may at any time choose a free market offer with any seller or, alternatively, they can request to be sustainable development. The Group always offers a significant technical contribution and corporate know-how within the framework of such initiatives, taking part in conferences, meetings and training events. Each year A2A organises training and information meetings for consumer associations on various topics of common interest in the areas of energy, environment, water and waste. Through these activities, the Group develops and consolidates profitable relationships with consumer associations, local movements and citizens’ committees every year, with the parallel aim of protecting the consumer in relation to all the Group’s areas of interest, at both national and territorial level. The current articulation of the relationship with these associations includes structured activities which arise from the collaboration with some particular consumer associations, and occasional events, organised annually according to need. [20c, AR15] The operational and ultimate responsibility for such engagement falls on a specific role within the Group which is part of a broader function. In fact, each activity is periodically monitored by the Regulatory Affairs structure, and in some specific cases is also reported to the CEO. As far as the municipal sanitation operating companies are concerned, the process of updating the Service Quality Charters continued, which involved - on the one hand - the municipalities as territorially competent bodies and - on the other - consumer associations. The Group’s commitment in this sector has also been substantiated in the contributions offered, individually or as an association, to the definition of the standard tender scheme for the assignment of the urban waste management service put up for consultation by ARERA. The companies of the Smart Infrastructures BU mainly operate in regulated sectors where efficiency and service quality levels are defined and monitored by sector authorities (typically through compensation systems to users or collected at system level in the event of performance not meeting defined objectives) 332 A2A Report on Operations 2024 Sustainability Statement [25b] The main channel, established so that consumers and/or end-users can communicate their concerns or needs directly to the Company and receive assistance therewith, is through the Company’s Consumer Association Relations function. Both the contact persons of the various Business Units of the Group and the contact persons of the associations can report to this function. In addition, the Anti-Fraud toll-free number has been in operation since 2012 and the A2A Energia toll-free number has been available to consumer associations since October 2023. Furthermore, thanks to the always open and collaborative dialogue with the associations, an SMS reminder of contract renewals was implemented in 2024 as a voluntary measure. With the aim of strengthening the listening and dialogue phase with its customers, alongside the toll-free number dedicated exclusively to consumer associations activated in 2024, a form via a web channel has been provided. Dedicated contact channels, managed by a team of A2A Energia internal consultants with many years of experience, have the task of assisting the Associations’ contacts in this important moment of discontinuity and providing answers regarding the evolution of the energy market, but also in relation to possible problems that have arisen during the contractual life cycle and that have been reported to their desks by A2A Energia customers. Checks are also carried out on the actions of business partners in order to avoid inefficiencies to contracted customers or to prevent any unfair business practices. In particular, checks are carried out on the compilation and uploading to the system of paper contracts and Vocal Orders (registration of the contract entered into by telephone), qualitative checks on the sales activities of telephone channels through ‘simulated’ sales proposals (known as Mystery Calls) and accurate Compliance Risk Assessments aimed at verifying compliance with privacy regulations, contact policy 1 and IT security according to Group policies. A2A Energia provides assistance to customers through various physical channels, through the toll-free number and the numerous branches throughout the territory, and through digital channels, such as the website and app. supplied under the economic and contractual conditions defined by the Authority (Vulnerability Protection Service). Household customers who fall into the vulnerable category may continue, even after July 2024, to be covered by the greater protection regime with regard to electricity, even though this service has now officially ended. All other non-vulnerable domestic customers are obliged to sign up for an offer in the free energy market, so as not to automatically switch to the Gradual Protection Service, with contractual and economic conditions set by ARERA. For gas, vulnerable customers were instead transferred to the Vulnerability Protection Service in January 2024\. This system refers to economic conditions established by ARERA, which are quite similar to those of the protected system. To protect the less well-off sections of the population and in response to social emergency circumstances, the sales companies apply the measures defined by the ARERA: the social bonus for economic hardship and the electricity bonus due to physical discomfort. The social bonus for economic hardship is a measure aimed at supporting consumers’ electricity and gas supply expenditure based on specific parameters, such as ISEE or family size. The electricity bonus for physical discomfort is, instead, focused on supporting expenditure on the supply of electricity for households with a member in a condition of physical discomfort. The respect for customers’ privacy is an issue to which all the Group’s commercial companies pay particular attention: the protection of the personal data of the people with whom the companies come into contact for various reasons remains one of the A2A Group’s main objectives. In particular, in compliance with the principle of accountability, companies dedicate particular care to providing transparent and clear information to their customers, to adopting adequate security measures to protect data, and to guaranteeing the exercise of data subjects’ rights. 1\. This involves the management of customer contact and subsequent commercial proposals depending on the level of privacy consent given by the customer. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 333 [25d] In order to increase the effectiveness of the systems set up by the Consumer Association Relations function and promote their use among potential users, periodic verification meetings are planned at both the Group level and with stakeholders at the association level. In the regulated sectors, any negative consequences caused to end-users by inefficiencies in the services provided (i.e. non- compliance with the defined SLAs) are generally subject to user compensation mechanisms at the expense of the service provider (i.e. the companies of the Smart Infrastructures BU). The service provider is obliged to report on the level achieved with respect to the SLA for each individual service provided. The operators’ monitoring and reporting systems are subject to verification by the sectoral authorities. The BU Companies constantly monitor the performance of non-SLA services and the payment of any compensation for reporting purposes, as these have a negative economic impact, in order to identify and implement possible remedial actions as quickly as possible. [26] The contact channels and complaint systems made available by the companies of the Smart Infrastructures BU are well publicised and widely used by the end-users of the services provided. In most cases, the presence and accessibility of such mechanisms responds to regulatory requirements, compliance with which is monitored by the sectoral authorities. The Fraud Helpline of the Market BU Companies received 4,622 calls in 2024. Of these, 2,792 are related to unfair business practices by other operators and 1,830 related to other cases. In this regard, on its website, A2A Energia has provided a section dedicated to telephone scams, in which guidance is given to users on how to protect themselves from any unfair commercial practices. With reference to A2A Energia, if the customer does not find a resolution to his/her request, he/ she may file a complaint using a special form on the website, or using more traditional channels such as certified email and postal mail. All channels for assistance and handling complaints are prominently advertised on the A2A Energia website, where extensive forms are available, as well as inside bills. Moreover, if the customer does not deem the complaint having been handled adequately, he/she may decide to take advantage of specific procedures for resolving disputes with A2A Energia, which are the Joint Conciliation and the Conciliation Service of ARERA. In the case of structured initiatives such as the Fraud Helpline, annual financial support is provided to the association that manages it on behalf of A2A Energia. The companies of the Smart Infrastructures BU have set up and provided (almost always in application of regulatory provisions) contact channels through which users can send enquiries, complaints and reports of faults or inefficiencies. The main channels are: telephone (call centres and SMS messaging services), digital (email, webforms, reserved areas on company websites, virtual assistants, whatsapp) and physical (customer counters). [25c] The service level of these contact channels is in many cases set by the regulators and is all the higher the more critical the service is: for example, the emergency call centre for electricity, gas and water distribution services is active 24 hours a day and subject to a Service Level Agreement (SLA) on operator response times. In some cases, the time taken to process requests received is also subject to SLAs, in particular for the response to information requests and written complaints. End-users and customers of the services of the BU Smart Infrastructures can also access the conciliation tools for the out-of-court settlement of disputes relating to the services provided by the sector authority, in particular ARERA for electricity, gas, water and heat supply and distribution services, and AGCOM for telecommunication services. 334 A2A Report on Operations 2024 Sustainability Statement S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities [30, 31a, 31b, 31c, 32c, 33a, 33b, 40, 41a, 41b, 41c, AR42] In relation to the material impacts, risks and opportunities, the A2A Group has planned a series of actions to mitigate negative impacts and/or generate positive ones. In addition, as part of the Sustainability Plan, a series of targets were defined in relation to consumers and/or end-users. Each objective is measurable through targets up to 2035. Each KPI has a specific calculation methodology, in order to make its measurement objective and uniform over time. The measurability of results over time also serves dedicated reporting and monitoring activities with the ultimate aim of analysing trends and performance. The objectives and related actions have a scope of applicability consisting of the entire Group, i.e. the staff structures of the subsidiaries, and cover a time period consistent with that of the Strategic Plan. With regard to possible retaliation against users who report problems and inefficiencies, it should be reiterated that the response to requests for information and complaints and the generality of the services provided are subject to SLAs, with compensation payable by the operator in the event of non-compliance, and that the above-mentioned out-of-court settlement tools established at system and Group level exist. Metrics and Targets S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 335 Joint Conciliation Conciliation is an out-of-court dispute resolution method that allows disputes between consumers and businesses to be settled quickly, easily and inexpensively. It is based on protocols signed between consumer associations and the individual company, which set the rules to be followed by the parties to resolve individual disputes. The conciliation procedure is on a voluntary basis: the agreement reached by the parties is submitted to the consumer, who is free to accept the proposed solution or to turn to ordinary justice. Since 2016, the A2A Group has voluntarily signed a Reconciliation Protocol between A2A Energia Spa, Aspem Energia Spa, Unareti Spa, A2A Ciclo Idrico Spa, A2A Calore e Servizi Spa, ASVT Spa, Varese Risorse Spa, Linea più Spa, Linea Reti e impianti Spa, LD Reti Spa with the following 17 consumer associations: • Acu • Adiconsum • Adoc • Adusbef • Altroconsumo • Assoutenti • Casa del consumatore • Cittadinanzattiva • Codacons • Codici • Confconsumatori • Coniacut • Federconsumatori • Lega consumatori • Movimento consumatori • Movimento difesa del cittadino • Unione nazionale consumatori In 2021, the companies of the Acinque Group and the consumer association UDICON joined the Protocol. In January 2023, a further update was made to include the AEB Group Companies in the agreement. Since 2021, the Single Protocol signed with the aforementioned associations and the Joint Bodies of ACEA, ENEL, EDISON, ENI PLENITUDE, IREN and E-ON has also been active. As an alternative to Joint Conciliation, it is possible to carry out the mandatory attempt at dispute conciliation in the energy, water and district heating sectors at the Customer Conciliation Service set up by ARERA. In 2024, the Conciliation Secretariat of the A2A-Consumer Associations ADR Body received 96 requests, having received just as many in 2023, on behalf of gas and electricity customers, all concerning A2A Energia and related to consumption metering, billing and alleged unilateral changes to contracts. The following objectives are related to the material topic consumers and end-users: Table 143 Digital Action KPIs KPIs detail 2024 2027 2030 2035 Quality Maintain high quality standards of the services supplied by keeping high customer satisfaction levels CSI Call Center A2A Energia Customer Satisfaction Idex of the Call Center service. In 2024 is published the data for 2023 91% (national average 87.7 )* > sector national average > sector national average > sector national average Customer Satisfaction Amsa – (Milan/ Municipalities) Average between the synthetic index of customer satisfaction carried out by the Municipality of Milan and the satisfaction index resulting from customer surveys satisfaction carried out by A2A in the Municipalities in which Amsa operates 7.70 7.7 0 7.7 0 7.70 Customer Satisfaction Aprica Average satisfaction ratings resulting from customer surveys satisfaction carried out in the territories in which it operates Aprica 74.2 75.9 76.5 78.5 * The figure refers to 2023, as the figure for 2024 will be available in the second half of 2025. 336 A2A Report on Operations 2024 Sustainability Statement Information-related impacts for consumers and/or end-users The Group adopts a series of ICT and cybersecurity safeguards to ensure secure data management, specifically: • drafting and continuously updating the Group ICT Security Procedure for crisis management; • implementation of ICT infrastructure and systems to protect against cyber threats and to protect sensitive data; • certification of the information management system according to ISO 27001. Table 144 Action Unit of measurement CapEx* 2024 OpEx* 2024 Future CapEx* (to 2035) Future OpEx* (to 2035) Description of the future objective to be achieved (if defined/available) ICT systems to protect against cyber threats and to protect sensitive data € 457,121 582,892 5,369,000 9,789,204 The planned operating expenses and investments are aimed at maintaining, strengthening and updating all ICT systems of the Market BU, in order to ensure the protection of the IT infrastructure against cyber threats and the protection of sensitive customer data and protect * These amounts are included in operating costs and investments in the Company’s Financial Statements. Personal safety of consumers and/or end-users To ensure the safety of consumers and end-users, the Group: • makes investments in Research & Development, aimed at service innovation (e.g. electricity storage systems are being studied to support network development and supply continuity); • implements projects and carries out - together with consumer associations - activities aimed at preventing consumer fraud; • constantly monitors the concentration of pollutants in the treated and subsequently distributed water, by means of spot analyses carried out by external laboratories on the main chemical-physical parameters, such as BOD and COD, nitrogen and phosphorous loads, and provides reports on the subject (for more details please see ESRS E-2). In addition, the Group is also active through collaboration with universities to test innovative processes aimed at increasing the purification efficiency of its plants. Social inclusion of consumers and/or end-users With reference to the social inclusion of consumers and/or end-users, the Group: • uses IT platforms to collect online reviews and periodically analyses customer satisfaction in order to intercept any disservices or areas for improvement with respect to the services provided, especially with a view to their accessibility; • promotes initiatives for constant dialogue with local communities and authorities focused on improving the accessibility and usability of services. For activities related to the Energy Bank, please see section S3-4. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 337 The objectives related to the material sub-topic are: Table 145 Digital Action KPIs KPIs detail 2024 2027 2030 2035 Quality Maintain high quality standards of the services supplied by keeping high customer satisfaction levels Digitalization of Customer Care: digital contacts of total Number of digital contacts (email, chat, social, whatsapp) / Total number of contacts (Digital + Sportelli + Call Center) 24% 30% 33% 55% Interventions on Group sites for evolved interactivity - number/ year Sum of all interventions carried out on the Group’s sites in the year of analysis 70 100 115 140 Number of active supplies bollett@mail - MARKET BU Total number of supplies for which the bollett@ mail service is active 2,102,484 2,634,807 3,265,582 4,440,358 [31d] Currently, there are no structured systems in place to identify the actions needed in response to an adverse impact on consumers and/or end-users. Based on input from authorities and what has emerged from engagement, customer care, stakeholder dialogue and case studies, the Group defines actions in relation to needs. [32a] The Company has appropriate procedures, certified ISO management systems, and organisational structures in place to identify the actual and potential negative impacts of its activities on consumers and end-users and to define and implement appropriate response actions. [32b] Currently, there are no intervention approaches to identify the actions needed in response to a significant negative impact on consumers and/or end-users. [34] In all its activities, in the provision of products and services, the A2A Group does not cause or contribute to causing material adverse impacts on consumers and end-users. In particular, the respect for customers’ privacy is an issue to which all the Group’s commercial companies pay particular attention: the protection of the personal data of the people with whom the companies come into contact for various reasons remains one of the A2A Group’s main objectives. In compliance with the principle of accountability, companies dedicate particular care to providing transparent and clear information to their customers, to adopting adequate security measures to protect data, and to guaranteeing the exercise of data subjects’ rights. Regarding potential impacts linked to corporate marketing or institutional communications, the A2A Group refers to all ARERA indications to prevent such eventualities. [35] Through the channels currently available to consumers and end-users from the various Group companies, no serious human rights issues and incidents related to these subjects have come to light. [37] For the management of material impacts related to consumers and end-users, numerous corporate functions are involved, covering different types of issues and thus potential impacts. The functions involved are Group Compliance, Legal - Commercial Contracts and Intellectual Property, Infrastructure and Energy Retail Regulation and Corporate Antitrust Compliance; all marketing functions of the sales companies are also involved. [AR34] The initiatives or processes whose primary aim is to deliver positive impacts for consumers and/or end-users are designed to also support the achievement of one or more of the UN Sustainable Development Goals (SDGs). 338 A2A Report on Operations 2024 Sustainability Statement Table 146 Impacts: ESRS G1 Sustainability topic Impact Type Stage Time horizon Short Medium Long Corporate culture Corruption and bribery Incidents Anti-competitive conduct, monopolistic practices, corruption with negative repercussions on the economy and markets Negative Potential OO, P, GN Corporate culture Protection of whistleblowers Corruption and bribery Prevention and detection, including training Awareness and dissemination of ethical corporate culture, based on the principles of integrity, fairness, non-discrimination and respect for human rights by management, employees, business partners and stakeholders Positive Actual OO Political engagement and lobbying Supporting public policy development through lobbying activities Positive Actual OO Management of relationships with suppliers including payment practices Contributing to the improvement of suppliers’ ESG performance and social and environmental impact in the communities in which they operate, including through qualification and selection policies that incorporate social and environmental sustainability criteria Positive Actual OO, EE, P, C, GN, R, I Management of relationships with suppliers including payment practices Negative impacts on the economy of communities, caused by over-delayed payment practices that can cause difficulties for SMEs Negative Potential OO Management of relationships with suppliers including payment practices Negative effects related to the lack of and/or incorrect assessment of suppliers, particularly on issues of compliance with environmental, social and economic regulations Negative Actual OO, EE, P, C, GN, R, I 5.4 Information on Governance 5.4.1 ESRS G1 Business conduct Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 339 Table 147 Rrisks: ESRS G1 Sustainability topic Rrisk Stage Time horizon Short Medium Long Corporate culture Corruption and bribery Incidents Corruption risk in Group activities Potential image and economic-financial impacts for the Group arising from possible bribery or ethically incorrect conduct by the Group or its employees, particularly in the context of commercial and/or development activities carried out also in foreign countries, and which could also have 231 relevance. OO Corporate culture Corruption and bribery Models 231 Potential impacts of an economic-financial and reputational nature for the A2A Group as a result of the possible inadequacy of the “231” Organisational Model of one or more Group companies in conjunction with a possible charge of offences committed by personnel of the same Group company and for which offences there is the administrative liability of the Company pursuant to Legislative Decree no. 231/2001, as amended and supplemented. OO Corporate culture Sustainability in Governance Potential impacts of a reputational and economic-financial nature for the A2A Group as a result of any ineffective synthesis between profitability and sustainability objectives, entailing for example failure to comply with sustainability targets, involvement in investigations and/or criminal proceedings for non-compliance or misconduct by management and/or employees, the making of choices that are not based on the principles of sustainability and the SA8000 standard, with a potential loss of competitiveness in the long term, all in consideration of the A2A positioning as a Life Company. OO Management of relationships with suppliers including payment practices Ethical requirements of suppliers Potential image impacts for the A2A Group if, in the case of a supplier or sub-supplier, critical issues emerge from an ethical point of view (acts of corruption, contribution irregularities or other illegal conduct or conduct contrary to ESG principles of the company or its directors). OO Table 148 Opportunities: ESRS G1 Sustainability topic Opportunity Stage Time horizon Short Medium Long Management of relationships with suppliers including payment practices Responsible management of the supply chain Transversal along the VC Corporate culture Training, internal communication, and projects to enhance ESG policy integration at all levels of the organization OO 340 A2A Report on Operations 2024 Sustainability Statement Impact, risk and opportunity management G1-1 Business conduct policies and corporate culture [7] The cornerstones of the A2A Group’s approach to defining, managing and promoting its principles of conduct and business culture are set out in the Group’s policies, in particular in the Code of Ethics, the Anti-corruption Policy and the Human Rights Policy (for more information on the specifics of the policies, see the dedicated section within ESRS 2). The Code of Ethics, to be considered an integral part of the Organizational, Management and Control Model adopted by A2A S.p.A. and the other companies of the A2A Group pursuant to Legislative Decree 231/2001, is aimed at establishing the fundamental ethical principles, rules of conduct and responsibilities that the A2A Group recognises, respects and adopts as indispensable and compulsory values for all recipients. The Code outlines the basis for ensuring that the A2A Group’s activities are carried out in compliance with the principles of fairness, transparency, diligence, honesty, mutual respect, loyalty and good faith, rejecting all forms of discrimination, corruption, forced and child labour. The aim is to protect the interests of stakeholders and to promote an efficient, reliable and regulatory-compliant business model. [9] The Code of Ethics is disseminated to stakeholders through specific and appropriate communication activities, such as publication on the website, the company intranet and posting on notice boards. Moreover, to ensure that all addressees have a correct understanding of the Code, the A2A Group organizes a training program that is appropriate and modulated according to the roles and responsibilities of the addressees. The Anti-Corruption Policy aims to create a structured framework to counter corrupt phenomena and promote the principles and regulations necessary to prevent all forms of corruption, whether direct, indirect, active or passive, including incitement. It is also proposed to ensure compliance with the relevant provisions of the A2A Group’s Code of Ethics and applicable anti-corruption laws. [20] In order to promote a proper understanding of the Policy and to emphasize the importance of compliance with anti-corruption regulations, A2A Group companies require all employees to complete a compulsory anti-corruption training program within six months from the date of hire, with different levels of detail depending on the recipients’ qualifications and their involvement in sensitive activities. [9] Finally, the Policy is made known to all those who have contractual relations with Group companies and is available to all stakeholders on the A2A Group’s institutional website. [10h, 21b] The Anti-corruption Policy identifies a number of activities in ‘sensitive’ areas that, even if only in the abstract, may facilitate corrupt practices, namely: • promotional and entertainment expenses; • sponsorships; • political contributions; • charitable and non-profit contributions; • facilitation payments; • interactions with civil servants; • relations with third parties (suppliers, customers, consultants, business partners); • acquisitions, mergers, and spin-offs; • keeping the books; • management of financial resources; • personnel recruitment and hiring. The functions operating within the aforementioned areas, being more exposed to the risk of corruption, are required to operate in compliance with the safeguards set out in the company’s regulatory documents, as well as in the organisational, management and control models adopted pursuant to Legislative Decree 231/2001. The Human Rights Policy, adopted to supplement and complete the Code of Ethics, aims to ensure the respect and promotion of human rights in the activities of the A2A Group and throughout the value chain. It aims to prevent any violation of these rights by promoting fair, respectful and non-discriminatory working conditions, both in internal operations and in relations with suppliers, partners and other stakeholders. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 341 Ethics, Anti-bribery Policy and whistleblowing system, 96% of A2A Group non-operational staff and 51% of operational staff have completed a training course in the last two years (a total of 75% of staff). During the same period, 90% of non-operational staff and 54% of operational staff completed a privacy training course (a total of 73% of staff) and 95% of non-operational staff completed a Human Rights Policy training course (as mentioned above, the Human Rights Policy course for operational staff was launched in December 2024). [9] The principles and rules set out in the aforementioned texts are incorporated into the company procedures that describe and regulate the processes that personnel must comply with in carrying out their activities, including the Organization, Management and Control models adopted pursuant to Legislative Decree 231/2001 by the companies of the A2A Group. Reporting mechanisms [10a] Employees of A2A Group companies, as well as self-employed workers, freelancers, collaborators and consultants who carry out their work for A2A Group companies, as well as workers or collaborators of external companies that provide goods or services or carry out works for A2A Group companies, may, through a specific channel ([11] the so-called Whistleblowing system pursuant to legislative decree 24/2023 implementing Directive (EU) 2019/1937 of the European Parliament and of the Council), communicate, even anonymously, information relating to breaches, even suspected breaches, of regulatory provisions and principles enshrined in the policies adopted by the company, to be understood as conduct, acts or omissions that damage the public interest or the integrity of the public administration or the A2A Group Companies, of which the whistleblower has become aware in the context of work and which relate to unlawful conduct as defined in Legislative Decree 24/2023\. The aforementioned reporting channel is made available by the A2A Group through a special IT platform and guarantees the confidentiality of the identity of the whistleblowers, the other persons involved and the content of the reports. [10c] No form of retaliation or discriminatory measure, even attempted or threatened, is permitted or tolerated against the whistleblower, and these protections extend to any person connected to the whistleblower, such as facilitators (i.e., persons assisting the whistleblowers in the The Policy is addressed to all those who work on behalf of the A2A Group, including employees, managers, members of corporate bodies, suppliers and business partners, as well as other parties who have relations with A2A Group companies. People with supervisory and coordination responsibilities are also responsible for ensuring that their employees comply with the Policy, by adopting the necessary measures to prevent, detect and report any violations. [9] The A2A Group, also by means of internal regulatory instruments, promotes the fundamental values of the main international and European conventions and declarations on human rights, undertaking, also through the adoption of the “Charter for equal opportunities and equality at work”, to the achievement of the objectives of equal opportunities, dignity and equality, and to the fight against all forms of discrimination. In addition, the A2A Group has adhered to the “Utilitalia Pact - Diversity makes a Difference” and the Manifesto promoted by “Valore D”, which aims to encourage female employment and gender equity as a lever for innovation and corporate growth. In addition, in order to encourage the complete understanding of the Policy by all A2A Group personnel, and to maintain a high level of awareness of the principles and values it contains, there is a specific and adequate training program about it. [9] The A2A Group is committed to ensuring that the Human Rights Policy is properly disseminated and understood, ensuring that it is adequately communicated to stakeholders. For this, appropriate channels are used, such as publication on the company intranet for employees and on the A2A Group website for consultants, agents, suppliers and business partners. [10c, 10g] Awareness-raising activities on the topic of compliance culture continued in 2024. In particular, a refresher module on privacy and a training pill on the whistleblowing system dedicated to non-operational staff were delivered, and, in December, a new and unique e-learning training course dedicated to operational staff was launched, covering legislative decree 231/2001, the Code of Ethics, the Anti-Corruption Policy, the whistleblowing system, the Human Rights Policy and privacy. It should be noted that, with reference to legislative decree 231/2001, Model 231, Code of 342 A2A Report on Operations 2024 Sustainability Statement • of the implementation of any improvement actions identified; • of the initiation of management measures within its competence, including, if the prerequisites are met, the exercise of disciplinary action. The Whistleblowing Committee shall provide timely feedback to the whistleblower on the outcome of the investigation and on any measures taken. The Whistleblowing Committee also monitors the proper implementation of improvement actions. The computer platform of the Whistleblowing system is accessible to anyone, through the A2A Group’s website, and therefore allows reports to be made, subject to the conditions laid down. Workers in A2A Group companies are also made aware of the whistleblowing system through specific internal communications, including posters on company notice boards to further promote awareness of it among operational staff. The awareness of the existence of this tool on the part of its workforce is evidenced by the high participation in the training course on this system, as well as in other courses referring to the same tool. In addition, the use of the channel is assessed by the A2A Group on the basis of the reports prepared, in aggregate form, by the Whistleblowing Committee and made available to the Board of Directors of A2A S.p.A., the administrative bodies of strategically important A2A Group companies and the respective Supervisory Boards through the Internal Audit Director (a member of the Whistleblowing Committee) as part of the Half-Yearly and Annual Internal Audit Reports. With reference to the remaining companies of the A2A Group, the Whistleblowing Committee informs the respective administrative bodies and Supervisory Boards on a half-yearly basis of the receipt, management and main contents of Reports concerning the companies themselves. whistleblowing process), persons in the same work environment as the whistleblower and linked to the reporter by a stable emotional or family relationship, co-workers and entities owned by the whistleblower, for whom the reporter works or which operate in the same work context. The processing of the personal data of the persons involved and/or mentioned in the reports, as well as of the whistleblowers, is carried out in accordance with the provisions of Legislative Decree 24/2023, EU Regulation No. 679 of 27 April 2016 (GDPR), Legislative Decree 196/2003, as subsequently amended and integrated (Privacy Code) and Legislative Decree 201/2018\. [10e] The preliminary investigation is managed by a special body, the Whistleblowing Committee, an autonomous collegial body, chaired by a member from outside the A2A Group, which receives the report in the first instance and then forwards it to the other two members. The Whistleblowing Committee checks, on a preliminary basis, whether the report is admissible. If, also following discussion with the Supervisory Board of the company to which the report refers, it is assessed that the facts reported fall within the scope of application of Legislative Decree 231/2001, the report is forwarded to the competent Supervisory Board, which is entrusted with carrying out the relevant investigation. If the report turns out to be admissible and does not concern (or concerns only in part) facts that are relevant under Legislative Decree 231/2001, the Whistleblowing Committee starts the investigation phase. At the end of the investigation, if there are no grounds to close the report, the Whistleblowing Committee informs the competent corporate bodies of the outcome: • of the adoption of the measures and/or actions that in the specific case may be necessary to protect the A2A Group Company, including the possible involvement of the competent authorities also in criminal proceedings; Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 343 G1-3 Prevention and detection of corruption and bribery [18a] The A2A Group’s Anti-Corruption Policy, in addition to applicable national and international laws and regulations, constitutes the reference for carrying out its activities in compliance with the principles aimed at preventing and repressing corruption in all its forms. As specified in the minimum disclosure requirement on policies contained in the ESRS 2 standard, the document aims to provide a systematic framework of reference in the fight against corruption, to disseminate within the A2A Group, as well as to all those who operate for or on behalf of companies belonging to it, the principles and rules to be followed to exclude corrupt conduct of any kind, direct and indirect, active and passive, including in the form of instigation, as well as, more generally, to ensure compliance with the provisions of the Group’s Code of Ethics and the applicable Anti-Corruption regulations. All recipients of the Policy shall be responsible \- to the extent their job duties require - for complying with the same. Furthermore, persons in a supervisory and coordination role shall be responsible for supervising compliance with the policy on the part of its own associates, and to implement measures for preventing, identifying, and reporting potential violations. With regard to the procedures to prevent the identification and addressing of allegations or cases of active and passive bribery, reference should be made to the whistleblowing system in the G1-1 disclosure requirement, [18b] where specific information is also provided on how to handle reports, and [18c] on information flows to the management and control bodies. [21a] The specific anti-corruption training programmes provided by the Group are addressed to all A2A Group employees and are carried out in both e-learning and in person modes. The training courses are differentiated for operational and non-operational personnel in order to ensure an adequate degree of depth in view of the tasks performed by the recipients, as well as to transfer knowledge through a concrete approach, including practical examples of situations that might occur in the performance of day-to-day activities. In order to verify the correct comprehension of the illustrated contents, all e-learning courses include a final test, the passing of which is a necessary condition for the certification of the training. [21b] 100% of the company’s workforce, and consequently the staff who perform tasks considered to be at risk of corruption, are covered by training on these issues since it is mandatory training for every type of employee of the A2A Group [21c] Members of the administrative, management and control bodies who are among the staff of A2A Group companies participate in the same training programs. In addition, specific training opportunities are periodically provided for the members of these bodies, also by the relevant Supervisory Boards. Metrics and Targets G1-4 Incidents of corruption or bribery [24a, 25a, 25b, 25c] In the reporting year 2024, there were no cases of proceedings concerning corruption and bribery. The amount of fines imposed for violations of laws against corruption and bribery is therefore zero, just as no follow- up action was taken on corruption cases, as no proceedings concerning corruption cases occurred during the financial year. [25d] With reference to criminal proceedings concerning corruption allegations engaging A2A Group companies and/or their employees, it should be noted that: • in 2019, we became aware of a proceeding that involved the company Linea Ambiente Srl: the trial, borne by the director of the company at the time of the facts, relates to the issuing, by the Province of Taranto, of the authorization to expansion of the landfill managed by the company itself and was concluded in first instance in 2022 with a sentence from the Court of Taranto condemning the natural person. The sentence did not become final as a result of multiple appeals, including that of the public prosecutor. The case is pending before the Taranto Court of Appeal and the next hearing is scheduled for 1 April 2025. In the resulting proceedings against the company for the corruption crimes referred to in art. 25 paragraph 2 of Legislative Decree 231/2001 344 A2A Report on Operations 2024 Sustainability Statement 15 November 2024, the Preliminary Hearing Judge of the Court of Monza remanded all 6 defendants before the Court of Monza for trial on 17 March 2025, for offences other than corruption. G1-5 Political influence and lobbying [29a] The development and strengthening of institutional relations is a strategic objective of the A2A Group which, as Europe’s leading multi-utility, has the responsibility to give voice to the sector. The aim is to put the experience that A2A has gained in its plants and in the territories served at the service of the institutions, also thanks to continuous engagement exercises with the territorial communities in which it operates. The representation offices in Rome and Brussels therefore represent a bridge for the transmission of experience gained in the territories and the anticipation of regulatory developments that mark political and legislative life in Italy and Europe. Dialogue and consultation work is also developed through relations with national, European and territorial trade associations, encouraging advocacy activities on issues of priority importance to the Group on these tables as well. Relations with Entities, Institutions and Associations are managed in accordance with the A2A Code of Ethics, in full compliance with current regulations and with strict adherence to the highest international standards of transparency. In particular, A2A and its representatives have signed the Code of Conduct of the Transparency Register established by the European Commission, European Parliament and Council. The frequently updated online portal details all advocacy activities and the Group’s commitment to serving institutions. The Chair of the Board of Directors has the following responsibilities: • jointly with the Chief Executive Officer, take care of institutional relations and external/media relations related thereto, with the Authorities, institutional bodies and organizations, including international ones, making use of the competent corporate functions; • in coordination with the Chief Executive Officer, represent the Company vis-à-vis relations with international and supranational organizations, Ministries, Regions and other local and regional authorities in general, as well as vis-à- vis relations with public or private entities; Linea Ambiente S.r.l. was remanded for trial. The proceedings are pending before the Court of Taranto with the next hearing set for 7 April 2025; • in 2019, there was news of a proceeding concerning a hypothesis of corruption contested by the Milan Prosecutor’s Office, in relation to some tenders announced by AMSA S.p.A. The company (as well as A2A Calore & Servizi S.r.l., which in the same proceeding was found to be a party aggrieved by the collusive conduct of companies that participated in tenders), joined the civil action. In 2021, the judge acquitted one defendant and granted the plea bargaining request of other defendants, who were ordered to pay AMSA S.p.A. costs. Sentence 13661 of 2 October 2023, the grounds for which were filed on 18 January 2024, rejected the claims of former employees and entrepreneurs for conduct ascribed to them during their participation in A2A Group tenders. Appeals were lodged. The setting of the hearing is pending; • in 2021, two proceedings became known that initially also included corruption hypotheses, but were subsequently pending for crimes other than corruption involving top management of A2A Group companies. One proceeding concerns a hypothesis of corruption for facts dating back to the period 2015-2017 in relation to some tenders announced by Gelsia Ambiente Srl, which was a civil party in the two proceedings that resulted. The trial before the Court of Monza, in fact, was split into two: an abridged procedure that was defined on appeal at the hearing of 8 April 2024 where the Court, in reforming the first instance ruling (the first instance ruling had acquitted the former general manager of the charges of the crime of bribery and had found him guilty of other contested violations), pronounced a ruling of acquittal for not having committed the deed in relation to all the charges, and an ordinary procedure that was defined at first instance at the hearing of 11 November 2024 with a ruling of conviction against another defendant. The other proceeding concerns the aggregation operation between AEB S.p.A. and A2A S.p.A. and an alleged over-valuation of the assets contributed by the latter. In November 2023, the Public Prosecutor of Monza requested indictment for offences other than bribery for six people, including the then president of AEB S.p.A. At the preliminary hearing on Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 345 • represent, in coordination with the Chief Executive Officer, the company in association and institutional relations. [29b] In compliance with its Code of Ethics and the related Anti-Corruption Policy, the A2A Group does not make any contributions directly or indirectly to any political party, movement, political and trade union organisation and committee, nor to their representatives or candidates, in Italy and abroad, apart from contributions due in accordance with specific regulations. [29c] The Group participates transparently in public consultations and joint procedures with institutional representatives at national and European level in compliance with Legislative Decree No. 231 of 8 June 2001, and in compliance with the code of ethics provided for in the Interinstitutional Agreement of 20 May 2021 between the European Parliament, the Council of the European Union and the European Commission on a mandatory Transparency Register. Institutional interlocutions primarily concern legislation governing the Group’s various core businesses, including environmental and waste management services; energy generation, sale and distribution; and management of the integrated water cycle and alternative charging infrastructure. [29d] Since 24 February 2021, the A2A Group has been enrolled in the Transparency Register (registration no. 409032241540-04) updated by the Interinstitutional Agreement of 20 May 2021 between the European Parliament, the Council of the European Union and the European Commission on a mandatory Transparency Register and has signed the Code of Ethics annexed thereto. At the national level, the Representatives of the A2A Group are duly enrolled in the Register of Interest Representatives of the Chamber of Deputies established by the resolution of the Presidency Bureau of 8 February 2017 (“Discipline of interest representation activities in the offices of the Chamber of Deputies”). [30] It is specified that the Group has no members of the administrative, management and control bodies who held comparable positions in the public administration in the previous two years. [AR12a] A2A incurs expenses for legislative monitoring, the realization and presentation of studies and in-depth studies. To this end, it spent 325,640 euro on strategic consulting activities in the fiscal year 2024. In addition, the A2A Group incurred association expenses of 2 million euro in fiscal year 2024. Table 149 Contributions to political parties and trade associations Euros 2024 2023 Politicians and political parties - - Trade associations 2,049,000 2,103,000 Other Associations/Organisations (promotion and dissemination of sustainability. Research and sector/thematic studies) 326,000 495,000 Total 2,346,000 2,598,000 346 A2A Report on Operations 2024 Sustainability Statement [AR13] The A2A Group is associated, directly or through other associations, with more than 100 local, national and European associations, including: • Airu • Assoambiente • National Confindustria • Territorial Confindustria • Elettricità Futura • Utilitalia It should be noted that the Group is not required by law to join the aforementioned associations. The Group also participates in the work of European trade associations, including: • Cedec • Cewep • Euroelectric • Eureau • Fead • Eurogas • European Energy Forum • Friends Of Europe G1-2 Management of relationships with suppliers [15a] As of 2021, A2A and all Group companies have adopted the Responsible Procurement policy to make purchasing management more sustainable. The aim is to create a responsible supply chain that integrates sustainability criteria at every stage, from selection to evaluation of supplier performance. The company also promotes the use of fair and transparent procurement processes that foster competition and cooperation between the different parties involved. The A2A Group’s commitment is realized through projects and initiatives of a different nature illustrated in the following paragraphs. [14] It should also be noted that there are currently no specific policies for the prevention of late payments. Sustainable Procurement Project [15b] Project aiming to integrate ESG evaluation elements in the selection and rating of suppliers. The evaluation of suppliers is carried out using the data provider ‘EcoVadis’. The methodology used is based - and is continuously updated - on international sustainability standards (UNGC, GRI, ISO and others), which were used to identify 21 indicators covering four main pillars: Environment, Labor and Human Rights, Ethics and Sustainable Procurement. For each parameter, the ESG rater gives a score that contributes to the final summary evaluation. The evaluation process takes into consideration the industry, the country and the size of the company being evaluated. In addition to expanding the coverage of suppliers in the evaluation process as much as possible, the project aims at the continuous improvement of suppliers’ ESG performance through the proposal of targeted development actions. These actions are evaluated and a set of recommendations is proposed on them that allow the ESG score to be increased, the so- called “Corrective Action Plan”, which is developed on the basis of the urgency of the suggested improvement action (high, medium or low priority) and the scope of intervention (environment, work and human rights, ethics or sustainable purchasing). Suppliers are informed of the program through continuous communication campaigns: on the A2A Group’s supplier portal, there is information content about the Sustainable Procurement project that alerts suppliers to the Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 347 their sustainable transition by promoting training activities and encouraging collaboration between companies to foster a shared and simplified approach to sustainability throughout the supply chain. Scope 3 Project In 2024, the Scope 3 project was launched, aimed at calculating and subsequently reducing supply chain-related CO 2 emissions in line with the Group’s Strategic Plan to 2035. These emissions include those produced by the production of goods and services purchased by A2A, such as the collection and transport of waste, the construction and maintenance of networks and plants, and the end-of-life management of products. This project involves an increasingly close collaboration with the Group’s suppliers to monitor and improve the sustainability of the supply chain. Supplier engagement began with the organisation of a live event, Supplier Call, dedicated to A2A partners, which was attended by over 700 suppliers. During the meeting, the top management of the department presented the highlights of the Group’s sustainability strategy, with a special focus on the role of suppliers, reiterating the strategic importance of sustainability in their operations. Following this first round of general engagement, the project includes a series of one-to-one collaboration activities with the Group’s main strategic suppliers to develop a strategy for reducing their emissions. A2A vendor rating system The process of selecting, evaluating and monitoring suppliers is now a well-established practice for the Group and, in recent years, A2A has undertaken to structurally integrate it with elements of sustainability. As of 2023, 30% of a supplier’s evaluation is ESG rating, which is therefore a rewarding factor when choosing a partner for new assignments. The Group has implemented processes and structures to manage specific risk areas, such as financial, cybersecurity, HSE performance and reputational risks. The identified risk areas are constantly monitored and action plans and their governance are defined. The risk management processes stipulate that a supplier with a high risk profile may incur management measures that may also result in its temporary exclusion from the processes for the allocation of new supplies. The partner selection process for awarding new supplies also includes environmental and/or social criteria in the initiative and encourages their adherence; a specific ESG clause is included in contracts, which requires the supplier to certify that it has obtained its ESG score within 6 months of the contract being awarded, if it did not have one when the contract was awarded. Post- evaluation rules for suppliers were defined in 2023, applicable from 2024, which provide for the inclusion of suppliers with insufficient ESG scores in a watch list. If such circumstances occur, the supplier will be required to make a mandatory improvement to be achieved within 12 months. The supplier may be removed from the ESG watchlist only following a re-evaluation of its sustainability performance and exceeding a defined threshold. The incentive system within the Procurement function The adoption of sustainable practices within the Procurement function is promoted by specific incentives: more than 25% of the function’s MBO (Management by Objectives) is made up of the achievement of KPIs related to the ESG area (order assigned to suppliers with ESG index, average ESG score on order, supplier monitoring design with implemented D&I policies and development of a climate transition plan). Engagement initiatives Starting in 2023, the ‘Sustainable Supply Chain’ project was launched, designed with the primary objective of supporting small and medium-sized enterprises (SMEs) in the A2A supply chain in improving their sustainability performance. In particular, three training documents, collected in a ‘Vademecum’, were developed to support SMEs in drafting their own Code of Ethics, formulating Environmental and Human Rights Policies, and providing the necessary tools to integrate sustainable practices into their activities. At the same time, dissemination and awareness-raising events were organized to effectively disseminate and apply the material produced, ensuring continuous support for the sustainable growth of partner SMEs. Again with a view to stakeholder engagement, as more fully described within the ESRS 2-SBM2 disclosure requirement, during 2024, the Procurement function participated in the roadshow of territorial forums organized by the A2A Group in its strategic territories. Fourteen meetings were held in which representatives of the function dialogued with local stakeholders and strategic suppliers with the aim of identifying collective actions to support companies in the area and, in particular, the A2A supply chain, in accelerating 348 A2A Report on Operations 2024 Sustainability Statement For supplies, works or services to which the Procurement Code applies, the payment terms are usually set at 60 days end of month date of invoice. In 2024, the Procurement function issued: • 6,359 free market contracts; • 1,933 contracts under the Public Procurement Code. [33b] The total number of payments made during the year by the A2A Group was 742,419. During 2024, no significant disputes arose with suppliers concerning payment delays in transport and trading, which account for about 70% of the Group’s invoice volumes. In addition, in line with company procedures, invoices are paid within the contractual terms, except in residual and insignificant cases, e.g. invoices subject to disputes for which approval for payment is suspended or different payment practices. Finally, it should be noted that the Group, for the future, has set itself the objective of formalizing a policy aimed at defining standardised rules for the management of payment times. The number of payments made represents the number of invoices paid to suppliers. This value excludes invoices paid to suppliers by ASM Energia and Ecodeco UK. In addition, any direct payments to suppliers (e.g. payments for company travel to the appointed travel agency) are made from general accounts and are not included in this figure. [33c, 33d] It is reported that during 2024, there was a court case due to late payments that resulted in a penalty of 3,490 euro. For the calculation of the number and value of court proceedings, only disputes exclusively concerning non-compliance with payment deadlines were taken into account, whether pending or concluded in 2024 with a finding of late payment. evaluation of offers. Sustainability monitoring is also ensured during contract execution through spot checks in the field. In the presence of serious non-conformities, the causes of poor performance and critical areas are examined in detail and corrective actions are identified. The greater weight given to the ESG component of the evaluation reflects the Group’s commitment to sustaining a premium for those suppliers with higher ESG scores. Diversity Equity and Inclusion Finally, in line with the Group’s Strategic Plan, targets to make the supply chain increasingly socially sustainable have been integrated into the Sustainability Plan to 2035: in 2025, at least 30% of orders will be placed with suppliers that implement policies to protect the diversity, equity and inclusion (DE&I) of their employees and suppliers. The target becomes progressively more challenging, reaching 70% in 2035. G1-6 Payment Practices [33a] The Group has estimated an average payment time from the due date of the invoice of 15 days for the year 2024, considering all contractual cases. [33b] The standard payment terms in the A2A Group’s Request for Proposal are, for supplies, works and services, 120 days end of month invoice date, and are subject to change following negotiation, so they may vary for each contract. Some categories of services, for which the standard terms of payment in the Request for Offers are deviated from in connection with specific legal requirements (i.e. Catering services and canteens: 60 days end of month invoice date and Road haulage services: 60 days end of month invoice date). Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 349 5.5 Certification of sustainability reporting pursuant to Article 81-ter, paragraph 1, of Consob Regulation no. 11971 of May 14, 1999, as amended and supplemented The undersigned, Renato Mazzoncini, as CEO of A2A S.p.A., and Luca Moroni, as Financial Reporting Manager of A2A S.p.A. also considering the provisions of article 154-bis, paragraph 5-ter, of Legislative Decree no. 58 of February 24, 1998, as amended, hereby attest that the sustainability report included in the report on operations has been prepared: • in accordance with the reporting standards applied pursuant to Directive 2013/34/EU of the European Parliament and of the Council of June 26, 2013 and Legislative Decree no. 125 of September 6, 2024; • the disclosure requirements established in article 8, paragraph 4 of Regulation (EU) 2020/852 of the European Parliament and of the Council of June 18, 2020. Milan, March 20, 2025 Renato Mazzoncini Luca Moroni (Chief Executive Officer) (Financial Reporting Manager) 350 A2A Report on Operations 2024 Sustainability Statement 5.6 Independent auditor’s report on the limited assurance of the Sustainability Reporting in accordance with Article 14- bis of Legislative Decree n. 39, dated 27 January 2010 EY S.p.A. Sede Legale: Via Meravigli, 12 – 20123 Milano Sede Secondaria: Via Lombardia, 31 – 00187 Roma Capitale Sociale Euro 2.975.000 i.v. Iscritta alla S.O. del Registro delle Imprese presso la CCIAA di Milano Monza Brianza Lodi Codice fiscale e numero di iscrizione 00434000584 - numero R.E.A. di Milano 606158 - P.IVA 00891231003 Iscritta al Registro Revisori Legali al n. 70945 Pubblicato sulla G.U. Suppl. 13 - IV Serie Speciale del 17/2/1998 A member firm of Ernst & Young Global Limited EY S.p.A. Via Meravigli, 12 20123 Milano Tel: +39 02 722121 Fax: +39 02 722122037 ey.com Independent auditor’s report on t he limit ed assurance of the Sustainabilit y Report ing in accordance wit h Art icle 14-bis of Legislat ive Decree n. 39, dat ed 27 January 2010 (Translation from the original Italian t ext ) To the shareholders of A2A S.p.A. Conclusions We have been appointed to perform a limited assurance engagement pursuant to Articles 8 and 18, paragraph 1, of Legislative Decree n. 125 dated 6 September 2024 (hereinafter "Decree") on the Sustainability Reporting of A2A S.p.A. and its subsidiaries (hereinafter "Group" or "A2A Group") for the year ended on 31 December 2024, prepared in accordance with Article 4 of the Decree, included in the specific section of the Report on operations of A2A Group. Based on the procedures performed, nothing has come to our attention that causes us to believe that: - the A2A Group Sustainability Reporting for the year ended on 31 December 2024, has not been prepared, in all material respects, in accordance with the reporting principles adopted by the European Commission pursuant to European Directive 2013/34/EU (European Sustainability Reporting Standards, hereinafter also referred to as "ESRS"); - the information included in the paragraph “European Taxonomy” of the Sustainability Reporting has not been prepared, in all material respects, in accordance with Article 8 of European Regulation n. 852 dated 18 June 2020 (hereinafter "Taxonomy Regulation"). Element s underlying the conclusions We have performed a limited assurance engagement in accordance with the Sustainability Reporting Assurance Standard (“Principio di Attestazione della Rendicontazione di sostenibilità”) – SSAE (Italy). The procedures performed in this type of engagement vary in nature and timing compared to those necessary for conducting an engagement aimed at obtaining a reasonable level of assurance and are also less extensive. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the level of assurance that would have been obtained if the engagement aimed to acquire a reasonable level of assurance. Our responsibilities under this Standard are further described in the section "Auditor’s responsibility for the Assurance on the Sustainability Reporting" of this report. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 351 2 We are independent in accordance with the standards and principles regarding ethics and independence applicable to the assurance engagement of the Sustainability Reporting according to Italian law. Our audit firm applies the International Standard on Quality Control (ISQM Italy) 1, under which it is required to establish, implement, and operate a quality management system that includes instructions and procedures on compliance with ethical principles, professional principles, and applicable legal and regulatory provisions. We believe we have obtained sufficient and appropriate evidence on which to base our conclusions. Other Matters – Comparative information The comparative information included in the Sustainability Report for the year ended on 31 December 2023, has not been subjected to verification. Responsibilit y of directors and those charged with governance for t he Sustainabilit y Report ing The directors are responsible for the development and implementation of procedures used to identify the information included in the Sustainability Reporting in accordance with the requirements of the ESRS (hereinafter the "Materiality assessment process") and for the description of such procedures in the paragraph "the double materiality assesment" of the Sustainability Reporting. The directors are also responsible for the preparation of the Sustainability Reporting, which contains the information identified through the Materiality assessment process, in accordance with the requirements of Article 4 of the Decree, including: - compliance with ESRS; - compliance with Article 8 of the EU Taxonomy Regulation regarding the information contained in the paragraph “European Taxonomy”. This responsibility entails the establishment, implementation, and maintenance, as required by law, for that part of internal control that they consider necessary in order to allow the preparation of the Sustainability Reporting in accordance with the requirements of Article 4 of the Decree, free from material misstatements caused by fraud or not intentional behaviors or events. This responsibility also includes the selection and application of appropriate methods for processing the information as well as the development of assumptions and estimates regarding specific sustainability information that are reasonable under the circumstances. The statutory audit committee (“Collegio Sindacale”) is responsible, within the terms provided by the law, for overseeing the compliance with the requirements of the Decree. Inherent limit ations in the preparation of t he Sustainability Reporting As indicated in paragraph "Basis for Preparation" of the chapter “5.1 General disclosures”, for the purpose of reporting prospective information in accordance with the ESRS, the directors are required to prepare such information based on assumptions, described in the Sustainability Reporting, regarding events that may occur in the future and possible future actions by the Group. Due to the uncertainty associated with the realization of any future events, both concerning the occurrence itself and regarding the extent and timing of its occurrence, the variations between actual values and prospective information could be significant. 352 A2A Report on Operations 2024 Sustainability Statement 3 As indicated in the paragraph " Gross GHG emissions of Scope 1, 2, 3 and total GHG emissions" of the chapter “5.2 Environmental information”, the information related to Scope 3 greenhouse gas emissions is subject to greater intrinsic limitations compared to Scope 1 and 2, due to the lower availability and accuracy of the information used to define such information, both quantitative and qualitative, as well as due to reliance on data, information, and evidence provided by third parties. Auditor’s responsibility for t he Assurance of the Sustainability Report ing Our objectives are to plan and perform procedures to obtain a limited level of assurance that the Sustainability Reporting is free from material misstatements, due to fraud or not intentional behaviors or events, and to issue a report containing our conclusions. Errors may arise from fraud or not intentional behaviors or events and are considered significant if it can be reasonably expected that they, individually or in the aggregate, could influence the decisions made by users based on the Sustainability Reporting. In the context of the engagement aimed at obtaining a limited level of assurance in accordance with the Sustainability Reporting Assurance Standard (“Principio di Attestazione della Rendicontazione di Sostenibilità”) – SSAE (Italy), we exercised professional judgment and maintained professional skepticism throughout the duration of the engagement. Our responsibilities include: - considering the risks to identify the information in which a significant error is likely to occur, whether due to fraud or not intentional behaviors or events; - defining and performing procedures to verify the information in which a significant error is likely to occur. The risk of not detecting a significant error due to fraud is higher than the risk of not detecting a significant error arising from not intentional behaviors or events, as fraud may involve collusion, forgery, intentional omissions, misleading representations, or manipulation of internal controls; - d irecting, supervising, and conducting the limited assurance of the Sustainability Reporting and assuming full responsibility for the conclusions regarding the Sustainability Reporting. Summary of t he work performed An engagement aimed at obtaining a limited level of assurance involves performing procedures to obtain evidence as a basis for formulating our conclusions. The procedures performed on the Sustainability Reporting were based on our professional judgment and included interviews, primarily with the company personnel responsible for preparing the information included in the Sustainability Reporting, as well as documents analysis, recalculations and other procedures aimed to obtain evidence considered appropriate. In particular, we performed the following procedures, partly in a preliminary phase before the end of the year and subsequently in a final phase up to the date of issuance of this report: - understanding the business model, the Group's strategies, and the context in which it operates concerning sustainability issues; - understanding the processes underlying the generation, detection, and management of the qualitative and quantitative information included in the Sustainability Reporting, including the analysis of the reporting perimeter; - understanding the process implemented by the Group for identifying and assessing relevant impacts, risks, and opportunities based on the principle of Double Materiality concerning sustainability issues and verifying the related information included in the Sustainability Reporting; Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainability Statement A2A Report on Operations 2024 A2A 353 4 - identifying the information for which there is a likelihood of a significant error risk; - defining and performing analytical and substantive procedures, based on our professional judgment, to address the identified significant error risks, including: - for the information collected at the Group level: carrying out inquiries and document analysis regarding qualitative information, particularly policies, actions, and targets on sustainability issues, to verify consistency with the evidence collected; performing analytical procedures and limited assurance procedures on a sample basis regarding quantitative information; - for the information collected at site level, conducting on-site visits for the consolidated entities Agripower S.p.A. (Biomass Plant in Sant'Agata di Puglia), A2A Gencogas S.p.A. (Thermoelectric Power Plant in Cassano) and A2A Airport Energy S.p.A. (Trigeneration Plant in Malpensa). During these visits, we conducted interviews with the entities personnel and obtained documentary evidence regarding the determination of the main metrics; - regarding the requirements of Article 8 of the EU Taxonomy Regulation, understanding the process implemented by the Group to identify eligible economic activities and determine their aligned nature based on the provisions of the EU Taxonomy Regulation, and verifying the related information included in the Sustainability Reporting; - cross-checking the information reported in the Sustainability Reporting with the information contained in the consolidated financial statements in accordance with the applicable financial reporting framework or with the accounting data used for the preparation of the consolidated financial statements or with the management data of an accounting nature; - verifying the structure and presentation of the information included in the Sustainability Reporting in accordance with the ESRS; - obtaining the representation letter. Milan, 31 March 2025 EY S.p.A. Signed by: Enrico Lenzi, Auditor This report has been translated into the English language solely for the convenience of international readers. 6 Sustainable Finance Report on Operations 2024 356 A2A Report on Operations 2024 Sustainable finance proceeds allocation, reporting, and requirements for external review, promotes enhanced standardization and comparability in the market, thereby significantly minimizing the risk of greenwashing. Sustainable Finance Framework and Group Objectives In 2024, A2A reaffirmed its position as a leader in Sustainable Finance, a crucial lever for realizing the two pillars of the Group’s strategy: Energy transition and Circular economy. Indeed, the Strategic Plan outlines a distinct goal of achieving sustainable debt level exceeding 90% of total gross debt by 2030, and reaching 100% by 2035. Furthermore, A2A was awarded the Best Sustainable Treasury Solution in the Adam Smith Awards 2024, thanks to the various Sustainable Finance instruments issued over the past years, with particular emphasis on the Group’s agreement to use the credit line for issuing guarantees in a green format. The Adam Smith Awards are universally recognized as the benchmark in the industry for corporate treasury achievements. To achieve the ambitious goals of the sustainable debt share, A2A equipped itself in 2019 with the Green Financing Framework, which was subsequently transformed in 2021 into a Sustainable Finance Framework, which, for the first time in Italy, combines two approaches: Green/Use of Proceeds and Sustainability- Linked. With the integrated Framework, issuers are granted maximum flexibility, ensuring complete transparency concerning the allocation of the proceeds for specific short- term projects (with the Green/Use of Proceeds component) and enabling a comprehensive Over the past few years, a very strong relationship has developed between Finance and Sustainability. Not only have new financial instruments been created (e.g. Green, Social, Sustainable Bond, Sustainability-Linked Bond, Green Loan, Sustainability-Linked Loan, EIB subsidized investments), which also include sustainability impacts in their logics, but the assets managed according to sustainable and responsible investment strategies have increased exponentially. Currently, the majority of assets under management (AUM) in Europe, amounting to 8 trillion euro out of a total of 14, is invested in ESG (Environmental, Social & Governance) funds or strategies that take sustainability objectives into account. 1 Regarding the bond market, in 2024 the ESG issuance volumes demonstrated resilience, despite the challenging macroeconomic environment, geopolitical uncertainty, and growing concerns over public deficits in various regions. Global emissions of sustainable bonds reached approximately 1 trillion dollars, remaining in line with 2023 volumes, with Green Bonds still being the preferred product by investors. In 2024, in fact, Green Bonds made up 60% of emissions with an ESG label. 2 From a regulatory perspective, 2024 was rich in innovations in the Sustainable Finance field, especially within Europe. The most significant novelty concerns the application of Regulation (EU) 2023/2631 on European Green Bonds and the voluntary disclosure for bonds marketed as sustainable and sustainability-linked. The new Regulation (EU) 2023/2631 establishes the standard with criteria that Green Bonds must satisfy to obtain the “European Green Bond” label and is applicable from December 21, 2024. This EU Green Bond standard, considered the “gold standard” for Green Bonds in terms of 1\. Source: Funds and the European Sustainable Finance Landscape 2024 - MSCI (msci.com). 2\. Source: 2025 Sustainable Bond Market Forecast: Environmental Finance. 6.1 Sustainable Finance Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainable finance Report on Operations 2024 A2A 357 In order to strengthen its commitment, identify and develop Sustainable Finance instruments, ensure the correct management of the project selection and fund allocation process, and monitor the positive impact on environmental metrics, A2A has created an inter-functional Green Financing Committee since 2019. This Committee, later renamed the Sustainable Financing Committee, is chaired by the Finance department and includes functions from Planning and Control, Sustainability Development, Strategy, and Investor Relations. Main operations for 2024-2025 Based on the Sustainable Finance Framework, during 2024, A2A structured the following main operations in the Sustainable Finance field: • June 2024: the first issuance of a hybrid subordinated perpetual bond in a Green/Use of Proceeds format, with a nominal value of 750 million euro. The issuance attracted a lot of interest, receiving orders for about 2.9 billion euro, more than about 4 times the amount offered. The net proceeds from the issuance are allocated to finance and/or refinance Eligible Green Projects: strategic Circular economy and Energy transition projects associated with the development of renewables, the environmental sector, electricity grids, and the water cycle, as outlined in A2A’s 2022 Sustainable Finance Framework, verified by Vigeo Eiris. Furthermore, the project selection criteria encompass eligibility with the EU Taxonomy and, on a best effort basis, also adhere to the technical criteria set by the corresponding Regulation. • June 2024: 600 million euro in pooled funding, structured in a Green/Use of Proceeds format, for the acquisition of electricity grid assets in selected areas of the Lombardy region as announced in March 2024. A 2-year bridge loan, structured as a Green Loan aligned with A2A’s Sustainable Finance Framework and the Green Loan Principles (GLP) administered by the LMA, was signed in June and disbursed in December 2024. • November 2024: the second agreement for the use of a credit line for issuing guarantees in a green format. Guarantees can be classified as green if they meet the eligibility criteria of both A2A’s Sustainable Finance Framework and the LMA Green Loan Principles. understanding of the Group’s broader strategic vision by linking debt instruments to one or more of the Group’s sustainability objectives (with the Sustainability-Linked component). The Framework was subsequently updated in 2022. In July 2024, A2A once again updated the Sustainable Finance Framework to align it with the new objectives of the Strategic Plan, reaffirming its commitment to an integrated Framework. The main changes compared to the 2022 Framework version are: • Green/Use of Proceeds Section: \- Further eligible green projects and modifications to some current eligible green projects, primarily to align with EU Taxonomy criteria. • Sustainability-Linked Section: \- Update of KPI #1 definition to include Scope 2 and certain SPTs in line with the new Strategic Plan \- Replacement of KPI #3 with a new indicator: Installed capacity of the Electricity Grid with SPT by 2030 and 2035 to reflect the Group’s strategy focused on network infrastructures supporting the path of decarbonization and the electrification of consumption. The Framework has been prepared in accordance with relevant guidelines and regulations, including the most recent versions of the International Capital Market Association (ICMA) Green Bond Principles and Sustainability-Linked Bond Principles, as well as the Loan Market Association (LMA) Green Loan Principles and Sustainability-Linked Loan Principles. Moreover, A2A commits to detailing in each Allocation Report the portion of the net proceeds allocated to projects that are fully aligned with the EU Taxonomy Regulation, including the technical screening criteria for substantial contribution, the Do No Significant Harm (DNSH) criteria, and the minimum social safeguards (MSS). S&P has issued a Second Party Opinion confirming the robustness of the Sustainable Finance Framework and certifying its alignment with the ICMA and LMA principles. In the Use of Proceeds section, the agency has also awarded a “Medium Green” shading, on a scale that ranges from “Red” to “Dark Green”. 358 A2A Report on Operations 2024 Sustainable finance Thanks to the actions carried out in recent years in the field of funding, as of December 31, 2024, the share of debt in ESG format on the total gross debt has reached 78%. Proportion of ESG debt in relation to total gross debt as of December 31, 2024 28% 44% 58% 70% 78% FY 2020 FY 2021 FY 2022 FY 2023 +8% vs. FY 2023 FY 2024 2030 2035 >90% 100% Actual Target Moreover, in January 2025, A2A issued its inaugural European Green Bond with a nominal value of 500 million euro, the first on the market for this new instrument, structured based on the recent Regulation (EU) 2023/2631\. This issuance drew substantial interest, receiving orders from investors for a total of 2.2 billion euro, approximately 4.4 times the amount offered. In accordance with Regulation (EU) 2023/2631, the net proceeds from the issuance will be used to finance or refinance projects as specified in the Factsheet verified by Sustainable Fitch, without resorting to the use of the flexibility pocket. The selected projects will be fully aligned with the European Taxonomy, central to executing the Group’s Strategic Plan, focusing on the Energy transition and the Circular economy, such as the development of electricity grids and renewable energy sources, energy efficiency, and waste collection. In December 2024, A2A issued its fourth Green Bond Allocation Report, detailing the allocation of the Green Bonds issued in 2022, 2023, and 2024, amounting to 887 million euro. The proceeds garnered through Green Bonds have been entirely utilized to finance Eligible Green Projects that are either eligible or aligned with the EU Taxonomy of sustainable activities. The report was also subject to verification by a qualified external provider and the verifier’s report is annexed to the document itself. A2A also has a solid and long-standing relationship with the European Investment Bank (EIB) to support the Group’s investment program. The European Institute finances specific investment projects that meet particular sustainability requirements, applying generally more advantageous economic conditions than the most common forms of financing. The EIB periodic appraisal and monitoring process includes requests for information, including technical and financial information, and the possibility of inspecting the sites/ plants concerned by the projects financed. As of December 31, 2024, the total value of the multiple loans the Group secured with the EIB is approximately 547 million euro. In 2024, A2A also maintained its existing KPI- linked insurance policies, which include: • the General Civil Liability policy linked to achieving four sustainability objectives related to health and safety in the workplace; • the Pollution policy linked to the achievement of seven sustainability objectives related to environmental risk management; • the Accident Insurance policy for employees, featuring a sustainability objective connected to the trend of workplace accidents. Update on target for sustainability-linked bond XS2457496359 In relation to the Sustainability-Linked Bond XS2457496359, issued in 2022 with a tenor of 6 years and a KPI concerning the installed capacity from renewable sources, as of December 31, 2024, this KPI stands at 2.6 GW, falling short of the 3 GW target, resulting in a 25 basis point increase in the coupon from the first interest period after the publication of this sustainability statement. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainable finance Report on Operations 2024 A2A 359 Engagement with stakeholders A2A believes it is crucial to engage with all relevant stakeholders, including investors, banking partners, legislators, and companies within its sector, for discussion and sharing of best market practices to accelerate concrete actions aimed at market development. With this approach in mind, A2A has continued to be part of the Corporate Forum on Sustainable Finance (CFSF) since 2019, the Nasdaq Sustainable Bond Network (NSBN) since 2023, and the International Capital Market Association (ICMA) since 2024. The CFSF, composed of 25 members, aims to support and develop Sustainable Finance as a mean of combating climate change and promoting a more sustainable economy through innovative financing instruments. Over recent years, the CFSF has responded to the most important consultations organized by the European Union, including: EU Taxonomy, EU Green Bond standard, and EU climate benchmarks. In contrast, the NSBN serves as a Sustainable Finance platform, gathering investors, issuers, investment banks, and specialist organizations, allowing the Group to have more visibility into ESG bond reporting. Finally, ICMA acts as the trade association fostering the development of the capital and securities market and also serves as the Secretariat for the Principles: the Green Bond Principles, the Social Bond Principles, the Sustainability Bond Guidelines, and the Sustainability-Linked Bond Principles. ICMA membership enables the Group to reinforce its commitment to continuous improvement and Sustainable Finance, A2A is strongly committed to the country’s decarbonization process, which heavily depends on the development of renewable energy sources. In fact, in our ten-year Strategic Plan, which is periodically updated, this KPI has consistently been and remains one of the primary industrial drivers. Several factors contributed to the failure to achieve the target set during the 2021-2030 plan update, published in January 2022: • The unprecedented crisis that the European energy system faced in 2022 necessitated a review of the investment plans for all companies in the sector. In response to the new macroeconomic environment, the Group promptly updated its Strategic Plan in November 2022, reshaping the capex and reducing investments during the initial years. • Additionally, the development in renewables focuses primarily on organic growth rather than external growth through M&A operations. This approach involves achieving objectives that are more spread out over time. On the other hand, organic growth facilitates the creation of additional capacity not just for A2A, but for the whole system, bringing benefits in terms of reducing emissions nationwide. • Finally, there are external factors that A2A, like all operators in Italy, must contend with. Despite the presence of a significant pipeline through the acquisition of development platforms and co-development agreements across the entire country, the creation of new renewable plants is influenced by the timing of authorization, regulatory, and bureaucratic processes, impacting both the development and construction phases. 360 A2A Report on Operations 2024 Sustainable finance ESG indices A2A has been confirmed in nine ESG indices: MIB ESG, FTSE4Good Index, ECPI ESG Equity, Ethibel Sustainability Index Excellence Europe, EURO STOXX Sustainability Index, Euronext Vigeo Index, Eurozone 120, Standard Ethics Italian Index, Solactive Climate Change Index. Furthermore, A2A is included in the Ethibel Excellence Investment Register and in the Ethibel Pioneer Investment Register and participates in the following assessments: CDP Climate Change/ Water, FTSE ESG, ISS ESG, MSCI, Refinitiv, Standard Ethics, S&P CSA, Sustainalytics, Vigeo Eiris, Corporate Knights, EthiFinance ESG ratings (formerly Gaia research) and ICI - ESG Identity Corporate Index (formerly IGI). accelerating tangible initiatives towards the development of innovative financial instruments and supporting the Group’s sustainability- focused strategy. It also offers the opportunity to engage directly with a broad network of financial stakeholders to identify new opportunities and contribute to the development of market guidelines. A2A is currently part of various ICMA working groups, including the Use of Proceeds Bond Impact Reporting Working Group, and has been selected as a corporate member of the Advisory Council, a body tasked with increasing market awareness regarding the Principles and promoting their understanding. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Sustainable finance Report on Operations 2024 A2A 361 7 Evolution of legislation and impacts on the Business Units of the A2A Group Report on Operations 2024 364 A2A Report on Operations 2024 Evolution of legislation and impacts on the Business Units of the A2A Group 7.1 Generation and Trading Business Unit The capacity market: compensation for production capacity availability The capacity remuneration mechanism, also known as the capacity market, is designed to ensure the adequacy of the electricity system in the face of sudden spikes in demand or supply shortages. The instrument is configured as a contract for differences entered into with Terna S.p.A. and awarded following a tender in which producers acquire the right to receive a bonus (in €/MW/year) with respect to the obligation to offer all the capacity committed in the MGP and the capacity not accepted as a result of the energy markets on MSD, returning to Terna S.p.A. the difference - if positive - between the market benchmark prices and a strike price (in €/MWh). In the 2022 auction for the 2024 delivery, A2A S.p.A. secured approximately 4.9 GW, of which around 4 GW was existing capacity at 33,000 €/MW/year, and about 790 MW was new capacity set for a 15-year period among CCGT, photovoltaic, and electrochemical storage (notably: 20 MW at 70,000 €/MW/year and 770 MW at 48,110 €/MW/year). Regarding the new repowering of Sermide and Piacenza, contracted for delivery in 2023, A2A S.p.A. paid a penalty of approximately 1 million euro in 2024 for failing to meet the obligation to appoint 50% of the new CDP to relevant plants in each delivery year. The mechanism, with reference to the delivery years 2022-2024, has been the subject of appeals at national level and to the EU Court of Justice. Within the EU context, the Judgement of September 7, 2022 dismissed the appeals, and similarly, in the national context, several judgements from the Lombardy Regional Administrative Court rejected the related appeals. Several national judgments remain unresolved in relation to the 2024 delivery auction. As of the delivery year 2025, the mechanism has undergone a number of innovations including: the elimination of contractual termination for non-fulfilment of supply obligations and the provision for prolonged non-fulfilment (that which occurs for three months, even if non- consecutive, or for a minimum number of hours and a minimum portion of capacity even in only one of the critical summer months); the introduction of an additional derating rate for power plants that are unavailable at the most critical times of the system in 2022 in the event of a failure to declare retrofitting measures to increase availability; the provision for a 20% derating for new CCGT-type generating units characterized by exclusively water-cooled systems; the possibility of mutual relief between existing and new capacity, with the obligation, however, to bid/nominate 100% of the new capacity on relevant units and the return of the delta premium between the value awarded for the new capacity and that related to the existing capacity in case of fulfilment of this obligation through existing capacity; the introduction of a penalty in case of delay in the commercial start-up of the new plants; the possibility for the successful bidders of new capacity contracted for the 2022, 2023 and 2024 deliveries to adhere to the new Regulation. On July 25, 2024, in the auction for 2025 delivery (cap at premium of 45,000 €/MW/year for existing capacity and 85,000 €/MW/year for new capacity), A2A S.p.A. secured approximately 4.6 GW of existing capacity at the cap and 500 MW of foreign capacity at a premium of 4,788 €/ MW/year. In the auction for the 2026 delivery (cap on the premium equal to 46,000 €/MW/year for existing capacity and 86,000 €/MW/year for new capacity), held on December 18, 2024, A2A S.p.A. contracted about 4.2 GW of existing capacity at the cap and 520 MW of foreign capacity, of which 500 MW in the North at a premium of 11,200 €/MW/year and 20 MW in the Centre-South at a premium of 7,199 €/MW/year. The auction for delivery in 2027 (cap at a premium of 47,000 €/MW/year for existing capacity and 86,000 €/MW/year for new capacity) is scheduled for February 26, 2025, while the auction for delivery in 2028 (cap at Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Evolution of legislation and impacts on the Business Units of the A2A Group Report on Operations 2024 A2A 365 a premium of 48,000 €/MW/year for existing capacity and 86,000 €/MW/year for new capacity) is scheduled to take place in the second half of 2025. The outcomes of the 2025 auction faced a national appeal, and the scheduling decision for the 2026/2027 auctions by Terna S.p.A. was contested at the Lombardy Regional Administrative Court, which then transferred the case to the Lazio Regional Administrative Court. San Filippo del Mela: essentiality regime Even for 2024, the San Filippo del Mela fuel oil facility operated by A2A Energiefuture S.p.A. has been included in the list of essential plants and admitted to the cost reintegration scheme in accordance with Resolution 502/2023/R/ eel. The plant has also been included in the list of essential facilities for 2025 published by Terna S.p.A.. Brindisi: forward procurement of resources for voltage regulation In 2019, the Brindisi plant of A2A Energiefuture S.p.A., pursuant to Resolution 675/2018/R/eel and the subsequent tender procedure initiated by Terna S.p.A., was awarded a ten-year contract to supply 286 MVAr of reactive energy at a weighted average price of 28,098 €/MVAr/year. The total for 2024 amount is 10.75 million euro. Electricity Dispatch Reform (Integrated Text of Electricity Dispatch - TIDE) On January 1, 2025, the new Integrated Text of Electricity Dispatch (TIDE) will come into effect. It unifies national dispatch regulations into a comprehensive framework, ensuring compatibility with EU regulations and promoting the market integration of distributed resources. The reform is implemented according to the following phases: • transitional phase from January 1, 2025 to January 31, 2026: ensuring a gradual transition with a streamlined implementation, while introducing the 15-minute Imbalance Settlement Period (ISP) and the quarter- hourly products in the energy markets across Europe, as well as the nomination platform with separation between programs and the commercial position of individual units. In this phase, units already enabled for MSD will automatically become enabled as UAS, maintaining the alignment between Balance Service Party (BSP) and Balance Responsible Party (BRP); • consolidation phase starting February 1, 2026: Near-total implementation achieved, except for the market procurement of the Frequency Containment Reserve, initiated on a trial basis with additional requirements beyond current supply obligations. Additionally, BSP/BRP separation remains for essential facilities, where the BRP serves as BSP until the end of 2026; • the consolidation phase date will be determined by Terna S.p.A. at a later time. The TIDE is applied through the modifications to the GME’s Consolidated Text of the Electricity Market Regulations (approved by MASE Decree no. 450 of December 20, 2024) and the associated Technical Operating Provisions, as well as the amendments to the Regulation of the Forward Energy Accounts Platform and its corresponding Technical Operating Provisions of the GME, along with the changes to Terna’s Grid Code as approved by ARERA Resolution 499/2024/R/eel. Exceeding the demand-side Single National Price (PUN) Decree Law No. 181 dated December 9, 2023, now Law No. 11 from February 2, 2024, stipulates that zonal pricing will apply to end users 366 A2A Report on Operations 2024 Evolution of legislation and impacts on the Business Units of the A2A Group beginning January 1, 2025, with a transitional period introducing an equalization mechanism to compensate for the differences between the zonal price and the reference price (i.e. (PUN Index GME) calculated in continuity with the PUN. The criteria for implementation were detailed in the MASE Ministerial Decree of April 18, 2024 and in Resolution 304/2024/R/eel, where ARERA decided that the equalization component should be applied by the GME directly to purchase transactions, and that any assessments concerning the surpassing of equalization should be deferred, ensuring a minimum of 24 months’ notice for any measures implemented. Energy Release Legislative Decree 181/2023 has introduced a mechanism known as the ‘energy release’, specifically designed for energy-intensive companies to develop renewable capacity of at least 200 kW, even through third parties, with the option to request an advance of a portion of renewable energy from the GSE for 36 months by signing two-way contracts (CfD). Following the commissioning of the RES plant (no later than 40 months after the conclusion of the CfD with the GSE), the amount of energy advanced by the GSE will be subject to repayment over the following 20 years. The framework was completed by the MASE Ministerial Decree of July 23, 2024 and the GSE Operating Rules, approved by the Executive Decree on October 30, 2024. On November 14, 2024, the GSE published a tender for an energy volume of 23 TWh per year, with a sale price of 65 €/MWh. The date for final bid submissions has been extended to February 14, 2025. Incentives for production from renewable sources: state of the art Throughout 2024, the GSE auctions continued for distributing incentive tariffs for renewable electricity generation, as provided by the Ministerial Decree dated July 4, 2019, the duration of which was extended until the complete exhaustion of the incentivized power quotas. In particular, during the 13th auction, the project VGE 06 S.r.l. (29.4 MW wind power plant located in the Municipality of Banzi) was awarded a tariff of 75.2 €/MWh for 20 years. The 14th procedure opened in February 2024 and ended at the end of March: of the 688.9 MW available, 295.9 MW were allocated. Thus, the remaining quota was reassigned during the 15th procedure, which commenced in late June 2024 and concluded at the end of July 2024. Of the 534.5 MW available, 433.5 MW were allocated. Thus, the remaining quota was reallocated in the 16th procedure, which started in mid-November and ended in mid-December 2024. The results of the latest procedure are awaited. As at December 31, 2024, the incentives granted by GSE to the A2A Group’s renewable energy plants totaled 63 million euro GSE incentive type millions of euro Feed in tariff 24 TO and RID 7 Energy account (FV) 32 Total 63 At the end of June, two long-awaited measures were issued by the MASE. The first is the Ministerial Decree for Incentives aimed at Innovative Renewable Electricity Sources (so-called DM RES II), designed to support renewable energy sources that are not yet fully mature and are characterized by costs that are still high relative to the market, including: offshore wind, biogas (with power under 300 kW), biomass (with power under 1 MW), thermodynamic solar, floating photovoltaics (offshore and inland waters), geothermal electricity, tidal, wave, and other marine energy forms. The incentives are to be awarded via auctions to be held from 2024 to 2028, with separate power quotas allocated for each source. This totals 4,590 MW, of which 3,800 MW are for offshore wind power, with a base auction tariff set at 185 €/MWh for a duration of 25 years. The GSE has launched the first tender to grant incentives for biogas and biomass installations, with a 10 MW quota, open from December 16, 2024 to February 14, 2025. The incentive will be disbursed in two ways: 1\. for plants with capacity less than or equal to 300 kW (later reduced to 200 kW as from 2026), the GSE directly collects the electricity Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Evolution of legislation and impacts on the Business Units of the A2A Group Report on Operations 2024 A2A 367 fed into the grid by the plant, recognizing the tariff due in the form of an all-inclusive tariff; 2\. for plants above 300 kW, the energy remains at the producer’s disposal and the GSE applies a Contract for Differences comparing the value of the incentive tariff and the hourly zonal price and, if the difference is positive, pays the difference on the energy fed into the grid in favor of the producer. If the difference is negative, it balances or requests the corresponding amounts from the producer. ARERA has estimated an impact of the measure on domestic users of around 13-15 euro/year. The estimate corresponds to an annual cost of 1.7-1.8 billion euro for the first 20 years (with an average reference electricity price of 60-70 euro/MWh). The second measure is the Ministerial Decree containing the Regulation for the identification of surfaces and areas suitable for the installation of renewable energy plants (so-called DM Eligible Areas), which sets out the criteria for the identification, by Regions, of Eligible and Non-Eligible areas for the construction of RES plants, distributing the objective of 80 GW additional RES capacity by 2030 (Burden Sharing) among them. Regions will have 180 days to identify, through Regional Law, the Areas deemed Eligible and Non-Eligible based on the following criteria: • maximization of the areas identified in order to facilitate the allocated burden sharing; • possibility of classifying areas as suitable by source, size and type of plant; • possibility of safeguard the areas that are currently suitable by law (pursuant to article 202, paragraph 8, of the Legislative Decree 199/2021); • surfaces subject to protection pursuant to Article 10 and Article 136(1)(a) and (b) of Legislative Decree no. no. 42 of January 22, 2004 (cultural heritage and buildings/areas of considerable public interest) are deemed non eligible. The regions will also be able to identify a buffer from these areas depending on the type of plant and the property being protected, up to a maximum of 7 kilometers (with the exception of renovations). Once the 180-day deadline for the adoption of regional laws has expired unsuccessfully, the MASE proposes to the President of the Council the adoption in the Council of Ministers (CdM) of draft regulatory acts of a substitutive nature. Lastly, the measure does not affect the provisions for the construction of photovoltaic plants in agricultural areas in Decree-Law no. 63 of May 5, 2024 (so-called DL Agriculture) which introduces a ban on constructing new ground- mounted photovoltaic plants on agricultural land (with some exceptions including installations in disused quarries/mines, revamping or repowering projects that do not increase the occupied area, sites available to FS Group companies or motorway concession companies, etc.). Excluded from the prohibition are photovoltaic plants aimed at setting up Energy Communities, included in projects implementing PNRR measures, and projects with enabling, authorization or environmental assessment procedures already started at the date of entry into force of the DL. At the end of the year, with the Legislative Decree no. 190 of November 24, 2024, the new consolidated text for the authorization of plants powered by renewable sources was published. This measure, established by the 2021 Competition Law, reorganizes the regulatory framework regarding the issuance of authorization permits for renewable energy installations, including provisions from documents such as the Ministerial Decree on Eligible Areas and the Agriculture Decree. The Legislative Decree does not introduce further simplifications to the authorization procedures compared to what was previously in force; it merely rationalizes the set of regulations in this area that have developed and layered over the last few years. The main innovations concern the identification of three types of authorization titles, which can be obtained based on the type of source and technology as well as the size of the plant: i) free building activities, ii) simplified authorization procedure, and iii) single authorization (removing the Declared Start of Works, known as DILA). Furthermore, the coordination with the environmental impact assessment procedure is reviewed, pursuant to Legislative Decree 152/2006: plants engaged in free activity and PAS do not require an environmental impact assessment, which remains applicable only for projects subject to single authorization. 368 A2A Report on Operations 2024 Evolution of legislation and impacts on the Business Units of the A2A Group 7. 2 Market Business Unit Removal of the electricity greater protection service for non-vulnerable domestic customers Resolution 362/2023/R/eel, as amended by Resolution 600/2023/R/eel, set July 1, 2024 as the end date of the electricity greater protection service for non-vulnerable domestic customers 1 . Those who had not chosen an offer from the free market by that date were automatically enrolled in the Gradual Protection Service (STG), provided until March 31, 2027. The operators were chosen through a specific auction organized by Acquirente Unico S.p.A. on January 10, 2024. The lots were awarded based on the lowest price offered, expressed in €/POD/year, to cover marketing and imbalance costs not yet recognized by ARERA. Out of a total of 26 lots, A2A Energia S.p.A. was awarded the South Area 2 (Cagliari, Naples, Municipality of Oristano, South Sardinia) with an offer of approximately 29 €/POD/year and the South Area 10 (Agrigento, Caltanisetta, Palermo and Trapani) with an offer of 6.4 €/POD/year. As many lots were awarded with negative price bids, the related component, applied to end customers and assuming a unique value at the national level, reflects these bids and is equal to -73 €/POD/year. It should be noted, finally, that from a total of about 4.5 million POD allocated at auction, the POD were reduced to about 3.8 million when transferred to STG. At the end of the STG supply period, customers who have not yet chosen an offer on the free market may be re-supplied by the same company awarded the service with the application of the most convenient offer. Even after July 1, 2024, vulnerable domestic customers will continue to be supplied by the current providers under the greater protection service until the vulnerability protection service becomes active. In light of the favorable economic conditions that have emerged in the STG, the Competition Law 2024 has introduced the option for vulnerable domestic customers, served both on the free market and under the greater protection service, to request the activation of the STG by June 30, 2025, according to the methods defined by ARERA in accordance with Resolution 10/2025/R/eel. Gradual protection service for small electricity companies Resolution 119/2024/R/eel defined the rules for the allocation of the STG to small business for the second delivery period, from July 1, 2024 to March 31, 2027, coinciding with the equivalent STG of non-vulnerable domestic customers. The competitive procedures organized by Acquirente Unico S.p.A. encompassed around 94,000 small businesses (compared to 200,000 in the initial round) divided into 7 lots, awarded based on the lowest price offered, expressed in €/MWh, to cover marketing and imbalance costs not previously recognized by ARERA. A2A Energia S.p.A. was awarded 2 lots: Area 2 (Lazio, Friuli-Venezia Giulia, Valle d’Aosta) with an offer of 2.84 €/MWh and Area 6 (Campania, Marche, Sardinia) with an offer of 2.24 €/MWh. 1\. Legislative Decree 210/2021 defined as vulnerable domestic customers with one of the following conditions: • are in an economically disadvantaged condition or have a serious health condition requiring the use of electricity-powered medical/ therapeutic equipment (or where persons in such a condition are present); • are at least 75 years old; • are persons with disabilities within the meaning of Article 3 of Law 104/1992; • have utilities in an emergency housing facility following calamitous events; • have utilities on a smaller, non-interconnected island. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Evolution of legislation and impacts on the Business Units of the A2A Group Report on Operations 2024 A2A 369 Removal of the gas protection service for non-vulnerable domestic customers and condominiums Resolutions 100/2023/R/com and 102/2023/R/ gas defined the accompanying path for customers still under gas protection until the termination of the service scheduled for January 1, 2024, as well as identified vulnerable customers 2 who will maintain the right to regulated supply conditions. Customers who were still under the gas protection service received a communication in September 2023 from the supplier, differentiated based on the presence or absence of vulnerability criteria, informing them about the discontinuation of the service and the possibility of switching to the open market by subscribing to a new offer. In the absence of a choice, once the service concludes, a vulnerable customer continues to receive supply from the current provider at a rate set by ARERA (formerly protection service), whereas a non-vulnerable customer is charged based on a variable PLACET offer (so-called PLACET as an exception), where the seller only defined the annual fixed component (sales charge). Vendor list in the electrical sector Ministerial Decree MiTE no. 164 of August 25, 2022 established the Vendors List in the electricity sector, defining the requirements (technical, financial and honorableness) for registration, permanence and exclusion from the List. All authorized Group companies have completed the registration process. On June 24, 2024, the MASE, as provided for in Article 8 of MiTE Ministerial Decree No. 164 of August 25, 2022, published the list of the 35 entities authorized to sell electricity, including Gelsia S.r.l., to be subject to sample checks for 2024\. The check was documentation-based and aimed to ensure the truthfulness of the statements made for compliance with the requirements. Components covering marketing costs on gas protection and electricity higher protection Resolutions 122/2024/R/gas and 262/2024/R/ eel revised the QVD components, reducing them respectively (period: April 1, 2024 – March 31, 2025) and PVC (period: July 1, 2024 – June 30, 2025). There was an increase in the RCV fee (which covers the costs incurred by the operator of the greater electricity protection). 2\. The Decree Law No. 115 of August 9, 2022 (DL Aids bis) has defined vulnerable gas customers as domestic customers: • who are economically disadvantaged within the meaning of Article 1(75) of Law 124/2017; • who are among the disabled within the meaning of Article 3 of Law 104/1992; • whose utilities are located in the smaller, non-interconnected islands; • whose utilities are located in emergency housing facilities following calamitous events; • over 75 years of age. PCV €/POD/year Apr 1, 2023 - Jun 30, 2024 Jul 1, 2024 - Jun 30, 2025 PoD domestic* 69.17 40.00 * From July 1, 2024, only vulnerable domestic customers are covered by the greater protection service. RCV €/POD/year Apr 1, 2023 - Jun 30, 2024 Jul 1, 2024 -Jun 30, 2025 C-North C-South C-North C-South RCV 2 7.0 4 30.71 3 7. 8 9 40.05 RCV sm* 39.63 42.92 60.37 62.30 RCVi 21.63 24.57 30.31 32.04 * Remuneration recognized to minor separate companies (≤ 10 MIO POD). QVD €/PoR/year Apr 1, 2023 - Mar 31, 2024 Apr 1, 2024 - Mar 31, 2025 €/PoR/year c€/mc €/PoR/year c€/mc PoR domestic* 63.36 0.7946 58.93 0.7946 * From January 1, 2024, only vulnerable domestic customers are covered by the gas protection service. 370 A2A Report on Operations 2024 Evolution of legislation and impacts on the Business Units of the A2A Group Additional mechanisms to cover efficient costs on the protected market With reference to the additional mechanisms for offsetting the costs inherent in the electrical greater protection service, it should be noted that in September 2024 A2A Energia S.p.A. presented: • request for access to the mechanism relating to the exit of customers from the greater protection service (so-called PUC), aimed at recognizing the additional fixed cost connected to a customer exit rate towards the free market greater than that implicitly recognized by the RCV component, for an amount equal to approximately 565,000 euro, to be paid in December 2024 (PUC 2023 and the first 6 months of 2024); • request for access to the mechanism for compensating end customer arrears, aimed at recognizing any charges related to arrears exceeding the unpaid ratio already considered by the RCV component (COMP 2023 and the first 6 months of 2024), for an amount equal to approximately 644,000 euro, paid in December 2024; • request for access to the incentive mechanism to enhance the distribution of the bill in a digital format, aimed at recognizing the costs incurred for providing a discount on the bill to customers who simultaneously opt for automatic payment and electronic billing. In December 2024, CSEA recognized and liquidated an amount of approximately 122,000 euro to A2A Energia S.p.A.. Award of the safeguard service for the two-year period 2023-2024 A2A Energia S.p.A. has been awarded the safeguarding service for the period 2023- 2024, securing: lot 1 (Liguria, Piedmont, Valle d’Aosta, Trentino-Alto Adige), lot 2 (Lombardy), lot 3 (Veneto, Emilia-Romagna, Friuli-Venezia Giulia) and lot 4 (Marche, Tuscany and Sardinia), covering approximately 33,700 POD and 2.15 TWh. The award value (parameter Ω) was equal to: 29.97 €/MWh for lot 1, 15.90 €/MWh for lot 2, 24.97 €/MWh for lot 3 and 21.95 €/MWh for lot 4. For the two-year term 2025-2026, A2A Energia S.p.A., despite participating in the auctions for allocation, did not secure any lots in the safeguarding service. Abolition of the on-site exchange regime (SSP) Following the provisions of the Legislative Decree 199/2021, the on-site exchange mechanism is set to be abolished ninety days after DM RES X comes into effect, supported by the European Commission’s approval received in a letter dated December 20. This provision is relevant for defining the Group’s commercial strategy concerning the sale of plants to end customers. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Evolution of legislation and impacts on the Business Units of the A2A Group Report on Operations 2024 A2A 371 7.3 Waste Business Unit Waste Pricing Method for the second regulatory period 2022-2025 (MTR-2) Resolution 389/2023/R/idr updated the criteria for recognition of the efficient operating costs for the regulatory period 2024-2025 (MTR-2), confirming the general approach and establishing the rules for defining the access tariffs to the mixed waste and OFMSW treatment plants. Resolution 7/2024/R/rif updated the WACC for the period 2022-2025, setting them at 6.3% for the municipal hygiene service and 6.6% for the treatment service (only to “minimum plants”). With reference to the urban hygiene service, in H1 2024, the process was initiated for the A2A Group companies to define the 2024- 2025 “raw PEF”, which were subsequently submitted for approval by the entities territorially competent (ETC) and validation of ARERA. Up to now, the Authority’s approvals have only concerned the PEF for the years 2022-2025, while subsequent Resolutions for the 2024-2025 updates will be planned. ARERA Resolution Municipality Operator PEF tariff revenue (millions of euro) 2022 2023 2024 2025 544/2022/R/rif Milan Amsa S.p.A. 303.3 306.1 306.1 306.1 731/2022/R/rif Brescia Aprica S.p.A. 35.3 35.9 36.7 37. 2 61/2023/R/rif Bergamo Aprica S.p.A. 20.1 20.5 20.1 20.3 116/2023/R/rif Cremona Aprica S.p.A. 10.6 10.7 10.9 11.1 131/2023/R/rif Como Aprica S.p.A. 14.2 14.4 14.7 14.9 610/2023/R/rif Lodi Aprica S.p.A. 7. 8 7. 8 7.8 7. 8 246/2024/R/rif Saronno Amsa S.p.A. 5.0 5.0 5.1 5.2 259/2024/R/rif Corsico Amsa S.p.A. 3.7 3.7 3.7 3.7 In most cases, in continuity with 2022-2023 and in the presence of assignments obtained after tenders, ETC availed itself of the option of preserving any efficiencies already achieved, applying the value envisaged by the previous contracts (if lower than the maximum value of the MTR-2) subject to compliance with the economic-financial balance of operations. In addition, the ETC will have to adjust their existing contracts in accordance with the service contract scheme defined in Resolution 385/2023/R/idr within 30 days of the adoption of the relevant 2024-2025 biennial tariff update determinations. Treatment regulation: ARERA compliance with Council of State Sentences With reference to treatment, ARERA has introduced asymmetrical regulation, to be determined by the individual ETC (in Lombardy by the Region). The Authority has established, as a criterion for the identification of regulated tariff plants (“minimum” plants) the presence of a rigid market with a strong and stable excess of demand, in addition to the following alternative conditions: i) having committed capacity for 372 A2A Report on Operations 2024 Evolution of legislation and impacts on the Business Units of the A2A Group flows guaranteed by sector scheduling; ii) having been identified as “minimum” during scheduling by the competent parties. Sentences nos. 10548 and 10550 of the Council of State sanctioned the annulment of the provisions of MTR-2 in the part that regulates “minimum” plants subject to tariff regulation, confirming that the task of identifying the “minimum” plants for closing the cycle is a prerogative of the State, through the instrument of the National Waste Management Plan (PNGR), and not of ARERA. In compliance with the aforementioned sentences, Resolution 7/2024/R/rif amended the waste tariff method, de facto confirming the discipline of the “minimum” plants, due to the re-proposal of the criteria for their identification in the PNGR in 2022, however, making their implementation start from 2024. In light of the Council of State’s rulings, the Regions, following a preliminary investigation activity that has certified the presence of the critical issues envisaged by the PNGR, must identify the plants whose entry tariffs, in the absence of market conditions, are regulated by ARERA (“minimum” plants) from the others whose entry tariffs are defined by the market (“additional” plants). Region Resolution deed Decision Lombardy Regional Council Resolution XII/2373 of May 20, 2024 Confirmation by the Region that the treatment plants for the mixed fraction and OFMSW are "additional" with the exclusion of integrated plants, in continuity with the provisions of Regional Council Resolution no. 5777/2021 Piedmont Note from the Environment, Energy and Territory Directorate, Environmental Services Sector of May 24, 2024 Classification of regional plants - both OFMSW and mixed - as "additional" Campania Resolution of the Regional Council no. 313 of June 24, 2024 The Campania Region has identified the 'minimum' cycle closure plants and 'intermediate' plants. The Acerra waste-to-energy plant is listed under the 'minimum' category, while the Caivano TMB falls under the 'intermediate' classification, with both facilities operated by A2A Ambiente Quality regulation of the municipal waste management service (2023-2025) Resolution 15/2022/R/rif has approved the ‘Consolidated text for the regulation of the quality of the municipal waste management service’ (TQRIF), providing from January 1, 2023 a set of minimum and uniform contractual and technical quality obligations for all managements, accompanied by quality indicators and related general standards differentiated by regulatory schemes, identified in relation to the actual initial quality level determined by the ETC based on the performance foreseen in the Service Contract and/or in the Quality Charter. During the first phase of implementation, the majority of municipalities, including the Municipality of Milan, were assigned to Scheme I. The reporting on the technical quality obligations and standards for 2023 was concluded on May 31, 2024. Resolution 15/2022/R/rif also introduced the obligation to adopt a single ‘Quality Charter for integrated urban waste management services’ in line with the TQRIF provisions. To date, the A2A Group’s urban hygiene companies have concluded the approval process for the Service Charter with most of their ETC partners, after prior consultation with Consumer Associations. Monitoring and transparency obligations on the efficiency of separate collection and municipal waste treatment plants Resolution 387/2023/R/rif introduced a first set of indicators on the efficiency and quality of separate collection as well as the reliability of treatment plants. The monitoring of these indicators starts in 2024, with the first transmission to ARERA in 2025. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Evolution of legislation and impacts on the Business Units of the A2A Group Report on Operations 2024 A2A 373 Establishment of equalization systems also in the municipal waste sector Resolution 386/2023/R/rif introduced equalization systems in the waste sector, providing for two components applied to the TARI to be paid by users from January 1, 2024: • UR1 to cover the costs of managing waste accidentally fished out of the sea and waste voluntarily collected, amounting to 0.10 euro/user; • UR2 to cover the benefits recognized for exceptional and calamitous events, amounting to 1.50 euro/user. Biomethane production incentive framework The MiTE Decree of September 15, 2022 introduced a new incentive mechanism for the production of biomethane to be used not only in transport but also in other uses and which will cover the period 2022-2024. The new instrument is characterized by allocation limits and competitive procedures organized by the GSE, involving a two-way contract that considers the difference between the tariff resulting from the bidding processes and the average monthly methane price (including the guarantee of origin). Projects will also receive a capital grant of up to 40% of the costs, using PNRR funds. Commencing with the third competitive procedure, which opened on December 22, 2023, the maximum eligible tariffs and costs have been adjusted for inflation, as stipulated by Legislative Decree 57/2023\. During this procedure, the A2A Group secured the incentive tariff for 3 biomethane plants, all projects involving the conversion of biogas plants: San Fiorano (LO) and Livorno Ferraris (VC) of Agripower S.p.A. and Scalenghe Biogas Società Agricola (TO). The total capacity of the 3 projects amounts to 1,400 Scm/h. During the fourth competitive procedure, opened at the start of June 2024, the A2A Group was awarded the incentive tariff and capital contribution for an additional 4 projects to convert existing agricultural biogas plants. The projects will be located in the municipalities of Sissa Trecasali (PR), Cortona (AR), Suno (NO), and Coriano (RN), for a total combined capacity of 1,800 Smc/h. Previously, A2A Ambiente S.p.A. secured pre- qualification from the GSE for 4 biomethane plants processing organic waste, incentivized with the CIC mechanism (formerly DM MiSE March 2, 2018). The plants of Lacchiarella and Cavaglià came into operation in 2022, while those of Corteolona and Castelleone benefiting from the extension of the Ministerial Decree of August 5, 2022, came into operation during 2023. Resolution 220/2023/R/gas introduced several changes to the procedure for connecting biomethane plants to the natural gas grid, aiming to simplify and accelerate the process while also optimizing system costs by assigning Snam S.p.A. the task of evaluating different connection solutions. Introduction of Guaranteed Minimum Prices (PMG) for biogas and solid biomass plants Resolutions 132/2024 and 305/2024 have defined the PMG to be recognized for plants powered by solid biomass and biogas, with incentives expiring by December 31, 2027, or for those which renounce the remaining incentive period by this date. This measure, provided for in Legislative Decree no. 199/2021, implementing the RED II Directive, seeks to incorporate market revenues for these operational plants, ensuring comprehensive coverage of operating costs that is challenging to achieve through market remuneration alone. With the approval of the application procedures by the GSE, the provision came into effect in September 2024. Already 2 biomass-fueled A2A Group plants located in the municipalities of Rodengo and Lodi have obtained retroactive PMG application starting from January 2024. Waiting for the qualification of the S. Agata plant in Puglia, the application of PMG starting from January 2024 is subject to meeting the biomass sustainability and traceability requirements. 374 A2A Report on Operations 2024 Evolution of legislation and impacts on the Business Units of the A2A Group Adjustments under Provision CIP 6/92 by the GSE As a result of a dispute dating back in time and that had affected the gas protection tariffs for Thermal Years 2010-11 and 2011-12, the GSE also had to recalculate the CEC component (i.e. avoided fuel cost) of the electricity transfer price under Provision CIP 6/92\. These redeterminations also involved some waste-to-energy and biogas plants of the A2A Group that at the time were part of that incentive scheme: the adjustment in favor of the companies now part of the Waste Business Unit amounts to 15 million euro. Legislative Decree no. 36 of March 31, 2023 - Public Contracts Code in implementation of article 1 of Law no. 78 of June 21, 2022, delegating the Government in the field of public contracts The main features of the new Procurement Code, which replaces Legislative Decree no. 50/2016 and which is characterized by the push to digitize the life cycle of contracts, are: • the Community thresholds, which represent the value above which community attention is triggered and the related ‘Europeanisation’ of tenders occur, are periodically redefined by a directive from the EU Commission; • for tenders below the “Community threshold” the procedures available to contracting authorities are direct awarding and the negotiated procedure after consultation of economic operators; • defines the contents of the two design levels, namely the technical-economic feasibility project and the executive project; • among other things, tenders must indicate the Minimum Environmental Criteria. Directive (EU) 2023/959 of the European Parliament and of the Council of May 10, 2023 Directive 2023/959, amending Directive 2003/87/EC that establishes a Union-wide scheme for trading greenhouse gas emission allowances, and Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve within the Union for trading greenhouse gas emission allowances, provides: • an increase in greenhouse gas emission reductions; • the reporting and monitoring of emissions, as of January 1, 2024, of municipal waste incineration plants with a total rated thermal input exceeding 20 MW; • the lowering of the hydrogen and synthesis gas capacity limit for the application of the ETS, now 5 tons per day (previously 25t); • a new section that regulates additional activities, including the release of fuels for consumption in the residential, commercial, and transport sectors. The deed sets two deadlines for transposition: December 31, 2023 and June 30, 2024 only for the regulation of Chapter IV-bis with the exception of the reporting of historical emissions by 2025 (art. 30-septies, paragraph 4), which must be transposed by the earliest indicated deadline. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Evolution of legislation and impacts on the Business Units of the A2A Group Report on Operations 2024 A2A 375 Legislative Decree 147/2024 Legislative Decree 147/2024, implementing Directive (EU) 2023/958 of the European Parliament and of the Council of May 10, 2023 amending Directive 2003/87/EC regarding the contribution of air transport to the objective of reducing emissions in all sectors of the Union’s economy and implementing a global market-based measure, as well as Directive (EU) 2023/959 of the European Parliament and of the Council of May 10, 2023 amending Directive 2003/87/EC, establishing a scheme for greenhouse gas emission allowance trading in the Union, and Decision (EU) 2015/1814 on the establishment and operation of a market stabilization reserve in the Union’s scheme for greenhouse gas emission allowance trading, transposes at a national level the contents of EU Directive 2023/959, confirming the forecast regarding the reporting and monitoring of emissions, from January 1, 2024, of municipal waste incineration plants with a total rated thermal input exceeding 20 MW. Ministerial Decree No. 59 of April 4, 2023 - Regulation of the waste traceability system and the national electronic register for waste traceability pursuant to Article 188-bis of Legislative Decree No. 152 of April 3, 2006 The Ministerial Decree introduces the new waste traceability system (so-called RENTRI), regulating in particular: • the models and formats of the chronological waste register and the identification form, also indicating how they are to be filled in, stamped and kept; • the modalities of registration with RENTRI and related fulfilments, by those who are obliged or those who voluntarily join it; • the operation of RENTRI including the way in which data is transmitted; • how RENTRI data will be shared with the Higher Institute for Environmental Research (Ispra) for inclusion in the Waste Register; • the modalities of coordination between Mud and the fulfilments transmitted to RENTRI. The date of registration depends on the activity carried out and the number of employees of each individual company. In the most restrictive case, registration will be required from December 15, 2024 and within 60 days thereafter. Also from the same date, the new C/S and FIR register models will come into force. In relation to the operational modalities of RENTRI, future decrees are planned to regulate: • the operational modalities to ensure the transmission of data to RENTRI and its functioning; • instructions for operators to access and register with RENTRI; • IT requirements to ensure the interoperability of RENTRI with the systems adopted by operators; • how to fill in the FIR and the C/S Register; • the requirements for consultation services by the administrations concerned; • manuals and concise guides to support operators and users; • how the support tools work. 376 A2A Report on Operations 2024 Evolution of legislation and impacts on the Business Units of the A2A Group 7.4 Smart Infrastructures Business Unit 2024 provisional reference tariffs for the distribution and metering of natural gas Resolution 186/2024/R/gas approved the 2024 provisional reference tariffs for natural gas distribution and metering activities. Compared to 2023, the value of the RAB is increasing due to the recalibration of the growth rate of gross fixed investments conducted through Resolution 173/2024/R/ gas in 2024. This change accounts for the exceptional ISTAT revisions of October 2023, aiming to adequately capture the extraordinary inflationary trends of the period immediately preceding. Additionally, the 2024 tariffs are calculated by applying a rate of return on investments (WACC) of 6.5%. It’s important to highlight that the recent Resolution 513/2024/R/gas has updated this value for 2025, setting it at 5.9%. Finally, following a specific data collection in July 2024, Resolution 376/2024/R/gas recognized the residual value of investments related to a specific subset of smart meters installed in the very early years of the mass market roll out phase and decommissioned before the end of the regulatory useful life, resulting in an increase in the depreciation quota considered for determining the allowed revenues for the measurement activity, both for 2024 and for the 2021-2023 period. Tariff regulation for the natural gas distribution and metering service 2020-2025 Resolution 570/2019/R/gas, which approved the RTDG 2020-2025, was contested by several distributors, including Unareti S.p.A.. Today, the proceedings concluded with the annulment of certain aspects related to the definition and updating of recognized operational costs. In addition, during this process, a material error was identified in the calculations concerning the establishment of the initial level of recognized operating costs and the corresponding annual reduction (so-called X-Factor). In compliance with the administrative results of the dispute, ARERA has adopted: • resolution 409/2023/R/gas that corrects the material error by redefining both the X-Factor for the period 2020–2025 and the reference tariffs for 2020–2022 definitive and 2023 provisional, impacting Group A2A by approximately 1.7 million euro; • resolution 231/2024/R/gas that initiates the process for reassessing recognized operational costs, with a projected completion in 2025. RAB GAS value underlying 2024 provisional reference tariffs (millions of euro) Unareti ASVT LD Reti Reti Più Acinque Group (1) Total Centralized Capital 48 1 11 13 12 85 RAB Distribution 919 13 174 155 152 1,414 RAB Metering 114 1 21 37 27 201 Total 1,082 15 206 205 192 1,700 1\. Includes Lereti S.p.A. and Reti Valtellina Valchiavenna S.r.l.. The RAB values of Lereti S.p.A. are expressed net of the 4 locations (Varese, Brinzio, Casciago and Lozza) where the assets are owned by the municipalities. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Evolution of legislation and impacts on the Business Units of the A2A Group Report on Operations 2024 A2A 377 The RTDG 2023-2025, known as the second regulatory semi-period, introduced a significant innovation with a mechanism aimed at mitigating the adverse effects on parametric revenues eligible to cover distribution operating costs, stemming from the closure of gas PdRs due to heightened electrification. This mechanism, which operates based on trigger logics activated when certain conditions are met 3 , functions within an equalization setting and was activated for the first time in 2024 during the calculation of equalization for the year 2023. Reform of the regulation of the natural gas metering service Resolution 269/2022/R/gas reformed the regulation of the natural gas metering service by providing: (i) a fixed time limit (90 days) beyond which the gas smart meter installed is considered in any case to be in service (i.e. remotely read and controlled) and, therefore, (ii) applicability to them of the monthly reading obligations, (iii) the sending of measurement data to the SII by the 7th day of the month, (iv) an articulated system of indemnifications in favor of both end customers and distribution users and (v) mechanisms for mitigating the burden on distributors for the recognition of such indemnifications aimed at taking into account the actual technical limitations of the remote reading and management systems. The provisions came into force partly in October 2022 (new compensation mechanisms for distribution users) and partly in April 2023 (commissioning, frequency of metering data collection, making them available to the SII and compensation to end customers). During the 2023 RTDG equalization, which took place in the latter half of 2024, the mechanism of which was first applied as mentioned in point (v) to compensate the indemnities recognized to end customers as noted in point (iv). Reorganization of metering activities at entry and exit points of the natural gas transport network Resolution 512/2021/R/gas and its subsequent amendments approved the ‘Regulation of the measurement service on the natural gas transmission network (RMTG)’, which outlines the responsibilities and scope of metering and meter reading activities, stipulates the minimum and optimal plant requirements, defines performance and maintenance standards, and sets the levels of commercial quality for measurement activities. The new regulation increases the accountability of measuring plant owners and those responsible for reading activities through a complex framework of penalties and compensations, managed by the main transport company (i.e. Snam Rete Gas S.p.A.), aimed at delivering an adequate price signal to address non-compliance with service quality levels and stimulate actions for upgrading measurement plants, thereby improving performance. The penalties are determined based on the market price of gas, with a cap of 30 €/MWh established by Resolution 433/2023/R/gas and then incorporated into the Snam Rete Gas S.p.A. Network Code. The system starts in 2024, after the coordination phase in 2022 and the first performance monitoring in 2023, taking into account, among other things, potential advancements in measurement plants subject to this regulation (exceeding 200 Qero) and the quantification of penalties for measurement systems owned by distribution companies, based on the current Unaccounted Gas value of 6.86 €/MWh. Empowering mechanism applied to natural gas distributors in delta in-out management Resolution 386/2022/R/gas defined a mechanism for making distribution companies responsible for managing the so-called Delta IO, which refers to the difference between the gas entering the distribution network as measured at the Re.Mi cabin (citygate) and the gas withdrawn at the PdRs of end customers or interconnection points with other networks, aimed at identifying the most apparent and significant inefficiencies. The mechanism is based on the comparison, for each citygate, between the minimum and maximum allowable reference values of the Delta IO calculated for homogeneous groups 3\. See Resolution 737/2022/R/Gas, Annex A (RTDG), art. 45.2. 378 A2A Report on Operations 2024 Evolution of legislation and impacts on the Business Units of the A2A Group of plants and the value of the actual Delta IO of the specific citygate and the consequent valuation of the result through a gas reference unit price (equal to 3.33 €/MWh until 2023 and then increasing to 6.86 €/MWh from 2024) if the actual value falls outside the ‘exemption range’ determined by the minimum and maximum allowable values; the calculation excludes the quantities of gas related to localized losses and fraudulent withdrawals detected and appropriately quantified by distributors. The first session for the calculation and determination of any penalties, as deferred by Resolution 303/2024/R/gas, is set to occur in 2025, focusing on the 2020-2022 time frame and leveraging results from the multi- year adjustment session of the gas settlement process. In 2025, the second and third sessions for calculating and determining any penalties related to the three-year periods of 2021-2023 and 2022-2024, respectively, will also take place. For the latter, the data from the annual adjustment settlement session will be used, limited to the year 2024. Gas settlement and incentive mechanism applied to natural gas distributors Resolution 555/2022/R/gas introduced, among other things, a mechanism managed by the Integrated Information System (SII) aimed at incentivizing distributors to promptly rectify gas withdrawal data that have not positively passed the consistency check in the balancing or adjustment session. This process is based on specific technical criteria outlined by the SII in implementation of regulatory provisions, referred to as so-called sterilizations. The mechanism imposes an annual penalty, calculated by valuing the number of sterilizations executed by the SII using a differentiated unit amount according to the caliber of the meter installed at the PdR and applying a deductible equivalent to one sterilization per PdR. The initial application of the mechanism took place in the latter half of 2024, taking into account the sterilizations carried out during the February and July 2024 adjustment sessions, which pertain, respectively, to the years from 2020 to 2022 and 2023, and during the balancing sessions from April to December 2023. The associated penalties, which were very small in amount, were paid by the distributors of the A2A Group. At the same time, they informed the Authority’s Offices and the CSEA that this payment did not constitute acceptance of the calculations, as an extensive process is underway involving both ARERA and the SII, aimed, on one hand, at correcting and streamlining the settlement process and, on the other hand, at providing operators with adequate information to effectively rectify erroneous withdrawal data, whose completion is necessary for the optimal application of the mechanism in its entirety. Revenues allowed for the natural gas transport and metering service 2023-2024 Resolution 216/2024/R/gas approved the tariff fees for natural gas transportation and metering activities for 2025 and the corresponding reference revenues, while Resolution 234/2023/R/gas had approved the allowed revenues for 2024. Within the RTTG 2024-2027 program, endorsed by Resolution 139/2023/R/gas, the permissible revenues may differ from the benchmark revenues for calculating tariff charges due to the application of specific ROSS (Regulation for Spending and Service Objectives) criteria tailored for this activity, as defined by Resolution 497/2023/R/com. In view of this, the Authority has adopted a number of provisions aimed at minimizing these differences. Value of the RAB of Retragas S.r.l. underlying the reference revenues for the calculation of the 2024 and 2025 tariff fees millions of euro 2025 tariffs 2024 tariffs RAB Transport 57. 2 54.4 RAB Metering 1.9 1.4 Total RAB 59.1 55.8 Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Evolution of legislation and impacts on the Business Units of the A2A Group Report on Operations 2024 A2A 379 The already approved 2024 and 2025 reference revenues will be affected by the ex post application of the new ROSS tariff logics. In particular, for the purpose of calculating the final admissible revenues, the following will be used instead of estimated data: (i) the actual Fast Money of year t, resulting from dividing the actual total expenditure (opex+capex) of year t with the regulatory capitalization rate and (ii) the actual Slow Money of year t-1, resulting from dividing the total expenditure (opex+capex) of year t-1 with the regulatory capitalization rate. The reference revenues for 2025, originally calculated with the prevailing WACC of 5.9% in 2024, will also be impacted by the WACC update starting from January 1, 2025, as per Resolution 513/2024/R/com which has set it at 5.5%. Pilot projects in the natural gas sector Resolution 590/2023/R/gas approved the ranking of pilot projects eligible for the incentive provided for by Resolution 404/2022/R/gas, which had allocated a ceiling of 35 million euro to finance experiments in the gas distribution sector lasting up to three years and falling within the following project areas: • methods and tools for optimized network management (green gas development, reduction of fugitive emissions); • innovative uses of existing infrastructure (green gas development); • innovation interventions on the regulated infrastructures of the natural gas supply chain (increasing energy efficiency, digitalizing networks). The table outlines the 4 pilot projects approved by ARERA for gas distributors of the A2A Group: the total financing obtained exceeds 4.3 million euro, of which 1.3 million euro will be provided by CSEA during 2024 as an early advance on the approved funding. Project Company Project description Tariff contribution Smart Grid project: Dynamic pressure management Unareti Reduction of fugitive methane emissions by varying the operating pressure of the network according to demand trends, optimizing characteristic parameters 925,328 € Energy recovery: Macconago turboexpanders Unareti Integration with turboexpanders with the rolling lines of the Remi di Macconago cabin, to recover the energy dissipated during gas decompression 1,031,182 € Reverse flow plant pilot project LD Reti The project proposes the construction and operation of a plant for the compression of BioCH4 volumes fed into the distribution network and exceeding the consumption of end customers, into the transmission network by exploiting the DSO PoR 621,345 € RetiPiù Smart Less CO 2 RetiPiù Reduction of fugitive emissions from underground pipelines of methane gas distribution systems by their preventive detection using cathodic protection and vibro-acoustic analysis (for PE sections) 1,776,519 € 380 A2A Report on Operations 2024 Evolution of legislation and impacts on the Business Units of the A2A Group Some news on electricity distribution concessions Pursuant to art. 9 of Legislative Decree 79/99 (Bersani Decree), the electricity distribution service is carried out under a thirty-year concession granted by the Ministry of Economic Development (now MASE) for each municipal area. The Legislator has established an interim scheme for distributors already operating at the time, recognizing the possibility to continue their services based on concessions issued by March 31, 2001, and valid until December 31, 2030. Upon conclusion of the interim period, the Bersani Decree mandates that new concessions be issued through tenders, to be initiated no later than five years prior to their expiration. These should cover areas at least the size of the municipal territory and not exceed a quarter of all final customers. A regulation from the Minister of Economic Development will determine the procedures, conditions, and criteria, including the compensation for investments recognized to the previous concessionaire, for new concessions granted after December 31, 2030. The 2025 Budget Law (Articles 50 to 53) has addressed the matter by requiring that MASE, in agreement with the Ministry of Economy and Finance (MEF), on ARERA’s proposal and with prior agreement concerning the aspects of their competence in the Unified Conference as per Article 8of the Legislative Decree 281/97, and after receiving the opinion of the appropriate parliamentary commissions, draft, by June 2025, a decree to define the terms and procedures for the submission by concessionaires of extraordinary multi- year investment plans to improve security, resilience, and quality of service, as well as to enable increasing integration into the renewable energy system. The decree must also contain criteria for the evaluation and approval of such plans. If MASE, after consulting ARERA and MEF, gives a positive opinion on the operator’s proposal, the concession, upon payment of a fee that will be counted in the distributor’s capital investment, can be adjusted for a period of no more than 20 years, thus postponing the expiration to 2050 at the latest. Such tariffs were calculated by applying a rate of return on investments (WACC) of 6%. It’s important to highlight that the recent Resolution 513/2024/R/gas has updated this value for 2025, setting it at 5.6%. The 2024 provisional tariffs represent the first application to the electricity distribution and metering sector of the new ROSS tariff method (Regulation for Expenditure and Service Objectives), approved in its common terms also for gas transport and electricity transmission by Resolution 163/2023/R/eel, subsequently better defined in its general criteria by Resolution 497/2023/R/eel and, finally, specifically outlined for the electricity distribution and metering activity by Resolution 630/2023/R/eel approving the regulatory 2024 provisional reference tariffs for the distribution and metering of electricity RAB ELECTRICITY value underlying 2024 provisional tariffs (millions of euro) Elements Unareti LD Reti RetiPiù Reti Valtellina Valchiavenna Total RAB Distribution 943 61 26 22 1,052 RAB Measure (BT only, excluding 2G*) 28 1 3 1 33 Total RAB (excluding 2G) 971 62 29 23 1,085 * Limited to Unareti, the pro-forma RAB attributable to the 2G smart Meters (whose recognition is by means of a fixed instalment calculated using the so-called French method) can be estimated at approximately 91 million euro. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Evolution of legislation and impacts on the Business Units of the A2A Group Report on Operations 2024 A2A 381 framework in tariff matters (TIT, TIME and TIC) for the period 2024 – 2027. The new method covers distributors with more than 25,000 POD and overcomes the hybrid approach of rate of return for capital costs and price cap for operating costs. Its main features are: (i) to be focused on the individual legal entity and (ii) on the total annual spending actually incurred (operating costs + investments) as well as (iii) to consider new parameters such as the regulatory capitalization rate and the cost baseline (in the first phase of application only operating cost), both set for a two-year period ex-ante by the Authority for the specific operator. The regulatory capitalization rate allows the actual total spending to be divided into (i) Slow Money and (ii) Fast Money. Slow Money represents the portion of total expenditure related to the year’s investments considered for tariff purposes, which subsequently increases the regulatory invested capital. This capital is then amortized over the regulatory useful lives and annually adjusted with the gross investment deflator, resulting in the generation of the remuneration portion (through WACC) and the amortization portion within the admitted revenues. The Slow Money portion may, potentially, differ from the amount of investments actually recorded in the year. The Fast Money, instead, represents the part of revenues allowed to cover the actual operating costs eligible for regulatory purposes, excluding those that cannot be made efficient (so-called “on top”, the subject of full recognition). In addition, in order to encourage efficiency, the ROSS method provides a ‘menu regulation’ system that allows the operator to access, for a pre-defined period, a low or high potential incentive scheme (respectively SBP and SAP) according to which they can retain a more or less high portion (50% or 75% in the 3 years following the first, where the retention is 100%) of any extra-efficiency (or, symmetrically, sustain a more or less high portion of any extra-inefficiency) that arises from the annual comparison between the actual total expenditure and the baseline spending defined by the regulator, all of which is currently attributed to the Fast Money portion. For 2024, the operating spending baseline has been calculated from the actual spending incurred in 2022 carried forward to 2024 by means of the actual annual inflation 2023 and 2024 (for the latter initially using the best available estimates, while the actual figure will be used at the end of the year); it will subsequently be updated by applying the actual annual inflation and an efficiency rate (X-Factor) of 0 for SBP and 0.5% for SAP. Finally, to account for the potential incremental costs from new investments not present in the operational expenses of year t-2 underlying the baseline definition, there is a specific parameter called the Z-Factor, which can be activated by the distributor’s request and is subject to ARERA’s approval. Unareti S.p.A. has submitted this request for activation, which is currently under discussion between the Company and the Authority’s Offices. Technical and commercial quality of electricity distribution activities Resolution 617/2023/R/eel 4 approved the new regulation of the technical and commercial quality of the electricity distribution business as set out in the TIQD and TIQC 2024-2027, respectively. While for the commercial aspects the novelties are essentially related to updating the amounts of automatic compensation to account for inflation, the technical regulation provides numerous innovations aimed at accentuating, in line with the new ROSS method, the focus of the incentive regulation on the (annual) performance of the individual operator compared to their historical track record for the managed territorial areas, with an improving impact for the areas in penalty (and conversely, with a worsening impact for the areas in reward) compared to the previous method. In application of the latter, Resolution 543/2024/R/eel has determined the objectives related to the number and duration of interruptions, distinguished by the tertile to which each area belongs (Best | Intermediate | Worst), that must be achieved in 2024 and 2025. The new TIQD also introduces a new incentive mechanism for development interventions on 4\. Resolution approving the output-based and commercial quality regulations for electricity distribution and metering services, effective January 1, 2024, contained in the new TIQD (technical quality/stability) and TIQC (commercial quality), respectively. 382 A2A Report on Operations 2024 Evolution of legislation and impacts on the Business Units of the A2A Group distribution networks carried out by distributors with more than 100,000 POD and, therefore, subject to the preparation of the Development Plan (ref. Resolution 296/2023/R/eel), which incorporates the previous incentive system for interventions to increase resilience. There is an initial application phase, which includes investments starting from January 1, 2024 (requests to be submitted by February 28, 2024), and a fully operational phase, further clarified in Resolution 472/2024/R/ eel, for investments initiated between January 1, 2025 and December 31, 2027 (requests to be submitted by June 30, 2025). During both phases, the incentive amount will be based on the value of the benefits derived from eligible investments, with a cap system applicable to both the total eligible investments and the incentive obtainable from each eligible intervention 5 . Unareti S.p.A. applied for admission to this mechanism in February 2024, and the Authority’s evaluation is still ongoing. 2G Smart Metering Systems for the metering of low voltage electrical energy and approval of PMS2 by Unareti S.p.A. Resolution 278/2020/R/eel approved Unareti S.p.A.’s 2G smart metering system (PMS2) commissioning plan. This plan includes the replacement of approximately 1.3 million meters, with an extensive phase scheduled for 2020-2024 (the Brescia area was completed in 2021, and the installation is currently in progress in the Milan area). Despite the challenges posed in recent years by the so-called semiconductor crisis and the consequent impacts on meter supplies, the plan’s progress remains on track with forecasts. Following the latest investment report from 2023, detailing approximately 33 million euro, the implementation of the regulatory mechanisms (IQI Matrix that assesses the actual versus estimated unit costs based on the approved plan) will lead to a net penalty, which will be incorporated into the final approved revenues for 2024\. However, this will be largely compensated thanks to the agreement reached with the 2G meter supplier during the price review. Tariff regulation of withdrawals and injections of reactive energy From January 1, 2024, the revision of the reactive energy regulation has been completed, which provides, in particular, (i) the overcoming of the previous mere prohibition on the input of reactive energy and the introduction, in its place, of specific fees to be applied to such inputs, differentiated – as well as those applicable to the withdrawals – by voltage level (HV, MV and Other LV Uses > 16.5 kW) and time slot (F1, F2 and F3), (ii) the extension of the scope of application also to the interconnection points between distribution networks or between these and the transmission network and finally (iii) the simplification of the structure of the fees, with the definition of a single tier for the fee applicable to the withdrawals of reactive energy (over 33% of the active) and one for the reactive inputs for the points of final customers and interconnections in MV and LV. With regard to interconnection points falling within the homogeneous areas identified by Terna S.p.A. in coordination with distributors (i.e. areas characterized by the greatest impact of reactive energy exchanges on grid voltages and voltage control costs), specific mechanisms were introduced aimed, on the one hand, at shortening the time it takes to implement the interventions agreed upon between the competent distribution companies and Terna S.p.A., consisting in the application of an increase in the applicable unit fee and in the return of fees paid for reactive energy injections in the 24 months prior to the start of the compensation intervention and, on the other hand, at guaranteeing a good level of performance of the intervention itself, through the cancellation of the fees applicable to injections if the annual availability targets are met. Energy efficiency certificates and tariff contribution recognized to distributors Resolution 283/2024/R/efr established the tariff contribution at 248.99 €/TEE to cover distributors’ costs for acquiring energy efficiency certificates for the 2023 obligation year, with 5\. During the initial application phase, the eligible investment total is 15% of the complete investment amount outlined in the 2023 Development Plan, while once fully operational, the three-year cap is set at 85 €/POD multiplied by the number of PODs serviced by the operator as of December 31, 2024. In both cases, the cap on the incentive achievable from the single intervention is equal to the lesser of, on one hand, the monetary value of 2 years’ gross benefits generated by the intervention and, on the other hand, 13% of the lesser value between the expected and the actual investment Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Evolution of legislation and impacts on the Business Units of the A2A Group Report on Operations 2024 A2A 383 the additional fee set to zero. Since the value remains below the 250 €/TEE cap specified by the Ministerial Decree dated March 31, 2021, there were no negative economic impacts on the Group’s DSOs in the obligation year 2023. *** Activities of ARERA in the regulation and control of the Integrated Water Service (SII) Approval of the Water Tariff Method for the fourth regulatory period 2024-2029 (MTI-4) ARERA Resolution 639/2023/R/idr approved the new water tariff method for the period 2024- 2029 (MTI-4), confirming the general approach with some novelties: • extension of the regulatory period to 6 years, as opposed to the 4 years that had characterized the previous methods, with a view to greater stability and certainty; • determination of the tariff treatment applicable to project financing by third parties for projects that cannot be further postponed and for which the awarded Operator has no competence; • update of the coverage rate for financial and tax expenses to 6.13% (vs. 4.8%); • confirmation of the average sector cost for electricity for 2022 (recognized in the 2024 tariffs) of 0.2855 €/kWh, guaranteeing full cost recovery upon application; • starting in 2026, a 50% sharing of the savings achieved by the Operator in the procurement of electricity compared to a benchmark. The benchmark for 2024 has been set as a basket based on costs incurred by a sample of Operators, with 70% variable prices and 30% fixed prices. The benchmark for 2025 will be set as 90% variable prices and 10% fixed prices; • energy and environmental sustainability incentive mechanism to reward the reuse of purified wastewater and the reduction of purchased electricity. All A2A Group companies secured tariff approvals for the 2024-2025 two-year period from the appropriate Area Governing Bodies (EGAs) by October 31, 2024, a critical deadline for maintaining eligibility for the quality reward system: • A2A Ciclo Idrico S.p.A. - Brescia Area: +8.00% for both annuities; • Lereti S.p.A. - Como Area: +7.45% for both annuities; • Lereti S.p.A. - Varese Area: + 6.50% for 2024 and + 5.47% for 2025. Lereti S.p.A. appealed to the Regional Administrative Court against Resolution No. 52/2021 of the EGA of Como, which acknowledged 15.3 million euro as past items for the two-year period 2010-2011 but did not approve the recognition of these items for the period 2001-2009. With Sentence no. 1708/2023, the Regional Administrative Court affirmed the right of Lereti S.p.A.: a) to the application of the deflator and default interest on 2010-2011 past due items. With Resolution No. 13/2024, the EGA of Como has, in fact, approved only the application of default interest at the statutory rate from November 2020 until the final settlement, amounting to 933 thousand euro. The Company also challenged this measure on the grounds that it did not properly comply with the provisions of the Sentence; b) to the economic-financial rebalancing of the cost/revenue differential for the period 2001-2009 upon application to be submitted to the Area Governing Body pursuant to Article 29 of the Agreement regulating the relations between the Area Office and Lereti S.p.A.. The EGA of Como, with Resolution no. 44/2024, concluded that there was no indication of an economic-financial imbalance for the period analyzed from 2001 to 2009. Judgment no. 10181/2024 of the Council of State upheld the appeal filed by the EGA of Como, effectively dismissing the initial appeal made by Lereti S.p.A. against Resolution no. 52/2021, 384 A2A Report on Operations 2024 Evolution of legislation and impacts on the Business Units of the A2A Group and did not consider the company’s appeal concerning the economic-financial rebalancing of the cost-revenue differential for the 2001- 2009 period as worthy of acceptance. Transfer of ASVT S.p.A. overdue operations to Acque Bresciane S.r.l. in the Province of Brescia With Resolution no. 17/2022, the Brescia EGA concluded the preliminary investigation process concerning the determination of the residual value (initial RV) as at December 31, 2021 of ASVT S.p.A. expired operations and transmitted it to ARERA for final approval. Following the agreements signed between the parties, Acque Bresciane S.r.l. assumed responsibility for managing the service from ASVT S.p.A. as of June 1, 2023, although the actual cessation of activities by ASVT S.p.A. will occur on December 31, 2025. Through Resolution no. 11/2024, the EGA of Brescia approved the updated residual value (final VR) as of May 31, 2023, amounting to 74.2 million euro, and established the deferral of the payment in favor of ASVT S.p.A. of 10% of the difference between the final VR and the initial VR (equivalent to 3.2 million euro) as a guarantee for economic compensation between the companies in the event of negative MTI-4 adjustments. As of July 31, 2024, ASVT S.p.A. collected approximately 21.1 million euro, which represents 80% of the difference between the final VR and the initial VR, net of the withholding for MTI-4 adjustments and other components (debts/credits) as emerging from the balance sheet as of May 31, 2023. With Resolution no. 22 of December 20, 2024, the EGA of Brescia approved the additional MTI-4 adjustments specified in letter b) of article 31 of Annex A to Resolution 639/2023/R/IDR in favor of ASVT S.p.A., amounting to approximately 0.2 million euro, consequently releasing the portion retained as a guarantee by Acque Bresciane S.r.l. amounting to 3.2 million euro. Transfer of the expired operation of Cernobbio by Lereti S.p.A. to Como Acqua S.p.A. With Resolution no. 73/2022, the EGA of Como finalized the investigation to ascertain the VR of Cernobbio, quantifying it at 2.4 million euro as of December 31, 2021, and forwarding it to ARERA for ratification. Pursuant to the agreement signed between the parties, Como Acqua S.r.l. took over from Lereti S.p.A. in the management of the Cernobbio aqueduct service as from January 1, 2023\. Lereti S.p.A. collected the RV on February 28, 2023. With Resolution no. 17/2024, the EGA of Como approved the final VR as of December 31, 2022, quantifying it at just under 4 million euro, inclusive of both the investment portion and the additional adjustment items provided for in letter b) of article 31 of Annex A to Resolution 639/2023/R/idr, including financial and tax charges incurred up to the date of sale. Compared to the VR calculated on December 31, 2021, Lereti S.p.A. will have to receive a differential of approximately 1.6 million euro. Expiry of the concessions of some municipalities of Lereti S.p.A. within Varese On December 31, 2024, the concessions for the Municipality of Azzate, as well as those for the municipalities of Luvinate, Casciago, and Barasso, expired after being previously technically extended by the EGA of Varese. Lereti S.p.A. has challenged resolutions 54/2024 and 56/2024 made by the Varese EGA’s Board of Directors, which stipulate that the Luvinate Power Plant be transferred to Alfa S.r.l., the designated Sole Operator, based on territorial criteria. The Luvinate Power Plant, situated at the boundary between the municipalities of Barasso and Luvinate, serves the municipalities of Casciago, Luvinate, and primarily Varese. The company considers the Power Plant a historic asset of the Municipality of Varese, with its operation linked to the Company Number expired operations Initial RV* at 12/31/2021 (millions of euro) Final RV* at 05/31/2023 (millions of euro) Differential (millions of euro) Adjustments art.31 lett. b) (millions of euro) ASVT S.p.A. 15 42.2 74.2 32 0.2 *RV that considers the part related to investments. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Evolution of legislation and impacts on the Business Units of the A2A Group Report on Operations 2024 A2A 385 assignment agreement of the Municipality of Varese expiring in 2034, and therefore believes that the territoriality criteria outlined by the EGA should not apply. *** Activities of ARERA in the regulation and control of the district heating/cooling sector Upon the conversion into law of Legislative Decree no. 13 dated February 24, 2023, an amendment was included altering article 10, paragraph 17, letter e), of the Legislative Decree 102/2014, expanding ARERA’s expertise in the district heating sector with the introduction of a cost reflective regulation of tariffs 6 . Resolution 638/2023/R/tlr has approved the transitional tariff method TLR for the calendar year 2024, based on defining a revenue constraint calculated for methanized areas according to the principle of the avoided cost of a gas boiler. The reference price is determined monthly by applying the components provided by ARERA in the updates of the economic conditions for gas protection for a typical household with an annual consumption of 16,700 Sm³ and equipped with a G16 class gas meter (including also the excise duties and the area- specific additional charges). The avoided gas cost methodology was also corrected by including a cap of 10 euro/GJ (about 36 €/MWh) to the gas price component to be applied to the share of heat produced from sources other than natural gas. The calculation of the production quota under this cap uses the heat generation data from the previous year (i.e. 2023). Finally, the transitional method includes a safeguard clause that allows operators, in case of exceeding the constraint, to limit the repayment to a maximum of 10% of the conventional revenues (actual revenues recalculated assuming the application of a price with a cap of 36 €/MWh on non-gas heat sources, in the event that the price is indexed to gas). Regarding the Group companies, the comparison between actual revenues and the revenue constraint will be completed and submitted to ARERA by the deadline stipulated in the tariff method (June 30, 2025). In any case, most of the managed networks fall below the revenue constraint. However, it is still unknown how ARERA will define the repayment of the excess value in case the constraint is exceeded. With Resolution 597/2024/R/tlr, the 2024 TLR transitional tariff method has been extended to December 31, 2025, incorporating some modifications: concerning the avoided cost in methanized areas (impacting the A2A Group), a reward component is now introduced for the reduction of environmental externalities, calculated as the difference between the CO 2 emissions of a gas boiler with standard efficiency (225 kg/MWh) and the emissions of each TLR network, valued at 65 €/tonCO 2 , but with a cap of 9 €/MWh for the value of the environmental benefit. Below is a brief summary of the current regulatory framework of the sector: • with effect from January 1, 2024, Resolution 344/2023/R/tlr (TITT) confirmed the previous transparency provisions. The scope of the measure includes the minimum contents of supply contracts and billing documents, the methods of publication of the prices charged by operators and other information on service quality and environmental performance; • with effect from January 1, 2024, Resolution 346/2023/R/tlr (RQTT) confirmed most of the previous provisions on technical quality, introducing a specific standard on interruption management; • Resolution 478/2020/R/tlr (TIMT) defined the regulation of measurement for the period from January 1, 2022 to December 31, 2025, introducing service obligations and quality 6. Legislative Decree 102/2014 transposing Directive 2012/27/EC on energy efficiency had already attributed in Articles 9, 10 and 16 specific powers to the Authority also in the district heating/cooling sector, albeit only on specific non-tariff aspects, including the preparation of measures on connection and disconnection from the networks, right of withdrawal, commercial and technical quality of the service, and the manner in which the operators make public the prices of heat supply. The Authority is also entrusted with the task of implementing the provisions on metering, billing, access to consumer data in order to increase customer awareness and change consumer behaviour. 386 A2A Report on Operations 2024 Evolution of legislation and impacts on the Business Units of the A2A Group standards regarding the measurement of energy supplied to users, defining minimum reading frequencies, obligations for Operators to communicate findings, self- reading requirements, methods for estimating and reconstructing consumption, and data storage rules; • GSE procedures for the qualification of efficient district heating and cooling systems: in 2024, the A2A Group obtained qualification for 9 networks (8 networks of A2A Calore & Servizi S.r.l., including those in Brescia, Bergamo, and Milan, and the network of Comocalor S.p.A.). In total, 87% of the heat supplied by the A2A Group’s district heating networks is classified as efficient. Opening of an investigation by the AGCM against A2A S.p.A., Comocalor S.p.A. and Acinque Ambiente S.r.l. for alleged abuse of dominant position in the district heating sector (A565) On June 13, 2023, the AGCM resolved to initiate an investigation procedure against A2A S.p.A. (in its capacity as holding company), Comocalor S.p.A. and Acinque Ambiente S.r.l. for alleged breach of art. 3, par. 1 letter a) of Law 287/90, with particular regard to the abuse of a dominant position in the direct or indirect imposition of particularly onerous heat sale prices in the district heating sector (and above all not related to costs). By a decision on November 28, 2023, the AGCM resolved to also extend the procedure to Acinque S.p.A., due to its responsibility for the management and coordination of Comocalor S.p.A. and Acinque Ambiente S.r.l.. With a decision dated December 10, 2024, the Authority determined that the actions in question should be assigned only to Comocalor S.p.A, found culpable of anti-competitive behavior, and not to A2A S.p.A, Acinque S.p.A, or Acinque Ambiente S.r.l, resulting in an administrative penalty of 286,600 euro. Acquisition by A2A S.p.A. of exclusive control of a business unit of E-Distribuzione S.p.A. (C12644) In execution of the purchase agreement signed on March 9, 2024, A2A S.p.A. has completed the activities related to the closing of the acquisition of 90% of the share capital of Duereti S.r.l. from E-Distribuzione S.p.A., a corporate vehicle benefiting from the contribution by E-Distribuzione S.p.A. of the activities of electricity distribution and measurement in certain municipalities located in the provinces of Milan (west-southeast belt of Milan) and Brescia (Valtrompia). The transfer of the shareholding to A2A S.p.A. takes effect from December 31, 2024. On May 27, 2024, the acquisition transaction, subject to merger control regulations, was notified to the AGCM. In its meeting on July 23, the AGCM decided not to commence a preliminary investigation, as the transaction does not impede effective competition in the relevant markets and does not result in the creation or reinforcement of a dominant position. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Evolution of legislation and impacts on the Business Units of the A2A Group Report on Operations 2024 A2A 387 8 Risks and uncertainties Report on Operations 2024 390 A2A Report on Operations 2024 Risks and uncertainties The A2A Group has a risk assessment and reporting process which is based on the Enterprise Risk Management method of the Committee of Sponsoring Organizations of the Treadway Commission (CoSO report) and best risk management practice and is in compliance with the Corporate Governance Code by Consob, which states: “…Each issuer shall adopt an internal control and risk management system consisting of policies, procedures and organizational structures aimed at identifying, measuring, managing and monitoring the main risks.... ”. The Group has also adopted a specific procedure that defines in detail the roles, responsibilities and methodologies for the Enterprise Risk Management (ERM) process. This process requires a risk model to be set up that takes account of the Group’s characteristics, its multi-business vocation and the sector to which it belongs. This model is subject to periodic revision consistent with the evolution of the Group, and the context in which it operates. The methodology adopted is characterized by the regular identification of the risks to which the Group is exposed. In this context, an assessment process is carried out which, through the involvement of all its structures, allows the Group to identify the most important risks and establish the relative controls and mitigation plans. At this stage, the involvement of risk owners is essential as responsible for the identification, assessment and update of risk scenarios (specific events in which risk can materialize) related to activities of its competence and Focal Points that facilitate the continuous monitoring of risks, guaranteeing a timely flow of information to Risk Management. This phase is carried out with the support and coordination of the Group Risk Management organizational structure through operating methods that allow clearly identifying risks, the related causes and management methods. The methodology adopted is modular and leverages on the fine-tuning of the experience gained and methods of analysis used: on the one hand, it aims to develop the risk assessment further with specific reference to the consolidation of the mitigation process and on the other to develop and integrate risk management activities in business processes. This evolution is carried out consistent with the gradual increase in the awareness of management and the business structures about risk management issues, achieved among other things through the use of specific training support provided by Group Risk Management. The ERM Organizational Structure also supports the process for maintaining certifications as well as the activities preparatory to the adoption of new certification frameworks. Set out below is a description of the main risks and uncertainties to which the Group is exposed. Achievement of the objectives defined in the business plan Reference is made to the risks connected with failure to achieve or partial achievement of the development and profitability objectives outlined in the Business Plan, which could have both an economic and financial impact as a result of lower growth in the Group’s margins and a reputational impact as a result of failing to meet the expectations of stakeholders with regard to sustainability commitments. The company Business Plan confirms the ambitious growth targets set in previous years, mainly in terms of the circular economy (e.g. recovery of materials and energy, exploitation of heat otherwise dispersed, etc.) and energy transition (support for growth in renewable energy sources, exploitation of the electricity generation of combined cycle plants, support 8.1 Risks and uncertainties Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Risks and uncertainties Report on Operations 2024 A2A 391 possible and, for certain product categories, an automatic updating of price lists to ISTAT indices. To support the path of sustainable growth, ongoing training activities were initiated, and focal points have been identified to support the increasing integration of sustainability principles in business processes, contribute to defining the objectives of the Sustainability Plan, promote and enhance new sustainability projects, and encourage the circulation of information on these issues. Legislative and regulatory risks The A2A Group operates in sectors that are strongly regulated by the provisions of independent administrative authorities and deals with a multiplicity of stakeholders at various institutional levels. Regulation impacts not only on traditional natural monopoly sectors (such as transport energy infrastructure and the integrated water cycle) but also on free market sectors (in terms of market design and continuous enforcement of consumer protection). Since 2018, the Regulatory Authority for Energy Networks and Environment (ARERA) has taken over the regulation and control competences over the integrated waste cycle and, from 2023, also over the setting of heat transfer prices in district heating 1 . Considering the significant contribution of regulated activities to overall margins, the Group has adopted a policy of monitoring and managing regulatory risk in order to mitigate, as far as possible, its effects through a multi-layered control, which primarily involves collaborative dialogue with institutions (including the most important: ARERA, Competition and Market Authority or AGCM, Competition and Market Authority or AGCM, Communications Guarantee Authority, Transport Regulation Authority, Ministry of Environment and Energy Security) and with the sector’s technical bodies/entities (Gestore dei Servizi Energetici S.p.A., Gestore dei Mercati Energetici S.p.A., Terna S.p.A. and Snam S.p.A.) – the so-called Sector Authorities, alongside active participation in trade associations. for the electrification of consumption). The main risk factors affecting the various areas of development include: possible critical issues related to authorizations and adverse territorial contexts, the presence of major competitors capable of hindering the achievement of market shares in domestic and foreign markets, uncertainties on the legislative and regulatory evolution related to both regulated and deregulated businesses, and commercial risks related to the targets defined in the Plan adopted to increase the customer base. In addition, international crisis situations and ongoing geopolitical tensions could lead to both difficulties in the procurement of certain materials used in the ordinary operation/ maintenance of plants as well as at the construction sites of development initiatives, and a potential further increase in prices linked, for example, to the increase in ship transport costs (increase in insurance costs and re-routing by shipowners) with impacts on materials, equipment, machinery and services. To support the execution of development initiatives, mainly organizational measures have been highlighted: the presence of corporate structures focused on analyzing reference markets, assessing the Group’s market positioning, evaluating competitors, and anticipating sector developments in the medium to long term. These structures are also responsible for coordinating the strategic planning process and supporting senior management in strategic evaluations to ensure a structured growth process, including external expansion. The presence of additional structures dedicated to risk measurement and monitoring is also highlighted, alongside those focused on managing relations with the relevant Authorities, ensuring effective and timely information on the evolution of pertinent regulations. Of note is the recruitment of professionals with strong scientific- technological (STEM) skills. On the procurement front, we operate through careful planning of requirements that takes into account the lengthening of acquisition lead times, the contracting of backup suppliers, the increase of inventories of strategic materials when 1\. During the conversion into law of the LD no. 13 of February 24, 2023 (PNRR LD), an amendment was inserted that modified art. 10, paragraph 17, letter e), of Legislative Decree no. 102/2014, extending ARERA competences over the district heating sector with the introduction of a cost-reflective regulation of service tariffs. Resolution 638/2023/R/tlr approved the TLR Tariff Methodology, which defines a transitional economic regulation for calendar year 2024, based on a revenue constraint calculated using the avoided cost methodology (gas) for the end customer. 392 A2A Report on Operations 2024 Risks and uncertainties Regions, on the other hand, are adopting to regulate the ‘suitable areas’ for the construction of production plants powered by renewable sources which, if excessively restrictive, could slow down the development targets set by the A2A Group in this sector; • the termination of the water service concessions and their transfer for consideration to the Single Area Operator (with particular reference in the immediate term to the municipalities that have expired and/or are being managed on a transitional basis by A2A Ciclo Idrico S.p.A. and those close to expiry of Lereti S.p.A. in the Como and Varese areas); • the impacts on the development of district heating following the recent start of the regulation by ARERA; • the potential decline in the portfolio of free- market electricity customers due to the rule allowing vulnerable customers to opt into the Gradual Domestic Protection Service by June 30, 2025, along with the tenders expected to be held in 2025 for the allocation of the vulnerability protection service for electricity customers in this category; • the possible inclusion of waste-to-energy plants treating municipal waste in the Emission Trading System from 2028 and, potentially, for those treating special waste from the treatment of municipal waste, earlier than said expiry (see transitional climate risks). Finally, it should be noted that in view of the numerous interventions of the AGCM on the sectors in which the A2A Group operates (in terms of initiating investigations for abuse of a dominant position and agreements, as well as fact-finding investigations, requests for information and moral suasion, particularly on the consumer protection side for alleged unfair commercial practices in the retail sale of electricity and gas, also in view of the completion of deregulation) the Board of Directors of A2A S.p.A. approved in 2019 the adoption of the Antitrust Compliance Program with the consequent appointment of a Person Responsible for its implementation. In 2020, the Antitrust Code of Conduct and an Antitrust Guideline were adopted, which regulates the The Regulatory Affairs and Competition organizational structure works in close liaison with the Business Units and implemented constantly updated monitoring and control tools (including the Regulatory Review produced every six months or the Regulatory Agenda drawn up at the time of the Budget/Plan) in order to consider the potential impacts of the regulation on various companies. The organizational structure also oversees regulatory risk for the Acinque and AEB Groups in order to manage its impact in a coordinated manner. It should also be mentioned that a new Procedure for managing Operational Compliance for individual companies is in force, requiring Regulatory Affairs and Competition to: • gather feedback regarding the grounding of the operational requirements that emerged from the mandates provided by the sectoral authorities; • structure 10 second-tier compliance checks each year regarding the methods companies have chosen for the implementation of regulatory requirements. The main topics involved in current changes in regulations and legislation, with major potential effects on the Group, are as follows: • the rules governing reallocations of large-scale hydroelectric concessions following Law no. 12/2019 which, in article 11-quater, provided for an overall reorganization of the subject, giving the Regions an increasingly important role (for the Lombardy Region, reference is made to the Regional Law no. 5/2020 as amended by subsequent Regional Law no. 19/2021) 2 ; • the annual renewal of the essentiality regime with reinstatement of costs for the San Filippo del Mela fuel oil power plant, which does not allow a medium-term vision of the site’s future; • the effects of potential delays related to the commissioning of the new Monfalcone CCGT scheduled for 2026. The new CCGT benefits from the capacity market and a number of extensions for possible commissioning delays; • the effects of the numerous administrative acts that MASE, on one hand, and the individual 2\. With reference to the Resio (BS) concession, owned by Linea Green S.p.A. (a wholly-owned subsidiary of A2A S.p.A.), the Lombardy Region announced with R.C.R. 1602 of December 18, 2023, the start of the reallocation procedure, with publication of the notice on April 22, 2024. The appeals lodged by Linea Green S.p.A., A2A S.p.A., and Elettricità Futura concerning this procedure, in which Linea Green S.p.A. itself and five other operators (one of which is foreign) took part, remain under consideration. The tender procedure is still underway. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Risks and uncertainties Report on Operations 2024 A2A 393 Risks associated with compliance with debt covenants This risk exists if the loan agreements provide for the option by the lender, upon the occurrence of certain events, to request early repayment of the loan, thus entailing a potential liquidity risk for the Group. In the section ‘Other information 6) Financial risk management – g) Risk relating to covenant non-compliance’, the Consolidated annual financial report details these risks pertaining to the A2A Group. The same section also lists the loans that contain financial covenants. Interest rate risks Interest rate risk is related to the uncertainty associated with the trend in interest rates, changes in which can result in, given a certain amount and composition of debt, an increase in net financial expenses. The exposure to interest rate risk arises mainly from the variability of financing conditions, in the event of taking out new debt, and from the variability of cash flows related to the interest produced by the variable- rate portion of debt. The volatility of financial expenses associated to the performance of interest rates is therefore monitored and mitigated through a policy of interest rate risk management aimed at identifying a balanced mix of fixed-rate and floating rate loans and the valuation of the use of derivatives (hedging and pre-hedging) that limit the effects of fluctuations in interest rates. To provide a better understanding of the risks of interest rate fluctuations to which the Group is subjected every six month at December 31 and June 30, a sensitivity analysis was conducted of net financial expenses and valuation items of derivative financial contracts as a result of interest rate fluctuations. The section ‘Other information 6) Financial risk management b) interest rate risk’ of the Consolidated financial report illustrates the effects on the change in financial charges and in the fair value of derivatives resulting from a change in the forward curve of interest rates of +/- 50 bps. rules of conduct that Group employees must observe in order to avoid antitrust violations (document available on the company Intranet). In the meantime, training sessions continued for the personnel of the various Business Units, and a specific training tool was activated and disseminated to all Group personnel on an e-learning platform. For a more detailed discussion of these risks, reference should be made to the section ‘Regulatory developments and impacts on the Business Units of the A2A Group’. Financial risks Liquidity risks Liquidity risk is the risk that the Group is unable to meet its obligations in a timely manner or that it is able to do so under unfavorable economic conditions due to situations of tension or systemic crisis or to the changed perception of its riskiness by the market. To manage this risk, the Group guarantees the maintenance of adequate financial resources, understood as liquid assets and committed and uncommitted credit lines, sufficient to meet unexpected commitments over a given time horizon. At December 31, 2024, the Group had cash equivalents resources totaling 1,549 million euro, as well as committed and unused credit lines totaling 1,815 million euro. The Group also manages liquidity risk through a Bond Issuance Programme (Euro Medium Term Note Programme), featuring a base prospectus approved by the Commission de Surveillance du Secteur Financier (CCSF), and an EMTN Programme with a base prospectus approved by the National Commission for Companies and the Stock Exchange (CONSOB). The size, substantial enough to allow the Group timely access to the capital market, is 7 billion euro. As at December 31, 2024, 2,250 million euro was available. The Group’s ability to obtain loans in the banking or financial markets depends, among other things, on prevailing market conditions and the Group’s rating at the time of the need for financing. 394 A2A Report on Operations 2024 Risks and uncertainties Risks related to commodity and energy prices Given the features of the sectors in which it operates, the Group is exposed to energy scenario risk, namely the risk linked to changes in the price of energy raw materials (electricity, natural gas), and the prices of CO 2 emissions allowances (EUA). Significant, unexpected and/ or structural changes in commodity prices, especially in the medium term, may result in a reduction in the Group’s operating margins and cash flows. To mitigate these risks, the Group has approved an Energy Risk Policy that regulates the procedures by which commodity risk is monitored and managed, or the highest level of variability to which the result is exposed with reference to the trend of prices of energy commodities. Consistent with the provisions of the Policy, the commodity risk limits of the Group are defined and approved annually by the Board of Directors. Market risk is mitigated by constantly monitoring the total net exposure of the Group’s portfolio and addressing the main factors affecting the trend. Appropriate hedging strategies are defined, where necessary, designed to maintain this risk within the established limits, typically through hedging at 36 and 48 months. The objective of stabilizing the cash flows generated by the asset portfolio and outstanding contracts is thus pursued through the management of physical contracts and derivative financial instruments, limiting to the extent possible, the volatility of the Group’s economic and financial results following changes in commodity prices. Social-environmental context risk Possible opposition (the so-called “NIMBY - Not In My Back Yard” phenomenon) to the presence of plants promoted by certain stakeholders and amplified through the use of social media, due to a negative perception of certain activities (such as waste recovery and disposal or the installation of photovoltaic and wind farms) in the areas served, could hinder the regular operation of existing plants as well as the authorization process for new plants and therefore, the growth planned by the Group in some business areas. Risks associated with industrial and business activities Macroeconomic context risks The Group’s activities are sensitive to economic cycles and general economic conditions in the countries in which it operates. A slowing economy could determine, for example, a drop in consumption and/or of industrial production, having as a result a negative effect on the demand for electricity and of other carriers offered by the Group, thereby affecting the results and prospects and preventing the implementation of planned development strategies. The year 2024 saw, at continental level, a relative change in the economic dynamics that characterized the previous year and that were linked to the current complex geopolitical and economic framework: the economy of the Eurozone is resuming moderate growth, also by virtue of a stabilization of energy commodity prices on the European markets, as a result of the effectiveness of the policies of diversification of natural gas supply sources undertaken at the time. The global economy continues, however, to be characterized by a climate of relative uncertainty, which affects both the volatility of commodity prices and supplies in general, and the timing of procurement of materials and equipment, with possible impacts on manufacturing activities and international trade. In the years ahead, the ongoing tensions related to a potential reduction in gas and oil supplies from the countries that have taken over from Russia as suppliers, the persistent challenges in maritime traffic, the fragility of the largest Asian economy, and the possible repercussions of protectionist measures by significant non- European trading partners could adversely affect the recovery trajectory of continental economies, particularly Italy. The more or less pronounced effects will depend on the intensity and duration of the crisis. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Risks and uncertainties Report on Operations 2024 A2A 395 In the reporting requirements E1 ESRS 2 IRO-1, ESRS E1 SBM-3, the Sustainability Report provides a comprehensive disclosure on climate risks, including an economic and financial evaluation of significant risks, to which it refers for more details and for information on risk management and mitigation activities. Physical climate risks The A2A Group has identified the following main physical climate risks: • changes in the rainfall regime (hydraulicity) can present both a risk and an opportunity: uncertainties linked to variations in water availability for the Group’s main hydroelectric basins. To ensure optimum exploitation of water resources available for energy, the Group has established organizational structure dedicated to the development of analyses and engineering models to support the planning, both medium and short-term, of hydroelectric plants; production planning also makes use of the support of weather forecasts and the presence of expert people within the Group; moreover, investments are planned both to optimize the use of the available and derived water resources for hydroelectric purposes (pumping). • The resilience of electricity distribution networks, which may manifest as service interruptions (blackouts) primarily caused by: \- peaks in demand for summer air conditioning \- heat waves \- flooding caused by heavy rains \- greater energy demand as a result of the electrification of services (electric cars, development of public transport, heating). In order to mitigate this risk, in addition to the usual maintenance activities, the Group planned and launched the strengthening of the interventions to rationalize the meshing of the grids, the construction and commissioning of new primary and secondary substations, a three-year plan to increase the resilience of the grid in agreement with ARERA as well as the expansion of remote asset management systems. There are also remote operational controls, advanced technical safety tools, emergency intervention teams as well as specific safeguards for To mitigate this risk, the Group has set up organizational structures dedicated to monitoring institutional relations, with local communities and the territory, in order to establish and maintain collaborative dialogue with the various stakeholders. Within this framework, the Group, in order to build consensus around its initiatives, participates in technical round tables with institutional counterparts, especially at local level, as well as through the organization of multi-Stakeholder forums designed to promote dialogue with the local community. The forum was established with the aim of identifying solutions that can respond in a targeted and effective manner to the needs and expectations of stakeholders and that allow promoting the environmental, economic and social sustainability activities carried out by the Company and the Group and services provided in the territory. For the management of this risk, the Group has also adopted an IT platform for stakeholder and relationship mapping, which is useful for carrying out a gap analysis and supporting the planning of Stakeholder Engagement and improvement activities. Risks related to climate change The A2A Group has in place a system for identifying, assessing and managing risks related to climate change that is an integral part of the Group’s Enterprise Risk Management process and, from this reporting year, is subject to the requirements of the Corporate Sustainability Reporting Directive (CSRD). The climate risks identified for the A2A Group are the result of the analysis carried out considering: • the ESRS E1 Climate Change standard prepared under the Corporate Sustainability Reporting Directive (CSRD); • climate-related hazards as classified by the EU Taxonomy and delegated acts issued in implementation of the EU Regulation 2020/852 on Green capital expenditures: • the businesses operated and services offered by the Group; • the recommendations issued by the Taskforce on Climate-related Financial Disclosure (TCFD). 396 A2A Report on Operations 2024 Risks and uncertainties including in the area of efficient district heating, carries out studies on technological alternatives for heating, and participates in round tables with local authorities on environmental objectives; • rising summer temperatures of waterways/ canals/sea, heat waves, and periods of drought. Transitional weather hazards The identified transition risks include: • ETS Directive Review: risk concerning the application of the Emissions Trading Scheme to the Group’s waste-to-energy facilities following the revision of the EU Directive. • E-mobility Plan Targets: potential shortfall in achieving the growth targets outlined in the Industrial Plan for electric vehicle charging stations as a result of: \- penetration rate of electric vehicles lower than expected; \- increase in the prices of materials and supplies; \- extension of delivery times. • Biomass Plan Targets: potential shortfall in achieving the growth targets foreseen in the Industrial Plan relating to the development of bioenergy due to: \- modifications in the normative framework governing the incentive system; \- delays in obtaining authorizations; \- variations in the availability and price of biomass. • The variability in the cost of CO 2 emission permits (EU Allowances) can constitute both a risk and an opportunity. The Group’s electricity production is indeed diverse in terms of energy sources, and any fluctuations in the cost of the EUA, linked to the national energy price, could lead to A2A Group experiencing lower or higher margins than those projected in the Strategic Plan. With the 2025-2035 Strategic Plan, the Group has committed to decarbonizing its own activities and its supply chain. The achievement of decarbonization targets is subject to the following main sources of uncertainty: • possible geopolitical, market or climatic situations that could lead to an increase in infrastructure, which are more exposed to risks of interruption in the delivery of services. The ‘Management of the effects of extreme rainfall’ Working Group was set up, responsible for coordinating the prevention and management of disruptions and the related communication activities in the event of flooding of the secondary cabins. • Scarcity of drinking water resources: risk of failure to continuously supply drinking water in the event of prolonged periods of drought and/ or changes in the hydrogeological regime. In order to guarantee, even in the long term, the supply of drinking water on a continuous basis, the A2A Group monitors and maps leaks from the water mains and intervenes with investments to reduce them (see the Aquarius project, installation of sensors - noise loggers - on the Brescia water mains, capable of detecting in real time the “noise” of a leak leaking from a pipe, guaranteeing a high level of operation and maintenance of the water mains, reducing intervention times and excavation and inconvenience to the road network and pedestrians); the Group also has an investment program in place for the interconnection of aqueducts and the search for new water supply sources, including through the use of innovative technologies. • Extreme weather events: these are risks to the Group’s assets and business continuity as a result of risks arising from acute physical weather hazards (e.g., floods, landslides, water bombs, tornadoes, hail) which affect the Group’s plants and infrastructure. Other identified physical weather risks include: • increase in average autumn and winter temperatures: potential risk of decreased heat and gas sales. With reference to the reduction of thermal energy demand by end users compared to what was planned, the Group, through the Business Plan, implements the following risk reduction strategies: a) development of district heating networks and increase in the number of customers; b) optimization of energy costs with thermal waste recovery projects and revamping of existing plants. In addition, the Group monitors investment support policies for the development and extension of TLR networks, Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Risks and uncertainties Report on Operations 2024 A2A 397 dams, waste recovery, treatment and disposal plants, heat cogeneration plants, electricity, gas and heat distribution networks, waste collection and urban hygiene services, integrated drinking water supply service, etc.). Obsolescence, accidental mechanical and/or electrical failures, infrastructural failures, fires, possible terrorist attacks, and labor strikes could result in damage to assets and, in the worst cases, compromise the Group’s production capacity, as well as the possibility of guaranteeing the continuity of services provided. Added to this, with specific reference to the current context, is the potential difficulty in procuring materials and supplies for routine maintenance of plants and infrastructure. An increasingly significant issue is the potential effects of the current network’s age on the continuity of electricity distribution in the Milan area. There is a risk that the Group will not be able to support and fulfil, within the established timeframes, its multi-year plan for modernizing and expanding its electricity network, with resulting impacts related to significant recurring blackouts affecting the Milan metropolitan area. In response to this issue, it is important to highlight that a number of mitigating and preventive measures have been enacted: a strategy to priorities maintenance work on the oldest sections of the network, the gradual replacement of the most problematic components with new ones that are technologically advanced and more reliable, and the creation of an algorithm designed to priorities interventions in the control room to optimize emergency management. All these factors can also lead to cost increases, damage to third parties, as well as penalties imposed by the competent authorities. In order to mitigate these risks, the Group realizes preventive management strategies aimed at reducing the probability of their occurrence and/or mitigating their impact. In addition, the Group has investments in place to ensure constant technological updating and adequate levels of plant maintenance, emergency management plans and procedures and a Crisis Plan that provides for the establishment of interdisciplinary management committees, organized at both Group and Business Unit level and coordinated among them. the demand for energy from fossil sources, either to meet a possible higher domestic demand for energy or to compensate for any lower production from renewable sources (hydroelectric) and/or any lower imports; • insufficient technological development, which may not adequately support the replacement of fossil production and/or the removal of carbon (“carbon removal”) from processes that are inherently “carbon intensive” (hard-to-abate). To mitigate these uncertainties, the Group analyzes and evaluates possible investment initiatives in line with the planned decarbonization pathway and carries out experiments and investments in carbon capture. Climate change and health, safety and environment. The Group also takes into account the possible effects of climate change on people as well as the environment and land. Collection and urban hygiene activities, those for network services and at plants and construction sites involve workers being outdoors, who are particularly exposed to heat waves. The Group has identified this risk, which can affect both individual well-being and the risk of injury, and has implemented mitigation measures, such as the choice of light-weight fabrics in tenders for the supply of clothing, and awareness-raising and information to its employees, including through the activation of an alert system in the event of expected sharp rises in temperature. Acute phenomena such as heavy rainfall and ‘water bombs’ can lead to flooding in plants and/or overflowing of containment tanks placed to protect any spills, with the risk of potential pollution of the soil or water bodies in the vicinity. To mitigate this risk, the Group modified the capacity of the containment systems in the most critical situations. Operating risks due to the ownership and operation of electricity generation, cogeneration, waste treatment and recovery plants and distribution networks and plants. The Group manages production sites, infrastructure and services that are operationally and technologically complex (power plants, 398 A2A Report on Operations 2024 Risks and uncertainties To mitigate this risk, numerous actions are in place in the Group: outline of internal policies and procedures, issuing of specific policies that provide a cyber security risk analysis and management model integrated with company processes, tools for segregating access to information, progressive adoption of measures aimed at increasing security by requiring additional factors to verify the user (Multi Factor Authentication), procedures relating to the use of mobile devices, assessments concerning the vulnerability of systems and applications, specific software for malware research, specific training activities and tests to increase employee awareness (e.g. phishing e-mail simulations), periodic IT Security risk assessment activities to identify the most critical applications, internal audits focused on the resilience of the systems and effectiveness of the measures taken and finally a project aimed at identifying a structured application patching process. Moreover, it is noted that a unified IT/OT treatment program has been defined and agreed upon among the organizational structures in charge of risk management, which monitors ongoing activities together with the mitigation initiatives identified during the year 2023 and which will be implemented in the coming years: thus, the Group’s roadmap on cyber resilience has been organically divided into different sites, which in turn accommodate numerous initiatives per area of intervention. Furthermore, we highlight the continuous improvement of the Security Operations Center in order to increase the effectiveness of threat monitoring, as well as specific interventions to mitigate emerging risks, also following the consistent use of remote working methods. Lastly, it should be noted that in 2022, the Company achieved ISO 27001 certification, an international standard for information security: with this in mind, the scope of the aforementioned standard will be extended, in order to achieve and standardize, at Group level, operating and management methods in the field of IT security. Any inadequacies, fragmentations, unavailability and/or malfunctioning of the applications could compromise the Group’s ability to operate within the set times and methods. These factors could result in a loss of reputation with customers as The Group takes out insurance cover against any direct and indirect damage which may arise from other types of risk. As part of the insurance contract, inspections are carried out periodically on the plants and measures to improve the safety of assets and loss prevention are recommended/verified. Information technology and operational technology risks. The A2A Group’s activities are managed through IT (Information Technology) and OT (Operational Technology) systems and networks that support the main business processes, whether operational, administrative or commercial. In particular, the Group uses IT systems to record, process and summarize financial information and results of operations for internal reporting purposes and to comply with regulatory, legal and tax requirements. In addition, the Group collects and stores at Data Centers, sensitive data, including intellectual property, business information and personal information of customers, service providers and employees. The functioning of these information and technology systems and networks, as well as the processing and storage capacity of this data in a secure manner, are fundamental to the Group’s activities. The increase in threats to the security of the IT infrastructure, due on the one hand, to the increasingly pervasive use of personal tools following the remoteness of work and on the other, to the increase in the probability of cyber attacks, including “state sponsored” ones, as well as forms of increasingly sophisticated cyber crime, represent a risk to the security of the Group’s systems and networks and to the confidentiality, availability and integrity of its data. A security breach could expose the Group, its customers, service providers and employees to risks of misuse of information or systems, compromise and fraudulent use of confidential information, loss of financial resources, data manipulation and destruction as well as operational disruption. All of these factors could adversely affect the Group’s reputation, competitive position, business and results; security violations of information systems could also result in litigation, fines and disqualification penalties, as well as operational and other costs. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Risks and uncertainties Report on Operations 2024 A2A 399 resilient. In this perspective, various agreements and MoU were signed with important players in the sector to outline a program for the gradual transfer of corporate applications and the simultaneous abandonment of the current physical Data Centers. Finally, it is worth highlighting that the new applications and platforms adopted within the corporate environment are inherently cloud-based. With reference to the Business Continuity Plan, critical processes were identified on the basis of evidence from the Business Impact Analysis and a Business Continuity Management System (SGCO) was arranged. Thanks also to the presence of the Disaster Recovery Plan mentioned above, some Group companies obtained the ISO 22301 (Business Continuity Management) certification. In the coming years, the certification scope will be extended to other Group subsidiaries. Lastly, there is growing attention to the possible impact of the application of generative artificial intelligence systems on the businesses operated by the Group; in May 2024, the AI Act was approved at EU level, a first regulation of the subject at EU level that, adopted in all European nations, will impose a series of obligations and constraints on companies and institutions that make use of artificial intelligence in their information systems, in accordance with the degree of risk estimated. The A2A Group has already carried out an initial activity of recognizing and mapping AI applications by risk class, has drawn up and issued a policy on the use of Generative AI in the company which regulates, amongst other things, the control activities for the use of AI and has set up an ad hoc Working Group with the task of defining guidelines and requirements for the governance and management of risk, taking a census and classifying business applications that make use of AI and analyzing their risk level in accordance with the AI Act, carrying out training activities, and drawing up the necessary guides for using the new technology. well as economic and financial impacts. In order to mitigate this risk, activities are underway to renew and/or replace existing platforms or to rationalize the application systems in use, particularly as regards the Customer Relationship Management and billing platforms supporting commercial activities. Furthermore, a new ‘Software Asset Management’ tool has been introduced at the Group level, which enables the continuous monitoring of the obsolescence and vulnerability of applications in use, as well as the development of the most appropriate action plans for their renewal. The initiatives listed above are aimed at achieving a gradual de- obsolescence of the Group’s IT architecture with a view to streamlining operational activities as well as increasing the robustness of processed data against external threats. There is also the risk of possible relevant and prolonged interruptions to information systems and company infrastructures as a result of potential events (natural or otherwise) affecting them, with potentially even critical consequences on the Group’s ability to maintain the continuity of its systems. To mitigate this risk, the Group has implemented its Disaster Recovery (DR) plan, which provides for the recovery of the most critical applications and related enablers within specific time frames, periodic back-up and duplication of data. The DR plan can today count on the presence of two Data Centres (primary and back up), equipped with high levels of security in terms of service continuity; tests are periodically carried out to verify compliance with the continuity requirements of the systems at the two Data Centers, which consist firstly in the ability to restart the systems following their accidental shutdown, and secondly in compliance with recovery times (i.e. “RTO - Recovery Time Objective”). In any case, a strategy (Cloud Transformation) was outlined and launched aimed at transferring most of the Group’s systems and applications to the cloud over the next few years, in order to make the information systems more usable and 400 A2A Report on Operations 2024 Risks and uncertainties Environmental risks The emergence of such risks may occur as a result of accidents in production processes and of the particular characteristics of the business carried out by the Group, which may lead to reactions by the public opinion about presumed repercussions on the environment and/or on the health of resident populations. These risks are related, for example, to the disposal of production residues, emissions from production processes, the management of waste collection, storage, treatment and disposal activities, water purification, the management of the emptying and maintenance of water reservoirs for electricity production, etc. All these factors can potentially lead to loss of reputation, criminal, civil and administrative proceedings, penalties, environmental reclamation and restoration costs and, in the worst cases, interruption of plant operations with consequent negative economic and financial impacts for the Group. It is also noted that any amendments to the existing legislation could entail possible sanctions linked to the delayed implementation of the aforementioned changes, incremental and unforeseen costs and investments to ensure compliance with the new requirements as well as operational and/or profitability impacts on certain industrial activities. In order to mitigate these risks, the Group, in addition to implementing technical and technological systems for the prevention and reduction of pollution at the various industrial sites in compliance with sector regulations and in accordance with the best available techniques, has set up organizational structures dedicated to the management of environmental aspects at the parent company as well as at the Business Units, individual companies and the main plants. The Group also keeps the Environmental Management Systems certified according to the ISO 14001 standard active for the parent company A2A and for the main companies. For some sites, there are also registrations under the European EMAS Regulation. With specific reference to the management of the Group’s landfills, including those under post- operational management, it should be noted that monitoring of the values of pollutants in the water table is carried out on a regular basis and summary reports are sent to the relevant bodies. Health and safety risks The occurrence of such risks may occur both in the event of accidents or serious or very serious injuries affecting employees and workers of contractors and/or third parties and in the event of occupational illnesses. These risks are related to the Group’s activities such as, for example, those related to operational services in the territory and the performance of operating and maintenance processes at the plants. The occurrence of such risks may lead to the loss of reputation, as well as criminal, civil and/ or administrative proceedings for violations of regulations, and/or sanctions, costs for compensation and/or increase in insurance premiums and, in the worst cases, interruption of plant operations, with consequent negative economic and financial impacts for the Group. In order to mitigate these risks, the Group has set up organizational structures dedicated to the management of Health and Safety aspects at the parent company as well as at the Business Units, the individual companies and the main plants. The Group also maintains Health and Safety Management Systems certified in accordance with ISO 45001 for the parent company A2A and most of its Subsidiaries. The group’s main companies operating in the municipal collection and hygiene sector, which are particularly exposed to the risk of road accidents, are certified according to the ISO 39001 standard on road safety. In addition to specific compulsory training plans for each role and company assignment, Leadership in Health and Safety – LiHS training programs have been implemented and progressively extended also to all Business Units, which envisage at all levels emotional involvement on the issue of security and the dissemination of security culture through leaders identified within the operating areas. For some Group companies, certification according to the SA8000 Standard has been obtained, which allows the organization to correctly manage and constantly monitor all activities and processes relating to workers’ conditions (human rights, development, valorization, training and professional growth of people, health and safety of workers, non- discrimination, employment of minors and young people), with the requirements also extended to suppliers and subcontractors. Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Risks and uncertainties Report on Operations 2024 A2A 401 against the environmental damage inherent in continuing operations. The Group is also active in monitoring the regulations in progress (in particular, a working group has been set up to monitor the regulatory provisions relating to the European Green Deal) and is also present on the technical panels set up by the associations in order to highlight any critical issues related to regulatory developments. There are frequent checks carried out by as well as the execution of internal audits and by external certifiers for the maintenance, among others, of compliance with the UNI EN ISO 14001 standard. The A2A Group has taken out insurance cover against damage arising from both accidental and gradual pollution in order to cover any residual environmental risk, i.e. against events caused by a sudden and unpredictable fact, and 9 Other Information Report on Operations 2024 404 A2A Report on Operations 2024 Other Information A2A acknowledges human capital as a crucial strategic asset for the company’s success and sustainability. As a result, it has adopted a range of initiatives aimed at enhancing the skills, experience, and motivation of employees, promoting innovation and the continual improvement of business processes. Innovation and Colleagues Engagement Channels In 2021, A2A launched the first edition of the Call For Ideas, an initiative aimed at engaging the Group’s colleagues to foster entrepreneurial spirit and value the skills developed, addressing the challenges of the ecological transition. The initiative engaged more than 3,000 colleagues and gathered 540 innovative proposals. In light of the success, in 2022, the second edition, the Call For Sustainability, focused on the challenges of Climate Tech, with the participation of over 3,000 colleagues, the presentation of 342 ideas, and the selection of 10 finalist projects. Thanks to an internal team and the support of external innovative realities, the most promising projects followed a path of acceleration and enhancement, utilizing the Open Innovation model to transform ideas into tangible projects. Following the two editions of the Call for Ideas, during 2024 the team worked on a new internal challenge to be launched in 2025 focused on the future-fit city theme, called the Call for Urban Future, aiming to cultivate internal talent to help make our cities more innovative and sustainable. In line with the A2A Urban Sustainability Report conducted in collaboration with Ambrosetti and the paper on the future of European competitiveness, the challenge will, therefore, concentrate on the themes of technological innovation, decarbonization, and quality of life, elements that enable cities to become “future-fit”. To stimulate creativity with targeted and transversal challenges across all business sectors of the Group, five clusters have been identified: Energy, Waste, Water, Mobility, and Quality of Life. The Program offers a structured path that supports the proponents throughout all stages of developing the contribution, from the conception of the Idea to its evolution into a tangible project proposal. Each phase is designed to provide methodological and operational support, fostering collaboration between proposers and involving contributors for the enrichment of ideas. With this initiative, the aim is to promote greater awareness regarding the main challenges linked to sustainable urbanization and the role A2A can play as a Life Company, stimulating creativity, the ideation, and development of ideas through Generative AI tools. This approach guarantees continuity to cultural innovation initiatives, encouraging the uptake of an entrepreneurial and innovative mindset, and boosting inclusivity by engaging all colleagues through new touchpoints. Furthermore, another goal of the internal challenge is the promotion of the Corporate Venture Building (CVB) program as one of the entrepreneurial idea development programs. It is a program launched in February 2024, to support the creation of new businesses from ideas inside and outside the Group. The CVB is therefore structured as a strategic instrument to enhance the skills and experience of colleagues, contributing to the achievement of the objectives of the A2A Strategic and Sustainability Plan. 9.1 Essential Intangible Assets Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Other Information Report on Operations 2024 A2A 405 Protection of Intellectual Property To support the protection and maximization of innovations generated by the Group’s activities, an intellectual property management unit was developed within A2A between 2023 and 2024. This unit works in synergy with the legal area and business structures to ensure the proper management of intellectual property generated through innovation and research activities. Starting from these activities and a structured management of intellectual property, two patent applications have been filed in 2024, and several evaluations related to other inventions potentially protectable by patent have been initiated. Collaboration Platforms and Dissemination of Innovation Culture A2A established the Innovation Communities in 2023 as a digital portal accessible to employees, aimed at promoting discussions on innovation with colleagues and experts, in accordance with the company’s strategic plan. This space facilitates the sharing of knowledge and the creation of internal networks, stimulating interdisciplinary collaboration on common projects. In mid-2024, A2A furthered its commitment to promoting innovation by launching Innovation On Air, a corporate vodcast that delves into various aspects of innovation, highlighting opportunities, perspectives, and the company’s strategic vision. This initiative seeks to encourage innovative thought, disseminate best practices, and strengthen the sense of belonging to company values. Training and Skills Development A2A invests in the professional growth and skills development of its employees. The Research and Development (R&D) team plays a key role in this field, integrating business strategies with highly qualified training pathways. Throughout 2024, various teaching programs within PhD courses continued in collaboration with universities, focusing on strategic topics such as the electricity market, energy transition, circular economy, research and digital innovation, as well as the principles and drivers of sustainability. The team engaged in educational initiatives values their skills and renews the Group’s contribution to the training of future professionals, thereby returning value to the region. These paths are complemented by technology transfer initiatives that aim to accelerate the adoption of new technologies and encourage integration between academic research and the industrial sector. Beginning in 2022, A2A has actively participated in research hubs supported by the PNRR, such as the National Centre for Sustainable Mobility (MOST) and the Multilayered Urban Sustainability Action Innovation Ecosystem (MUSA), to promote collaboration among universities, businesses, and startups and foster the development of new skills and the transfer of knowledge among different innovation stakeholders. A Structured and Shared Model With the initiatives outlined above, A2A demonstrates a concrete commitment to the active involvement of its employees, offering innovative tools to enhance their skills, creativity, and contribution to corporate goals. The suite of initiatives, including the Corporate Venture Builder Program, Call For Ideas, Innovation Communities, training programs, and intellectual property management, outlines a structured and interconnected framework. This approach fosters employees’ creativity and strengthens their motivation to actively contribute to the company’s future. With this vision, A2A not only develops its intellectual capital but also establishes an environment where innovation is driven by individuals, reinforcing a business ecosystem grounded in sharing, continual growth, and ongoing improvement. 406 A2A Report on Operations 2024 Other Information Audit of the financial statements and disclosures pursuant to article 149-duodecies of the Consob Issuers’ Regulations The annual financial statements of A2A S.p.A. have been subject to a full audit by EY S.p.A. on the basis of their appointment for financial years 2016 to 2024 by the general shareholders’ meeting. The following table provides a summary of the fees paid for audit work performed within the Group during 2024, analyzed between the leading auditor EY S.p.A. and other auditors. Description values in thousands of euro| Leading Auditor| Other auditors from the lead auditor's network ---|---|--- A2A S.p.A.| | Audit of annual financial statements | 198| \- Audit of consolidated financial statements | 46| \- Periodic tests of accounting | 24| \- Limited review of sustainability reporting| 150| \- Limited review of half-year report | 89| \- Audit of the separate annual accounts for ARERA | 21| \- Total | 528| - Subsidiaries | | Audit of annual financial statements | 1,616 | 81 Periodic tests of accounting | 286| \- Limited review of half-year report | 253| 6 Audit of the separate annual accounts for ARERA | 111| \- Other consolidated groups (ACINQUE, AEB) | 529| - Total | 2,795 | 87 Associates and joint ventures | | Audit of the information sent to shareholders for the consolidation| 33| \- Total | 33| - Total A2A group | 3,356 | 87 In addition to the above audit work, companies belonging to the EY network also performed other engagements in 2024 for fees amounting in total to 229 thousand euro, which mainly related to activities as the Company’s legal auditor as specified by current legislation. 9.2 Other Information Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Statement 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Other Information Report on Operations 2024 A2A 407 Treasury shares Treasury shares’ present no value as of December 31, 2024. Secondary offices The company does not have secondary offices. Related parties and tax consolidation Details of related party transactions are provided in note 39 to the consolidated financial statements and note 34 to the separate financial statements. *** The information on corporate governance and ownership structures required by article 123-bis of Legislative Decree no. 58/1998, as amended, is contained in a separate document ‘Report on Corporate Governance and Ownership Structures for the year ended December 31, 2024’ which forms an integral part of the financial statements documentation. In compliance with the requirements of the “Regulation on provisions relating to related party transactions” adopted by Consob with Resolution no. 17221 of March 12, 2010 and subsequently amended by Resolution no. 17389 of June 23, 2010, by way of a resolution of November 11, 2010 the Management Board approved, following the favorable opinion of the Internal Control Committee, the prescribed procedure for identifying the rules and controls designed to ensure the transparency and substantial and procedural correctness of the related party transactions carried out by A2A S.p.A. directly or through its subsidiaries. The aforementioned Procedure was applied effective January 1, 2011 and subsequently amended on August 1, 2012, November 7 and December 18, 2013 and June 22, 2015. Following a periodic review, the Procedure was subsequently amended/supplemented and approved by the Board of Directors on June 20, 2016, subject to the favorable opinion of the Audit and Risks Committee and then updated on June 22, 2017, in view of Consob Resolution no. 19925 of March 22, 2017 and on December 16, 2019, in view of the amendments to art. 192-quinquies of Legislative Decree no. 58 of February 24, 1998 (“TUF”) (art. 4 of Legislative Decree no. 49 of May 10, 2019). Following the Board of Directors’ decision on June 25, 2021, and with the approval of the Related Parties Committee established by the resolution on May 13, 2021, the Procedure was revised—effective from July 1, 2021—to align with the Related Parties Regulation, as altered by Consob Resolution no. 21624 on December 10, 2020, in accordance with the so-called ‘Shareholders’ Rights II’ Directive. Lastly, the Procedure was amended and supplemented on July 30, 2024 by the Board of Directors, effective from August 1, 2024, following a periodic review and with the approval of the Related Parties Committee, established by board resolution on May 11, 2023. The aforementioned procedure can be found on the website www.gruppoa2a.it. The company has availed itself of the possibility permitted by article 70, paragraph 8 and article 71, paragraph 1-bis of the Issuers’ Regulations, and hence of derogating from the requirement to make an information document available to public in the event of significant mergers, spin-offs, share capital increases by means of the contribution of assets in kind, acquisitions and disposals. 2024 Consolidated Financial Statements Consolidated financial statements 2024 2 A2A Consolidated financial statements 2024 Contents 1.1 Consolidated balance sheet 6 1.2 Consolidated income statement 8 1.3 Consolidated statement of comprehensive income 9 1.4 Consolidated cash-flow statement 10 1.5 Statement of changes in Group equity 11 1.6 Consolidated balance sheet pursuant to Consob Resolution no. 17221 of March 12, 2010 12 1.7 Consolidated income statement pursuant to Consob Resolution no. 17221 of March 12, 2010 14 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 2.1 General information 16 2.2 Consolidated annual report 17 2.3 Financial statements 18 2.4 Basis of preparation 19 2.5 Changes in international accounting standards 20 2.6 Scope of consolidation 23 2.7 Consolidation policies and procedures 26 2.8 Accounting standards and policies 29 2.9 Business Units 45 2.10 Results sector by sector 46 2.11 Notes to the balance sheet 50 2.12 Net debt 82 2.13 Notes to the income statement 84 2.14 Earnings per share 94 2.15 Note on related party transactions 95 2.16 Significant non-recurring events and transactions, pursuant to Consob Communication No. DEM/6064293 of July 28, 2006 100 2.17 Guarantees and commitments with third parties 101 2.18 Other information 102 This is a translation of the Italian original “Relazione finanziaria annuale consolidata 2024” and has been prepared solely for the convenience of international readers. In the event of any ambiguity the Italian text will prevail. The Italian original is available at the website Consolidated financial statements 2024 A2A 3 151 4 Independent Auditors’ Report 3 Attachments to the notes to the Consolidated financial statements 3.1 1\. List of companies included in the consolidated annual report 144 3.2 2\. List of shareholdings in companies carried at equity 148 3.3 3\. List of holdings in other companies 149 3.4 Certification of the consolidated financial statements pursuant to article 154-bis, paragraph 5 of Legislative Decree no. 58/98 150 1 Accounting statements of the consolidated financial statements Consolidated financial statements 2024 6 A2A Consolidated financial statements 2024 Accounting statements of the consolidated financial statements 1.1 Consolidated balance sheet (1) Assets millions of euro| Note | 12 31 2024| 12 31 2023 ---|---|---|--- Non-current assets| | | Tangible assets | 1| 7, 5 1 7| 6,643 Intangible assets | 2| 4,299| 3,630 Shareholdings carried according to equity method| 3| 25| 30 Other non-current financial assets | 3| 88| 67 Deferred tax assets | 4| 549| 464 Other non-current assets | 5| 130| 138 Total non-current assets | | 12,608| 10,972 Current assets| | | Inventories | 6| 316| 319 Trade receivables | 7| 3,643| 3,540 Other current assets | 8| 1,296| 2,264 Current financial assets | 9| 32| 33 Current tax assets | 10| 45| 41 Cash and cash equivalents | 11| 1,549| 1,629 Total current assets | | 6,881| 7,826 Non-current assets held for sale | 12| 405| - Total assets | | 19,894| 18,798 (1) As required by Consob Resolution no. 17221 of March 12, 2010, the effects of relations with related parties in the separate financial statements are highlighted in the accounting statements and commented on in Note 39. Significant non-recurring events and transactions in the separate financial statements are provided in Note 40 pursuant to Consob Communication DEM/6064293 of July 28, 2006. Accounting statements of the consolidated financial statements Consolidated financial statements 2024 A2A 7 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Equity and liabilities millions of euro| Note | 12 31 2024 | 12 31 2023 ---|---|---|--- Equity| | | Share capital | 13| 1,629| 1,629 (Treasury shares) | | -| - Reserves | 14| 2,952| 1,952 Result of the year | 15| 864| 659 Equity pertaining to the Group | | 5,445| 4,240 Minority interests | | 558| 562 Total Equity | | 6,003| 4,802 Liabilities| | | Non-current liabilities| | | Non-current financial liabilities | 17| 6,317| 5,576 Employee benefits | 18| 214| 237 Provisions for risks, charges and liabilities for landfills | 19| 854| 828 Other non-current liabilities | 20| 347| 335 Total non-current liabilities | | 7,7 3 2| 6,976 Current liabilities| | | Trade payables | 21| 3,682| 4,105 Other current liabilities | 21| 1,391| 2,070 Current financial liabilities | 22| 955| 775 Tax liabilities | 23| 120| 70 Total current liabilities | | 6,148| 7,020 Total liabilities | | 13,880| 13,996 Liabilities directly associated with non-current assets held for sale| 24| 11| - Total equity and liabilities | | 19,894| 18,798 8 A2A Consolidated financial statements 2024 Accounting statements of the consolidated financial statements 1.2 Consolidated income statement (1) millions of euro| Note| 01 01 202412 31 2024| 01 01 202312 31 2023 ---|---|---|--- Revenues| | | Revenues from the sale of goods and services | | 12,570| 14,492 Other operating income | | 287| 266 Total revenues | 26| 12,857| 14,758 Operating expenses| | | Expenses for raw materials and services | | 9,218| 11,591 Other operating expenses | | 419| 381 Total operating expenses | 27| 9,637| 11,972 Labour costs | 28| 892| 815 Gross operating income - EBITDA | 29| 2,328| 1,971 Depreciation, amortization, provisions and write-downs | 30| 1,011| 954 Net operating income - EBIT | 31| 1,317| 1,017 Result from non-recurring transactions | 32| 5| 2 Financial balance| | | Financial income | | 105| 83 Financial expenses | | 218| 222 Affiliates | | 2| - Result from disposal of other shareholdings | | -| (1) Total financial balance | 33| (111)| (140) Result before taxes | | 1,211| 879 Income taxes | 34| 319| 199 Result after taxes from operating activities | | 892| 680 Net result from discontinued operations | 35| -| 3 Net result | | 892| 683 Minorities | 36| (28)| (24) Group result of the year| 37| 864| 659 Result per share (in euro):| | ---|---|--- \- basic | 0.2759| 0.2101 \- basic from continuing operations | 0.2759| 0.2092 \- basic from assets held for sale | 0.0000| 0.0009 \- diluted | 0.2759| 0.2101 \- diluted from continuing operations | 0.2759| 0.2092 \- diluted from assets held for sale| 0.0000| 0.0009 (1) As required by Consob Resolution no. 17221 of March 12, 2010, the effects of relations with related parties in the separate financial statements are highlighted in the accounting statements and commented on in Note 39. Significant non-recurring events and transactions in the separate financial statements are provided in Note 40 pursuant to Consob Communication DEM/6064293 of July 28, 2006. Accounting statements of the consolidated financial statements Consolidated financial statements 2024 A2A 9 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 1.3 Consolidated statement of comprehensive income millions of euro| 12 31 2024 | 12 31 2023 ---|---|--- Net result of the year (A) | 892 | 683 Actuarial gains/(losses) on Employee’s Benefits booked in the Net equity | 15| 3 Tax effect of other actuarial gains/(losses) | (6)| (1) Total actuarial gains/(losses) net of the tax effect (B) | 9| 2 Effective part of gains/(losses) on cash flow hedge | (13)| (43) Tax effect of other gains/(losses) | 4| 11 Total gains/(losses) on cash flow hedge net of tax (C) (*) | (9)| (32) Gains/(losses) on financial assets measured at Fair Value | 9| - Tax effect of other gains/(losses) | (3)| - Total gains/(losses) of financial assets measured at Fair Value net of tax (D) | 6| - Total comprehensive result (A) + (B) + (C) + (D) | 898| 653 Total comprehensive result attributable to:| | Shareholders of the parent company | 870 | 629 Minority interests | (28)| (24) (*) The effects of these items will be reclassified to the income statement in subsequent years. 10 A2A Consolidated financial statements 2024 Accounting statements of the consolidated financial statements 1.4 Consolidated cash-flow statement millions of euro| 12 31 2024 | 12 31 2023 ---|---|--- Cash and cash equivalents at the beginning of the year | 1,629| 2,584 Operating activities| | Net result | 892| 683 Net income taxes | 319| 199 Net financial interests | 117| 139 Capital gains/expenses | (3)| (3) Tangible assets depreciation | 580| 523 Intangible assets amortization | 304| 278 Fixed assets write-downs/disposals | 23| 17 Net provisions | 113| 151 Result from affiliates | (2)| 1 Net financial interests paid | (108)| (101) Net taxes paid | (304)| (317) Dividends paid | (320)| (302) Change in trade receivables | (169) | 1,057 Change in trade payable | (435) | (1,420) Change in inventories | 10| 217 Other changes | 122| (82) Cash flow from operating activities | 1,139| 1,040 Investment activities| | Investments in tangible assets | (1,051)| (947) Investments in intangible assets and goodwill | (461)| (429) Investments in shareholdings and securities (*) | (1,312)| (45) Cash and cash equivalents from first consolidations asset | 1| 8 Disposal of fixed assets and shareholdings | 4| 48 Issue of loans to other than financial institutions| -| - Cash receipt/repayment from loans to other than financial institutions| 6| 6 Cash flow from investment activities | (2,813)| (1,359) Free cash flow | (1,674)| (319) Financing activities| | Changes in financial liabilities| | Borrowings/bonds issued | 1,942| 943 Repayment of borrowings/bond | (1,031)| (1,505) Lease payments | (50)| (36) Other changes | -| (38) Total changes in financial liabilities (*) | 861| (636) Capital instruments - perpetual hybrid bond| | Issue of perpetual hybrid bond | 742| - Coupon paid on perpetual hybrid bond | (9)| - Capital instruments - perpetual hybrid bond | 733| - Cash flow from financing activities | 1,594| (636) Change in cash and cash equivalents | (80)| (955) Cash and cash equivalents at the end of the year | 1,549| 1,629 (*) Cleared of balances in return of shareholders’ equity and other balance sheet items. Accounting statements of the consolidated financial statements Consolidated financial statements 2024 A2A 11 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 1.5 Statement of changes in Group equity Changesfrom January 1, 2023to December 31, 2023 millions of euro| Share capital| Treasury shares| CashFlowHedge| Reserve for equity instruments \- perpetual hybrid bonds| OtherReserves and retained earnings| Resultof the year| Total Equity pertaining to the Group| Minority interests| TotalNet shareholders equity ---|---|---|---|---|---|---|---|---|--- Net equity at December 31, 2022| 1,629| -| 30| -| 1,839| 401| 3,899| 568| 4,467 Result allocation| | | | | 401| (401)| | | Distribution of dividends| | | | | (283)| | (283)| (19)| (302) IAS 19 reserves (*)| | | | | 2| | 2| | 2 Cash flow hedge reserves (*)| | | (32)| | | | (32)| | (32) Other changes| | | | | (5)| | (5)| (11)| (16) Group and minorities result of the year| | | | | | 659| 659| 24| 683 Net equity at December 31, 2023| 1,629| -| (2)| | 1,954| 659| 4,240| 562| 4,802 (*) These form part of the statement of comprehensive income. Changesfrom January 1, 2024to December 31, 2024 millions of euro| Share capital| Treasury shares| CashFlowHedge| Reserve for equity instruments \- perpetual hybrid bonds| OtherReserves and retained earnings| Resultof the year| Total Equity pertaining to the Group| Minority interests| TotalNet shareholders equity ---|---|---|---|---|---|---|---|---|--- Net equity at December 31, 2023| 1,629| -| (2)| | 1,954| 659| 4,240| 562| 4,802 Result allocation| | | | | 659| (659)| | | Distribution of dividends| | | | | (300)| | (300)| (20)| (320) IAS 19 reserves (*)| | | | | 9| | 9| | 9 Cash flow hedge reserves (*)| | | (9)| | | | (9)| | (9) Financial assets measured at Fair Value (*)| | | | | 6| | 6| | 6 Change in scope| | | | | (99)| | (99)| (13)| (112) Capital instruments - perpetual hybrid bond| | | | 742| | | 742| | 742 Capital instruments -coupon paid on perpetual hybrid bond| | | | | (9)| | (9)| | (9) Other changes| | | | | 1| | 1| 1| 2 Group and minorities result of the year| | | | | | 864| 864| 28| 892 Net equity at December 31, 2024| 1,629| -| (11)| 742| 2,221| 864| 5,445| 558| 6,003 (*) These form part of the statement of comprehensive income. 12 A2A Consolidated financial statements 2024 Accounting statements of the consolidated financial statements 1.6 Consolidated balance sheet pursuant to Consob Resolution no. 17221 of March 12, 2010 Assets millions of euro 12 31 2024 of which Related Parties (note 39) 12 31 2023 of which Related Parties (note 39) Non-current assets Tangible assets 7,5 1 7 6,643 Intangible assets 4,299 3,630 Shareholdings carried according to equity method 25 25 30 30 Other non-current financial assets 88 4 67 6 Deferred tax assets 549 464 Other non-current assets 130 138 24 Total non-current assets 12,608 10,972 Current assets Inventories 316 319 Trade receivables 3,643 111 3,540 158 Other current assets 1,296 1 2,264 1 Current financial assets 32 1 33 7 Current tax assets 45 41 Cash and cash equivalents 1,549 1,629 Total current assets 6,881 7,826 Non-current assets held for sale 405 - Total assets 19,894 18,798 Accounting statements of the consolidated financial statements Consolidated financial statements 2024 A2A 13 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Equity and liabilities millions of euro 12 31 2024 of which Related Parties (note 39) 12 31 2023 of which Related Parties (note 39) Equity Share capital 1,629 1,629 (Treasury shares) - - Reserves 2,952 1,952 Result of the year 864 659 Equity pertaining to the Group 5,445 4,240 Minority interests 558 562 Total Equity 6,003 4,802 Liabilities Non-current liabilities Non-current financial liabilities 6,317 5,576 Employee benefits 214 237 Provisions for risks, charges and liabilities for landfills 854 8 828 Other non-current liabilities 347 335 Total non-current liabilities 7,73 2 6,976 Current liabilities Trade payables 3,682 30 4,105 81 Other current liabilities 1,391 2 2,070 6 Current financial liabilities 955 775 Tax liabilities 120 70 Total current liabilities 6,148 7,020 Total liabilities 13,880 13,996 Liabilities directly associated with non-current assets held for sale 11 - Total equity and liabilities 19,894 18,798 14 A2A Consolidated financial statements 2024 Accounting statements of the consolidated financial statements 1.7 Consolidated income statement pursuant to Consob Resolution no. 17221 of March 12, 2010 millions of euro 01 01 2024 12 31 2024 of which Related Parties (note 39) 01 01 2023 12 31 2023 of which Related Parties (note 39) Revenues Revenues from the sale of goods and services 12,570 552 14,492 563 Other operating income 287 266 Total revenues 12,857 14,758 Operating expenses Expenses for raw materials and services 9,218 31 11,591 23 Other operating expenses 419 45 381 85 Total operating expenses 9,637 11,972 Labour costs 892 2 815 1 Gross operating income - EBITDA 2,328 1,971 Depreciation, amortization, provisions and write- downs 1,011 954 Net operating income - EBIT 1,317 1,017 Result from non-recurring transactions 5 2 2 Financial balance Financial income 105 83 5 Financial expenses 218 222 Affiliates 2 2 - Result from disposal of other shareholdings - (1) Total financial balance (111) (140) Result before taxes 1,211 879 Income taxes 319 199 Result after taxes from operating activities 892 680 Net result from discontinued operations - 3 Net result 892 683 Minorities (28) (24) Group result of the year 864 659 2 Notes to the Consolidated financial statements Consolidated financial statements 2024 16 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 2.1 General information A2A S.p.A. is a company with legal personality organized under the laws of the Italian Republic which operates, also through its subsidiaries (“Group”), both in Italy and abroad. The A2A Group mainly operates in the following sectors: • the production, sale and distribution of electricity even from renewable resources; • the sale and distribution of gas; • the production, distribution and sale of heat through district heating networks; • waste management (from collection and sweeping to disposal) and the construction and management of integrated waste disposal plants and systems, also making these available for other operators; • integrated water cycle management; • technical consultancy relating to energy efficiency certificates. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 17 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 2.2 Consolidated annual report The consolidated annual report (hereafter referred to as the “Annual report”) of the A2A Group at December 31, 2024, is presented in millions of euro; the euro is also the functional currency of the economies in which the Group operates. The Annual report of the A2A Group at December 31, 2024 has been prepared: • in compliance with Legislative Decree 58/1998 (art. 154-ter) as amended and with the Issuers’ Regulations published by Consob; • in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standard Board (IASB) and approved by the European Union. IFRS means all the revised International Accounting Standards (IAS) and all the interpretations of the International Financial Reporting Interpretations Committee (IFRIC), formerly known as the Standing Interpretations Committee (SIC). In preparing the Annual report, the same principles used in the preparation of the consolidated annual report at December 31, 2023 were applied, other than the principles and interpretations described in detail in the paragraph below “Changes in accounting principles’ adopted for the first time on January 1, 2024. In this file, use has been made of some Alternative Performance Measures (APM) that are different from the financial indicators expressly provided for by the IAS/IFRS international accounting standards adopted by the Group; for details of these indicators, please see the specific paragraph Alternative Performance Measures (APM) in the file of the Report on Operations. This Annual report at December 31, 2024 was approved on March 20, 2025 by the Board of Directors, which authorized publication, and has been audited by EY S.p.A. in accordance with their appointment by the Shareholders’ Meeting of June 11, 2015 for the nine years from 2016 to 2024. 18 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 2.3 Financial statements The Group has adopted a format for the balance sheet which presents current and non-current assets and current and non-current liabilities as separate classifications, as required by paragraphs 60 and following of IAS 1. The income statement is presented by nature, a format which is considered more representative than a presentation by function. The selected format is in agreement with the presentation used by the Group’s major competitors and in line with international practice. The specific line items “Result from non-recurring transactions” and “Result from disposal of other shareholdings” are in the format of the income statement in order to provide clear and immediate identification of the results arising from non-recurring transactions forming part of continuing operations, separating these from the results from discontinued operations. In particular, it should be noted that the item “Result from non-recurring transactions” is intended to include the results from the sale of investments in subsidiaries and associates and other non-operating expenses/ income. This item is presented between net operating income and the financial balance. In this way net operating income is not affected by non-recurring operations, making it easier to measure the effective performance of the Group’s ordinary operating activities. The Cash Flow Statement is prepared using the indirect method, as permitted by ‘IAS 7’, and incorporates the informational amendments to ‘IAS 7’ effective from January 1, 2024, as detailed in the relevant section ‘Changes in International Accounting Standards’, and the ESMA (European Securities and Markets Authority) recommendations updated as of October 29, 2024. The Group classifies cash flows for dividends paid and interest paid/collected as cash flows from operating activities. The statement of changes in equity has been prepared in accordance with IAS 1. The formats adopted for the financial statements are the same as those used to prepare the Consolidated annual financial report at December 31, 2023. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 19 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 2.4 Basis of preparation The consolidated annual financial report at December 31, 2024 has been prepared on a historical cost basis, with the exception of those items which under IFRS must or can be measured at fair value. The consolidation principles, the accounting principles, the accounting policies and the methods of measurement used in the preparation of the Annual Report are consistent with those used to prepare the Consolidated Annual Report at December 31, 2023, except as specified below in relation to the newly issued principles. The Group has not adopted in advance any new principles, interpretations, or amendments that have been issued but are not yet in force. 20 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 2.5 Changes in international accounting standards Pursuant to IAS 8, the subsequent paragraph “Accounting standards, amendments and interpretations applicable by the company as of the current year” indicates and briefly illustrates the amendments in force as of January 1, 2024. The following paragraph, “Accounting standards, amendments and interpretations approved by the European Union” instead detail the accounting standards and interpretations already issued, not yet approved by the European Union and therefore not applicable for the preparation of the financial statements at December 31, 2024, any impacts of which will then be transposed as of the financial statements of the following years. Accounting standards, amendments and interpretations applicable as of the current year As from January 1, 2024, applicable to the Group are the following additions to specific paragraphs of the international accounting standards already adopted by the Group companies in previous years: • On January 23, July 15, 2020, and October 31, 2022, the International Accounting Standards Board (IASB) issued three additions to IAS 1 “Presentation of Financial Statements”: The classification of liabilities as either current or non-current, and non-current liabilities with covenants, aims to better define the concept of liabilities and their classification between short-term and medium- to long- term. The additions were approved on December 20, 2023. Specifically, emphasis is placed on the temporal concept of transferring money or other resources to the counterparty to settle the liability. The entity must have the right to defer the settlement of the liability for at least 12 months after the balance sheet date. The change includes: • the stipulation that the right to defer settlement must exist as of the date of the Financial Statements; • a clarification regarding the fact that the classification is not influenced by management’s intentions or expectations about the possibility of using the deferral right; • a clarification on how the financing conditions influence the classification; • a clarification on the requirements for classifying liabilities that an entity intends to or might settle through the issuance of its own equity instruments. Furthermore, the latest amendment specifies that only covenants, that an entity must meet by the reporting date, will affect the classification of a liability as current or non-current. The amendments had no impact on the financial report. • on September 22, 2022, the IASB issued a supplement to IFRS 16 “Liabilities in a sale and leaseback” clarifying how to account for a sale and leaseback transaction that provides for variable payments based on the performance or use of the asset subject to the transaction. The amendment aims to enhance the criteria for sale and leaseback transactions under IFRS 16, but it does not modify the accounting for leases unrelated to sale and leaseback transactions. The amendments had no impact on the financial report. • On May 25, 2023, the IASB issued a supplement to IAS 7 “Statement of Cash Flows” and IFRS 7 “Financial Instruments: Disclosures”. The amendments clarify the characteristics of supplier financing arrangements (e.g. reverse factoring instruments) and define the information to be provided on the impact of these arrangements on the company’s liabilities and cash flows (e.g. terms and conditions, book value and balance sheet item in which financial debts are recorded, with an indication of those for which the financial supplier has already settled the corresponding portion of trade debt, maturity bands of financial debts and comparable trade debts, but not included in arrangements). This financial report reflects the alterations to the disclosure mandated by the amendments. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 21 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Accounting standards, amendments and interpretations approved this year and applicable as of subsequent years • On August 15, 2023, the IASB issued a supplement to IAS 21 “The effects of changes in foreign exchange rates” to regulate the procedures to be followed in the event of currency non- convertibility. The amendments introduce requirements to determine when a currency is convertible into another currency and when it is not and require an entity to estimate the spot exchange rate when it determines that a currency is not convertible into another currency. These additions will be applicable to financial statements closed on or after January 1, 2025. No material impacts are expected for the Group with reference to this amendment. Accounting standards, amendments and interpretations not yet approved by the European Union • On April 9, 2024, the IASB published IFRS 18, which establishes requirements for the presentation of information in the financial statements in order to improve the uniformity of the information provided and promote comparability between financial statements. The standard focuses in particular on the presentation of the income statement for which a predefined structure is provided divided into categories (operating, investing, financial, tax and discontinued operations) and as many subtotals. However, it also sets rules for the aggregation and disaggregation of information on the basis of their common characteristics in order to identify the information to be provided directly in the financial statements rather than in the notes. The standard will be applicable to financial statements closed on or after January 1, 2027. The Group is currently assessing the impacts of these amendments. • On May 9, 2024, the IASB published the new IFRS 19 standard applicable for financial statements from January 1, 2027. The standard applies to non-publicly accountable subsidiaries belonging to a group that prepares consolidated financial statements according to IAS/IFRS and allows them to use IFRS accounting standards by adopting simplified financial reporting based on the provisions of the new standard instead of those of the other standards. The amendments will have no impact on the financial report. • In 2024, the International Accounting Standards Board (IASB) issued two amendments to IFRS 9 and IFRS 7, one concerning “Changes to the Classification and Measurement of Financial Instruments” and the other related to “Renewable Energy Contracts”. The effective date for both amendments is set for January 1, 2026. • “Changes to the Classification and Valuation of Financial Instruments”: Ž Amendments to IFRS 9 clarify the circumstances under which a financial asset or liability is recognized and derecognized. According to the amendments, a company generally writes off its financial liability on the settlement date. Normally, this is the date when the payment is completed. The amendments also introduce an exception, permitting the company to write off its financial liability prior to the settlement date, which is the date when the payment is initiated and cannot be cancelled. The exception is available when the company uses an electronic payment system that satisfies all of the following criteria: • no practical way to retract, halt, or cancel the payment instruction; • no practical means to access the money needed for the settlement as a result of the payment instruction; and • the settlement risk connected with the electronic payment system is insignificant. Ž The amendments also introduce an additional SPPI test (solely for payments of principal and interest) for financial assets with contractual terms that reference a potential event, including those related to ESG factors, that are not directly tied to changes in basic lending risks or costs. For instance, this applies when cash flows vary based on whether the borrower meets an ESG target specified in the loan contract. Under the former formulation, it was indeed unclear whether the contractual cash flows from certain financial assets with environmental, social, and governance (ESG) characteristics and similar contingent attributes qualified as “solely payments of principal and interest”, which is necessary for recognition at amortized cost. This could have involved measuring such activities at fair value through the income statement. Under the amendments, certain financial assets, 22 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements including those possessing ESG-related attributes, may satisfy the SPPI criterion, provided that their cash flows don’t significantly differ from those of an identical financial asset without such characteristics. Ž The amendment to IFRS 7 mandates additional disclosure for financial assets and liabilities with contractual terms referencing a potential event, including those associated with ESG factors, as well as for equity instruments classified at fair value through other comprehensive income. • “Contracts relating to renewable energy sources”: Ž clarifies the requirements for applying the “own-use exemption”; Ž establishes the rules for the use of these contracts as hedging instruments in a hedge accounting relationship; Ž introduces a new set of information designed to enable investors to grasp the influence of these contracts on the company’s performance and its cash flows. The Group is currently assessing the impacts of these amendments. • On July 18, 2024, the International Accounting Standards Board (IASB) issued the eleventh volume of annual improvements aimed at enhancing the consistency and comprehensibility of the standards. The effective date for the amendments is set for January 1, 2026. The main changes concerned IFRS 9 Financial Instruments: • the amendment specifies that when a lease is terminated, it falls under the jurisdiction of IFRS 9, replacing the typical application of IFRS 16. As a result, any disparity between the present value of the liability and the payment made must be recognized in the income statement; • the amendment also addresses a conflict between IFRS 9 and IFRS 15 regarding the initial measurement of trade receivables by specifying that trade receivables without a significant financial component must initially be recognized according to the provisions of IFRS 15. The Group is currently assessing the impacts of these amendments. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 23 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 2.6 Scope of consolidation The Consolidated Annual Report at December 31, 2024 includes the figures of the parent A2A S.p.A. and those of the subsidiaries over which A2A S.p.A. exercises either direct or indirect control. In addition, companies in which the parent exercises joint control with other entities (joint ventures) and those over which it has a significant influence are consolidated using the equity method. The following changes to the scope of consolidation of the A2A Group are reported: • acquisition by A2A S.p.A. of 90% of the Duereti S.r.l., a company operating in electricity distribution, with consequent line-by-line consolidation; • acquisition by Acinque S.p.A. of 70% of Agesp Energia S.r.l., a company operating in the sale of electricity and gas, with consequent line-by-line consolidation; • acquisition by A2A Rinnovabili S.p.A. of 70% of the company Parco Friulano 2 S.r.l. with consequent line-by-line consolidation; • acquisition by Agripower S.p.A. of 100% of Biomax Società Agricola a r.l., a company operating in the production of electricity from biogas, with consequent line-by-line consolidation; • acquisition by A2A Ambiente S.p.A. of the remaining 30% of the company A.S.R.A.B. S.p.A. operating in waste disposal; • acquisition by A2A S.p.A. of the remaining 4.4% of the company LD Reti S.r.l.; • incorporation of the company A2A Storage S.r.l. by A2A Rinnovabili S.p.A., which owns 100% of it, consolidated on a line-by-line basis; • incorporation of the company A2A Trezzo Ambiente S.r.l. held 86% by A2A Ambiente S.p.A. and 4% by A2A Calore & Servizi S.r.l. with consequent a line-by-line consolidation of the company; • incorporation of TEXELERA S.c. a r.l., held 51% by A2A S.p.A., with consequent line-by-line consolidation of the company; • sale of the company Tula Bioenergia Società Agricola a r.l. previously consolidated on a line-by-line basis; • de-registration of Proaris S.r.l. in liquidation, previously consolidated on a line-by-line basis following the completion of the liquidation process. For further details on the activities of the Purchase Price Allocation required by IFRS 3, reference is made to the paragraph ‘Other information’ of this report. 24 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Breakdown of the balance sheet with evidence of the effect of the first consolidation of the 2024 acquisitions millions of euro| Note | Consolidated at 12 31 2023| A2A Rinnovabili Group| Biomax Società Agricola a r.l.| Agesp Energia S.r.l.| Duereti S.r.l.| Total effect first consolidation acquisitions2024| Changes| Consolidated at 12 31 2024 ---|---|---|---|---|---|---|---|---|--- Assets| | | | | | | | | Non-current assets| | | | | | | | | Tangible assets | 1| 6,643| 6| 2| 13| 393| 414| 460| 7,5 1 7 Intangible assets | 2| 3,630| 23| 6| 29| 890| 948| (279)| 4,299 Shareholdings carried according to equity method| 3| 30| -| -| -| -| -| (5)| 25 Other non-current financial assets| 3| 67| -| -| 1| -| 1| 20| 88 Deferred tax assets | 4| 464| -| -| 2| 13| 15| 70| 549 Other non-current assets | 5| 138| -| -| 1| -| 1| (9)| 130 Total non-current assets| | 10,972| 29| 8| 46| 1,296| 1,379| 257| 12,608 Current assets| | | | | | | | | Inventories | 6| 319| -| 1| -| 6| 7| (10)| 316 Trade receivables | 7| 3,540| -| -| 16| -| 16| 87| 3,643 Other current assets | 8| 2,264| -| 1| 4| -| 5| (973)| 1,296 Current financial assets | 9| 33| -| -| -| -| -| (1)| 32 Current tax assets | 10| 41| -| -| -| -| -| 4| 45 Cash and cash equivalents | 11| 1,629| -| -| 1| -| 1| (81)| 1,549 Total current assets| | 7,826| -| 2| 21| 6| 29| (974)| 6,881 Non-current assets held for sale| 12| -| -| -| -| -| -| 405| 405 Total assets | | 18,798| 29| 10| 67| 1,302| 1,408| (312)| 19,894 Liabilities| | | | | | | | | Non-current liabilities| | | | | | | | | Non-current financial liabilities| 17| 5,576| -| 2| 10| 1| 13| 728| 6,317 Deferred tax liabilities| | -| -| -| 5| -| 5| (5)| - Employee benefits | 18| 237| -| -| 1| 1| 2| (25)| 214 Provisions for risks, charges and liabilities for landfills| 19| 828| -| -| 3| 5| 8| 18| 854 Other non-current liabilities | 20| 335| -| -| 2| 126| 128| (116)| 347 Total non-current liabilities| | 6,976| -| 2| 21| 133| 156| 600| 7,7 3 2 Current liabilities| | | | | | | | | Trade payables | 21| 4,105| -| 1| 11| -| 12| (435)| 3,682 Other current liabilities | 21| 2,070| -| -| 9| 28| 37| (716)| 1,391 Current financial liabilities | 22| 775| -| -| 2| 1| 3| 177| 955 Tax liabilities | 23| 70| -| -| -| -| -| 50| 120 Total current liabilities| | 7,020| -| 1| 22| 29| 52| (924)| 6,148 Total liabilities | | 13,996| -| 3| 43| 162| 208| (324)| 13,880 Liabilities directly associated with non-current assets held for sale| 24| -| -| -| -| -| -| 11| 11 Total liabilities | | 13,996| -| 3| 43| 162| 208| (313)| 13,891 Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 25 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Breakdown of the economic effect of the consolidation of new acquisitions 2024 millions of euro| Note| A2A Rinnovabili Group| Biomax Società Agricola a r.l.| Agesp Energia S.r.l.| Duereti S.r.l.| Total effect consolidationnew acquisitions2024| Old perimeter at 12 31 2024| Consolidated at 12 31 2024| Consolidated at 12 31 2023 ---|---|---|---|---|---|---|---|---|--- Revenues| | | | | | | | | Revenues from the sale of goods and services| | -| 1 | 49 | -| 50| 12,520| 12,570| 14,492 Other operating income| | -| -| -| -| -| 287| 287| 266 Total revenues | 26| -| 1| 49| -| 50| 12,807| 12,857| 14,758 Operating expenses| | | | | | | | | Expenses for raw materials and services| | -| 1 | 43 | -| 44| 9,174| 9,218| 11,591 Other operating expenses| | -| -| \- | 1 | 1| 418| 419| 381 Total operating expenses | 27| \- | 1 | 43 | 1 | 45| 9,592| 9,637| 11,972 Labour costs | 28| -| -| 2 | -| 2| 890| 892| 815 Gross operating income - EBITDA| 29| \- | \- | 4 | (1)| 3| 2,325| 2,328| 1,971 Depreciation, amortization, provisions and write-downs| 30| -| -| 2 | (1)| 1| 1,010| 1,011| 954 Net operating income - EBIT| 31| \- | \- | 2 | \- | 2| 1,315| 1,317| 1,017 Result from non-recurring transactions| 32| -| -| -| -| -| 5| 5| 2 Financial balance| | | | | | | | | Financial income| | -| -| -| -| -| 105| 105| 83 Financial expenses| | -| -| 1 | -| 1| 217| 218| 222 Affiliates | | -| -| -| -| \- | 2| 2| (1) Result from disposal of other shareholdings| | -| -| -| -| -| -| -| \- Total financial balance | 33| -| -| (1)| -| (1)| (110)| (111)| (140) Result before taxes| | \- | \- | 1 | \- | 1| 1,210| 1,211| 879 Income taxes | 34| -| -| \- | -| \- | 319| 319| 199 Result after taxes from operating activities| | \- | \- | 1 | \- | 1| 891| 892| 680 Net result from discontinued operations| 35| -| -| -| -| -| -| -| 3 Net result | | \- | \- | 1 | \- | 1| 891| 892| 683 Minorities | 36| -| -| -| -| -| (28)| (28)| (24) Group result of the year | 37| \- | \- | 1 | \- | 1| 863| 864| 659 26 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 2.7 Consolidation policies and procedures Consolidation criteria Subsidiaries Subsidiaries are those companies over which the parent company, A2A S.p.A., exercises control, also by virtue of shareholders’ agreements, and has the power, as defined by IFRS 10, to determine financial and operating policy, either directly or indirectly, in order to obtain returns from their activities. Subsidiaries are consolidated from the date on which the Group effectively acquires control and cease to be consolidated on a line-by-line basis from the date on which control is lost. Although the Group holds an equity interest of less than 50.01%, it controls the companies Acinque S.p.A., Ambiente Energia Brianza S.p.A. and ASM Energia S.p.A. by virtue of specific shareholders’ agreements. Associates, joint ventures and joint operations Shareholdings in associates, namely those in which the A2A Group has a considerable interest and is able to exercise significant influence are accounted for using the equity method. Gains and losses attributable to the Group are recognized in the financial statements from the date on which significant influence or joint control commences. In the event that the loss attributable to the Group exceeds the carrying amount of an investment, the carrying amount is reduced to zero and any excess loss is provided for to the extent that the Group has legal or constructive obligations to make good the associate’s losses or in any case to make payments on its behalf. With the adoption of IFRS 11, the Group must now classify investments in joint arrangements as either joint ventures (if the Group has rights to the net assets of the arrangement) or joint operations (if the Group has rights to the assets, and obligations for the liabilities, relating to the arrangement). Potential voting rights If the A2A Group holds call options on shares or other equity instruments that represent capital (warrants) that are convertible into ordinary shares or similar instruments having the potential, if exercised or converted, to give the Group voting rights or reduce the voting rights of third parties (“potential voting rights”), such potential voting rights are taken into consideration when assessing whether or not the Group has the power to govern or influence another company’s financial and operating policies. Treatment of put options on the shares of subsidiaries In general, paragraph 23 of IAS 32 states that a contract that contains an obligation for an entity to purchase shares for cash or another financial asset gives rise to a financial liability for the present value of the exercise price of the option. As a result, therefore, if the Group does not have the unconditional right to avoid the delivery of cash or other financial instruments when a put option on the shares of subsidiaries is exercised, it must recognize a liability. In the absence of specific instructions in the related accounting standards, the A2A Group: (i) considers the shares involving put options to have already been purchased, including in cases in which the risks and rewards connected with ownership of the shares remain with the minority shareholders and they remain exposed to equity risk; (ii) records a corresponding entry among equity reserves for the liability resulting from the obligation and any subsequent changes that are not related to the mere unwinding of the present value of the strike price; (iii) and recognizes such changes through the Income Statement. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 27 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Effect on the consolidation procedures of certain agreements involving the shares or quotas of Group companies a) Earn-out on the purchase of the equity investments made by A2A Rinnovabili S.p.A. With reference to the acquisitions of equity investments made by A2A Rinnovabili S.p.A. between 2017 and 2024, by contract, there are price and earn-out adjustments of non-significant amounts both in favor of the seller and in favor of the buyer upon the occurrence of certain conditions. Given the uncertainty and insignificance of the amounts, the Group has not recorded these values. b) Options on the shares of Agesp Energia S.r.l. On January 3, 2024, Acinque S.p.A. acquired 70% of the company Agesp Energia S.r.l.. As a result of the shareholders’ agreement entered into between Acinque S.p.A. and Agesp S.p.A. (seller), there is a put option granted by Acinque S.p.A. to Agesp S.p.A. on the remaining 30% share that can be exercised until the expiry of the 3rd (third) year from the date of signing of the Notary Deed. Therefore, the Group has recognized as a liability the present value of the estimated outlay of 8 million euro which it will not be able to avoid if the option is exercised. c) Options on the shares of Duereti S.r.l. On December 31, 2024, A2A S.p.A. acquired 90% of Duereti S.r.l.. Due to the shareholders’ agreement between A2A S.p.A. and E-Distribuzione S.p.A. (seller), there is a put option granted by A2A S.p.A to E-Distribuzione S.p.A. on the remaining 10% share that can be exercised until the expiry of the 3rd (third) year from the date of signing of the Notary Deed. Therefore, the Group has recognized as a liability the present value of the estimated outlay of 127 million euro which it will not be able to avoid if the option is exercised. d) Options on the shares of A2A Trezzo Ambiente S.r.l. A2A Trezzo Ambiente S.r.l. was incorporated on May 14, 2024, with A2A Ambiente S.p.A. holding an 86% stake and A2A Calore & Servizi S.r.l. holding a 4% stake. The shareholders’ agreement established at the time of incorporation between the companies of the A2A Group and Termokimik S.p.A. (holder of the remaining 10% stake), provides for the possibility for Termokimik S.p.A. to exercise, starting from the completion of the redevelopment activities of the waste-to-energy facility under concession, a sale option to the majority shareholder A2A Ambiente S.p.A. for a share up to the same percentage as its current interest, less one percentage point. Therefore, the Group has recognized as a liability the present value of the estimated outlay of 5 million euro which it will not be able to avoid if the option is exercised. Consolidation procedures General procedure The financial statements of the subsidiaries, associates and joint ventures consolidated by the A2A Group are prepared at the end of each reporting period using the same accounting policies as the parent. Any items recognized by using different accounting standards are adjusted during the consolidation process to bring them into line with Group accounting policies. All intra-group balances and transactions, including any unrealized profits arising from transactions between Group companies, are fully eliminated. In preparing the Report the assets, liabilities, income and expenses of the companies being consolidated are included in their entirety on a line-by-line basis, with the portion of equity and net income for the period attributable to minority interests being stated separately in the balance sheet and income statement. The carrying amount of the investment in each subsidiary is eliminated against the corresponding share of its net equity, including any adjustments to fair value at the acquisition date; any differences arising are accounted for in accordance with IFRS 3. Transactions with minority interests which do not lead to the loss of control in consolidated companies are accounted for using the economic entity view approach. 28 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Procedure for the consolidation of assets and liabilities held for sale (IFRS 5) In the case of particularly significant amounts and exclusively in relation to non-current assets and liabilities held for sale, in accordance with IFRS 5, the intra-group financial receivables and payables are eliminated. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 29 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 2.8 Accounting standards and policies Translation of foreign currency items The consolidated financial statements of the A2A Group are presented in euro; this is also the functional currency of the economies in which the Group operates. Transactions in other currencies are initially recognized at the exchange rates at the date of the transaction. Monetary assets and liabilities denominated in foreign currency are translated into euro at the exchange rates at the balance sheet date. Non-monetary items measured at historical cost in foreign currency are translated at the exchange rates at the date of the transaction. Non-monetary items measured at fair value are translated at the exchange rates at the date when the fair value was determined. Tangible assets Assets for business use are classified as tangible assets, while non-business assets are classified as investment property, if any. Tangible assets are measured at cost, including any additional charges directly attributable to bringing the asset into an operating condition (e.g. transport, customs duty, installation and testing costs, notary and land registry fees and any non-deductible VAT), increased when material and where there are obligations by the present value of the estimated cost of restoring the location from an environmental point of view or dismantling the asset. Borrowing costs, where directly attributable to the purchase or construction of an asset, are capitalized as part of the cost of the asset if the type of asset so warrants. If important components of tangible assets have different useful lives, they are accounted for separately using the “component approach”, assigning to each component its own useful life for the purpose of calculating depreciation (the component approach). Land, whether occupied by residential or industrial buildings or devoid of construction, is not depreciated as it has an unlimited useful life, except for land used in production activities that is subject to deterioration over time (e.g. landfills, quarries). Ordinary maintenance costs are fully expensed to the income statement in the year they are incurred. Costs for maintenance carried out at regular intervals are attributed to the assets to which they refer and are depreciated over the specific residual possibility of use of such. Tangible assets are stated net of accumulated depreciation and any write-downs. Depreciation is charged from the year in which the individual asset enters service on a straight-line basis over the estimated useful life of the asset for the business. The estimated realizable value which is deemed to be recoverable at the end of an asset’s useful life is not depreciated. The useful life of each asset is reviewed annually and any changes, if needed, are made with a view to showing the correct value of the asset. Landfills are depreciated on the basis of the percentage filled, which is calculated as the ratio between the volume occupied at the end of the period and the total volume authorized. 30 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements The main depreciation rates used, which are based on technical and economic considerations, are as follows: • buildings .......................................................................................................................................................................... 1.7% - 75.0% • land ....................................................................................................................................................................................... 0.6% - 4.1% • production plants........................................................................................................................................................0.1% - 75.0% • transport lines ................................................................................................................................................................ 2.2% - 4.3% • transformation stations .......................................................................................................................................... 2.5% - 44.9% • distribution networks ............................................................................................................................................... 0.1% - 44.9% • fiber-optic networks ..................................................................................................................................................4.3% - 20.1% • landfills .............................................................................................................................................................................. 0.1% - 21.9% • miscellaneous equipment ...................................................................................................................................... 0.3% - 57.1% • furniture and fittings .............................................................................................................................................. 1.25% - 48.0% • electric and electronic office machines........................................................................................................ 4.2% - 48.4% • vehicles ...........................................................................................................................................................................4.4% - 49.6% • e-moving .........................................................................................................................................................................5.3% - 16.7% • other miscellaneous assets ................................................................................................................................. 4.4% - 20.0% • capital goods of less than 516 euro ............................................................................................................................ 100.0% • leasehold improvements .........................................................................................................................................1.6% - 85.7% • leased assets ................................................................................................................................................................1.7% - 34.3% Tangible assets are subjected to impairment testing if there is any indication that an asset may be impaired in accordance with the paragraph below “Impairment of assets”; write-downs may be reversed in subsequent periods if the reasons for which they were recognized no longer apply. When an asset is disposed of or if future economic benefits are no longer expected from using an asset, it is removed from the balance sheet and any gain or loss (being the difference between the disposal proceeds and the carrying amount) is recognized in the income statement in the year of the derecognition. Leasing Assets for rights of use are recognized on the start date of the lease, i.e. the date on which the underlying asset is available for use. Rights to use assets are measured at cost, net of accumulated depreciation and impairment losses, and adjusted for any restatement of lease liabilities. The cost of assets for rights of use includes the amount of lease liabilities recognized and lease payments made on or before the commencement of the lease. Assets for right of use are depreciated on a straight-line basis from the effective date to the end of the useful life of the asset consisting of the right of use or at the end of the lease term, whichever is earlier. If the lease transfers ownership of the underlying asset to the lessee at the end of the term of the contract or if the cost of the asset consisting of the right of use reflects the fact that the lessee will exercise the purchase option, the asset consisting of the right of use is depreciated from the effective date until the end of the useful life of the underlying asset. Lease liabilities are recognized at the present value of lease payments not yet paid at the reporting date. Lease payments also include the exercise price of a purchase option if it is reasonably certain that the option will be exercised. Intangible assets Intangible assets are identifiable non-monetary assets without physical substance which are controlled by the enterprise and able to produce future economic benefits, and include goodwill when acquired for consideration. The fact of being identifiable distinguishes an intangible asset that has been acquired from goodwill; this requirement is normally met when: (i) the intangible asset is attributable to a legal or contractual right, or (ii) the asset is separable, in other words it can be sold, transferred, rented or exchanged individually or as an integral part of other assets. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 31 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Control by the enterprise consists of the right to enjoy the future economic benefits flowing from the asset and to restrict the access of others to those benefits. Intangible assets are stated at purchase or production cost, including ancillary charges, determined in the same way as for tangible assets. Intangible fixed assets produced internally are not capitalized but recognized in the income statement in the year in which the costs are incurred. Intangible assets with a definite useful life are reported in the financial statements net of the related accumulated amortization and impairments in the same way as for tangible assets. Changes in the expected useful life or in the ways in which the future economic benefits of an intangible asset are achieved by the Company are accounted for by suitably adjusting the period or method of amortization, treating them as changes in accounting estimates. The amortization of intangible fixed assets with a definite useful life is charged to income statement in the cost category that reflects the function of the intangible asset concerned. Intangible assets are subjected to impairment testing if there are specific indications that they may be impaired, in accordance with the paragraph below “Impairment of assets”; impairment losses may be reversed in subsequent periods if the reasons for which they were recognized no longer apply. Intangible assets with an indefinite useful life and those that are not yet available for use are subjected to impairment testing on an annual basis, whether or not there are any specific indications that they may be impaired, in accordance with the paragraph below “Impairment of assets”. Impairment losses recognized for goodwill are not reversed. Gains or losses on the disposal of an intangible asset are calculated as the difference between the disposal proceeds and the carrying amount of the asset and recognized in the Income Statement at the time of the disposal. The following amortization rates are applied to intangible assets with a definite useful life: • industrial patents and intellectual property rights................................................................................. 14.3% - 66.7% • concessions, licenses, trademarks and similar rights ............................................................................0.1% - 33.5% • other intangible assets ............................................................................................................................................ 1.7% - 70.6% Service concession arrangements IFRIC 12 states that, based on the characteristics of the concession arrangement, the infrastructures used in the provision of public services under concession are to be recognized as intangible assets if the operator has the right to receive a payment from the customer for the service provided, and/or as a financial asset if the operator has the right to receive payment from the public sector entity. In order to assess the applicability of these provisions for the Group as a concessionaire, management carried out a thorough analysis of the existing concessions. On the basis of these analyses, the concession services relevant to the Group under IFRIC 12 were as follows: • gas distribution network → intangible asset; • water cycle — water distribution, purification services, and sewerage → intangible asset; • management of votive lamps → financial asset; • public lighting → financial asset; • district heating network → intangible asset. Impairment/Reversal of tangible and intangible fixed assets Tangible and intangible assets are subjected to impairment testing if there is any specific indication that there may be an impairment loss. Goodwill, other intangible assets with an indefinite useful life and assets not available for use are tested for impairment at least annually or more frequently if there is any specific indication that they may be impaired. Impairment testing consists of comparing the carrying amount of an asset with its recoverable amount. 32 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. To determine an asset’s value in use, the entity calculates the present value of the estimated future cash flows on the basis of business plans prepared by management, before tax, applying a pre-tax discount rate which reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is lower than its carrying amount, a loss is recognized in the Income Statement. If a loss recognized for an asset other than goodwill no longer exists or is reduced, the carrying amount of the asset or cash-generating unit is increased to the new estimate of recoverable value, which may not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset. Reversals of impairment losses are immediately recognized in the income statement. When the recoverable amount of the individual asset cannot be estimated, it is based on the cash generating unit (CGU) or group of CGUs that the asset belongs to and/or to which it may be reasonably allocated. CGUs are identified on the basis of the company’s organizational and business structure as homogeneous aggregations that generate independent cash inflows deriving from the continuous use of the assets allocated to them. Environmental certificates: emission quotas and White Certificates Different accounting policies are applied to quotas or certificates held for own use in the “Industrial Portfolio” and those held for trading purposes in the “Trading Portfolio”. Surplus quotas or certificates held for own use in the “Industrial Portfolio” which are in excess of the Group’s requirements in relation to the obligations accruing at year end are recognized as other intangible assets at the actual cost incurred. Quotas or certificates assigned free of charge are recognized at a zero carrying amount. Given that they are assets for instant use, they are not amortized but subjected to impairment testing. The recoverable amount is the higher of value in use and market value. If, on the other hand, there is a deficit because the requirement exceeds the quotas or certificates in portfolio at the balance sheet date, a provision is recognized for the amount needed to meet the residual obligation, estimated on the basis of any purchase contracts, spot or forward, already signed at the balance sheet date; otherwise on the basis of market prices. Quotas or certificates held for trading in the “Trading Portfolio” are recognized in inventories and measured at the lower of purchase cost and estimated realizable value based on market trends. Quotas or certificates assigned free of charge are recognized at a zero carrying amount. Market value is established on the basis of any sales contracts, spot or forward, already signed at the balance sheet date, otherwise, on the basis of market prices. Shareholdings in subsidiaries, associates and joint ventures Subsidiaries are companies in which the parent company “is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee”, as defined by IFRS 10. Control is generally assumed to exist when a company holds either directly or indirectly more than half of the exercisable voting rights at an ordinary shareholders’ meeting, also considering potential voting rights, meaning voting rights deriving from convertible financial instruments. Subsidiaries are consolidated on a line-by-line basis. Associates are companies in which the parent has a significant influence over strategic decisions, despite not having control, also considering potential voting rights, meaning voting rights deriving from convertible financial instruments; significant influence is assumed to exist when A2A S.p.A. holds, either directly or indirectly, more than 20% of voting rights exercisable at an ordinary shareholders’ meeting. In order to determine the existence of significant influence, management’s judgement is required to evaluate all facts and circumstances. The Group reviews the existence of significant influence when facts and circumstances indicate that there has been a change in one or more of the elements considered for the test of the existence of significant influence. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 33 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Shareholdings in associates and joint ventures are accounted for in the consolidated financial statements using the equity method. Shareholdings in joint ventures (IFRS 11) IFRS 11 identifies two types of arrangement, joint operations and joint ventures, on the basis of the rights and obligations of the parties, and governs the resulting accounting treatment to be adopted for the recognition of these arrangements in the financial statements. The accounting treatment for this type of joint arrangement requires the assets/liabilities and revenue/expenses connected with the arrangement to be recognized on the basis of the rights/ obligations due to/assumed by A2A, regardless of the interest held. In order to ascertain the presence of joint control and the type of joint control agreement, management judgement is required to assess the rights and obligations arising from the agreement. For this purpose, the management evaluates the structure and legal form of the agreement, the terms agreed between the parties in the contract, and, when relevant, other facts and circumstances. The Group re-evaluates the existence of joint control when the facts and circumstances indicate a change in one or more factors considered for verifying the existence of joint control and the type of joint control agreement. In the particular case of its shareholdings in two joint arrangements operating in the Generation and Trading Business Unit, Ergosud S.p.A. and PremiumGas S.p.A., the A2A Group considers that these fall under the category joint ventures as far as their legal form and the nature of the contractual agreements are concerned. In particular, as regards the shareholding in PremiumGas S.p.A., the Group has rights exclusively linked to the results achieved by the company. On September 26, 2018, PremiumGas S.p.A. was placed in voluntary liquidation. For the shareholding in Ergosud S.p.A., despite the existence of a tolling agreement the investee could dispatch energy autonomously, thereby ensuring business continuity also at the end of the agreement. In addition, the A2A Group does not appoint any of the company’s key management. On the basis of the above considerations, the A2A Group has accounted for the shareholdings using the equity method, continuing the treatment used in previous years. 34 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Latest available summarized figures for joint ventures (consolidated at equity) Key figures at December 31, 2023millions of euro| Bergamo Pulita 50%| PremiumGas 50%| Metamer50%| Ergosud50% ---|---|---|---|--- Income statement| | | | Revenues from the sale of goods | 0.05| 0.00| 36.5| 40.8 Gross Operating Margin | (0.25)| (0.00) | 1.1| 12.3 % of net revenues | n.s.| n.s.| 3.0%| 30.1% Depreciation, amortization and write-downs| 0.2 | \- | 0.5| 9.2 Net Operating Result | (0.05)| (0.00) | 0.5| 3.1 Result of the year | (0.46)| 0.00| 0.1| 1.9 Balance sheet| | | | Total assets | 2.61| 2.3| 14.8| 134.3 Shareholders’ equity | (0.13)| 2.3| 3.0| 71.4 Net financial (debt) | 2.35| 1.8| (4.4)| (18.4) Key figures at December 31, 2022millions of euro| Bergamo Pulita 50%| PremiumGas 50%| Metamer50%| Ergosud50% ---|---|---|---|--- Income statement| | | | Revenues from the sale of goods | 0.05| 0.00| 44.6| 43.3 Gross Operating Margin | (0.25)| (0.03)| 1.3| 12.4 % of net revenues | n.s.| n.s.| 2.9%| 28.7% Depreciation, amortization and write-downs| \- | \- | 0.4| 9.4 Net Operating Result | (0.25)| (0.03)| 0.9| 3.0 Result of the year | (0.25)| 0.00| 0.6| 0.9 Balance sheet| | | | Total assets | 2.40| 2.4| 16.0| 145.2 Shareholders’ equity | (0.2)| 2.3| 3.1| 69.4 Net financial (debt) | 2.13| 1.8| (2.0)| (29.9) Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 35 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Long term construction contracts in progress Construction contracts with durations exceeding one year in progress are valued in accordance with IFRS 15. In particular, over-the-time revenues are recognized if it can be demonstrated that: a) the customer simultaneously receives and consumes the benefits of the contract in force at the same time as the service is provided b) the service provided improves. Construction contracts currently in progress are measured on the basis of the contractual fees that have accrued with reasonable certainty on the basis of the stage of completion, using the “cost to cost” method, so as to allocate the revenues and net result of the contract to the individual periods to which they belong in proportion to the progress being made on the project. Any difference, positive or negative, between the value of the contracts and advances received is recognized as an asset or a liability respectively. In addition to the contractual fees, contract revenues include variants, price revisions and incentive awards to the extent that it is probable that they represent actual revenues that can be reliably determined. Ascertained losses are recognized independently of the stage of completion of contracts. Inventories Inventories of materials and fuel are measured at the lower of weighted average cost and market value at the balance sheet date. Weighted average cost is determined for the period of reference for each inventory code. Weighted average cost includes any additional costs (such as sea freight, customers charges, insurance and lay or demurrage days in the purchase of fuel). Inventories are constantly monitored and, where necessary, obsolete stocks are written down with a charge to the Income Statement. Inventories of gas held for trading purposes, in storage at separate facilities as opposed to gas used for industrial purposes, are measured at fair value at the reporting date as required by IAS 2 par. 3 letter b. Power Purchase Agreement Power Purchase Agreements (PPA) that provide for the physical delivery of energy and that do not meet the requirements of IFRS 10 for the existence of control or joint control over a company or asset and IFRS 16 for the recognition of a lease, but that meet the definition of a derivative in IFRS 9, are accounted for under the rules of the own use exemption when the relevant conditions are met. Financial instruments They include shareholdings (excluding shareholdings in subsidiaries, joint ventures and associates) held for trading (so-called trading shareholdings) or available for sale, non-current receivables and loans and other non-current financial assets, trade and other receivables deriving from company operations and other current financial assets such as cash and cash equivalents. The latter consist of bank and postal deposits, readily negotiable securities used as temporary investments of surplus cash and financial receivables due within three months. Financial instruments also include financial payables (bank loans and bonds), trade payables, other payables and other financial liabilities and derivatives. Financial assets and liabilities are recognized at the time that the contractual rights and obligations forming part of the instrument arise. Financial assets and liabilities are accounted for in accordance with IFRS 9 “Financial Instruments”. 36 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Financial assets Initial recognition Financial assets are classified into two categories alone: “at fair value” or “at amortized cost”. Classification within the two categories is carried out on the basis of an entity’s business model and the contractual cash flow characteristics of the financial asset. A financial asset is measured at amortized cost if both of the following requirements are met: the objective of the entity’s business model is to hold assets to collect contractual cash flows (and therefore in substance not to earn trading profits) and the characteristics of the cash flows of the asset are solely payments of principal and interest. A financial asset is measured at fair value if it is not measured at amortized cost. Debt instruments may be recorded at fair value through profit or loss upon initial recognition if this results in the elimination or significant reduction of an accounting mismatch. All equity instruments - both listed and unlisted - are measured at fair value. The Group does not refer to the option of presenting changes in the fair value of equity instruments that are not held for trading in equity; that option is not permitted for equity instruments that are held for trading. This designation is permitted on initial recognition, may be adopted for each individual instrument and is irrevocable. Subsequent valuation Measurement subsequent to initial recognition depends on which of the following categories the financial instrument falls into: • Financial assets at amortized cost (debt instruments); • Financial assets at fair value in the Income Statement with reclassification of cumulative gains and losses (debt instruments); • Financial assets at fair value in the Income Statement without reversal of cumulative gains and losses at the time of derecognition (equity instruments); • Financial assets at fair value in the Income Statement. Financial assets at amortized cost These are valued using the effective interest method and are subject to impairment. Gains and losses are recognized in the income statement when the asset is derecognized, modified or revalued. Investments in equity instruments Gains and losses on these financial assets are never reclassified to the income statement. Dividends are recognized as other income in the income statement when the right to payment has been approved, except when the Group benefits from such income as a recovery of part of the cost of the financial asset, in which case such profits are recognized in OCI. Equity instruments recognized at fair value through OCI are not subject to impairment testing. Financial assets measured at fair value through the income statement This category includes assets held for trading, assets designated at the time of initial recognition as financial assets at fair value with changes recognized in the Income Statement, or financial assets that must be measured at fair value. Assets held for trading are all those assets acquired for sale or repurchase in the short term. Derivatives, including those separated, are classified as financial instruments held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not represented solely by principal and interest payments are classified and measured at fair value in the Income Statement, regardless of the business model. Financial instruments at fair value with changes recognized in the Income Statement are recognized in the statement of financial position at fair value and net changes in fair value are recognized in profit/(loss) for the year. Dividends on listed equity investments are also recognized as other income in the statement of profit/(loss) for the year when the right to payment is established. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 37 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report The embedded derivative contained in a non-derivative hybrid contract, in a financial liability or in a principal non-financial contract, is separated from the principal contract and accounted for as a separate derivative, if: its economic characteristics and the risks associated with it are not closely correlated with those of the principal contract; a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and the hybrid contract is not measured at fair value in the Income Statement. Embedded derivatives are measured at fair value, with changes in fair value recognized in the Income Statement. A restatement occurs only when there is a change in the terms of the contract that significantly changes the cash flows otherwise expected or a reclassification of a financial asset to a category other than fair value in the Income Statement. An embedded derivative included in a hybrid contract that contains a financial asset is not separated from the host contract. The financial asset together with the embedded derivative is classified entirely as a financial asset at fair value in the Income Statement. Derecognition A financial asset is derecognized when: • the rights to receive cash flows from the asset no longer apply; • the company has transferred to a third party the right to receive cash flows from the asset or has assumed a contractual obligation to transfer them. In substance, the transfer is completed when: the company has transferred all the risks and rewards of ownership of the asset or has transferred control of the asset while maintaining the related risks and rewards. In cases where the company has transferred the rights to receive cash flows from an asset or signed an agreement under which it retains the contractual rights to receive the cash flows from the financial asset but assumes a contractual obligation to pay the cash flows to one or more beneficiaries (pass- through), it assesses whether and to what extent it has retained the risks and rewards of ownership. In the cases in which it has neither transferred nor retained substantially all of the risks and rewards or has not lost control of the asset, it continues to be recognized in the financial statements of the Group to the extent of its continuing involvement in the asset. In this case, the Group also recognizes an associated liability. The transferred asset and the associated liability are valued to reflect the rights and obligations that remain with the Group. When the entity’s continuing involvement is a guarantee of the transferred asset, involvement is measured on the basis of the lower of the amount of the asset and the maximum amount of consideration received that the entity might have to repay. Financial liabilities Financial liabilities are classified, at the time of initial recognition, at fair value in the Income Statement, as mortgages and loans or as derivatives designated as hedges. Directly attributable transaction costs are added to the valuation. The Group’s financial liabilities include trade payables and other payables, mortgages and loans, including current account overdrafts and derivative financial instruments. The subsequent evaluation depends on the classification of the main instrument: • financial liabilities at fair value in the Income Statement, typically of a trading nature (settlement and transfer in the short term). This category includes financial derivatives held for trading (speculative); • loans and receivables: valued at amortized cost using the effective interest method. Gains and losses are recognized in the Income Statement when the liability is settled, as well as through amortization. A financial liability is derecognized when the obligation underlying the liability is settled or cancelled. Derivative financial instruments and hedge accounting These are initially recognized at fair value on the date the contract is signed and the subsequent measurement is also at fair value. To classify a derivative as a hedge, the company formally designates and documents the hedging relationship, its risk management objectives and the strategy pursued. 38 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements From January 1, 2018, the following must be identified: a) the hedging instrument b) the nature of the risk being hedged c) the way in which the company will assess the effectiveness of the hedge. The hedging relationship is effective if: • there is an economic relationship between the hedged item and the hedging instrument; • the effect of the credit risk does not prevail over the changes in value resulting from the aforementioned economic relationship; • the hedging ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge this quantity of hedged item. Transactions that meet the above criteria are accounted for as follows: Fair value hedging If a derivative financial instrument is designated as a hedge against exposure to changes in the fair value of an asset or liability attributable to a specific risk, the gain or loss resulting from subsequent changes in fair value of the hedging instrument is recognized in the Income Statement. The profit or loss deriving from the adjustment to fair value of the item hedged, for the part attributable to the hedged risk, changes the book value of this item and is recognized in the Income Statement. Cash flow hedge - If a derivative financial instrument is designated to hedge the exposure to the variability of the cash flows of an asset or a liability recognized in the Financial Statements or of a highly probable transaction, the effective portion of the resulting profits or losses deriving from the fair value adjustment of the derivative instrument is recognized in a specific equity reserve. The cumulative profit or loss is reversed from the equity reserve and recorded in the Income Statement in the same years in which the effects of the hedged transaction are recognized in the Income Statement. The gain or loss associated with that part of the ineffective hedge is recognized in the Income Statement immediately. If the hedged transaction is no longer considered probable, the unrealized gains or losses recognized in the equity reserve are immediately recognized in the Income Statement. Cash flow hedges The portion of gain or loss on the hedged instrument relating to the effective portion of the hedge is recognized in other comprehensive income in the cash flow hedge reserve, while the ineffective portion is recognized directly in the Income Statement. The cash flow hedge reserve is adjusted to the lower of the cumulative gain or loss on the hedging instrument and the cumulative change in the fair value of the hedged item. Amounts accumulated under other components of the comprehensive income statement are recorded, depending on the nature of the underlying hedged transaction. If the hedged transaction subsequently results in the recognition of a non-financial component, the accumulated amount in equity is removed from the separate component of equity and included in the cost or other carrying amount of the asset or liability hedged. This is not considered a reclassification of the items recognized in OCI for the period. This also applies in the case of a hedged forecast transaction of a non-financial asset or a non-financial liability that subsequently becomes an irrevocable commitment to which fair value hedge accounting is applied. For any other cash flow hedge, the amount accumulated in OCI is reclassified in the Income Statement as a reclassification adjustment in the same period or periods during which the hedged cash flows impact profit or loss. If the cash flow hedge accounting is discontinued, the accumulated amount in OCI must remain so if the hedged future cash flows are expected to occur. Otherwise, the amount shall be immediately reclassified to profit or loss for the period as a reclassification adjustment. After suspension, once the hedged cash flow occurs, any accumulated amount remaining in OCI must be accounted for depending on the nature of the underlying transaction as described above. Non-current assets held for sale, disposal groups and discontinued operations – IFRS 5 Non-current assets held for sale, disposal groups and discontinued operations whose carrying amount will be recovered principally through sale rather than continuous use are measured at the lower of their carrying amount and fair value less costs to sell. A disposal group is a group of assets Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 39 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report to be disposed of together as a group in a single transaction together with the liabilities directly associated with those assets that will be transferred in that transaction. Discontinued operations on the other hand consist of a significant component of the Group such as a separate major line of business or a geographical area of operations or a subsidiary acquired exclusively with a view to resale. In accordance with IFRSs, the figures for non-current assets held for sale, disposal groups and discontinued operations are shown on two specific lines in the balance sheet: non-current assets held for sale and liabilities directly associated with non-current assets held for sale. Non-current assets held for sale are not depreciated or amortized and are measured at the lower of carrying amount and fair value less costs to sell; any difference between carrying amount and fair value less costs to sell is recognized in the income statement as a write-down. The net economic results arising from discontinued operations, and only discontinued operations, pending the disposal process, any gains or losses on disposal and the corresponding comparative figures for the previous year or period are recognized in a specific line of the Income Statement: “Net result from discontinued operations”. On the other hand any gains or losses recognized as the result of measuring non-current assets (or disposal groups), classified as ‘held for sale’ within the meaning of IFRS 5, at fair value less costs to sell are presented in a specific line item of the income statement ‘Result from non-recurring transactions’, as discussed further in the previous section ‘Format of financial statements (2.3). Employee benefits The employees’ leaving entitlement (TFR) and pension provisions are determined using actuarial methods; the rights accrued by employees during the year are recognized in the Income Statement as “labor costs”, whereas the figurative financial cost that the company would have to bear if it were to ask the market for a loan of the same amount as the TFR is recognized as part of the “financial balance”. Actuarial gains and losses arising from changes in actuarial assumptions are recognized in income statement taking into account the residual average working life of the employees. Following the introduction of Finance Law no. 296 of December 27, 2006, only the portion of accrued employees’ leaving entitlement that remained in the company has been measured in accordance with IAS 19, as amounts are now paid over to a separate entity as they accrue (either to a supplementary pension scheme or to funds held by INPS). As a result of these payments the company no longer has any obligations in connection with the services employees may render in the future. Guaranteed employee benefits paid on or after the termination of employment through defined benefit plans (energy discount, health care or other benefits) or long-term benefits (loyalty bonuses) are recognized in the period when the right vests. The liability for defined benefit plans, net of any plan assets, is determined by independent actuaries on the basis of actuarial assumptions and recognized on an accrual basis in line with the work performed to obtain the benefits. Gains and losses arising from actuarial calculations are recognized in a specific equity reserve. Provisions for risks, charges and liabilities for landfills Provisions for risks and charges regard costs of a determinate nature and of certain or probable existence which at year-end are uncertain in terms of timing or amount. Provisions are recognized when there is a legal or constructive present obligation arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits, and it is possible to make a reasonable estimate of the obligation. Provisions are recognized at the best estimate of the amount that the company would have to pay to settle the liability or to transfer it to third parties at the balance sheet date. If the effect of discounting is significant, provisions are calculated by discounting expected future cash flows at a pre-tax discount rate that reflects the current market assessment of the time value of money. If discounting is used the increase in the provision due to the passage of time is recognized as financial expense. If the liability relates to tangible assets (such as the dismantling and reclamation of industrial sites), the initial provision is recognized as a counter-entry to the assets to which it refers; expense is then charged to income statement as the asset in question is depreciated. 40 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Treasury shares Treasury shares are accounted for as a deduction from equity. In particular, treasury shares are recognized as a negative equity reserve. Grants Grants, both from public entities and from third party private entities, are measured at fair value when there is the reasonable certainty that they will be received and that the Group will be able to comply with the terms and conditions for obtaining them. Grants received to provide support for the cost of specific assets are recognized as a direct deduction from the assets concerned and credited to the income statement over the life of the depreciable asset to which they refer. Revenue grants (given to provide the company with immediate financial support or as compensation for expenses or losses incurred in a previous accounting period) are recognized in their entirety in the income statement as soon as the conditions for recognizing the grants are met. Revenues and costs The recognition of revenues is based on the following five steps: (i) identification of the contract with the customer; (ii) identification of the performance obligations, represented by the contractual promises to transfer goods and/or services to a customer; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations identified on the basis of the stand-alone sale price of each good or service; (v) recognition of the revenue when the relative performance obligation is satisfied, i.e. when the promised good or service is transferred to the customer; the transfer is considered completed when the customer obtains control of the good or service, which can occur continuously over time diluted and extended or at a point in time. Depending on the type of transaction, revenues are recognized on the basis of the following specific criteria: • revenues for the sale and transport of electricity and gas are recognized at the time that the energy is supplied or the service rendered, even if invoicing has not yet taken place, and are determined by adding estimates of consumption to amounts resulting from pre- established meter-reading schedules. Where applicable, these revenues are based on the tariffs and related tariff restrictions in force during the year prescribed by the law and the Regulatory Authority for Energy, Networks and the Environment and similar foreign bodies; • connection contributions paid by users, if not for costs incurred to extend the network, are recognized in the income statement on collection and presented as “revenues from services”; • the revenues billed to users for an extension of the gas network are accounted for as a reduction in the carrying amount of tangible assets and are recognized in the income statement as a reduction in the depreciation charged over the useful life of the cost capitalized to extend the network; • the revenues and costs involved in withdrawing quantities that are higher or lower than the Group’s share are measured at the prices envisaged in the related purchase or sale contract; • revenues from the provision of services are recognized according to the stage of completion based on the same criteria as for contract work in progress. If it is impossible to calculate revenues on a reliable basis they are recognized up to the amount of the costs incurred providing they are expected to be recovered; • revenues from the sale of certificates are recognized at the time of sale. Revenues are stated net of returns, discounts, allowances and rebates, as well as directly related taxes. Expenses relate to goods or services sold or consumed during the year or as a result of systematic allocation; if no future use is envisaged they are recognized directly in the income statement. Result from non-recurring transactions The item “Result from non-recurring transactions” is intended to include the results from the sale of investments in subsidiaries and associates and other non-operating expenses/income. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 41 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Financial income and expenses Financial income is recognized when interest income arises using the effective interest method, i.e. at the rate that exactly discounts expected future cash flows over the expected life of the financial instrument. Financial expense is recognized in the Income Statement on an accrual basis and are recorded in the amount of effective interest. Dividends Dividend income is recognized when it is established that the shareholders have a right to receive payment, and is recognized as financial income in the Income Statement. Income taxes Current taxes Current income taxes are based on an estimate of taxable income in compliance with tax regulations in force or substantially approved at the balance sheet date, bearing in mind any exemptions or tax credits due. Account is also taken of the fact that the Group now files for tax on a consolidated basis. Deferred tax assets and liabilities Deferred tax assets and liabilities are calculated on the temporary differences between the carrying amount of assets and liabilities in the balance sheet and their tax bases, with the exception of goodwill which is not deductible for tax purposes and any differences resulting from investments in subsidiaries which are not expected to reverse in the foreseeable future. The tax rates used are those expected to apply to the period when the temporary differences reverse. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the tax benefit will be realized. The measurement of deferred tax assets takes account of the period for which business plans are available. When transactions are recognized directly in equity, any related current or deferred tax effects are also recognized directly in equity. Deferred taxes on the undistributed profits of Group companies are only provided for if there is the real intention to distribute such profits and, in any case, if the taxation is not offset as the result of filing a Group tax return. Deferred tax assets and liabilities are classified as non-current assets and liabilities. Taxes are only offset when they are levied by the same tax authority, when there is the legal right of set-off and when settlement of the net balance is expected. Use of estimates Preparing the financial statements and notes requires the use of estimates and assumptions in determining certain assets and liabilities and measuring contingent assets and liabilities. The actual results after the event could differ from such estimates. Estimates have been used in assessing the recoverability of assets, to determine certain sales revenues, in provisions for risks and charges, in provisions for receivables and other write-downs, amortization and depreciation, the valuation of derivatives, employee benefits and taxes. The underlying estimates and assumptions are regularly reviewed and the effect of any change is immediately recognized in the income statement. With reference to climate change risks, the Group believes that they are an implicit element in the application of the methodologies and models used to make estimates, evaluations and measurements of certain items in the financial statements. Management believes that the main areas of the consolidated financial statements at December 31, 2024, the valuation of which is subject to the use of estimates and judgement by management, also with reference to climate change risks, are those subject to impairment tests (tangible and intangible assets, including goodwill) and the provisions for risks, with specific reference to decommissioning provisions, and contingent liabilities. 42 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements For further details, please refer to the specific paragraph “ESRS E1 - Climate Change” contained in the Sustainability Report in the Report on Operations, as well as to the paragraph on impairment test contained in Note 2) Intangible Assets. The following are the key assumptions made by management as part of the process of making these accounting estimates. The inherently critical element of such estimates comes from using assumptions or professional opinions on matters that are by their very nature uncertain. Changes in the conditions underlying the assumptions and opinions used could have a material impact on subsequent results. Impairment Test The carrying amount of non-current assets (including goodwill and other intangible assets) is reviewed periodically and whenever circumstances or events require a more frequent assessment. If it is considered that the book value of a group of fixed assets or an equity investment has had an impairment loss, it is subject to the application of professional judgement by management and is based on assumptions that include: the identification of the Cash Generating Units, the estimate of the future operating cash flows associated with these CGUs during the reference period of the 2024- 2035 business plan, updated with the estimate of the cash flows subsequent to this time horizon, the cash flow deriving from the disposal at the end of useful life of the assets, discount rates used (‘Wacc’). These assumptions are complex due to their nature and imply recourse to the opinion of the directors, who are also sensitive to future trends in energy markets, macroeconomic scenarios, and the resolutions of ARERA. For the purpose of preparing the impairment test, the company avails itself of the support of an independent expert, external to the A2A Group. In the hypothesis in which the recoverable value is lower than the carrying amount, the latter is written down to the extent applicable. Management is of the opinion that the estimates of such recoverable amounts are reasonable, albeit subject to changes in the factors underlying the estimates on which these recoverable amounts have been calculated could produce different measurements. For further details on the way in which impairment testing was carried out and the results of such testing, reference is made to the specific paragraph. Revenue recognition Revenues from sales include the estimate of accrued revenues related to gas and electricity consumed by customers and not yet subject to periodic reading at December 31, 2024 and the estimate of revenues accrued for gas and electricity consumed by customers and not yet billed at December 31, 2024, in addition to the revenues already billed to customers based on the periodic consumption readings made during the year. The processes and methods for evaluating and determining these estimates are based on sometimes complex assumptions that by their nature imply recourse to the opinion of the directors, in particular with regard to recognition of accrued revenues, as the methods used by the A2A Group to estimate the quantities of consumption between the date of the last reading and December 31, and therefore to value the revenues accrued during the year, are based on assumptions and complex calculation algorithms that concern various information systems. Furthermore, the estimate of consumption not subject to periodic reading is made by taking as reference the historical profile of each user, adjusted on the basis of climatic correction factors provided by the Regulatory Authority for Energy, Networks and the Environment (also “ARERA”), to incorporate other variables that can have an impact on consumption. Provisions for risks and charges In certain circumstances it is not easy to identify whether a legal or constructive present obligation exists. The directors assess these situations case by case, together with an estimate of the economic resources required to settle the obligation. Estimating such provisions is the result of a complex process that involves subjective judgements on the part of company management. When the directors are of the opinion that it is only possible that a liability could arise, the risks are disclosed in the section on commitments and contingent liabilities without making any provision. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 43 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Liabilities for landfills The liabilities for landfills provision represents the amount set aside to meet the costs which will be incurred for the management of the period of closure and post-closure of landfills currently in use. The future outlays, calculated for each landfill by a specific appraisal updated annually, were discounted in accordance with the provisions of IAS 37. Bad debts provision The entry into force of IFRS 9 on January 1, 2018 has led to a change in the recognition of credit losses for the Group. The approach adopted is a forward-looking one, focusing on the probability of future losses on receivables, even in the absence of events that would suggest the need to write- down a credit position (Expected Losses). The Group applies the IFRS 9 approach for assessing the provision for credit risks, adopting different criteria depending on the features of the receivables being analyzed. In particular, receivables that are individually significant are expected to undergo a specific analysis to assess their recoverability. Conversely, the write-down of receivables not under specific assessment is determined by applying the business’s specific unpaid ratio. Depreciation/Amortization Depreciation and amortization charges are a significant cost for the company. Non-current assets are depreciated or amortized on a straight-line basis over the useful lives of the assets. The useful lives of the company’s non-current assets are established by the directors, with the assistance of expert appraisers, when they are purchased. The company periodically reviews technological and sector changes, dismantling/closure charges and the recovery amount of assets to update their residual useful lives. This periodic update could lead to a change in the period of depreciation or amortization and hence also in the depreciation or amortization charge in future years. Measurement of derivative instruments The derivatives used are measured at fair value based on the forward market curve at the balance sheet date, if the underlying of the derivative is traded on markets that provide official, liquid forward prices. If the market does not provide forward prices, forecast price curves are used based on simulation models developed by Group companies internally. However, the actual results of derivatives could differ from the measurements made. Serious turbulence on markets for the energy commodities traded by the company, as well fluctuations in exchange and interest rates, could lead to greater volatility in cash flows and in expected results. Employee benefits The calculations of expenses and the related liabilities, estimated by independent experts, are based on actuarial assumptions. The full effects of any changes in these actuarial assumptions are recognized in a specific equity reserve. Business combinations Accounting for business combinations entails allocating the difference between purchase cost and net carrying amount to the assets and liabilities of the acquired business. For the majority of assets and liabilities this difference is allocated by recognizing the assets and liabilities at fair value. If positive, the unallocated portion is recognized as goodwill. If negative, it is recognized in the income statement. A2A S.p.A. bases its allocations on available information and, for the more significant business combinations, on external appraisals. Current taxes and future recovery of deferred tax assets The uncertainties that exist regarding the way of applying certain tax regulations have led the company to taking an interpretative stance when providing for current taxes in the financial statements; such interpretations could be overturned by official clarifications on the part of the tax authorities. Deferred tax assets are accounted for on the basis of the taxable profit expected to be available in future years. Assessing the expected taxable profit for the purpose of accounting for deferred taxation depends on factors that can vary over time, and may lead to significant effects on the measurement of deferred tax assets. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 45 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 2.9 Business Units The A2A Group operates in the production, sale and distribution of gas and electricity, district heating, environmental services and the integrated water cycle. These sectors are in turn attributable to the “Business Units” specified in the following scheme identified following the reorganization made by management: Generation and Trading • Thermoelectric, hydroelectric and other renewable plants • Energy Management Market • Sale of Electricity and Gas • Energy efficiency • Electric mobility Waste • Waste collection and street sweeping • Treatment • Disposal and energy recovery Smart Infrastructures • Electricity networks • Gas networks • Integrated water cycle • District Heating services • Heat management services • Development and management of technological infrastructures for integrated digital services • Public lighting Corporate • Corporate services 46 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 60 A2A Integrated Report 2024 Analysis of main sectors of activity 12.31.2024Millions of euro| Generation and Trading| Market| Waste| Smart Infrastructures| Corporate | Eliminations| Income statement ---|---|---|---|---|---|---|--- | 01.01.24 | 01.01.24 | 01.01.24| 01.01.24| 01.01.24| 01.01.24| 01.01.24 | 12.31.24 | 12.31.24 | 12.31.24| 12.31.24| 12.31.24| 12.31.24| 12.31.24 Revenues | 8,519 | 6,670 | 1,540 | 1,492 | 353 | (5,717)| 12,857 \- of which inter-sector| 4,529 | 145 | 311 | 408 | 324 | (5,717)| Operating expenses| (7,428)| (6,135)| (743)| (810)| (238)| 5,717 | (9,637) \- of which inter-sector| (470)| (4,702)| (133)| (396)| (16)| 5,717 | Labor costs | (105)| (73)| (388)| (130)| (196)| | (892) Gross operating income - EBITDA| 986 | 462 | 409 | 552 | (81)| | 2,328 % of revenues | 11.6%| 6.9%| 26.6%| 37.0 %| (22.9%) | | 18.1% Depreciation of tangible assets and amortization of intangible assets| (253)| (85)| (179)| (289)| (78)| | (884) Net write-downs of fixed assets| (1)| -| (7)| (5)| (1)| | (14) Provisions for risks| (30)| 11 | (14)| 5 | (3)| | (31) Provisions for credit risks| -| (80)| (1)| (3)| 2 | | (82) Net operating income \- EBIT| 702 | 308 | 208 | 260 | (161)| | 1,317 % of revenues | 8.2%| 4.6%| 13.5%| 17.4%| (45.6%)| | 10.2% Result from non-recurring transactions| | | | | | | 5 Financial balance| | | | | | | (111) Result before taxes| | | | | | | 1,211 Income taxes| | | | | | | (319) Result after taxes from operating activities| | | | | | | 892 Net result from discontinued operations| | | | | | | - Minorities| | | | | | | (28) Group result of the year| | | | | | | 864 Gross capex1| 370 | 115 | 256 | 660 | 112 | (1)| 1,512 1\. See the items “Capex” in the schedules on tangible and intangible assets presented in Notes 1 and 2 to the balance sheet. 4.1 Summary of results sector by sector 2.10 Results sector by sector Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 47 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Reporting 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Analysis of main sectors of activity A2A Integrated Report 2024 A2A 61 12.31.2023Millions of euro| Generation and Trading| Market | Waste Smart Infrastructures| Corporate Eliminations | Income statement ---|---|---|---|---|--- | 01.01.23 | 01.01.23 | 01.01.23 | 01.01.23| 01.01.23 | 01.01.23 | 01.01.23 | 12.31.23 | 12.31.23 | 12.31.23 | 12.31.23| 12.31.23 | 12.31.23 | 12.31.23 Revenues | 10,920 | 7,140 | 1,458 | 1,552 | 337 | (6,649) | 14,758 \- of which inter-sector | 5,491 | 180 | 313 | 354 | 311 | (6,649)| Operating expenses | (9,992)| (6,777)| (718) | (904)| (230) | 6,649 | (11,972) \- of which inter-sector| (417)| (5,624)| (126) | (413)| (69) | 6,649 | Labor costs | (99)| (64) | (365) | (114)| (173)| | (815) Gross operating income - EBITDA| 829 | 299 | 375 | 534 | (66)| | 1,971 % of revenues | 7.6 %| 4.2% | 25.7% | 34.4%| (19.6%)| | 13.4% Depreciation of tangible assets and amortization of intangible assets| (225)| (68)| (160) | (282)| (66)| | (801) Net write-downs of fixed assets| -| -| (1) | (1)| -| | (2) Provisions for risks | (50)| 5 | (9) | (11)| (3)| | (68) Provisions for credit risks| -| (69)| 1 | (10)| (5)| | (83) Net operating income \- EBIT| 554 | 167 | 206 | 230 | (140)| | 1,017 % of revenues | 5.1%| 2.3%| 14.1% | 14.8%| (41.5%)| | 6.9% Result from non-recurring transactions| | | | | | | 2 Financial balance| | | | | | | (140) Result before taxes| | | | | | | 879 Income taxes| | | | | | | (199) Result after taxes from operating activities| | | | | | | 680 Net result from discontinued operations| | | | | | | 3 Minorities| | | | | | | (24) Group result of the year| | | | | | | 659 Gross capex1| 332 | 92 | 214 | 631 | 110 | (3)| 1,376 1\. See the items “Capex” in the schedules on tangible and intangible assets presented in Notes 1 and 2 to the balance sheet. 48 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 62 A2A Integrated Report 2024 Analysis of main sectors of activity 12.31.2024Millions of euro| Generation and Trading| Market| Waste| Smart Infrastructures| Corporate | Eliminations and adjustments| Total Group ---|---|---|---|---|---|---|--- | 12.31.24 | 12.31.24 | 12.31.24| 12.31.24| 12.31.24| 12.31.24 | 12.31.24 Capital employed| | | | | | | Net fixed capital:| 2,876| 447| 1,842| 5,807| 5,986| (5,628)| 11,330 \- Tangible assets| 2,635| 56| 1,473| 3,097| 296| (40)| 7,5 1 7 \- Intangible assets| 410| 436| 605| 2,728| 120| -| 4,299 \- Shareholdings and other non-current financial assets| 15| 8| 36| 1| 5,630| (5,590)| 100 \- Other non-current assets/liabilities | 17| (52)| 3| (56)| 19| 2| (67) \- Deferred tax assets| 218| 20| 124| 127| 60| -| 549 \- Provisions for risks, charges and liabilities for landfills| (402)| (13)| (357) | (52)| (30)| -| (854) \- Employee benefits| (17)| (8)| (42)| (38)| (109)| -| (214) Net Working Capital and Other Current Assets/Liabilities| (230)| 607| (81)| (104)| (69)| (9)| 114 Net Working Capital:| (406)| 711| (3)| 85| (79)| (31)| 277 \- Inventories | 200| -| 47| 64| 5| -| 316 \- Trade receivables| 1,830| 1,947| 358| 509| 79| (1,080)| 3,643 \- Trade payables| (2,436)| (1,236) | (408)| (488)| (163)| 1,049| (3,682) Other current assets/liabilities:| 176| (104) | (78)| (189)| 10| 22| (163) \- Other current assets/liabilities| 158| (98) | (73)| (188)| 91| 22| (88) \- Current tax assets/tax liabilities| 18| (6)| (5)| (1)| (81)| -| (75) Assets/Liabilities held for sale| -| -| -| 394| -| -| 394 Total Capital Employed| 2,646| 1,054| 1,761| 6,097| 5,917| (5,637)| 11,838 Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 49 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Letter to Shareholders and Stakeholders 2024 Corporate bodies 1 Key figures of the A2A Group 2 Consolidated results and report on operations 3 Scenario and market 4 Analysis of main sectors of activity 5 Sustainability Reporting 6 Sustainable finance 7 Evolution of legislation and impacts on the Business Units of the A2A Group 8 Risks and uncertainties 9 Other Information 10 Opinion Integrato EY Analysis of main sectors of activity A2A Integrated Report 2024 A2A 63 12.31.2023Millions of euro| Generation and Trading| Market| Waste| Smart Infrastructures| Corporate | Eliminations and adjustments| Total Group ---|---|---|---|---|---|---|--- | 12.31.23 | 12.31.23 | 12.31.23| 12.31.23| 12.31.23| 12.31.23 | 12.31.23 Capital employed| | | | | | | Net fixed capital:| 2,758| 237| 1,650| 4,584| 4,237| (3,899)| 9,567 \- Tangible assets| 2,499| 57| 1,356| 2,510| 261| (40)| 6,643 \- Intangible assets| 423| 388| 608| 2,105| 106| -| 3,630 \- Shareholdings and other non-current financial assets| 9| 14| 29| -| 3,890| (3,859)| 83 \- Other non-current assets/liabilities | 2| (209)| 2| (31)| 48| -| (188) \- Deferred tax assets| 236| 15| 35| 100| 78| -| 464 \- Provisions for risks, charges and liabilities for landfills| (391)| (20)| (334)| (57)| (26)| -| (828) \- Employee benefits| (20)| (8)| (46)| (43)| (120)| -| (237) Net Working Capital and Other Current Assets/Liabilities| (574)| 586| (30)| 27| (85)| (6)| (82) Net Working Capital:| (852)| 623| 13| 81| (85)| (26)| (246) \- Inventories | 208| -| 46| 64| 1| -| 319 \- Trade receivables| 1,838| 1,920| 340| 571| 81| (1,210)| 3,540 \- Trade payables| (2,898)| (1,297)| (373)| (554)| (167)| 1,184| (4,105) Other current assets/liabilities:| 278| (37)| (43)| (54)| -| 20| 164 \- Other current assets/liabilities| 267| (31)| (33)| (66)| 36| 20| 193 \- Current tax assets/tax liabilities| 11| (6)| (10)| 12| (36)| -| (29) Assets/Liabilities held for sale| -| -| -| -| -| -| - Total Capital Employed| 2,184| 823| 1,620| 4,611| 4,152| (3,905)| 9,485 50 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 2.11 Notes to the balance sheet It is noted that the consolidation scope as at December 31, 2024 changed compared to December 31, 2023 due to the following operations: • acquisition by A2A S.p.A. of 90% of the Duereti S.r.l., a company operating in electricity distribution, with consequent line-by-line consolidation; • acquisition by Acinque S.p.A. of 70% of Agesp Energia S.r.l., a company operating in the sale of electricity and gas, with consequent line-by-line consolidation; • acquisition by A2A Rinnovabili S.p.A. of 70% of the company Parco Friulano 2 S.r.l. with consequent line-by-line consolidation. The Group conducted a thorough analysis and concluded that the transaction do not meet the definition of a business combination; • acquisition by Agripower S.p.A. of 100% of Biomax Società Agricola a r.l., a company operating in the production of electricity from biogas, with consequent line-by-line consolidation; • acquisition by A2A Ambiente S.p.A. of the remaining 30% of the company A.S.R.A.B. S.p.A. operating in waste disposal; • incorporation of the company A2A Storage S.r.l. by A2A Rinnovabili S.p.A., which owns 100% of it, consolidated on a line-by-line basis; • incorporation of the company A2A Trezzo Ambiente S.r.l. held 86% by A2A Ambiente S.p.A. and 4% by A2A Calore & Servizi S.r.l. with consequent a line-by-line consolidation of the company. • incorporation of TEXELERA S.c. a r.l., held 51% by A2A S.p.A., with consequent line-by-line consolidation of the company; • sale of the company Tula Bioenergia Società Agricola a r.l. previously consolidated on a line-by-line basis; • de-registration of Proaris S.r.l. in liquidation, previously consolidated on a line-by-line basis following the completion of the liquidation process. The shares held in Tecnoacque Cusio S.p.A. and Consul System S.p.A., which were previously consolidated according to the equity method, were also sold. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 51 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Assets Non-current assets 1) Tangible assets millions of euro Balance at 12 31 2023 First-time consolid. effect Changes Balance at 12 31 2024 Capex Other changes Disposals and sales Write- downs/ Reversal Amort. Total changes Land 153 6 2 2 (1) 3 162 Buildings 603 17 19 (15) (1) (32) (29) 591 Plant and machinery 4,646 355 323 265 (3) (3) (414) 168 5,169 Industrial and commercial equipment 62 20 1 (12) 9 71 Other assets 154 28 33 (1) (36) 24 178 Landfills 12 4 (6) (2) 10 Construction in progress and advances 689 33 620 (328) (8) 284 1,006 Leasehold improvements 153 1 39 6 (41) 4 158 Assets for rights of use 171 2 38 (39) (1) 172 Total 6,643 414 1,051 6 (5) (12) (580) 460 7, 5 1 7 of which: Historical cost 15,094 414 1,051 543 (139) 1,455 16,963 Accumulated amortization ( 7,6 1 5 ) (537) 134 (580) (983) (8,598) Write-downs (836) (12) (12) (848) “Tangible assets” at December 31, 2024 amounted to 7,517 million euro (6,643 million euro at December 31, 2023) and included, for 414 million euro, the effect of the first-time consolidations following the acquisitions of the companies Parco Solare Friulano 2 S.r.l., Agesp Energia S.r.l. and Duereti S.r.l.. The changes in the period recorded an increase totaling 460 million euro as follows: • increase of 1,051 million euro for capex in the year as further described below; • decrease of 580 million euro for the depreciation charge for the year; • decrease of 12 million euro as a result of write-downs made during the year on assets no longer considered functional to the A2A Group’s business; • net increase for other changes of 6 million euro due to the decrease of 40 million euro following contributions on investments in previous years, the increase in rights of use in application of the IFRS16 accounting principle for 38 million euro, the increase of 15 million euro for decommissioning, the decrease of 4 million euro for tax credits for investments in new capital goods provided for by Law no. 178/2020, art. 1 paragraph 1051, the decrease of 2 million euro for the exit from the consolidation scope due to the sale of Tula Bioenergia, the increase of 2 million euro for environmental landfills, the decrease of 1 million euro due to the reclassification to assets held for sale, the decrease of 1 million euro for the change in supplier advances, as well as the decrease of 1 million euro for reclassification to other balance sheet items; • decrease of 5 million euro following disposals in the year, net of the related depreciation fund. 52 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Capex may be analyzed as follows: • for the Smart Infrastructures Business Unit, capex amounted to 399 million euro and concerned: for 256 million euro interventions on electricity distribution systems, the expansion and renovation of the medium and low voltage network, as well as the installation of new electronic meters, 101 million euro for the development of district heating networks, 11 million euro for interventions on the fiber optic network and equipment, 10 million euro for interventions on the electric vehicle charging network, 10 million euro for the Efficiency plan with new LED technology light sources, 6 million euro for interventions on the gas transport network, 3 million euro for the implementation of telecommunications equipment, as well as 2 million euro for the purchase of specific equipment for the integrated water service; • for the Generation and Trading Business Unit, the increase was 351 million euro related to: 241 million euro in investments in thermoelectric power plants, 83 million euro in investments in renewable energy plants, 27 million euro in investments in hydroelectric power plants; • for the Waste Business Unit, capex amounted to 249 million euro and refer to: 193 million euro for work on the Group’s waste treatment and disposal plants; 44 million euro for the acquisition and set- up of mobile means for waste collection and 12 million euro for the acquisition of collection facilities; • for the Corporate Business Unit, capex, amounting to 45 million euro, primarily concerned: 42 million euro for interventions on buildings in the areas of Milan, Brescia, Como, Monza Brianza, Lecco, and Cremona, and 3 million euro for the implementation of telecommunication equipment; • for the Market Business Unit, the increase was 7 million euro and concerned: 6 million euro for the energy efficiency plan at customer premises, and 1 million euro for work on the electric vehicle recharging network. Tangible assets include “Assets for rights of use” totaling 172 million euro (171 million euro at December 31, 2023), recognized in accordance with IFRS16 and for which the outstanding payable to lessors at December 31, 2024 amounted to 174 million euro (177 million euro at December 31, 2023). Below is a breakdown of “Assets for rights of use” deriving from operating and financial leases at December 31, 2024. millions of euro Balance at 12 31 2023 First-time consolid. effect 2024 Changes Balance at 12 31 2024 Other changes Amort. Total changes Land 30 - 20 (6) 14 44 Buildings 59 - 13 (14) (1) 58 Plant and machinery 4 1 10 (2) 8 13 Industrial, commercial equipment and other goods 34 - (17) (6) (23) 11 Vehicles 44 1 12 (11) 1 46 Total 171 2 38 (39) (1) 172 It is specified that the Group has made use of the option provided for in paragraph 6 of the standard not to apply the provisions of paragraphs 22 to 49 of the standard to the following categories: a) Short-term leases; b) Leases whose underlying assets are of low value. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 53 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 2) Intangible assets millions of euro Balance at 12 31 2023 First-time consolid. effect Changes Balance at 12 31 2024 Capex Recl./ Other changes Disposals/ Sales Write- downs Amort. Total changes Industrial patent and intellectual property rights 49 17 3 (27) (7) 42 Concessions, licenses, trademarks and similar rights 2,123 24 306 (374) (4) (1) (200) (273) 1,874 Goodwill 846 907 1,753 Assets in progress 139 71 (28) (1) 42 181 Other intangible assets 473 17 67 (31) (77) (41) 449 Total intangible assets 3,630 948 461 (430) (4) (2) (304) (279) 4,299 “Intangible assets” at December 31, 2024 amounted to 4,299 million euro (3,630 million euro at December 31, 2023) and included the effect of first-time consolidations of 948 million euro, following the acquisitions of the companies Parco Solare Friulano 2 S.r.l., Agesp Energia S.r.l. and Duereti S.r.l.. Through the application of IFRIC 12, from financial year 2010 intangible assets also include assets in concession, which relate to gas distribution. The changes for the period, net of the above effect, recorded an overall decrease of 279 million euro as follows: • increase of 461 million euro for Capex made in the period as further described below; • net decrease of 430 million euro for other changes due to the decrease of 385 million euro due to the reclassification to assets held for sale, the decrease of environmental certificates of the industrial portfolio for 32 million euro, the decrease of 8 million euro following contributions on investments in previous financial years, the decrease of 3 million euro for tax credits for investments in new capital goods provided for by Law no. 178/2020, art. 1 paragraph 1051, the decrease of 2 million euro for reclassification to other balance sheet items; • decrease of 304 million euro for the depreciation charge for the period; • decrease of 4 million euro arising from disposals in the period, net of accumulated depreciation; • decrease of 2 million euro due to write-downs on projects that are no longer functional for the Group. Capex of “Intangible assets” relate to the following: • for the Smart Infrastructures Business Unit, investments amount to 261 million euro and concern: 132 million euro for development and maintenance work on the gas distribution plants and the replacement of low and medium pressure underground piping, 87 million euro for work on the water transport and distribution network, on the sewage networks and the purification plants, 40 million euro for the implementation of information systems, and 2 million euro for design costs mainly due to the development of new plants and operational technical activities for gas tenders; • for the Market Business Unit, the increase is 108 million euro: 64 million euro for the capitalization of costs incurred for managing contracts with customers following the application of the IAS IFRS15 standard, and 44 million euro for the implementation of information systems; • for the Corporate Business Unit, capex amounting to 67 million euro mainly concerned the implementation of information systems. • for the Generation and Trading Business Unit, the increase was 19 million euro and concerned: 15 million euro for the implementation of information systems, 4 million euro for design costs mainly due to the development of new renewable energy and telecommunications plants; • for the Waste Business Unit, capex amounting to 6 million euro mainly concerned the implementation of information systems. 54 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements The item “Other intangible assets” amounted to 449 million euro at December 31, 2024 (473 million euro at December 31, 2023) and includes: • 316 million euro for Customer lists related to the acquisition of customer portfolios by Group companies. These values are amortized based on an estimate of the benefits that will arise in future years, taking into account indicators such as the retention rate and churn rate relating to specific types of customers. In particular, the amount present in the financial statements is attributable for 92 million euro to the company A2A Ambiente S.p.A., for 91 million euro to the company A2A Energia S.p.A., for 85 million euro to the Acinque Group, for 32 million euro to the AEB Group, for 8 million euro to the company Yada Energia S.r.l., for 7 million euro to the company ASM Energia and for 1 million euro to A2A S.p.A. and Aprica S.p.A.; • 75 million euro for PPA Società Rinnovabili: the increase in value is linked to the existing agreement with the Energy Services Operator, which allows the affiliated companies to benefit from incentive tariffs for a period of 20 years, which are considerably higher than those existing on the market; • 50 million euro relating mainly to deferred charges and costs and surface rights and/or easements; • 6 million euro for PPA of the Agripower group: the increase in value is linked to the existing agreement with the Energy Services Manager, which allows the affiliated companies to benefit from incentive tariffs, which are considerably higher than those existing on the market; • 2 million euro for Environmental Certificates: emission quotas and White Certificates (Industrial portfolio). Impairment testing in accordance with IAS 36 on the carrying amount of goodwill and tangible and intangible assets The objective of the impairment test required by IAS 36 is to ensure that the carrying amount of assets does not exceed their recoverable value. Impairment testing is carried out whenever there is an indication that an asset may be impaired, while goodwill, which is not amortized on a systematic basis, must be tested for impairment at least on an annual basis, regardless of whether there is any indication of impairment. A Cash Generating Unit (CGU) is defined as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The definition of a CGU depends essentially on the type of activity carried out by the CGU, the business sector in which it operates and a company’s organizational structure. The impairment test consists of comparing the carrying amount with an estimate of the recoverable value of that Cash Generating Unit. The recoverable value of Cash Generating Unit is the higher of its fair value less costs to sell and its value in use. The fair value, net of selling costs, of a Cash Generating Unit is the amount, based on the best information available, that would be obtainable from the sale of the unit in a bargained transaction between knowledgeable, willing parties. For “value in use” of a Cash Generating Unit, account was taken, for non-regulated businesses, of the current value of the estimated future cash flows, which are supposed to derive from the continuous use of the Cash Generating Unit and its disposal at the end of its useful life. For regulated businesses, in the specific case for the “A2a Reti Gas” CGU on the other hand, the value in use was defined on the basis of the estimated VIR (Residual Industrial Value). The projection of the cash flows relating to each Cash Generating Unit was carried out by the company management based on reasonable and sustainable assumptions, such as to reflect the value of the Cash Generating Unit in its current conditions and with a view to maintaining normal company operating conditions. The industrial plan, approved by the Board of Directors on November 11, 2024, continues to uphold the Group’s industrial growth targets as outlined in the March 2024 Plan. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 55 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report In particular, the Plan is based on two main trends, Circular Economy and Energy Transition, to which all the Group’s Business Units contribute: in the coming years, objectives will be pursued mainly aimed at recovering waste heat, closing the waste cycle, decarbonization and electrification of consumption. The main targets identified in the 2024-2035 Strategic Plan are: • 22 billion euro of investments, of which: • 6 billion euro for the Circular Economy • 16 billion euro for Energy Transition • Eligible capital expenditures in relation to the European Taxonomy: an average of about 75% throughout the Plan period • EBITDA: 2.4 billion euro by 2027 and 3.3 billion euro at the end of the Plan period • Ordinary net profit of 0.7 billion euro in 2027 and over 1 billion euro by 2035 • NFP/EBITDA never over 2.7x over plan • the Group’s commitment to maintain its current rating is confirmed. For the sole purpose of the impairment test, the 2024-2035 Strategic Plan, in line with the provisions of IAS 36 paragraph 33 1 , has been appropriately amended to exclude the impact of future improvements and optimizations, as described in more detail below. In particular, the calculation of value in use excluded EBITDA and CAPEX amounts related to extraordinary transactions/M&A and developments in the pipeline. The Energy Scenario (PUN, PSV and EUA and other quantities relating to energy markets) and the assumptions relating to climate change (hydraulicity and degree days) underlying the business plan already reflect the scenarios that management considers most probable. Consequently, the plan used for the purposes of the impairment test natively includes the effects related to climate change, not only in the investment projections but also in the economic projections, in order to also reflect recent events in terms of, for example, temperatures and hydraulicity. The technical support for the impairment test was entrusted to an independent expert who, among other things: • analyzed the relevant components and hypotheses of the economic-financial projections drawn up by the Group’s management, carried out comparisons and checks regarding the correctness of the sources and hypotheses used, developed the hypotheses regarding the growth rate beyond the Plan horizon for the determination of the normalized flows up to the end of the useful life of the plants; • estimated the discount rate consistent with the cash flows considered, i.e. post-tax weighted average cost of capital (WACC). In detail, the WACC rate used was estimated according to the criteria widely used in valuation practice and in line with last year’s impairment exercise in order to reflect current market valuations with reference to the current value of money, country risk and the specific risks associated with the activity; • provided assistance in preparing specific sensitivity analyses that considered macroeconomic variables, Energy Scenario, and Climate Change factors such as GDP per capita, production price index, electricity price, gas price, degree days, and average rainfall through the development of bespoke econometric and statistical models for the most exposed CGUs (Generazione Termoelettrica, Generazione Rinnovabili and Calore). 1 which requires “b) basing cash flow projections on the most recent budget/forecast approved by management, however excluding any future cash inflows or outflows estimated to arise from future restructuring or improvements or optimizations in business performance. Projections based on these budgets/forecasts must cover a maximum period of five years, unless a longer time frame can be justified”. 56 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Goodwill At December 31, 2024, goodwill amounted to 1,753 million euro: millions of euro Balance at 12 31 2023 First-time consolid. acquisitions 2024 PPA Effect Changes Balance at 12 31 2024 Reclass./ Other Changes Write- downs Total changes CGU: A2A Ambiente 473 \- 473 A2A Reti Gas 41 - 41 A2A Gas 74 7 7 81 A2A Calore 24 3 3 27 A2A Vendita Energia Elettrica 7 2 2 9 A2A Generazione Rinnovabili 227 \- 227 Total 846 \- 12 - - 12 858 First-time consolidation effect Duereti S.r.l. 890 890 890 Agesp Energia S.r.l. 20 (20) \- - Biomax a r.l. 5 5 5 Total \- 915 (20) - - 895 895 Total Goodwill 846 915 (8) - - 907 1,753 During the year 2024, the A2A Group completed the following transactions: • acquisition by A2A S.p.A. of 90% of the Duereti S.r.l., a company operating in electricity distribution. The acquisition of the shareholding resulted in the recognition of goodwill for 890 million euro. This acquisition is part of the provision of IFRS 3 and at December 31, 2024, the Purchase Price Allocation has not yet been completed, but will be completed in the timing envisaged by the standard; • acquisition by Acinque S.p.A. of 70% of Agesp Energia S.r.l., a company operating in the electricity and gas sale sector and in the district heating sector. The acquisition of the shareholding resulted in the recognition of goodwill for 20 million euro. This goodwill was restated in line with IFRS 3 through the Purchase Price Allocation process, resulting in an allocation of 16 million euro to intangible assets, 7 million euro to CGU Gas, 3 million euro to CGU Calore, and 2 million euro to CGU Electricity Sales upon completion of the analysis; • acquisition by Agripower S.p.A. of 100% of Biomax Società Agricola a.r.l., a company operating in the production of electricity from biogas. The acquisition of the shareholding resulted in the recognition of goodwill for 5 million euro. This acquisition is part of the provision of IFRS 3 and at December 31, 2024, the Purchase Price Allocation has not yet been completed, but will be completed in the timing envisaged by the standard. Since goodwill does not generate independent cash flows and cannot be sold separately, the impairment testing of recognized goodwill is carried out in a residual manner by referring to the Cash Generating Unit to which it may be reasonably allocated. It is important to point out that, when compared to the total sum listed in the financial statements, the goodwill resulting from the acquisitions of Duereti S.r.l., Agesp Energia, and Biomax a r.l. has not been subjected to testing, due to the reasons previously mentioned. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 57 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report The following table shows the tested goodwill values. CGU with Goodwill Value inmillionsof euro at 12 31 2024| Recoverable Value| WACC 2024post-tax(1)| Growth rate g2024| Balance scenario (2)WACC of reference (3)Growth rate g ---|---|---|---|--- A2A Ambiente 473| Use value| 6.8%| 0.0%| 11.8%| 0.0% A2A Reti Gas 41| Use value| n.a.| 0.0%| n.a.| n.a. A2A Gas 74| Use value| 6.7%| 0.0%| 54.7%| 0.0% A2A Generazione Rinnovabili 227| Use value| 5.9%| 0.0%| 13.9%| 0.0% A2A Calore 24| Use value| 5.6%| 0.0%| 5.7%| 0.0% A2A Vendita Energia Elettrica 7| Use value| 6.7%| 0.0%| 12.5%| 0.0% Total 846| | | | | (1) Nominal post-tax discount rate applied to future cash flows. (2) Rates resulting from the sensitivity assessment made by the expert in order to achieve balance between the use values and carrying amounts subjected to impairment testing. (3) The simulation was performed on the WACC rate of reference, with the simultaneous adjustment of the terminal flow rate (if applicable). CGU with Goodwill | Value inmillionsof euro at 12 31 2023| Recoverable Value| WACC 2024post-tax(1)| Growth rate g2023| Balance scenario (2)WACC of reference (3)Growth rate g ---|---|---|---|---|--- A2A Ambiente | 473| Use value| 7.1 %| 0.0%| 9.7%| 0.0% A2A Reti Gas | 41| Use value| n.a.| 0.0%| n.a.| n.a. A2A Gas | 74| Use value| 7.0 %| 0.0%| 34.6%| 0.0% A2A Generazione Rinnovabili| 227| Use value| 6.5%| 0.0%| 19.8%| 0.0% A2A Calore | 24| Use value| 5.7%| 0.0%| 5.9%| 0.0% A2A Vendita Energia Elettrica| 7| Use value| 7.0 %| 0.0%| 16.9%| 0.0% Total | 846| | | | | (1) Nominal post-tax discount rate applied to future cash flows. (2) Rates resulting from the sensitivity assessment made by the expert in order to achieve balance between the use values and carrying amounts subjected to impairment testing. (3) The simulation was performed on the WACC rate of reference, with the simultaneous adjustment of the terminal flow rate (if applicable). Regarding the previously mentioned CGUs, the impairment test was conducted in the following manner: • for the “Generazione Rinnovabili” CGU, the test was conducted by comparing the recoverable value determined on the basis of the defined useful life scenario; • for the “A2A Reti Gas” CGU, the analysis was carried out by comparing the recoverable value determined on the basis of the VIR estimate, as it is the best approximation of the expected cash flows of the gas distribution assets; • for the “A2A Calore”, “A2A Gas”, “A2A Ambiente” , and the “Vendita Energia Elettrica” CGUs, the analysis was conducted by comparing the recoverable value determined on the basis of the indefinite useful life scenario. “A2A Ambiente” Cash Generating Unit The “A2A Ambiente” Cash Generating Unit operates in the solid urban waste segment and in the special and hazardous waste segment, performs collection and street sweeping activities in the municipalities of Milan, Brescia, Bergamo, Lodi and Como and in a number of municipalities of the relative provinces, is the owner of waste-to-energy and industrial plants (in the municipalities of Milan, Brescia, Bergamo, Filago, Corteolona, Cremona, Parona and Como) and manages the Acerra waste-to-energy plant. It also has several waste treatment plants and a number of landfills. 58 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements The A2A Group’s consolidated financial statements at December 31, 2024 include goodwill of 473 million euro associated with this CGU. Of this goodwill, 227 million euro arises from the acquisition of the Ecodeco Group between 2005 and 2008 (the former Ecodeco Cash Generating Unit), 5 million euro from the merger between ASM Brescia S.p.A. (subsequently incorporated into AEM S.p.A., with simultaneous change of its name into A2A S.p.A.) and BAS S.p.A., 30 million euro as the residual value of the goodwill of the former LGH Group at the end of the PPA process for the acquisition of 51% of the Group, 2 million euro to the allocation to the CGU in 2019 of a residual portion of the goodwill recorded following the consolidation of the Acinque Group and 5 million euro as residual goodwill at the conclusion of the PPA activity for the acquisition of the company Electrometal S.r.l. (merged by incorporation at December 31, 2023 into A2A Ambiente S.p.A.) and 204 million euro as goodwill recognized upon completion of the PPA process for the acquisition of TecnoA (merged by incorporation at December 31, 2023 into A2A Ambiente S.p.A.). In determining the value in use, an indefinite useful life scenario was considered. No impairment loss was noted during the impairment testing as the recoverable value exceeds the net capital employed including the value of goodwill recorded. In conclusion, in addition to the sensitivity analyses highlighted in the previous tables focused on equilibrium scenarios, further analyses were conducted, which demonstrated that, keeping all other factors constant, a 0.25% increase/decrease in WACC confirms recoverable values higher than the accounting values. “A2A Reti Gas” Cash Generating Unit The “A2A Reti Gas” CGU includes the Group’s gas distribution and metering activities. In particular, it deals with the design and construction of gas networks, their operation and maintenance, as well as the management of requests for connection and quality control and continuity of service. The goodwill of 41 million euro associated to the “A2A Reti Gas” CGU arises mainly from various acquisitions made by A2A Reti Gas S.p.A. (now Unareti S.p.A.) over the last few years, relating to companies operating as gas distributors in about 200 Italian municipalities (the activity is mainly concentrated in Lombardy and Piedmont) for 38 million euro as well as 3 million euro from the allocation to the CGU in 2019 of a portion of the goodwill recorded following the consolidation of the Acinque Group. The recoverable value of the goodwill attributed to the “A2A Reti Gas” Cash Generating Unit was determined on the basis of the VIR estimate, considering as a starting point the value of the RAB (Regulatory Asset Base). No impairment loss was noted during the impairment testing as the recoverable value exceeds the net capital employed including the value of goodwill recorded. “A2A Gas” Cash Generating Unit The goodwill arising from the consolidation of the “A2A Gas” Business Unit, amounting to 74 million euro, refers to the area involved in selling gas to end customers (residential and business) and wholesalers and was impairment tested. It should be noted that the “A2A Gas” Cash Generating Unit consists of the portion of goodwill arising from the merger between BAS S.p.A. and A2A S.p.A. for 7 million euro, for 24 million euro of the allocation to the CGU in 2019 of a portion of the goodwill recorded following the consolidation of the Acinque Group, and for 43 million euro of a portion of goodwill allocated to the CGU following the consolidation of the AEB Group. The recoverable value of the goodwill attributed to the CGU during the impairment test, was determined by considering an indefinite useful life scenario. No impairment loss was noted during the impairment testing as the recoverable value exceeds the net capital employed including the value of goodwill recorded. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 59 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report In conclusion, in addition to the sensitivity analyses highlighted in the previous tables focused on equilibrium scenarios, further analyses were conducted, which demonstrated that, keeping all other factors constant, a 0.25% increase/decrease in WACC confirms recoverable values higher than the accounting values. “A2A Calore” Cash Generating Unit The goodwill arising from the consolidation of the “A2A Calore” CGU, amounting to 24 million euro, is held by a number of companies of the A2A Group active in the production, distribution and sale of district heating. In particular, the CGU in question primarily consists of 21 million euro for a part of the goodwill arising from the merger between BAS S.p.A. and A2A S.p.A., 1 million euro for the allocation to the CGU in the 2019 financial year of a portion of the goodwill recorded following the consolidation of the Acinque Group and 2 million euro for the allocation to the CGU of the goodwill generated from the acquisition during the previous financial year of the company Termica Cologno S.r.l.. The recoverable value of goodwill attributed to the “A2A Calore” CGU during the impairment test, was determined on the basis of an indefinite useful life scenario. No impairment loss was noted during the impairment testing as the recoverable value exceeds the net capital employed including the value of goodwill recorded. As mentioned before, the independent expert for this CGU has prepared a sensitivity analysis based on the development of econometric and statistical models. This simulation yielded a 51% probability of cover and a 49% probability of impairment loss. In conclusion, in addition to the sensitivity analyses highlighted in the previous tables focused on equilibrium scenarios, further analyses were conducted, which demonstrated that, keeping all other factors constant, a 0.25% increase/decrease in WACC leads to values between -44 million euro and +57 million euro. “Generazione Rinnovabili’’ Cash Generating Unit The activity of the “Generazione Rinnovabili”’ Cash Generating Unit relates to the management of the Group’s hydroelectric, photovoltaic and wind power plants and the consequent production of electricity. The total installed capacity is about 2.5 GW. The goodwill arising from the consolidation of the “Generazione Rinnovabili’’ Cash Generating Unit, amounting to 227 million euro, refers for 65 million euro to the allocation of goodwill generated from the acquisition of the Octopus Renewables portfolio, for 17 million euro to the allocation of goodwill, upon completion of the PPA process, for the acquisition of the Rovere portfolio, for 144 million euro to the goodwill allocated for the acquisition of the Ellisse portfolio, and for the remaining part to the allocation to the CGU of a portion of the goodwill recognized as a result of the consolidation of the Acinque Group, carried out in 2019. The recoverable value of the goodwill attributed to the CGU during the impairment test, was determined by considering a definite useful life scenario. No impairment loss was noted during the impairment testing as the recoverable value exceeds the net capital employed including the value of goodwill recorded. As mentioned before, the independent expert for this CGU has prepared a sensitivity analysis based on the development of econometric and statistical models. This simulation yielded a 100% probability of cover. In conclusion, in addition to the sensitivity analyses highlighted in the previous tables focused on equilibrium scenarios, further analyses were conducted, which demonstrated that, keeping all other factors constant, a 0.25% increase/decrease in WACC confirms recoverable values higher than the accounting values. 60 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements “Vendita Energia Elettrica” Cash Generating Unit The “Vendita Energia Elettrica” Cash Generating Unit is active in the retail sale of electricity to customers in the free market and does not include the activities of the Greater Protection service 2 . The goodwill arising from the consolidation of the “Vendita Energia Elettrica” Cash Generating Unit, amounting to 7 million euro, refers to the allocation to the CGU of a portion of the goodwill recorded following the consolidation of the AEB Group, the results of which were consolidated in 2020. The recoverable value of the goodwill attributed to the CGU during the impairment test, was determined by considering an indefinite useful life scenario. No impairment loss was noted during the impairment testing as the recoverable value exceeds the net capital employed including the value of goodwill recorded. In conclusion, in addition to the sensitivity analyses highlighted in the previous tables focused on equilibrium scenarios, further analyses were conducted, which demonstrated that, keeping all other factors constant, a 0.25% increase/decrease in WACC confirms recoverable values higher than the accounting values. “Generazione Termoelettrica” Cash Generating Unit Even though the “Generazione Termoelettrica” CGU does not include goodwills, it was subject to impairment testing due to a 25% decrease in production compared to December 31, 2023. The activity of the “Generazione Termoelettrica” Cash Generating Unit is aimed at the production of electricity from gas-fired thermoelectric power plants (CCGT). The A2A Group operates CCGT plants with a total installed capacity of 6.9 GW. This CGU had been impaired in previous years. The value in use of this CGU was determined from a single indefinite useful life scenario. For the purposes of the impairment test on the carrying amount of tangible assets relating to the “Generazione Termoelettrica” CGU, the Enterprise Value of the assets (Value in Use) was compared with the relative Carrying Amount at December 31, 2024. No impairment loss was identified during the impairment test as the recoverable value is higher than the net capital employed. 2 The Greater Protection service applies to customers with low-voltage domestic utilities, utilities for other non-domestic uses and public lighting (in other words, small businesses connected to a low voltage supply, with less than 50 employees and annual turnover < 10 million euro). This category includes all users who have not selected the so-called Free Market and ended up without a supplier. The Greater Protection service guarantees the supply of electricity at prices established by ARERA (Regulation Authority for Energy Networks and Environment). Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 61 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report In this context, it is noteworthy that the CGU has not been subject to value restoration, as the previously depreciated plants were independently tested, revealing that the recoverable value aligns with the respective net invested capital. CGU12 31 2024| Recoverable Value| WACC 2024post-tax(1)| Balance scenario (2) ---|---|---|--- | | | WACC of reference (3) Generazione Termoelettrica CGU| Use value| 6.7%| 9.6% CGU12 31 2023| Recoverable Value| WACC 2023post-tax(1)| Balance scenario (2) | | | WACC of reference (3) Generazione Termoelettrica CGU| Use value| 7.3 %| 8.1% (1) Nominal post-tax discount rate applied to future cash flows. (2) Rates resulting from the sensitivity assessment made by the expert in order to achieve balance between the use values and carrying amounts subjected to impairment testing. (3) The simulation was performed on the WACC rate of reference, with the simultaneous adjustment of the terminal flow rate (if applicable). As mentioned before, the independent expert for this CGU has prepared a sensitivity analysis based on the development of econometric and statistical models. This simulation yielded a 80% probability of cover and a 20% probability of impairment loss. In conclusion, in addition to the sensitivity analyses highlighted in the previous tables focused on equilibrium scenarios, further analyses were conducted, which demonstrated that, keeping all other factors constant, a 0.25% increase/decrease in WACC confirms recoverable values higher than the accounting values. 62 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 3) Shareholdings and other non-current financial assets millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Changes | Balance at12 31 2024| of which included in the NFP12 31 2023 12 31 2024 ---|---|---|---|---|--- Shareholdings carried according to equity method| 30 | -| (5)| 25 | \- | \- Other non-current financial assets| 67 | 1 | 20 | 88 | 14 | 13 Total shareholdings and other non-current financial assets| 97 | 1 | 15 | 113 | 14 | 13 The following table provides details of the changes in the value of “Shareholdings carried according to equity method”: Shareholdings carried according to equity method millions of euro| Total ---|--- Balance at 12 31 2023 | 30 First-time consolidation effect acquisitions 2024| Changes: | \- acquisitions and capital increases | \- valuations at equity | 2 \- write-downs | \- reversals | \- dividends received from shareholdings in companies carried at equity | (1) \- sales and decreases | (7) \- other changes | 1 \- reclassifications | Total changes | (5) Balance at 12 31 2024 | 25 The value of “Shareholdings in companies carried according to equity method” amounted to 25 million euro, down 5 million euro compared to the previous year due to the sale of 49% of the shareholding in Consul System S.p.A. and 25% of the shareholding in Tecnoacque Cusio S.p.A. for a total of 7 million euro, the collection of dividends for 1 million euro and revaluations of 3 million euro mainly related to the shareholdings in Netcity S.r.l., Metamer S.r.l., and F.lli Omini S.r.l.. With reference to this item, no critical issues have emerged and there are no elements that constitute a loss indicator such as to require specific verifications on the recoverability of assets. The details of the shareholdings are provided in annex no. 2 “List of shareholdings carried according to equity method”. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 63 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report At December 31, 2024, “Other non-current financial assets” showed a balance of 88 million euro, an increase of 21 million euro, of which 1 million euro related to the first-time consolidations and 20 million euro to changes for the fiscal year, compared to the figure at December 31, 2023 referring to: • increase of 11 million euro for investments in innovative start-ups through Corporate Venture Capital projects. The variation takes into account the fair-value assessment as of December 31, 2024, amounting to 9 million euro. The balance of the item amounts to 35 million euro (24 million euro as of December 31, 2023); • increase of 11 million euro for advance payments on participations for future projects for the development of power generation plants from renewable sources, which amounted to 23 million euro as at December 31, 2024 (12 million euro at December 31, 2023); • decrease of 1 million euro in receivables from the Municipality of Brescia related to the management of public lighting in application of IFRIC 12, which amounted to 4 million euro at December 31, 2024 (5 million euro at December 31, 2023); • decrease of 1 million euro for the settlement of the financial receivable from the associate Netcity S.r.l. (1 million euro at December 31, 2023). As of December 31, 2024, the “Other non-current financial assets” refer, in addition to the cases mentioned above, to 15 million euro to the request for deposit in a specific current account of the sums subject to seizure by the Court of Taranto in the ongoing proceedings against the subsidiary Linea Ambiente S.r.l., to 8 million euro to medium/long-term financial credits, relating to loans to third parties, which include credits for 6 million euro for the management of the Cedrasco biocube plant by the subsidiary Bioase S.r.l. in application of IFRIC 12, to 2 million euro to interest-bearing loans to third parties, and to 2 million euro to investments in other companies, for which please refer to Annex no. 3 “List of investments in other companies”. 4) Deferred tax assets millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Net changesof the year| Balance at12 31 2024 ---|---|---|---|--- Deferred tax assets| 464 | 10 | 75| 549 “Deferred tax assets” amounted to 549 million euro (464 million euro at December 31, 2023) and show an increase of 85 million euro, of which 10 million euro refers to the first-time consolidations and 75 million euro refers to the change in the period relating to the registration of net deferred tax assets. In the course of the 2024 financial year, the option was exercised for the tax exemption regime concerning the increased accounting values identified in the Purchase Price Allocation (PPA) process and assigned to the assets, as specified below: • “ordinary exemption regime” according to Article 176, paragraph 2-ter of the TUIR for the alignment of the increased values attributed to the customer list; • “derogatory exemption regime” in accordance with Article 15, paragraphs 10 onwards of Legislative Decree No. 185/2008 for the alignment of elevated values designated to goodwill. As a result of this exemption process and following the payment of a substitute tax amounting to 49 million euro, IRES/IRAP deferred tax assets totaling 58 million euro were recognized for the increased values in goodwill, while IRES/IRAP deferred tax liabilities amounting to 28 million euro were released for the increased values of the customer lists. The item includes the net effect, as detailed in the table below to which reference is made, of deferred tax liabilities and deferred tax assets for IRES and IRAP on changes and provisions made solely for tax purposes. The recoverability of “Deferred tax assets” recorded in the financial statements is considered likely, as the future plans envisage future taxable income sufficient to use the deferred tax assets. 64 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements At December 31, 2024, the amounts relative to deferred tax assets/deferred tax liabilities have been expressed as net (“offsetting”) as per IAS 12 standards. The following table sets out the main deferred tax assets and liabilities. Detail of deferred tax assets and liabilities| Consolid.financial statements 12 31 2023| First-time consolid. effect acquisitions2024| Provisions (A) | Uses (B) | Rateadjustments (C)| Other (D) | TOTAL (A+B+C+D) | Adjustment to net equity| Othermovements/Reclass.| Consolid.financial statements 12 31 2024 ---|---|---|---|---|---|---|---|---|---|--- Deferred tax liabilities| | | | | | | | | | Value differences of tangible assets| 296| 5| -| (17)| -| -| (17)| 2| -| 286 Application of the finance lease standard (IFRS 16)| -| -| -| -| -| -| -| -| -| - Application of the financial instrument standard (IFRS 9)| -| -| -| -| -| -| -| -| -| - Value differences of intangible assets| 74| -| -| (37)| -| -| (37)| -| -| 37 Deferred capital gains| -| -| -| -| -| -| -| -| -| - Employee leaving entitlement (TFR)| 2| -| -| -| -| -| -| -| -| 2 Goodwill | 6| -| -| (2)| -| -| (2)| -| -| 4 Other deferred tax liabilities| 7| -| 8| (15)| -| -| (7)| 3| -| 3 Total deferred tax liabilities (A)| 385| 5| 8| (71)| -| -| (63)| 5| -| 332 Deferred tax assets | | | | | | | | | | Taxed risk provisions | 157| 1| 20| (20)| -| -| -| (2)| -| 156 Value differences of tangible assets| 423| 14| 14| (21)| -| -| (7)| -| -| 430 Application of the financial instrument standard (IFRS 9)| (18)| -| -| -| -| -| -| -| 18| - Bad debts provision | 44| -| 20| (21)| -| -| (1)| -| -| 43 Value differences of intangible assets | 8| -| -| (1)| -| -| (1)| -| -| 7 Grants | 16| -| -| (1)| -| -| (1)| -| -| 15 Goodwill | 146| -| 58| (14)| -| -| 44| -| (18)| 172 Other deferred tax assets| 73| -| 6| (23)| (1)| -| (18)| 2| 1| 58 Total deferred tax assets (B) | 849| 15| 118| (101)| (1)| -| 16| -| 1| 881 NET EFFECT DEFERRED TAX ASSETS/LIABILITIES (B-A)| 464| 10| 110| (30)| (1)| -| 79| (5)| 1| 549 Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 65 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 5) Other non-current assets millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| ChangesBalance at12 31 2024of which included in the NFP12 31 2023 12 31 2024 ---|---|---|--- Other non-current assets| 136 | 1 | (9)| 128 | \- | \- Non-current derivatives| 2 | -| \- | 2 | 2 | 2 Total other non-current assets| 138 | 1 | (9)| 130 | 2 | 2 “Other non-current assets” decreased by 8 million euro compared to December 31, 2023, net of the increase of 1 million euro related to first-time consolidations. The 9 million euro change for the fiscal year primarily comprises a 21 million euro decrease in security deposits, a 3 million euro reduction in credits for prior items linked to water service revenues, an 8 million euro reduction in credits for gas purchase cost adjustments, a 19 million euro increase in credits to the tax authorities for tax benefits from construction bonuses expiring beyond the following year, and other decreases of 4 million euro. “Non-current derivative instruments” amounted to 2 million euro and refer to interest rate hedging instruments. 66 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Current assets 6) Inventories millions of euro| Balance at12 31 2023First-time consolid. effect acquisitions2024| Changes of the year| Balance at12 31 2024 ---|---|---|--- \- Materials | 138 7 | 2 | 147 \- Material obsolescence provision | (25) | (2)| (27) Total materials | 113 7 | \- | 120 \- Fuel | 199 | (5)| 194 \- Others | 5 | (3)| 2 Raw and ancillary materials and consumables| 317 7 | (8)| 316 Third-party fuel | 2 | (2)| - Total inventories| 319 7 | (10)| 316 “Inventories” amounted to 316 million euro (319 million euro at December 31, 2023), net of the related obsolescence provision for 27 million euro (25 million euro at December 31, 2023). The inventories reflect an overall reduction of 3 million euro, which includes a 7 million euro uplift due to first consolidation effects and a reduction of 10 million euro owing to changes during the year as outlined below: • 5 million euro related to the decrease in fuel oil stocks used for electricity generation, partially offset by the increase in volumes of stored gas; • further decreases amounting to 2 million euro in third-party fuels; • other decreases amounting to 3 million euro. The gas inventory of the industrial portfolio is deemed recoverable based on the forward curves for the fiscal year in which its provision is planned. 7) Trade receivables millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Changes of the year| Balance at12 31 2024 ---|---|---|---|--- Trade receivables – invoices issued | 1,807| 20| (54)| 1,773 Trade receivables – invoices to be issued| 1,973| | 173| 2,146 (Bad debts provision) | (240)| (4)| (32)| (276) Total trade receivables| 3,540| 16| 87| 3,643 As of December 31, 2024, “Trade receivables” amounted to 3,643 million euro (3,540 million euro as of December 31, 2023), with an increase of 103 million euro (which includes the effects of the first-time consolidations amounting to 16 million euro). In detail, the changes during the fiscal year concerned: • for 145 million euro, the increase, net of the effect of the first-time consolidations of the positive period for 16 million euro, of trade receivables from customers that at December 31, 2024 show a balance of 3,526 million euro (3,407 million euro at December 31, 2023); • for 43 million euro, the decrease in receivables from associates, which had a balance of 10 million euro (53 million euro at the end of the previous year); Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 67 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report • for 1 million euro, the increase in receivables from the municipalities of Milan and Brescia, which amount to 81 million euro at period-end (80 million euro at December 31, 2023). The change in trade receivables is mainly attributed to the operation of the trading portfolio for CO 2 -related transactions and the increase in receivables from Terna for the reimbursement of essential unit costs. The “Bad debt provision”, calculated in compliance with IFRS 9, amounted to 276 million euro (240 million euro as of December 31, 2023), and shows an increase of 36 million euro, which includes the effects of the first-time consolidations for 4 million euro. This provision is considered adequate to cover the risks to which it relates. The changes in the Bad debts provision are outlined in the following table: millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Provisions| Uses| Other changes| Balance at12 31 2024 ---|---|---|---|---|---|--- Bad debts provision | 240| 4| 82| (51)| 1| 276 The fiscal year’s provisions amounted to 82 million euro, unchanged from the prior fiscal year. Different criteria are applied in evaluating the existence of impairment losses on trade receivables, depending on the characteristics of the receivables under consideration. The following is the aging of trade receivables: millions of euro| 12 31 2023 | 12 31 2024 ---|---|--- Trade receivables of which:| 3,540| 3,643 Current | 1,195| 1,091 Past due of which: | 612| 682 Past due up to 30 days| 114| 111 Past due from 31 to 180 days| 202| 137 Past due from 181 to 365 days| 114| 105 Past due over 365 days| 182| 329 Invoices to be issued | 1,973| 2,146 Bad debts provision | (240)| (276) 68 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 8) Other current assets millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Changes | Balance at12 31 2024| of which included in the NFP12 31 2023 12 31 2024 ---|---|---|---|---|--- Current derivatives (commodity derivatives)| 1,526 | | (660)| 866 | 1 | 1 Other current assets of which:| 738 | 5 | (313) | 430 | | \- receivables from Cassa per i Servizi Energetici e Ambientali| 75 | | 7 | 82 | | \- advances to suppliers| 12 | | \- | 12 | | \- receivables from employees| 1 | | \- | 1 | | \- tax receivables | 130 | 5 | (3)| 132 | | \- receivables related to future years/periods| 27 | | 32 | 59| | \- water cycle BU receivables| 41 | | (23)| 18 | | \- receivables from social security entities| 3 | | \- | 3 | | \- Stamp office | 1 | | \- | 1 | | \- receivables for damage compensation| \- | | 1 | 1 | | \- receivables for dividends| \- | | 1 | 1 | | \- receivables for security deposits| 379 | | (336)| 43 | | \- receivables for RAI fee| 4 | | 1 | 5 | | \- receivables for COSAP| -| | 1 | 1 | | \- credit transfer Ge.S.I.| 2 | | \- | 2 | | \- other sundry receivables| 63 | | 6 | 69 | | Total other current assets| 2,264 | 5 | (973) | 1,296| 1 | 1 “Other current assets” showed a balance of 1,296 million euro compared to 2,264 million euro as at December 31, 2023, highlighting a decrease of 973 million euro, net of the effect of the first-time consolidation for 5 million euro. “Current derivative instruments” show a decrease of 660 million euro attributable to a reduction in the fair value measurement due to a lower average difference between subscription prices and market prices. Receivables from Cassa per i Servizi Energetici e Ambientali, amounting to 82 million euro (75 million euro at December 31, 2023), mainly refer to receivables for equalizations pertaining to both the period 2024 and to outstanding receivables for equalizations pertaining to previous years and receivables for tariff components, net of collections made in the current year. Tax receivables, equal to 132 million euro (130 million euro at December 31, 2023), mainly refer to receivables from the tax authorities for withholding taxes (mainly referring to tax credits for Ecobonus) and excise duties. Receivables related to future years amounted to 59 million euro (27 million euro at December 31, 2023) and mainly refer to the advance payment of water derivation fees, software license fees and insurance premiums. Receivables for guarantee deposits amount to 43 million euro (379 million euro at December 31, 2023) mainly refer to the deposit with the Electricity Market Operator (GSE) for operations on the electricity market. The water cycle BU receivable of 18 million euro (41 million euro at December 31, 2023) is related to the sale of the water BU of the subsidiary Azienda Servizi Valtrompia S.p.A.. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 69 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 9) Current financial assets millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Changes| Balance at12 31 2024| of which included in the NFP12 31 2023 12 31 2024 ---|---|---|---|---|--- Other financial assets | 33 | \- | (1)| 32 | 33 | 32 Total current financial assets| 33 | \- | (1)| 32 | 33 | 32 “Current financial assets” amounted to 32 million euro (33 million euro at December 31, 2023). This item mainly refers to financial receivables from third parties. 10) Current tax assets millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Changes of the year| Balance at12 31 2024 ---|---|---|---|--- Current tax assets| 41 | -| 4 | 45 At December 31, 2024, this item amounted to 45 million euro (41 million euro at December 31, 2023) and refers to current IRES and IRAP credits, to IRES and IRAP credits for amounts requested for reimbursement on payments from previous years and to the residual credit for Robin Tax, paid in previous years. 11) Cash and cash equivalents millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Changes| Balance at12 31 2024of which included in the NFP12 31 2023 12 31 2024 ---|---|---|---|--- Cash and cash equivalents| 1,629 | 1 | (81)| 1,549 | 1,629 | 1,549 “Cash and cash equivalents” at December 31, 2024 represent the sum of the Group’s bank and postal asset balances. The effect of the first-time consolidation of acquisitions in 2024 amounted to 1 million euro. The financial year’s decrease of 81 million euro remained contained despite acquiring Enel’s electricity distribution assets in the provinces of Milan and Brescia, confirming a strong overall liquidity position. This item includes term current accounts, in the amount of 338 million euro, related to trading on commodity derivative platforms. Bank deposits include accrued interest not yet credited by the end of the year. 70 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 12) Non-current assets held for sale millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Changes | Balance at12 31 2024| of which included in the NFP12 31 2023 | 12 31 2024 ---|---|---|---|---|---|--- Non-current assets held for sale| \- | | 405 | 405 | | “Non-current assets held for sale” amounted to 405 million euro as of December 31, 2024, reflecting the reclassification under IFRS5 of the asset and credit values related to certain ATEMs in the realm of gas distribution being acquired by Ascopiave following the preliminary purchase agreement signed on December 19, 2024. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 71 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Equity and liabilities Equity Equity, which amounted to 6,003 million euro at December 31, 2024 (4,802 million euro at December 31, 2023), is set out in the following table: millions of euro| Balance at12 31 2023| Changes| Balance at12 31 2024 ---|---|---|--- Equity pertaining to the Group:| | | Share capital | 1,629| -| 1,629 Reserves | 1,952| 1,000| 2,952 Group net income (loss) for the year| 659| 205| 864 Total equity pertaining to the Group| 4,240| 1,205| 5,445 Minority interests | 562| (4)| 558 Total equity | 4,802| 1,201| 6,003 The change of the Shareholders’ equity was overall positive for 1,201 million euro. The result of the year had a positive effect of 864 million euro, offset by the dividend distribution of 300 million euro and a decrease in minority interests amounting to a total of 4 million euro. Finally, other increases of 742 million euro are highlighted as a result of the first perpetual subordinated hybrid bond issue in Green – use of proceeds format with a nominal value of 750 million euro. 13) Share capital “Share capital” amounted to 1,629 million euro and consists of 3,132,905,277 ordinary shares each of nominal value 0.52 euro. 14) Reserves millions of euro| Balance at12 31 2023| Changes| Balance at12 31 2024 ---|---|---|--- Reserves | 1,952| 1,000| 2,952 of which:| | | Change in the fair value of cash flow hedge derivatives and Bond fair value| (2)| (13)| (15) Tax effect | -| 4| 4 Reserves of cash flow hedges and fair value bonds | (2)| (9)| (11) Change in the IAS 19 Revised reserve - Employee Benefits | (70)| 15| (55) Tax effect | 18| (6)| 12 IAS 19 Revised reserve - Employee Benefits | (52)| 9| (43) Change in fair value of financial assets | -| 9| 9 Tax effect | -| (3)| (3) Fair value reserves of financial assets | -| 6| 6 “Reserves”, which amounted to 2,952 million euro (1,952 million euro at December 31, 2023), consist of the legal reserve, extraordinary reserves, and the retained earnings of subsidiaries. This item also includes the cash flow hedge reserve, negative for 11 million euro, which refers to 72 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements the period-end measurement of derivatives qualifying for hedge accounting, and the fair value measurement of the Bonds in foreign currency net of the tax effect. The balance also includes negative reserves of 43 million euro arising from the adoption of IAS 19 Revised – Employee Benefits which requires actuarial profits and losses to be recognized directly in an equity reserve. Included within this item is the fair value reserve of financial assets, net of the associated tax effect, totaling 6 million euro. The item includes the equity reserve deriving from the first application of IFRS 9 equal to 32 million euro, and in particular the impairment of trade receivables according to the expected losses model. The reserve related to the first hybrid subordinated perpetual bond issuance in Green use of proceeds format, with a nominal value of 750 million euro, amounts to 742 million euro, net of issuance expenses and the tax effect on them. The bond, placed at an issue price of 99.460% and characterized by a non-call period of 5.25 years, will have a perpetual maturity and will pay a fixed annual coupon of 5.000% until the first reset date on September 11, 2029. From that date, unless early redemption has taken place, the security will accrue interest per annum equal to the five-year Euro Mid Swap reference rate increased by an initial margin of 225.8 basis points, increased by a further margin of 25 basis points from September 11, 2034 and by a subsequent increase of a further 75 basis points from September 11, 2049. The reserves also include the reserve related to the payment of the first tranche of coupons for 9 million euro, along with a related tax impact of minus 2 million euro. Reconciliation between A2A S.p.A. net income and the net income of the Groupmillions of euro| 12 31 2024 | 12 31 2023 ---|---|--- Result of the year of A2A S.p.A. | 788| 488 Intra-group dividends eliminated from the consolidated financial statements| (448)| (344) Net income (loss) of subsidiaries, associates and joint ventures | 559| 566 Other consolidation adjustments | (35)| (51) Group result of the year | 864| 659 Reconciliation between the equity of A2A S.p.A. and equity pertaining to the Groupmillions of euro| 12 31 2024| 12 31 2023 ---|---|--- Equity pertaining to A2A S.p.A. | 5,017 | 3,789 \- Elimination of the portion of the equity reserve resulting from profit on intra-group operations for the transfer of business units| (352)| (361) \- Retained earnings/(accumulated losses) | 435| 486 \- Intra-group dividends eliminated from the consolidated financial statements| (448)| (344) \- Net income (loss) of subsidiaries | 559| 566 \- Other consolidation adjustments | 234| 104 Equity pertaining to the Group | 5,445 | 4,240 15) Result of the year Positive result for 864 million euro. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 73 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 16) Minority interests millions of euro| Balance at12 31 2023| Changes| Balance at12 31 2024 ---|---|---|--- Minority interests | 562| (4)| 558 “Minority interests” amounted to 558 million euro as of December 31, 2024 (562 million euro as of December 31, 2023) and mainly represent the portions of capital, reserves, and results pertaining to minority shareholders related to third-party shareholders. 74 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Liabilities Non-current liabilities 17) Non-current financial liabilities millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Changes| Balance at12 31 2024of which included in the NFP12 31 2023 12 31 2024 ---|---|---|---|--- Non-convertible bonds| 4,800| -| (297)| 4,503| 4,800| 4,503 Payables to banks | 629| 10| 886| 1,525| 629| 1,525 Non-current financial payables for rights of use| 142| 1| (10)| 133| 142| 133 Payables to other lenders| 5| 2| 149| 156| 5| 156 Total non-current financial liabilities| 5,576| 13| 728| 6,317| 5,576| 6,317 “Non-current financial liabilities”, amounted to 6,317 million euro (5,576 million euro at December 31, 2023) and, net of the effects of the first-time consolidation of 13 million euro in the year, showed an increase of 728 million euro. “Non-convertible bonds” amounting to 4,503 million euro (4,800 million euro at December 31, 2023) relate to the following bonds, which are accounted for at amortized cost: • 298 million euro, maturing in October 2027 and coupon of 1.625%, the nominal value of which is equal to 300 million euro; • 86 million euro, Private Placement in yen maturing in August 2036 and fixed rate of 5.405%, the nominal value of which is equal to 14 billion yen; • 397 million euro, maturing in July 2029 and coupon of 1.00%, the nominal value of which is equal to 400 million euro; • 497 million euro, maturing in July 2031 and coupon of 0.625%, the nominal value of which is equal to 500 million euro; • 495 million euro, maturing in October 2032 and coupon of 0.625%, the nominal value of which is equal to 500 million euro; • 496 million euro, maturing in November 2033 and coupon of 1.00%, the nominal value of which is equal to 500 million euro; • 497 million euro, maturing in March 2028 and coupon of 1.5%, the nominal value of which is equal to 500 million euro; • 598 million euro, maturing in June 2026 and coupon of 2.5%, the nominal value of which is equal to 600 million euro; • 646 million euro, maturing in September 2030 and coupon of 4.5%, the nominal value of which is equal to 650 million euro; • 493 million euro, maturing in September 2034 and coupon of 4.375%, the nominal value of which is equal to 500 million euro. The decrease in the non-current component of “Non-convertible bonds”, amounting to 297 million euro compared with December 31, 2023, is due to the reclassification under “Current financial liabilities” of the bond maturing in February 2025 (300 million euro), and the decrease in the ECB exchange rate applied to the Private Placement in yen. “Payables to banks” amounted to 1,525 million euro. This item recognized the principal portion of loans granted by the European Investment Bank in the amount of 465 million euro and by various credit institutions in the amount of 1,060 million euro. The effect of the first-time consolidations led to a 10 million euro increase, whereas the 886 million Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 75 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report euro rise compared to the previous year can primarily be attributed to the issuance of loans with a total nominal value of around 1 billion euro and the reclassification under current liabilities of the capital portions maturing in the next twelve months. Non-current “Financial payables for rights of use” amounted to 133 million euro. This item shows a decrease of 10 million euro as of December 31, 2023, net of the effect of the first-time consolidations amounting to 1 million euro. “Payables to other lenders” amounted to 156 million euro (5 million euro at December 31, 2023) and show an increase of 149 million euro, net of the effects deriving from the effect of the first-time consolidations of 2 million euro. This increase is mainly attributable to a loan granted by Cassa Depositi e Prestiti in the nominal amount of 150 million euro. For an analysis of the maturity dates of each item of these payables, please refer to the special detailed table in the “Other information” section in chapter 6) Financial Risk Management in paragraph d. Liquidity risk, while for further analysis of the division between fixed-rate and variable- rate payables, please refer to the special detailed table in paragraph b. Interest rate risk. The following table shows the comparison, for each long-term debt category, between the book value and the fair value, as well as the portion maturing in the following 12 months, as better described in note 22) Current financial liabilities. For listed debt instruments, the fair value is determined using the market price, while for unlisted securities the fair value is determined using valuation models for each category of financial instrument and using market data relating to the closing date of the financial year, including the credit spreads of the A2A Group. Please note that this table does not contain the valuation of financial payables for rights of use. millions of euro| Nominal value| Book value| Current portion| Non-current portion| Fair Value ---|---|---|---|---|--- Bonds | 4,848 | 4,857| 354| 4,503| 4,606 Loans from banks and other lenders| 2,234 | 2,240| 559| 1,681| 1,365 Total | 7,082| 7,09 7| 913| 6,184| 5,971 18) Employee benefits At December 31, 2024, the balance of this item amounted to 214 million euro (237 million euro at December 31, 2023) with changes as follows: millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Provisions| Uses| Other changes| Balance at12 31 2024 ---|---|---|---|---|---|--- Employee leaving entitlement (TFR)| 104| 2| 41| (10)| (42)| 95 Employee benefits| 133| -| -| (6)| (8)| 119 Total employee benefits| 237| 2| 41| (16)| (50)| 214 The change during the year is attributable for 41 million euro to provisions for the year, for 16 million euro to the decrease due to disbursements for the year and for 43 million euro to the net decrease mainly related to payments for the year to pension funds. In addition, actuarial valuations for the year include the decrease resulting from actuarial gains/losses for 7 million euro. Lastly, the first-time consolidation effects of the year amounted to 2 million euro. 76 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Technical valuations were carried out on the basis of the following assumptions: millions of euro| 2023| 2024 ---|---|--- Discount rate | from +2.95% to +3.17% | from +2.69% to +3.38% Annual inflation rate | 2.0%| 2.0% Annual seniority bonus increase rate | 2.0%| 2.0% Annual additional months increase rate | 0.0%| 0.0% Annual cost of electricity increase rate | 2.0%| 2.0% Annual cost of gas increase rate | 0.0%| 0.0% Annual salary increase rate | 1.0%| 1.0% Annual TFR increase rate | 3.0%| 3.0% Average annual increase rate of supplementary pensions| 1.125%| 1.125% Annual turnover frequencies | from 4.0% to 5.0%| from 4.0% to 5.0% Annual TFR advance frequencies| from 2.0% to 2.5%| from 2.0% to 2.5% It is noted that: • the annual discount rate used to determine the present value of the bond has been derived, in line with paragraph 83 of IAS 19, from the Iboxx Corporate AA index recognized at the measurement date. For this purpose, the yield with duration comparable to the duration of the work group evaluated was chosen; • the annual rate of salary increase applied exclusively to companies with fewer than 50 employees on average in 2006 was determined on the basis of the reference data communicated by Group companies; • the annual rate of TFR increase, according to art. 2120 of the Civil Code, is equal to 75% of inflation plus 1.5 percentage points; • the annual advance and turnover frequencies are derived from historical experiences of the Group and the frequencies arising from the experience of the Actuary on a significant number of similar companies; • for the demographic technical bases, it is noted that: • for “death”, the tables TG62 (Premungas), AS62 (Electricity and gas discount) and RG48 (other plans) were used; • for “inability”, the INPS tables divided by age and gender were used; • for “retirement”, the 100% parameter was used upon reaching the requirements of AGO (Obligatory General Insurance) in accordance with LD no. 04/2019; • for the “probability of leaving the family”, the table in the INPS model was used for projections to 2010 updated; • for the “frequency of the various structures of surviving nuclei and average age of members”, the table in the INPS model was used for projections to 2010. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 77 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 19) Provisions for risks, charges and liabilities for landfills millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Provisions | Releases | Uses| Other changes| Balance at12 31 2024 ---|---|---|---|---|---|---|--- Decommissioning provisions| 305| -| 3| (1)| (11)| 28| 324 Landfill closing and post-closing expense provisions| 175| -| 14| (2)| (10)| 12| 189 Tax provisions | 49| -| -| (12)| -| -| 37 Personnel lawsuits and disputes provisions| 41| 4| -| (1)| -| 4| 48 Other risk provisions| 258| 4| 36| (6)| (38)| 2| 256 Provisions for risks, charges and liabilities for landfills| 828| 8| 53| (22)| (59)| 46| 854 As of December 31, 2024, the provisions for risks, charges, and liabilities for landfills stand at 854 million euro, reflecting an overall increase of 26 million euro, of which 8 million euro is due to the effects arising from the first-time consolidations of the financial year. “Decommissioning provisions”, which amounted to 324 million euro, include charges for costs of dismantling and recovery of production sites. Changes during the year included utilizations of 11 million euro to cover charges incurred during the year under review, provisions of 3 million euro, surpluses of 1 million euro, and other increases of 28 million euro attributable to the updating of appraisals and to changes in inflation and discount rates. The “Landfill closing and post-closing expense provisions”, which amounted to 189 million euro, refer to all the costs that will have to be incurred in the future for the sealing of the landfills in cultivation at the reporting date and for the subsequent post-operative management, as required by current regulations. Changes at December 31, 2024 included utilizations of 10 million euro, which represent actual disbursements during the year, net allocations of 12 million euro related to adjustments to the provisions for landfills following the update of the appraisals and inflation and discount rates, as well as other increases of 12 million euro. “Tax provisions”, which amounted to 37 million euro, refer to provisions for pending litigation with the tax authorities or territorial entities for direct and indirect taxes, levies and excises. “Personnel lawsuits and disputes provisions”, which totaled 48 million euro, refer to litigation with third parties for 37 million euro and employees for 7 million euro to cover liabilities that may arise from pending litigation, and lawsuits with Social Security Institutions for 4 million euro related to social security contributions that the Group believes it will not be required to pay and are the subject of specific disputes. “Other provisions for risks”, which amounted to 256 million euro, refer to provisions relating to public water derivation fees for 131 million euro, to the mobility provision for the costs arising from the corporate restructuring plan, for 16 million euro, as well as other provisions for 109 million euro, which also include the provision related to the dispute over the Grottaglie landfill. The main components of these provisions are net allocations of 30 million euro, of which 29 million euro related to additional charges for hydroelectric derivation surcharges, uses of 38 million euro, as well as other increases of 2 million euro. 78 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements The risk of climate change did not give rise to the need to recognize additional contingent liabilities as the A2A Group, as required by the standard, reviews risks annually, estimating the present value of the amounts required to meet future contingent obligations (e.g. decommissioning provisions on landfills or thermoelectric plants).This estimate is the result of the methodology used by the Group in previous years, which takes into account the macroeconomic scenario. 20) Other non-current liabilities millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Changes| Balance at12 31 2024| of which included in the NFP12 31 2023 12 31 2024 ---|---|---|---|---|--- Other non-current liabilities| 324| 128| (124)| 328| -| 133 Non-current derivatives| 11| -| 8| 19| 11| 19 Total other non-current liabilities| 335| 128| (116)| 347| 11| 152 At December 31, 2024, the item in question showed a decrease of 116 million euro compared to the previous year, net of the effect deriving from the first-time consolidations equal to 128 million euro. “Other non-current liabilities”, with a balance of 328 million euro, include security deposits from customers totaling 172 million euro, liabilities for future financial years amounting to 15 million euro, medium to long-term payables to suppliers of 3 million euro, payables related to the exercise of options for purchasing shares from third-party shareholders amounting to 133 million euro, as well as other non-current liabilities of 5 million euro. “Non-current derivative instruments” amounted to 19 million euro (11 million euro at December 31, 2023) and refer to the fair value measurement of the hedging derivative relating to the yen bond maturing in 2036. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 79 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Current liabilities 21) Trade payables and other current liabilities millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Changes | Balance at12 31 2024| of which included in the NFP12 31 2023 12 31 2024 ---|---|---|---|---|--- Advances and payables to customers| 6| -| 37| 43| | Payables to suppliers | 4,099| 12| (472) | 3,639| | Total trade payables | 4,105| 12| (435)| 3,682| -| - Payables to pension and social security institutions| 53| -| 3| 56| | Current derivatives | 1,553| -| (786)| 767| | Other current liabilities of which:| 464| 37| 67| 568| | Payables to personnel | 110| 1| 24| 135| | Payables to Cassa per i Servizi Energetici e Ambientali| 152| -| 8| 160| | Tax payables | 90| -| 35| 125| | Payables for tax transparency| 5| -| (3)| 2| | Payables for A.T.O. | 1| -| (1)| -| | Payables to customers for work to be performed| 28| -| 19| 47| | Payables to customers for interest on security deposits| 4| -| -| 4| | Payables to third-party shareholders| 1| -| (1)| -| | Payables for liabilities of competence of following years| 9| -| -| 9| | Payables for collections to be allocated| 3| -| 9| 12| | Payables for RAI fee | 7| -| -| 7| | Payables to insurance companies| 4| -| (1)| 3| | Payables for environmental compensation| 4| -| 1| 5| | Sundry payables | 46| 36| (23)| 59| -| 8 Total other current liabilities| 2,070| 37| (716)| 1,391| -| 8 Total trade payables and other current liabilities| 6,175| 49| (1,151) | 5,073| -| 8 “Trade payables and other current liabilities” amounted to 5,073 million euro (6,175 million euro at December 31, 2023), a decrease of 1,151 million euro, net of the effect deriving from the first-time consolidations in the period amounting to 49 million euro. “Trade receivables” amounted to 3,682 million euro and compared to the closing of the previous year, showed a decrease of 435 million euro, excluding the changes related to the first-time consolidations for 12 million euro. The decrease in payables to third-party suppliers is mainly attributable to the decrease in commodity trading transactions with bilateral counterparties. 80 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Over the course of the year, the Group improved its payment terms for the supply of gas in stock using letters of credit while retaining the same amount in trade payables, as it falls within its typical management. “Payables to social security institutions” amounted to 56 million euro, up 3 million euro compared to December 31, 2023 and relate to the Group’s debt position with social security and pension institutions. “Current derivative instruments” amounted to 767 million euro (1,553 million euro at December 31, 2023) and refer to the fair value valuation of commodity derivatives. The decrease is mainly attributable to a decrease in fair value valuation due to a lower average difference between subscription prices and market prices. “Other current liabilities” mainly refer to: • payables to employees for 135 million euro (110 million euro at December 31, 2023), relating to payables to employees for the productivity bonus accrued during the year, as well as the expense for holidays accrued but not taken at December 31, 2024; • payables to Cassa per i Servizi Energetici e Ambientali for 160 million euro (152 million euro at December 31, 2023), regarding the payable for the tariff components, invoiced and not yet paid, as well as the payable for equalization liabilities related both to prior years and the year in question; • tax payables for 125 million euro (90 million euro at December 31, 2023) related to payables to the tax authorities for excise, withholding taxes and VAT; • payables to customers for work to be performed during the next financial year in the amount of 47 million euro (28 million euro at December 31, 2023); • debts for liabilities associated with subsequent financial years totaling 9 million euro (9 million euro at December 31, 2023); • debts for collections to be set aside at 12 million euro (3 million euro as at December 31, 2023); • debts for RAI license fees totaling 7 million euro (7 million euro as at December 31, 2023); • debts owed to insurance amounting to 3 million euro (4 million euro as at December 31, 2023); • debts for environmental compensation amounting to 5 million euro (4 million euro as at December 31, 2023). 22) Current financial liabilities millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Changes| Balance at12 31 2024of which included in the NFP12 31 2023 12 31 2024 ---|---|---|---|--- Non-convertible bonds| 357| -| (3)| 354| 357 | 354 Payables to banks | 382| 1| 171| 554| 382 | 554 Current financial payables for rights of use| 35| 2| 5| 42| 35 | 42 Payables to other lenders| 1| -| 4| 5| 1 | 5 Total current financial liabilities| 775| 3| 177| 955| 775 | 955 “Current financial liabilities” amounted to 955 million euro (775 million euro at December 31, 2023) and, net of the effect of the first-time consolidation of 3 million euro in the year, showed a net increase of 177 million euro. “Non-convertible bonds” amounted to 354 million euro and show a decrease of 3 million euro. During the year, a bond with a nominal value of 300 million euro, which expired in March 2024 was repaid, offset by the reclassification from “Non-current financial liabilities” of the bond expiring in February 2025 of the same nominal value. At December 31, 2024, the calculation of interest coupons amounted to 54 million euro (57 million euro at December 31, 2023). Current “Payables to banks”, which amount to 554 million euro, include the principal amount, net of Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 81 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report amortized costs, of loans granted by the European Investment Bank, for 82 million euro, by various credit institutions, for 37 million euro, from the use of “Hot money” lines, for 430 million euro and from accrued interest for 5 million euro. The year-on-year increase of 171 million euro was mainly related to the reclassification from ‘Non-current financial liabilities’ of residual loans due within the next twelve months. “Current financial payables for rights of use” amounted to 42 million euro, an increase of 5 million euro compared to the previous year, net of the effect of the first-time consolidations for 2 million euro. The “Current payables to other lenders” stood at 5 million euro, marking a 4 million euro increase from the previous year, mainly due to the accrued interest on the loan provided by Cassa Depositi e Prestiti during the course of 2024. 23) Tax liabilities millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Changes of the year| Balance at12 31 2024 ---|---|---|---|--- Tax liabilities| 70| -| 50| 120 Tax liabilities amounted to 120 million euro (70 million euro at December 31, 2023) representing an increase of 50 million euro over the previous year-end. 24) Liabilities directly associated with non-current assets held for sale millions of euro| Balance at12 31 2023| First-time consolid. effect acquisitions2024| Changes | Balance at12 31 2024| of which included in the NFP12 31 2023 | 12 31 2024 ---|---|---|---|---|---|--- Liabilities directly associated with non-current assets held for sale| \- | -| 11 | 11 | | At December 31, 2024, “Liabilities directly associated with non-current assets held for sale” had a value of 11 million euro. The item includes the value of debts and liabilities related to certain gas distribution ATEMs, acquired by Ascopiave following the preliminary purchase agreement, signed on December 19, 2024. 82 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 2.12 Net debt (pursuant to Communication ESMA/32-382-1138) 25) Net debt (pursuant to Communication ESMA/32-382-1138) The following table provides details of net debt. millions of euro| Note | 12 31 2023 | First-time consolid. effect acquisitions2024| Changes| 12 31 2024 ---|---|---|---|---|--- Bonds - non-current portion | 17| 4,800| - | (297)| 4,503 Bank loans - non-current portion | 17| 629| 10 | 886| 1,525 Non-current payables to other lenders | 17| 5| 2 | 149| 156 Non-current financial payables for rights of use| 17| 142| 1 | (10)| 133 Other non-current liabilities | 20| 11| 126 | 15| 152 Total medium/long-term debt | | 5,587| 139 | 743| 6,469 Non-current financial assets - related parties | 3| (5)| -| 1| (4) Non-current financial assets | 3| (9)| - | -| (9) Other non-current assets | 5| (2)| - | -| (2) Total medium/long-term financial receivables| | (16)| - | 1| (15) Total non-current net debt | | 5,571| 139 | 744| 6,454 Bonds - current portion | 22| 357| - | (3)| 354 Bank loans - current portion | 22| 382| 1 | 171| 554 Current amounts due to other providers of finance| 22| 1| - | 4| 5 Current financial payables for rights of use | 22| 35| 2 | 5| 42 Other current liabilities | 21| -| 8 | -| 8 Total short-term debt | | 775| 11 | 177| 963 Financial assets – related parties | 9| (1)| - | -| (1) Other current financial assets | 9| (32)| -| 1| (31) Other current assets | 8| (1)| - | -| (1) Total short-term financial receivables| | (34)| - | 1| (33) Cash and cash equivalents | 11| (1,629)| (1) | 81| (1,549) Total current net debt | | (888)| 10 | 259| (619) Net debt | | 4,683| 149| 1,003| 5,835 The Group net financial position was 5,835 million euro. Insofar as the disclosure about indirect financial debt is concerned, the Group has identified financial commitments due within one year in connection with employee benefits, decommissioning provisions and liabilities for landfills, tax disputes and reverse factoring, amounting to about 96 million euro. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 83 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Pursuant to IAS 7 “Cash Flow Statement”, the following are the changes in financial assets and liabilities: millions of euro| 12 31 2023 | Cash flow| Non-cash Flow| | 12 31 2024 ---|---|---|---|---|--- | | Effect of non-recurring transactionsChange in fair value| Other changes| Bonds | 5,157| (408) | -| (4)| 112| 4,857 Financial payables | 1,194| 1,121 | 16| -| 84| 2,415 Other liabilities in NFP| 11| - | 134| 15| -| 160 Financial assets including IFRS16| (47)| 48 | -| -| (46)| (45) Other assets in NFP | (3)| - | -| -| -| (3) Net liabilities deriving from financing activities| 6,312| 761 | 150| 11| 150| 7, 3 8 4 Cash and cash equivalents| (1,629)| 81 | (1)| -| -| (1,549) Net debt | 4,683| 842| 149| 11| 150| 5,835 84 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 2.13 Notes to the income statement For changes in the scope of consolidation as at December 31, 2024, please refer to the “Notes to the Balance Sheet Items” section. Moreover, the economic figures as of December 31, 2024, are not consistent with the previous year due to the following extraordinary transactions that occurred during 2023: • acquisition in June 2023, by A2A Calore & Servizi S.r.l. of 100% of Termica Cologno S.r.l.; • acquisition in the second half of 2023, by A2A Rinnovabili S.p.A. of 100% of Juwi Development 12 S.r.l. and Juwi Development 13 S.r.l., with consequent line-by-line consolidation; • incorporation of the companies R2R 01 S.r.l., R2R 02 S.r.l., R2R 03 S.r.l. and R2R 04 S.r.l., by R2R S.r.l., which owns 100% of it, consolidated on a line-by-line basis; • incorporation on July 21, 2023 of the company Mogorella S.r.l. by A2A Rinnovabili S.p.A., which owns 100% of it, consolidated on a line-by-line basis. 26) Revenues Revenues for the year totaled 12,857 million euro (14,758 million euro at December 31, 2023), therefore decreasing by 1,901 million euro (12.9%). Details of the more significant items are as follows: millions of euro| 12 31 2024 | 12 31 2023 | Change | Percentage Change ---|---|---|---|--- Revenues from the sale of goods | 11,141| 13,002| (1,861)| (14.3%) Revenues from services | 1,429| 1,490| (61)| (4.1%) Total revenues from the sale of goods and services| 12,570| 14,492| (1,922)| (13.3%) Other operating income | 287| 266| 21| 7.9 % Total income | 12,857| 14,758| (1,901)| (12.9%) The variation, compared to the previous year, is attributable to the decrease in both wholesale and retail energy prices. The increase in retail market sales volume is partially offset by a decrease in volume sold and brokered in wholesale markets. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 85 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Further details of the main items are as follows: millions of euro| 12 31 2024 | 12 31 2023 | Change | Percentage Change ---|---|---|---|--- Sales and distribution of electricity | 7,1 5 4| 8,436 | (1,282)| (15.2%) Sale and distribution of gas | 3,469| 3,991 | (522)| (13.1%) Sale of heat | 268| 272| (4)| (1.5%) Sale of water | 95| 88| 7| 8.0% Sale of materials | 62| 69| (7)| (10.1%) Sale of environmental certificates | 63| 111| (48)| (43.2%) Connection contributions | 30| 35| (5)| (14.3%) Total revenues from the sale of goods | 11,141| 13,002 | (1,861)| (14.3%) Services to customers | 1,429| 1,490| (61)| (4.1%) Total revenues from services | 1,429| 1,490| (61)| (4.1%) Total revenues from the sale of goods and services| 12,570| 14,492 | (1,922)| (13.3%) Reintegration of costs – S. Filippo del Mela plant (Essential Unit plant)| 66| 25| 41| n.s. Damage compensation | 13| 8| 5| 62.5% Contributions - Cassa Servizi Energetici ed Ambientali| 6| 5| 1| 20.0% Contingent assets | 65| 43| 22| 51.2% Incentives for production from renewable sources (feed-in tariff)| 66| 41| 25| 61.0% Rents receivable | 6| 6| -| 0.0% Other revenues | 65| 138| (73)| (52.9%) Other operating income | 287| 266| 21| 7.9 % Total income | 12,857| 14,758| (1,901)| (12.9%) The item “Other operating income” showed an increase of 21 million euro mainly due to higher revenues for the reinstatement of generation costs incurred for the San Filippo del Mela plant (essential plant) pursuant to Resolution 803/2016 for 41 million euro, higher revenues linked to incentives on net production from renewable sources for 25 million euro, higher contingent assets for 22 million euro partially offset by lower other revenues for 73 million euro. Further details on the reasons for the performance of revenues relating to the various Business Units can be found in the paragraph “Result by sector”. 86 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 27) Operating expenses “Operating expenses” amounted to 9,637 million euro (11,972 million euro at December 31, 2023), representing a decrease of 2,335 million euro. The main components of this item are as follows: millions of euro| 12 31 2024 | 12 31 2023 Change | Percentage Change ---|---|---|--- Costs for raw materials and consumables | 6,951| 9,408 (2,457)| (26.1%) Costs for services | 2,267| 2,183 84| 3.8% Total expenses for raw materials and services | 9,218| 11,591 (2,373)| (20.5%) Other operating expenses | 419| 381 38| 10.0% Total operating expenses | 9,637 | 11,972 (2,335)| (19.5%) “Total expenses for raw materials and services” amounted to 9,218 million euro (11,591 million euro at December 31, 2023), decreasing by 2,373 million euro. This decrease is due to the combined effect of the following factors: • a decrease of 2,250 million euro in the purchase of raw materials and consumables, attributable to a decrease in costs for the purchase of energy and fuel of 1,980 million euro, a decrease in costs related to the purchase of environmental certificates of 258 million euro, a decrease in material purchases of 7 million euro, the net effect of hedging gains and losses on operating derivatives decreasing by 6 million euro, and an increase in water purchase costs of 1 million euro; • an increase of 84 million euro in costs for delivery, subcontracted work and services; • the decrease in inventories of fuel and materials for 207 million euro. For further information, the following table sets out details of the more significant components: millions of euro| 12 31 2024 | 12 31 2023 | Change | Percentage Change ---|---|---|---|--- Purchases of power and fuel | 6,512 | 8,492 | (1,980)| (23.3%) Purchases of materials | 192 | 199 | (7)| (3.5%) Purchases of water | 3 | 2 | 1 | 50.0% Hedging losses on operating derivatives | 1 | 7 | (6)| (85.7%) Hedging gains on operating derivatives | (5)| (5)| \- | 0.0% Purchases of emission certificates and allowances| 249 | 507 | (258)| (50.9%) Total costs for raw materials and consumables | 6,952 | 9,202 | (2,250)| (24.5%) Delivery and transmission costs | 1,303 | 1,173 | 130 | 11.1% Maintenance and repairs | 232 | 242 | (10)| (4.1%) Other services | 732 | 768 | (36)| (4.7%) Total costs for services | 2,267 | 2,183 | 84 | 3.8% Change in inventories of fuel and materials | (1)| 206 | (207)| n.s. Total costs for raw materials and services | 9,218 | 11,591 | (2,373)| (20.5%) Leasehold improvements | 90 | 145 | (55)| ( 3 7.9 % ) Contributions to territorial entities, consortia and ARERA| 15 | 14 | 1 | 7.1 % Taxes and duties | 41 | 39 | 2 | 5.1% Damages and penalties | 11 | 12 | (1)| (8.3%) Contingent liabilities | 30 | 27 | 3 | 11.1% Other costs | 232 | 144 | 88 | 61.1% Other operating expenses | 419 | 381 | 38 | 10.0% Total operating expenses | 9,637 | 11,972 | (2,335)| (19.5%) Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 87 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report The item “Other services” totaling 732 million euro includes, among others, communication costs of 47 million euro (in the previous year, they amounted to 36 million euro). Trading margin The following table sets out the results arising from the trading portfolio; these figures relate to trading in electricity, gas and environmental certificates. millions of euro| 12 31 2024 | 12 31 2023 | Change | Percentage Change ---|---|---|---|--- Revenues | 5,811| 8,599 | (2,788)| (32.4%) Operating expenses| (5,763)| (8,538) | 2,775| (32.5%) Total trading margin | 48| 61| (13)| (21.3%) The trading margin was positive for 48 million euro, a decrease of 13 million euro compared to December 31, 2023. Throughout 2024, the market demonstrated a continuation of the trend of price stabilization already observed in 2023, with less volatility than in previous years. This dynamic was influenced by several factors, including a consistent supply of Liquefied Natural Gas and a moderate energy demand, following climatic conditions that limited consumption peaks. Therefore, the reduced market volatility decreased the absolute value of profits captured from trading activities, despite the continued flow intermediation, price quoting, and market making. 28) Labor costs Net of capitalized expenses, labor costs at December 31, 2024 amounted to 892 million euro (815 million euro at December 31, 2023). “Labor costs” may be analyzed as follows: millions of euro| 12 31 2024 | 12 31 2023 | Change | Percentage Change ---|---|---|---|--- Wages and salaries | 671| 625| 46| 7.4 % Social security charges | 223| 207| 16| 7.7 % Employee leaving entitlement (TFR)| 41| 38| 3| 7.9 % Other costs | 77| 59| 18| 30.5% Total labor costs before capitalizations| 1,012| 929| 83| 8.9% Capitalized labor costs | (120)| (114)| (6)| 5.3% Total labor costs | 892| 815| 77| 9.4% 88 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements The table below shows the average number of employees by category: millions of euro| 12 31 2024| 12 31 2023 | Change ---|---|---|--- Managers | 201| 198| 3 Middle managers | 951| 896| 55 White-collar workers | 6,593| 6,257| 336 Blue-collar workers | 6,640| 6,489| 151 Total | 14,385| 13,840 | 545 At December 31, 2024, the average labor cost per capita amounted to 62.01 thousand euro, up 5.3% from the previous year (when it was 58.89 thousand euro). The increase is mainly attributable to the increase in the existing workforce, the salary increases provided for by national collective labor agreements, and remuneration policy actions. At December 31, 2024, the Group had 14,777 employees. At December 31, 2023, the Group had 13,958 employees. “Other labor costs” includes approximately 12 million euro (7 million euro at December 31, 2023) in costs relating to the overall charge for the corporate restructuring plan connected with future employee redundancies and 4 million euro (no value at December 31, 2023) for the provision connected with the new corporate welfare plan for Group employees called “A2A life caring” aimed at supporting parenthood through the recognition of contributions for the children of employees up to the age of 18 in the areas of education, training and work-life balance. 29) Gross operating income As a result of the above dynamics, the consolidated “Gross operating income” as of December 31, 2024, amounted to 2,328 million euro (1,971 million euro as of December 31, 2023). For further information, please refer to the description in the paragraph “Analysis of the main business sectors” in the Report on Operations. 30) Depreciation, amortization, provisions and write-downs “Depreciation, amortization and write-downs” totaled 1,011 million euro (954 million euro at December 31, 2023), an increase of 57 million euro. The following table provides details of the individual items: millions of euro| 12 31 2024 | 12 31 2023 | Change | Percentage Change ---|---|---|---|--- Amortization of intangible assets | 304| 278| 26| 9.4% Depreciation of tangible assets | 580| 523| 57| 10.9% Net write-downs of fixed assets | 14| 2| 12| n.s. Total amortization, depreciation and write-downs| 898| 803| 95| 11.8% Provisions for risks | 31| 68| (37)| (54.4%) Bad debt provision on receivables recognized as current assets| 82| 83| (1)| (1.2%) Total depreciation, amortization, provisions and write-downs| 1,011| 954| 57| 6.0% Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 89 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report “Depreciation, amortization and write-downs” totaled 898 million euro (803 million euro at December 31, 2023), representing an overall increase of 95 million euro. Amortization of intangible assets amounted to 304 million euro (278 million euro at December 31, 2023). The item reports increased amortization of 26 million euro related to the integrated water service, gas distribution and metering, the implementation of information systems, and new customer lists. Amortization of property, plant and equipment increased by 57 million euro compared to December 31, 2023 and related to: • higher depreciation of 39 million euro, mainly relating to the investments which went into production after December 31, 2023; • higher amortizations for 13 million euro for review of useful life of plants; • higher amortizations of 5 million euro for rights of use. Write-downs for the year amounted to 14 million euro (2 million euro as at December 31, 2023) and mainly related to the cancellation of projects no longer in the company’s core business and the write- down of assets no longer considered functional to the Group’s activities. “Provisions for risks” had a net effect of 31 million euro (net effect of 68 million euro at December 31, 2023) due to the provisions for the year of 53 million euro relating to the provision for derivation fees for public water for 29 million euro, to provisions for closure and post-closure costs of landfills and decommissioning for 17 million euro, and to other provisions for 7 million euro, adjusted by surpluses mainly following the release of tax reserves, closure and post-closure expense reserves on landfills, and other reserves for 22 million euro. For further information, reference is made to note 19) Provisions for risks, charges and liabilities for landfills. The “Bad debt provision” amounted to 82 million euro (83 million euro at December 31, 2023) of which 81 million euro related to the provision for the year for risks on trade receivables and 4 million euro to the provision for risks on other receivables adjusted by the surpluses noted in the year under review totaling 3 million euro. 31) Net operating income “Net operating income” was 1,317 thousand euro (1,017 thousand euro at December 31, 2023). 32) Result from non-recurring transactions The “Result from non-recurring transactions” is 5 million euro as of December 31, 2024, whereas it was 2 million euro in the previous year, and it refers to: • for approximately 6 million euro to the proceeds related to the compensation recognized by the Municipality of Cinisello Balsamo in favor of Unareti S.p.A. in execution of the award at the conclusion of the dispute that had arisen since 2006 over the valuation of the gas distribution network returned to the Municipality; • for approximately 2 million euro in gain recorded following the regulatory residual value established by Arera, from the sale of the water division of Azienda Servizi Valtrompia to Acque Bresciane; • for about 3 million euro for the loss from the sale of the shareholding held by the A2A Energy Solution Group company in Consul System. 90 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 33) Financial balance “Financial balance” shows a negative balance of 111 million euro (negative for 140 million euro at December 31, 2023). Details of the more significant items are as follows: millions of euro| 12 31 2024 | 12 31 2023 | Change | Percentage Change ---|---|---|---|--- Financial income | 105| 83| 22| 26.5% Financial expenses | (218)| (222)| 4| (1.8%) Affiliates | 2| -| 2| n.s. Result from disposal of other shareholdings| -| (1)| 1| (100.0%) Total financial balance | (111)| (140)| 29| (20.7%) “Financial income” amounted to 105 million euro (83 million euro at December 31, 2023) and may be analyzed as follows: millions of euro| 12 31 2024 | 12 31 2023 | Change | Percentage Change ---|---|---|---|--- Bank income | 47| 56| (9)| (16.1%) Realized on financial derivatives | 5| -| 5| n.s. Gains on disposals of financial assets | 1| -| 1| n.s. Other financial income of which: | 52| 27| 25| 92.6% Financial income from the Municipality of Brescia (IFRIC 12)| -| 5| (5)| (100.0%) Foreign exchange gains | -| 1| (1)| (100.0%) Other income | 52| 21| 31| n.s. Total financial income | 105| 83| 22| 26.5% Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 91 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report “Financial expenses” amounted to 218 million euro, which was an increase of 4 million euro on the figure reported at December 31, 2023. It is made up of the following elements: millions of euro| 12 31 2024 | 12 31 2023 | Change | Percentage Change ---|---|---|---|--- Interest on bond loans | 112| 124| (12)| (9.7%) Interest charged by banks | 46| 38| 8| 21.1% Interest on Cassa Depositi e Prestiti loans| 8| 2| 6| n.s. Realized on financial derivatives | -| -| -| - Decommissioning costs | 10| 9| 1| 11.1% Other financial expenses of which: | 43| 49| (6)| (12.2%) Discounting charges | 13| 15| (2)| (13.3%) Financial expenses (IFRS 16) | 4| 3| 1| 33.3% Financial expenses (IFRIC 12) | -| 3| (3)| (100.0%) Foreign exchange losses | -| 1| (1)| (100.0%) Other expenses | 26| 27| (1)| (3.7%) Write-downs of financial assets (non-equity)| -| -| -| \- Total financial expenses before capitalizations| 219| 222| (3)| (1.4%) Capitalized financial expenses | (1)| -| (1)| n.s. Total financial expenses | 218| 222| (4)| (1.8%) The decrease of 12 million euro in interest on bonds is primarily due to the maturity of two 300 million euro bonds in December 2023 and March 2024, partially compensated by increased charges on the 500 million euro Green Bond with a coupon of 4.375% issued in February 2023. The increased interest, amounting to 8 million euro, is mainly due to the new financing obtained during the year, including the 600 million euro syndicated loan for the acquisition of Enel’s electricity networks. The increase in financial expenses to Cassa Depositi e Prestiti, amounting to 6 million euro, is mainly attributable to the disbursement of a 150 million euro term loan in January 2024. The Equity method valuation of shareholdings amounts to 2 million euro (no value at December 31, 2023), mainly attributable to the positive valuation of the shareholdings held in some associated companies. 34) Income taxes millions of euro| 12 31 2024 | 12 31 2023 | Change | Percentage Change ---|---|---|---|--- Current IRES | 349| 241| 108| 44.8% Current IRAP | 71| 53| 18| 34.0% Effect of differences - taxes of previous years| (6)| (5)| (1)| 20.0% Total current taxes | 414| 289| 125| 43.3% Deferred tax assets | (20)| (41)| 21| (51.2%) Deferred tax liabilities | (75)| (49)| (26)| 53.1% Total income taxes | 319| 199| 120| 60.3% 92 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements “Income taxes” for the year amounted to 319 million euro (199 million euro at December 31, 2023) and are broken down as follows: • for 349 million euro current Ires for the year; • for 71 million euro current Irap for the year; • for -6 million euro taxes of previous years; • for -20 million euro deferred tax assets; • for -75 million euro deferred tax liabilities. Pursuant to Article 162-bis of Presidential Decree no. 917/1986, the parent company A2A in the 2024 financial year qualifies as a so-called “non-financial holding company”. Accordingly, A2A determined the total amount of IRAP for the 2024 financial year by adding to the net production value, determined in accordance with the provisions specific to joint-stock companies (pursuant to Articles 5 and 11 of Legislative Decree no. 446/1997), the difference between: • interest and similar income • interest and similar expense according to the provisions contained in Art. 6, paragraph 9 of Legislative Decree no. 446/1997. The production value thus calculated was subject to the average IRAP rate of 5.55%. It is important to highlight that in the 2024 financial year, the right was exercised to select the ordinary exemption regime according to Article 176 of the TUIR and the derogatory exemption regime under Article 15, paragraphs 10 et seq., of Legislative Decree No. 185/2008, which enable fiscal recognition of increased accounting values identified in the Purchase Price Allocation (PPA) process and attributed to Asset components (goodwill and customer list). The tax exemption entailed, in exchange for the payment of a substitute tax amounting to 49 million euro, the reduction of deferred tax liabilities amounting to 28 million euro, associated with the higher values relieved, allocated to customer lists, and the recognition of deferred tax assets amounting to 58 million euro, related to the non-accounting deductions of the higher values relieved, allocated to goodwill. These deferred tax assets will be released pro rata in connection with off-balance-sheet deductions starting in 2025. The reconciliation between the tax burden posted in the Consolidated Financial Statements and theoretical tax liabilities, calculated on the basis of theoretical rates applicable in Italy, is as follows: Reconciliation between the tax burden posted in the Financial Statements and theoretical tax liabilitiesmillions of euro| 2024 | 2023 ---|---|--- Pre-tax result | 1,211 | 879 Net write-downs of fixed assets | 14| 2 Pre-tax result adjusted by write-downs and the result of assets held for sale| 1,225 | 881 Theoretical rates based on applicable tax rates (1) | 294| 211 Tax effect of write-downs | \- | - Adjustment of prior year taxes | (6)| (13) Derogatory exemption regime (Decree-Law 185/2008) | (37)| (22) Permanent differences | 3| 4 Other differences | 5| (21) Total taxes charged to Income statement (excluding IRAP) | 259| 159 CURRENT IRAP | 60| 40 Total taxes charged to Income statement | 319| 199 (1) Taxes have been calculated considering a theoretical IRES rate of 24% Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 93 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Global Minimum Tax Implemented in Italy through Legislative Decree 209 on December 27, 2023, the Pillar II regulation outlined in Directive 2022/2523 dated December 15, 2022, is applicable for financial years commencing on or after December 31, 2023. The primary aim of this regulation is to ensure a baseline level of taxation (“global minimum tax”) for multinational and domestic company groups meeting certain predetermined conditions, requiring these groups to pay an additional tax in the country of the parent company concerning companies within the same group located in a low-tax jurisdiction. The minimum effective tax rate, which is the ratio of taxes paid to taxable income, is set at 15%. Given the immense complexity of implementing such global taxation, the Pillar II regulations also provided for the initial three effective periods (for taxpayers with a calendar year: 2024, 2025 and 2026), a simplification in the application and calculation of the aforementioned taxation. This facilitation is contained in the Ministerial Decree of May 20, 2024, which enacts the so-called Simplified Transitional Regime. Under this regime, the Pillar II supplementary tax liability of a multinational or domestic group can be considered zero if, during the relevant year, evaluating each jurisdiction individually, the group meets, alternatively, the de minimis transitional requirement, the simplified effective tax rate requirement, or the ordinary profit requirement. Given that the A2A Group falls under the scope of Pillar II legislation, it has conducted a thorough analysis of the impacts and obligations associated with the second pillar legislation. With regard to 2024, considering the information known or reasonably estimable by the reporting date, the A2A Group is not exposed to any additional taxes imposed by the Pillar II regulations. Based on the analyses conducted, all jurisdictions where the Group’s entities and jointly controlled entities are located satisfy at least one of the three criteria set by the Simplified Transitional Regime. Moreover, the Group has applied the temporary exception, introduced in May 2023, concerning the accounting requirements for deferred taxes under IAS 12. Consequently, no information regarding deferred tax assets and liabilities arising from the application of the Pillar II legislation is provided here. 35) Net result from discontinued operations The “Net result from discontinued operations” was nil (3 million euro at December 31, 2023). 36) Result of minorities The “Result of minorities” amounts to 28 million euro and mainly includes the portion attributable to third-party interests of the Acinque Group and the AEB Group. In the previous year, the item showed a balance of 24 million euro. 37) Group result of the year The “Group result of the year” was positive at 864 million euro (positive for 659 million euro at December 31, 2023). 94 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 2.14 Earnings per share 38) Earnings per share | 01 01 202412 31 2024| 01 01 202312 31 2023 ---|---|--- Earnings (loss) per share (in euro)| | \- basic | 0.2759| 0.2101 \- basic, from continuing operations | 0.2759| 0.2092 \- basic, from assets held for sale | 0.0000| 0.0009 \- diluted | 0.2759| 0.2101 \- diluted, from continuing operations | 0.2759| 0.2092 \- diluted, from assets held for sale | 0.0000| 0.0009 Weighted average number of outstanding shares for the calculation of earnings (loss) per share| | \- basic | 3,132,905,277 | 3,132,905,277 \- diluted| 3,132,905,277| 3,132,905,277 Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 95 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 2.15 Note on related party transactions 39) Note on related party transactions The definition of “related parties” is included in the international accounting standard describing the disclosures, which must be made for related party transactions in financial statements (revised IAS 24). Relationships with parent companies and their subsidiaries On October 5, 2007, the Municipalities of Milan and Brescia signed a Shareholders’ Agreement to regulate the ownership structure of A2A S.p.A.; this gave the Municipalities joint control over the company. Specifically, the merger effective January 1, 2008, regardless of the legal structure established, was considered a joint venture, whose joint control was exercised by the Municipalities of Milan and Brescia, each of which owned a share equal to 27.5%. On June 13, 2014, the Shareholders’ Meeting modified the company’s governance system, passing from the original two-tier system, adopted in 2007, to a “traditional” system of management and control through the appointment of the Board of Directors. In December 2014, the Municipalities of Milan and Brescia sold a total shareholding of 0.51% of A2A S.p.A., while in the first two months of 2015, the Municipalities of Milan and Brescia sold an additional shareholding of 4.5% of A2A S.p.A.. On October 4, 2016, the Municipalities of Milan and Brescia renewed for another three years, with effect from January 1, 2017, the Shareholders’ Agreement signed on December 30, 2013, concerning 1,566,452,642 ordinary shares representing 50% plus two shares of the share capital of A2A S.p.A.. On May 20, 2016, the two Municipalities had proceeded to sign an appendix to the Agreement, which envisaged reducing from six months to three months the term of the agreement, during which it is possible to terminate the same. On October 26, 2016, the Municipality of Milan received from the Municipality of Brescia the proposal, approved by the Council of said Municipality on October 25, 2016, to partially amend the shareholders’ agreement relating to A2A S.p.A. existing between the two Municipalities. In particular, said proposal requires the commitment of the two Municipalities to maintain syndicated and bound, in the new agreement, a number of shares held by them in equal measure, equal to 42% of the share capital of A2A S.p.A.. On November 4, 2016, the Council of the Municipality of Milan, after having favorably examined the proposal of the Municipality of Brescia of a partial amendment to the shareholders’ agreement, submitted to the Municipal Council the proposal of the new shareholders’ agreement for the final determinations of competence. On January 23, 2017, the Milan City Council approved the new Shareholders’ Agreement between the Municipality of Milan and the Municipality of Brescia regarding the shareholding in A2A S.p.A. and has undertaken the commitment not to proceed with the disposal of any shares owned by the Municipality of Milan. On August 2, 2019, the Municipality of Milan, also on behalf of the Municipality of Brescia, announced that the aforementioned Shareholders’ Agreement was not subject to termination. Consequently, the agreement is to be considered renewed with effect from February 1, 2020 to January 31, 2023. On August 2, 2022, the Municipality of Milan, also on behalf of the Municipality of Brescia, announced that the aforementioned Shareholders’ Agreement was not subject to termination. Consequently, the agreement is to be considered renewed with effect from February 1, 2023 to January 31, 2026. At the date of approval of these consolidated Financial Statements at December 31, 2024, each of the two shareholders hold 25% of the share capital plus one share (overall equal to 50% plus two shares), which allows the two municipalities to maintain control over the Company. 96 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements The A2A Group companies and the Municipalities of Milan and Brescia routinely entertain commercial relationships related to the supply of electricity, gas, heat, and potable water, management of public lighting systems and street lights, management of water purification and sewers, garbage collection and street sweeping and video surveillance. Similarly, the A2A Group companies entertain commercial relationships with the companies controlled directly and indirectly by the Municipalities of Milan and Brescia, for example, Metropolitana Milanese S.p.A., ATM S.p.A., Brescia Mobilità S.p.A., Brescia Trasporti S.p.A. and Centrale del Latte di Brescia S.p.A., supplying them with electrical energy, gas, heat, water purification and sewer service at market rates appropriate to the supply conditions and providing the services required. Note that these companies are considered related parties in the preparation of the financial statement schedules pursuant to Consob Resolution 17221 of March 12, 2010. The relationships between the Municipalities of Milan and Brescia and the A2A Group, in relation to granting the services associated with public lighting, street lights, management and supply of electricity, gas, heat, and water purification and sewer service are regulated by special conventions and specific contracts. The relationships between the companies controlled by the Municipalities of Milan and Brescia, which refer to the supply of electricity, are at arm’s length conditions. In particular, on April 12, 2017, Amsa S.p.A., a subsidiary of A2A S.p.A., in execution of the original assignment ordered in 2001, signed a contract with the Municipality of Milan for the management of services aimed at environmental protection for the period from January 1, 2017 to February 8, 2021; then extended until September 27, 2024 due to the progress of the new tender procedure for the reallocation of the service and the litigation developed on it. This procedure, published on December 30, 2021 and concerning the assignment of the urban waste management service with reduced environmental impact from a life-cycle perspective, pursuant to the action plan for the environmental sustainability of consumption in the public administration sector (PAN GPP) and the Decree of the Ministry of the Environment and Protection of Land and Sea of February 13, 2014, was awarded to Amsa S.p.A. on March 29, 2024. The competitor, who placed second in the rankings, lodged an appeal with the Regional Administrative Court of Lombardy, Milan. Following a hearing on November 6, 2024, judgment no. 3681, dated December 16, 2024, dismissed the appeal, ordering the exclusion of this competitor from the tender and affirming the complete legitimacy of the award to Amsa S.p.A.. The first-instance applicant failed to submit an appeal against the sentence of the Regional Administrative Court by the deadline of January 16, 2025. Relationships with subsidiaries and associates The parent company A2A S.p.A., operates like a centralized treasury for the majority of the subsidiaries. Relations between the companies are regulated through current accounts between the parent company and the subsidiaries, on which rates are applied, at market conditions, based on variable Euribor, with specific spreads for companies. For the financial year 2024, A2A S.p.A. and its subsidiaries have adopted the VAT procedure of the Group. Note that for IRES purposes, A2A S.p.A. files for tax on a consolidated basis, together with its main subsidiaries, in accordance with arts. 117-129 of DPR 917/86. To this end, with each of the subsidiaries joining, a special contract was drawn up to regulate the tax advantages/disadvantages transferred, with specific reference to the current entries. These contracts also govern the transfer of any excess of ROL as set forth by prevailing legislation. The parent company provides the subsidiaries and associates with administrative, fiscal, legal, management and technical services in order to optimize the resources available in the company and to use the existing expertise in terms of economic convenience. These services are governed by specific service contracts stipulated annually. A2A S.p.A. also makes office space and operating areas at its own premises available to subsidiaries and associates, as well as associated services. These are provided at market conditions. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 97 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report The companies A2A gencogas S.p.A. and A2A Energiefuture S.p.A., for a monthly fee related to the actual availability of the thermoelectric plants, provide to the Parent Company the power generation service. As of July 1, 2018, the Acinque Group’s related-party transactions with related parties of the A2A Group are shown as related parties. As of November 1, 2020, the AEB Group’s related-party transactions with related parties of the A2A Group are shown as related parties. * * * The information on corporate governance and ownership structures required by article 123-bis of Legislative Decree no. 58/1998, as amended, is contained in a separate document ‘Report on Corporate Governance and Ownership Structures for the year ended December 31, 2024’ which forms an integral part of the financial statements documentation. In compliance with the requirements of the “Regulation on provisions relating to related party transactions” adopted by Consob with Resolution no. 17221 of March 12, 2010 and subsequently amended by Resolution no. 17389 of June 23, 2010, by way of a resolution of November 11, 2010 the Management Board approved, following the favorable opinion of the Internal Control Committee, the prescribed procedure for identifying the rules and controls designed to ensure the transparency and substantial and procedural correctness of the related party transactions carried out by A2A S.p.A. directly or through its subsidiaries. The aforementioned Procedure was applied effective January 1, 2011 and subsequently amended on August 1, 2012, November 7 and December 18, 2013 and June 22, 2015. Following a periodic review, the Procedure was subsequently amended/supplemented and approved by the Board of Directors on June 20, 2016, subject to the favorable opinion of the Audit and Risks Committee and then updated on June 22, 2017, in view of Consob Resolution no. 19925 of March 22, 2017 and on December 16, 2019, in view of the amendments to art. 192-quinquies of Legislative Decree no. 58 of February 24, 1998 (“TUF”) (art. 4 of Legislative Decree no. 49 of May 10, 2019). Following the Board of Directors’ decision on June 25, 2021, and with the approval of the Related Parties Committee established by the resolution on May 13, 2021, the Procedure was revised— effective from July 1, 2021—to align with the Related Parties Regulation, as altered by Consob Resolution no. 21624 on December 10, 2020, in accordance with the so-called ‘Shareholders’ Rights II’ Directive. Lastly, the Procedure was amended and supplemented on July 30, 2024 by the Board of Directors, effective from August 1, 2024, following a periodic review and with the approval of the Related Parties Committee, established by board resolution on May 11, 2023. The aforementioned procedure can be found on the website . The company has availed itself of the possibility permitted by article 70, paragraph 8 and article 71, paragraph 1-bis of the Issuers’ Regulations, and hence of derogating from the requirement to make an information document available to public in the event of significant mergers, spin-offs, share capital increases by means of the contribution of assets in kind, acquisitions and disposals. 98 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Below are the tables with detail of the related party transactions, in accordance with the Consob Resolution no. 17221 of March 12, 2010: Balance sheet millions of euro| Total12 31 2024| Associatedcompaniesand subsidiaries of associates| Related companies| MunicipalityofMilan| Companies controlleddirectly and indirectlyMunicipality of MilanMunicipality ofBrescia| Companies controlleddirectly and indirectlyMunicipality of Brescia| Relatedpartiesindividuals| Totalrelatedparties| % effecton the balancesheet item ---|---|---|---|---|---|---|---|---|--- Total assets of which: | 19,894| 10 | 26 | 68 | 20 | 18 | \- | \- | 142 | 0.7% Non-current assets | 12,608 | 6 | 19 | \- | \- | 4 | \- | \- | 29 | 0.2% Shareholdings | 25 | 6 | 19 | \- | \- | \- | \- | | 25 | 100.0% Other non-current financial assets | 88 | \- | | \- | \- | 4 | \- | \- | 4 | 4.5% Other non-current assets | 130 | \- | \- | | \- | | \- | \- | \- | 0.0% Current assets | 6,881| 4 | 7 | 68 | 20 | 14 | \- | \- | 113 | 1.6% Trade receivables | 3,643| 4 | 6 | 68 | 20 | 13 | \- | \- | 111 | 3.0% Other current assets | 1,296| \- | 1 | \- | \- | \- | \- | \- | 1 | 0.1% Current financial assets | 32 | \- | \- | \- | \- | 1 | \- | \- | 1 | 3.1% Total liabilities of which: | 13,880| 29 | 1 | 1 | \- | 9 | \- | \- | 40 | 0.3% Non-current liabilities | 7,732 | 8 | \- | \- | \- | \- | \- | \- | 8 | 0.1% Provisions for risks and charges | 854 | 8 | \- | \- | \- | \- | \- | \- | 8 | 0.9% Current liabilities | 6,148| 21 | 1 | 1 | \- | 9 | \- | \- | 32 | 0.5% Trade payables | 3,682| 19 | 1 | 1 | \- | 9 | \- | \- | 30 | 0.8% Other current liabilities| 1,391 | 2 | \- | \- | \- | \- | \- | \- | 2 | 0.1% Income statement millions of euro| Total12 31 2024| Associatedcompaniesand subsidiaries of associates| Related companies| MunicipalityofMilan| Companies controlleddirectly and indirectlyMunicipality of Milan| Municipality ofBrescia| Companies controlleddirectly and indirectlyMunicipality of Brescia| Relatedpartiesindividuals| Totalrelatedparties| % effecton the balancesheet item ---|---|---|---|---|---|---|---|---|---|--- Revenues | 12,857 | 10 | 25 | 336 | 128 | 48 | 5 | | - 552 | 4.3% Revenues from the sale of goods and services | 12,570 | 10 | 25 | 336 | 128 | 48 | 5 | | - 552 | 4.4% Operating expenses| 9,637 | 34 | 15 | 11 | 7 | 9 | -| | - 76 | 0.8% Costs for raw materials and services| 9,218 | 9 | 15 | -| 7 | -| -| | - 31 | 0.3% Other operating expenses| 419 | 25 | - | 11 | -| 9 | -| | - 45 | 10.7% Labor costs | 892 | -| -| -| -| -| -| | 2 2 | 0.2% Financial balance| (111)| -| 2 | -| -| -| -| | - 2 | (1.8%) Affiliates | 2 | -| 2 | -| -| -| -| | - 2 | 100.0% Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 99 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Section 2 of this file provides complete schedules as required under Consob Resolution no. 17221 of March 12, 2010. It should be noted that during the year, A2A S.p.A. made grants totaling 4 million euro to foundations that have been included on a voluntary basis among related parties. Specifically, these involve: Fondazione AEM, Fondazione ASM, Fondazione LGH E.T.S., Comitato Banco dell’Energia Onlus, Fondazione Brescia Musei and Associazione Centro Teatrale Bresciano. * * * With regard to the compensation paid to the corporate governance bodies, reference shall be made to the document “Remuneration Report – 2025” available on the website . 100 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 2.16 Significant non-recurring events and transactions, pursuant to Consob Communication No. DEM/6064293 of July 28, 2006 40) Significant non-recurring events and transactions, pursuant to Consob Communication No. DEM/6064293 of July 28, 2006 It is important to highlight that in the 2024 financial year, the right was exercised to select the ordinary exemption regime according to Article 176 of the TUIR and the derogatory exemption regime under Article 15, paragraphs 10 et seq., of Legislative Decree No. 185/2008, which enable fiscal recognition of increased accounting values identified in the Purchase Price Allocation (PPA) process and attributed to Asset components (goodwill and customer list). The tax exemption entailed, in exchange for the payment of a substitute tax amounting to 49 million euro, the reduction of deferred tax liabilities amounting to 28 million euro, associated with the higher values relieved, allocated to customer lists, and the recognition of deferred tax assets amounting to 58 million euro, related to the non-accounting deductions of the higher values relieved, allocated to goodwill. These deferred tax assets will be released pro rata in connection with off-balance-sheet deductions starting in 2025. On December 31, 2024, the A2A Group completed the acquisition of 90% of the shareholding in Duereti S.r.l. from E-distribuzione, enabling the company to undertake power distribution activities in several municipalities within the provinces of Milan and Brescia, with an investment of roughly 1.2 billion euro. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 101 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 2.17 Guarantees and commitments with third parties millions of euro| 12 31 2024 | 12 31 2023 ---|---|--- Guarantees received| 1,146| 1,074 Guarantees provided| 2,433| 2,461 Guarantees received Guarantees received amounted to 1,146 million euro (1,074 million euro at December 31, 2023) and included 500 million euro for sureties and security deposits issued by subcontractors to guarantee the proper execution of the work assigned and 567 million euro for sureties and security deposits received from customers to guarantee the regularity of payments and guarantees received by the ACINQUE Group for 57 million euro and guarantees received by the AEB Group for 22 million euro. Guarantees provided and commitments with third parties Guarantees provided amounted to 2,433 million euro (2,461 million euro at December 31, 2023), of which for obligations undertaken in the loan agreements of 17 million euro. These guarantees have been issued by banks for 1,588 million euro, insurance companies for 26 million euro and the parent company A2A S.p.A., as parent company guarantee, for 704 million euro and guarantees provided by the ACINQUE Group for 74 million euro and guarantees provided by the AEB Group for 41 million euro. * * * Group companies hold third party assets under concession, relating mainly to the integrated water cycle, amounting to 66 million euro. 102 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 2.18 Other information 1) Significant events after December 31, 2024 For a description, reference is made to the paragraph “Significant events after December 31, 2024” of the Report on operations. 2) Information on treasury shares At December 31, 2024, A2A S.p.A. had no treasury shares. 3) Transactions as per IFRS 3 revised In 2024, the A2A Group completed the following acquisitions of investments, which fall within the provisions of IFRS 3: • acquisition by A2A S.p.A. of 90% of the Duereti S.r.l., a company operating in electricity distribution; • acquisition by Acinque S.p.A. of 70% of Agesp Energia S.r.l., a company operating in the electricity and gas sale sector and in the district heating sector; • acquisition by Agripower S.p.A. of 100% of Biomax Società Agricola a.r.l., a company operating in the production of electricity from biogas. The transactions summarized above are classified as business combinations in accordance with international standard IFRS 3 “Business Combinations”; the Group fully consolidated the companies through the application of the acquisition method prescribed by IFRS 3, by virtue of the control obtained on the entities acquired. IFRS 3 requires all business combinations to be accounted for using the acquisition method within twelve months from acquisition. The acquirer must therefore recognize all the identifiable assets, liabilities and contingent liabilities relating to the acquisition at their fair values at the acquisition date and highlight the eventual recognition of goodwill. The fee transferred in a business combination is determined at the date of acquisition of control and is equal to the fair value of assets transferred, liabilities incurred, and any equity instruments issued by the acquirer. Costs directly attributable to the transaction are recognized in the income statement when incurred. At the date of acquisition of control, the net equity of the investee companies is determined by attributing to individual assets and liabilities their fair value, except in cases where the IFRS provisions provide a different valuation criterion. Any residual difference with respect to the purchase cost, if positive, is recognized under the item “Goodwill” (hereinafter also goodwill); if negative, it is recognized in the income statement. Business combination Duereti S.r.l. On December 31, 2024, A2A SpA acquired 90% of Duereti S.r.l., a company operating in the distribution of electricity in several municipalities situated in the provinces of Milan and Brescia. The acquisition was concluded for a value of 1,229 million euro. The price was fully adjusted at the closing of the transaction and generated goodwill of 890 million euro, which will be allocated through the Purchase Price Allocation process within the time frame required by IFRS 3. The Group conducted a thorough analysis and concluded that the transaction meets the definition of a business combination. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 103 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Business combination Agesp Energia S.r.l. On January 3, 2024, Acinque S.p.A, a company 41.34% owned by A2A S.p.A., acquired 70% of the shareholding in Agesp Energia S.r.l., a company operating in the electricity and gas sale sector and in the district heating sector. The acquisition transaction was concluded for a value of 26 million euro and generated goodwill of 20 million euro, which was allocated through the Purchase Price Allocation process as required by IFRS 3. This process was completed with the allocation of the higher value to intangible assets amounting to 17 million euro, goodwill amounting to 12 million euro, deferred taxes amounting to 5 million euro and 4 million euro to third-party interests. Business combination Biomax Società Agricola a r.l. On July 18, 2024, Agripower S.p.A., a company wholly owned by A2A Ambiente S.p.A., acquired 100% of Biomax Società Agricola a r.l., a company operating in the production of electricity from biogas. The acquisition transaction was concluded for a value of 7 million euro, generating goodwill of 5 million euro, which will be allocated with the Purchase Price Allocation process within the time frame required by IFRS 3. 4) Information on non-current assets and liabilities held for sale and discontinued operations (IFRS 5) The items ‘Non-current assets held for sale’ and ‘Liabilities directly associated with non-current assets held for sale’ as of December 31, 2024, reflect the reclassification of certain assets and corresponding liabilities related to the gas distribution associated with specific ATEM, which will be acquired by Ascopiave following the preliminary purchase agreement signed on December 19, 2024. 5) Rules on public funding (Compliance with art. 1, paragraphs 125 et seq. of Law 124/17) Pursuant to art. 1, paragraphs 125 and following Law 124/17, as reformulated by art. 35 of Decree Law 34/19, and considering that the Group companies have not received “subsidies, grants, advantages, contributions or aid, whether in cash or in kind, not general and with no consideration, remuneration or compensation”, this note is negative. This is without prejudice to the fact that other information is (also in the wake of the principle pursuant to art. 18 L. 241/1990) available elsewhere, also by virtue of the criterion set forth in paragraph 127 of the same art. 1 L. 124/17, which prescribes to “avoid the accumulation of irrelevant information”, as well as what is specified in paragraph 125 quinquies of the same art. 1 L. 124/17 by virtue of which “for State aid and de minimis aid contained in the National Register of State Aid referred to in article 52 of Law No. 234 of December 24, 2012, the registration of aid in the aforesaid system, with consequent publication in the transparency section provided therein, carried out by the entities granting or managing such aid pursuant to the relevant rules, takes the place of the publication obligations placed on the entities referred to in paragraphs 125 and 125-bis”. It should also be noted that the companies of the A2A Group operate (for the most part) in regulated sectors. Therefore, some sums are recognized by public bodies, not as subsidies/contributions, but as recognition of the activities they provide or as forms of compensation for costs incurred to meet specific regulatory obligations and in any case by virtue of a general regime. Also all these forms of payment have not been indicated: also in compliance with both the literal aspect of the regulations and with the interpretation criteria that the company has identified (see above). 104 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements 6) Financial risk management The A2A Group operates in the electricity, natural gas and district heating industry and is exposed to various financial risks in performing its activity: a) commodity risk; b) interest rate risk; c) exchange rate risk not related to commodities; d) liquidity risk; e) credit risk; f) equity risk; g) default and covenant non-compliance risk. The commodity price risk, related to the volatility of energy commodity prices (gas, electricity, fuel oil, coal, etc.) and prices of environmental securities (EUA/ETS emission rights, white certificates, etc.), consists of the possible negative effects that a change in the market price of one or more commodities may have on the cash flows and income prospects of the company, including the exchange rate risk related to the same commodities. Interest rate risk is the risk of additional financial costs as the result of an unfavorable change in interest rates. Currency risk not related to commodities is the risk of higher costs or lower revenues because of an unfavorable change in exchange rates between currencies. Liquidity risk is the risk that financial resources will not be sufficient to meet established financial and business obligations in a timely manner. Credit risk is the exposure to potential losses deriving from non-performance of commitments by commercial, trading and financial counterparties. Equity risk is the possibility of incurring losses due to an unfavorable change in the price of shares. Default and covenant non-compliance risk represent the possibility that loan agreements or bond regulations to which one or more Group companies are party contain provisions allowing the counterparties, banks or bondholders, to ask the debtor for immediate reimbursement of the amounts lent if certain events take place. Details on the risks to which the A2A Group is exposed are provided below. a. Commodity risk a.1) Commodity price risk and exchange rate risk involved in commodity activities The Group is exposed to price risk, including the related currency risk, on all of the energy commodities that it handles, namely electricity, natural gas, heat, coal, fuel oil and environmental certificates; the results of production, purchases and sales are similarly affected by fluctuations in the prices of such energy commodities. These fluctuations act both directly and indirectly, through formulas and indexing in the pricing structure. To stabilize cash flows and to assure the Group’s economic and financial stability, A2A S.p.A. has an Energy Risk Policy that sets out clear guidelines to manage and control the above risks, based on guidance by the Committee of Chief Risk Officers Organizational Independence and Governance Working Group (CCRO) and the Group on Risk Management of Eurelectric. Reference was also made to the Accords of the Basel Committee on bank supervision and the requirements laid down in international accounting standards on how to recognize the volatility of commodity price and financial derivatives in the income statement and balance sheet. In the A2A Group, assessment of this kind of risk is centralized at the holding company, which has established a Group Risk Management Unit. This unit has the task to manage and monitor market and commodity risks, to create and evaluate structured energy products, to propose financial energy risk hedging strategies, and to support senior management in defining the Group’s energy risk management policies. Each year, the Board of Directors of A2A S.p.A. sets the Group’s commodity risk limits approving the PaR and VaR proposed (prepared in the Risk Committee) in conjunction with approval of the Budget/ Business Plan; Group Risk Management supervises the situation to ensure compliance with these Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 105 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report limits and proposes to senior management the hedging strategies designed to bring risk within the set limits, if exceeded. The activities that are subject to risk management include all of the positions on the physical market for energy products, both purchasing/production and sales, and all of the positions in the energy derivatives market taken by Group companies. For the purpose of monitoring risks, industrial and trading portfolios have been separated and are managed in different ways. The industrial portfolio consists of the physical and financial contracts directly relating to the Group’s industrial operations, namely where the objective is to enhance production capacity also through the wholesaling and retailing of gas, electricity and heat. The trading portfolio comprises all contracts, both physical and financial, entered into to supplement the profits made from the industrial activities, i.e. all contracts that are ancillary though not strictly necessary to the industrial activity. In order to identify trading activity, the A2A Group follows the Capital Adequacy Directive and the definition of assets held for trading provided by International Accounting Standard (IFRS) 9: namely assets held for the purpose of short-term profit taking on market prices or margins, without being for hedging purposes, and designed to create a high-turnover portfolio. Given that they exist for different purposes, the two portfolios have been segregated and are monitored separately with specific tools and limits. More specifically, the trading portfolio is subject to particular risk control and management procedures as laid down in Deal Life Cycle documents. Senior management is systematically updated on changes in the Group’s commodity risk by the Group Risk Management Unit, which controls the Group’s net exposure. This is calculated centrally on the entire asset and contract portfolio and monitors the overall level of economic risk assumed by the industrial and trading portfolios (Profit at Risk - PaR, Value at Risk - VaR, Stop Loss). a.2) Commodity derivatives, analysis of transactions Derivatives of the industrial portfolio considered hedges The hedging of price risk by means of derivatives focuses on protecting against the volatility of energy prices on the power exchange (IPEX-EEX), stabilizing electricity price margins on the wholesale market with particular attention being paid to fixed price energy sales and purchases and stabilizing price differences deriving from various indexing mechanisms for the pricing of gas and electricity. To that end, hedging contracts were executed during the year on electricity purchase and sale agreements and on contracts to hedge the fee for the use of electricity transport capacity between the areas of the IPEX market (CCC contracts); hedging contracts were also concluded for the purchase and sale of gas so as to protect sales margins and at the same time keep the risk profile to within the limits set by the Group’s Energy Risk Policy. As part of the optimization of the portfolio of greenhouse gas emission allowances (see Directive 2003/87/EC), the A2A Group has stipulated Future contracts on the ICE ECX (European Climate Exchange) price. These are considered hedging transactions from an accounting point of view in the event of demonstrable surplus/deficit quotas. The fair value at December 31, 2024 was -11.2 million euro (-2.3 million euro at December 31, 2023). Derivatives of the industrial portfolio not considered hedges Again with a view to optimizing the Industrial Portfolio, Option contracts on the price of electricity with delivery in Italy and Future contracts on the price of the ICE ECX (European Climate Exchange) were stipulated. These do not qualify as hedging transactions from an accounting point of view as they fail to meet the requirement set out in the accounting standards. The fair value at December 31, 2024 was -0.5 million euro (1.1 million euro at December 31, 2023). 106 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Derivatives of the Trading Portfolio As part of its trading activity, the A2A Group has taken out Future contracts on major European energy stock exchanges (EEX, ICE) and Forward, Swap and Option contracts on the price of electricity with delivery in Italy and neighboring countries such as France, Germany and Switzerland. The Group has also stipulated Future contracts on the ICE ECX (European Climate Exchange) stock exchange price. Also as part of trading activities, Future, Forward and Option contracts were also stipulated for the market price of gas (ICE-Endex, CEGH, PEGAS). The fair value at December 31, 2024 was 110.2 million euro (-26.9 million euro at December 31, 2023). a.3) Energy Derivatives, risk assessment of Industrial Portfolio derivatives PaR 1 or Profit at Risk, is used to assess the impact that fluctuations in the market price of the underlying have on the financial derivatives taken out by the A2A Group that are attributable to the industrial portfolio. It is the change in the value of a financial instruments portfolio within set probability assumptions as the result of a shift in the market indices. The PaR is calculated using the Montecarlo Method (at least 10,000 trials) and a 99% confidence level. It simulates scenarios for each relevant price driver depending on the volatility and correlations associated with each one, using as the central level the forward market curves at the balance sheet date, if available. By means of this method, after having obtained a distribution of probability associated with changes in the result of outstanding financial contracts, it is possible to extrapolate the maximum change expected over a time horizon given by the accounting period at a set level of probability. Based on this methodology, over the time horizon of the accounting period and in the event of extreme market movements and at a 99% confidence level, the expected maximum negative change in financial derivatives outstanding at December 31, 2024 was 100.380 million euro (113.328 million euro at December 31, 2023). The following are the results of the simulation with the related maximum variances: millions of euro| | 12 31 2024 | 12 31 2023 ---|---|---|--- Profit at Risk (PaR) | worst case| best case| worst case| best case Confidence level 99%| (100.380)139.448| (113.328)145.548 The A2A Group therefore expects, with a 99% probability, not to have changes compared to the fair value at December 31, 2024 exceeding 100.380 million euro of its entire portfolio of financial instruments due to unfavorable commodity price fluctuations in the 12 months following. If there are any negative changes in the fair value of hedge derivatives, these would be compensated by changes in the underlying physical. a.4) Energy Derivatives, risk assessment of Trading Portfolio derivatives VaR 2 (Value at Risk) is used to assess the impact that fluctuations in the market price of the underlying have on the financial derivatives taken out by the A2A Group that are attributable to the trading portfolio. It is the negative change in the value of a financial instruments portfolio within set probability assumptions as the result of an unfavorable shift in the market indices. VaR is calculated using the RiskMetrics method with a holding period of 3 days and a confidence level of 99%. Alternative methods are used for contracts where it is not possible to perform a daily estimate of VaR such as stress test analysis. Under this method, in the case of extreme market movements, with a confidence level of 99% and a holding period of 3 days, the maximum estimated loss on the derivatives in question was 1.088 million euro at December 31, 2024 (0.480 million at December 31, 2023). In order to ensure closer monitoring of activities, VaR and Stop Loss (the sum of VaR, P&L Realized and P&L Unrealized) limits are also set. 1 Profit at Risk: statistical measurement of the maximum potential negative deviation of the margin of an asset portfolio in case of unfavourable market changes over a given time horizon and with a defined confidence interval. 2 Value at Risk: statistical measurement of the maximum potential drop in the fair value of an asset portfolio in the event of unfavorable movements in the market with a given time horizon and confidence level. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 107 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report The following are the results of the assessments: millions of euro| | 12 31 2024 | 12 31 2023 ---|---|---|--- Value at Risk (VaR) | VaR| Stop Loss | VaR| Stop Loss Confidence level 99%, holding period 3 days| (1.088)(1.088)| (0.480)(0.480) b. Interest rate risk The Group is exposed to the risk that changes in the interest rate curve result in changes in economic results, cash flows and the value of assets and liabilities measured at fair value. The volatility of financial expenses associated to the performance of interest rates is monitored and mitigated through a policy of interest rate risk management aimed at identifying a balanced mix of fixed-rate and variable rate loans and the use of derivatives that limit the effects of fluctuations in interest rates. The book value and type of gross debt at December 31, 2024 are shown in the table below: millions of euro| | 12 31 2024| | | 12 31 2023| ---|---|---|---|---|---|--- | Before hedging| After hedging| % after hedging| Before hedging| After hedging| % after hedging Fixed rate | 5,468| 5,714| 79%| 5,431| 5,548| 87% Variable rate| 1,804| 1,558| 21%| 920| 803| 13% Total| 7,272| 7,272| 100%| 6,351| 6,351| 100% At December 31, 2024, the following are the hedging instruments for interest rate risk: millions of euro| | 12 31 2024| 12 31 2023 ---|---|---|--- Hedging instrument | Hedged asset | Fair value | Notional Fair value| Notional IRS | Floating rate loan subsidiaries| 2.9 | 321.2 2.4| 25.4 Total| | 2.9 321.2| 2.4| 25.4 With reference to the accounting treatment, hedging derivatives for interest rate risk can be classified as follows: millions of euro| | | ---|---|---|--- Accounting treatment| Type of derivatives| Financial assets | Financial liabilities | | Notional at Fair value at| Notional at Fair value at | | 12 31 2024 12 31 2023 12 31 2024 12 31 2023 | 12 31 2024 12 31 2023 12 31 2024 12 31 2023 Cash flow hedge| IRS| - - - -| 321.2 25.4 2.9 2.4 Total| | - - - -| 321.2 25.4 2.9 2.4 108 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Derivatives on interest rates at December 31, 2024 in cash flow hedge refer to the following loans: Loan Derivative Accounting ACINQUE’s variable rate bank loan, maturing on December 2025, has a remaining balance of 2.2 million euro as of December 31, 2024. IRS on 100% of the amount of the loan until maturity thereof. At December 31, 2024, the fair value was positive for 0.05 million euro. The loan is measured at amortized cost. The IRS is a cash flow hedge, with 100% recognized in a specific equity reserve. ACINQUE’s variable rate bank loan, maturing on December 2029, has a remaining balance of 100 million euro as of December 31, 2024. IRS on 100% of the amount of the loan until December 2027. At December 31, 2024, the fair value was positive for 0.2 million euro. The loan is measured at amortized cost. The IRS is a cash flow hedge, with 100% recognized in a specific equity reserve. VOLTA GREEN ENERGY variable rate bank loan, maturity December 2026, residual debt at December 31, 2024 of 0.6 million euro. IRS on 100% of the amount of the loan until maturity thereof. At December 31, 2024, the fair value was positive for 0.01 million euro. The loan is measured at amortized cost. The IRS is a cash flow hedge, with 100% recognized in a specific equity reserve. LA CASTILLEJA ENERGIA variable rate bank loan, maturing on December 2034, residual debt at December 31, 2024 of 24.6 million euro. IRS on 75% of the amount of the loan until December 2030. At December 31, 2024, the fair value was positive for 1.6 million euro. The loan is measured at amortized cost. The IRS is a cash flow hedge, with 100% recognized in a specific equity reserve. A2A variable rate bank loan, maturity September 2031, residual debt at December 31, 2024 of 100 million euro. IRS on 100% of the amount of the loan until October 2026. At December 31, 2024, the fair value was positive for 0.2 million euro. The loan is measured at amortized cost. The IRS is a cash flow hedge, with 100% recognized in a specific equity reserve. As of December 31, 2024, the interest rate derivatives in the cash flow hedge category also encompass two pre-hedge operations executed during the fourth quarter of 2024, intended to hedge the funding plan of the Strategic Plan approved by the Board of Directors in November 2024, particularly in anticipation of a future bond issuance during 2025. The total nominal amount stands at 100 million euro with a positive fair value of 0.8 million euro, distributed as detailed: • Notional amounting to 50 million euro, with a positive fair value of 0.1 million euro as of December 31, 2024; • Notional amount of 50 million euro, with a positive fair value of 0.7 million euro as of December 31, 2024. The Group performs sensitivity analysis by estimating the effects on the value of financial statement items relating to the portfolio of financial instruments deriving from changes in the level of interest rates. In particular, the sensitivity analysis measures the potential impact on the income statement and shareholders’ equity of different market scenarios that would determine the change in fair value of derivative financial instruments and the change in financial expenses related to the portion of gross debt not hedged. These market scenarios are obtained by shifting the reference interest rate curve at the reporting date up and down in parallel. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 109 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Keeping all other variables constant, the pre-tax result would be influenced by changes in the level of interest rates as follows: millions of euro| Effect on the Income Statement (before tax)| Effect on Equity(before tax) ---|---|--- | -50 bps +50 bps | -50 bps +50 bps Change in financial expenses on gross variable-rate debt after hedging| 3.1 (3.1)| - - Change in fair value of derivative financial instruments classified as non-hedge| - -| - - Change in fair value of derivative financial instruments | | classified as hedge (excluding BCVA as per IFRS 13):| | Cash flow hedge | - -| (6.6) 6.3 Fair value hedge | - -| - - c. Exchange rate risk not related to commodities The Group is exposed to the risk that changes in exchange rates with respect to the currency of account may lead to changes in its results of operations and cash flows. In relation to exchange rate risk other than that included in the price of commodities, the hedging instrument at December 31, 2024 is as follows: millions of euro| | | 12 31 2024 | | 12 31 2023 ---|---|---|---|---|--- Hedging instrument| Hedged asset | Fair value| Notional| Fair value| Notional Cross Currency IRS| Fixed rate bond in foreign currency| (18.5) 98.0| (10.7) 98.0 Total| | (18.5)98.0| (10.7)98.0 With regard to the accounting treatment, it is specified that the hedging derivative above is in cash flow hedge with full recognition in the equity reserve. In particular, the underlying of the Cross Currency IRS derivative refers to the bond at fixed rate of 14 billion yen with maturity 2036 bullet issued in 2006. A cross currency swap contract was stipulated for the entire duration of this loan, which converts the principal and interest payments from yen into euro. At December 31, 2024, the fair value of the hedge was negative for 18.5 million euro. It should be noted that a 10% positive shift in the EURJPY forward curve, with a consequent depreciation of the JPY, would result in a worsening of the fair value and, consequently, of the impact on shareholders’ equity of 10.1 million euro. Conversely, a 10% negative shift in the EURJPY forward curve, resulting in an appreciation of the JPY, would result in an improvement in fair value of 12.4 million euro. This sensitivity analysis was performed with the aim of calculating the effect of changes in the forward curve of the euro/yen exchange rate on the fair value ignoring any impact on the adjustment due to the bCVA. d. Liquidity risk Liquidity risk is the risk that the Group is unable to meet its obligations in a timely manner or that it is able to do so under unfavorable economic conditions due to situations of tension or systemic crisis or to the changed perception of its riskiness by the market. This risk includes: i) the risk related to the company’s inability to raise new funds (Funding Risk) and, ii) the risk related to the company’s inability to liquidate assets on the market in a timely manner and at market conditions (Liquidity Market Risk). 110 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements One of the main factors influencing the market’s perceived riskiness is the creditworthiness of A2A assigned by rating agencies. This judgement plays a very important role because it influences the ability of A2A to access sources of financing as well as the related costs. A deterioration in creditworthiness could lead to a limitation of access to the capital market and/or financing costs with a negative impact on the economic, financial and equity situation. A2A has a medium- and long-term rating of BBB (stable outlook) with S&P and Baa2 (stable outlook) with Moody’s. The profile of the Group’s gross debt maturities is as follows: millions of euro Accounting Balance 12 31 2024 Portions maturing within 12 months Portions maturing beyond 12 months Portions maturing by 12 31 2026 12 31 2027 12 31 2028 12 31 2029 after Bonds 4,857 354 4,503 598 298 497 397 2,713 Financial payables for rights of use* 175 42 133 32 23 20 14 44 Loans from banks and other lenders 2,240 559 1,681 925 111 107 78 460 Total 7, 2 7 2 955 6,317 1,555 432 624 489 3,217 It does not include fair value derivatives included in the net financial position. *Including finance leases The risk management policy, both in the short and medium/long term, is realized through (i) a debt management strategy diversified by funding sources with a balanced maturity profile, (ii) access to various sources of financing in terms of market and counterparty and (iii) maintenance of financial resources, consisting of both liquidity and committed credit lines, sufficient to meet expected and unexpected commitments over a given time horizon. At December 31, 2024, the Group had a total of 3,354 million euro, as follows: (i) revolving committed credit lines by the Parent Company for 1,560 million euro, of which: a) 560 million euro maturing in 2025, b) 800 million euro maturing in 2026, c) 200 million euro maturing in 2028, unused; (ii) revolving committed credit lines by Acinque S.p.A. for 45 million euro; (iii) term loan EIB available and not yet disbursed of 200 million euro maturing 2043; (iv) cash and cash equivalents totaling 1,549 million euro, including 1,323 million euro at the Parent Company level. Additionally, A2A maintains a Bond Issuance Program (Euro Medium Term Note Program), featuring a base prospectus approved by the Commission de Surveillance du Secteur Financier (CCSF), and an EMTN Program with a base prospectus approved by the National Commission for Companies and the Stock Exchange (CONSOB). The total size is 7 billion euro, jointly covering the two programs; as of December 31, 2024, there are 2,250 million euro available. Over the years, A2A has embarked on a path of issues with ESG characteristics, in the form of Green Bonds and Sustainability-Linked Bonds. For A2A, the failure to meet certain sustainability KPI (ESG) targets can lead to an increase in the financing costs of the debt instruments to which these KPIs are linked. In particular, A2A issued two Sustainability-Linked Bonds, the first in 2021 with a 10-year maturity and the second in 2022 with a 6-year maturity: for both bonds, the failure to reach the target related to the chosen KPI will result in a coupon increase of 25 basis points. In relation to the Sustainability-Linked Bond issued in 2022 with a term of 6 years and a KPI concerning the installed capacity from renewable sources, as of December 31, 2024, the target was not reached, resulting in a 25 basis point increase in the coupon from the first interest period after the publication of these financial statements. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 111 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report The following table represents the repayment schedule of financial liabilities (excluding payables for rights of use and including trade payables). The amounts shown in the table are future cash flows, nominal and non-discounted, determined with reference to the remaining contractual maturities, for the principal and interest portions. The undiscounted nominal flows of derivative contracts on interest rates are also included. Finally, any revocable financial lines used and current accounts payable are due within the next financial year. 12 31 2024millions of euro| 1 to 3 months| 4 to 12 months| beyond 12 months ---|---|---|--- Bonds | 337 67 | 5,093 Loans from banks and other lenders | | 18 172 | 1,818 Total financial flows | 355| 239 | 6,911 Payables to suppliers | 712| 40| 9 Total trade flows | 712| 40| 9 12 31 2023millions of euro| 1 to 3 months| 4 to 12 months| beyond 12 months ---|---|---|--- Bonds | 341| 67| 5,498 Loans from banks and other lenders| 21| 309| 769 Total financial flows | 362| 376| 6,267 Payables to suppliers | 872| 25| 8 Total trade flows | 872| 25| 8 e. Credit risk Credit risk relates to the possibility that a counterparty, commercial or trading, may be in default, or fail to respect its commitment in the manner and timing provided by contract. This type of risk is managed by the Group through specific procedures (Credit Policy, Energy Risk Management procedure) and appropriate mitigation actions. This risk is overseen by both the Credit Management function allocated centrally (and the corresponding functions of the operating companies) and the Group Risk Management Organizational Unit responsible for supporting the Group companies with reference to both commercial and trading activities. Risk mitigation is through the prior assessment of the creditworthiness of the counterparty and the constant verification of compliance with exposure limit as well as through the request for adequate guarantees. The credit terms granted to customers as a whole have a variety of deadlines, in accordance with applicable law and market practice. In cases of delayed payment, default interest is charged as explicitly prescribed by the underlying supply contracts or by current law (application of the default rate as per Legislative Decree 231/2002). It should be noted that there are no significant credit exposures concentrated on one or a few customers. Trade receivables are stated in the balance sheet net of any write-downs; the amount shown is considered to be a correct reflection of the realizable value of the receivables portfolio. For the aging of trade receivables, reference is made to note “Trade receivables”. f. Equity risk At December 31, 2024, the A2A Group was not exposed to equity risk. In particular, it should be noted that the parent company A2A S.p.A. did not hold any treasury shares at December 31, 2024. As prescribed by IAS/IFRS, treasury shares do not constitute an equity risk as their purchase cost is deducted from equity, and even if they are sold any gain or loss on the purchase cost does not have any effect on income statement. 112 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements g. Covenants non-compliance risk Bonds, loans, leases and committed revolving bank lines present terms and conditions in line with market practice for each type of instrument. In particular, they envisage: • negative pledge clauses whereby the parent company undertakes not to pledge its assets and those of its material subsidiaries (as defined in the relevant documentation from time to time), subject to certain exceptions and a maximum permitted threshold, specifically identified; • cross-default clauses, whereby, in the event of an event of default (exceeding specific materiality thresholds) on a specific financial indebtedness of the parent company and, in some cases, its material subsidiaries (as defined in the relevant documentation from time to time), a default also occurs on other loans or financial debt of the parent company that may become immediately due; • pari passu clauses, whereby the parent company’s bonds and financial obligations have the same level of seniority as its other present and future non-secured and non-subordinated bonds or financial obligations. The bonds issued by A2A S.p.A. include (i) senior unsecured bonds for a nominal amount of 4,750 million euro (book value at December 31, 2024 equal to 4,769 million euro) issued as part of the EMTN Program, which provide to investors a Change of Control Put option in the event of a change of control of the parent company resulting in a consequent downgrade of the rating to sub-investment grade level in the following 180 days (if within these 180 days, the company’s rating returns to investment grade, the option may not be exercised); (ii) a bond in yen placed privately with a maturity in 2036 for a nominal amount of 98 million euro (book value at December 31, 2024 equal to 88 million euro), which provides to the investor a Put option in the event that the rating of the parent company is lower at BBB- or equivalent level (sub-investment grade). In June 2024, A2A S.p.A. issued its first “hybrid” subordinated perpetual bond with a nominal value of 750 million euro. This bond is characterized by its potentially perpetual duration (with the obligation to be redeemed only in the event of certain events, including, inter alia, the dissolution or liquidation of the company) and by its subordination, according to which the instrument is subordinated to all of the company’s financial debts and has a level of “seniority” superior only to that of ordinary shares or other financial instruments qualifying as “equity”. The loans stipulated by A2A S.p.A. with the European Investment Bank (EIB), for a total nominal debt of 457 million euro (in addition to a further 200 million euro not yet disbursed) and a book value of 459 million euro, of which 146 million euro have a maturity of more than five years, include i) a credit rating clause (if rated lower than BBB- or equivalent sub-investment grade) that provides for the obligation of A2A to inform EIB in the event of a rating downgrade and, in such circumstance, the right of EIB to request additional guarantees from A2A and, where such guarantees are not provided or are not satisfactory to EIB, the right to request early repayment of the loan, and ii) a clause for the parent company’s change of control, with the right for the bank to invoke, subject to notice to the company containing the reasons, early repayment of the loan. A loan of the subsidiary Agripower (formerly Fragea), whose residual debt at December 31, 2024 was 1.4 million euro, is secured by collateral on the property and plant financed. The committed revolving bank lines of A2A S.p.A., for a total of 1,560 million euro, provide a Change of Control clause which, in the event of a change of control of the parent company causing a Material Adverse Effect, allows the majority of banks lending the line to request the line to be extinguished and any amounts drawn down to be repaid. Some Acinque, and LA CASTILLEJA ENERGIA bank loans include financial covenants, as shown in the relevant table below. At June 30, 2023, one of the three covenants in the Acinque EIB loan contract (Net Financial Debt/ Ebitda) was not met. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 113 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report With reference to the exceeding of the covenant as described above, it should be noted that Acinque requested the European Investment Bank to issue a waiver and that the Bank granted, subject to the issue by A2A S.p.A., a first demand guarantee for the entire amount financed in favor of the Bank, which took place in the second half of 2023 and with maturity on December 31, 2024. On October 31, A2A S.p.A. signed the early release of the guarantee, in agreement with the EIB, as the covenant was fulfilled earlier than expected under the granted waiver. As at December 31, 2024, this covenant was met. A2A Group - Financial covenants at December 31, 2024 Company Lender Level of reference Level recognized Date of recognition ACINQUE BEI Available cash flow/net financial debt >= 14.0% 52.59% 12/31/24 Financial debt/equity <= 75.0% 51.51% 12/31/24 Net financial debt/Ebitda <= 3.0 1.77x 12/31/24 ACINQUE Cassa Centrale Banca \- Credito Cooperativo Italiano S.p.A. Net financial debt/Ebitda <= 4.0 1.85x 12/31/24 Net financial debt/Equity <= 1.0 33.98% 12/31/24 ACINQUE Banca Sella Net financial debt/Ebitda <= 4.0 1.84x 12/31/24 ACINQUE POOL 100 million euro Net financial debt/Ebitda <= 4.0 1.84x 12/31/24 LA CASTILLEJA ENERGIA CaixaBank Debt Service Coverage Ratio >= 1.05x or not <1.10x for four consecutive Calculation Dates 1.08x 12/31/24 Senior Debt / Equity ratio <= 85% 74% 12/31/24 Analysis of forward transactions and derivatives Tests were performed to determine whether these transactions qualify for hedge accounting in accordance with International Accounting Standard IFRS 9. In particular: 1) transactions qualifying for hedge accounting under IFRS 9: can be analyzed between transactions to hedge cash flows (cash flow hedges) and transactions to hedge fair value of assets and liabilities (fair value hedges). For the cash flow hedges, the accrued result is included in gross operating margin when realized on commodity derivatives and in the financial balance for interest rate and currency derivatives, whereas the future value is shown in equity. For fair value hedge transactions, the impacts in the Income Statement are recorded within the same line of the financial statements. 2) transactions not considered as hedges for the purposes of IFRS 9, can be: a. margin hedges: for all hedging transactions of cash flows or the market value in line with internal risk policies, the accrued result and future value are included in gross operating margin for commodity derivatives and in the financial balance for interest rate and currency derivatives; b. trading transactions: the accrued result and future value are recognized above gross operating margin for commodities transactions and in financial income and expense for interest rate and currency transactions. The use of derivatives in the A2A Group is governed by a coordinated set of procedures (Energy Risk Policy, Deal Life Cycle) which are based on industry best practices and designed to limit the risk of the Group being exposed to commodity price fluctuations, based on a cash flow hedging strategy. The derivatives are measured at fair value based on the forward market curve at the balance sheet date, if the asset underlying the derivative is traded on markets with a forward pricing structure. In the absence of a forward market curve, fair value is measured on the basis of internal estimates using models that refer to industry best practices. 114 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements The A2A Group uses “continuous-time” discounting to measure fair value. As a discount factor, it uses the interest rate for risk-free assets, identified in the Euro Overnight Index Average (EONIA) rate and represented in its forward structure by the Overnight Index Swap (OIS) curve. The fair value of the cash flow hedges has been classified on the basis of the underlying derivative contracts in accordance with IFRS 9. In compliance with the provisions of IFRS 13, the fair value of an over-the-counter (OTC) financial instrument is determined taking into account the non-performance risk. To quantify the fair value adjustment attributable to this risk, A2A has, in line with best market practices, developed a proprietary model called the “bilateral Credit Value Adjustment” (bCVA), which takes into account changes in the creditworthiness of the counterpart as well as the changes in its own creditworthiness. The bCVA has two addends, calculated by considering the possibility that both counterparties go bankrupt, known as the Credit Value Adjustment (CVA) and the Debit Value Adjustment (DVA): • the CVA is a negative component and contemplates the probability that the counterparty will default and at the same time that A2A has a receivable due from the counterparty; • the DVA is a positive component and contemplates the probability that A2A will default and at the same time that the counterparty has a receivable due from A2A. The bCVA is therefore calculated with reference to the exposure, measured on the basis of the market value of the derivative at the time of the default, the Probability of Default (PD) and the Loss Given Default (LGD). This latter item, which represents the non- recoverable portion of the receivable in the case of default, is measured on the basis of the IRB Foundation Methodology as stated in the Basel 2 accords, whereas the PD is measured on the basis of the rating of the counterparties (internal rating based where not available) and the historic probability of default associated with this and published annually by Standard & Poor’s. Applying the above method did not result in significant changes in fair value measurements. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 115 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Instruments outstanding at December 31, 2024 A) On interest and exchange rates The following analyses show the notional amounts of derivative contracts stipulated and not expired at the reporting date, by maturity: millions of euro Notional value (a) Balance sheet value (b) Progressive effect to Income statement (c) Due within 1 year Due in 1 to 5 years Due over 5 years to be received to be paid to be received to be paid to be received to be paid Interest rate risk management cash flow hedges as per IFRS 9 4.2 109.4 207.6 2.9 - not considered hedges as per IFRS 9 Total derivatives on interest rates - 4.2 - 109.4 - 207.6 2.9 - Exchange rate risk management considered hedges as per IFRS 9 \- on commercial transactions \- on non-commercial transactions 98.0 (18.5) not considered hedges as per IFRS 9 \- on commercial transactions \- on non-commercial transactions Total derivatives on exchange rates - - - - - 98.0 (18.5) - (a) Represents the sum of the notional value of the elementary contracts that derive from any dismantling of complex contracts. (b) Represents the net receivable (+) or payable (-) recognized in the balance sheet following the measurement of derivatives at fair value. (c) Represents the adjustment of derivatives to fair value recognized progressively over time in the Income Statement from stipulation of the contract until the current date. 116 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements B) On commodities The following is an analysis of the commodity derivative contracts outstanding at the balance sheet date set up for the purpose of managing the risk of the fluctuations in the market prices of commodities. Volume by Maturity Notional Value Fair Value Due within 1 year Due within two years Due within five years Due after five years Balance sheet value (*) Progressive effect to Income statement (**) Energy product price risk management Unit of measurement Quantity Millions of euro Millions of euro Millions of euro A. Cash flow hedges as per IFRS 9, including: (11.2) - \- Electricity TWh 4.7 0.1 0.1 0.1 54.2 (3.6) \- Oil Bbl \- Coal Tonnes \- Natural Gas TWh 0.5 0.4 29.3 (8.8) \- Natural Gas Millions of cubic meters \- Exchange rate Millions of dollars \- Emission rights Tons 180,000 54,000 16.1 1.2 B. considered fair value hedges as per IFRS 9 - - C. not considered hedges as per IFRS 9 of which 109.7 135.4 C.1 hedge margin (0.5) (1.6) \- Electricity TWh 0.2 0.2 3.0 (0.5) (0.5) \- Oil Bbl \- Natural Gas Degrees day \- Natural Gas TWh 2.5 \- CO2 emission rights Tons 5,000 0.3 (1.1) \- Exchange rate Millions of dollars C.2 trading transactions 110.2 137.0 \- Electricity TWh 39.3 6.5 1.5 1.1 4,333.7 44.9 119.6 \- Natural Gas TWh 106.8 25.7 3.5 5,296.4 64.9 17.0 \- CO2 emission rights Tons 33,682,200 116,000 2,287.1 0.4 0.4 \- Environmental Certificates MWh \- Environmental Certificates Tep Total 98.5 135.4 (*) Represents the net receivable (+) or payable (-) recognized in the balance sheet following the measurement of derivatives at fair value. (**) Represents the adjustment of derivatives to fair value recognized over time in the Income Statement from stipulation of the contract to the present date. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 117 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Balance sheet and income statement effects of derivative trading at December 31, 2024 Effects on the balance sheet The following table shows the balance sheet figures at December 31, 2024, for derivative transactions. millions of euro| Notes | Total ---|---|--- Assets| | Non-current assets | | 2 Other non-current assets - Derivatives | 5| 2 Current assets | | 866 Other current assets - Derivatives | 8| 866 Total assets | | 868 millions of euro| Notes | Total ---|---|--- Liabilities| | Non-current liabilities | | 19 Other non-current liabilities - Derivatives | 18| 19 Current liabilities | | 767 Trade payables and other current liabilities - Derivatives | 19| 767 Total liabilities | | 786 118 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Effect on the income statement The following table sets out the income statement figures at December 31, 2024 arising from the management of derivatives. millions of euro| Notes| Realized during the year(1)| Change in fair value during the year| Amounts recognized in the income statement ---|---|---|---|--- Revenues | 25| | | Revenues from the sale of goods| | | | Energy product price risk management and exchange rate risk management on commodities| | | | \- considered hedges as per IFRS 9 | | 31| -| 31 \- not considered hedges as per IFRS 9 | | 160| (2,102)| (1,942) Revenues from the sale of goods | | 191| (2,102)| (1,911) Operating expenses | 26| | | Expenses for raw materials and services| | | | Energy product price risk management and exchange rate risk management on commodities| | | | \- considered hedges as per IFRS 9 | | (12)| -| (12) \- not considered hedges as per IFRS 9 | | (331)| 2,237| 1,906 Total costs for raw materials and services | | (343)| 2,237| 1,894 Total recognized in Gross operating income (*)| | (152)| 135| (17) Financial balance | 32| | | Financial income| | | | Interest rate risk management and equity risk management | | | | Income on derivatives| | | | \- considered hedges as per IFRS 9 | | -| -| - \- not considered hedges as per IFRS 9 | | 5| -| 5 Total | | 5| -| 5 Total Financial income | | 5| -| 5 Financial expenses| | | | Interest rate risk management and equity risk management | | | | Expenses on derivatives| | | | \- considered hedges as per IFRS 9 | | -| -| - \- not considered hedges as per IFRS 9 | | -| -| - Total | | -| -| - Total Financial expenses | | -| -| - Total recognized in financial balance| | 5| -| 5 (1) Made without physical delivery. (*) The figures do not include the effect of the net presentation of the negotiation margin of trading activities Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 119 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Classes of financial instruments To complete the analyses required by IFRS 7 and IFRS 13, the following table sets out the various types of financial instrument that are to be found in the various balance sheet items, with an indication of the accounting policies used and, in the case of financial instruments measured at fair value, an indication of where changes are recognized (income statement or equity). The last column of the table shows the fair value of the instrument at December 31, 2024, where applicable. Criteria to measure the reported amount of financial instruments millions of euro Notes Financial instruments measured at fair value with changes recognized in: Financial instruments measured at amortized cost Statement of Financial Position Value Fair value (*) Income statement Equity (1) (2) (3) (4) Assets Other non-current financial assets Financial assets measured at fair value of which: -unlisted 2 2 n,d, -listed - - Financial assets held to maturity - - - Other non-current financial assets 73 13 86 86 Total other non-current financial assets 3 88 Other non-current assets 5 2 128 130 130 Trade receivables 7 3,643 3,643 3,643 Other current assets 8 864 2 430 1,296 1,296 Current financial assets 9 32 32 32 Cash and cash equivalents 11 1,549 1,549 1,549 Liabilities Financial liabilities Non-current and current bonds 17 and 22 86 4,771 4,857 4,857 Other non-current and current financial liabilities 17 and 22 2,415 2,415 2,415 Other non-current liabilities 20 19 133 152 152 Trade payables 21 3,682 3,682 3,682 Other current liabilities 21 753 14 624 1,391 1,391 (*) The fair value has not been calculated for receivables and payables not related to derivative contracts and loans as the corresponding carrying amount is a good approximation to this. (1) Financial assets and liabilities measured at fair value with the changes in fair value recognized in the Income Statement. (2) Cash flow hedges. (3) Financial assets available for sale measured at fair value with profit/loss recognized in equity. (4) Loans and receivables and financial liabilities measured at amortized cost. 120 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Fair value hierarchy IFRS 7 and IFRS 13 require that fair value classification of financial instruments to be based on the quality of the input source used to calculate the fair value. In particular, IFRS 7 and IFRS 13 set out three levels of fair value: • level 1: this level consists of financial assets and liabilities for which fair value is based on (unadjusted) prices for identical assets or liabilities quoted on active official or over-the-counter markets; • level 2: this level consists of financial assets and liabilities for which fair value is based on inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly or indirectly; • level 3: this level consists of financial assets and liabilities for which fair value is based on unobservable market data. This level includes instruments measured on the basis of internal estimates made using proprietary methods based on sector best practice. An analysis of the assets and liabilities included in the three fair value levels is set out in the following fair value hierarchy table. millions of euro| Note| Level 1 | Level 2 Level 3| Total ---|---|---|---|--- Assets measured at fair value | 3| 35 | 2 | | 37 Other non-current assets | 5| | 2 | | 2 Other current assets | 8| 850 | 2 | 14 | 866 Shareholdings measured at fair value with contra-entry to equity| 11| | | | - Total assets | | 885 | 6 | 14 | 905 millions of euro| Note| Level 1 | Level 2 | Level 3| Total ---|---|---|---|---|--- Non-current financial liabilities| 17| 86 | | | 86 Other non-current liabilities | 20| | 19 | 133| 152 Current financial liabilities | 22| | | | \- Other current liabilities | 21| 739 | 5 | 23 | 767 Total liabilities | | 825 | 24 | 156 | 1,005 Sensitivity analysis for financial instruments included in level 3 As required by IFRS 13, the following table sets out the effects arising from changes in the unobservable parameters used in calculating fair value for financial instruments included in level 3 of the hierarchy. Financial instrument| Parameter| Parameter change| Sensitivity(millions of euro) ---|---|---|--- Commodity Derivatives| Probability of Default (PD)| 1%| (0.016) Commodity Derivatives| Loss Given Default (LGD)| 25%| (0.085) Commodity Derivatives| Price of underlying | 1%| 0.165 Commodity Derivatives| Volatility of underlying| 1%| (0.792) Commodity Derivatives| Correlation of underlying| 1%| (0.780) Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 121 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 7) Main regulatory provisions regarding concessions and agreements in the sectors of activity in which the A2A Group operates Large hydroelectric derivation concessions The national discipline on large derivation hydroelectric concessions (i.e. plants with a nominal power greater than 3 MW) was originally dictated by R.D. 1775/1933, which was based on the issuance of concessions by the State on a long-term basis. This regulatory framework was subsequently superseded first by electricity sector nationalization Law no. 1643/1962, which resulted in Enel taking over the majority 3 of hydroelectric concessions with the relative recognition of an unlimited duration, and then by the liberalization of the market as a result of Legislative Decree 79/1999 (implementing Directive 96/92/EC), which introduced with art. 12 (and subsequent amendments) the principles of: • the temporariness of the concessions, establishing a validity period (2029) for concessions without expiration because they are owned by Enel and assigning the term of December 31, 2010 for concessions that have already expired or are expiring by that date; • contestability of concessions in the event of expiration, forfeiture or renunciation, providing the call for tenders by the competent administration (now the Region) for the allocation of the same for consideration. Article 11-quater of Law 12/2019 has partially further amended the regulation of large-scale hydroelectric concessions: the new rules provide that the Regions regulate with their own laws the methods, procedures and criteria for the allocation of concessions, which may be entrusted to economic operators identified through a tender, or to public/private joint ventures with selection of the private partner through a tender, or through forms of partnership under Legislative Decree 50/2016 and (now Legislative Decree 36/2023). Article 7 of Law 118/2022 (Annual Law for the Market and Competition 2021) established that the procedure for awarding the contract must be started within 2 years of the entry into force of the individual Regional Laws and, in any case, no later than December 31, 2023. The duration of the new concessions will have to be between 20 and 40 years, with the possible extension of the maximum period by a further 10 years depending on the complexity of the project proposal and the amount of investment. Article 11-quater cited (paragraph 1-quinquies), as part of the new process for reallocating expired concessions, stipulates that specific regional regulations (after consultation with ARERA) are established: • a State fee to be paid on a six-monthly basis to the Regions, comprising a fixed component linked to the average nominal power of the concession and a variable calculated as a percentage of normalized revenues; • the possible obligation for the concessionaires to supply annually and free of charge 220 kWh per kW of concession power for at least 50% destined to public services of the provincial territories involved in the derivation. In terms of compensation to outgoing operators, article 11-quater prescribes: • for wet works: the transfer without compensation of ownership to the Regions, except for the compensation only of investments not yet amortized; • for dry works, the recognition of a value derived from accounting records or certified appraisal. In the event of non-inclusion in the project of the incoming concessionaire, removal and disposal of movable property is envisaged at the expense of the latter, while immovable property remains the property of the entitled parties. Lombardy Region approved R.L. 5/2020 (as amended by Regional Law 19/2021), which regulates the modalities and procedures for assigning concessions for large hydroelectric derivations. This law also defines the reconnaissance activity aimed at subsequent tendering. Subsequently, the Lombardy Region adopted Regulation 3/2022 for the preliminary procedures for the assessment of the public interest in relation to the various uses of water, as well as Regulation 9/2022 regulating the timing and procedures for the allocation procedures, a regulation that was later challenged before the Superior Court of Public Waters by a number of operators (the case is still pending). 3 With the exception of derivations in the ownership of self-producers, municipal companies and local authorities. 122 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Most of A2A S.p.A. large-scale hydroelectric derivation concessions located in Valtellina (for a nominal concession power of around 215 MW) have expired; Lombardy Region with Regional Council Resolution XII/3744 of December 30, 2024 allowed the temporary continuation of its operation until December 31, 2025, or shorter term, should the reassignment procedures, not yet started, be concluded at an earlier date, confirming the payment of an additional fee and the non-application of the partial exemption from the state fee on the Premadio 1, Grosio, Lovero and Stazzona plants. With reference to the Resio (BS) concession, owned by Linea Green S.p.A. (a wholly-owned subsidiary of A2A S.p.A.), the Lombardy Region announced with R.C.R. 1602 of December 18, 2023, the reassignment procedure, with publication of the call for tenders on April 22, 2024. The appeals lodged by Linea Green S.p.A., A2A S.p.A., and Elettricità Futura concerning this procedure, in which Linea Green S.p.A. itself and five other operators (one of which is foreign) took part, remain under consideration. The tender procedure is still underway. Other A2A S.p.A. concessions (plants in Mese, Friuli and Calabria for a total nominal concession capacity of about 358 MW) expire in 2029, as the Gravedona concession of Acinque Innovazione S.r.l. (Acinque Group), also with an expiry date of 2029. Concessions for thermoelectric power plants As far as concessions for thermoelectric power plants are concerned, the relevant regulations have evolved in a very heterogeneous manner. For example, with reference to concessions for the derivation of public water for industrial use, the discipline was initially defined by Law no. 2644/1884 and by Royal Decree 1775/1933 to subsequently have an outline on a more local basis also through agreements with specific consortia of reclamation and irrigation. The granting bodies may be identified alternatively in the Region and in the Province for concessions for the derivation of public water and for those relating to the occupation of state-owned areas and in the Port Authorities for concessions relating to the occupation of maritime state-owned areas. A2A Energiefuture S.p.A. and A2A gencogas S.p.A. hold the following types of concessions for the operation of their own thermoelectric power plants: • concessions for the derivation of public water: (i) for the cooling of thermoelectric power plants; (ii) for industrial use; (iii) for other uses; • concessions for the occupation of: (i) state-owned areas; (ii) maritime state-owned areas. Natural gas distribution and metering service The regulations governing concessions for the distribution of natural gas through local networks, initially contained in the deeds of award stipulated with the municipalities in implementation of laws of principle dated back to the early 1900s, have been the subject of numerous amendments over the years. The main ones, introduced by Articles 14 and 15 of Legislative Decree 164/2000 (transposing Directive 98/30/EC), defined the criteria for standardizing the sector providing: (i) a maximum duration of 12 years for concessions, (ii) the award of the service by local authorities through a public tender and (iii) the relationship with the operator is regulated by a specific standard contract approved by ministerial decree containing, in particular, the procedures for performing the service, the quality objectives, the economic aspects and the conditions for early termination of the company for failure by the operator. Subsequently, Article 46-bis of LD 159/2007 delegated the Ministers of economic development and for regional affairs and local autonomies, having heard the Unified Conference and on the advice of the Authority for electricity and gas (now ARERA), to define the criteria for holding the tenders, establishing that they no longer be carried out by individual Municipality but by Minimum Territorial Areas (ATEM), subsequently identified as 177 by MiSE MD of January 19, 2011, while the subsequent MD October 18, 2011 defined the Municipalities belonging to each ATEM. Finally, MD 226/2011 defined the tender criteria. Over the years, the regulations have been subject to many innovations (inter alia, see the Annual Market and Competition Law 2021), especially with reference to the provisions for defining the redemption value to be recognized to the outgoing operator and the valorization of the assets owned by the Conceding Entities, and the terms within which the tenders must be announced, extended several times, and the penalties originally envisaged for the Conceding Entities in the event of non-compliance have been eliminated. Finally, the same law referenced above required the Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 123 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report responsible Ministry to conduct a review of tender evaluation criteria, incorporating considerations of technological innovation and sector development. As far as the A2A Group is concerned, the natural gas distribution concessions are held by Unareti S.p.A., Azienda Servizi Valtrompia S.p.A., LD Reti S.r.l. 4 , RetiPiù S.r.l. (AEB Group), in addition to Lereti S.p.A. and Reti Valtellina Valchiavenna S.r.l. (two companies of the Acinque Group). The main contracts relate to the ATEM of Milan 1 (where Unareti S.p.A. is assignee of the service following a tender launched pursuant to MD 226/2011) and the provincial capitals of Cremona 5 , Brescia, Bergamo, 6 Lodi, Varese, Lecco, Sondrio and Monza (as well as numerous municipalities, in the provinces of Brescia, Bergamo, Como, Cremona, Lecco, Lodi, Monza-Brianza, Pavia, Varese). Concession for the distribution and metering of electricity service Pursuant to art. 9 of Legislative Decree 79/1999 the electricity distribution service is carried out under a thirty-year concession granted by the Ministry of Economic Development (now MASE) for each municipal area. The Legislator has established an interim scheme for distributors already operating at the time, recognizing the possibility to continue their services based on concessions issued by March 31, 2001, and valid until December 31, 2030. Upon conclusion of the interim period, the Legislative Decree 79/1999 mandates that new concessions be issued through tenders, to be initiated no later than five years prior to their expiration. These should cover areas at least the size of the municipal territory and not exceed a quarter of all final customers. A regulation from the Minister of Economic Development will determine the procedures, conditions, and criteria, including the compensation for investments recognized to the previous concessionaire, for new concessions granted after December 31, 2030. The 2025 Budget Law (Articles 50 to 53) has addressed the matter by requiring that MASE, in agreement with the Ministry of Economy and Finance (MEF), on ARERA’s proposal and with prior agreement concerning the aspects of their competence in the Unified Conference as per Article 8 of the Legislative Decree 281/1997, and after receiving the opinion of the appropriate parliamentary commissions, draft, by June 2025, a decree to define the terms and procedures for the submission by concessionaires of extraordinary multi-year investment plans to improve security, resilience, and quality of service, as well as to enable increasing integration into the renewable energy system. The decree must also contain criteria for the evaluation and approval of such plans. If MASE, after consulting ARERA and MEF, gives a positive opinion on the operator’s proposal, the concession, upon payment of a fee that will be counted in the capital investment, can be adjusted for a period of no more than 20 years, thus postponing the expiration to 2050 at the latest. As far as the A2A Group is concerned, the electricity distribution and metering concessions are held by Unareti S.p.A., Camuna Energia S.r.l., LD Reti S.r.l., RetiPiù S.r.l. (AEB Group) and Reti Valtellina Valchiavenna S.r.l. (Acinque Group) and Duereti S.r.l. 7 and concern the municipalities of Milan, Brescia, Cremona Seregno and Sondrio (in addition to numerous municipalities in the province of Milano, Brescia and Sondrio). Integrated Water Service (SII) In accordance with the provisions of Legislative Decree 152/2006, the SII is organized on the basis of Optimal Territorial Ambits (ATO) defined by the Regions and, as a rule, coinciding with the provincial territory. In compliance with the scope plan and the principle of a single management, the Ambit Government Entity (EGA) decides on the form of management (award by tender, mixed public-private company and in house providing) and, consequently, provides for the award, for 30 years, of the SII in compliance with national regulations on the organization of local public services to networks of economic importance. The direct award may be made to entirely public companies that meet the 4 In the course of reorganising the Group’s infrastructural activities, it is intended that by mid-2025, the business unit associated with natural gas distribution will be spun off into a newly created company, which will then be sold to the Ascopiave Group. 5 Determination no. 733 of November 21, 2023 revoked the ATEM CR2-3 Call for Tenders, published in 2015. 6 Brescia, Bergamo, and Cremona, the provincial capitals, along with other smaller municipalities, are included in the process of reorganising the Group’s infrastructure activities and will also be transferred to the Ascopiave Group by 2025. 7 On March 9, 2024, e-distribuzione S.p.A. and A2A S.p.A. signed an agreement that provides for the transfer to the newly established company Duereti S.r.l. of the business unit owned by e-distribuzione S.p.A., comprising assets for operating the medium- and low-voltage power distribution network in the provinces of Milan (excluding some municipalities in the northern belt) and Brescia (Valtrompia municipalities), starting from January 1, 2025. 124 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements requirements of European law and are in any case owned by the local authorities covered by the ATO. LD 201/2011 (so-called ‘Salva Italia’) entrusted ARERA with the regulatory and control competences in the SII. The Authority has introduced significant innovations, providing for Consolidated Texts on tariff preparation, technical quality, contractual quality, user fee structure, arrears, social bonus and metering rules. The SII is applied art. 34 of Law Decree 179/2012 supplemented by Law 115/2015 (Article 8, paragraph 1), which establishes mandatory principles for local authorities for the award of services and regulates the transitional period of pre-existing awards validly absent. In particular, it is envisaged that the award of services provided by listed companies and subsidiaries of listed companies (such as those held by subsidiaries of A2A S.p.A.) will cease upon expiry of the service contract or other acts governing the relationship. LD 133/2014 (“Sblocca Italia” Decree) provided that, at the time of first application, the EGA, in order to ensure the achievement of the principle of single management within the ATO, provide for the award to the single operator of the area at the end of the existing management, operating on the basis of an award approved in accordance with the legislation pro tempore in force and not declared ceased pursuant to law. The legislator provided for certain exceptions to the establishment of the single operator by the EGA: in particular, in the event that the ATO coincides with the regional territory, it is allowed to award the SII in territorial areas, however, not less than the territory corresponding to the provinces or metropolitan cities. The Legislative Decree 201/2022 also applies to the SII, as it is a public network service. The A2A Group carries out the SII, through its subsidiaries and safeguarded companies in accordance with Legislative Decree 152/2006, in Brescia and in several municipalities of the province by means of A2A Ciclo Idrico S.p.A. 8 and Lereti S.p.A. (Acinque Group) in Varese and Como, along with several municipalities in the respective provinces 9 . District heating In Italy, there is no comprehensive legislative framework defining the way in which the district heating service is to be awarded, since neither the national legislator nor the administrative case-law in its rulings have unambiguously considered district heating as a local public service. Applicable to the service is Legislative Decree 201/2022\. In Lombardy, an initial discipline is dictated by Regional Law 26/2003\. In such a poorly defined regulatory context, the local authority that considers this service as a local public service regulates it using licensing schemes and, in previous years, also authorizing schemes. In other cases, the municipalities do not assume district heating as a public service and, therefore, regulate different aspects such as the use of the subsoil. In cases where district heating is used as a public service, the relationship between the municipality and the operator is governed by agreements or service contracts with which the granting body has awarded the management within the municipality, providing for a fee and certain rules for the provision of the service, for a period that is ordinarily long in view of the underlying investments, also conferring exclusive management. Legislative Decree 102/2014, which implements Directive 2012/27/EC on energy efficiency, conferred specific regulatory and supervisory authority to ARERA under Articles 9, 10, and 16, also covering the district heating and cooling sector. A recent amendment introduced by Article 47-bis of Law 41/2023 additionally mandated the introduction of a cost-reflective tariff regulation for district heating. ARERA Resolution 638/2023/R/tlr approved the TLR Tariff Methodology, which defines a transitional economic regulation for 2024, based on a revenue constraint calculated using the avoided cost methodology (gas) for the end customer. Subsequently, Resolution 597/2024/R/tlr extended this methodology’s application until December 31, 2025. 8 The Brescia EGA concluded the preliminary investigation process regarding the rotation in the management of the concessions previously granted to A2A Ciclo Idrico S.p.A. that had reached their natural expiry date and/or had been aggregated and the consequent sale of the business compendium instrumental to them after liquidation of the residual industrial value, as defined in application of the ARERA Resolutions, to Acque Bresciane S.r.l., a totally public company established in 2017. The 12 municipalities concerned are Bassano Bresciano, Bedizzole, Isorella, Manerbio, Milzano, Offlaga, Remedello, Roncadelle, San Gervasio Bresciano, San Zeno, Verolavecchia and Visano. Currently, the management has remained with A2A Ciclo Idrico S.p.A. in implementation of the regulatory provisions due to the non-payment of the residual industrial value. 9 In the ATO of Como, Como Acqua S.r.l, a totally public company established to manage the SII in the Province, took over from Lereti S.p.A. the management of the aqueduct service in the Municipality of Cernobbio as of January 1, 2023. In the Varese ATO, the concessions for the municipalities of Azzate, Barasso, Casciago, and Luvinate expired on December 31, 2024. Steps are underway to define the business unit that will be transferred to the sole operator Alfa S.r.l.. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 125 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report In addition, in recent years, the Authority has intervened, regulating various areas of the service, including: i. price transparency through the definition of minimum contents of supply contracts and the introduction of information obligations for operators; ii. commercial quality by introducing specific obligations for operators (compliance with specific and general levels, compensation); iii. technical quality in relation to security and continuity and the quality of metering, introducing service obligations and quality standards for the metering of energy supplied to users. As far as the A2A Group is concerned, the service is managed by A2A Calore & Servizi S.r.l. and by Gelsia S.r.l. 10 (AEB Group), and for the Acinque Group by Comocalor S.p.A., by Acinque Tecnologie S.p.A. and Acinque Energy Greenway S.r.l.. The main municipalities that use the service are Bergamo, Brescia, Milan, Cremona (as well as some municipalities in the same provinces including Crema, Sesto San Giovanni, Cologno Monzese), Lodi, Varese, Como, Lecco (here also in the municipalities of Valmadrera and Malgrate 11 ), Monza, Seregno and Giussano. Public lighting The public lighting service includes the management of systems (operation, maintenance and periodic checks) as well as the supply of electricity to supply the lighting points, as well as the implementation of modernization and energy requalification interventions. Even for public lighting, as for district heating, there is no detailed regulatory framework. Local authorities that also identify this service as a local public service of economic importance must comply with art. 34 of LD 179/2012 and subsequent amendments and Legislative Decree 201/2022 and, therefore, entrust the service in conformity with community principles, also availing itself of the provisions dictated by the Code of Public Contracts under Legislative Decree 36/2023. As highlighted by the Annex to Ministerial Decree of March 28, 2018 that disciplines the “Minimum environmental criteria of public lighting services” (CAM) as amended and supplemented, in implementation of a general principle of the law, the duration of the service to be awarded must be commensurate with the activities included in the contract, the degree of economic exposure envisaged and, therefore, the time needed to amortize the investment plan. The A2A Group manages the public lighting service 12 through A2A Illuminazione Pubblica S.p.A. (AEB Group) in Milan, Brescia, Bergamo, and Treviso, as well as in numerous municipalities in the provinces of Lombardy, including Busto Arsizio, Seregno, and Cologno Monzese, along with locations in Piedmont and some regions of southern Italy. The service is overseen by Acinque Group companies in Monza and across multiple municipalities in the provinces of Milan, Monza-Brianza, Lecco, Varese, and Messina (Acinque Tecnologie S.p.A.), as well as in Sondrio and certain municipalities of that province (Reti Valtellina Valchiavenna S.r.l.). Management of the municipal hygiene service Environmental services are related to the case of local public services of economic importance and the procedures for awarding them are governed by art. 202 of Legislative Decree 152/2006 and by art. 34 of Law Decree 179/2012 as well as by Legislative Decree 201/2022\. The services of collection, transport, sweeping and washing of roads, recovery and disposal of waste are regulated by a specific service contract with the granting Municipality aimed at defining the essential elements of the award including the duration of management, the economic aspects of the contractual relationship as well as the organizational and management methods of the service and the quantitative and qualitative levels of the services provided. In defining the concessionary relationship, the Granting Body takes into account the achievement of objectives of efficiency, effectiveness and cost-effectiveness of the service. Budget Law 2018 entrusted ARERA with the regulatory and control powers in the waste sector, including mixed, urban and assimilated waste: Resolution 389/2023/R/rif defined the criteria for the recognition of the efficient operating and investment costs of the integrated waste service for the 10 Gelsia S.r.l. operates district heating services not under a concession but under private initiatives. 11 The design, development, and management of district heating in the municipalities of Lecco, Malgrate, and Valmadrera will be carried out by Acinque Energy Greenway S.r.l., a company owned by Acinque Tecnologie S.p.A. (70%) and Silea S.p.A. (30%). 12 Inclusive for some municipalities also the management of traffic lights and votive lamps. 126 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements period 2024-2025 (MTR-2), setting the criteria for defining the access tariffs to the treatment plants of mixed waste and OFMSW. In addition, Resolution 15/2022/R/rif introduced the Consolidated Act for the regulation of the quality of municipal waste management for the period 2023-2025, providing for a set of contractual and technical quality obligations, minimum and homogeneous for all management, flanked by quality indicators and related general standards differentiated by regulatory schemes, identified in relation to the actual starting quality level guaranteed to users in the various management schemes. Lombardy Region has organized integrated waste management using the provisions of art. 200, paragraph 7, of Legislative Decree 152/2006, i.e. without the establishment of any Optimal Territorial Area (ATO) and attributing to the municipalities the competences for entrusting the service, which they exercise individually or in associated form. In addition, with Council Resolution XII/2373 of May 20, 2024 (in continuity with what was already established with Council Resolution no. 5777/2021), the Region complied with the provisions of ARERA Resolution no. 363/2021/R/rif, declaring the treatment plants for mixed waste and OFMSW to be “additional” (i.e., whose access fees are not determined by ARERA). The Region has, however, strengthened the monitoring obligations of plant operators, reserving the possibility of revising said declaration during the biennial updating of tariffs and following any changes in market conditions and the adoption of the National Waste Management Plan. ARERA also published Resolution no. 385/2023/R/rif on the adoption of the “Standard scheme of the service contract for the regulation of relations between entrusting bodies and managers of the municipal waste service”, defining the minimum essential contents required by current legislation, without prejudice to the contractual autonomy of the Parties in regulating further contents, in compliance with current legislation and regulatory measures. Resolution 596/2024/R/rif also approved “the standard framework for the call for tenders”. The urban hygiene service is provided by Amsa S.p.A. and Aprica S.p.A. 13 , subsidiaries of A2A Ambiente S.p.A., by Gelsia Ambiente S.r.l. (AEB Group) and by Acinque Ambiente S.r.l. (Acinque Group). The main awards concern Lombardy (municipalities of Milan 14 , Brescia, Bergamo, Como, Cremona and Lodi with different deadlines based on the deeds governing the relationship with the individual municipalities) and East Liguria and in Valle d’Aosta. 13 Linea Gestioni S.r.l. was incorporated into Aprica S.p.A. on December 31, 2023. 14 Following the award of the tender for the management of the urban hygiene service in the Municipality of Milan (announced with Determination to contract no. 12344 dated of December 30, 2021), Amsa S.p.A. is the holder of the new service commenced on September 28, 2024. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 127 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 8) Update of the main legal and tax disputes still pending Adequate provisions are provided where necessary for the disputes and litigation described below. It is noted that if there is no explicit reference to the presence of a provision, the Group assessed the corresponding risk as possible without appropriating provisions in the financial statements. It should be noted that certain disputes illustrated in previous financial statements and still pending are not further reported due to the absence of updates or the modification of the previous risk situation. A2A S.p.A. Reorganization of Edison - compensation cases Carlo Tassara: first lawsuit for damages against EDF and A2A S.p.A.. First and second instance On March 24, 2015, Carlo Tassara S.p.A. notified A2A, Electricité de France (EDF) and Edison a summons requesting the Court of Milan to condemn A2A and EDF to compensation for damages allegedly suffered by Carlo Tassara, in its capacity as minority shareholder of Edison, in relation to the mandatory tender offer launched by EDF on Edison shares consequently to the transaction by which, in 2012, A2A sold its indirect shareholding in Edison to EDF and simultaneously acquired 70% of the capital of Edipower from Edison and Alpiq. In the summons notified, Carlo Tassara complained that, in the transaction, EDF and A2A agreed on a mutual “discount” on the price paid by EDF for the purchase of Edison shares, on the one hand, and on the price paid by A2A for the purchase of 70% of Edipower, on the other. This discount was expected to be the result of abusive conduct by EDF and A2A as shareholders of Edison and the violation, among other things, of the regulations on transactions with related parties. This - according to Carlo Tassara - was expected to allow maintaining artificially low the price of the Edison shares paid to A2A and consequently the tender offer price paid to minorities of Edison (which by law was expected to be equal to that paid to A2A). The writ of summons did not quantify the damage allegedly suffered by Carlo Tassara as a result of such transactions. However, with brief on February 20, 2017, Carlo Tassara requested the judge (who rejected the preliminary request) to have an expert witness to calculate the damages (specifying that they should have been quantified in the alleged difference between the tender offer price and the market value that the Edison shares had previously). Carlo Tassara also filed an appraisal in which such damages were quantified in a total amount between 197 and 232 million euro, amount to calculate the compensation due from each of the companies that will be considered responsible by the judge. After several postponements justified also by modifications of the judge, on October 17, 2018, the judge rejected the requests for investigation of the plaintiffs, setting March 19, 2019 as the hearing for clarification of conclusions. On September 8, 2021, the Milan Business Court filed Sentence 7859 rejecting all of the claims made by Carlo Tassara S.p.A., without accepting the reconstruction according to which the shareholders acted to cause an undervaluation of Edison and Edipower. According to the Business Court of First Instance, in the case submitted, the conditions for assessing management and coordination were not met. The Court also found that the price of Edison shares, at which EDF purchased its shares during the tender offer, was not subject to review because it was the price defined by Consob pursuant to article 106 of the TUF; the sentence also highlights the difference between the price of Edison shares and the value of the Edipower subsidiary and, more importantly, the price at which the latter was sold to A2A. Carlo Tassara S.p.A. served a writ of summons on the appeal and A2A S.p.A. entered an appearance requesting that the Tassara S.p.A. appeal be declared inadmissible as well as groundless, and re-proposed the exceptions, defenses and requests raised in the first level of judgement for full protection. At the first hearing on March 2, 2022, the judge adjourned the case for clarification of conclusions and the hearing as a result of the adjournments to May 8, 2024. During this hearing, conducted in written form, the deadlines for the submission of statements were established. The case was deliberated in the Council Chamber on September 12, and on October 24, 2024, the Court of Appeal delivered a judgment dismissing all grounds for appeal and ordering Carlo Tassara S.p.A. to reimburse litigation expenses, as quantified by the judgment. 128 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements The judgment was notified, and in the resulting short-term timeframe, Carlo Tassara S.p.A. was given a deadline of January 17, 2025, for the service of the application to the Court of Cassation. However, Carlo Tassara S.p.A. did not proceed with notifying the appeal to the Court of Cassation. Therefore, the judgment has become final. Carlo Tassara: second lawsuit for damages against Transalpina dell’Energia and A2A S.p.A. On April 14, 2022, Carlo Tassara S.p.A. served a new summons on the Business Court of Milan, requesting that Transalpina Di Energia and A2A be ordered, jointly and severally with each other, to pay Carlo Tassara S.p.A. the damages that will be quantified in the course of the proceedings, after ascertaining and declaring the liability of the two companies for the breach of article 106 TUF (Total Tender Offer). In the writ of summons, Carlo Tassara S.p.A. quantifies the damage caused by the write-down of the value of its equity investment in Edison at 316,843,562.97 euro, figure resulting from the theoretical value of the tender offer calculated by Carlo Tassara S.p.A. on the basis of: a) Value of Edison shares recorded in the financial statements by TDE and A2A (1.5003 euro/share); b) Value assigned by Edison in fair value appraisals (1.3 euro/share); c) Highest edict value identified by Consob (0.95 euro/share); d) Market value to be defined by the Court. The writ of summons provides a description of the facts related to the extraordinary transaction to be ascertained: (i) the avoidance and violation of article 106 of the TUF and (ii) the demonstration of the existence of an alleged pact between the two defendants to depress Edison’s value, prior to launching a takeover bid - with the consequent violation of the rule protecting minority shareholders of listed companies and non-achievement of the latter of: (i) control price and (ii) market price of the Edison shares held by Carlo Tassara S.p.A.. In anticipation of the first hearing set for January 11, 2023, A2A entered an appearance and illustrated the grounds for the rejection of the appeal. At the hearing, the judge declared the default of TDE (which did not enter an appearance and did not appear at the hearing) and, on January 12, 2023, with an order outside the hearing, adjourned the case for the definition of the conclusions to July 4, 2023, in order to allow the panel, before considering the merits of the deeded claims, to examine the procedural objections raised by A2A. After said hearing, the parties were able to file their pleadings. On March 1, 2024, a non-definitive judgment was filed, putting the case back on the docket for the continuation of the preliminary investigation phase, and rejecting the preliminary objections of inadmissibility of the claim, lack of standing of A2A, and lis pendens. In 2024, two hearings took place on March 12 and June 25 and by order of June 26, 2024 rejecting the preliminary motions of Carlo Tassara S.p.A., the hearing for the specification of conclusions was set for March 18, 2025 then postponed by a further order of March 13, 2025 to April 21, 2026. Class Action notified by shareholder of ordinary shares On May 4, 2022, a natural person shareholder, owner - at the date of the reorganization transactions of Edison S.p.A. - of 1,250,000 ordinary shares of Edison S.p.A. (equal to 0.025% of the share capital of Edison S.p.A.), served a summons pursuant to article 140-bis of Legislative Decree no. 206 of September 6, 2005 (Consumer Code) for a class action before the Business Court of Milan, seeking an order that Transalpina Di Energia and A2A, jointly and severally with each other, pay to itself, and to all class members who joined the action within the terms that may be set by the Court after declaring the admissibility of the action, compensation for damages to be quantified in the course of the proceedings, after ascertaining and declaring the liability of the two companies for the breach of article 106 TUF (Total Tender Offer). The factual reconstruction proposed by the plaintiff and the alleged liability of the two defendant companies retrace the contents of the writ of summons served a few weeks earlier by Carlo Tassara S.p.A. (reference is therefore made to the statement of this position). The hearing was held on November 24, 2022 and on January 12, 2023, the Court filed an order in which it declared the class action request inadmissible, accepting the objections and defenses of A2A and sentencing the plaintiff to pay A2A legal expenses and to publish the operative part of the order in “Il Sole 24 Ore” newspaper within the following 30 days. On March 1, 2023, the original applicant notified to A2a S.p.A. the complaint already filed in the Court Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 129 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report of Appeal and the order setting the hearing for May 10, 2023. Following said hearing, the Court of Appeal set a new hearing for November 15, 2023. On December 11, 2024, the Court of Appeal filed the order rejecting the claim and ordered the claimant to pay the litigation costs determined by the same order. The Group, having fulfilled the requirements of the regulations in force, does not consider likely the risk for which it has not allocated any provisions. Shareholders’ Agreement between A2A S.p.A. and Pessina Costruzioni S.p.A. for the management of ASM NOVARA S.P.A. In March 2013, Pessina Costruzioni established arbitration proceedings against A2A S.p.A. to have the latter declared in breach of the shareholders’ agreement signed between the parties on August 4, 2007 with reference to the company ASM NOVARA S.p.A. (now extinct) and to order A2A S.p.A. to pay damages accordingly. With an award filed on June 30, 2015, the board of arbitrators, with the dissenting opinion of the arbitrator appointed by A2A S.p.A., found A2A S.p.A. liable for the breach of the shareholders’ agreement and, consequently, ordered it to pay damages, which were settled on an equitable basis. The Court of Appeal of Milan on November 23, 2016 with Sentence 4337/16 rejected the appeal of A2A S.p.A. for nullity of the award. The Court of Cassation, with Order 18220 filed on June 26, 2023, accepted the first reason of the appeal notified by A2A S.p.A., considered the remaining reasons absorbed and quashed with adjournment the sentence of the Court of Appeal of Milan. The company A2A S.p.A. and also the company Pessina Costruzioni resumed the case in the Court of Appeal within the time limit. In the event that A2A S.p.A.’s claim for the nullity of the award is upheld and the Court makes a new decision on the merits of the dispute, by way of a conditional cross- appeal, Pessina has also made a claim for damages in the amount originally requested and greater than the amount recognized by the award in application of the principle of fairness. During the initial hearing on May 22, 2024, the two cases were consolidated. Given the impossibility of reaching a conciliation, the trial was adjourned to a subsequent hearing on October 9, 2024, after which the case was deferred for the specification of conclusions to March 26, 2025. The Group, having already complied with the award and in view of the stage of the proceedings, has not set aside any provisions as of today. Derivations of public water for the production of hydroelectricity With reference to the expired concessions in Lombardy operated under the so-called temporary continuation regime (for A2A S.p.A., the concessions of Grosotto, Lovero, Stazzona, Grosio, and Premadio I are relevant, while for Linea Green S.p.A., the Resio concession is relevant), and, in particular, regarding the imposition of additional fees, A2A S.p.A. (“A2A”) and Linea Green S.p.A. (“LG”) have challenged Regional Council Resolution No. 5130/2016, which provisionally set the additional fee at 20 euro/kW of nominal power. The Court of Cassation ruled (February 2024, Ord. nos. 4800 and 4382), recognizing the legitimacy of the provisional tariff identified by the aforementioned Regional Council Resolution. The relevant amounts, paid in March 2024, had, however, been fully provisioned as a matter of prudence. On the other hand, the case concerning the so-called final additional fee, instituted in February 2024 before the Superior Court of Public Waters, is still pending. A2A also contested - as contrary to the pro-tempore regulations in force - the annulment of the partial exemption of the State fee ordered by the Lombardy Region for the expired concessions that benefited from it. The Court of Cassation dismissed the appeals relating to the Premadio I (Sent. no. 15990/2020) and Grosio (Ord. no. 4371/2024) concessions, while the judgments are still pending relating to the Lovero and Stazzona concessions, in which A2A has obtained 2nd instance rulings ( Superior Court of Public Waters-TSAP sent. nos. 171/2023 and 2/2024) in favor, challenged in Cassation by the Region. Also in Lombardy, in alleged implementation of art. 12 of Legislative Decree 79/1999 as amended by Law 12/2019, he free transfer of electricity was imposed, in monetized form (220 kWh per kW of nominal power). The relevant measures were challenged by A2A and LG. In relation to the expired concessions, the Court of Cassation has definitively ruled that the subjection to the gratuitous 130 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements transfer of energy is legitimate (see Order no. 15888/2024). For concessions that have not expired, litigation is still pending. The Lombardy Region has also requested, in the alleged implementation of Article 12 of Legislative Decree 79/1999, the payment of the so-called two-tier state concession fee, consisting of a fixed and a variable component. A2A and LG initiated legal actions on the merits, which are still pending before the TSAP and the Court of Cassation. The Lombardy regional regulation on the reallocation of expired concessions was also challenged. In December 2023, the Lombardy Region approved the resolution for the reassignment by tender of the Resio concession of LG; the Company, despite submitting an offer during the tender, challenged the resolution both in defense of its rights and legitimate interests as the outgoing concessionaire (making the assets available and enhancing their value) and by raising issues of unreasonableness and illegitimacy of the procedure. The subsequent invitation to tender was also judicially challenged. In Friuli Venezia Giulia, A2A holds concessions in force until 2029. Similarly to Lombardy, a judgment against the imposition of the free energy transfer was initiated, which is still pending at the TSAP on appeal, after a negative first instance sentence (Venice Regional Court of Public Waters sent. no. 2006/2023). An action was also brought against the imposition of the so-called two-tier state fee, which is still pending at the TSAP. For all disputes relating to hydroelectric fees and assimilated charges, the companies have prudently set aside a provision for risks for the entire amount claimed by the granting public administration. Public Prosecutor’s Office at the Court of Sondrio – Criminal Procedure 1067/2024 R.G.N.R. Preliminary investigations are underway against certain A2A S.p.A. employees following the death during working hours of a company employee as a result of an accident that occurred on November 24, 2023. At present, only known are the allegations made in notices of indictment and minutes of the ATS Montagna contesting violations of the Legislative Decree 81/08 and manslaughter (Article 589 of the Criminal Code). On January 8, 2025, ATS Montagna announced the admission for payment settlement in the administrative setting of the contested infractions. Further developments are expected. A2A Energiefuture S.p.A. Monfalcone Central Inspection (RGNR 195/17 and then Court RG 492/2023 Public Prosecutor of Gorizia) On March 8 and 9, 2017, following orders of the Public Prosecutor of Gorizia, the Monfalcone Plant of A2A Energiefuture S.p.A. was inspected during which surveys and samplings (on coal in stock, on the ashes, on fume treatment residues, emissions from the chimney) and documentary acquisitions (on the servers of the emissions monitoring system, on fuel analysis forms, etc.) were performed. On the same date, the guarantee information has been notified to three employees, regarding an investigation for the offences referred to in Article 452 bis of the Italian Criminal Code. Environmental pollution. The suspect employees appointed trusted defenders. Subsequently, between December 2017 and January 2018, and then in December 2018 and July 2020, the Public Prosecutor of Gorizia proceeded with the acquisition of additional documentation at the plant. On May 6, 2021 (and subsequently on June 4, 2021), the defenders of the former head of the plant (but not the other two employees who had received information of guarantee) were notified of the conclusion of the preliminary investigation pursuant to article 415 bis of the code of criminal procedure in relation to the crime of environmental disaster pursuant to article 452 quater, paragraph 1, no. 2 and paragraph 2 of the Criminal Code. From the same notification, it emerged that the company is charged with the offence referred to in article 25 undecies, paragraph 1, letter b), in relation to article 5, paragraph 1, letter a) of Legislative Decree 231/01. In said notice of conclusion of the investigations, it was contested that the seabed in the area in front of the power plant quay has been compromised by coal run-off, the air has been compromised by emissions from the power plant and the balance of the ecosystem has been altered by contamination with heavy metals. A similar notice was served on May 10, 2021 at the Monfalcone power plant. On July 29, 2021, the defense attorney of the former head of the plant was served with a decree Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 131 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report scheduling a preliminary hearing for November 24, 2021 before the Preliminary Investigation Judge (GIP) of Gorizia. At the hearing of November 24, 2021, the Company’s lawyer raised a preliminary objection of the nullity of the notice pursuant to article 415-bis of the Code of Criminal Procedure of the conclusion of the preliminary investigations since not duly notified. The exception was upheld by the Judge who referred the case back to the Public Prosecutor’s Office so that it could serve a new notice of conclusion of the preliminary investigations. As a result of this decision, the trial regressed to the preliminary investigation stage. On July 1, 2022, a new notice pursuant to article 415 bis of the Code of Criminal Procedure of the conclusion of preliminary investigations was served on the defense counsel of the former head of the plant and on the defense counsel of the company. The new notice no longer contemplates the offence referred to in article 452 quater of the Criminal Code, i.e. environmental disaster, but rather that referred to in articles 452 bis and 452 quinquies of the Criminal Code, i.e. environmental pollution/ unintentional crimes against the environment. Consequently, by virtue of the new and different predicate offences referred to by the Public Prosecutor, the charge against the company in relation to administrative liability has also been amended, which now concerns the offence referred to in article 25 undecies, paragraph 1(a) and (c) of Legislative Decree 231/01. Despite certain formal deficiencies, the notice of the pre-trial hearing set for October 31, 2023 was served to both the individual and the company on April 17, 2023. At that hearing, the Company asserted the notification flaws and the judge decided to renew the notification to the entity only and to continue the two proceedings against a natural person and a legal person as one. Therefore, a new pre-trial hearing was scheduled, which was first discussed on March 5, 2024 and will continue on March 12, 2024, and then on May 7, 2024. At that hearing, the judge, with a well-reasoned judgment that became final on August 1, 2024, declared the unusability or nullity of a list of investigative documents against both the legal entity and the natural person. At the same hearing on May 7, 2024, the Judge pronounced a judgement of non-suit against the legal person (the grounds for which were filed on May 21, 2024) and set a hearing on the merits for September 20, 2024 for the natural person. At the hearing on September 20, 2024, both witness testimonies and documentary evidence were accepted. Following the conclusion of the discussion in which the defense counsel illustrated the reasons for an immediate declaration of non-punishment in consideration of the submitted documents and, alternatively, the partial statute of limitations, an adjournment was scheduled for February 28, 2025. At the hearing on February 28, 2025, the court issued an order requesting further examination of the ARPA report (which was favorable to the defense) and postponed the case to the hearing on September 26, 2025. San Filippo del Mela power plant – Court of Messina – Criminal Proceeding 678/2023 RGNR The Messina Public Prosecutor’s Office is conducting preliminary investigations under the case number 678/2023 RGNR against A2A Energiefuture S.p.A. and one of its employees, for assessments regarding the violation of Article 256 of the Legislative Decree 152/2006 (unauthorized waste management activities) and of Article 25 undecies paragraph 2 letter b) of Legislative Decree no. 231/2001, as well as towards the employee of Article 452 quaterdecies of the Criminal Code (organized illegal waste trafficking activities). Further developments are expected. Linea Ambiente S.r.l. – Grottaglie landfill Court of Taranto - Criminal Proceeding RGNR 2785/18 On March 14, 2019, an employee of A2A Ambiente S.p.A., seconded to Linea Ambiente S.r.l. as the company’s Chief Operating Officer, was remanded in custody as part of investigations into the offences referred to in articles 319 and 321 of the Italian Criminal Code with reference to an alleged bribery connected with the issue of Executive Decision no. 45 dated April 5, 2018 by the Province of Taranto for the orographic optimization of the Linea Ambiente S.r.l.’s Grottaglie landfill. On August 1, 2019, the Court of Taranto - Office of the Judge for Preliminary Investigation - at the request of the Prosecutor’s Office, ordered the immediate trial, i.e. without a preliminary hearing being held, of the defendants subject to pre-trial custody, including the employee of A2A Ambiente, against whom the measure of pre-trial custody in prison was replaced by house arrest and, subsequently, 132 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements with the obligation to stay in the municipality of residence and, finally, with the prohibition of residence in the province of Taranto (even this last measure was later revoked by order of January 24, 2022), setting the first hearing for this purpose on November 4, 2019. The trial ended with the reading of the verdict at the hearing on November 16, 2022. Judgment 3459/2022 was filed on May 15, 2023. The A2A Ambiente employee was sentenced to 8 years plus disqualification penalties. No confiscation order was issued against them; confiscation was applied to another defendant, and part of this sum is attributed as partial consideration for the adoption of Determination No. 45 on April 5, 2018\. Taranto Court of Appeal 515/2023 R.G. App. The first Court of Appeal hearing to discuss all appeals submitted by the individual defendants and the Public Prosecutor is scheduled for May 14, 2024. The Public Prosecutor has lodged an appeal against the initial judgment for not confiscating from the individual defendants the proceeds from the crime amounting to 20,304,974.88 euro (as specified in the seizure decree dated May 18, 2021), and consequently, no conclusive judgment on the refusal of confiscation has been reached, and the Court of Appeal must now decide whether to uphold or amend the ruling of the Court of Taranto. The Court of Appeal, at the first hearing on February 21, 2024, due to profiles related to the composition of the Board, adjourned the case without hearing to a new Board at the hearing of May 14, 2024. Even at that hearing, due to persistent issues with the Board’s composition, the matter was postponed to November 19, 2024, and subsequently to April 1, 2025. Court of Taranto no. 5400/19 R.G. Administrative Responsibility Precautionary measures On May 7, 2020, the Finance Police notified Linea Ambiente S.r.l. of a preventive seizure order issued by the GIP of Taranto on March 12, 2020 in the context of Proceedings no. 2785/18 R.G.N.R. and 5400/19 R.G. Admin. Resp. and deed of execution of preventive seizure pursuant to art. 53 of Legislative Decree 231/01, also valid as guarantee information pursuant to art. 369 of the Italian Criminal Code. For the first time, Linea Ambiente was informed of the existence of Criminal Proceedings no. 5400/19 R.G. Admin. Resp. of Entities for bribery offences pursuant to article 25, paragraph 2, of Legislative Decree 231/01\. The preventive seizure, on May 7, 2020, was arranged up to the amount of 26,273,298 euro (equal to the presumed profit of the offence). On May 13, 2020 was the notification of appointment of a judicial administrator of the assets seized, including company shares and receivables. On May 21, 2020, Linea Ambiente proposed a request for review of the seizure order, which was discussed in the Council Chamber on June 9, 2020, and rejected. The cautionary requests have been confirmed. On June 11, 2020, a decree releasing the Linea Ambiente portions was notified. On September 10, 2020, the company was notified of the conclusion of the preliminary investigations pursuant to article 415-bis of the Code of Criminal Procedure. The notification was repeated, with partial changes, on January 21, 2021. On January 21, 2021, the Taranto Public Prosecutor’s Office notified the defense lawyer of Linea Ambiente of an order to release and return 95.004% of the shares in Lomellina Energia held by Linea Ambiente and already placed under preventive seizure. This was done on the basis of a new estimate of the value of the shares made by the judicial administrator and on the fact that after the seizures made by the Finance Police there remained sums equal to about 5% the value of said shares. On May 18, 2021, the Taranto Preliminary Investigation Judge (GIP), following the annulment by the Supreme Court of the preventive seizure order notified on May 7, 2020, issued a new preventive seizure order recalculating the “profit from the crime” as 20,304,974.88 euro (compared to the previous amount of 26,273,298.13 euro) by subtracting the “out-of-pocket costs” incurred by Linea Ambiente and quantified as 5,968,323.25 euro. In fact, the Supreme Court found that the original determination was erroneous of the alleged profit, identified by the Judge for Preliminary Investigation in the gross revenue that Linea Ambiente would have derived as a result of the landfill contributions made in the period April 2018 - February 2019, for a total amount of 26,273,398.13 Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 133 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report euro. Consequently, the Supreme Court ordered the annulment of the decree and the return of the acts to the GIP of Taranto to comply with the principles of law dictated by the Supreme Court, according to which the profit is only the advantage of immediate and direct causal derivation of the crime. In the new seizure order notified on May 18, 2021, however, according to the Linea Ambiente defense, this principle was again disregarded and therefore on May 27, 2021, an appeal was filed with the Supreme Court against the same, requesting its cancellation. At the hearing on November 10, 2021, the Court declared the appeal inadmissible due to lack of standing because, according to the Court of Cassation, Linea Ambiente should not have been considered as a party to the committal proceedings opened with the sentence of annulment pronounced by the Court of Cassation on the appeal brought by the company’s former Operating Director (in other words, according to the Court of Cassation, the GIP of Taranto, as judge of the committal, could have ruled only against the original appellant, i.e. the former Operating Director, and not also against the other parties affected by the original decree). On June 29, 2021, the Linea Ambiente counsel was re-notified of the preventive seizure order issued on May 18, 2021 by the GIP and the minutes of the execution of the same by which it was ordered to release and return to Linea Ambiente 3.352% of the shares held by it in the company Lomellina Energia for an estimated value (by the Judicial Administrator) of 1,617,284.96 euro. In May 2021, the Group complied with the request of the Judicial Administrator to pay the amounts seized up to the amount of 14 million euro. Subsequently, with a measure notified on March 14, 2022, granting the petition filed by the company, the GIP of Taranto ordered that the preventive seizure of Linea Ambiente’s shareholding in Lomellina Energia still under seizure (1.644 %) be transferred to the corresponding sum of money (equal to 793,164.55 euro) to be paid to the indicated account. Once this payment had been made, in execution of the said decree, on May 17, 2022 the Finance Police released from seizure and returned to Linea Ambiente the 1.644 % of the shares it held in Lomellina Energia that had already been seized. The proceedings of merit On March 18, 2021, the Linea Ambiente S.r.l. counsel was served with the notice of the preliminary hearing scheduled for June 10, 2021 before the Taranto Preliminary Hearings Judge. In this preliminary hearing, the Municipality of Grottaglie filed a request to join the civil action. At the subsequent hearing on July 22, 2021, the defense of Linea Ambiente S.r.l. objected to the inadmissibility of the civil action of the Municipality of Grottaglie against Linea Ambiente S.r.l.. The Preliminary Hearings Judge (GUP) accepted the objection and consequently declared the inadmissibility of the constitution of a civil party of the Municipality of Grottaglie, also rejecting the request of the latter, carried out in the alternative, to authorize the summons of the company as civil liable party, postponing the proceeding to November 11, 2021 for the continuation of the preliminary hearing. At this hearing, the defense raised a number of preliminary issues and the Judge granted time to respond and adjourned the hearing until January 20, 2022. At the hearing on January 20, 2022, the judge rejected the preliminary objections and adjourned the hearing on March 31, 2022, then to May 31, 2022, for a decision on the preliminary motions; at that hearing, due to the impediment of the GIP, an adjournment to September 29, 2022 was ordered; at the subsequent hearing on November 17, 2022, the parties requested an adjournment to acquire the conclusions of the proceedings against the natural persons and a new schedule was set. At the hearing of December 22, 2022, the Public Prosecutor delivered their conclusions with a request for committal for trial against the entity, setting the subsequent hearings for the conclusions of the other parties for January 19 and 26 and February 2, 2023; a new hearing was then set for March 30, 2023 for the Public Prosecutor’s replies and possible taking of decisions on jurisdiction by the Judge. At the hearing on March 30, intended for the responses of the Public Prosecutor, after addressing matters related to another defendant, the Judge once again decided to adjourn the session until April 6, 2023, during which Judge Dr. Misserini at the Preliminary Hearing Court in Taranto ordered the committal for trial of Linea Ambiente, in accordance with the Legislative Decree 231 of 2001, and of all other defendants in the proceedings in question, both natural and legal persons, before the Taranto Court sitting in a collegial composition – section 1st criminal, for September 13, 2023. 134 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements Several hearings have taken place since September 13, 2023, all of which have been postponed due to the incompatibility of some of the members of the board. After the reading at the hearing of February 12, 2024 of the order of the President of the Court concerning the composition of the new board, the Court set a first hearing for March 4, 2024 at which it decided on the constitution of the civil parties, accepted by ordinance a request of the Public Prosecutor to clarify one of the charges, and set a new hearing for October 7, 2024 for the examination of preliminary issues, and, subsequently, on December 2, 2024 and January 13, 2025. During that hearing, the discussion concerned the requests for evidence made by the Public Prosecutor. Consequently, the Court adjourned the matter to the hearing scheduled for April 7, 2025, to address the issues regarding the Public Prosecutor’s evidence requests, as well as those related to the defense’s evidence requests. Currently, in light of the events that occurred during 2023, the company considers the risk of confiscation to be likely. The risk assessment considers several concurrent factors, such as: (i) the referral to court of the Company in Proceeding no. 5400/19 R.G. Admin. Resp.; (ii) the content of Judgment 3459/2022 and the earlier scheduling of the initial hearing for the related appeal; (iii) the appeal by the Public Prosecutor against Judgment 3459/2022, which had rejected the request for confiscation; (iv) the new value of the sum determined in the seizure decree notified on May 18, 2021, as the profit deriving from the alleged underlying offence. Should the company be convicted, confiscation of the price or profit of the offence is anticipated. Currently, in light of the events that have occurred during 2023, the company considers the risk of confiscation to be probable, even though it is unlikely that the first instance trial will be concluded during 2025, considering the current progression of the process. Linea Ambiente vs. Taranto Province – Grottaglie Landfill In January 2021 (with reiteration in February 2022), the Province of Taranto sent a warning notice for the removal of the waste dumped during the period of validity of DD 45/18, which also constitutes a response to the requests that the company had made in previous years regarding the procedures for fulfilling the obligations resulting from the Sentence of the Council of State no. 5985/2019, which had annulled the substantial variation no. 45/2018\. The Province, according to as stated in the meagre communication of 2021, which does not give evidence of the provincial inquiry, does not open the required authorization procedure and indicates to the company: (i) to remove the waste delivered in excess of the authorized quantities, (ii) to restore the landfill profiles in accordance with authorization 426/08 and (iii) to activate the closure activities. On February 9, 2021, Linea Ambiente met with the Province, expressly reserving the right to challenge the warning, in order to outline a technical path necessary to take appropriate action; in particular, the company illustrated a preliminary investigation path from which all possible solutions could emerge, including a new request for a substantial variant of the current authorization in line with Council of State Sentence 5986/2019. In view of the flaws in the deed, the company appealed to the Apulia Regional Administrative Court to have the warning cancelled and notified additional grounds against the February 2022 communication; a hearing on the merits has not yet been scheduled. Despite the probable risk of losing, it is important to note that on October 10, 2024, the Apulia Region issued managerial determination 560, which granted the Single Authorization Provision, having a reasonable and substantially extinguishing effect on the litigation in question. The Group has set aside an adequate provision to cover any risk. Lecce Public Prosecutor’s Office - Criminal Proceeding no. 6369/2019 R.G.N.R. On February 26, 2020, at the Rovato headquarters of Linea Ambiente S.r.l., the Brescia Finance Police executed the “Search and Seizure Warrant” issued on February 5, 2020 by the Lecce Public Prosecutor’s Office (Public Prosecutor Mignone) in relation to criminal proceedings no. 6369/2019 R.G.N.R.. The Finance Police then acquired a copy of the company’s Organizational Model and the deeds and documents relating to the information flows destined for the Linea Ambiente S.r.l. Supervisory Body from November 2014 to January 2019. The criminal proceedings have been filed against the company Linea Ambiente S.r.l. and the legal Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 135 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report representative pro tempore for the offences referred to in articles 452 quaterdecies of the Italian Criminal Code (activities organized for the illicit waste trafficking) and 256 and paragraphs 1 and 3 of Legislative Decree 152/2006 (respectively waste collection, transport and disposal activities in the absence of the prescribed authorization/registration and the construction and management of unauthorized landfills) from which the company’s administrative liability derives pursuant to articles 24 and 25 undecies of Legislative Decree 231/2001 and this - the said measure states - “in order to have, with several operations and through the setting up of continuous and organized means and activities, managed and illegally disposed of large quantities of urban waste, creating an illegal landfill, in order to obtain an unfair profit”. These alleged offences were supposedly committed in “Rome and Grottaglie from November 1, 2014 to January 28, 2019 with permanence”. Together with the “Search and Seizure Warrant”, the Finance Police notified the company “Guarantee and on the right of defense information”, from which it emerges that the company AMA S.p.A. of Rome, “owner of the TMB Rocca Cencia and Salario plants in Rome”, was also entered in the same proceedings. The company has been informed that individuals who are legal representatives or directors of Linea Ambiente S.r.l. and AMA S.p.A. during the interested period have received only a first request to extend the preliminary investigations in the same proceedings. Amsa S.p.A. Milan Public Prosecutor’s Office - Criminal Proceeding no. 33490/16 R.G.N.R. - 43494/19 R.G.N.R. – 27023/19 RGGIP 7485/2021 R.G. DIP On May 7, 2019, the Carabinieri investigative unit of Monza showed up at the Amsa S.p.A. headquarters to notify an order for the exhibition of documents issued by the Milan Public Prosecutor’s Office, relating to the documentation concerning three tenders launched by Amsa S.p.A. in 2017-2018, as well as the supplies made to it by a specific supplier. In relation to these proceedings, the Company’s Chief Operating Officer and other employees were investigated, as well as three members of a tender judging committee issued by Amsa S.p.A.. No dispute has been raised against Amsa S.p.A. on the basis of the regulations on the administrative liability of legal persons, as Amsa S.p.A. considers itself to be an “injured party” and, in fact, has filed a complaint with the Public Prosecutor’s Office through a trusted lawyer. On December 23, 2019, lawyer of Amsa - as the injured party - was served notice for the setting of the preliminary hearing on February 17, 2020. As a result of this hearing, the Judge for Preliminary Investigation adjourned the hearing to May 25, 2020, setting a provisional schedule for its continuation. The measure in question does not cover the members of the tender committee, whose position has been withdrawn and closed. Filed as civil parties were Amsa S.p.A. and A2A Calore & Servizi S.r.l., as it was found to be an injured party in the same proceedings in relation to agreements made to its detriment by some companies competing in the district heating installation tenders, which tended to distort free competition. On January 18, 2021, the lawyer of Amsa S.p.A. was served notice of the setting of the preliminary hearing relating to the second line of investigation, registered under number 34213/19 R.G.N.R. - 21296/19 R.G.I.P. connected to the first. The preliminary hearing of this second matter was set for March 19, 2021 for the joining of the proceedings. Amsa also filed as civil party against some of the defendants and in respect of certain allegations in connection with this additional matter. The trial underwent a series of postponements and the discussion of the preliminary hearing ended at the hearing on July 15, 2021 in which the defendants were sent for trial and the first hearing was set for November 18, 2021. At the hearing of July 8, 2021, at the conclusion of the reconnaissance on the requests for alternative rites, the Judge also set the calendar for the treatment of alternative rites, scheduling numerous hearings between September and October 2021. At the hearing of October 21, 2021, set for the decision on alternative procedures, the Judge, as regards the positions of interest to AMSA, accepted the plea bargains requested by pronouncing a sentence of application of the penalty, while for a defendant who had requested an abbreviated trial, it pronounced a sentence of acquittal. 136 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements At the hearing on November 18, 2021, the preliminary issues raised by the defense of the defendants on remand were discussed; at the end of the hearing, the Court reserved its decision and adjourned the proceedings until the hearing on December 10, 2021. At this hearing the Court, in order to withdraw its reservation, rejected the objections raised by the defense and then opened the hearing, inviting the parties to formulate their preliminary requests, on which it reserved the right to decide, adjourning the hearing until January 14, 2022. At this hearing, the Court granted the preliminary investigations, admitted the testimonial and documentary evidence requested and ordered the transcription of telephone and environmental interceptions. The case was postponed to March 14, 2022, for the commencement of the trial investigation, and several hearings for the hearing of witnesses were scheduled until October 2, 2023, when the reading of the verdict is also expected to take place. At the hearing on May 15, 2023, the Public Prosecutor presented their requests for conviction. At the hearing on October 2, 2023, the Court delivered the verdict, acquitting all individuals still under ordinary trial responsible for conduct causing harm to the two companies constituted as civil parties, because the alleged charges were found to be groundless. Sentence 13661/2023 of October 2, 2023 with reasons was filed on January 18, 2024. Appeals were lodged. The setting of a hearing is pending. Linea Green S.p.A. Brescia Public Prosecutor’s Office - Criminal Proceeding no. 3891/2020 R.G.N.R. On September 22, 2020, the person in charge of the technical and operational management of the Isola hydroelectric plant on the Grigna stream in Barzio Inferiore was notified of a request for an extension of the preliminary investigation. The interested party thus learned of the existence of investigations involving the latter in relation to an alleged crime of environmental pollution in conjunction with the legal representative of the company that owns the plant, which does not belong to Linea Green, but to a third company with which Linea Green has signed a management contract. Subsequently, on March 26, 2021, the Carabinieri from the Forestry Department appeared at the Linea Green offices to acquire documentation and, on that occasion, invited the company’s legal representative to appoint a lawyer for the company, since, as shown in the report notified, it was “under investigation for the administrative offence depending on the crime referred to in article 25 undecies paragraph 1 letter a) of Legislative Decree 231/01”, i.e. in relation to the offence of environmental pollution referred to in article 452 bis of the Criminal Code. On October 23, 2024, both the natural person and the entity were notified of the completion of the preliminary inquiries as per article 415 bis of the Code of Criminal Procedure, in relation to the alleged offences. The setting of a hearing is pending. AEB S.p.A. Monza Public Prosecutor’s Office - Criminal Proceeding no. 1931/2021 R.G.N.R. On July 5, 2021, officers and agents of the Finance Police of Seregno showed up at the headquarters of AEB S.p.A. in Seregno to execute “personal and local search orders” and “request for delivery - local search order”. The proceedings, which in the initial phase was against unknown persons, arise from two complaints presented to the Prosecutor’s Office of Monza on November 25, 2019 and on February 10, 2020 by Tiziano Mariani, at the time Municipal Councilor of the Municipality of Seregno, who also filed an appeal with the TAR, now concluded. The “personal and local search decree”, which also contains the “guarantee information” pursuant to art. 369 Criminal Procedure Code to the person subjected to the investigation, concerned the Chair of the Board of Directors of AEB S.p.A. investigated, jointly with other persons not indicated, for the crimes referred to in the art. 353 bis Criminal Code (disturbance of the freedom of the procedure for choosing a contractor), 319 Criminal Code (bribery for an act contrary to the duties of office), 321 Criminal Code (penalties for the briber), committed between “October 2019 and in present permanency.” At the same time, AEB was served with a “request for delivery and a local search decree” with which the Monza Prosecutor’s Office ordered the acquisition of documentation concerning the transaction. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 137 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Subsequently, on September 24, 2021, the Finance Police of Seregno, delegated by the Monza Prosecutor’s Office, appeared at the A2A Milan headquarters to serve, as part of Procedure no. 1931/2021 R.G.N.R. relating to the merger between the A2A and AEB Groups, a notice of non- repeatable technical checks on the IT supports previously seized. From the document in question, it emerged that the proceedings were pending not only against certain persons outside the A2A Group, but also against certain persons, other than the current directors of A2A S.p.A., who at the time of the events held positions in A2A S.p.A., Unareti S.p.A. and A2A Illuminazione pubblica S.r.l. in various capacities involved in the project in question. The notice of non-repeatable technical investigations also contained information on guarantees and the right of defense in relation to the investigation concerning the alleged offences under Articles 110 Criminal Code (conspiracy), 353 bis Criminal Code (disturbance of the freedom of the procedure for choosing a contractor), 319 Criminal Code (bribery for an act contrary to the duties of office), 321 Criminal Code (penalties for the corruptor). On July 5, 2023, the notice of conclusion of the preliminary investigation was served on only some of the natural persons subject to the notice of investigation, which was, moreover, announced in a press release issued by the Monza Prosecutor’s Office on July 7, 2023. As far as A2A is concerned, the notice was served on only one of the original addressees of the guarantee notice. It appears from the notice that the alleged offences are different from those set out in the previous acts and relate to violations of Articles 353bis Criminal Code (Disturbance of the freedom of the procedure for choosing a contractor), and article 353 of the Criminal Code (Disturbance of the freedom of auctions). On November 22, 2023, the Monza Prosecutor’s Office issued a new press release announcing that it had filed a request for committal for trial against the same persons reached by the notice of conclusion of July 5, 2023 and for the aforementioned offences. The preliminary hearing before the Preliminary Hearing Judge at the Court of Monza was set for April 5, 2024. During this hearing, the constitutions of the civil parties took place: the Municipalities of Seregno, Limbiate and Bovisio Masciago and Mr. Mariani. The Municipalities of Desio, Varedo, and Bovisio Masciago have requested an extension to review the proceedings and evaluate the opportunity to constitute a civil party. The Judge, also due to the need to notify the hearing schedule to all member Municipalities in their capacity as injured parties, postponed the hearing to June 28, 2024. During the hearing on June 28, the Municipalities of Varedo and Bovisio Masciago, which had already participated in the previous hearing, along with GSD (an in-house company of the Municipality of Desio) and three municipal councilors from Lissone, submitted an application to join the proceedings as a civil party. The Judge reserved their decision regarding the procedural exceptions raised by the defense lawyers for natural persons during the hearing on September 20, 2024, in which the GUP rejected the objection of territorial incompetence and denied the request to exclude ‘public’ civil parties (Municipalities, in-house companies, and municipal councilors of Lissone), while the former municipal councilor, Mariani, was removed from the proceedings as they were not considered legitimate to constitute themselves. The Public Prosecutor and the civil parties maintained their request for the case to proceed to trial, while the defense counsel for the Mayor of Seregno articulated the reasons they believed warranted a verdict of no-proceedings. The Judge then postponed the proceedings, confirming the schedule that was already known: October 18, 2024, November 8 and 15, 2024. At the hearing on November 15, 2024, the GUP committed all the defendants for trial at the hearing on March 17, 2025, before the Court of Monza. After discussion, the GUP made a reservation and set a new hearing for May 12, 2025. 138 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements I 01351/2020 Procedure for determining fiscal liability before the Court of Auditors of the Lombardy Region On February 21, 2024, the former Chair of AEB received an invitation from the Lombardy Court of Auditors to provide information in accordance with Article 67 of the Legislative Decree 174/16; the initial 45-day deadline was deferred to May 10, 2024. On that date, a memorandum was filed to contest the passive subjection and the charges. The contested facts, as outlined and documented in the file, are the same as those in proceeding 1931/2021\. The complaint lodged by the Prosecutor with the Court of Auditors is for the financial damage caused to the local authorities affiliated with AEB. On October 14, 2024, the former Chair of AEB received a summons from the Public Prosecutor’s Office at the Court of Auditors in Milan for the hearing scheduled for March 12, 2025, in preparation for which, within the assigned deadline, they submitted briefs and documents. A2A Ambiente S.p.A. Busto Arsizio Public Prosecutor’s Office - Criminal Proceeding no. 9079/2021 R.G.N.R. (formerly no. 24/2017 R.G.N.R.) and Criminal Proceedings no. 1961/2023 R.G.N.R. against unknown persons On February 18, 2021, the Carabinieri forestry department showed up at the Gerenzano landfill site in execution of investigation activities delegated by the Public Prosecutor’s Office of Busto Arsizio within the framework of criminal proceeding no. 24/2017 R.G.N.R. Form 44 (i.e. against unknown persons), to acquire documentation on the plant, then notifying the person in charge of the plant and the head of A2A Ambiente’s “Impianti Lombardia” organizational structure of the proceedings for the alleged offences under articles 81 paragraph 2 (continuation), 110 (conspiracy), 452 quater (environmental disaster), 452 septies (obstruction of control) of the Italian Criminal Code. Gerenzano is a former quarry, later converted into a landfill, located in the territory of the municipality of the same name, which owns it, with an area of about 80 hectares. It is divided into two lots Gerenzano 1 and Gerenzano 2. Gerenzano 1 is the original unit, dating back to the mid-1960s when waste disposal activities began. At the end of the 1970s, 200 municipalities, including Milan, delivered waste there. In July 1980, the Municipality of Gerenzano and the municipal company of the Municipality of Milan (then AMNU) signed an agreement whereby AMNU exclusively took over the management of the landfill of waste from the Municipality of Milan and 69 other municipalities. AMNU then built a new controlled landfill and carried out environmental remediation and restoration works (with regional contributions). The cultivation of Gerenzano 1 by AMNU, later to become AMSA, continued until its final closure in 1988\. A new area was then identified where Gerenzano 2 was built and managed by AMSA from 1989 to 1991, the year in which conferring ceased. In the context of the obligations taken on with the management of the landfill for environmental recovery, AMSA carried out a series of interventions including the impermeable cover, the biogas collection and combustion plant, weir wells and groundwater purging, the treatment plant for emitted groundwater, leachate collection works, a leachate purifier, and environmental recovery interventions. The operation of the plants in application of the authorization measures will have to continue until the waste is mineralized, as far as biogas is concerned, and until the water table is back in good condition, as far as purging wells are concerned. As regards the latter activity, AMSA took responsibility for a situation of degradation and pollution that existed prior to its taking over the management of the area, in relation to which it had no responsibility. In 2013, as part of the reorganization of the A2A Group’s environmental chain, A2A Ambiente took over from AMSA in the management of the Gerenzano landfill and in the service contract still in force as a result of technical extensions with the Municipality of Milan for the post-mortem management service of the landfill. On July 1, 2022, the conclusion of the preliminary investigations pursuant to article 415-bis of the Code of Criminal Procedure was notified. In the notice, the person in charge (at the time of the contested facts, i.e. from May 29, 2015 to November 13, 2020) of the Gerenzano Hub and the person in charge of the “Lombardy Plants” structure (the latter in current permanence) are charged with having caused an environmental disaster in the management of the plant (article 452 quater of the Criminal Code) by means of an unlawful dysfunction of the purification plant for the groundwater emitted by means of a hydraulic barrier so as not to carry out the containment of the contamination of the water table and by means of an unlawful Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 139 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report dysfunction of the purification plant for the treatment of the polluting fluids before their discharge into the Bozzente stream and of having obstructed and eluded the environmental supervision and control activities by ARPA (article 452 septies Criminal Code from May 29, 2015 permanently for the person in charge of the facility and from November 21, 2016 for the person in charge of the Hub). No charges against the company under Legislative Decree 231/01 appear in the notice of conclusion of investigations. On November 10, 2022, the decree was served setting March 2, 2023 as the date of the preliminary hearing. At the preliminary hearing, the defense counsel raised objections concerning the invalidity of the request to proceed to trial due to defects in the notification of the notice of conclusion of the preliminary investigations. The Preliminary Hearings Judge upheld and ordered the return of the documents to the Public Prosecutor, who served a new notice of conclusion of the preliminary investigation a few days later. At the hearing on February 1, 2024 called to decide on the plea bargaining request made by one of the two individuals, the Preliminary Hearings Judge did not accept it and referred the case back to the Public Prosecutor due to the tenuousness of the agreed penalty. On November 11, 2024, the decree was served to the defense counsel setting January 8, 2025, as the date of the preliminary hearing. In the decree in question, the offence of environmental pollution, as specified under art. 452 bis of the Criminal Code, was alleged. At the hearing on January 8, 2025, after discussion, the proceedings were deferred to February 26, 2025. At this hearing, the Judge pronounced a judgment of full acquittal. Concerning the other natural person for whom the Public Prosecutor requested the Preliminary Hearing Judge to close the case on January 13, 2025, the defense counsel submitted the filing order issued by the GIP. Regarding the legal entity in the state, no legal challenge has been lodged against it in accordance with the Legislative Decree 231/01\. Moreover, following the case dismissal for one defendant and the acquittal of the other, no senior or non-senior individuals have been found to have committed the alleged predicate offence. As a result, the conditions for any potential action against the company no longer exist. On February 16, 2024 and on June 20, 2024, police forces and an expert technical consultant carried out an inspection at the Gerenzano landfill site and acquired documentation relating to plant management/operation and emission control data, by delegation of the same Public Prosecutor, in charge of the aforementioned procedure, within the framework of new proceedings against unknown persons. Milan Public Prosecutor’s Office – Criminal proceedings concerning the injury of an employee of a contractor company R.G.N.R. 24347/2022 An injury occurred on July 23, 2022, at the Novate Milanese facility (then under A2A Recycling, and from December 31, 2023, under A2A Ambiente), involving an employee from the contractor EMAD SERVIZI S.r.l., who lost two fingers (right thumb and the left index finger) after their hands were compressed in the press binder. ATS intervened for the necessary verifications. On January 30, 2023, ATS lifted the seizure of the machinery where the accident occurred and identified the delegated employer for the purpose of conducting the preliminary investigations related to the violation of the Legislative Decree 81/08\. On March 29, 2023, ATS notified the act of contravention and prescription to the defense counsel. ATS identified the existence of two contraventional offences due to the violation of Article 26, paragraphs 2 and 3 (obligations related to contracts for works or services) under Legislative Decree No. 81/2008\. On April 28, 2023, the appointed attorney informed ATS that compliance with the requirements had been achieved. On May 25, 2023, ATS allowed the delegated employer to pay a penalty of 3 thousand euro, enabling the dismissal of the two contested occupational safety violations (Article 26, paragraphs 2 and 3, first sentence, of Legislative Decree No. 81/2008). On June 13, 2023, the attorney also informed ATS of the payment of the penalty. On December 3, 2024, the employee of A2A Ambiente was notified of the completion of the preliminary investigations in accordance with Article 415 bis of the Code of Criminal Procedure. According to the notice, the Public Prosecutor has alleged the charge of negligent personal injury (art. 590 para. 1 and 3 of the Criminal Code) against the legal representative of the contracting company and the employee of A2A Recycling (later known as A2A Ambiente) as a ‘delegated 140 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements employer’; the latter was initially investigated solely for the contraventional offences noted in art. 26 paragraphs 2 and 3 of Legislative Decree no. 81/2008 concerning occupational safety, which were extinguished following compliance with ATS requirements and the payment of an administrative sanction. The notice also reveals that the public prosecutor has investigated the companies, including A2A Ambiente, for the offence stipulated under article 25 septies of the Legislative Decree 231/2001 in relation to the offence of negligent personal injury charged against natural persons. Public Prosecutor’s Office of Pavia – Case No. 7164/22 R.G.N.R. concerning the fatal accident in Parona On October 25, 2022, a fatal accident occurred at the Parona plant of Lomellina Energia, involving an employee of a contractor company (SIMIC). The Public Prosecutor ordered investigations into the matter, appointing both a forensic pathologist to determine the cause of death and two technical consultants. The expert report by CTU Prof. Chiandussi was submitted in the second half of October 2023, but the Public Prosecutor postponed the parties’ review until December 2023. On June 5, 2024, the Public Prosecutor requested a third extension of the preliminary investigations; the defense lawyer of one of the suspects opposed the request within the given timeframe. The GIP rejected the opposition and confirmed the new extension of the investigation. On December 31, 2024, the Health Protection Agency (ATS) of Pavia notified the company’s legal representative at the time of the incident and the works manager of an “information notice for criminal proceedings.” On February 27, 2025, ATS Pavia notified the company of ongoing investigations against it concerning liability under Legislative Decree 231/01. On March 5, 2025, pursuant to Article 415 bis of the Code of Criminal Procedure, the Public Prosecutor issued a notice marking the conclusion of the preliminary investigations, in which four employees of Lomellina Energia and the safety coordinator for the design and execution phases were investigated among others, for the offence under Article 589 of the Penal Code, as well as specific violations of the Legislative Decree 81/08, in consideration of the roles each has undertaken in terms of prevention and health at the workplace. Among others, the same notice was served to Lomellina Energia (which has been merged into A2A Ambiente since December 31, 2023) for the administrative offence mentioned in art. 5, paragraph 1 letter a), art. 25 septies paragraph 3 of Legislative Decree 231/01. A2A Calore & Servizi S.r.l. On December 31, 2024, Azienda Speciale Servizi Territoriali Spedali Civili di Brescia notified a writ of summons to the Ordinary Court of Brescia, specifically with the specialized section for business matters, seeking to determine and declare, with subsequent condemnation: a) the nullification/non-existence of any contractual relationship between Spedali Civili and ACS from July 1, 2019, and as a result, to determine and declare the right to the repayment of 35,292,513.18 euro as principal and 2,210,477.20 euro as interest (with additional balance interest and monetary revaluation); b) the unwarranted nature of the payments made between January 1, 2014, and June 30, 2019, totaling 1,744,206.58 euro as principal and 175,057.05 euro as interest; c) the obligation to provide information concerning CAPEX and OPEX. Azienda Speciale Servizi Territoriali Spedali Civili di Brescia held a contract for the provision of the district cooling service commencing in 1998, which expired on June 30, 2019. Following its expiration, due to the necessity of uninterrupted service for the continuity of healthcare provision, A2A Calore & Servizi S.r.l. continued to perform the contract at the express request of Azienda Speciale Servizi Territoriali Spedali Civili di Brescia. Within the assigned period, A2A Calore & Servizi filed a memorandum of incorporation with a counterclaim, justifying the existence of the contract extension, rejecting all ASST’s claims, and methodically outlining alternative reasons for retaining the entire payment received over the years. Furthermore, it demonstrates the right to receive a remuneration not only for the past but also starting from January 1, 2024 until the end of the service, as well as claims for damages. Notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 141 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report After the entry of appearance and the filing of the counterclaim, on March 7, the Court scheduled a hearing for July 10, 2025. In advance of this hearing, the parties will file further briefs in support of their mutual claims. Considering the state of the judgment and its specific aspects, the company has not set aside funds and considers the risk possible. * * * The following information is provided in connection with the main litigation of a fiscal nature. A2A gencogas S.p.A. (formerly Abruzzoenergia S.p.A.) - General IRES/IRAP/VAT audit for fiscal years 2014 and 2015 On January 19, 2016, the Finance Police - Chieti Unit commenced a general audit of A2A gencogas S.p.A. (formerly Abruzzoenergia S.p.A.) for fiscal years 2014 and 2015 for IRES, IREP and VAT purposes. This audit was completed on May 25, 2016. The company submitted comments to the formal notice of assessment by the inspectors. In December 2016, the Revenue Agency of Chieti issued notices of assessment for IRES, IRAP and VAT for the years 2011 and 2012 and, in August 2017, served notices of assessment for IRES, IRAP and VAT for the years 2013 and 2014. The company has proposed a timely appeal against all the deeds notified. The Provincial Tax Commission of Chieti and the Regional Tax Commission of Pescara issued unfavorable rulings for IRES and IRAP. The appeals against the VAT assessment notices for the years 2011-2014 were rejected by the Provincial Tax Commission of Chieti and upheld by the Regional Tax Commission of Pescara. On May 8, 2019, the Company filed an appeal with the Supreme Court for IRES 2011 and 2012. In February 2020, the Company filed an appeal with the Supreme Court for IRES 2013 and 2014 and IRAP 2011- 2014 and a counter-appeal with the Supreme Court for VAT 2011 and 2012. On May 5, 2020, the Company filed a counter-appeal with the Supreme Court for 2013-2014 VAT. A risk provision of 2 million euro has been recognized. A2A S.p.A. - Registration tax for transfer of business unit and sale of the investment Chi.na.co. S.r.l. On April 4, 2016, the Provincial Directorate I of Milan - Regional Office of Milan 1 - notified the invitation to appear to provide clarifications on a business transfer in the company Chi.na.co. S.r.l. and the subsequent sale of the investment held in it under control for registration tax purposes. The invitation was followed by a contradictory with the Office and subsequent notification by the latter of the notice of liquidation to the acquiring counterparty, which filed an appeal on September 28, 2016. The Provincial Tax Commission of Milan rejected the appeal with sentence filed on July 07, 2017. On February 13, 2018, the acquiring company filed an appeal, which was rejected by the Milan Regional Administrative Court. On April 8, 2019, the Company filed an appeal with the Supreme Court. On February 21, 2020, the Office filed a counter-appeal and a cross-appeal with the Supreme Court. The risks provision recognized for 1.4 million euro was fully used for the payment of the amounts requested with the liquidation notice. A2A S.p.A. (merging company of AMSA Holding S.p.A.) - VAT Tax assessments for tax years from 2001 to 2005 In early 2006, the Italian Finance Police – Lombardy Regional Unit, Milan – carried out a tax audit of AMSA Holding S.p.A. (now A2A S.p.A.) for VAT purposes for tax years 2001 to 2005. The audit ended with the issue of a final report contesting the legitimacy of the ordinary VAT rate, in place of the special rate applied by suppliers for waste disposal and plant maintenance, as well as the subsequent deduction made after the invoices issued for these services were duly paid. The report was followed by formal notices of assessment from the Tax Revenue Office (Milan 3 Office) for each year audited; appeals were then filed with the Provincial Tax Commission within the term provided by law. The appeals for 2001 and for 2004 and 2005 were discussed on January 25, 2010 and on February 17, 2010 respectively, with a favorable outcome for the company in all cases. The Tax Revenue Office appealed against the verdict of the first court. The Regional Tax Commission rejected this appeal for all three years, 2001, 2004 and 2005. 142 A2A Consolidated financial statements 2024 Notes to the Consolidated financial statements For 2001, the Tax Revenue Office filed an appeal with the Supreme Court against which AMSA Holding S.p.A. (now A2A S.p.A.), filed a cross-appeal on November 9, 2012. At the hearing on December 12, 2018, the Company requested that the case be suspended in order to assess the facilitated settlement of the dispute. On May 24, 2019, the company filed an application for a facilitated settlement of pending tax disputes and definitively settled its tax claim. The outcomes of the 2002 and 2003 disputes were also favorable for the company but the Tax Revenue Office filed an appeal against both sentences. The appeal for 2002 was discussed on November 30, 2010, and by way of a sentence lodged on February 2, 2011 the Milan Regional Tax Commission overturned the sentence of the first court, upholding the Tax Revenue Office’s appeal on almost all counts with the exception of the hazardous waste category. The Company filed an appeal with the Supreme Court for 2002. The hearing was held on December 12, 2018 and the appeal was upheld and the judgement was adjourned to the Regional Technical Committee (CTR). On December 23, 2019, the Company filed an appeal for reinstatement in CTR and an appeal for revocation with the Supreme Court. For 2003 the appeal made by the Tax Revenue Office was discussed on November 7, 2011 before the Regional Tax Commission which rejected it with a sentence filed on November 11, 2011\. The Tax Revenue Office has not appealed to the Supreme Court for 2003, 2004 and 2005 and the sentence has become final, thereby closing the litigation. No provisions for risks have been recognized. A2A Ciclo Idrico S.p.A. – IMU assessment notices of Municipality of Montichiari for the years 2013-2018 On December 4, 2019, the Municipality of Montichiari (BS) issued notices of assessment for IMU purposes for the years from 2013 to 2018 regarding the purification plant located in the territory of the same municipality. On January 29, 2020, the Company filed an appeal with the Provincial Tax Commission, which rejected the appeal. On November 22, 2022, the company filed an appeal, which was rejected by the CGT II degree in Brescia. The company is assessing the action to be taken. A risk provision of 0.7 million euro has been recognized. A2A Energia S.p.A. merging company of Linea Più S.p.A. - General IRES/IRAP/VAT audit for fiscal years 2013 and 2014 On September 17, 2019 the Lombardy Regional Department - Large Taxpayers Section - opened in respect of A2A Energia S.p.A. (merging company of Linea Più S.p.A.) a general audit for IRES, IRAP and VAT purposes for tax periods 2013 and 2014. This audit was completed on October 22, 2019. On December 24, 2019, the Lombardy Regional Department issued notices of assessment for IRES, ROBIN TAX, IRAP and VAT purposes for the tax periods verified. On July 24, 2020, the Company appealed against all the assessments to the Provincial Tax Commission. At the hearing on May 11, 2021, the Milan Provincial Tax Commission upheld the company’s appeals. On September 24, 2021, the Office filed an appeal and, on November 19, 2021, the Company filed a counter-claim to the appeal that was discussed at the hearing on June 10, 2022, during which the Regional Tax Commission of Milan rejected the Office’s appeal that did not appeal in Cassation Court. The judgment became definitive, and the dispute was definitively settled in favor of the company. The 10.3 million euro provision for risks has been released. Linea Ambiente S.r.l. - General IRES/IRAP/VAT audit for fiscal years 2017-2019 On October 13, 2022, the Finance Police - Brescia Economic-Financial Unit - opened a general audit for IRES, IRAP and VAT purposes against the company Linea Ambiente S.r.l. for the tax periods 2017- 2019. This audit was completed on October 28, 2022. The tax audit report disputed the deductibility of certain costs incurred by the company during the period audited. On the basis of the notice of assessment issued by the Brescia Finance Police and having unsuccessfully exhausted the attempts to adhere to it, the Brescia Revenue Agency/Provincial Directorate notified the Company (and, with regard to IRES, its consolidating company A2A S.p.A.) of six notices of assessment for IRES for the years 2017/2019, IRAP for the years 2017/2018 and VAT for the years 2017/2019. The company appealed to the competent bodies. A risk provision of 0.747 million euro has been recognized. 3 Attachments to the notes to the Consolidated financial statements Consolidated financial statements 2024 144 A2A Consolidated financial statements 2024 Attachments to the notes to the Consolidated financial statements 3.1 1\. List of companies included in the consolidated annual report Company name Registered office Share capital (thousands of euro unless otherwise indicated) % of shareholding consolidated by Group at 12 31 2024 (line-by-line consolidation) Shareholding % Shareholder Scope of consolidation Unareti S.p.A. Brescia 965,250 100.00% 100.00% A2A S.p.A. Duereti S.r.l. Milan 125,000 90.00% 90.00% A2A S.p.A. A2A Calore & Servizi S.r.l. Brescia 150,000 100.00% 100.00% A2A S.p.A. A2A Smart City S.p.A. Brescia 3,448 100.00% 100.00% A2A S.p.A. A2A Energia S.p.A. Milan 3,000 100.00% 100.00% A2A S.p.A. A2A Ciclo Idrico S.p.A. Brescia 70,000 100.00% 100.00% A2A S.p.A. A2A Ambiente S.p.A. Brescia 250,000 100.00% 100.00% A2A S.p.A. A2A Montenegro d.o.o. Podgorica (Montenegro) 100 100.00% 100.00% A2A S.p.A. A2A Energiefuture S.p.A. Milan 50,000 100.00% 100.00% A2A S.p.A. A2A gencogas S.p.A. Milan 450,000 100.00% 100.00% A2A S.p.A. TEXELERA S.c. a r.l. Milan 10 51.00% 51.00% A2A S.p.A. A2A Services & Real Estate S.p.A. Milan 1,050 100.00% 100.00% A2A S.p.A. (81.33%) Ambiente Energia Brianza S.p.A (8.38%) Acinque S.p.A.(10.29%) A2A Airport Energy S.p.A. Milan 5,200 100.00% 100.00% A2A Calore & Servizi S.r.l. Retragas S.r.l. Brescia 34,495 91.60% 91.60% A2A S.p.A. (87.27%) Unareti S.p.A. (4.33%) Camuna Energia S.r.l. Cedegolo (BS) 900 89.00% 89.00% A2A S.p.A. (74.50%) Linea Green S.p.A. (14.50%) A2A Alfa S.r.l. in liquidation Milan 100 70.00% 70.00% A2A S.p.A. Azienda Servizi Valtrompia S.p.A. Gardone Valtrompia (BS) 8,939 74.80% 74.80% A2A S.p.A. (74.55%) Unareti S.p.A. (0.25%) Yada Energia S.r.l. Milan 4,000 100.00% 100.00% A2A Energia S.p.A. LaboRAEE S.r.l. Milan 90 100.00% 100.00% Amsa S.p.A. Ecolombardia 4 S.p.A. Milan 13,515 68.78% 68.78% A2A Ambiente S.p.A. Sicura S.r.l. Milan 1,040 96.80% 96.80% A2A Ambiente S.p.A. Sistema Ecodeco UK Ltd Canvey Island Essex (UK) 250 (GBP) 100.00% 100.00% A2A Ambiente S.p.A. A.S.R.A.B. S.p.A. Cavaglià (BI) 2,582 100.00% 100.00% A2A Ambiente S.p.A. Nicosiambiente S.r.l. Milan 50 99.90% 99.90% A2A Ambiente S.p.A. Bioase S.r.l. Sondrio 677 70.00% 70.00% A2A Ambiente S.p.A. Aprica S.p.A. Brescia 10,000 100.00% 100.00% A2A Ambiente S.p.A. Amsa S.p.A. Milan 10,000 100.00% 100.00% A2A Ambiente S.p.A. Bergamo Servizi S.r.l. Brescia 10 100.00% 100.00% Aprica S.p.A. A2A Integrambiente S.r.l. Brescia 10 100.00% 100.00% A2A Ambiente S.p.A. (74%) Aprica S.p.A. (1%) Amsa S.p.A. (25%) A2A Trezzo Ambiente S.r.l. Brescia 11,000 90.00% 90.00% A2A Ambiente S.p.A. (86%) A2A Calore & Servizi S.r.l. (4%) Attachments to the notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 145 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Company name Registered office Share capital (thousands of euro unless otherwise indicated) % of shareholding consolidated by Group at 12 31 2024 (line-by-line consolidation) Shareholding % Shareholder A2A Security S.c.p.a. Milan 52 99.82% 99.82% A2A S.p.A. (43.71%) Unareti S.p.A. (17.48%) A2A Ciclo Idrico S.p.A. (9.98%) Amsa S.p.A. (8.70%) A2A gencogas S.p.A. (3.76%) A2A Ambiente S.p.A. (4.12%) A2A Calore & Servizi S.r.l. (2.48%) A2A Energiefuture S.p.A. (1.84%) A2A Energia S.p.A. (0.18%) A2A Energy Solutions S.r.l. (0.18%) Linea Green S.p.A. (0.18%) LD Reti S.r.l. (0.18%) Linea Ambiente S.r.l. (0.18%) A2A Smart City S.p.A. (0.18%) Acinque S.p.A. (0.18%) Aprica S.p.A. (0.37%) Retragas S.r.l. (0.18%) Lereti S.p.A. (0.18%) Azienda Servizi Valtrompia S.p.A. (0.18%) Acinque Energia S.r.l. (0.18%) Acinque Tecnologie S.p.A. (0.18%) Reti Valtellina Valchiavenna S.r.l. (0.18%) Acinque Farmacie S.r.l. (0.18%) AGRIPOWER S.p.A. (0.18%) Ambiente Energia Brianza S.p.A. (0.18%) A2A Illuminazione Pubblica S.r.l. (0.18%) RetiPiù S.r.l. (0.18%) Gelsia S.r.l. (0.18%) Gelsia Ambiente S.r.l. (0.18%) VGE 05 S.r.l. (0.18%) renewA21 S.r.l. (0.18%) renewA22 S.r.l. (0.18%) renewA23 S.r.l. (0.18%) renewA24 S.r.l. (0.18%) renewA25 S.r.l. (0.18%) CS Solar2 S.r.l. (0.18%) A2A Rinnovabili S.p.A. (0.18%) Corelli Energia S.r.l. (0.18%) CERVETERI ENERGIA S.r.l. (0.18%) R2R S.r.l. (0.18%) VGE 01 S.r.l. (0.18%) VGE 02 S.r.l. (0.18%) VGE 06 S.r.l. (0.18%) A2A Wind S.r.l. (0.18%) A2A Trezzo Ambiente S.r.l. (0.18%) Bioase S.r.l. (0.18%) A2A Airport Energy S.p.A. (0.18%) A2A Services & Real Estate S.p.A. (0.18%) Ecolombardia 4 S.p.A. (0.18%) Acinque Ambiente S.r.l.(0.18%) WALDUM TADINUM ENERGIA S.r.l. Gualdo Tadino (PG) 10 90.00% 90.00% A2A Ambiente S.p.A. A2A Energy Solutions S.r.l. Milan 4,000 100.00% 100.00% A2A S.p.A. A2A Rinnovabili S.p.A. Milan 50,000 100.00% 100.00% A2A S.p.A. Fair Renew S.r.l. Milan 10 60.00% 60.00% A2A Rinnovabili S.p.A. renewA21 S.r.l. Milan 20 100.00% 100.00% A2A Rinnovabili S.p.A. renewA22 S.r.l. Milan 220 100.00% 100.00% A2A Rinnovabili S.p.A. renewA23 S.r.l. Milan 20 100.00% 100.00% A2A Rinnovabili S.p.A. 146 A2A Consolidated financial statements 2024 Attachments to the notes to the Consolidated financial statements Company name Registered office Share capital (thousands of euro unless otherwise indicated) % of shareholding consolidated by Group at 12 31 2024 (line-by-line consolidation) Shareholding % Shareholder renewA24 S.r.l. Milan 20 100.00% 100.00% A2A Rinnovabili S.p.A. renewA25 S.r.l. Milan 20 100.00% 100.00% A2A Rinnovabili S.p.A. Des Energia Tredici S.r.l. Milan 10 100.00% 100.00% A2A Rinnovabili S.p.A. CS Solar2 S.r.l. Milan 15 100.00% 100.00% A2A Rinnovabili S.p.A. Solar italy V S.r.l. Milan 10 100.00% 100.00% A2A Rinnovabili S.p.A. Cilea Energia S.r.l. Milan - 100.00% 100.00% A2A Rinnovabili S.p.A. Tosti Energia S.r.l. Milan - 100.00% 100.00% A2A Rinnovabili S.p.A. Corelli Energia S.r.l. Milan - 100.00% 100.00% A2A Rinnovabili S.p.A. Gash 1 S.r.l. Milan 10 100.00% 100.00% A2A Rinnovabili S.p.A. Gash 2 S.r.l. Milan 10 100.00% 100.00% A2A Rinnovabili S.p.A. Volta Green Energy S.r.l. Milan 10 100.00% 100.00% A2A Rinnovabili S.p.A. Mogorella S.r.l. Milan 10 100.00% 100.00% A2A Rinnovabili S.p.A. Juwi Development 12 S.r.l. Milan 10 100.00% 100.00% A2A Rinnovabili S.p.A. Juwi Development 13 S.r.l. Milan 10 100.00% 100.00% A2A Rinnovabili S.p.A. A2A Storage S.r.l. Milan 10 100.00% 100.00% A2A Rinnovabili S.p.A. Parco Solare Friulano 2 S.r.l. Milan 10 70.00% 70.00% A2A Rinnovabili S.p.A. VGE 01 S.r.l. Milan 10 70.00% 70.00% Volta Green Energy S.r.l. VGE 02 S.r.l. Milan 10 100.00% 100.00% Volta Green Energy S.r.l. VGE 03 S.r.l. Milan 10 100.00% 100.00% Volta Green Energy S.r.l. VGE 04 S.r.l. Milan 10 100.00% 100.00% Volta Green Energy S.r.l. VGE 06 S.r.l. Milan 10 100.00% 100.00% Volta Green Energy S.r.l. R2R S.r.l. Milan 10 60.00% 60.00% A2A Rinnovabili S.p.A. R2R 01 S.r.l. Milan 10 100.00% 100.00% R2R S.r.l. R2R 02 S.r.l. Milan 10 100.00% 100.00% R2R S.r.l. R2R 03 S.r.l. Milan 10 100.00% 100.00% R2R S.r.l. R2R 04 S.r.l. Milan 10 100.00% 100.00% R2R S.r.l. LD Reti S.r.l. Lodi 32,976 100.00% 100.00% A2A S.p.A. Linea Green S.p.A. Cremona 7,000 100.00% 100.00% A2A S.p.A. Linea Ambiente S.r.l. Rovato (BS) 1,400 100.00% 100.00% A2A Ambiente S.p.A. AGRIPOWER S.p.A. Milan 600 100.00% 100.00% A2A Ambiente S.p.A. DONNA RICCA BIOENERGIA S.R.L. SOCIETA' AGRICOLA Milan 10 51.00% 51.00% AGRIPOWER S.p.A. IUMAGAS BIOENERGY SOCIETA' AGRICOLA A R.L. Milan 50 51.00% 51.00% AGRIPOWER S.p.A. MARSICA AGROENERGIA S.R.L. Milan 60 54.02% 54.02% AGRIPOWER S.p.A. PONZANO BIOENERGIA SOCIETA' AGRICOLA A R.L. Milan 40 51.00% 51.00% AGRIPOWER S.p.A. ROBERTA BIOENERGIA S.R.L. Milan 10 51.00% 51.00% AGRIPOWER S.p.A. SAN QUIRICO BIOENERGIA SOCIETA' AGRICOLA A R.L. Milan 160 100.00% 100.00% AGRIPOWER S.p.A. SCALENGHE BIOGAS SOCIETA' AGRICOLA S.R.L. Milan 10 82.00% 82.00% AGRIPOWER S.p.A. STROVINA BIOENERGIA SOCIETA' AGRICOLA A R.L. Milan 40 51.00% 51.00% AGRIPOWER S.p.A. Attachments to the notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 147 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report Company name Registered office Share capital (thousands of euro unless otherwise indicated) % of shareholding consolidated by Group at 12 31 2024 (line-by-line consolidation) Shareholding % Shareholder TORRE ZUINA SOCIETA' AGRICOLA A R.L. Milan 10 51.00% 51.00% AGRIPOWER S.p.A. VITTORIA BIOENERGIA S.R.L. Milan 50 75.00% 75.00% AGRIPOWER S.p.A. Biomax Società Agricola a r.l. Coriano (RN) 102 100.00% 100.00% AGRIPOWER S.p.A. Asm Energia S.p.A. Vigevano (PV) 2,511 45.00% 45.00% A2A Energia S.p.A. Acinque S.p.A. Monza 197,344 41.54% 41.34% A2A S.p.A. Lereti S.p.A. Como 86,450 100.00% 100.00% Acinque S.p.A. ComoCalor S.p.A. Como 3,516 51.00% 51.00% Acinque S.p.A. Reti Valtellina Valchiavenna S.r.l. Sondrio 2,000 100.00% 100.00% Acinque S.p.A. Acinque Energia S.r.l. Lecco 17,100 99.75% 99.75% Acinque S.p.A. Acinque Ambiente S.r.l. Varese 4,500 100.00% 100.00% Acinque S.p.A. Acinque Tecnologie S.p.A. Monza 6,000 100.00% 100.00% Acinque S.p.A. Acinque Innovazione S.r.l. Monza 21,800 100.00% 100.00% Acinque S.p.A. Acinque Farmacie S.r.l. Sondrio 100 100.00% 100.00% Acinque S.p.A. Agesp Energia S.r.l. Busto Arsizio (VA) 1,500 70.00% 70.00% Acinque S.p.A. Acinque Energy Greenway S.r.l. Monza 8,464 70.00% 70.00% Acinque Tecnologie S.p.A. A2A E-MOBILITY S.r.l. Milan 1,000 100.00% 100.00% A2A S.p.A. Ambiente Energia Brianza S.p.A. Seregno (MB) 119,496 34.95% 33.52% A2A S.p.A. A2A Illuminazione Pubblica S.r.l. Brescia 19,000 100.00% 100.00% Ambiente Energia Brianza S.p.A. Gelsia S.r.l. Seregno (MB) 20,345 100.00% 100.00% Ambiente Energia Brianza S.p.A. RetiPiù S.r.l. Desio (MB) 110,000 100.00% 100.00% Ambiente Energia Brianza S.p.A. VGE 05 S.r.l. Seregno (MB) 500 90.00% 90.00% Ambiente Energia Brianza S.p.A. Gelsia Ambiente S.r.l. Desio (MB) 4,671 100.00% 100.00% Ambiente Energia Brianza S.p.A. (70%) A2A Integrambiente S.r.l. (30%) CERVETERI ENERGIA S.r.l. Milan 21 100.00% 100.00% 4NEW S.r.l. STCS S.r.l. Milan 10 100.00% 100.00% A2A Rinnovabili S.p.A. LA CASTILLEJA ENERGIA SL Madrid (ES) 4 100.00% 100.00% GLOBAL ONEGA SL SISTEMES ENERGETICS CONESA I SOCIEDAD LIMITADA Madrid (ES) 3 100.00% 100.00% RESPETO AL MEDIO AMBIENTE SL (50%) GLOBAL ONEGA SL (50%) GLOBAL ONEGA SL Madrid (ES) 10 100.00% 100.00% A2A Rinnovabili S.p.A. RESPETO AL MEDIO AMBIENTE SL Madrid (ES) 3 100.00% 100.00% A2A Rinnovabili S.p.A. A2A Wind S.r.l. Milan 10 100.00% 100.00% A2A Rinnovabili S.p.A. 148 A2A Consolidated financial statements 2024 Attachments to the notes to the Consolidated financial statements 3.2 2\. List of shareholdings in companies carried at equity Company name Registered office Share capital (thousands of euro) Shareholding % Shareholder Carrying amount at 12 31 2024 (thousands of euro) Shareholdings in companies carried at equity PremiumGas S.p.A. in liquidation Bergamo 120 50.00% A2A Alfa S.r.l. in liquidation \- Ergosud S.p.A. Rome 81,448 50.00% A2A gencogas S.p.A. \- Metamer S.r.l. San Salvo (CH) 2,000 50.00% A2A Energia S.p.A. 3,060 NETCITY S.r.l. Pescara 500 49.00% A2A Energia S.p.A. 1,692 SET S.r.l. Toscolano Maderno (BS) 104 49.00% A2A S.p.A. 1,245 Messina in Luce S.c.a.r.l. Monza 20 70.00% Acinque Tecnologie S.p.A. (55%) A2A Illuminazione Pubblica S.r.l. (15%) 11 Serio Energia S.r.l. Concordia sulla Secchia (MO) 1,000 40.00% A2A S.p.A. 275 Visano Soc. Trattamento Reflui S.c.a.r.l. in liquidation Brescia 25 40.00% A2A S.p.A. \- Blugas Infrastrutture S.r.l. Mantova 14,300 2 7.5 1 % A2A S.p.A. 4,549 ES Energy S.r.l. Jesi (AN) 10 50% A2A S.p.A. 394 COSMO Società Consortile a Responsabilità Limitata Brescia 100 52.00% A2A Calore & Servizi S.r.l. 136 Crit S.c.a.r.l. Cremona 548 33.00% A2A S.p.A. 69 G.Eco S.r.l. Treviglio (BG) 500 40.00% Aprica S.p.A. 3,261 Bergamo Pulita S.r.l. Bergamo 10 50.00% A2A Ambiente S.p.A. \- Fratelli Omini S.p.A. Novate Milanese (MI) 260 30.00% A2A Ambiente S.p.A. 7,118 ASM Codogno S.r.l. Codogno (LO) 1,898 49.00% Aprica S.p.A. 2,807 Prealpi Servizi S.r.l. in liquidation Busto Arsizio (VA) 5,451 12.47% Acinque S.p.A. \- Società Agricola Mattioli Energia S.r.l. Finale Emilia (MO) 20 20.00% AGRIPOWER S.p.A. 492 Total shareholdings 25,109 Attachments to the notes to the Consolidated financial statements Consolidated financial statements 2024 A2A 149 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated financial statements 3 Attachments to the notes to the Consolidated financial statements 4 Independent Auditors’ Report 3.3 3. List of holdings in other companies Company name Shareholding % Shareholder Carrying amount at 12 31 2024 (thousands of euro) Immobiliare-Fiera di Brescia S.p.A. 0.90% A2A S.p.A. AQM S.r.l. 7.80% A2A S.p.A. AvioValtellina S.p.A. 0.18% A2A S.p.A. Banca di Credito Cooperativo dell'Oglio e del Serio s.c. n.s. A2A S.p.A. L.E.A.P. S.c.a.r.l. 15.13% A2A S.p.A. Guglionesi Ambiente S.c.a.r.l. 1.01% A2A Ambiente S.p.A. S.I.T. S.p.A. 0.19% Aprica S.p.A. Stradivaria S.p.A. n.s. A2A S.p.A. DI.T.N.E. S.c.a.r.l. 1.79% A2A S.p.A. E.M.I.T. S.r.l. in liquidation 10.00% A2A S.p.A. COMIECO 5.63% A2A Ambiente S.p.A. CONAPI S.c.a.r.l. 20.00% A2A Ambiente S.p.A. Casalasca Servizi S.p.A. 13.88% Aprica S.p.A. Confidi Toscana S.c.a.r.l. n.s. Linea Ambiente S.r.l. Credito Valtellinese n.s. Linea Ambiente S.r.l. Futura S.r.l. 1.00% A2A Calore & Servizi S.r.l. Comodepur S.c.p.a. in liquidation 9.81% Acinque S.p.A. T.C.V.V.V. S.p.A. 0.25% Acinque S.p.A. Lago di Como Gal S.c.a.r.l. 3.00% Acinque S.p.A. Cantù Arena S.p.A. 2.00% Acinque Innovazione S.r.l. CIAL-CONSORZIO IMBALLAGGIO ALLUMINIO 0.82% A2A Ambiente S.p.A. COREVE 0.68% A2A Ambiente S.p.A. COREPLA-CONSORZIO RECUPERO PLASTICA NAZIONALE 3.04% A2A Ambiente S.p.A. RICREA-CONSORZIO NAZIONALE RICICLO E RECUPERO IMBALLAGGI ACCIAIO n.s. A2A Ambiente S.p.A. CIC-CONSORZIO ITALIANO COMPOSTATORI n.s. A2A Ambiente S.p.A. Musa S.c.a.r.l. 7.00% A2A S.p.A. CONSORZIO UMBRIA BIOENERGIA 90.02% AGRIPOWER S.p.A. Total investments in other companies 1,900 150 A2A Consolidated financial statements 2024 Attachments to the notes to the Consolidated annual report 3.4 Certification of the consolidated financial statements pursuant to article 154-bis, paragraph 5 of Legislative Decree no. 58/98 1\. The undersigned, Renato Mazzoncini, as CEO of A2A S.p.A., and Luca Moroni, as Financial Reporting Manager of A2A S.p.A. also considering the provisions of article 154-bis, paragraphs 3 and 4, of Legislative Decree no. 58 of February 24, 1998, as amended, hereby attest: • the adequacy in relation to the characteristics of the company and • the effective application of administrative and accounting procedures for the preparation of consolidated financial statements in the year 2024. 2\. It is also certified that: 2.1 the consolidated financial statements as at December 31, 2024: a) have been prepared in accordance with International Financial Reporting Standards as endorsed by the European Community pursuant to Regulation (EC) no. 1606/2002 of the European Parliament and of the Council of July 19, 2002; b) correspond to the information contained in the accounting ledgers and records; c) provide a true and fair representation of the equity, economic and financial situation of the issuer and the whole of the companies included in the scope of consolidation. 2.2 the Report on Operations includes reliable analysis on the performance, result of operations and the business of the issuer and of all entities included in the consolidated financial statements as well as description of principal risks and uncertainties to which they are exposed. Milan, March 20, 2025 Renato Mazzoncini (Chief Executive Officer) Luca Moroni (Financial Reporting Manager) Consolidated financial statements 2024 4 Independent Auditors’ Report 152 A2A Consolidated financial statements 2024 Independent Auditors’ Report 4 Independent Auditors’ Report EY S.p.A. Sede Legale: Via Meravigli, 12 – 20123 Milano Sede Secondaria: Via Lombardia, 31 – 00187 Roma Capitale Sociale Euro 2.975.000 i.v. Iscritt a alla S.O. del Regist r o delle Imprese pr esso la CCIAA di Milano Monza Br ianza Lodi Codice fiscale e numero di iscrizione 00434000584 - numero R.E.A. di Milano 606158 - P.IVA 00891231003 Iscritta al Regist ro Revisori Legali al n. 70945 Pubblicato sulla G.U. Suppl. 13 - IV Serie Speciale del 17/ 2/ 1998 A member fir m of Ernst & Young Global Limit ed EY S.p.A. Via Meravigli, 12 20123 Milano Tel: +39 02 722121 Fax: +39 02 722122037 ey.com Independent auditor’s report pursuant to art icle 14 of Legislat ive Decree n. 39, dated 27 January 2010 and article 10 of EU Regulation n. 537/ 2014 (Translation from t he original Italian text) To t he Shareholders of A2A S.p.A. Report on the Audit of t he Consolidated Financial Statements Opinion We have audited the consolidated f inancial statements of A2A Group (t he Group), which comprise t he consolidated balance sheet as at 31 December 2024, and t he consolidated income statement , the consolidated statement of comprehensive income, statement of changes in Group equit y and consolidated cash flow statement for the year then ended, and not es to t he consolidated financial statements, including material accounting policy information. In our opinion, the consolidated financial statements give a true and fair view of the financial position of t he Group as at 31 December 2024, and of it s f inancial performance and it s cash flows f or t he year then ended in accordance with IFRS accounting standards issued by International Accounting Standards Board as adopted by the European Union and with the regulations issued for implementing art. 9 of Legislative Decree n. 38/2005. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our responsibilit ies under t hose standards are fur t her described in t he Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our repor t. We are independent of A2A S.p.A. in accordance with t he regulations and standards on et hics and independence applicable to audits of financial statements under Italian Laws. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matt ers Key audit matters are those matters that , in our professional judgment , were of most significance in our audit of the consolidated financial statements of the current period. These matt ers were addressed in t he context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matt ers. EY S.p.A. Sede Legale: Via Meravigli, 12 – 20123 Milano Sede Secondaria: Via Lombardia, 31 – 00187 Roma Capitale Sociale Euro 2.975.000 i.v. Iscritt a alla S.O. del Regist r o delle Imprese pr esso la CCIAA di Milano Monza Br ianza Lodi Codice fiscale e numero di iscrizione 00434000584 - numero R.E.A. di Milano 606158 - P.IVA 00891231003 Iscritta al Regist ro Revisori Legali al n. 70945 Pubblicato sulla G.U. Suppl. 13 - IV Serie Speciale del 17/ 2/ 1998 A member fir m of Ernst & Young Global Limit ed EY S.p.A. Via Meravigli, 12 20123 Milano Tel: +39 02 722121 Fax: +39 02 722122037 ey.com Independent auditor’s report pursuant to art icle 14 of Legislat ive Decree n. 39, dated 27 January 2010 and article 10 of EU Regulation n. 537/ 2014 (Translation from t he original Italian text) To t he Shareholders of A2A S.p.A. Report on the Audit of t he Consolidated Financial Statements Opinion We have audited the consolidated f inancial statements of A2A Group (t he Group), which comprise t he consolidated balance sheet as at 31 December 2024, and t he consolidated income statement , the consolidated statement of comprehensive income, statement of changes in Group equit y and consolidated cash flow statement for the year then ended, and not es to t he consolidated financial statements, including material accounting policy information. In our opinion, the consolidated financial statements give a true and fair view of the financial position of t he Group as at 31 December 2024, and of it s f inancial performance and it s cash flows f or t he year then ended in accordance with IFRS accounting standards issued by International Accounting Standards Board as adopted by the European Union and with the regulations issued for implementing art. 9 of Legislative Decree n. 38/2005. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our responsibilit ies under t hose standards are fur t her described in t he Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our repor t. We are independent of A2A S.p.A. in accordance with t he regulations and standards on et hics and independence applicable to audits of financial statements under Italian Laws. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matt ers Key audit matters are those matters that , in our professional judgment , were of most significance in our audit of the consolidated financial statements of the current period. These matt ers were addressed in t he context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matt ers. Independent Auditors’ Report Consolidated financial statements 2024 A2A 153 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated annual report 3 Attachments to the notes to the Consolidated annual report 4 Independent Auditors’ Report 2 We identified the following key audit matters: Key Audit Mat t er Audit Response Estimate of revenues for the sale of gas and electricity Revenues from t he sale of goods and services include the est imated revenues accrued for gas and electricity services delivered to the customers between the date of last meter reading and 31 December 2024, as well as billed revenues based on effect ive consumptions for the period. The processes and met hodologies for assessing and det ermining the estimate of accrued revenues are based on complex assumptions that, by their nature, imply use of the management’s judgment, whereby t he estimat e developed by t he Gr oup for revenues from elect ricit y and gas services delivered t o each customer between t he dat e of last met er reading and year end are based on complex calculation processes derived from different IT systems. Additionally, such estimate is developed based on historical consumptions and t he profile of each cust omer, adjusted t o account for potential changes in consumptions. Considering t he judgment required and the complexit y of t he assumptions used in t he est imate of revenues fr om t he sale of elect r icit y and gas, we ident ified this area as a key audit mat t er. The disclosure of revenues recognition principles for gas and electricity sales is included in the paragraph “ Use of estimat es” of the notes to the consolidated financial statements. Our audit procedures in response to this key audit matter included, among others: assessment of t he processes and key cont r ols implemented by t he Company related to t he est imate of revenues for gas and electricity sales , including those related to Information Technology (IT); assessment of t he key assumptions used by the management ; assessment of t he effectiveness of t he General Cont rols of IT systems used in developing t he estimat e; assessment of historical trends of revenues estimate, and analysis of the impacts on total revenues; execution of test of details on a sample of data used by the management : analysis of the estimate against the data subsequently report ed. Lastly, we reviewed the adequacy of the disclosure included in t he notes to the consolidated financial statements. Impairment of tangible and intangible assets The consolidated financial statements of t he Group include as of 31 December 2024 tangible assets for Euro 7.517 million and intangible assets for Euro 4.299 million, of which Euro 1.753 million related to goodwill, allocated to the different Cash Generat ing Unit s (CGUs). Our audit procedures related to this key audit matters included, among ot hers: assessment of t he processes implemented by the Company related to the preparat ion of the Group’s strategic plan and the impairment test; 154 A2A Consolidated financial statements 2024 Independent Auditors’ Report 3 The processes and methodologies for assessing and determining the recoverable amount of each CGU, in t erms of value in use, are based on complex assumptions, that, by their nature, imply t he use of the management’s judgment, in part icular with reference to (i) the f orecast of future cash f lows relating to the period covered by the Group's strategic plan 2024-2035 approved and updated by the Directors on 11 November 2024, (ii) the normalized cash flows or t he net realized value of the assets assumed as a basis for the terminal value, (iii ) t he long- term growth rates and discount rates applied to such cash flows f orecasts and (iv) t he est imate of Industrial Residual Value (Valore Industriale Residuo). Such assumptions could be affected by future expectation and volatility of energy market conditions and macroeconomic events, by potential effects arising from climate change, as well as by changes in regulations, new authorization processes and legislative measur es. Considering t he judgment involved and t he complexit y of t he assumptions used in t he estimate of the recoverable amount, we have considered that this area represents a key audit mat t er. The disclosures related to t he impairment of asset s ar e included in the paragraph “ Use of estimates” , in the note n.1 “ Tangible Assets” and in note n.2 "Intangible Assets" of the notes to the consolidated financial stat ements that also shows t he sensit ivit y analysis by est imat ing the effects on the test arising from hypothetical variations on key assumptions. assessment of t he appropriateness of the determination of the CGUs and the allocating of assets and liabilities to the carrying value of ea ch CGU; assessment of the report produced by the management’s third-party specialist s, as well as the assessment of their competence, capability and objectivity; assessment of cash f lows forecasts and t heir consistency with energy market conditions, macroeconomic scenarios, possible effect s arising from climate change, regulatory environment, authorization processes and legislat ive measures; assessment of the consistency between the future cash flows assumed in the Group strategic plan and the cash flows forecasts assumed for each CGU, appropriately adjusted in order to exclude those that arise from future improving or enhancing the asset’s performance; assessment of t he accuracy of act ual result s against previous forecasts; assessment of the long-term growth rates and discount rat es. In perf orming our procedures, we assessed t he sensitivity analysis on key assumptions, including those related to main aspects of energy market conditions and climate change. We leveraged the use of EY valuat ion specialists who also performed an independent calculation. Lastly, we reviewed the adequacy of the disclosures included in the not es to the consolidat ed financial statement s wit h reference to the recoverability analysis of tangible and intangible assets. Responsibilit ies of Directors and Those Charged wit h Governance for t he Consolidated Financial Statements The Directors are responsible for the preparation of the consolidated financial statements that give a true and fair view in accordance with IFRS accounting standards issued by International Accounting Standards Board as adopted by the European Union and with the regulations issued for implementing art. 9 of Legislative Decree n. 38/2005, and, wit hin t he terms provided by the law, for such internal cont rol as they deter mine is necessary to enable t he preparation of f inancial statements that are f ree from material misstatement, whether due to fraud or error. Independent Auditors’ Report Consolidated financial statements 2024 A2A 155 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated annual report 3 Attachments to the notes to the Consolidated annual report 4 Independent Auditors’ Report 4 The Directors are responsible for assessing the Group’s ability to continue as a going concern and, when preparing t he consolidated financial statements, for t he appropriateness of the going concern assumption, and for appropriate disclosure thereof. The Directors prepare the consolidated financial statements on a going concern basis unless they either intend to liquidate the Parent Company A2A S.p.A. or to cease operations, or have no realistic alternative but to do so. The statutory audit committee (“ Collegio Sindacale” ) is responsible, within the terms provided by the law, for overseeing t he Group’s financial repor ting process. Auditor’s Responsibilities for t he Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether t he consolidated financial stat ements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing (ISA Italia) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregat e, they could reasonably be expected to influence the economic decisions of users taken on t he basis of t hese consolidated financial statement s. As par t of an audit in accordance wit h International Standards on Audit ing (ISA Italia), we have exercised professional judgment and maintained professional skepticism throughout the audit. In addition: we have ident ified and assessed the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, designed and performed audit procedures responsive to those risks, and obtained audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; we have obt ained an understanding of internal cont rol relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control; we have evaluated the appropriat eness of accounting policies used and the reasonableness of accounting est imates and related disclosures made by the Directors; we have concluded on the appropriat eness of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a mat erial uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to cont inue as a going concern. If we conclude that a material uncer tainty exists, we are required to draw attent ion in our auditor ’s report to the related disclosures in the financial st atement s or, if such disclosures are inadequate, to consider this matter in forming our opinion. Our conclusions are based on the audit evidence obtained up to t he date of our auditor ’s repor t. However, future event s or condit ions may cause the t he Group to cease to cont inue as a going concern; we have evaluated the overall presentat ion, struct ure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation; we have obt ained sufficient appropriate audit evidence regarding the financial informat ion of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. 156 A2A Consolidated financial statements 2024 Independent Auditors’ Report 5 We have communicated wit h those charged wit h governance, ident if ied at an appropriate level as required by ISA Italia, regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We have provided those charged wit h governance with a statement t hat we have complied wit h the ethical and independence requirements applicable in Italy, and we have communicated them all matters that may reasonably be thought to bear on our independence, and where applicable, the actions taken to eliminate relevant risks or the safeguard measures applied. From the matters communicated wit h those charged wit h governance, we have determined those matters that were of most significance in the audit of the financial statements of the current period and are t herefore the key audit mat t ers. We have described these matters in our auditor ’s repor t. Addit ional informat ion pursuant to art icle 10 of EU Regulation n. 537/ 14 The shareholders of A2A S.p.A., in the general meet ing held on 11 June 2015, engaged us to perform the audits of the consolidated financial statements for each of the years ending 31 December 2016 to 31 December 2024. We declare t hat we have not provided prohibited non-audit services, referred to article 5, par. 1, of EU Regulation n. 537/ 2014, and that we have remained independent of the Group in conducting the audit . We confirm that the opinion on the consolidated financial statements included in this report is consistent with the content of the additional report to the audit committee (Collegio Sindacale) in their capacity as audit committee, prepared pursuant to art icle 11 of the EU Regulation n. 537/ 2014. Report on compliance wit h other legal and regulatory requirements Opinion on the compliance wit h Delegated Regulation (EU) 2019/ 815 The Directors of A2A S.p.A. are responsible for applying the provisions of the European Commission Delegat ed Regulations (EU) 2019/ 815 for t he regulator y t echnical standards on t he specificat ion of a single elect ronic report ing for mat (ESEF – European Single Electronic Format) (t he “ Delegated Regulation” ) to the consolidated financial statements as of 31 December 2024, to be included in the annual financial report. We have performed the procedures under t he auditing standard SA It alia n. 700B, in order to express an opinion on the compliance of the consolidated financial statements as at 31 December 2024 wit h the provisions of the Delegated Regulation. In our opinion, the consolidated financial statement s as at 31 December 2024 have been prepared in the XHTML format and have been mar ked-up, in all material aspect s, in compliance with t he provisions of t he Delegated Regulation. Independent Auditors’ Report Consolidated financial statements 2024 A2A 157 1 Accounting statements of the consolidated financial statements 2 Notes to the Consolidated annual report 3 Attachments to the notes to the Consolidated annual report 4 Independent Auditors’ Report 6 Opinion and statement pursuant t o art icle 14, paragraph 2, subparagraph e), e-bis) and e-ter) of Legislative Decree n. 39 dated 27 January 2010 and pursuant t o art icle 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998 The Directors of A2A S.p.A. are responsible for t he preparation of t he Report on Operations and of the Report on Corporate Governance and Ownership Structure of A2A Group as at 31 December 2024, including their consistency with the related consolidated financial statements and their compliance with the applicable laws and regulations. We have performed the procedures required under audit standard SA Italia n. 720B, in order to: express an opinion on the consistency of the Report on Operations and of specific informat ion included in t he Report on Corporate Governance and Ownership St ruct ure as provided for by article 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998, with the consolidated financial statements; express an opinion of the compliance with the laws and regulations of the Report on Operations, excluding the section related to the consolidated sustainability information, and the above ment ioned specific information included in the Report on Corporate Governance and Ownership St ruct ure pursuant art icle n. 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998; issue a statement on any material misstatement in the Report on Operations and in certain specific information contained in the Report on Corporate Governance and Ownership Structure pursuant article n. 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998. In our opinion, the Report on Operations and the specific information contained in the Report on Corporate Governance and Ownership St ructure pursuant ar t icle n. 123-bis, paragraph 4, of Legislat ive Decree n. 58, dated 24 Febr uary 1998, are consistent with t he consolidated financial statements of A2A Group as at 31 December 2024. Furt hermore, in our opinion, the Repor t on Operations, excluding t he section related to the consolidated sustainability information, and the specific information contained in the Report on Corporate Governance and Ownership St ructure pursuant ar t icle n. 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998, comply with the applicable laws and regulations. With reference to the statement required by art. 14, paragraph 2, subparagraph e-t er ), of Legislative Decree n. 39, dated 27 January 2010, based on our knowledge and understanding of the entity and its environment obtained through our audit, we have no mat ters to report . Our opinion on compliance with applicable laws and regulations does not extend to the section of the Report on Operations related to consolidated sustainability information. The conclusion on the compliance of this section with the applicable standards governing its preparation criteria and the compliance with the disclosure requirements pursuant to article 8 of (EU) Regulation 2020/ 852 are formulated by us in t he attest ation report pursuant to article 14-bis of Legislat ive Decree No. 39 dated 27 January 2010. Milan, 31 March 2025 EY S. p.A. Signed by: Enrico Lenzi, Auditor This independent auditor’s report has been translated into the English language solely for the convenience of international readers. Accordingly, only the original text in Italian language is authoritative. 2024 Separate Financial Statements Separate financial statements 2024 Overview of performance, financial conditions and net debt 4 1 Annual financial statements 1.1 Balance sheet 12 1.2 Income statement 14 1.3 Statement of comprehensive income 15 1.4 Cash-flow statement 16 1.5 Statement of changes in equity 17 1.6 Balance sheet pursuant to Consob Resolution no. 17221 of March 12, 2010 18 1.7 Income statement pursuant to Consob Resolution no. 17221 of March 12, 2010 20 2 Notes 2.1 General information on A2A S.p.A. 22 2.2 Financial statements 24 2.3 Basis of preparation 25 2.4 Changes in international accounting standards 26 2.5 Accounting standards and policies 29 2.6 Notes to the balance sheet 42 2.7 Net debt 64 2.8 Notes to the income statement 66 2.9 Note on related party transactions 83 2.10 Significant non-recurring events and transactions, pursuant to Consob Communication No. DEM/6064293 of July 28, 2006 88 2.11 Guarantees and commitments with third parties 89 2.12 Other information 90 2 A2A Separate financial statements 2024 Contents This is a translation of the Italian original “Bilancio separato 2024” and has been prepared solely for the convenience of international readers. In the event of any ambiguity the Italian text will prevail. The Italian original is available at the website 127 4 Independent Auditors’ Report 133 5 Report of the Board of Auditors 3 Attachments 3.1 1/a. Statement of changes in investments in subsidiaries 116 3.2 1/b. Statement of changes in investments in affiliates 117 3.3 1/c. Statement of changes in investments in other companies 118 3.4 2/a. List of investments in subsidiaries 119 3.5 2/b. List of investments in affiliates 121 3.6 Key data of the financial statements of the main subsidiaries and affiliates prepared according to IAS/IFRS (pursuant to art. 2429.4 of the Italian Civil Code) 122 3.7 Key data of the financial statements of the main subsidiaries and affiliates prepared according to ITALIAN GAAP (pursuant to art. 2429.4 of the Italian Civil Code) 124 3.8 Certification of the financial statements pursuant to article 154-bis, paragraph 5 of Legislative Decree no. 58/98 126 Separate financial statements 2024 A2A 3 4 A2A Separate financial statements 2024 Overview of performance, financial conditions and net debt Overview of performance, financial conditions and net debt A2A S.p.A. The Parent Company is responsible for strategic vision, planning, control, financial management and coordination of the A2A Group activities. It also provides services to support the business and operating activities of Group companies (administrative, legal, supply, and personnel management services, information technology and communications) in order to optimize the resources available and use existing expertise in the most efficient manner. These services are governed by intercompany service agreements. Finally, A2A S.p.A. provides its subsidiaries with office space and operating areas, as well as related services. A2A S.p.A. owns some hydroelectric plants in Valtellina, the hydroelectric unit in Calabria and the unit in Mese, as well as the hydroelectric plants of the unit in Udine. Results millions of euro 12 31 2024 12 31 2023 Change Percentage change Revenues Revenues from the sale of goods and services 8,700.0 11,046.0 (2,346.0) (21.2%) Other operating revenues 52.8 16.4 36.4 n.s. Total revenues 8,752.8 11,062.4 (2,309.6) (20.9%) Operating costs Costs for raw materials and services (7,304.3) (9,790.8) 2,486.5 (25.4%) Other operating costs (576.5) ( 6 5 7.7 ) 81.2 (12.3%) Total operating costs (7,880.8) (10,448.5) 2,567.7 (24.6%) Labor costs (206.3) (195.7) (10.6) 5.4% Gross operating margin 665.7 418.2 2 47.5 59.2% Depreciation, amortization and write-downs (164.3) (133.5) (30.8) 23.1% Accruals (28.8) (48.7) 19.9 (40.9%) Net operating result 472.6 236.0 236.6 n.s. Result from non-recurring transactions - 1.8 (1.8) (100.0%) Financial income 651.7 520.1 131.6 25.3% Financial expenses (172.2) (182.5) 10.3 (5.6%) Total financial balance 479.5 3 37.6 141.9 42.0% Result before taxes 952.1 575.4 376.7 65.5% Income tax expenses (163.7) ( 8 7.4 ) (76.3) 87. 3 % Profit from continuing operations after tax 788.4 488.0 300.4 61.6% Net result from operating assets sold/held for sale - 0.2 (0.2) (100.0%) Net result 788.4 488.2 300.2 61.5% In the year in question A2A S.p.A. shows revenues for a total of 8,752.8 million euro (11,062.4 million euro in the previous year). Sales revenues (8,426.5 million euro) mainly refer to electricity sales to wholesalers, institutional operators, even on IPEX markets (Italian Power Exchange) and subsidiaries, sales of gas and fuels to third parties and subsidiaries and the sale of materials and environmental Overview of performance, financial conditions and net debt Separate financial statements 2024 A2A 5 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors certificates. Revenues from services (273.5 thousand euro) mainly relate to provisions to subsidiaries of administrative, fiscal, legal, managerial and technical services, and revenues from the Municipality of Milan for the video surveillance service. The decrease in sales revenues is mainly due to the decrease in prices on the wholesale markets of both electricity and gas, as well as lower revenues from sales of CO 2 mainly due to the lower functioning of the thermoelectric plants managed by A2A S.p.A. through tolling contracts. Other revenues (52.8 million euro) have increased compared to the previous year mainly due to the restoration of the feed-in tariff incentive mechanism (in 2023, these incentives amounted to zero because the PUN 2022 exceeded the 180 euro/MWh threshold set by the GRIN incentive calculation formula), as well as the consideration granted by EP Produzione as the designee for dispatching of the Scandale plant for the year 2024. Operating costs amounted to 7,880.8 million euro (10,448.5 million euro at December 31, 2023) and refer to costs for raw materials (6,825.9 million euro) related primarily to purchases of energy and fuels, both for electricity production and for resale to customers and wholesalers, in addition to purchases of materials and environmental certificates; service costs (478.5 million euro), which refer to the logistics costs for the transport on the national network of natural gas, costs for maintenance and repairs related to both the plants and the information systems of the company, as well as costs for services from third parties and from subsidiaries and associates; to other operating costs (576.5 million euro), which refer to the contracting of the thermoelectric production plants tolling agreement of subsidiaries, the costs relating to the use of a portion of the electricity capacity of Ergosud S.p.A., as well as water derivation fees, damages and penalties. The decrease in operating costs was mainly due to a decrease in raw material costs, attributable to lower unit procurement prices as a result of the decrease recorded in the reference scenario, a decrease in purchases of CO 2 to the lower volumes emitted related to the reduction in thermoelectric production, and a decrease in service costs mainly due to lower costs for natural gas transportation and storage and lower maintenance costs, partly offset by higher costs for IT services related to the development of new projects. Labor costs equaled 206.3 million euro (195.7 million euro at December 31, 2023). The increase for the year includes both the effect of contractual renewals and remuneration policy actions. Due to the dynamics mentioned above the Gross Operating Margin amounted to 665.7 million euro (418.2 million euro at December 31, 2023). The Amortization and depreciation, provisions and write-downs of the year amounted to 193.1 million euro (182.2 million euro at December 31, 2023) and include amortization, depreciation and write- downs of the intangible and tangible assets for 164.3 million euro (133.5 million euro at December 31, 2023) and provisions for 28.8 million euro (48.7 million euro at December 31, 2023) mainly related provisions for risks. “Net operating income” was positive for 472.6 million euro (236.0 million euro at December 31, 2023). The “Result from non-recurring transactions” stands at zero, whereas it amounted to 1.8 million euro at December 31, 2023, attributed to the capital gain from the sale of a land parcel in the Bovisa area within the Municipality of Milan. “Financial operations” reported a positive balance of 479.5 million euro (positive for 337.6 million euro at December 31, 2023). This item includes dividends from investees of 395.7 million euro (283.2 million euro at December 31, 2023), as well as net financial income of 83.8 million euro (net financial income of 54.4 million euro at December 31, 2023). The Pre-tax result was positive for 952.1 million euro (positive for 575.4 million euro at December 31, 2023). 6 A2A Separate financial statements 2024 Overview of performance, financial conditions and net debt “Income tax expenses” amounted to 163.7 million euro (87.4 million euro as at December 31, 2023) and refer to current taxes calculated on taxable income IRES and IRAP, partly offset by deferred tax assets and liabilities. The “Net result from operating assets sold/held for sale” was zero, while in the previous year it was positive for 0.2 million euro and referred to the collection from Retragas S.r.l. of the portion due to A2A S.p.A. relating to the price adjustment of the sale of the Val Staffora BU carried out by Retragas S.r.l. to ROMEO GAS S.p.A.. The “Result for the year” was positive for 788.4 million euro (488.2 million euro at December 31, 2023). * * * Net year capex amounted to 1,452.6 million euro and related to net investments in equity investments, in particular the acquisition of 90% of Duereti S.r.l. from E-distribuzione, as well as on the hydroelectric plants, computer network equipment and devices, buildings, fixed assets in progress, capex in the Group’s information systems and software. Overview of performance, financial conditions and net debt Separate financial statements 2024 A2A 7 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Balance sheet and financial position millions of euro 12 31 2024 12 31 2023 Change Percentage change Capital employed Net fixed capital 6,441.2 5,175.6 1,265.6 24.5% \- Tangible assets 873.0 895.7 (22.7) (2.5%) \- Intangible assets 190.2 204.3 (14.1) (6.9%) \- Shareholdings and other non-current financial assets (*) 5 , 5 4 7.6 4 , 22 7.6 1,320.0 31.2% \- Other non-current assets/liabilities (*) 24.2 46.9 (22.7) (48.4%) \- Deferred tax assets/liabilities 99.4 95.1 4.3 4.5% \- Provisions for risks, charges and liabilities for landfills (183.6) (170.9) (12.7) 7.4 % \- Employee benefits (109.6) (123.1) 13.5 (11.0%) of which with counter-entry to equity (25.5) (36.1) 10.6 (29.4%) Net Working Capital and Other Current Assets/Liabilities (139.6) (398.7) 259.1 (65.0%) Net Working Capital: (275.5) (625.6) 350.1 (56.0%) Inventories 183.3 173.0 10.3 6.0% Trade receivables 1,956.7 2,179.9 (223.2) (10.2%) Trade payables (2,415.5) (2,978.5) 563.0 (18.9%) Other current assets/liabilities: 135.9 226.9 (91.0) (40.1%) \- Other current assets/liabilities (*) 208.2 262.2 (54.0) (20.6%) \- Current tax assets/tax liabilities (72.3) (35.3) ( 3 7.0 ) n.s. of which with counter-entry to equity (11.3) (2.4) (8.9) n.s. Total capital employed 6,301.6 4,776.9 1,524.7 31.9% Sources of funds Shareholders’ equity 5,016.5 3,788.7 1 , 2 2 7. 8 32.4% Total financial position after one year 5,634.9 4,773.6 861.3 18.0% Total financial debt within one year (4,349.8) (3,785.4) (564.4) 14.9% Total Net Financial Position 1,285.1 988.2 296.9 30.0% of which with counter-entry to equity (5.4) (2.3) (3.1) n.s. Total sources 6,301.6 4,776.9 1,524.7 31.9% (*) Excluding balances included in the Net Financial Position. “Capital employed” totaled 6,301.6 million euro at December 31, 2024, partly covered by “Equity” in the amount of 5,016.5 million euro and net debt of 1,285.1 million euro; provided below are the main items that make up the Capital Employed. The “Net fixed capital” amounted to 6,441.2 million euro, up 1,265.6 million euro compared to December 31, 2023. Changes are detailed below: • Tangible assets decreased by 22.7 million euro due to: • decrease of 106.6 million euro for the depreciation charge for the year; • investments made during the year for a total of 68.8 million euro; • other increases in the amount of 15.1 million euro resulting mainly from changes in usage rights contracts; 8 A2A Separate financial statements 2024 Overview of performance, financial conditions and net debt • Intangible assets increased by 14.1 million euro on December 31, 2023, due to: • investments made during the year for a total of 72.8 million euro; • decrease of 57.2 million euro for the depreciation charge for the year; • other decreases amounting to 29.2 million euro; • decrease of 0.5 million euro for write-downs and divestments; • Equity investments and Other non-current financial assets amounted to 5,547.6 million euro, up 1,320.0 million euro compared to December 31, 2023, attributable to: • the acquisition for 1,228.8 million euro of 90% of the company Duereti S.r.l. after the closing of the transaction with E-distribuzione took, enabling the company to undertake power distribution activities in several municipalities within the provinces of Milan and Brescia; • 50.0 million euro increase in the shareholding in A2A Rinnovabili S.p.A. following the conversion of the second tranche of part of the financial receivable from the company into equity of the same; • increase of 10.0 million euro relating to the capital contribution in the investee company A2A Services & Real Estate S.p.A.; • increase of 10.0 million euro relating to the capital contribution in the investee company A2A Energy Solution S.r.l.; • purchase for 8.8 million euro of the 4.40% stake in LD Reti S.r.l.; • incorporation of the company TEXELERA S.c.a r.l., 51% owned, and subsequent capital contribution of 2.0 million euro; • collection of 0.8 million euro related to the investment in Proaris S.r.l. in liquidation pending the conclusion of its liquidation process; • subscription of the capital increase of the shareholding in the LEAP Consortium for 0.2 million euro, bringing the ownership percentage to 17.5%; • increase of 11.0 million euro in other financial assets, in particular investments made in innovative start-ups through Corporate Venture Capital projects, measured at fair value at year-end; • Other non-current assets and liabilities show a decrease of 22.7 million euro as a result of the lower non-current assets relating to both security deposits and credits towards the tax authorities for tax breaks provided for by building bonuses expiring beyond the following financial year; • Deferred tax assets amounted to 99.4 million euro (95.1 million euro at December 31, 2023) and showed an increase of 4.3 million euro. • Provisions for risks, charges and liabilities for landfills recorded an increase of 12.7 million euro. The following should be noted: an increase resulting from net provisions for the year of 30.9 million euro, mainly related to public water derivation fees and lawsuits pending with third parties; utilizations for the year of 31.1 million euro, while other positive changes amounted to 12.9 million euro; • Employee benefits showed a decrease of 13.5 million euro, referring to actuarial valuations, disbursements for the year and payments to pension funds, partly offset by net provisions for the year. Net Working Capital and Other Current Assets/Liabilities The “Net Working Capital”, defined as the algebraic sum of trade receivables, closing inventories and trade payables, amounted to a negative 275.5 million euro, down by 350.1 million euro compared to December 31, 2023. Comments on the main items are given below: • “Inventories” amounted to 183.3 million euro (173.0 million euro at December 31, 2023), net of the relative obsolescence provision for 0.8 million euro, unchanged compared to the previous financial year. The increase is mainly attributable to the increase in gas inventories compared to the end of the previous year, reflecting the higher volumes of gas in storage; • “Trade receivables” amounted to 1,956.7 million euro (2,179.9 million euro at December 31, 2023), with a decrease of 223.2 million euro. The decrease in trade receivables is mainly attributable to the reduction in tariffs for the sale of electricity and gas observed during the year in the reference scenario. The “Bad debts provision”, calculated in compliance with IFRS 9, amounted to 0.8 million euro and showed a net increase of 9.3 million euro compared to December 31, 2023; • “Trade payables” amounted to 2,415.5 million euro and decreased by 563.0 million euro as a result of the reduction in commodities trading transactions with bilateral counterparties. Overview of performance, financial conditions and net debt Separate financial statements 2024 A2A 9 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors “Other current assets/liabilities” showed a net decrease of 91.0 million euro, mainly attributable to: • net increase in derivative assets for 126.5 million euro; • decrease in security deposits for 254.9 million euro; • net increase in current tax liabilities of 37.0 million euro; • net increase in tax consolidation assets/liabilities of 56.3 million euro; • decrease in payables related to advance receipts of electricity and gas futures contracts whose economic manifestation will be in the next financial year for 17.2 million euro; • other increases in other current assets for 0.9 million euro. Shareholders’ equity Equity amounted to 5,016.5 million euro and showed a positive change for a total of 1,227.8 million euro. The result for the year had a positive effect of 788.4 million euro, offset by the distribution of the dividend in the amount of 300.1 million euro, as well as the recognition of the reserve related to the first hybrid subordinated perpetual bond issue in Green - use of proceeds with a nominal value of 750 million euro, net of transaction costs and tax effect in the amount of 8.2 million euro and the payment of the first tranche of coupons in the amount of 9.4 million euro and the related tax effect of 2.2 million euro. There was also a negative effect in the valuation of cash flow hedge derivatives and IAS 19 reserves for 1.4 million euro. The “Net Financial Position” at December 31, 2024 amounted to 1,285.1 million euro (988.2 million euro at end 2023). The gross debt amounted to 7,185.4 million euro, up by 692.1 million euro compared to 31 December 2023. The liquidity and equivalents amounted to 1,323.2 million euro, down by 164.2 million euro. The other net financial assets/liabilities showed an active balance of 4,577.2 million euro with a net increase of 559.5 million euro as compared with December 31, 2023. * * * The company availed itself of the option provided for in Article 40, paragraph 2 of Legislative Decree no.127/1991 to present the Report on Operations of the Separate Financial Statements and the Consolidated Financial Statements in a single document. 1 Annual financial statements Separate financial statements 2024 12 A2A Separate financial statements 2024 Annual financial statements 1.1 Balance sheet (1) Assets amounts in euro Note 12 31 2024 12 31 2023 Non-current assets Tangible assets 1 872,997,315 895,732,259 Intangible assets 2 190,218,348 204,289,861 Shareholdings 3 5,511,097,534 4,202,373,558 Other non-current financial assets 3 401,643,203 574,944,016 Deferred tax assets 4 99,326,563 95,046,576 Other non-current assets 5 28,701,910 50,293,343 Total non-current assets 7,103,984,873 6,022,679,613 Current assets Inventories 6 183,295,985 173,048,742 Trade receivables 7 1,956,695,628 2,179,878,054 Other current assets 8 1,117,181,111 1,981,555,526 Current financial assets 9 4,229,639,783 3,478,748,427 Current tax assets 10 16,542,579 17,034,418 Cash and cash equivalents 11 1,323,166,285 1,487,378,564 Total current assets 8,826,521,371 9,317,643,731 Non-current assets held for sale - - Total assets 15,930,506,244 15,340,323,344 (1) As required by Consob Resolution no. 17221 of March 12, 2010, the effects of relations with related parties in the separate financial statements are highlighted in the accounting statements and commented on in Note 34. Significant non-recurring events and transactions in the separate financial statements are provided in Note 35 pursuant to Consob Communication DEM/6064293 of July 28, 2006. Annual financial statements Separate financial statements 2024 A2A 13 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Equity and liabilities amounts in euro Note 12 31 2024 12 31 2023 Equity Share capital 12 1,629,110,744 1,629,110,744 (Treasury shares) - - Reserves 13 2,599,010,980 1,671,334,819 Net result of the year 14 788,384,491 488,210,234 Total equity 5,016,506,215 3,788,655,797 Liabilities Non-current liabilities Non-current financial liabilities 15 5,982,457,503 5,312,613,362 Employee benefits 16 109,634,645 123,148,493 Provisions for risks, charges and liabilities for landfills 17 183,612,424 170,854,446 Other non-current liabilities 18 21,995,257 14,157,804 Total non-current liabilities 6,297,699,829 5,620,774,105 Current liabilities Trade payables 19 2,415,495,893 2,978,488,057 Other current liabilities 19 908,989,830 1,719,337,012 Current financial liabilities 20 1,202,973,435 1,180,741,454 Tax liabilities 21 88,841,042 52,326,919 Total current liabilities 4,616,300,200 5,930,893,442 Total liabilities 10,914,000,029 11,551,667,547 Liabilities associated with non-current assets held for sale - - Total equity and liabilities 15,930,506,244 15,340,323,344 14 A2A Separate financial statements 2024 Annual financial statements 1.2 Income statement (1) amounts in euro Note 01 01 2024 12 31 2024 01 01 2023 12 31 2023 Revenues Revenues from the sale of goods and services 8,700,014,382 11,045,993,962 Other operating income 52,802,126 1 6, 4 4 7,07 8 Total revenues 23 8,752,816,508 11,062,441,040 Operating expenses Expenses for raw materials and services 7,304,341,257 9,790,846,301 Other operating expenses 576,500,085 657,678,357 Total operating expenses 24 7,880,841,342 10,448,524,658 Labour costs 25 206,233,576 195,726,649 Gross operating income - EBITDA 26 665,741,590 418,189,733 Depreciation, amortization, provisions and write-downs 27 193,120,462 182,244,787 Net operating income - EBIT 28 472,621,128 235,944,946 Result from non-recurring transactions 29 - 1,789,992 Financial balance Financial income 651,696,159 520,117,596 Financial expenses 172,189,763 182,478,065 Total financial balance 30 479,506,396 337,639,531 Result before taxes 952,127,524 575,374,469 Income taxes 31 163,743,033 87,353,525 Result after taxes from operating activities 788,384,491 488,020,944 Net result from discontinued operations 32 - 189,290 Net result of the year 33 788,384,491 488,210,234 (1) As required by Consob Resolution no. 17221 of March 12, 2010, the effects of relations with related parties in the separate financial statements are highlighted in the accounting statements and commented on in Note 34. Significant non-recurring events and transactions in the separate financial statements are provided in Note 35 pursuant to Consob Communication DEM/6064293 of July 28, 2006. Annual financial statements Separate financial statements 2024 A2A 15 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 1.3 Statement of comprehensive income amounts in euro 12 31 2024 12 31 2023 Net result of the year (A) 788,384,491 488,210,234 Actuarial gains/(losses) on Employee’s Benefits booked in the Net equity 12,503,100 3,630,262 Tax effect of other actuarial gains/(losses) on employee benefits recognized in equity (5,019,053) (1,085,045) Total actuarial gains/(losses) net of the tax effect (B) 7,4 8 4,04 7 2,545,217 Effective part of gains/(losses) on cash flow hedge (12,068,264) (42,493,663) Tax effect of other gains/(losses) 3,190,002 11,573,258 Total gains/(losses) on cash flow hedge net of tax (C) (*) (8,878,262) (30,920,405) Gains/(losses) on financial assets measured at Fair Value 9,007,576 - Tax effect gains/(losses) on financial assets measured at Fair Value (2,663,540) - Total gains/(losses) of financial assets measured at Fair Value net of tax (D) 6,344,036 - Total comprehensive result (A) + (B) + (C) + (D) 793,334,312 459,835,046 (*) The effects of these items will be reclassified to the income statement in subsequent years. 16 A2A Separate financial statements 2024 Annual financial statements 1.4 Cash-flow statement amounts in euro 12 31 2024 12 31 2023 Cash and cash equivalents at the beginning of the year 1,487,378,564 2,338,464,796 Operating activities Net Result 788,384,491 488,210,234 Net income taxes 163,743,033 87,353,525 Net financial interests (83,816,888) (48,448,085) Capital gains/expenses (13,975) (8,650,785) Tangible assets depreciation 106,606,137 87, 4 76, 5 5 4 Intangible assets amortization 57,1 7 3 , 2 2 1 45,954,585 Fixed assets write-downs/disposals 492,340 69,311 Shareholdings write-up/down 10,329 206,864 Net provisions 28,848,764 48,745,428 Net financial interests paid 105,229,115 22,346,788 Net taxes paid (146,095,574) (209,182,250) Dividends paid (300,132,326) (283,214,637) Change in trade receivables 225,199,003 1,470,038,404 Change in trade payable (562,992,164) (1,628,145,469) Change in inventories (10,247,243) 216,233,405 Other changes 83,390,094 (49,421,032) Cash flow from operating activities 455,778,357 239,572,840 Investment activities Investments in tangible assets (68,816,347) (72,169,720) Investments in intangible assets (72,771,363) (58,781,201) Investments in shareholdings and securities (*) (1,311,874,782) (60,449,276) Disposal of fixed assets and shareholdings 886,430 56,389,643 Issue of loans to other than financial institutions (109,000,000) (24,000,000) Cash receipt/repayment from loans to other than financial institutions 790,002,972 69,530,665 Cash flow from investment activities (771,573,090) (89,479,889) Free cash flow (315,794,733) 150,092,951 Financing activities Changes in financial assets Change in intercompany currency accounts (1,254,517,713) (310,805,455) Total changes in financial assets (*) (1,254,517,713) (310,805,455) Changes in financial liabilities Change in intercompany currency accounts (266,376,310) (77,151,826) Borrowings/bonds issued 1,810,000,000 800,000,000 Repayment of borrowings/bond (849,509,881) (1,379,049,398) Lease payments (20,399,783) (18,138,600) Other changes - (16,033,904) Total changes in financial liabilities (*) 673,714,026 (690,373,728) Capital instruments – perpetual hybrid bond Issue of perpetual hybrid bond 741,812,350 - Coupon paid on perpetual hybrid bond (9,426,209) - Capital instruments – perpetual hybrid bond 732,386,141 - Cash flow from financing activities 151,582,454 (1,001,179,183) Change in cash and cash equivalents (164,212,279) (851,086,232) Cash and cash equivalents at the end of the year 1,323,166,285 1,487,378,564 (*) Cleared of balances in return of shareholders’ equity and other balance sheet items. Annual financial statements Separate financial statements 2024 A2A 17 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 1.5 Statement of changes in equity Changes from January 1, 2023 to December 31, 2023 amounts in euro Share capital Note 12 Treasury shares Cash Flow Hedge Reserve Note 13 Reserve for equity instruments \- perpetual hybrid bonds Note 13 Reserves Note 13 Net result of the year Note 14 Total Equity Equity at December 31, 2022 1,629,110,744 - 27,134,786 - 1,401,213,849 545,581,220 3,603,040,599 Contribution from non-recurring transactions 8,994,789 8,994,789 Result allocation 545,581,220 (545,581,220) - Distribution of dividends (283,214,637) (283,214,637) IAS 19 reserve (*) 2,545,217 2,545,217 Cash flow hedge reserves (*) (30,920,405) (30,920,405) Other changes - Net result of the year (*) 488,210,234 488,210,234 Equity at December 31, 2023 1,629,110,744 - (3,785,619) - 1,675,120,438 488,210,234 3,788,655,797 (*) These form part of the statement of comprehensive income. Changes from January 1, 2024 to December 31, 2024 amounts in euro Share capital Note 12 Treasury shares Cash Flow Hedge Reserve Note 13 Reserve for equity instruments \- perpetual hybrid bonds Note 13 Reserves Note 13 Net result of the year Note 14 Total Equity Equity at December 31, 2023 1,629,110,744 - (3,785,619) - 1,675,120,438 488,210,234 3,788,655,797 Result allocation 488,210,234 (488,210,234) - Distribution of dividends (300,132,326) (300,132,326) IAS 19 reserve (*) 7,4 8 4,0 47 7,4 8 4 ,0 4 7 Cash flow hedge reserves (*) (8,878,262) (8,878,262) Financial assets measured at Fair Value (*) 6,344,036 6,344,036 Capital instruments - perpetual hybrid bond 741,812,350 741,812,350 Capital instruments - coupon paid on perpetual hybrid bond (9,426,209) (9,426,209) Other changes 2,262,291 2,262,291 Net result of the year (*) 788,384,491 788,384,491 Equity at December 31, 2024 1,629,110,744 - (12,663,881) 741,812,350 1,869,862,511 788,384,491 5,016,506,215 Availability of Equity Reserves D D A-B-C A: For share capital increase B: To cover losses C: For distribution to Shareholders - available for 1,623,054,791 (**) D: Reserves not avaliable (*) These form part of the statement of comprehensive income. (**) Of which subject to tax moderate suspension equal to 124,783,022 euro, and subject to tax suspension following the realignment of Legislative Decree 104/20 for 227,529,561 euro. 18 A2A Separate financial statements 2024 Annual financial statements 1.6 Balance sheet pursuant to Consob Resolution no. 17221 of March 12, 2010 Assets amounts in euro 12 31 2024 of which Related Parties (note 34) 12 31 2023 of which Related Parties (note 34) Non-current assets Tangible assets 872,997,315 29,972,788 895,732,259 32,995,630 Intangible assets 190,218,348 204,289,861 Shareholdings 5,511,097,534 5,511,097,534 4,202,373,558 4,202,373,558 Other non-current financial assets 401,643,203 365,009,059 574,944,016 549,607,930 Deferred tax assets 99,326,563 95,046,576 Other non-current assets 28,701,910 2 7,0 3 1 50,293,343 24,054,346 Total non-current assets 7,103,984,873 6,022,679,613 Current assets Inventories 183,295,985 173,048,742 Trade receivables 1,956,695,628 987,650,961 2,179,878,054 1,356,290,379 Other current assets 1,117,181,111 157,608,984 1,981,555,526 126,138,049 Current financial assets 4,229,639,783 4,201,803,096 3,478,748,427 3,454,198,026 Current tax assets 16,542,579 17,034,418 Cash and cash equivalents 1,323,166,285 1,487,378,564 Total current assets 8,826,521,371 9,317,643,731 Non-current assets held for sale - - Total assets 15,930,506,244 15,340,323,344 Annual financial statements Separate financial statements 2024 A2A 19 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Equity and liabilities amounts in euro 12 31 2024 of which Related Parties (note 34) 12 31 2023 of which Related Parties (note 34) Equity Share capital 1,629,110,744 1,629,110,744 (Treasury shares) - - Reserves 2,599,010,980 1,671,334,819 Net result of the year 788,384,491 488,210,234 Total equity 5,016,506,215 3,788,655,797 Liabilities Non-current liabilities Non-current financial liabilities 5,982,457,503 26,253,581 5,312,613,362 29,482,289 Employee benefits 109,634,645 123,148,493 Provisions for risks, charges and liabilities for landfills 183,612,424 8,218,636 170,854,446 3,259,747 Other non-current liabilities 21,995,257 14,157,804 Total non-current liabilities 6,297,699,829 5,620,774,105 Current liabilities Trade payables 2,415,495,893 313,093,195 2,978,488,057 448,830,491 Other current liabilities 908,989,830 14,279,712 1,719,337,012 41,105,442 Current financial liabilities 1,202,973,435 322,408,212 1,180,741,454 589,155,649 Tax liabilities 88,841,042 52,326,919 Total current liabilities 4,616,300,200 5,930,893,442 Total liabilities 10,914,000,029 11,551,667,547 Liabilities associated with non-current assets held for sale - - Total equity and liabilities 15,930,506,244 15,340,323,344 20 A2A Separate financial statements 2024 Annual financial statements 1.7 Income statement pursuant to Consob Resolution no. 17221 of March 12, 2010 amounts in euro 01 01 2024 12 31 2024 of which Related Parties (note 34) 01 01 2023 12 31 2023 of which Related Parties (note 34) Revenues Revenues from the sale of goods and services 8,700,014,382 4,988,816,350 11,045,993,962 6,149,719,877 Other operating income 52,802,126 5,725,889 1 6, 4 4 7,07 8 5,934,354 Total revenues 8,752,816,508 11,062,441,040 Operating expenses Expenses for raw materials and services 7,304,341,257 493,935,833 9,790,846,301 503,943,564 Other operating expenses 576,500,085 375,594,552 657,678,357 517,152,724 Total operating expenses 7,880,841,342 10,448,524,658 Labour costs 206,233,576 1,760,162 195,726,649 1,240,389 Gross operating income - EBITDA 665,741,590 418,189,733 Depreciation, amortization, provisions and write-downs 193,120,462 6,728,531 182,244,787 7,751,168 Net operating income - EBIT 472,621,128 235,944,946 Result from non-recurring transactions - 1,789,992 1,789,992 Financial balance Financial income 651,696,159 600,234,186 520,117,596 463,338,314 Financial expenses 172,189,763 11,906,806 182,478,065 10,392,082 Total financial balance 479,506,396 337,639,531 Result before taxes 952,127,524 575,374,469 Income taxes 163,743,033 87,353,525 Result after taxes from operating activities 788,384,491 488,020,944 Net result from discontinued operations - 189,290 Net result of the year 788,384,491 488,210,234 2 Notes Separate financial statements 2024 22 A2A Separate financial statements 2024 Notes 2.1 General information on A2A S.p.A. A2A S.p.A. is a company with legal personality organized under the laws of the Italian Republic which operates, also through its subsidiaries (“Group”), both in Italy and abroad. In particular, as the “Parent Company”, A2A S.p.A. is responsible for the guiding strategy, administration, planning and control, financial management and coordinating the activities of the A2A Group. Therefore, Group companies benefit from administrative, tax, legal, personnel management, procurement and communication services, so as to optimize the resources that are available within the Group and to use the existing know how in a cost-effective way. The A2A Group mainly operates in the following sectors: • production, sale and distribution of electricity even from renewable resources; • sale and distribution of gas; • production, distribution and sale of heat through district heating networks; • waste management (from collection and sweeping to disposal) and the construction and management of integrated waste disposal plants and systems, also making these available for other operators; • integrated water cycle management; • technical consultancy relating to energy efficiency certificates. The separate financial statements for A2A S.p.A. are presented in euro, which is also the functional currency in the economies in which the company operates. In particular, the following notes are prepared in thousands of euro. The separate financial statements of A2A S.p.A. at December 31, 2024, have been prepared on a going-concern basis and comprise the balance sheet, income statement, statement of comprehensive income, cash flow statement, statement of changes in equity and these notes. The separate financial statements of A2A S.p.A. at December 31, 2024 have been prepared: • in compliance with Legislative Decree 58/1998 (art. 154-ter) as amended and with the Issuers’ Regulations published by Consob; • in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standard Board (IASB) and approved by the European Union. IFRS means all the revised international accounting standards (IAS) and all the interpretations of the International Financial Reporting Interpretations Committee (IFRIC), formerly known as the Standing Interpretations Committee (SIC). In preparing the separate financial statements, the same standards used for the financial statements at December 31, 2023 were applied, other than the principles and interpretations described in detail in the paragraph below “Changes in accounting principles” adopted for the first time on January 1, 2024\. These explanatory notes include the supplemental information required by the Italian civil code, by Consob Resolutions no. 15519 and 15520 of July 27, 2006, and Consob communication no. 6064293 of July 28, 2006. In this file, use has been made of some Alternative Performance Measures (APM) that are different from the financial indicators expressly provided for by the IAS/IFRS international accounting standards adopted by the company; for details of these indicators, please see the specific paragraph Alternative Performance Measures (APM) in the Report on Operations. Notes Separate financial statements 2024 A2A 23 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors These separate financial statements for the year ended December 31, 2024, were approved on March 20, 2025, by the Board of Directors, which authorized its publication, and has been audited by EY S.p.A. in accordance with their appointment by the shareholders’ meeting of June 11, 2015, for the nine years from 2016 to 2024. 24 A2A Separate financial statements 2024 Notes 2.2 Financial statements For the balance sheet, the company A2A S.p.A. has adopted a format which separates current and non-current assets and liabilities, as required by par. 60 et seq. of IAS 1. The income statement is presented by nature, a format which is considered more representative than a presentation by function. The selected format is in agreement with the presentation used by the Group’s major competitors and in line with international practice. The specific line items “Result from non-recurring transactions” and “Result from disposal of other shareholdings” are in the format of the income statement in order to provide clear and immediate identification of the results arising from non-recurring transactions forming part of continuing operations, separating these from the results from discontinued operations/held for sale. In particular, it should be noted that the item “Result from non-recurring transactions” is intended to include the results from the sale of investments in subsidiaries and associates and other non-operating expenses/income. This item is presented between net operating income and the financial balance. In this way, net operating income is not affected by non-recurring operations, making it easier to measure the effective performance of the Group’s ordinary operating activities. The Cash Flow Statement is prepared using the indirect method, as permitted by ‘IAS 7’, and incorporates the informational amendments to ‘IAS 7’ effective from January 1, 2024, as detailed in the relevant section ‘Changes in International Accounting Standards’, and the ESMA (European Securities and Markets Authority) recommendations updated as of October 29, 2024. The Company classifies cash flows for dividends paid and interest paid/collected as cash flows from operating activities. The statement of changes in equity has been prepared in accordance with IAS 1. The accounting schedules included in the annual report are in the same format as those used in the separate financial statements at December 31, 2023. Notes Separate financial statements 2024 A2A 25 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 2.3 Basis of preparation The separate financial statements as at December 31, 2024, have been prepared on a historical cost basis, with the exception of those items which under IFRS must be or can be measured at fair value, as discussed in further detail in the accounting policies. The accounting standards, the accounting policies and the methods of measurement used in the preparation of the separate financial statements are consistent with those used to prepare the annual separate financial statements at December 31, 2023, except as specified below regarding newly enacted standards. The company has not adopted in advance any new principles, interpretations, or amendments that have been issued but are not yet in force. 26 A2A Separate financial statements 2024 Notes 2.4 Changes in international accounting standards Pursuant to IAS 8, the subsequent paragraph “Accounting standards, amendments and interpretations applicable by the company as of the current year” indicates and briefly illustrates the amendments in force as of January 1, 2024. The following paragraph, “Accounting standards, amendments and interpretations approved by the European Union” instead details the accounting standards and interpretations already issued, not yet approved by the European Union and therefore not applicable for the preparation of the financial statements at December 31, 2024, any impacts of which will then be transposed as of the financial statements of the following years. Accounting standards, amendments and interpretations applicable as of the current year From January 1, 2024, the following additions to specific paragraphs of the international accounting standards previously adopted in earlier financial years will be applicable to the company: • On January 23, July 15, 2020, and October 31, 2022, the International Accounting Standards Board (IASB) issued three additions to IAS 1 “Presentation of Financial Statements”: The classification of liabilities as either current or non-current, and non-current liabilities with covenants, aims to better define the concept of liabilities and their classification between short-term and medium- to long- term. The additions were approved on December 20, 2023. Specifically, emphasis is placed on the temporal concept of transferring money or other resources to the counterparty to settle the liability. The entity must have the right to defer the settlement of the liability for at least 12 months after the balance sheet date. The change includes: • the stipulation that the right to defer settlement must exist as of the date of the Financial Statements; • a clarification regarding the fact that the classification is not influenced by management’s intentions or expectations about the possibility of using the deferral right; • a clarification on how the financing conditions influence the classification; • a clarification on the requirements for classifying liabilities that an entity intends to or might settle through the issuance of its own equity instruments. Furthermore, the latest amendment specifies that only covenants, that an entity must meet by the reporting date, will affect the classification of a liability as current or non-current. The amendments had no impact on the financial report. • on September 22, 2022, the IASB issued a supplement to IFRS 16 “Liabilities in a sale and leaseback” clarifying how to account for a sale and leaseback transaction that provides for variable payments based on the performance or use of the asset subject to the transaction. The amendment aims to enhance the criteria for sale and leaseback transactions under IFRS 16, but it does not modify the accounting for leases unrelated to sale and leaseback transactions. The amendments had no impact on the financial report. • On May 25, 2023, the IASB issued a supplement to IAS 7 “Statement of Cash Flows” and IFRS 7 “Financial Instruments: Disclosures”. The amendments clarify the characteristics of supplier financing arrangements (e.g. reverse factoring instruments) and define the information to be provided on the impact of these arrangements on the company’s liabilities and cash flows (e.g. terms and conditions, book value and balance sheet item in which financial debts are recorded, with an indication of those for which the financial supplier has already settled the corresponding portion of trade debt, maturity bands of financial debts and comparable trade debts, but not included in arrangements). This financial report reflects the alterations to the disclosure mandated by the amendments. Notes Separate financial statements 2024 A2A 27 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Accounting standards, amendments and interpretations approved this year and applicable as of subsequent years • On August 15, 2023, the IASB issued a supplement to IAS 21 “The effects of changes in foreign exchange rates” to regulate the procedures to be followed in the event of currency non- convertibility. The amendments introduce requirements to determine when a currency is convertible into another currency and when it is not and require an entity to estimate the spot exchange rate when it determines that a currency is not convertible into another currency. These additions will be applicable to financial statements closed on or after January 1, 2025. No material impacts are expected for the company with reference to this amendment. Accounting standards, amendments and interpretations not yet approved by the European Union • On April 9, 2024, the IASB published IFRS 18, which establishes requirements for the presentation of information in the financial statements in order to improve the uniformity of the information provided and promote comparability between financial statements. The standard focuses in particular on the presentation of the income statement for which a predefined structure is provided divided into categories (operating, investing, financial, tax and discontinued operations) and as many subtotals. However, it also sets rules for the aggregation and disaggregation of information on the basis of their common characteristics in order to identify the information to be provided directly in the financial statements rather than in the notes. The standard will be applicable to financial statements closed on or after January 1, 2027. The company is currently assessing the impacts of these amendments. • On May 9, 2024, the IASB published the new IFRS 19 standard applicable for financial statements from January 1, 2027. The standard applies to non-publicly accountable subsidiaries belonging to a group that prepares consolidated financial statements according to IAS/IFRS and allows them to use IFRS accounting standards by adopting simplified financial reporting based on the provisions of the new standard instead of those of the other standards. The amendments will have no impact on the financial report. • In 2024, the International Accounting Standards Board (IASB) issued two amendments to IFRS 9 and IFRS 7, one concerning “Changes to the Classification and Measurement of Financial Instruments” and the other related to “Renewable Energy Contracts”. The effective date for both amendments is set for January 1, 2026. • “Changes to the Classification and Valuation of Financial Instruments”: Ž amendments to IFRS 9 clarify the circumstances under which a financial asset or liability is recognized and derecognized. According to the amendments, a company generally writes off its financial liability on the settlement date. Normally, this is the date when the payment is completed. The amendments also introduce an exception, permitting the company to write off its financial liability prior to the settlement date, which is the date when the payment is initiated and cannot be cancelled. The exception is available when the company uses an electronic payment system that satisfies all of the following criteria: • no practical way to retract, halt, or cancel the payment instruction; • no practical means to access the money needed for the settlement as a result of the payment instruction; • the settlement risk connected with the electronic payment system is insignificant. Ž The amendments also introduce an additional SPPI test (solely for payments of principal and interest) for financial assets with contractual terms that reference a potential event, including those related to ESG factors, that are not directly tied to changes in basic lending risks or costs. For instance, this applies when cash flows vary based on whether the borrower meets an ESG target specified in the loan contract. Under the former formulation, it was indeed unclear whether the contractual cash flows from certain financial assets with environmental, social, and governance (ESG) characteristics and similar contingent attributes qualified as “solely payments of principal and interest”, which is necessary for recognition at amortized cost. This could have involved measuring such activities at fair value through the income statement. Under the amendments, certain financial assets, 28 A2A Separate financial statements 2024 Notes including those possessing ESG-related attributes, may satisfy the SPPI criterion, provided that their cash flows don’t significantly differ from those of an identical financial asset without such characteristics. Ž The amendment to IFRS 7 mandates additional disclosure for financial assets and liabilities with contractual terms referencing a potential event, including those associated with ESG factors, as well as for equity instruments classified at fair value through other comprehensive income. • “Contracts relating to renewable energy sources”: Ž clarifies the requirements for applying the “own-use exemption”; Ž establishes the rules for the use of these contracts as hedging instruments in a hedge accounting relationship; Ž introduces a new set of information designed to enable investors to grasp the influence of these contracts on the company’s performance and its cash flows. The company is currently assessing the impacts of these amendments. • On July 18, 2024, the International Accounting Standards Board (IASB) issued the eleventh volume of annual improvements aimed at enhancing the consistency and comprehensibility of the standards. The effective date for the amendments is set for January 1, 2026. The main changes concerned IFRS 9 Financial Instruments: • the amendment specifies that when a lease is terminated, it falls under the jurisdiction of IFRS 9, replacing the typical application of IFRS 16. As a result, any disparity between the present value of the liability and the payment made must be recognized in the income statement; • the amendment also addresses a conflict between IFRS 9 and IFRS 15 regarding the initial measurement of trade receivables by specifying that trade receivables without a significant financial component must initially be recognized according to the provisions of IFRS 15. The company is currently assessing the impacts of these amendments. Notes Separate financial statements 2024 A2A 29 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 2.5 Accounting standards and policies Translation of foreign currency items The separate Financial Statements for A2A are presented in euro, which is also the functional currency in the economies in which the company operates. Transactions in other currencies are initially recognized at the exchange rates at the date of the transaction. Monetary assets and liabilities denominated in foreign currency are translated into euro at the exchange rates at the balance sheet date. Non-monetary items measured at historical cost in foreign currency are translated at the exchange rates at the date of the transaction. Non-monetary items measured at fair value are translated at the exchange rates at the date when the fair value was determined. Tangible assets Assets for business use are classified as tangible assets, while non-business assets are classified as investment property, if any. Tangible assets are measured at cost, including any additional charges directly attributable to bringing the asset into an operating condition (e.g. transport, customs duty, installation and testing costs, notary and land registry fees and any non-deductible VAT), increased when material and where there are obligations by the present value of the estimated cost of restoring the location from an environmental point of view or dismantling the asset. Borrowing costs, where directly attributable to the purchase or construction of an asset, are capitalized as part of the cost of the asset if the type of asset so warrants. If important components of tangible assets have different useful lives, they are accounted for separately using the “component approach”, assigning to each component its own useful life for the purpose of calculating depreciation (the component approach). Land, whether occupied by residential or industrial buildings or devoid of construction, is not depreciated as it has an unlimited useful life, except for land used in production activities that is subject to deterioration over time (e.g. landfills, quarries). Ordinary maintenance costs are fully expensed to the income statement in the year they are incurred. Costs for maintenance carried out at regular intervals are attributed to the assets to which they refer and are depreciated over the specific residual possibility of use of such. Tangible assets are stated net of accumulated depreciation and any write-downs. Depreciation is charged from the year in which the individual asset enters service on a straight-line basis over the estimated useful life of the asset for the business. The estimated realizable value which is deemed to be recoverable at the end of an asset’s useful life is not depreciated. The useful life of each asset is reviewed annually and any changes, if needed, are made with a view to showing the correct value of the asset. 30 A2A Separate financial statements 2024 Notes Landfills are depreciated on the basis of the percentage filled, which is calculated as the ratio between the volume occupied at the end of the period and the total volume authorized. The main depreciation rates used, which are based on technical and economic considerations, are as follows: • non-industrial buildings ...................................................................................................................................1.67% - 34.29% • industrial buildings ............................................................................................................................................ 0.28% - 24.30% • production plants............................................................................................................................................... 0.27% - 25.00% • distribution networks ......................................................................................................................................................... 10.00% • miscellaneous equipment ............................................................................................................................. 9.99% - 33.33% • furniture and fittings ...........................................................................................................................................6.03% - 14.82% • electrical and electronic office machines - data processing systems ................................10.00% - 25.00% • means of transport .............................................................................................................................................................. 10.00% • other miscellaneous .........................................................................................................................................8.28% - 20.00% • fiber optic network .............................................................................................................................................4.99% - 10.08% • improvements to third-party assets - buildings ................................................................................5.24% - 46.93% Tangible assets are subjected to impairment testing if there is any indication that an asset may be impaired in accordance with the paragraph below “Impairment of assets”; write-downs may be reversed in subsequent periods if the reasons for which they were recognized no longer apply. When an asset is disposed of or if future economic benefits are no longer expected from using an asset, it is removed from the balance sheet and any gain or loss (being the difference between the disposal proceeds and the carrying amount) is recognized in the income statement in the year of the derecognition. Leasing Assets for rights of use are recognized on the start date of the lease, i.e. the date on which the underlying asset is available for use. Rights to use assets are measured at cost, net of accumulated depreciation and impairment losses, and adjusted for any restatement of lease liabilities. The cost of assets for rights of use includes the amount of lease liabilities recognized and lease payments made on or before the commencement of the lease. Assets for right of use are depreciated on a straight-line basis from the effective date to the end of the useful life of the asset consisting of the right of use or at the end of the lease term, whichever is earlier. If the lease transfers ownership of the underlying asset to the lessee at the end of the term of the contract or if the cost of the asset consisting of the right of use reflects the fact that the lessee will exercise the purchase option, the asset consisting of the right of use is depreciated from the effective date until the end of the useful life of the underlying asset. Lease liabilities are recognized at the present value of lease payments not yet paid at the reporting date. Lease payments also include the exercise price of a purchase option if it is reasonably certain that the option will be exercised. Intangible assets Intangible assets are identifiable non-monetary assets without physical substance which are controlled by the enterprise and able to produce future economic benefits, and include goodwill when acquired for consideration. The fact of being identifiable distinguishes an intangible asset that has been acquired from goodwill; this requirement is normally met when: (i) the intangible asset is attributable to a legal or contractual right, or (ii) the asset is separable, in other words it can be sold, transferred, rented or exchanged individually or as an integral part of other assets. Control by the enterprise consists of the right to enjoy the future economic benefits flowing from the asset and to restrict the access of others to those benefits. Intangible assets are stated at purchase or production cost, including ancillary charges, determined Notes Separate financial statements 2024 A2A 31 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors in the same way as for tangible assets. Intangible fixed assets produced internally are not capitalized but recognized in the income statement in the year in which the costs are incurred. Intangible assets with a definite useful life are reported in the financial statements net of the related accumulated amortization and impairments in the same way as for tangible assets. Changes in the expected useful life or in the ways in which the future economic benefits of an intangible asset are achieved by the Company are accounted for by suitably adjusting the period or method of amortization, treating them as changes in accounting estimates. The amortization of intangible fixed assets with a definite useful life is charged to income statement in the cost category that reflects the function of the intangible asset concerned. Intangible assets are subjected to impairment testing if there are specific indications that they may be impaired, in accordance with the paragraph below “Impairment of assets”; impairment losses may be reversed in subsequent periods if the reasons for which they were recognized no longer apply. Intangible assets with an indefinite useful life and those that are not yet available for use are subjected to impairment testing on an annual basis, whether or not there are any specific indications that they may be impaired, in accordance with the paragraph below “Impairment of assets”. Impairment losses recognized for goodwill are not reversed. Gains or losses on the disposal of an intangible asset are calculated as the difference between the disposal proceeds and the carrying amount of the asset and recognized in the Income Statement at the time of the disposal. The following amortization rates are applied to intangible assets with a definite useful life: • industrial patents and intellectual property rights..........................................................................20.00% - 33.34% • concessions, licenses, trademarks and similar rights ...................................................................10.00% - 33.34% • other tangible assets ......................................................................................................................................... 2.13% - 33.33% Impairment/Reversal of tangible assets, intangible assets and equity investments Tangible assets, intangible assets and investments are subjected to impairment testing if there is any specific indication that there may be an impairment loss. Goodwill, other intangible assets with an indefinite useful life and assets not available for use are tested for impairment at least annually or more frequently if there is any specific indication that they may be impaired. Impairment testing consists of comparing the carrying amount of an asset or impairment with an estimate of the related recoverable amount. The recoverable amount of an asset or investment is the higher of its fair value less costs to sell and its value in use. To determine the value in use of an asset or investment, the entity calculates the present value of the estimated future cash flows on the basis of business plans prepared by management, before tax, applying a pre-tax discount rate which reflects current market assessments of the time value of money and the risks specific to the asset or investment. If the recoverable amount of an asset or investment is lower than its carrying amount, a loss is recognized in the Income Statement. If a loss recognized for an asset other than goodwill no longer exists or is reduced, the carrying amount of the asset or cash-generating unit is increased to the new estimate of recoverable value, which may not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset. Reversals of impairment losses are immediately recognized in the income statement. When the recoverable amount of the individual asset cannot be estimated, it is based on the cash generating unit (CGU) or group of CGUs that the asset belongs to and/or to which it may be reasonably allocated. CGUs are identified on the basis of the company’s organizational and business structure as homogeneous aggregations that generate independent cash inflows deriving from the continuous use of the assets allocated to them. 32 A2A Separate financial statements 2024 Notes Environmental certificates: emission quotas and White Certificates Different accounting policies are applied to quotas or certificates held for own use in the “Industrial Portfolio” and those held for trading purposes in the “Trading Portfolio”. Surplus quotas or certificates held for own use in the “Industrial Portfolio” which are in excess of the Group’s requirements in relation to the obligations accruing at year end are recognized as other intangible assets at the actual cost incurred. Quotas or certificates assigned free of charge are recognized at a zero carrying amount. Given that they are assets for instant use, they are not amortized but subjected to impairment testing. The recoverable amount is the higher of value in use and market value. If, on the other hand, there is a deficit because the requirement exceeds the quotas or certificates in portfolio at the balance sheet date, a provision is recognized for the amount needed to meet the residual obligation, estimated on the basis of any purchase contracts, spot or forward, already signed at the balance sheet date; otherwise on the basis of market prices. Quotas or certificates held for trading in the “Trading Portfolio” are recognized in inventories and measured at the lower of purchase cost and estimated realizable value based on market trends. Quotas or certificates assigned free of charge are recognized at a zero carrying amount. Market value is established on the basis of any sales contracts, spot or forward, already signed at the balance sheet date, otherwise, on the basis of market prices. Shareholdings in subsidiaries, associates and joint ventures Subsidiaries are companies in which the parent company “is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee”, as defined by IFRS 10. Control is generally assumed to exist when a company holds either directly or indirectly more than half of the exercisable voting rights at an ordinary shareholders’ meeting, also considering potential voting rights, meaning voting rights deriving from convertible financial instruments. Associates are companies in which the parent has a significant influence over strategic decisions, despite not having control, also considering potential voting rights, meaning voting rights deriving from convertible financial instruments; significant influence is assumed to exist when A2A S.p.A. holds, either directly or indirectly, more than 20% of voting rights exercisable at an ordinary shareholders’ meeting. In order to determine the existence of significant influence, management’s judgement is required to evaluate all facts and circumstances. The company reviews the existence of significant influence when facts and circumstances indicate that there has been a change in one or more of the elements considered for the test of the existence of significant influence. A joint venture is a contractual agreement whereby two or more parties undertake an income generating activity subject to joint control. These investments are recorded at cost. The Company performs annual impairment tests on investments with quantitative and qualitative impairment loss indicators. Long term construction contracts in progress Construction contracts with durations exceeding one year in progress are valued in accordance with IFRS 15. In particular, over-the-time revenues are recognized if it can be demonstrated that: a) the customer simultaneously receives and consumes the benefits of the contract in force at the same time as the service is provided; b) the service provided improves. Construction contracts currently in progress are measured on the basis of the contractual fees that have accrued with reasonable certainty on the basis of the stage of completion, using the “cost to cost” method, so as to allocate the revenues and net result of the contract to the individual periods to which they belong in proportion to the progress being made on the project. Any difference, positive Notes Separate financial statements 2024 A2A 33 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors or negative, between the value of the contracts and advances received is recognized as an asset or a liability respectively. In addition to the contractual fees, contract revenues include variants, price revisions and incentive awards to the extent that it is probable that they represent actual revenues that can be reliably determined. Ascertained losses are recognized independently of the stage of completion of contracts. Inventories Inventories of materials and fuel are measured at the lower of weighted average cost and market value at the balance sheet date. Weighted average cost is determined for the period of reference for each inventory code. Weighted average cost includes any additional costs (such as sea freight, customers charges, insurance and lay or demurrage days in the purchase of fuel). Inventories are constantly monitored and, where necessary, obsolete stocks are written down with a charge to the Income Statement. Inventories of gas held for trading purposes, in storage at separate facilities as opposed to gas used for industrial purposes, are measured at fair value at the reporting date as required by IAS 2 par. 3 letter b. Power Purchase Agreement Power Purchase Agreements (PPA) that provide for the physical delivery of energy and that do not meet the requirements of IFRS 10 for the existence of control or joint control over a company or asset and IFRS 16 for the recognition of a lease, but that meet the definition of a derivative in IFRS 9, are accounted for under the rules of the own use exemption when the relevant conditions are met. Financial instruments Financial instruments include shareholdings (excluding shareholdings in subsidiaries, joint ventures and associates) held for trading (so-called trading shareholdings) or available for sale, non-current receivables and loans and other non-current financial assets, trade and other receivables deriving from company operations and other current financial assets such as cash and cash equivalents. The latter consist of bank and postal deposits, readily negotiable securities used as temporary investments of surplus cash and financial receivables due within three months. Financial instruments also include financial payables (bank loans and bonds), trade payables, other payables and other financial liabilities and derivatives. Financial assets and liabilities are recognized at the time that the contractual rights and obligations forming part of the instrument arise. Financial assets and liabilities are accounted for in accordance with IFRS 9 “Financial Instruments”. Financial assets Initial recognition Financial assets are classified into two categories alone: “at fair value” or “at amortized cost”. Classification within the two categories is carried out on the basis of an entity’s business model and the contractual cash flow characteristics of the financial asset. A financial asset is measured at amortized cost if both of the following requirements are met: the objective of the entity’s business model is to hold assets to collect contractual cash flows (and therefore in substance not to earn trading profits) and the characteristics of the cash flows of the asset are solely payments of principal and interest. A financial asset is measured at fair value if it is not measured at amortized cost. Debt instruments may be recorded at fair value through profit or loss upon initial recognition if this results in the elimination or significant reduction of an accounting mismatch. All equity instruments - both listed and unlisted - are measured at fair value. 34 A2A Separate financial statements 2024 Notes The entity does not refer to the option of presenting changes in the fair value of equity instruments that are not held for trading in equity; that option is not permitted for equity instruments that are held for trading. This designation is permitted on initial recognition, may be adopted for each individual instrument and is irrevocable. Subsequent valuation Measurement subsequent to initial recognition depends on which of the following categories the financial instrument falls into: • Financial assets at amortized cost (debt instruments); • Financial assets at fair value in the Income Statement with reclassification of cumulative gains and losses (debt instruments); • Financial assets at fair value in the Income Statement without reversal of cumulative gains and losses at the time of derecognition (equity instruments); • Financial assets at fair value in the Income Statement. Financial assets at amortized cost Financial assets at amortized cost are valued using the effective interest method and are subject to impairment. Gains and losses are recognized in the income statement when the asset is derecognized, modified or revalued. Investments in equity instruments Gains and losses on these financial assets are never reclassified to the income statement. Dividends are recognized as other income in the Income statement when the right to payment has been approved, except when the company benefits from such income as a recovery of part of the cost of the financial asset, in which case such profits are recognized in OCI. Equity instruments recognized at fair value through OCI are not subject to impairment testing. Financial assets measured at fair value through the income statement This category includes assets held for trading, assets designated at the time of initial recognition as financial assets at fair value with changes recognized in the Income Statement, or financial assets that must be measured at fair value. Assets held for trading are all those assets acquired for sale or repurchase in the short term. Derivatives, including those separated, are classified as financial instruments held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not represented solely by principal and interest payments are classified and measured at fair value in the Income Statement, regardless of the business model. Financial instruments at fair value with changes recognized in the Income Statement are recognized in the statement of financial position at fair value and net changes in fair value are recognized in profit/(loss) for the year. Dividends on listed equity investments are also recognized as other income in the statement of profit/(loss) for the year when the right to payment is established. The embedded derivative contained in a non-derivative hybrid contract, in a financial liability or in a principal non-financial contract, is separated from the principal contract and accounted for as a separate derivative, if: its economic characteristics and the risks associated with it are not closely correlated with those of the principal contract; a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and the hybrid contract is not measured at fair value in the Income Statement. Embedded derivatives are measured at fair value, with changes in fair value recognized in the Income Statement. A restatement occurs only when there is a change in the terms of the contract that significantly changes the cash flows otherwise expected or a reclassification of a financial asset to a category other than fair value in the Income Statement. An embedded derivative included in a hybrid contract that contains a financial asset is not separated from the host contract. The financial asset together with the embedded derivative is classified entirely as a financial asset at fair value in the Income Statement. Notes Separate financial statements 2024 A2A 35 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Derecognition A financial asset is derecognized when: • the rights to receive cash flows from the asset no longer apply; • the company has transferred to a third party the right to receive cash flows from the asset or has assumed a contractual obligation to transfer them. In substance, the transfer is completed when: the company has transferred all the risks and rewards of ownership of the asset or has transferred control of the asset while maintaining the related risks and rewards. In cases where the company has transferred the rights to receive cash flows from an asset or signed an agreement under which it retains the contractual rights to receive the cash flows from the financial asset but assumes a contractual obligation to pay the cash flows to one or more beneficiaries (pass- through), it assesses whether and to what extent it has retained the risks and rewards of ownership. In the cases in which it has neither transferred nor retained substantially all of the risks and rewards or has not lost control of the asset, it continues to be recognized in the financial statements of the company to the extent of its continuing involvement in the asset. In this case, the company also recognizes an associated liability. The transferred asset and the associated liability are valued to reflect the rights and obligations that remain with the company. When the entity’s continuing involvement is a guarantee of the transferred asset, involvement is measured on the basis of the lower of the amount of the asset and the maximum amount of consideration received that the entity might have to repay. Financial liabilities Financial liabilities are classified, at the time of initial recognition, at fair value in the Income Statement, as mortgages and loans or as derivatives designated as hedges. Directly attributable transaction costs are added to the valuation. The company’s financial liabilities include trade payables and other payables, mortgages and loans, including current account overdrafts and derivative financial instruments. The subsequent evaluation depends on the classification of the main instrument: • financial liabilities at fair value in the Income Statement, typically of a trading nature (settlement and transfer in the short term). This category includes financial derivatives held for trading (speculative); • loans and receivables: valued at amortized cost using the effective interest method. Gains and losses are recognized in the Income Statement when the liability is settled, as well as through amortization. A financial liability is derecognized when the obligation underlying the liability is settled or cancelled. Derivative financial instruments and hedge accounting These are initially recognized at fair value on the date the contract is signed and the subsequent measurement is also at fair value. To classify a derivative as a hedge, the company formally designates and documents the hedging relationship, its risk management objectives and the strategy pursued. From January 1, 2018, the following must be identified: a) the hedging instrument b) the nature of the risk being hedged c) the way in which the company will assess the effectiveness of the hedge. The hedging relationship is effective if: • there is an economic relationship between the hedged item and the hedging instrument; • the effect of the credit risk does not prevail over the changes in value resulting from the aforementioned economic relationship; • the hedging ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the company actually hedges and the quantity of the hedging instrument that the company actually uses to hedge this quantity of hedged item. 36 A2A Separate financial statements 2024 Notes Transactions that meet the above criteria are accounted for as follows: Fair value hedging If a derivative financial instrument is designated as a hedge against exposure to changes in the fair value of an asset or liability attributable to a specific risk, the gain or loss resulting from subsequent changes in fair value of the hedging instrument is recognized in the Income Statement. The profit or loss deriving from the adjustment to fair value of the item hedged, for the part attributable to the hedged risk, changes the book value of this item and is recognized in the Income Statement. Cash flow hedge - If a derivative financial instrument is designated to hedge the exposure to the variability of the cash flows of an asset or a liability recognized in the Financial Statements or of a highly probable transaction, the effective portion of the resulting profits or losses deriving from the fair value adjustment of the derivative instrument is recognized in a specific equity reserve. The cumulative profit or loss is reversed from the equity reserve and recorded in the Income Statement in the same years in which the effects of the hedged transaction are recognized in the Income Statement. The gain or loss associated with that part of the ineffective hedge is recognized in the Income Statement immediately. If the hedged transaction is no longer considered probable, the unrealized gains or losses recognized in the equity reserve are immediately recognized in the Income Statement. Cash flow hedges The portion of gain or loss on the hedged instrument relating to the effective portion of the hedge is recognized in other comprehensive income in the cash flow hedge reserve, while the ineffective portion is recognized directly in the Income Statement. The cash flow hedge reserve is adjusted to the lower of the cumulative gain or loss on the hedging instrument and the cumulative change in the fair value of the hedged item. Amounts accumulated under other components of the comprehensive income statement are recorded, depending on the nature of the underlying hedged transaction. If the hedged transaction subsequently results in the recognition of a non-financial component, the accumulated amount in equity is removed from the separate component of equity and included in the cost or other carrying amount of the asset or liability hedged. This is not considered a reclassification of the items recognized in OCI for the period. This also applies in the case of a hedged forecast transaction of a non-financial asset or a non-financial liability that subsequently becomes an irrevocable commitment to which fair value hedge accounting is applied. For any other cash flow hedge, the amount accumulated in OCI is reclassified in the Income Statement as a reclassification adjustment in the same period or periods during which the hedged cash flows impact profit or loss. If the cash flow hedge accounting is discontinued, the accumulated amount in OCI must remain so if the hedged future cash flows are expected to occur. Otherwise, the amount shall be immediately reclassified to profit or loss for the period as a reclassification adjustment. After suspension, once the hedged cash flow occurs, any accumulated amount remaining in OCI must be accounted for depending on the nature of the underlying transaction as described above. Non-current assets held for sale, disposal groups and discontinued operations – IFRS 5 Non-current assets held for sale, disposal groups and discontinued operations whose carrying amount will be recovered principally through sale rather than continuous use are measured at the lower of their carrying amount and fair value less costs to sell. A disposal group is a group of assets to be disposed of together as a group in a single transaction together with the liabilities directly associated with those assets that will be transferred in that transaction. Discontinued operations on the other hand consist of a significant component of the Group such as a separate major line of business or a geographical area of operations or a subsidiary acquired exclusively with a view to resale. In accordance with IFRSs, the figures for non-current assets held for sale, disposal groups and discontinued operations are shown on two specific lines in the balance sheet: non-current assets held for sale and liabilities directly associated with non-current assets held for sale. Non-current assets held for sale are not depreciated or amortized and are measured at the lower of Notes Separate financial statements 2024 A2A 37 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors carrying amount and fair value less costs to sell; any difference between carrying amount and fair value less costs to sell is recognized in the income statement as a write-down. The net economic results arising from discontinued operations, and only discontinued operations, pending the disposal process, any gains or losses on disposal and the corresponding comparative figures for the previous year or period are recognized in a specific line of the Income Statement: “Net result from discontinued operations”. On the other hand any gains or losses recognized as the result of measuring non-current assets (or disposal groups), classified as held for sale within the meaning of IFRS 5, at fair value less costs to sell are presented in a specific line item of the income statement “Result from non-recurring transactions”, as discussed further in the previous section “Format of financial statements”. Employee benefits The employees’ leaving entitlement (TFR) and pension provisions are determined using actuarial methods; the rights accrued by employees during the year are recognized in the Income Statement as “labor costs”, whereas the figurative financial cost that the company would have to bear if it were to ask the market for a loan of the same amount as the TFR is recognized as part of the “financial balance”. Actuarial gains and losses arising from changes in actuarial assumptions are recognized in income statement taking into account the residual average working life of the employees. Following the introduction of Finance Law no. 296 of December 27, 2006, only the portion of accrued employees’ leaving entitlement that remained in the company has been measured in accordance with IAS 19, as amounts are now paid over to a separate entity as they accrue (either to a supplementary pension scheme or to funds held by INPS). As a result of these payments the company no longer has any obligations in connection with the services employees may render in the future. Guaranteed employee benefits paid on or after the termination of employment through defined benefit plans (energy discount, health care or other benefits) or long-term benefits (loyalty bonuses) are recognized in the period when the right vests. The liability for defined benefit plans, net of any plan assets, is determined by independent actuaries on the basis of actuarial assumptions and recognized on an accrual basis in line with the work performed to obtain the benefits. Gains and losses arising from actuarial calculations are recognized in a specific equity reserve. Provisions for risks, charges and liabilities for landfills Provisions for risks and charges regard costs of a determinate nature and of certain or probable existence which at year-end are uncertain in terms of timing or amount. Provisions are recognized when there is a legal or constructive present obligation arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits, and it is possible to make a reasonable estimate of the obligation. Provisions are recognized at the best estimate of the amount that the company would have to pay to settle the liability or to transfer it to third parties at the balance sheet date. If the effect of discounting is significant, provisions are calculated by discounting expected future cash flows at a pre-tax discount rate that reflects the current market assessment of the time value of money. If discounting is used the increase in the provision due to the passage of time is recognized as financial expense. If the liability relates to tangible assets (such as the dismantling and reclamation of industrial sites), the initial provision is recognized as a counter-entry to the assets to which it refers; expense is then charged to income statement as the asset in question is depreciated. Treasury shares Treasury shares are accounted for as a deduction from equity. In particular, treasury shares are recognized as a negative equity reserve. Grants Grants, both from public entities and from third party private entities, are measured at fair value when there is the reasonable certainty that they will be received and that the Group will be able to comply with the terms and conditions for obtaining them. 38 A2A Separate financial statements 2024 Notes Grants received to provide support for the cost of specific assets are recognized as a direct deduction from the assets concerned and credited to the income statement over the life of the depreciable asset to which they refer. Revenue grants (given to provide the company with immediate financial support or as compensation for expenses or losses incurred in a previous accounting period) are recognized in their entirety in the income statement as soon as the conditions for recognizing the grants are met. Revenues and costs The recognition of revenues is based on the following five steps: (i) identification of the contract with the customer; (ii) identification of the performance obligations, represented by the contractual promises to transfer goods and/or services to a customer; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations identified on the basis of the stand-alone sale price of each good or service; (v) recognition of the revenue when the relative performance obligation is satisfied, i.e. when the promised good or service is transferred to the customer; the transfer is considered completed when the customer obtains control of the good or service, which can occur continuously over time diluted and extended or at a point in time. Revenues are stated net of returns, discounts, allowances and rebates, as well as directly related taxes. Expenses relate to goods or services sold or consumed during the year or as a result of systematic allocation; if no future use is envisaged they are recognized directly in the income statement. Result from non-recurring transactions The item “Result from non-recurring transactions” is intended to include the results from the sale of investments in subsidiaries and associates and other non-operating expenses/income. Financial income and expenses Financial income is recognized when interest income arises using the effective interest method, i.e. at the rate that exactly discounts expected future cash flows over the expected life of the financial instrument. Financial expense is recognized in the Income Statement on an accrual basis and are recorded in the amount of effective interest. Dividends Dividend income is recognized when it is established that the shareholders have a right to receive payment, and is recognized as financial income in the Income Statement. Income taxes Current taxes Current income taxes are based on an estimate of taxable income in compliance with tax regulations in force or substantially approved at the balance sheet date, bearing in mind any exemptions or tax credits due. Account is also taken of the fact that the Group now files for tax on a consolidated basis. Deferred tax assets and liabilities Deferred tax assets and liabilities are calculated on the temporary differences between the carrying amount of assets and liabilities in the balance sheet and their tax bases, with the exception of goodwill which is not deductible for tax purposes and any differences resulting from investments in subsidiaries which are not expected to reverse in the foreseeable future. The tax rates used are those expected to apply to the period when the temporary differences reverse. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the tax benefit will be realized. The measurement of deferred tax assets takes account of the period for which business plans are available. When transactions are recognized directly in equity, any related current or deferred tax effects are Notes Separate financial statements 2024 A2A 39 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors also recognized directly in equity. Deferred taxes on the undistributed profits of Group companies are only provided for if there is the real intention to distribute such profits and, in any case, if the taxation is not offset as the result of filing a Group tax return. Deferred tax assets and liabilities are classified as non-current assets and liabilities. Taxes are only offset when they are levied by the same tax authority, when there is the legal right of set-off and when settlement of the net balance is expected. Use of estimates Preparing the financial statements and notes requires the use of estimates and assumptions in determining certain assets and liabilities and measuring contingent assets and liabilities. The actual results after the event could differ from such estimates. Estimates have been used in assessing the recoverability of assets, to determine certain sales revenues, in provisions for risks and charges, in provisions for receivables and other write-downs, amortization and depreciation, the valuation of derivatives, employee benefits and taxes. The underlying estimates and assumptions are regularly reviewed and the effect of any change is immediately recognized in the income statement. With reference to climate change risks, the company believes that they are an implicit element in the application of the methodologies and models used to make estimates, evaluations and measurements of certain items in the financial statements. Management believes that the main areas of the financial statements at December 31, 2024, the valuation of which is subject to the use of estimates and judgement by management, also with reference to climate change risks, are those subject to impairment tests (tangible and intangible assets, including goodwill) and the provisions for risks, with specific reference to decommissioning provisions, and contingent liabilities. For further details, reference is made to the specific section “Climate change” in the Report on operations. The following are the key assumptions made by management as part of the process of making these accounting estimates. The inherently critical element of such estimates comes from using assumptions or professional opinions on matters that are by their very nature uncertain. Changes in the conditions underlying the assumptions and opinions used could have a material impact on subsequent results. Impairment Test The carrying amount of non-current assets (including goodwill and other intangible assets) is reviewed periodically and whenever circumstances or events require a more frequent assessment. If it is considered that the book value of a group of fixed assets or an equity investment has had an impairment loss, it is subject to the application of professional judgement by management and is based on assumptions that include: the identification of the Cash Generating Units, the estimate of the future operating cash flows associated with these CGUs during the reference period of the 2024- 2035 business plan, the estimate of the cash flows subsequent to this time horizon, the cash flow deriving from the disposal at the end of useful life of the assets, discount rates used (“Wacc”). These assumptions are complex due to their nature and imply recourse to the opinion of the directors, who are also sensitive to future trends in energy markets, macroeconomic scenarios, and the resolutions of ARERA (Regulatory Authority for Energy Networks and Environment). For the purpose of preparing the impairment test, the company avails itself of the support of an independent expert, external to the A2A Group. In the hypothesis in which the recoverable value is lower than the carrying amount, the latter is written down to the extent applicable. Management is of the opinion that the estimates of such recoverable amounts are reasonable, albeit subject to changes in the factors underlying the estimates on which these recoverable amounts have been calculated could produce different measurements. For further details on the way in which impairment testing was carried out and the results of such testing, reference is made to the specific paragraph. 40 A2A Separate financial statements 2024 Notes Revenue recognition Revenues for the year include income from the sale of electricity and gas, including through sales on the IPEX markets, from the sale of environmental certificates and from the provision of administrative, fiscal, legal, management and technical services, as well as incentives on net production from renewable sources and rental income. It should be noted that the processes and methods for evaluating and determining these types of revenue do not require the use of complex assumptions. Provisions for risks and charges In certain circumstances it is not easy to identify whether a legal or constructive present obligation exists. The directors assess these situations case by case, together with an estimate of the economic resources required to settle the obligation. Estimating such provisions is the result of a complex process that involves subjective judgements on the part of company management. When the directors are of the opinion that it is only possible that a liability could arise, the risks are disclosed in the section on commitments and contingent liabilities without making any provision. Decommissioning provisions Decommissioning provisions include charges for costs of dismantling and recovery of production sites related to hydroelectric plants. Bad debts provision The entry into force of IFRS 9 on January 1, 2018 has led to a change in the recognition of credit losses for the company. The approach adopted is a forward-looking one, focusing on the probability of future losses on receivables, even in the absence of events that would suggest the need to write- down a credit position (Expected Losses). The company applies the IFRS 9 approach for assessing the provision for credit risks, adopting different criteria depending on the features of the receivables being analyzed. In particular, receivables that are individually significant are expected to undergo a specific analysis to assess their recoverability. Conversely, the write-down of receivables not under specific assessment is determined by applying the business’s specific unpaid ratio. Amortization Depreciation and amortization charges are a significant cost for the company. Non-current assets are depreciated or amortized on a straight-line basis over the useful lives of the assets. The useful lives of the company’s non-current assets are established by the directors, with the assistance of expert appraisers, when they are purchased. The company periodically reviews technological and sector changes, dismantling/closure charges and the recovery amount of assets to update their residual useful lives. This periodic update could lead to a change in the period of depreciation or amortization and hence also in the depreciation or amortization charge in future years. Measurement of derivative instruments The derivatives used are measured at fair value based on the forward market curve at the balance sheet date, if the underlying of the derivative is traded on markets that provide official, liquid forward prices. If the market does not provide forward prices, forecast price curves are used based on simulation models developed by Group companies internally. However, the actual results of derivatives could differ from the measurements made. Serious turbulence on markets for the energy commodities traded by the company, as well fluctuations in exchange and interest rates, could lead to greater volatility in cash flows and in expected results. Employee benefits The calculations of expenses and the related liabilities, estimated by independent experts, are based on actuarial assumptions. The full effects of any changes in these actuarial assumptions are recognized in a specific equity reserve. Notes Separate financial statements 2024 A2A 41 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Business combinations Accounting for business combinations entails allocating the difference between purchase cost and net carrying amount to the assets and liabilities of the acquired business. For the majority of assets and liabilities this difference is allocated by recognizing the assets and liabilities at fair value. If positive, the unallocated portion is recognized as goodwill. If negative, it is recognized in the income statement. A2A S.p.A. bases its allocations on available information and, for the more significant business combinations, on external appraisals. Current taxes and future recovery of deferred tax assets The uncertainties that exist regarding the way of applying certain tax regulations have led the company to taking an interpretative stance when providing for current taxes in the financial statements; such interpretations could be overturned by official clarifications on the part of the tax authorities. Deferred tax assets are accounted for on the basis of the taxable profit expected to be available in future years. Assessing the expected taxable profit for the purpose of accounting for deferred taxation depends on factors that can vary over time, and may lead to significant effects on the measurement of deferred tax assets. 42 A2A Separate financial statements 2024 Notes 2.6 Notes to the balance sheet Assets Non-current assets 1) Tangible assets thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 Capex Other changes Disposals net of prov. Amort. Total Changes Land 26,745 52 - (24) - 28 26,773 Buildings 143,403 2,371 9,416 - (8,071) 3,716 147,119 Plant and machinery 5 3 7, 5 5 9 3,686 9,682 - (76,369) (63,001) 474,558 Industrial and commercial equipment 4,687 480 1 - (874) (393) 4,294 Other assets 19,479 4,012 (27) - (4,150) (165) 19,314 Construction in progress and advances 105,256 5 7,4 43 (21,125) - - 36,318 141,574 Leasehold improvements 538 772 1,645 - (538) 1,879 2,417 Assets for rights of use 58,065 - 15,487 - (16,604) (1,117) 56,948 Total tangible assets 895,732 68,816 15,079 (24) (106,606) (22,735) 872,997 Historical Cost 2,979,183 68,816 10,662 (92) - 79,386 3,058,569 Accumulated depreciation (1,731,168) - 4,417 68 (106,606) (102,121) (1,833,289) Write-downs (352,283) - - - - - (352,283) At December 31, 2024, “Tangible assets” amounted to 872,997 thousand euro (895,732 thousand euro in the previous year) and show a decrease of 22,735 thousand euro resulting from the following transactions: • amortization for the period for 106,606 thousand euro; • capex for 68,816 thousand euro; • additional positive variations amounting to 15,079 thousand euro primarily arose from an increase of 15,487 thousand euro following the application of the IFRS16 accounting standard, offset by reductions of 177 thousand euro due to the establishment of the decommissioning provision, primarily concerning the Valtellina area; reductions of 140 thousand euro for reclassification from tangible to intangible assets; and 91 thousand euro for reclassification under other balance sheet items; • disposal of assets, net of accumulated depreciation, for 24 thousand euro; Capex during the period refer to: • “Land” for 52 thousand euro; • “Buildings” for a total amount of 2,371 thousand euro. In detail, they refer to: 1,330 thousand euro to investments in the headquarters at Via Lamarmora in Brescia, Codignole, and Vobarno; 371 thousand euro for various projects on properties in Via della Signora, Piazza Trento, Caracciolo, Piazza Po, Canavese, and the Olgettina Department in Milan; 272 thousand euro for other property projects; 249 thousand euro for various projects on the Somplago power plant structure; and 149 thousand euro for various projects on the Grosio property; • “Plant and machinery” for 3,686 thousand euro. Notes Separate financial statements 2024 A2A 43 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors In particular, they refer to interventions for 1,987 thousand euro on the power plants of the Calabria Unit; for 931 thousand euro on the power plants of the Valtellina Unit; for 768 thousand euro on the power plants of the Mese and Udine Unit; • “Industrial and commercial equipment” for 480 thousand euro; • “Other assets” for 4,012 thousand euro; in detail, 2,785 thousand euro refer to LAN and WAN network equipment and fixed and mobile telephone equipment, 607 thousand euro to furniture and furnishings, particularly for the corporate, 295 thousand euro to vehicles and generators, 124 thousand euro to other miscellaneous assets, 110 thousand euro to goods worth less than 516 euro, and 91 thousand euro to computer equipment in the “New Data Center”; • “Construction in progress and advances” for an amount of 57,443 thousand euro; • “Improvements on third-party goods” for 772 thousand euro mainly for the “Smart Bin” project. “Tangible assets” include “Construction in progress and advances” for 141,574 thousand euro (105,256 thousand euro at December 31, 2023), presenting an increase of 36,318 thousand euro resulting from the counter effects of the following items: • the increase of 57,443 thousand euro is attributable to: for 36,823 thousand euro to works on buildings (mainly on the area of Piazza Trento in Milan, on the headquarters in via Lamarmora in Brescia, on the building of Premadio 2 and Grosio); for 19,642 thousand euro to interventions on plant and machinery (mainly on the hydroelectric plants of the Calabria Unit for 7,886 thousand euro, on the hydroelectric plants of the Mese and Udine Unit for 6,342 thousand euro, on the plants of the Valtellina Unit for 5,016 thousand euro) and other asset for 978 thousand euro; • the decrease due to the start-up of operations amounted to 20,973 thousand euro and was attributable for 9,859 thousand euro to works on production plants (mainly on the hydroelectric plants of the Mese and Udine Unit for 5,036 thousand euro, on the hydroelectric plants of the Calabria Unit for 3,800 thousand euro, on the plants of the Valtellina Unit for 916 thousand euro), for 9,464 thousand euro to works on buildings at Via Lamarmora in Brescia, for 1,585 thousand euro mainly to works on buildings at the S. Silvestro headquarters in Rome and other assets for 65 thousand euro; • a decrease of 140 thousand euro due to a reclassification from “Tangible assets” to “Intangible assets”; • the decrease of 12 thousand euro due to other changes in the accounts. “Tangible assets” include “Assets for rights of use” totaling 56,948 thousand euro (58,065 thousand euro at December 31, 2023), recognized in accordance with IFRS16 and for which the outstanding payable to lessors at December 31, 2024 amounted to 72,126 thousand euro (76,343 thousand euro at December 31, 2023). Below is a breakdown of “Assets for rights of use” deriving from operating and financial leases at December 31, 2024. thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 Increases Other changes Amort. Total Changes Land 35 1,240 (1) (7) 1,232 1,267 Buildings 19,597 4,675 4,167 (7,751) 1,091 20,688 Plant and machinery 30,921 - 1,920 (6,255) (4,335) 26,586 Industrial and commercial equipment 16 - - (9) (9) 7 Other assets (1) \- 1 - 1 - Vehicles 7,4 97 3,868 (383) (2,582) 903 8,400 Total 58,065 9,783 5,704 (16,604) (1,117) 56,948 It is specified that the Company has made use of the option provided for in paragraph 6 of the standard not to apply the provisions of paragraphs 22 to 49 of the standard to the following categories: a) Short-term leases; b) Leases whose underlying assets are of low value. 44 A2A Separate financial statements 2024 Notes 2) Intangible assets thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 Capex Other changes Write- downs / Reversal Amort. Total Changes Industrial patents and intellectual property rights 19,165 5,788 2,802 - (12,532) (3,942) 15,223 Concessions, licenses, trademarks and similar rights 74,983 51,336 1,163 (492) (44,120) 7, 8 87 82,870 Goodwill 66,659 - - - - - 66,659 Assets in progress 11,514 15,214 (4,516) - - 10,698 22,212 Other intangible assets 31,969 433 (28,627) - (521) (28,715) 3,254 Total intangible assets 204,290 72,771 (29,178) (492) ( 57,17 3 ) (14,072) 190,218 “Intangible assets” amounted to 190,218 thousand euro (204,290 thousand euro at December 31, 2023), representing a net decrease of 14,072 thousand euro as a result of the following transactions: • capex for 72,771 thousand euro; • amortization for 57,173 thousand euro accounted for in the period; • other negative variations of 29,178 thousand euro mainly due to the decrease in environmental certificates of the industrial portfolio; • write-downs for 492 thousand euro. More specifically, capex during the period refer to the following: • 51,336 thousand euro for “Concessions, licenses, trademarks and similar rights” related to the purchase of software; • 15,214 thousand euro for “Intangible assets under construction”; • 5,788 thousand euro for “Industrial patents and intellectual property rights” mainly concerning the implementation of information technology and computer systems; • 433 thousand euro for “Other intangible assets”. In the total value of “Intangible assets”, there are “Intangible assets under construction” amounting to 22,212 thousand euro (11,514 thousand euro as of December 31, 2023), showing an increase of 10,698 thousand euro resulting from the opposing effects of the following items: • the increase of 15,214 thousand euro mainly relating to the development of new IT projects; • the decrease of 4,500 thousand euro due to the transition to use of software and computer applications; • the decrease of 16 thousand euro due to other changes. Goodwill Goodwill equal to 66,659 thousand euro, as of December 31, 2024, was formed as a result of non- recurring transactions with third parties. Said goodwill has been allocated to the following CGUs, which for A2A S.p.A. correspond to investments in subsidiaries:”A2A Reti Gas” for 5,215 thousand euro, “A2A Gas” for 6,800 thousand euro, “A2A Calore” for 18,000 thousand euro and “A2A Ambiente” for 36,644 thousand euro. Under IAS 36 goodwill, as an intangible asset with an indefinite useful life, is not amortized systematically but tested at least once a year (“Impairment Test”).As goodwill neither generates independent cash flow nor can it be sold separately, IAS 36 calls for a secondary audit of its recoverable amount, determining cash flows generated by a set of assets that constitute the business to which it belongs, i.e. the Cash Generating Unit (CGU). The recoverable value of the CGUs was determined based on the future cash flows of the investees to which the goodwill refers, and it is compared with the Net Invested Capital represented by Notes Separate financial statements 2024 A2A 45 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors the value of the investment and the goodwill itself. The parameters used for the purpose of the impairment test are as follows: CGU Value in thousands of euro 12 31 2024 Recoverable Value WACC 2024 post-tax (1) Growth rate g 2024 Balance scenario (2) WACC of reference (3) Growth rate g A2A Ambiente 36,644 Use value 6.8% 0.0% 14.6% 0.0% A2A Reti Gas 5,215 Use value n.a. 0.0% n.a. n.a. A2A Gas 6,800 Use value 6.7% 0.0% n.s 0.0% A2A Calore 18,000 Use value 5.6% 0.0% 5.9% 0.0% Total 66,659 The verification of the recoverability of the recorded value confirmed its recoverability. 3) Shareholdings and other non-current financial assets thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 of which included in the NFP 12 31 2023 12 31 2024 Shareholdings in subsidiaries 4,197,002 1,308,730 5,505,732 Shareholdings in affiliates 5,371 (5) 5,366 Other non-current financial assets 574,944 (173,301) 401,643 549,704 365,105 Total shareholdings and other non-current financial assets 4,777,317 1,135,424 5,912,741 549,704 365,105 Shareholdings in subsidiaries “Shareholdings in subsidiaries” amounted to 5,505,732 thousand euro (4,197,002 thousand euro at December 31, 2023). The following table shows the changes in the item: Shareholdings in subsidiaries thousands of euro Total Balance at 12 31 2023 4,197,002 Changes: \- acquisitions and capital increases 1,309,585 \- reclassifications (5) \- other changes (850) Total changes 1,308,730 Balance at 12 31 2024 5,505,732 The value of shareholdings in subsidiary companies shows an overall increase of 1,308,730 thousand euro compared to the close of the previous fiscal year due to: • the acquisition of 90% of the company Duereti S.r.l. for 1,228,780 thousand euro after the closing of the transaction with E-distribuzione, enabling the company to undertake power distribution activities in several municipalities within the provinces of Milan and Brescia. The transfer of the shareholding to A2A took effect from December 31, 2024; 46 A2A Separate financial statements 2024 Notes • 50,000 thousand euro increase in the shareholding in A2A Rinnovabili S.p.A. following the conversion of the second tranche of part of the financial receivable from the company into equity of the same; • increase of 10,000 thousand euro relating to the capital contribution subscribed in the investee company A2A Services & Real Estate S.p.A.; • increase of 10,000 thousand euro relating to the capital contribution subscribed in the investee company A2A Energy Solution S.r.l.; • increase of 8,800 thousand euro relating to the acquisition of a 4.40% minority interest in the subsidiary LD Reti S.r.l. from A.S. Mortara; • incorporation of the company TEXELERA S.c.a r.l., 51% owned, for 5 thousand euro and subsequent capital contribution of 2,000 thousand euro; • collection of 850 thousand euro relating to the closure of the liquidation process of the company Proaris S.r.l.; • reclassification under “Shares in affiliates and joint ventures” of the investment in ES Energy S.r.l. for 5 thousand euro. Further information regarding movements involving shareholdings in subsidiary companies and comparison between their book value and corresponding portions of net assets may be found in annexes 1/a and 2/a, respectively. Shareholdings in affiliates and joint ventures “Shareholdings in affiliates and joint ventures” amounted to 5,366 thousand euro (5,371 thousand euro as at December 31, 2023). The following table shows the changes in the item: Shareholdings in affiliates thousands of euro Total Balance at 12 31 2023 5,371 Changes: \- write-downs (10) \- reclassifications 5 Total changes (5) Balance at 12 31 2024 5,366 The value of shareholdings in affiliates has decreased by 5 thousand euro. This reduction is attributed to the write-down of the investment in Visano Società Trattamento Reflui S.c.a.r.l, which is undergoing a liquidation process amounting to 10 thousand euro, partially offset by the reclassification of the investment in ES Energy S.r.l. for 5 thousand euro. Further details regarding shareholdings in affiliates may be found in annexes 1/b and 2/b. Impairment of shareholdings in subsidiaries, associates and joint ventures The recoverable value of shareholdings has been measured based on the present value of the corresponding expected net cash flows attributable to the shareholdings of A2A S.p.A. The cash flows used are in line with those used for the Impairment Test of the CGU for the consolidated financial statements. The same applies to the methodological approach and discount rates adopted further detailed in the Consolidated Annual Financial Report (note 2). It shall be recalled that the Impairment Test is carried out for all shareholdings which have a carrying value higher than the corresponding fraction of shareholders’ equity of competence and/or in the presence of specific impairment indicators. Notes Separate financial statements 2024 A2A 47 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors In the year under review, the results of the Impairment Test performed did not lead to any impairment/ revaluation at December 31, 2024. Other non-current financial assets “Other non-current financial assets” amounted to 401,643 thousand euro (574,944 thousand euro as at December 31, 2023), of which: • 357,952 thousand euro (542,131 thousand euro as at December 31, 2023) relating to financial assets with related parties concerning interest-bearing intragroup loans. The decrease is mainly due to the reclassification of the short-term portion of the aforementioned loans to “Current financial assets”, repayments made during the year, net of new disbursements; • other securities for 96 thousand euro, unchanged compared to the previous year, relating to other government securities; • financial assets measured at fair value through profit or loss (FVTPL) of 1,065 thousand euro (888 thousand euro as at December 31, 2023), relating to minority shareholdings, the increase of which, in the amount of 177 thousand euro, derives from the subscription for 167 thousand euro of the capital increase of the investee L.E.A.P. S.c.a.r.l., now 17.05% owned, alongside the acquisition of a 0.28% equity stake in AQM S.r.l. from its subsidiary A2A Energia S.r.l. for 10 thousand euro; • financial receivables related to rights of use in accordance with IFRS16 (subleases) from subsidiaries for 7,057 thousand euro (7,477 thousand euro at December 31, 2023); • other financial assets of 35,473 thousand euro (24,352 thousand euro at December 31, 2023) relating to shareholdings in innovative start-ups through corporate venture capital projects, measured at fair value at year-end. 4) Deferred tax assets thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 Deferred tax assets 95,047 4,280 99,327 The item, equal to 99,327 thousand euro, includes the net effect, as detailed in the table below to which reference is made, of deferred tax liabilities and deferred tax assets as per corporate income tax (IRES) and regional tax (IRAP) as well as provisions made solely for tax purposes. For IRES purposes, the recoverability of “Deferred tax assets” recorded in the financial statements is considered likely, as the future Business Plans of the A2A Group envisage taxable income sufficient to use the deferred tax assets on a consolidated basis in accordance with articles 117-129 of Presidential Decree 917/1986, in which the Company acts as consolidating company. For IRAP purposes, the recoverability of “Deferred tax assets” recorded in the financial statements was assessed on the basis of the Company’s future Business Plan: for the years of the plan between 2025 and 2029, IRAP taxable income is not expected to be sufficient to absorb the IRAP temporary differences, therefore the amount of IRAP deferred tax assets for which there is no allowance in future taxable income (5,010 thousand euro) was reversed. Deferred tax assets are calculated using the tax rate applicable at the time of repayment. 48 A2A Separate financial statements 2024 Notes At December 31, 2024, the amounts relative to deferred tax assets/deferred tax liabilities have been expressed as net (so called (“offsetting”) as per IAS 12 standards. This item is detailed within the table below: thousands of euro Balance at 12 31 2024 Balance at 12 31 2023 Value differences of tangible assets 40,432 53,819 Value differences of intangible assets 531 3,040 Other deferred tax liabilities 8,147 3,858 Deferred tax liabilities (A) 49,110 60,717 Taxed risk provisions 59,639 64,301 Amortization, depreciation and write-downs 37,78 4 38,947 Bad debts provision 1,144 2,029 Provisions and employee benefits 16,473 17,825 Goodwill 25,388 31,124 Other deferred tax assets 8,009 1,538 Deferred tax assets (B) 148,437 155,764 Net effect deferred tax assets (B-A) 99,327 95,047 For further details and information, please refer to the item “Income/expenses for income tax” on the income statement. 5) Other non-current assets thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 of which included in the NFP 12 31 2023 12 31 2024 Non-current derivatives - 1,041 1,041 - 1,041 Other non-current assets 50,293 (22,632) 27,661 - - Total other non-current assets 50,293 (21,591) 28,702 - 1,041 “Other non-current assets” amounted to 28,702 thousand euro (50,293 thousand euro at December 31, 2023) with a negative variation in relation to the previous financial year of 21,591 thousand euro, reflecting: • “Non-current derivates” in the amount of 1,041 thousand euro, contrasting with no valuation in the previous year, and relate to the fair value assessment of derivatives used for hedging against interest rate variations; • “Other non-current assets” for 27,661 thousand euro (50,293 thousand euro at December 31, 2023) mainly related to security deposits (18,998 thousand euro) from third parties, as well as receivables from the tax authorities for tax benefits under building bonuses due beyond the next financial year (8,538 thousand euro). Notes Separate financial statements 2024 A2A 49 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Current assets 6) Inventories thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 \- Materials and spare parts 1,297 2,722 4,019 \- Material obsolescence provision (734) (36) (770) Total materials 563 2,686 3,249 \- Fuel 170,274 9,633 179,907 \- Others \- 140 140 Total raw and ancillary materials and consumables 170,837 12,459 183,296 Fuel at third parties 2,212 (2,212) - Total inventories 173,049 10,247 183,296 At December 31, 2024, inventories amounted to 183,296 thousand euro (173,049 thousand euro at December 31, 2023); changes for the period are positive for 10,247 thousand euro, and refer to the increase in gas and coal inventories compared to the end of the previous year, which primarily reflects the higher volumes of gas in storage. Raw and ancillary materials and consumables consist of inventories of: • materials for 3,249 thousand euro, net of the relative provision for obsolescence for 770 thousand euro; • fuels, amounting to 179,907 thousand euro, which include gas inventories arising from the sale and storage of gas, as well as inventories of fuels for the production of electricity; • others for 140 thousand euro concerning to the remaining environmental certificates relating to the trading portfolio. As of December 31, 2023, this item included 2,212 thousand euro relating to coal stored in Koper, which was fully sold over the course of the year in question. The gas inventory of the industrial portfolio is deemed recoverable based on the forward curves for the fiscal year in which its provision is planned. 50 A2A Separate financial statements 2024 Notes 7) Trade receivables thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 Trade receivables – invoices issued 199,679 85,749 285,428 Trade receivables – invoices to be issued 1,990,313 (318,277) 1,672,036 Bad debts provision (10,114) 9,346 (768) Total trade receivables 2,179,878 (223,182) 1,956,696 At December 31, 2024, trade receivables amounted to 1,956,696 thousand euro (2,179,878 thousand euro at December 31, 2023) and decreased by 223,182 thousand euro. These receivables include: • for 969,048 thousand euro receivables from customers (823,591 thousand euro at December 31, 2023); • for 987,648 thousand euro receivables from subsidiaries, controlling entities and associates (1,356,287 thousand euro at December 31, 2023). The change in trade receivables is mainly attributable to the reduction in tariffs for the sale of electricity and gas observed during the year in the reference scenario. It should be noted that the Company occasionally assigns receivables without recourse and has no revolving factoring programs in place. At December 31, 2024, the bad debt provision calculated in accordance with IFRS 9 amounted to 768 thousand euro, a decrease of 9,346 thousand euro. This provision is considered adequate to cover the risks to which it relates. The detailed changes in the provisions to adjust the values of receivables are outlined in the following table: thousands of euro Balance at 12 31 2023 Provisions Uses Other changes Balance at 12 31 2024 Bad debts provision 10,114 (2,016) (7,330) - 768 The following is the aging of trade receivables: thousands of euro 12 31 2023 12 31 2024 Trade receivables of which: 2,179,878 1,956,696 Current 170,144 280,497 Past due of which: 29,535 4,931 Past due up to 30 days 897 2,062 Past due from 31 to 180 days 16,167 202 Past due from 181 to 365 days 9,325 143 Past due over 365 days 3,146 2,524 Invoices to be issued 1,990,313 1,672,036 Bad debts provision (10,114) (768) Notes Separate financial statements 2024 A2A 51 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 8) Other current assets thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 of which included in the NFP 12 31 2023 12 31 2024 Current derivatives 1,525,283 (660,134) 865,149 - - Other current assets of which: 456,272 (204,240) 252,032 \- advances to suppliers 1,067 (680) 387 \- receivables from employees 164 (66) 98 \- tax receivables 12,140 (2,767) 9,373 \- receivables from subsidiaries for tax consolidation 126,133 29,343 155,476 \- receivables related to future years 13,746 8,531 22,277 \- receivables from social security entities 708 (35) 673 \- receivables from stamp office 123 - 123 \- receivables for damage compensation 1 - 1 \- receivables for security deposits 296,731 (254,905) 41,826 \- other sundry receivables 5,459 16,339 21,798 Total other current assets 1,981,555 (864,374) 1,117,181 - - “Other current assets” show a balance of 1,117,181 thousand euro (1,981,555 thousand euro at December 31, 2023), a decrease of 864,374 thousand euro compared to the previous financial year. “Current derivative instruments” amounting to 865,149 thousand euro (1,525,283 thousand euro at December 31, 2023) refer to the fair value valuation of commodity derivatives at the end of the year under review. The decrease is mainly attributable to a decrease in fair value valuation due to a lower average difference between subscription prices and market prices. “Advances to suppliers” of 387 thousand euro (1,067 thousand euro at December 31, 2023) refer to prepayments on professional services. “Tax receivables”, which amounted to 9,373 thousand euro (12,140 thousand euro at December 31, 2023), refer to receivables from the tax authorities for tax benefits under building bonuses due within one year (4,442 thousand euro), receivables from the tax authorities for excise duties (3,001 thousand euro), tax credits from the tax authorities for investments in new capital goods as provided for by Art. 1, par. 1051 - 1063 of L. 178/2020, as amended by Art. 1, paragraph 44 of Law 234/2021 (1,127 thousand euro), to a tax credit towards the Treasury for research and development activities recognized for the purposes provided for in Article 1, paragraphs 198 to 206, of Law no. 160 of December 27, 2019, as amended, and by the Decree of May 26, 2020 issued by the Ministry of Economic Development (410 thousand euro), to VAT credits (284 thousand euro), to a tax credit towards the Treasury for sanitization and the purchase of protective devices pursuant to Art. 125 of LD 34/2020 - Decreto Rilancio (Relaunch Decree) (26 thousand euro), as well as other receivables for 83 thousand euro. “Receivables from subsidiaries for tax consolidation” and Group VAT amounted to 155,476 thousand euro (126,133 thousand euro at December 31, 2023). “Receivables for guarantee deposits” of 41,826 thousand euro (296,731 thousand euro at December 31, 2023) mainly refer to the deposit with the Electricity Market Operator (GSE) for operations on the electricity market. Other sundry receivables include receivables related to job orders in progress, as well as receivables related to the sale of the shareholding in Ge.S.I. S.r.l. 52 A2A Separate financial statements 2024 Notes 9) Current financial assets thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 of which included in the NFP 12 31 2023 12 31 2024 Other financial assets 24,550 3,286 27,836 24,550 27,836 Other financial assets from related parties 3,454,198 747,605 4,201,803 3,454,198 4,201,803 Total current financial assets 3,478,748 750,891 4,229,639 3,478,748 4,229,639 “Current financial assets” amounted to 4,229,639 thousand euro (3,478,748 thousand euro at December 31, 2023), with an increase of 750,891 thousand euro referring: • for 4,228,580 thousand euro to “Loans and receivables originated by HTC (Hold to Collect)” (3,477,839 thousand euro at December 31, 2023) of which: • from subsidiaries 4,200,744 thousand euro (3,453,289 thousand euro at December 31, 2023) for both the balance of intra-group current accounts on which interest rates are applied, at market conditions, with a variable Euribor basis with specific spreads for companies and for the current portion of loans granted to subsidiaries; • to third parties 27,836 thousand euro (24,550 thousand euro at December 31, 2023) related to financial receivables with third parties, in particular to credits for interest income accrued on bank deposits; • for 1,059 thousand euro “IFRS 16 financial receivables (subleases)” from subsidiaries (909 thousand euro at December 31, 2023). 10) Current tax assets thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 Attività per imposte correnti 17,034 (492) 16,542 At December 31, 2024, this item amounted to 16,542 thousand euro (17,034 thousand euro at December 31, 2023) and refers to IRAP receivables (9,681 thousand euro), as well as to IRES receivables (5,562 thousand euro), for amounts requested for reimbursement, as well as the remaining credit for Robin Tax (1,299 thousand euro) paid in previous years and that will be recovered in subsequent years. Notes Separate financial statements 2024 A2A 53 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 11) Cash and cash equivalents thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 of which included in the NFP 12 31 2023 12 31 2024 Cash and cash equivalents 1,487,378 (164,212) 1,323,166 1,487,378 1,323,166 “Cash and cash equivalents” at December 31, 2024 amounted to 1,323,166 thousand euro (1,487,378 thousand euro at December 31, 2023), with a negative variation of 164,212 thousand euro compared with the end of the previous year. This variation remained contained despite acquiring Enel’s electricity distribution assets in the Milan and Brescia provinces, confirming a strong overall liquidity position. This item includes term current accounts, in the amount of 338,365 thousand euro, related to trading on commodity derivative platforms. Bank deposits include accrued interest not yet credited by the end of the period. 54 A2A Separate financial statements 2024 Notes Equity and liabilities Equity Equity, which at December 31, 2024 amounted to 5,016,506 thousand euro (3,788,656 thousand euro at December 31, 2023), is detailed in the following table: thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 Shareholders’ equity Share capital 1,629,111 - 1,629,111 (Treasury shares) - - - Reserves 1,671,335 9 2 7,67 6 2,599,011 Result of the year 488,210 300,174 788,384 Total shareholders’ equity 3,788,656 1,227,850 5,016,506 12) Share capital At December 31, 2024, the “Share capital” amounted to 1,629,111 thousand euro and is comprised of 3,132,905,277 ordinary shares with a unitary value of 0.52 euro each. 13) Reserves thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 Reserves 1,671,335 9 2 7,6 76 2,599,011 Change in the fair value of cash flow hedge derivatives and Bond fair value (4,529) (12,068) (16,597) Tax effect 743 3,190 3,933 Reserves of cash flow hedges and fair value bonds (3,786) (8,878) (12,664) Change in the IAS 19 Revised reserve - Employee Benefits (58,584) 12,503 (46,081) Tax effect 17,366 (5,019) 12,347 IAS 19 Revised reserve - Employee Benefits (41,218) 7, 4 8 4 (33,734) Change in fair value of financial assets - 9,008 9,008 Tax effect - (2,664) (2,664) Fair value reserves of financial assets - 6,344 6,344 The variations in the “Reserves”, which at December 31, 2024, show a balance of 2,599,011 thousand euro (1,671,335 thousand euro at December 31, 2023), resulted in a positive change of 927,676 thousand euro due to the allocation of the 2023 profit, net of the dividends distributed, as well as the recognition of the reserve related to the first issuance of a perpetual subordinated hybrid bond in Green format – use of proceeds. The reserve related to the first hybrid subordinated perpetual bond issuance in Green use of proceeds format, with a nominal value of 750 million euro, amounts to 741,812 thousand euro, net of issuance expenses and the tax effect on them. The bond, placed at an issue price of 99.460% and characterized by a non-call period of 5.25 years, will have a perpetual maturity and will pay a fixed annual coupon of 5.000% until the first reset date on September 11, 2029. Notes Separate financial statements 2024 A2A 55 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors From that date, unless early redemption has taken place, the security will accrue interest per annum equal to the five-year Euro Mid Swap reference rate increased by an initial margin of 225.8 basis points, increased by a further margin of 25 basis points from September 11, 2034 and by a subsequent increase of a further 75 basis points from September 11, 2049. The reserves also include the reserve related to the payment of the first tranche of coupons for 9,426 thousand euro, along with a related tax impact of minus 2,262 thousand euro. This item includes the following unavailable reserves: • for 55,430 thousand euro the reserve arising from the corporate separation occurred in 1999. Such reserve will be available for distribution in portions in the following years based on the amortization carried out by the receiving company on the higher values determining capital gains from contribution; • 12,664 thousand euro for the negative cash flow hedge reserve including the fair value of hedging derivatives and bonds in foreign currency, net of tax; • for 33,734 thousand euro, the negative reserve arising from the adoption of IAS 19 Revised - Employee Benefits which requires actuarial profits and losses to be recognized directly in an equity reserve, net of the tax effect; • 6,344 thousand euro for the Fair Value measurement reserve of financial assets, net of the related tax effect; • for 462 thousand euro, the negative available-for-sale reserve including the fair value of certain available-for-sale shareholdings net of the tax effect; • for 358,029 thousand euro, the legal reserve, whose increase of 24,411 thousand euro compared with the previous year derives from the allocation of profit for the previous year. It shall be noted that in 2021, the company opted, pursuant to L.D. 104/2020, for the realignment of differences between the higher statutory value and the lower tax value of tangible assets via payment of a substitute tax equal to 3% of the realigned value in three annual installments. The company’s reserves are therefore subject to a tax suspension restriction amounting to 227,530 thousand euro, calculated as the difference between the realigned value and the substitute tax due. The distribution of these reserves or their allocation to uses other than loss coverage will result in taxation of the same. The additional reserves and the profits that in case of distribution must be considered as IRES tax suspension amounted to 6,385 thousand euro. It should be noted that during 2024, dividends amounting to 300,132 thousand euro corresponding to 0.0958 euro per share were distributed, as approved by the shareholders’ meeting on April 24, 2024. 14) Net result of the year Positive result for 788,384 thousand euro. 56 A2A Separate financial statements 2024 Notes Liabilities Non-current liabilities 15) Non-current financial liabilities thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 of which included in the NFP 12 31 2023 12 31 2024 Non-convertible bonds 4,799,729 (296,970) 4,502,759 4,799,729 4,502,759 Payables to banks 456,575 823,292 1,279,867 456,575 1,279,867 Payables to other lenders - 149,875 149,875 - 149,875 Non-current financial payables for rights of use to third parties 26,827 (3,123) 23,704 26,827 23,704 Non-current financial payables for rights of use to related parties 29,482 (3,229) 26,253 29,482 26,253 Total non-current financial liabilities 5,312,613 669,845 5,982,458 5,312,613 5,982,458 “Non-current financial liabilities”, which amounted to 5,982,458 thousand euro (5,312,613 thousand euro at December 31, 2023), increased by 669,845 thousand euro. “Non-convertible bonds” amounting to 4,502,759 thousand euro (4,799,729 thousand euro at December 31, 2023) relate to the following bonds, which are accounted for at amortized cost: • 298,436 thousand euro, maturing in October 2027 and coupon of 1.625%, the nominal value of which is equal to 300,000 thousand euro; • 85,561 thousand euro, Private Placement in yen maturing in August 2036 and fixed rate of 5.405%, the nominal value of which is equal to 14 billion yen; • 396,818 thousand euro, maturing in July 2029 and coupon of 1.00%, the nominal value of which is equal to 400,000 thousand euro; • 496,958 thousand euro, maturing in July 2031 and coupon of 0.625%, the nominal value of which is equal to 500,000 thousand euro; • 494,989 thousand euro, maturing in October 2032 and coupon of 0.625%, the nominal value of which is equal to 500,000 thousand euro; • 495,558 thousand euro, maturing in November 2033 and coupon of 1%, the nominal value of which is equal to 500,000 thousand euro; • 497,017 thousand euro, maturing in March 2028 and coupon of 1.5%, the nominal value of which is equal to 500,000 thousand euro; • 598,142 thousand euro, maturing in June 2026 and coupon of 2.5%, the nominal value of which is equal to 600,000 thousand euro; • 646,452 thousand euro, maturing in September 2030 and coupon of 4.5%, the nominal value of which is equal to 650,000 thousand euro; • 492,828 thousand euro, maturing in September 2034 and coupon of 4.375%, the nominal value of which is equal to 500,000 thousand euro. The decrease in the non-current component of “Non-convertible bonds”, amounting to 296,970 thousand euro compared with December 31, 2023, is essentially due to the reclassification under “Current financial liabilities” of the bond maturing in 2025 (300 million euro), and the decrease in the ECB exchange rate applied to the Private Placement in yen. Non-current “Payables to banks” amounted to 1,279,867 thousand euro (456,575 thousand euro at December 31, 2023). This item includes the book value of loans granted by the European Investment Bank in the amount of 381,134 thousand euro and by various credit institutions in the amount of 898,733 thousand euro. The net increase of 823,292 thousand euro at the end of the reporting Notes Separate financial statements 2024 A2A 57 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors period is attributed to the issuance of three loans with a total nominal value of 900,000 thousand euro and the reclassification of capital amounts due within the next twelve months under current liabilities. “Payables to other lenders” amounted to 149,875 thousand euro (no value at December 31, 2023) and refer to a loan granted by the Cassa Depositi e Prestiti, for a nominal value of 150,000 thousand euro. “Financial payables for non-current rights of use”, in application of IFRS 16 for leases previously classified as operating, both to third parties and related parties, amounted to 49,957 thousand euro, with a decrease of 6,352 thousand euro compared to the end of the previous year. For an analysis of the maturity dates of each item of these payables, please refer to the special detailed table in the “Other information” section in chapter 6) Financial Risk Management in paragraph d. Liquidity risk, while for further analysis of the division between fixed-rate and variable- rate payables, please refer to the special detailed table in paragraph b. Interest rate risk. The following table shows the comparison, for each long-term debt category, between the book value and the fair value, including the portion falling due in the next 12 months. For listed debt instruments, the fair value is determined using stock prices, while for unlisted securities the fair value is determined using valuation models for each category of financial instrument and using market data relating to the closing date of the financial year, including the credit spreads of A2A S.p.A. thousands of euro Nominal value Book value Current portion Non-current portion Fair Value Bonds 4,848,000 4,857,049 354,290 4,502,759 4,606,252 Loans from banks and other lenders 1,937,209 1,941,738 511,996 1,429,742 1 ,0 7 7,9 4 2 Total 6,785,209 6,798,787 866,286 5,932,501 5,684,194 16) Employee benefits “Employee Benefits” amounted to 109,635 thousand euro (123,148 thousand euro as of December 31, 2023) with changes as follows during the period: thousands of euro Balance at 12 31 2023 Accruals Uses Other changes Balance at 12 31 2024 Employee leaving entitlement (TFR) 15,093 8,113 (1,476) (7,605) 14,125 Employee benefits 108,055 - (4,393) (8,152) 95,510 Total employee benefits 123,148 8,113 (5,869) (15,757) 109,635 The change in the item is attributable to 8,113 thousand euro in provisions for the year, 5,869 thousand euro in the decrease due to disbursements during the year, and 15,757 thousand euro in the net decrease due to actuarial valuations, resulting from the combined effect of the increase for interest cost of 3,900 thousand euro, the decrease for actuarial gains/losses of 12,503 thousand euro, and other negative changes for 7,154 thousand euro. 58 A2A Separate financial statements 2024 Notes Technical valuations were carried out on the basis of the following assumptions: thousands of euro 2023 2024 Discount rate from +2.95% to +3.17% from +2.69% to +3.38% Annual inflation rate 2.0% 2.0% Annual seniority bonus increase rate 2.0% 2.0% Annual additional months increase rate 0.0% 0.0% Annual cost of electricity increase rate 2.0% 2.0% Annual cost of gas increase rate 0.0% 0.0% Annual salary increase rate 1.0% 1.0% Annual TFR increase rate 3.0% 3.0% Average annual increase rate of supplementary pensions 1.125% 1.125% Annual turnover frequencies 5.0% 5.0% Annual TFR advance frequencies 2.0% 2.0% It is noted that: • the annual discount rate used to determine the present value of the bond has been derived, in line with paragraph 83 of IAS 19, from the Iboxx Corporate AA index, with duration 7-10, recognized at the measurement date. For this purpose, the yield with duration comparable to the duration of the work group evaluated was chosen; • the annual rate of salary increase applied exclusively to companies with fewer than 50 employees on average in 2006 was determined on the basis of the reference data communicated by Group companies; • the annual rate of TFR increase, according to art. 2120 of the Civil Code, is equal to 75% of inflation plus 1.5 percentage points; • the annual advance and turnover frequencies are derived from historical experiences of the Group and the frequencies arising from the experience of the Actuary on a significant number of similar companies; • for the demographic technical bases, it is noted that: • for the “death”, the tables TG62 (Premungas), AS62 (Electricity and Gas Discount), and ISTAT Tables 2022 (TFR) were used; • for “inability”, the INPS tables divided by age and gender were used; • for “retirement”, the 100% parameter was used upon reaching the requirements of AGO (Obligatory General Insurance) in accordance with LD no. 04/2019; • for the “probability of leaving the family”, the table in the INPS model was used for projections to 2010 updated; • for the “frequency of the various structures of surviving nuclei and average age of members”, the table in the INPS model was used for projections to 2010. As required by IAS 19, the sensitivity for post-employment employee benefit obligations is outlined below: thousands of euro Turnover rate +1% Turnover rate -1% Inflation rate +0.25% Inflation rate -0.25% Discount rate +0.25% Discount rate -0.25% TFR 14,111 14,033 14,196 13,952 13,883 14,268 Notes Separate financial statements 2024 A2A 59 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors thousands of euro Discount rate +0.25% Discount rate -0.25% Mortality table increased by 10% Mortality table decreased by 10% Premungas 8,647 8,877 8,316 9,256 Electricity and gas discount 81,759 86,530 86,705 81,747 Additional months 1,383 1,435 - - 17) Provisions for risks, charges and liabilities for landfills thousands of euro Balance at 12 31 2023 Provisions Releases Uses Other changes Balance at 12 31 2024 Decommissioning provisions 4,545 - - - (39) 4,506 Tax provisions 2,030 1 (596) - - 1,435 Personnel lawsuits and disputes provisions 5,949 - (524) (134) 495 5,786 Other risk provisions 158,331 32,777 (793) (30,939) 12,509 171,885 Provisions for risks, charges and liabilities for landfills 170,855 32,778 (1,913) (31,073) 12,965 183,612 “Decommissioning provisions”, which amounted to 4,506 thousand euro, include charges for costs of dismantling and recovery of production sites related to hydroelectric plants of Valtellina and Calabria. The changes in the item are negative for 39 thousand euro and refer both to the updating of the appraisals and to the revision of the discount rates used for estimation of future charges. “Tax Provisions”, which amounted to 1,435 thousand euro, refer to provisions for pending or potential litigation with the tax authorities or territorial entities for levies and direct and indirect taxes. The changes mainly involved releases of 596 thousand euro and provisions of 1 thousand euro. The “Personnel lawsuits and disputes provisions” amounted to 5,786 thousand euro and refer to lawsuits pending with social security institutions, for contributions not paid for 998 thousand euro, to lawsuits with third parties for 4,083 thousand euro and with employees for 705 thousand euro, to cover the liabilities that could arise from litigations in progress. The changes during the period concern releases of 524 thousand euro, uses of 134 thousand euro, and other increases of 495 thousand euro. “Other risk provisions” of 171,885 thousand euro refer to provisions relating to public water derivation fees for 131,408 thousand euro, provisions for contractual expenses for 15,596 thousand euro, to the mobility provision for the costs arising from the corporate restructuring plan for 7,206 thousand euro, as well as other provisions for risks for 17,675 thousand euro. Changes during the period regard provisions of 32,777 thousand euro, uses of 30,939 thousand euro, releases of 793 thousand euro and other increases of 12,509 thousand euro. The risk of climate change did not give rise to the need to recognize additional contingent liabilities as the company, as required by the standard, reviews risks annually, estimating the present value of the amounts required to meet future contingent obligations (e.g. decommissioning provisions on hydroelectric plants).This estimate is the result of the methodology used by the company in previous years, which takes into account the macroeconomic scenario. 60 A2A Separate financial statements 2024 Notes 18) Other non-current liabilities thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 of which included in the NFP 12 31 2023 12 31 2024 Other non-current liabilities 3,455 - 3,455 - - Non-current derivatives 10,703 7, 8 37 18,540 10,703 18,540 Total other non-current liabilities 14,158 7,8 3 7 21,995 10,703 18,540 “Other non-current liabilities” amounted to 21,995 thousand euro and refer to: • “Non-current derivative instruments” equal to 18,540 thousand euro (10,703 thousand euro at December 31, 2023), which refer to the fair value measurement of the hedging derivative relating to the bond in yen maturing in 2036; • “Other non-current liabilities to third parties” amount to 3,455 thousand euro, unchanged compared to the end of the previous year, of which: • “Other non-current payables” totaling 3,354 thousand euro, which refer to payables linked to Long Term Service Agreements relating to plant maintenance; • “Security deposits” of 101 thousand euro. Notes Separate financial statements 2024 A2A 61 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Current liabilities 19) Trade payables and other current liabilities thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 of which included in the NFP 12 31 2023 12 31 2024 Advances and payables to customers 12 (5) 7 Payables to suppliers 2,529,681 (427,277) 2,102,404 Trade payables to related parties of which: 448,795 (135,710) 313,085 \- subsidiaries 384,310 (90,328) 293,982 \- joint ventures 64,357 (45,353) 19,004 \- Municipalities of Milan and Brescia 128 (29) 99 Total trade payables 2,978,488 (562,992) 2,415,496 \- - Payables to pension and social security institutions 15,267 1,188 16,455 Current derivatives 1,553,311 (786,614) 766,697 Other current liabilities of which: 150,759 (24,921) 125,838 \- payables to employees 2 7,1 3 5 11,047 38,182 \- tax payables 58,143 3,327 61,470 \- to subsidiaries for tax consolidation 35,864 (23,403) 12,461 \- payables for tax transparency 5,368 (3,598) 1,770 \- payables for liabilities of competence of the following year 33 (12) 21 \- payables for collections to be allocated 224 5,577 5,801 \- sundry payables 23,992 (17,859) 6,133 Total other current liabilities 1,719,337 (810,347) 908,990 - - Total trade payables and other current liabilities 4,697,825 (1,373,339) 3,324,486 - - “Trade receivables and other current liabilities” amounted to 3,324,486 thousand euro (4,697,825 thousand euro at December 31, 2023), representing an overall decrease of 1,373,339 thousand euro. “Trade payables” amounted to 2,415,496 thousand euro and include advances for 7 thousand euro, debt exposure to third-party suppliers (2,102,404 thousand euro) and trade payables to related parties (313,085 thousand euro). The decrease in payables to third-party suppliers is mainly attributable to the decrease in commodity trading transactions with bilateral counterparties. “Payables to social security institutions” amounted to 16,455 thousand euro and relate to the company’s debt position with social security and pension institutions, related to contributions of the month of December not yet paid. “Current derivative instruments” amounted to 766,697 thousand euro (1,553,311 thousand euro at December 31, 2023) and refer to the fair value valuation of derivatives. The decrease is mainly attributable to a decrease in fair value valuation due to a lower average difference between subscription prices and market prices. “Other current liabilities” amounting to 125,838 thousand euro (150,759 thousand euro at December 31, 2023) mainly refer to: • Group “payables to subsidiaries for tax consolidation” amounting to 12,461 thousand euro (35,864 thousand euro at December 31, 2023); • “payables to employees” for 38,182 thousand euro (27,135 thousand euro at December 31, 2023), relating to payables to employees for the productivity bonus accrued during the year, as well as the expense for holidays accrued but not taken at December 31, 2024; 62 A2A Separate financial statements 2024 Notes • “tax payables” amounting to 61,470 thousand euro (58,143 thousand euro at December 31, 2023) essentially regarding VAT payables, payables for water diversion fees, as well as payables to the tax authorities for withholding tax; • “payables for fiscal transparency” for 1,770 thousand euro (5,368 thousand euro at December 31, 2023) to the associate Ergosud S.p.A.; • “other sundry payables” which include the advance collections of electricity and gas futures contracts the economic manifestation of which will be in the following year (1,713 thousand euro) as well as payables for insurance policies (1,724 thousand euro). 20) Current financial liabilities thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 of which included in the NFP 12 31 2023 12 31 2024 Non-convertible bonds 3 57, 2 13 (2,923) 354,290 3 57, 2 1 3 354,290 Payables to banks 221,645 286,871 508,516 221,645 508,516 Payables to other lenders - 3,480 3,480 - 3,480 Financial payables to related parties 581,849 (267,331) 314,518 581,849 314,518 Current financial payables for rights of use to third parties 12,727 1,552 14,279 12,727 14,279 Current payables for rights of use to related parties 7,3 0 7 583 7,890 7, 3 0 7 7,890 Total current financial liabilities 1,180,741 22,232 1,202,973 1,180,741 1,202,973 “Current financial liabilities” amounted to 1,202,973 thousand euro, an overall increase of 22,232 thousand euro. “Non-convertible bonds” amounted to 354,290 thousand euro and show a net decrease of 2,923 thousand euro. During the year, a bond with a nominal value of 300,000 thousand euro, which expired in March 2024, was repaid, offset by the reclassification from “Non-current financial liabilities” of a bond expiring in February 2025 of the same nominal value. At December 31, 2024, the calculation of interest coupons amounted to 54,358 thousand euro (57,245 thousand euro at December 31, 2023). Current “Payables to banks”, which amounted to 508,516 thousand euro, mainly comprises the book value of loans granted by the European Investment Bank, in the amount of 76,022 thousand euro, the value of amortized costs of loans disbursed by different credit institutions for -1,209 thousand euro, the utilization of “Hot money” lines, in the amount of 430,000 thousand euro, and accrued interest, in the amount of 3,703 thousand euro. The year-on-year increase of 286,871 thousand euro was mainly related to the reclassification from “Non-current financial liabilities” of residual loans due within the next twelve months. “Payables to other lenders” amounted to 3,480 thousand euro, with no value as of December 31, 2023, and refer to interest accrued net of amortized costs relating to a loan granted by Cassa Depositi e Prestiti, for a nominal value of 150,000 thousand euro. “Financial payables to related parties” amounted to 314,518 thousand euro with a decrease of 267,331 thousand euro and relate to intra-group current accounts on which rates are applied at market conditions, with variable Euribor base with specific spreads for companies. “Financial payables for current rights of use”, in application of IFRS 16 for leases previously classified as operating, both to third parties and related parties, amounted to 22,169 thousand euro, with an increase of 2,135 thousand euro compared to the end of the previous year. Notes Separate financial statements 2024 A2A 63 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 21) Tax liabilities thousands of euro Balance at 12 31 2023 Changes Balance at 12 31 2024 Tax liabilities 52,327 36,514 88,841 At December 31, 2024, Tax liabilities amounted to 88,841 thousand euro (52,327 thousand euro at December 31, 2023) and related to the recognition of current IRES and IRAP payables for the year 2024, net of advances paid. 64 A2A Separate financial statements 2024 Notes 2.7 Net debt (pursuant to Communication ESMA/32-382-1138) 22) Net debt (pursuant to Communication ESMA/32-382-1138) The following table provides details of net debt: thousands of euro 12 31 2023 Changes 12 31 2024 Bonds - non-current portion 4,799,729 (296,970) 4,502,759 Bank loans - non-current portion 456,575 823,292 1,279,867 Non-current payables to other lenders - 149,875 149,875 Non-current financial payables for rights of use 56,309 (6,352) 49,957 Other non-current liabilities 10,703 7, 8 37 18,540 Total medium/long-term debt 5,323,316 6 7 7,6 8 2 6,000,998 Non-current financial assets - related parties (549,608) 184,599 (365,009) Non-current financial assets (96) - (96) Other non-current assets - (1,041) (1,041) Total medium/long-term financial receivables (549,704) 183,558 (366,146) Total non-current net debt 4,773,612 861,240 5,634,852 Bonds - current portion 3 5 7, 2 1 3 (2,923) 354,290 Bank loans - current portion 221,645 286,871 508,516 Current amounts due to other providers of finance - 3,480 3,480 Current financial payables for rights of use 20,034 2,135 22,169 Current financial payables to related parties 581,849 (267,331) 314,518 Total short-term debt 1,180,741 22,232 1,202,973 Other current financial assets (24,550) (3,286) (27,836) Current financial assets - related parties (3,454,198) (747,605) (4,201,803) Total short-term financial receivables (3,478,748) (750,891) (4,229,639) Cash and cash equivalents ( 1 , 4 8 7,3 78 ) 164,212 (1,323,166) Total current net debt (3,785,385) (564,447) (4,349,832) Net financial debt 988,227 296,793 1,285,020 Notes Separate financial statements 2024 A2A 65 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Pursuant to IAS 7 “Cash Flow Statement”, the following are the changes in financial assets and liabilities: thousands of euro 12 31 2023 Cash flow Change in fair value Other changes 12 31 2024 Bonds 5,156,942 (408,055) (3,696) 111,858 4,857,049 Financial payables 1,336,412 1,140,704 - (148,734) 2,328,382 Other liabilities 10,703 - 7,8 3 7 - 18,540 Financial assets (4,028,452) (531,921) - (34,371) (4,594,744) Other activities - - (1,041) - (1,041) Net liabilities deriving from financing activities 2,475,605 200,728 3,100 (71,247) 2,608,186 Cash and cash equivalents ( 1 , 4 8 7,3 78 ) 164,212 \- \- (1,323,166) Net financial debt 988,227 364,940 3,100 (71,247) 1,285,020 66 A2A Separate financial statements 2024 Notes 2.8 Notes to the income statement 23) Revenues Revenues at December 31, 2024 amounted to 8,752,816 thousand euro (11,062,441 thousand euro at December 31, 2023). thousands of euro 12 31 2024 12 31 2023 Change Percentage change Revenues from the sale of goods 8,426,529 10,779,163 (2,352,634) (21.8%) Revenues from services 273,485 266,831 6,654 2.5% Total revenues from the sale of goods and services 8,700,014 11,045,994 (2,345,980) (21.2%) Other operating income 52,802 16,447 36,355 n.s. Total revenues 8,752,816 11,062,441 (2,309,625) (20.9%) Notes Separate financial statements 2024 A2A 67 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Details of the more significant items are as follows: thousands of euro 12 31 2024 12 31 2023 Change Percentage change Sales of electricity of which: 5,340,841 6,612,718 (1,271,877) (19.2%) \- third-party customers 2,505,054 3,347,485 (842,431) (25.2%) \- subsidiaries 2,835,758 3,259,222 (423,464) (13.0%) \- associates 29 6,011 (5,982) (99.5%) Sales of gas and fuels of which: 2,825,618 3,688,445 (862,827) (23.4%) \- third-party customers 1,180,293 1,520,816 (340,523) (22.4%) \- subsidiaries 1,635,798 2,152,350 (516,552) (24.0%) \- associates 9,527 15,279 (5,752) (37.6%) Sales of heat of which: 1,099 1,226 (127) (10.4%) \- subsidiaries 1,099 1,226 (127) (10.4%) Sales of materials and equipment of which: 9,106 9,740 (634) (6.5%) \- third-party customers 1 21 (20) (95.2%) \- subsidiaries 9,105 9,719 (614) (6.3%) Sales of emission certificates and allowances of which: 249,865 467,034 (217,169) (46.5%) \- third-party customers and inventory change 8,213 26,262 (18,049) (68.7%) \- subsidiaries 241,650 399,175 ( 1 5 7,5 2 5 ) (39.5%) \- associates 2 41,597 (41,595) (100.0%) Total revenues from the sale of goods 8,426,529 10,779,163 (2,352,634) (21.8%) \- Services to third parties 1 7,6 47 1,704 15,943 n.s. \- Services to subsidiaries 253,533 261,274 (7,741) (3.0%) \- Services to associates 38 219 (181) (82.6%) \- Services to parent companies 2,267 3,634 (1,367) (37.6%) Total revenues from services 273,485 266,831 6,654 2.5% Total revenues from the sale of goods and services 8,700,014 11,045,994 (2,345,980) (21.2%) Other operating income 52,802 16,447 36,355 n.s. Total revenues 8,752,816 11,062,441 (2,309,625) (20.9%) “Sales revenues”, which amounted to 8,426,529 thousand euro and show a decrease of 2,352,634 thousand euro compared to the previous year, mainly refer to the sale of electricity (5,340,841 thousand euro) to wholesalers and institutional operators (Gestore Mercato Elettrico S.p.A. and Terna S.p.A.), also through sales on the IPEX markets (Italian Power Exchange), as well as to subsidiaries and associates for a total of 23,564 million kWh (+8% compared to December 31, 2023); to the sale of gas and fuel to third parties and subsidiaries (2,825,618 thousand euro) from the commercialization of 4,824 million cubic meters of gas (-3% compared to the previous year); to the sale of heat (1,099 thousand euro), materials and plants to both third parties and subsidiaries (9,106 thousand euro); and to the sale of environmental certificates to third parties and subsidiaries (249,865 thousand euro). The decrease in sales revenues is mainly due to the decrease in prices in the wholesale markets for both electricity and gas, as well as lower revenues from the sales of CO 2 , due both to the price effect and the reduced operation of the thermoelectric plants managed by A2A S.p.A. through tolling contracts. “Revenues from services” amount to 273,485 thousand euro and mainly relate to revenues from provisions to subsidiaries of administrative, fiscal, legal, managerial and technical services, and revenues from the Municipality of Milan for the video surveillance service. 68 A2A Separate financial statements 2024 Notes “Other operating income”, standing at 52,802 thousand euro (16,447 thousand euro as of December 31, 2023), have increased compared to the previous year mainly due to the restoration of the feed- in tariff incentive mechanism. In 2023, these incentives amounted to zero because the PUN 2022 exceeded the 180 euro/MWh threshold set by the GRIN incentive calculation formula, as well as the consideration granted by EP Produzione as the designee for dispatching of the Scandale plant for the year 2024. 24) Operating expenses “Operating expenses” totaled 7,880,842 thousand euro (10,448,524 thousand euro at December 31, 2023). The main components of this item are as follows: thousands of euro 12 31 2024 12 31 2023 Change Percentage change Costs for raw materials and consumables 6,825,884 9,218,057 (2,392,173) (26.0%) Costs for services 478,458 572,789 (94,331) (16.5%) Total expenses for raw materials and services 7,304,342 9,790,846 (2,486,504) (25.4%) Other operating expenses 576,500 6 57,6 78 (81,178) (12.3%) Total operating expenses 7,880,842 10,448,524 (2,567,682) (24.6%) Notes Separate financial statements 2024 A2A 69 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors The following table sets out details of the more significant components: thousands of euro 12 31 2024 12 31 2023 Change Percentage change Purchases of electricity of which: 3,578,199 4,173,294 (595,095) (14.3%) \- third-party suppliers 3,152,453 3,745,617 (593,164) (15.8%) \- subsidiaries 416,948 427,592 (10,644) (2.5%) \- associates 8,798 85 8,713 n.s. Purchases of gas of which: 3,035,160 4,316,978 (1,281,818) (29.7%) \- third-party suppliers 3,030,505 4,302,414 (1,271,909) (29.6%) \- subsidiaries 4,655 14,564 (9,909) (68.0%) Purchases of fuel of which: 5,243 36,251 (31,008) (85.5%) \- third-party suppliers 5,236 36,239 (31,003) (85.6%) \- subsidiaries 7 12 (5) (41.7%) Change in inventories of fuel (12,678) 206,633 (219,311) n.s. Purchases of heat of which: 549 660 (111) (16.8%) \- subsidiaries 549 660 (111) (16.8%) Purchases of water of which: 129 126 3 2.4% \- third-party suppliers 54 48 6 12.5% \- subsidiaries 75 78 (3) (3.8%) Purchases of materials of which: 13,597 12,296 1,301 10.6% \- third-party suppliers 13,590 12,291 1,299 10.6% \- subsidiaries 7 5 2 40.0% Change in inventories of materials (2,686) 24 (2,710) n.s. Hedging losses on operating derivatives 1,148 7, 2 9 1 (6,143) (84.3%) Hedging gains on operating derivatives (4,889) (4,708) (181) 3.8% Purchases of emission certificates and allowances of which: 212,112 469,212 (257,100) (54.8%) \- third-party suppliers 205,443 460,811 (255,368) (55.4%) \- subsidiaries 6,669 8,401 (1,732) (20.6%) Total costs for raw materials and consumables 6,825,884 9,218,057 (2,392,173) (26.0%) Delivery and transmission costs of which: 254,855 356,433 (101,578) (28.5%) \- third-party suppliers 230,168 330,929 (100,761) (30.4%) \- subsidiaries 24,687 25,504 (817) (3.2%) Maintenance and repairs 28,411 58,271 (29,860) (51.2%) Services of which: 195,192 158,085 37,107 23.5% \- third-party suppliers 164,270 131,568 32,702 24.9% \- subsidiaries 30,922 26,517 4,405 16.6% Total costs for services 478,458 572,789 (94,331) (16.5%) Total costs for raw materials and services 7,304,342 9,790,846 (2,486,504) (25.4%) Leaseholds of which: 394,028 554,652 (160,624) (29.0%) \- third-party suppliers 21,070 39,115 (18,045) (46.1%) \- subsidiaries 347,666 449,531 (101,865) (22.7%) \- associates 25,292 66,006 (40,714) (61.7%) Other operating expenses 182,472 103,026 79,446 7 7.1 % Total other operating expenses 576,500 6 57,678 (81,178) (12.3%) Total operating expenses 7,880,842 10,448,524 (2,567,682) (24.6%) 70 A2A Separate financial statements 2024 Notes “Costs for raw materials and services” amounted to 7,304,342 thousand euro (9,790,846 thousand euro at December 31, 2023). “Costs for raw materials and consumables” amounted to 6,825,884 thousand euro and refer to the costs for the purchase of energy, fuel, and heat (6,619,151 thousand euro) from third parties and subsidiaries, both for electricity production and for resale to customers and wholesalers, the reduction of which derives mainly from the decrease in unit procurement prices due to the reduction in the reference scenario; the change in fuel inventories (-12,678 thousand euro), which is affected by the scenario effect that had significantly impacted the reopening of initial inventories in January 2023; expenses/income from hedging on derivatives (-3,741 thousand euro); the purchase of materials and water (11,040 thousand euro including the change in inventories); as well as the purchase of environmental certificates (212,112 thousand euro), whose reduction is affected by the lower unit cost of supply and by the lower purchases of CO 2 due to the lower volumes emitted, correlated to the lower thermoelectric production. “Service costs” amounted to 478,458 thousand euro and relate to the logistics costs for transport on the natural gas network (254,855 thousand euro), costs for maintenance and repairs (28,411 thousand euro) related to both the plants and information systems of the company, as well as costs for services from third parties and subsidiaries and associates (195,192 thousand euro) that include costs for administrative and technical professional services, costs for certification activities, gas storage costs, expenses for insurance, monitoring, banking and other services. The decrease compared to the previous year is mainly due to lower costs for the transportation and storage of natural gas and maintenance costs, partly offset by higher costs for IT services related to the development of new projects. “Other operating expenses” amounted to 576,500 thousand euro (657,678 thousand euro at December 31, 2023). This item includes the use of third-party assets for 394,028 thousand euro mainly relating to the contracting of thermoelectric production plants “tolling agreement” owned by the subsidiaries A2A Energiefuture S.p.A. and A2A gencogas S.p.A. and costs related to the use of part of a portion of the electricity capacity of Ergosud S.p.A.. Other costs amounted to 182,472 thousand euro and refer to public water derivation fees, damages and penalties and contingent liabilities. During the year, the Company paid 3,000 thousand euro in donations to the AEM and ASM and LGH Foundations. Trading margin thousands of euro 12 31 2024 12 31 2023 Change Percentage change Revenues 5,811,050 8,599,585 (2,788,535) (32.4%) Operating expenses (5,763,359) (8,538,343) 2,774,984 (32.5%) Total trading margin 47,69 1 61,242 (13,551) (22.1%) The trading margin was positive for 47,691 thousand euro, a decrease of 13,551 thousand euro compared to December 31, 2023. Throughout 2024, the market demonstrated a continuation of the trend of price stabilization already observed in 2023, with less volatility than in previous years. This dynamic was influenced by several factors, including a consistent supply of Liquefied Natural Gas and a moderate energy demand, following climatic conditions that limited consumption peaks. Therefore, the reduced market volatility decreased the absolute value of profits captured from trading activities, despite the continued flow intermediation, price quoting, and market making. Notes Separate financial statements 2024 A2A 71 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 25) Labor costs At December 31, 2024, personnel costs, net of capitalized charges, totaled 206,233 thousand euro (195,727 thousand euro at December 31, 2023); the increase for the year includes the effect linked to contractual renewals, as well as to remuneration policy actions. “Labor costs” may be analyzed as follows: thousands of euro 12 31 2024 12 31 2023 Change Percentage change Wages and salaries 133,422 127,733 5,689 4.5% Social security charges 42,130 40,213 1,917 4.8% Employee leaving entitlement (TFR) 8,113 7,899 214 2.7% Other costs 29,193 25,550 3,643 14.3% Total labor costs before capitalizations 212,858 201,395 11,463 5.7% Capitalized labor costs (6,625) (5,668) (957) 16.9% Total labor costs 206,233 195,727 10,506 5.4% The table below shows the average number of employees during the period, broken down by category: thousands of euro 12 31 2024 12 31 2023 Change Managers 113 107 6 Middle Managers 430 411 19 White-collar workers 1,311 1,378 (67) Blue-collar workers 143 149 (6) Total 1,997 2,045 (48) At December 31, 2024, A2A S.p.A. employees totaled 2,079, while at December 31, 2023, they were equal to 1,893. The item also includes the remuneration paid by A2A S.p.A. to the members of the Board of Directors in the period for a total of 1,760 thousand euro; for further details, reference is made to the specific file “Remuneration Report - 2025”. “Other personnel costs” amounting to 29,193 thousand euro (25,550 thousand euro at December 31, 2023) include costs relating to the overall expense relating to the company restructuring plan related to future employee leaving for mobility for 4,742 thousand euro. 26) Gross operating income In light of the dynamics explained above, the “Gross operating income” was positive for 665,741 thousand euro (positive for 418,190 thousand euro at December 31, 2023). 72 A2A Separate financial statements 2024 Notes 27) Depreciation, amortization, provisions and write-downs “Depreciation, amortization, provisions and write-downs” equaled 193,120 thousand euro (182,245 thousand euro at December 31, 2023). The following table provides details of the individual items: thousands of euro 12 31 2024 12 31 2023 Change Percentage change Amortization of intangible assets 57,1 7 3 45,955 11,218 24.4% Depreciation of tangible assets 106,606 87, 4 7 7 19,129 21.9% Net write-downs of fixed assets 492 68 424 n.s. Total depreciation, amortization, provisions and write-downs 164,271 133,500 30,771 23.0% Provisions for risks 30,865 43,684 (12,819) (29.3%) Bad debt provision on receivables recognized as current assets (2,016) 5,061 ( 7,0 7 7 ) n.s. Total depreciation, amortization, provisions and write-downs 193,120 182,245 10,875 6.0% In particular, “Depreciation and Amortization” totaled 163,779 thousand euro (133,432 thousand euro at December 31, 2023). The increase compared to December 31, 2023 results from the combined effect of higher depreciation and amortization for capital expenditures, net of the decrease associated with disposals during the period and fixed assets that completed their depreciation and amortization process in the prior year. Depreciation is calculated on the basis of technical and economic rates considered representative of the remaining useful life of the related tangible assets. At December 31, 2024, write-downs of fixed assets amounted to 492 thousand euro (68 thousand euro at December 31, 2023) and mainly refer to assets no longer functional to the company’s activity. The item “Provisions for risks” shows a net effect of 30,865 thousand euro (43,684 thousand euro at December 31, 2023) due to allocations of 32,778 thousand euro, offset by the 1,913 thousand euro of risk provisions made in previous years and released in the current year since the original disputes have ceased to exist. The provisions, after accounting for the releases for the year, pertained to “Other provisions for risks” primarily related to public water derivation fees. For further details, reference is made to note 17) Provisions for risks, charges and liabilities for landfills. The “Bad debt provision” showed a positive balance of 2,016 thousand euro (negative for 5,061 thousand euro at December 31, 2023) and is related to the surpluses identified during the year under review. 28) Net operating income The “Net operating income” is positive by 472,621 thousand euro (235,945 thousand euro at December 31, 2023). 29) Result from non-recurring transactions The “Result from non-recurring transactions” stands at zero, whereas it amounted to 1,790 thousand euro in the previous year, attributed to the capital gain from the sale of a land parcel in the Bovisa area within the Municipality of Milan. Notes Separate financial statements 2024 A2A 73 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 30) Financial balance “Financial balance” reported a positive balance of 479,506 thousand euro (positive for 337,639 thousand euro at December 31, 2023) as follows: thousands of euro 12 31 2024 12 31 2023 Change Percentage change Financial income 651,696 520,117 131,579 25.3% Financial expenses 172,190 182,478 (10,288) (5.6%) Total financial balance 479,506 337,639 141,867 42.0% Financial income thousands of euro 12 31 2024 12 31 2023 Change Percentage change Income on derivatives: 4,701 - 4,701 n.s. \- realized on financial derivatives 4,701 - 4,701 n.s. Gains on disposals of financial assets 6 6,190 (6,184) 99.9% Income from financial assets: 646,989 513,927 133,062 25.9% Income from dividends: 395,694 283,208 112,486 39.7% \- subsidiaries 395,398 283,208 112,190 39.6% \- associates 296 - 296 n.s. Income on receivables/securities recorded as current assets: 251,236 229,659 21,577 9.4% \- subsidiaries 204,371 173,847 30,524 17.6% \- associates 170 92 78 84.8% \- third parties of which: 46,695 55,720 (9,025) (16.2%) \- on bank accounts 45,667 55,588 (9,921) (17.8%) \- discounting income - 63 (63) (100.0%) \- on other receivables 1,028 69 959 n.s. Foreign exchange gains 59 1,060 (1,001) (94.4%) Total financial income 651,696 520,117 131,579 25.3% “Financial income” totaled 651,696 thousand euro (520,117 thousand euro at December 31, 2023) and is composed as follows: • income from financial derivatives amounting to 4,701 thousand euro (no value as of December 31, 2023) reflects the positive “realized” results for the year; • gains on the disposal of financial assets amounting to 6 thousand euro (6,190 thousand euro at December 31, 2023); which in the previous year, related to the gain realized on the sale of the shareholding in Yada Energia S.r.l. to the subsidiary A2A Energia S.p.A.; • income from dividends in the amount of 395,694 thousand euro (283,208 thousand euro at December 31, 2023) related to dividends distributed by subsidiaries for 395,398 thousand euro, and associates for 296 thousand euro; • income from receivables/securities recognized under current assets for 251,236 thousand euro (229,659 thousand euro at December 31, 2023). This primarily regards interest to subsidiaries accrued on current accounts and intra-group loans totaling 204,371 thousand euro, financial income from associates of 170 thousand euro, interest on bank deposits and interest on sundry receivables of 46,695 thousand euro; • foreign exchange gains for 59 thousand euro (1,060 thousand euro at December 31, 2023). 74 A2A Separate financial statements 2024 Notes Financial expenses thousands of euro 12 31 2024 12 31 2023 Change Percentage change Expenses on derivatives: - 59 (59) (100.0%) \- realized on financial derivatives - 59 (59) (100.0%) Write-downs/losses of financial assets: 10 207 (197) (95.2%) \- third parties 10 207 (197) (95.2%) Expenses on financial assets: 172,180 182,212 (10,032) (5.5%) \- subsidiaries 11,905 10,384 1,521 14.6% \- associates 2 8 (6) (75.0%) \- third parties of which: 160,273 171,820 (11,547) (6.7%) \- interest on bond loans 111,850 123,675 (11,825) (9.6%) \- interest charged by banks 39,020 35,974 3,046 8.5% \- decommissioning charges 138 135 3 2.2% \- discounting charges 3,996 4,902 (906) (18.5%) \- financial expenses IFRS16 588 530 58 10.9% \- other expenses 4,555 5,755 (1,200) (20.9%) \- foreign exchange losses 126 849 (723) (85.2%) Total financial expenses before capitalizations 172,190 182,478 (10,288) (5.6%) Total financial expenses 172,190 182,478 (10,288) (5.6%) “Financial expenses” amounted to 172,190 thousand euro (182,478 thousand euro in 2023) and referred to: • to charges on financial derivatives that did not have any value, while at the end of the previous year, they amounted to 59 thousand euro and referred to the “realized” negatives of the year; • write-downs of financial fixed assets for 10 thousand euro (207 thousand euro at December 31, 2023), which refer to the write-down of the shareholding in Visano Società Trattamento Reflui S.c.a.r.l. in liquidation; • other expenses from financial liabilities amounting to 172,180 thousand euro (182,212 thousand euro at December 31, 2023), broken down as follows: • interest charged by subsidiaries in the amount of 11,905 thousand euro (10,384 thousand euro at December 31, 2023) for financial expenses accrued on intra-group accounts; • interest charged by associates for 2 thousand euro (8 thousand euro at December 31, 2023); • other financial expenses for 160,273 thousand euro (171,820 thousand euro at December 31, 2023), which essentially relate to interest on bonds, interest on loans and on the revolving credit lines used with various banks and other financial expenses. The nature and content of derivatives are described in the section “Other information”. Notes Separate financial statements 2024 A2A 75 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 31) Income taxes thousands of euro 12 31 2024 12 31 2023 Change Percentage change Current IRES 143,271 86,541 56,730 65.6% Current IRAP 30,981 18,416 12,565 68.2% Effect of differences - taxes of previous years (1,777) 1,280 (3,057) n.s. Total current taxes 172,475 106,237 66,238 62.3% Deferred tax assets IRES 4,847 507 4,340 n.s. Deferred tax assets IRAP 4,317 (2,573) 6,890 n.s. Deferred tax assets 9,164 (2,066) 11,230 n.s. Deferred tax liabilities IRES ( 1 7, 8 75 ) (16,797) (1,078) 6.4% Deferred tax liabilities IRAP (21) (21) - 0.0% Deferred tax liabilities (17,896) (16,818) (1,078) 6.4% Total income taxes 163,743 87,353 76,390 87.4 % It is noted that for IRES purposes, the company filed for tax on a consolidated basis, together with its main subsidiaries, in accordance with articles 117-129 of DPR 917/86. To this end, a contract has been entered into with each of the subsidiaries to regulate the tax benefits and burdens transferred, with specific reference to current items. The deferred tax assets and liabilities calculated when determining the subsidiaries’ taxable income, again only for IRES purposes, are not transferred to the parent company, A2A S.p.A., but are recognized in the income statement of the individual subsidiary each time there is an effective divergence between net income calculated for tax reporting purposes and net income calculated for financial reporting purposes due to any temporary differences. The deferred tax assets and liabilities shown in the income statement of A2A are therefore calculated exclusively on the divergences between its income for taxable purposes and income for financial reporting purposes. Current income tax (IRES) of A2A S.p.A. is calculated on its own taxable income net of the adjustments relating to the national tax consolidation filing, in accordance with appendix E of accounting standard OIC 25 of August 2014. In compliance with accounting standard OIC 25, the “income/expense related to consolidation”, which constitute the remuneration/counter-entry for the transfer to the parent company A2A of a tax loss or taxable income, are recognized in the balance sheet. The total amount of IRAP was determined based on the net value of production, suitably adjusted by the increases and decreases required by tax legislation. In compliance with Article 4(2) of Legislative Decree No. 446, IRAP was calculated on the basis of the territorial distribution of the taxable base according to the region of production: Lombardy, Calabria, Lazio, Piedmont, Abruzzo, Apulia and Sardinia (rate 5.57%), Campania (rate 5.72%), Friuli-Venezia Giulia, Emilia-Romagna, Sicily and the Autonomous Province of Trento (rate 4.65%). The deferred tax assets and liabilities for IRAP purposes are booked to the income statement so as to show the total tax charge for the year, taking into account the tax effects of temporary differences. The recoverability of the “IRES deferred tax assets” recorded in the financial statements is considered probable, as the future plans provide for IRES taxable income sufficient for the absorption of the temporary differences that will be reversed; on the other hand, deferred tax assets and liabilities recorded for IRAP purposes are those considered adequate with respect to the best forecast of absorption from future taxable income. No items have been excluded from the calculation of deferred taxation for IRES or IRAP purposes, with the exceptions highlighted above, and deferred tax liabilities and assets are recognized according to the balance sheet method. 76 A2A Separate financial statements 2024 Notes At December 31, 2024, income taxes for the year (IRES and IRAP), amounted to 163,743 thousand euro (87,353 thousand euro at the end of the previous year) and were made up as follows: • 147,178 thousand euro in current IRES of the period; • -6,703 thousand euro for remuneration for the transfer of interest payable to the tax consolidation system; • 3,628 thousand euro for transfer to Equity reserve of part of the IRES taxes for the year; • -832 thousand euro for the recognition of tax receivables on “art bonus” disbursements; • 30,668 thousand euro in current IRAP of the period; • 313 thousand euro for transfer to Equity reserve of part of the IRAP taxes for the year; • -1,777 thousand euro related to taxes of previous years; • -17,875 thousand euro for deferred tax liabilities for IRES purposes; • -21 thousand euro for deferred tax liabilities for IRAP purposes; • 4,847 thousand euro in deferred tax assets for IRES purposes; • 4,317 thousand euro in deferred tax assets for IRAP purposes. The main temporary increases for IRES purposes include: • reversals for non-deductible amortization for 39,609 thousand euro; • reversals for non-deductible provisions for risks for 50,012 thousand euro; • the recovery equal to 1/5 of the amount of the tax capital gain realized on the sale of the properties located in Milan in Corso di Porta Vittoria (Signora), in Via Gonin and in Via Balduccio da Pisa (Orobia), which were sold in the month of February 2022, for 34,470 thousand euro. The main permanent increases for IRES purposes include the reversals for expenses for cars, telephone costs and fines non-deductible for 3,672 thousand euro. Among the main decreases are: • the change for the non-taxable portion (95%) of dividends received during the year in the amount of 375,909 thousand euro; • the decreases relating to the depreciation of assets for tax purposes, related to symmetrical increases in previous years due to the allocation in the financial statements of statutory depreciation rates higher than those allowed for tax purposes in application of the limits set forth in Art. 102, paragraph 2 of the TUIR, for 23,166 thousand euro. Notes Separate financial statements 2024 A2A 77 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Reconciliation between the statutory tax rate and the effective tax rate for IRES and IRAP purposes are presented in the statements below. IRES - RECONCILIATION BETWEEN STATUTORY AND EFFECTIVE TAXATION Pre-tax result 952,127,525 Theoretical tax expense 24.00 % 228,510,606 Permanent differences (382,144,032) Income before taxes adjusted for permanent differences 569,983,493 Current gains/losses on income for the year 136,796,038 Temporary differences deductible in subsequent years 68,932,461 Temporary differences taxable in subsequent years 204,209 Reversal of temporary differences ( 2 5, 8 7 7,1 5 6 ) Taxable amount 613,243,007 Current gains/losses on income for the year 147,178,322 IRAP - RECONCILIATION BETWEEN STATUTORY AND EFFECTIVE TAXATION Difference between production value and costs 777,608,088 Costs not relevant for IRAP purposes (237,615,589) Total 539,992,499 Theoretical tax expense 5.55 % (*) 29,988,175 Temporary differences deductible in subsequent years 50,646,460 Temporary differences taxable in subsequent years - Reversal of prior year temporary differences (38,403,150) Taxable income for IRAP purposes 552,235,809 Current IRAP on income for the year 30,668,100 (*) average IRAP rate 78 A2A Separate financial statements 2024 Notes Details are provided below on the analytic situation of the deferred tax assets and liabilities which, as required by international accounting standards, also shows the changes in equity reserves. Taxable temporary differences Case description amounts in euro Previous year Non- recurring transactions Deferred taxes previous year Adjustments (+/-) Uses in current year Sub-total Changes in tax rate Increases for the year Shareholders’ equity Total deferred tax liabilities Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Value differences of tangible assets 224,135,110 - 224,135,110 24% 53,792,427 199 24% 48 55,778,387 24% 13,386,813 168,356,922 24% 40,405,661 168,356,922 24% 40,405,661 0 24% 0 0 24% 0 168,356,922 24% 40,405,661 Value differences of intangible assets 12,232,329 - 12,232,329 24% 2,935,759 (10,198,395) 24% (2,447,615) 371,875 24% 89,250 1,662,059 24% 398,894 1,662,059 24% 398,894 204,209 24% 49,010 0 24% 0 1,866,268 24% 447,904 Other deferred tax liabilities 16,073,171 - 16,073,171 24% 3,857,561 (667,408) 24% (160,178) 7,6 6 8 , 5 3 5 24% 1,840,448 7,73 7, 2 2 8 24% 1,856,935 7,737, 2 2 8 24% 1,856,935 0 24% 0 21,254,546 24% 5,101,091 28,991,774 24% 6,958,026 Total 252,440,610 - 252,440,610 60,585,747 (10,865,604) (2,607,745) 63,818,797 15,316,511 177,756,209 42,661,490 177,756,209 42,661,490 204,209 49,010 21,254,546 5,101,091 199,214,964 47,811,591 Deductible temporary differences Case description amounts in euro Previous year Non- recurring transactions Deferred taxes previous year Adjustments (+/-) Uses in current year Sub-total Changes in tax rate Increases for the year Shareholders’ equity Total deferred tax assets Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxed risk provisions 274,071,378 - 274,071,378 24% 65,777,131 786,854 24% 188,845 38,158,650 24% 9,158,076 236,699,582 24% 56,807,900 236,699,582 24% 56,807,900 38,458,458 24% 9,230,030 0 24% 0 275,158,040 24% 66,037,930 Amortization, depreciation and write-downs 161,817,309 - 161,817,309 24% 38,836,154 0 24% 0 23,165,936 24% 5,559,825 138,651,373 24% 33,276,329 138,651,373 24% 33,276,329 18,401,367 24% 4,416,328 0 24% 0 157,052,740 24% 37,692,658 Application of the financial instrument standard (IAS 39) 10,702,871 - 10,702,871 24% 2,568,689 0 24% 0 0 24% 0 10,702,871 24% 2,568,689 10,702,871 24% 2,568,689 0 24% 0 6,796,837 24% 1,631,241 17,499,708 24% 4,199,930 Bad debt provision 8,453,028 - 8,453,028 24% 2,028,727 0 24% 0 3,684,712 24% 884,331 4,768,316 24% 1,144,396 4,768,316 24% 1,144,396 0 24% 0 0 24% 0 4,768,316 24% 1,144,396 Goodwill 125,345,257 - 125,345,257 24% 30,082,862 (1) 24% 0 23,899,894 24% 5,735,975 101,445,362 24% 24,346,887 101,445,362 24% 24,346,887 0 24% 0 0 24% 0 101,445,362 24% 24,346,887 Other deferred tax assets 2,645,931 - 2,645,931 24% 635,023 (214,071) 24% (51,377) 793,761 24% 190,503 1,638,099 24% 393,144 1,638,099 24% 393,144 12,072,636 24% 2,897,433 (362,805) 24% (8 7,07 3 ) 13,347,930 24% 3,203,503 Total 583,035,774 - 583,035,774 139,928,586 572,782 1 37, 4 6 8 89,702,953 21,528,710 493,905,603 118,537,345 493,905,603 118,537,345 68,932,461 16,543,791 6,434,032 1,544,168 569,272,096 136,625,304 IRES - Deferred tax assets and liabilities for the year Notes Separate financial statements 2024 A2A 79 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Taxable temporary differences Case description amounts in euro Previous year Non- recurring transactions Deferred taxes previous year Adjustments (+/-) Uses in current year Sub-total Changes in tax rate Increases for the year Shareholders’ equity Total deferred tax liabilities Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Value differences of tangible assets 224,135,110 - 224,135,110 24% 53,792,427 199 24% 48 55,778,387 24% 13,386,813 168,356,922 24% 40,405,661 168,356,922 24% 40,405,661 0 24% 0 0 24% 0 168,356,922 24% 40,405,661 Value differences of intangible assets 12,232,329 - 12,232,329 24% 2,935,759 (10,198,395) 24% (2,447,615) 371,875 24% 89,250 1,662,059 24% 398,894 1,662,059 24% 398,894 204,209 24% 49,010 0 24% 0 1,866,268 24% 447,904 Other deferred tax liabilities 16,073,171 - 16,073,171 24% 3,857,561 (667,408) 24% (160,178) 7,6 6 8 , 5 3 5 24% 1,840,448 7,73 7, 2 2 8 24% 1,856,935 7,737, 2 2 8 24% 1,856,935 0 24% 0 21,254,546 24% 5,101,091 28,991,774 24% 6,958,026 Total 252,440,610 - 252,440,610 60,585,747 (10,865,604) (2,607,745) 63,818,797 15,316,511 177,756,209 42,661,490 177,756,209 42,661,490 204,209 49,010 21,254,546 5,101,091 199,214,964 47,811,591 Deductible temporary differences Case description amounts in euro Previous year Non- recurring transactions Deferred taxes previous year Adjustments (+/-) Uses in current year Sub-total Changes in tax rate Increases for the year Shareholders’ equity Total deferred tax assets Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxed risk provisions 274,071,378 - 274,071,378 24% 65,777,131 786,854 24% 188,845 38,158,650 24% 9,158,076 236,699,582 24% 56,807,900 236,699,582 24% 56,807,900 38,458,458 24% 9,230,030 0 24% 0 275,158,040 24% 66,037,930 Amortization, depreciation and write-downs 161,817,309 - 161,817,309 24% 38,836,154 0 24% 0 23,165,936 24% 5,559,825 138,651,373 24% 33,276,329 138,651,373 24% 33,276,329 18,401,367 24% 4,416,328 0 24% 0 157,052,740 24% 37,692,658 Application of the financial instrument standard (IAS 39) 10,702,871 - 10,702,871 24% 2,568,689 0 24% 0 0 24% 0 10,702,871 24% 2,568,689 10,702,871 24% 2,568,689 0 24% 0 6,796,837 24% 1,631,241 17,499,708 24% 4,199,930 Bad debt provision 8,453,028 - 8,453,028 24% 2,028,727 0 24% 0 3,684,712 24% 884,331 4,768,316 24% 1,144,396 4,768,316 24% 1,144,396 0 24% 0 0 24% 0 4,768,316 24% 1,144,396 Goodwill 125,345,257 - 125,345,257 24% 30,082,862 (1) 24% 0 23,899,894 24% 5,735,975 101,445,362 24% 24,346,887 101,445,362 24% 24,346,887 0 24% 0 0 24% 0 101,445,362 24% 24,346,887 Other deferred tax assets 2,645,931 - 2,645,931 24% 635,023 (214,071) 24% (51,377) 793,761 24% 190,503 1,638,099 24% 393,144 1,638,099 24% 393,144 12,072,636 24% 2,897,433 (362,805) 24% (8 7,07 3 ) 13,347,930 24% 3,203,503 Total 583,035,774 - 583,035,774 139,928,586 572,782 1 37, 4 6 8 89,702,953 21,528,710 493,905,603 118,537,345 493,905,603 118,537,345 68,932,461 16,543,791 6,434,032 1,544,168 569,272,096 136,625,304 80 A2A Separate financial statements 2024 Notes Taxable temporary differences Case description amounts in euro Previous year Non- recurring transactions Deferred taxes previous year Adjustments (+/-) Uses in current year Sub-total Changes in tax rate Increases for the year Shareholders’ equity Total deferred tax liabilities Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Value differences of tangible assets 479,223 - 479,223 5.57% 26,692 (172) 5.57% (10) 0 5.57% 0 479,051 5.57% 26,683 479,051 5.57% 26,683 0 5.57% 0 0 5.57% 0 479,051 5.57% 26,683 Value differences of intangible assets 1,863,905 - 1,863,905 5.57% 103,820 0 5.57% 0 372,093 5.57% 20,726 1,491,813 5.57% 83,094 1,491,813 5.57% 83,094 0 5.57% 0 0 5.57% 0 1,491,813 5.57% 83,094 Other deferred tax liabilities 0 - 0 5.57% 0 0 5.57% 0 0 5.57% 0 0 5.57% 0 0 5.57% 0 0 5.57% 0 21,341,702 5.57% 1,188,733 21,341,702 5.57% 1,188,733 Total 2,343,128 - 2,343,128 130,512 (172) (10) 372,093 20,726 1,970,864 109,777 1,970,864 109,777 0 0 21,341,702 1,188,733 23,312,566 1,298,510 IRAP - Deferred tax assets and liabilities for the year Deductible temporary differences Case description amounts in euro Previous year Non- recurring transactions Deferred taxes previous year Adjustments (+/-) Uses in current year Sub-total Changes in tax rate Increases for the year Shareholders’ equity Total deferred tax assets Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxed risk provisions 269,176,720 - 269,176,720 5.57% 14,993,143 (89,152,761) 5.57% (4,965,809) 37,679,650 5.57% 2,098,756 142,344,310 5.57% 7,9 2 8 , 5 7 8 142,344,310 5.57% 7,9 2 8 , 578 38,458,458 5.57% 2,142,136 0 5.57% 0 180,802,767 5.57% 10,070,714 Amortization, depreciation and write-downs 1,989,952 - 1,989,952 5.57% 110,840 0 5.57% 0 1,024,237 5.57% 57,050 965,715 5.57% 53,790 965,715 5.57% 53,790 669,367 5.57% 37,284 0 5.57% 0 1,635,081 5.57% 91,074 Goodwill 18,688,104 - 18,688,104 5.57% 1,040,927 0 5.57% 0 0 5.57% 0 18,688,104 5.57% 1,040,927 18,688,104 5.57% 1,040,927 0 5.57% 0 0 5.57% 0 18,688,104 5.57% 1,040,927 Other deferred tax assets (5,577,482) - (5,577,482) 5.57% (310,666) (214,071) 5.57% (11,924) 71,357 5.57% 3,975 (5,862,910) 5.57% (326,564) (5,862,910) 5.57% (326,564) 11,518,636 5.57% 641,588 5,271,426 5.57% 293,618 1 0,9 2 7,1 5 3 5.57% 608,642 Total 284,277,294 - 284,277,294 15,834,245 (89,366,832) (4 ,97 7,7 3 3 ) 38,775,243 2,159,781 156,135,219 8,696,732 156,135,219 8,696,732 50,646,460 2,821,008 5,271,426 293,618 212,053,106 11,811,358 Notes Separate financial statements 2024 A2A 81 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Taxable temporary differences Case description amounts in euro Previous year Non- recurring transactions Deferred taxes previous year Adjustments (+/-) Uses in current year Sub-total Changes in tax rate Increases for the year Shareholders’ equity Total deferred tax liabilities Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Value differences of tangible assets 479,223 - 479,223 5.57% 26,692 (172) 5.57% (10) 0 5.57% 0 479,051 5.57% 26,683 479,051 5.57% 26,683 0 5.57% 0 0 5.57% 0 479,051 5.57% 26,683 Value differences of intangible assets 1,863,905 - 1,863,905 5.57% 103,820 0 5.57% 0 372,093 5.57% 20,726 1,491,813 5.57% 83,094 1,491,813 5.57% 83,094 0 5.57% 0 0 5.57% 0 1,491,813 5.57% 83,094 Other deferred tax liabilities 0 - 0 5.57% 0 0 5.57% 0 0 5.57% 0 0 5.57% 0 0 5.57% 0 0 5.57% 0 21,341,702 5.57% 1,188,733 21,341,702 5.57% 1,188,733 Total 2,343,128 - 2,343,128 130,512 (172) (10) 372,093 20,726 1,970,864 109,777 1,970,864 109,777 0 0 21,341,702 1,188,733 23,312,566 1,298,510 Deductible temporary differences Case description amounts in euro Previous year Non- recurring transactions Deferred taxes previous year Adjustments (+/-) Uses in current year Sub-total Changes in tax rate Increases for the year Shareholders’ equity Total deferred tax assets Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxable amount Rate Ta x Taxed risk provisions 269,176,720 - 269,176,720 5.57% 14,993,143 (89,152,761) 5.57% (4,965,809) 37,679,650 5.57% 2,098,756 142,344,310 5.57% 7, 9 2 8 , 578 142,344,310 5.57% 7,9 2 8 , 578 38,458,458 5.57% 2,142,136 0 5.57% 0 180,802,767 5.57% 10,070,714 Amortization, depreciation and write-downs 1,989,952 - 1,989,952 5.57% 110,840 0 5.57% 0 1,024,237 5.57% 57,050 965,715 5.57% 53,790 965,715 5.57% 53,790 669,367 5.57% 37,284 0 5.57% 0 1,635,081 5.57% 91,074 Goodwill 18,688,104 - 18,688,104 5.57% 1,040,927 0 5.57% 0 0 5.57% 0 18,688,104 5.57% 1,040,927 18,688,104 5.57% 1,040,927 0 5.57% 0 0 5.57% 0 18,688,104 5.57% 1,040,927 Other deferred tax assets (5,577,482) - (5,577,482) 5.57% (310,666) (214,071) 5.57% (11,924) 71,357 5.57% 3,975 (5,862,910) 5.57% (326,564) (5,862,910) 5.57% (326,564) 11,518,636 5.57% 641,588 5,271,426 5.57% 293,618 1 0,9 2 7,1 5 3 5.57% 608,642 Total 284,277,294 - 284,277,294 15,834,245 (89,366,832) (4 ,97 7,7 3 3 ) 38,775,243 2,159,781 156,135,219 8,696,732 156,135,219 8,696,732 50,646,460 2,821,008 5,271,426 293,618 212,053,106 11,811,358 82 A2A Separate financial statements 2024 Notes 32) Net result from operating assets sold/held for sale The “Net result from operating assets sold/held for sale” was zero, while in the previous year it amounted to 189 thousand euro and referred to the collection from Retragas S.r.l. of the portion due to A2A S.p.A. relating to the price adjustment of the sale of the Val Staffora BU carried out by Retragas to ROMEO GAS S.p.A.. 33) Net result of the year Profit, net of taxes for the year, amounted to 788,384 thousand euro (488,210 thousand euro at December 31, 2023). Notes Separate financial statements 2024 A2A 83 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 2.9 Note on related party transactions 34) Note on related party transactions The definition of “related parties” is included in the international accounting standard describing the disclosures, which must be made for related party transactions in financial statements (revised IAS 24). Relationships with parent companies and their subsidiaries On October 5, 2007, the Municipalities of Milan and Brescia signed a Shareholders’ Agreement to regulate the ownership structure of A2A S.p.A.; this gave the Municipalities joint control over the company. Specifically, the merger effective January 1, 2008, regardless of the legal structure established, was considered a joint venture, whose joint control was exercised by the Municipalities of Milan and Brescia, each of which owned a share equal to 27.5%. On June 13, 2014, the Shareholders’ Meeting modified the company’s governance system, passing from the original two-tier system, adopted in 2007, to a “traditional” system of management and control through the appointment of the Board of Directors. In December 2014, the Municipalities of Milan and Brescia sold a total shareholding of 0.51% of A2A S.p.A., while in the first two months of 2015, the Municipalities of Milan and Brescia sold an additional shareholding of 4.5% of A2A S.p.A.. On October 4, 2016, the Municipalities of Milan and Brescia renewed for another three years, with effect from January 1, 2017, the Shareholders’ Agreement signed on December 30, 2013, concerning 1,566,452,642 ordinary shares representing 50% plus two shares of the share capital of A2A S.p.A.. On May 20, 2016, the two Municipalities had proceeded to sign an appendix to the Agreement, which envisaged reducing from six months to three months the term of the agreement, during which it is possible to terminate the same. On October 26, 2016, the Municipality of Milan received from the Municipality of Brescia the proposal, approved by the Council of said Municipality on October 25, 2016, to partially amend the shareholders’ agreement relating to A2A S.p.A. existing between the two Municipalities. In particular, said proposal requires the commitment of the two Municipalities to maintain syndicated and bound, in the new agreement, a number of shares held by them in equal measure, equal to 42% of the share capital of A2A S.p.A.. On November 4, 2016, the Council of the Municipality of Milan, after having favorably examined the proposal of the Municipality of Brescia of a partial amendment to the shareholders’ agreement, submitted to the Municipal Council the proposal of the new shareholders’ agreement for the final determinations of competence. On January 23, 2017, the Milan City Council approved the new Shareholders’ Agreement between the Municipality of Milan and the Municipality of Brescia regarding the shareholding in A2A S.p.A. and has undertaken the commitment not to proceed with the disposal of any shares owned by the Municipality of Milan. On August 2, 2019, the Municipality of Milan, also on behalf of the Municipality of Brescia, announced that the aforementioned Shareholders’ Agreement was not subject to termination. Consequently, the agreement is to be considered renewed with effect from February 1, 2020 to January 31, 2023. On August 2, 2022, the Municipality of Milan, also on behalf of the Municipality of Brescia, announced that the aforementioned Shareholders’ Agreement was not subject to termination. Consequently, the agreement is to be considered renewed with effect from February 1, 2023 to January 31, 2026. At the date of approval of these Separate Financial Statements at December 31, 2024, each of the two shareholders hold 25% of the share capital plus one share (overall equal to 50% plus two shares), which allows the two municipalities to maintain control over the Company. 84 A2A Separate financial statements 2024 Notes The A2A Group companies and the Municipalities of Milan and Brescia routinely entertain commercial relationships related to the supply of electricity, gas, heat, and potable water, management of public lighting systems and street lights, management of water purification and sewers, garbage collection and street sweeping and video surveillance. Similarly, the A2A Group companies entertain commercial relationships with the companies controlled directly and indirectly by the Municipalities of Milan and Brescia, for example, Metropolitana Milanese S.p.A., ATM S.p.A., Brescia Mobilità S.p.A., Brescia Trasporti S.p.A. and Centrale del Latte di Brescia S.p.A., supplying them with electrical energy, gas, heat, water purification and sewer service at market rates appropriate to the supply conditions and providing the services required. Note that these companies are considered related parties in the preparation of the financial statement schedules pursuant to Consob Resolution 17221 of March 12, 2010. The relationships between the Municipalities of Milan and Brescia and the A2A Group, in relation to granting the services associated with public lighting, street lights, management and supply of electricity, gas, heat, and water purification and sewer service are regulated by special conventions and specific contracts. The relationships between the companies controlled by the Municipalities of Milan and Brescia, which refer to the supply of electricity, are at arm’s length conditions. In particular, on April 12, 2017, Amsa S.p.A., a subsidiary of A2A S.p.A., in execution of the original assignment ordered in 2001, signed a contract with the Municipality of Milan for the management of services aimed at environmental protection for the period from January 1, 2017 to February 8, 2021; then extended until 27 September 2024 due to the progress of the new tender procedure for the reallocation of the service and the litigation developed on it. This procedure, published on December 30, 2021 and concerning the assignment of the urban waste management service with reduced environmental impact from a life-cycle perspective, pursuant to the action plan for the environmental sustainability of consumption in the public administration sector (PAN GPP) and the Decree of the Ministry of the Environment and Protection of Land and Sea of February 13, 2014, was awarded to Amsa S.p.A. on March 29, 2024. The competitor, who placed second in the rankings, lodged an appeal with the Regional Administrative Court of Lombardy, Milan. Following a hearing on November 6, 2024, judgment no. 3681, dated December 16, 2024, dismissed the appeal, ordering the exclusion of this competitor from the tender and affirming the complete legitimacy of the award to Amsa S.p.A.. The first-instance applicant failed to submit an appeal against the sentence of the Regional Administrative Court by the deadline of January 16, 2025. Relationships with subsidiaries and associates The parent company A2A S.p.A., operates like a centralized treasury for the majority of the subsidiaries. Relations between the companies are regulated through current accounts between the parent company and the subsidiaries, on which rates are applied, at market conditions, based on variable Euribor, with specific spreads for companies. For the financial year 2024, A2A S.p.A. and its subsidiaries have adopted the VAT procedure of the Group. Note that for IRES purposes, A2A S.p.A. files for tax on a consolidated basis, together with its main subsidiaries, in accordance with arts. 117-129 of DPR 917/86. To this end, with each of the subsidiaries joining, a special contract was drawn up to regulate the tax advantages/disadvantages transferred, with specific reference to the current entries. These contracts also govern the transfer of any excess of ROL as set forth by prevailing legislation. The parent company provides the subsidiaries and associates with administrative, fiscal, legal, management and technical services in order to optimize the resources available in the company and to use the existing expertise in terms of economic convenience. These services are governed by specific service contracts stipulated annually. A2A S.p.A. also makes office space and operating areas at its own premises available to subsidiaries and associates, as well as associated services. These are provided at market conditions. The companies A2A gencogas S.p.A. and A2A Energiefuture S.p.A., for a monthly fee related to the Notes Separate financial statements 2024 A2A 85 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors actual availability of the thermoelectric plants, provide to the Parent Company the power generation service. As of July 1, 2018, the Acinque Group’s related-party transactions with related parties of the A2A Group are shown as related parties. As of November 1, 2020, the AEB Group’s related-party transactions with related parties of the A2A Group are shown as related parties. * * * The information on corporate governance and ownership structures required by article 123-bis of Legislative Decree no. 58/1998, as amended, is contained in a separate document ‘Report on Corporate Governance and Ownership Structures for the year ended December 31, 2024’ which forms an integral part of the financial statements documentation. In compliance with the requirements of the “Regulation on provisions relating to related party transactions” adopted by Consob with Resolution no. 17221 of March 12, 2010 and subsequently amended by Resolution no. 17389 of June 23, 2010, by way of a resolution of November 11, 2010 the Management Board approved, following the favorable opinion of the Internal Control Committee, the prescribed procedure for identifying the rules and controls designed to ensure the transparency and substantial and procedural correctness of the related party transactions carried out by A2A S.p.A. directly or through its subsidiaries. The aforementioned Procedure was applied effective January 1, 2011 and subsequently amended on August 1, 2012, November 7 and December 18, 2013 and June 22, 2015. Following a periodic review, the Procedure was subsequently amended/supplemented and approved by the Board of Directors on June 20, 2016, subject to the favorable opinion of the Audit and Risks Committee and then updated on June 22, 2017, in view of Consob Resolution no. 19925 of March 22, 2017 and on December 16, 2019, in view of the amendments to art. 192-quinquies of Legislative Decree no. 58 of February 24, 1998 (“TUF”) (art. 4 of Legislative Decree no. 49 of May 10, 2019). Following the Board of Directors’ decision on June 25, 2021, and with the approval of the Related Parties Committee established by the resolution on May 13, 2021, the Procedure was revised— effective from July 1, 2021—to align with the Related Parties Regulation, as altered by Consob Resolution no. 21624 on December 10, 2020, in accordance with the so-called ‘Shareholders’ Rights II’ Directive. Lastly, the Procedure was amended and supplemented on July 30, 2024 by the Board of Directors, effective from August 1, 2024, following a periodic review and with the approval of the Related Parties Committee, established by board resolution on May 11, 2023. The aforementioned procedure can be found on the website . The company has availed itself of the possibility permitted by article 70, paragraph 8 and article 71, paragraph 1-bis of the Issuers’ Regulations, and hence of derogating from the requirement to make an information document available to public in the event of significant mergers, spin-offs, share capital increases by means of the contribution of assets in kind, acquisitions and disposals. 86 A2A Separate financial statements 2024 Notes Below are the tables with detail of the related party transactions, in accordance with the Consob Resolution no. 17221 of March 12, 2010: Balance sheet thousands of euro Total 12 31 2024 Subsidiaries Associated/ related companies and subsidiaries of associates Municipality of Milan Companies controlled directly and indirectly Municipality of Milan Municipality of Brescia Companies controlled directly and indirectly Municipality of Brescia Related parties individuals Total related parties % effect on the balance sheet item Total assets of which: 15,930,506 11,243,746 9,089 214 3 118 \- \- 11,253,170 70.6% Non-current assets 7,103,985 5,900,723 5,366 18 \- \- \- \- 5,906,107 83.1% Tangible assets 872,997 29,973 29,973 3.4% Shareholdings 5,511,098 5,505,732 5,366 5,511,098 100.0% Other non-current financial assets 401,643 365,009 365,009 90.9% Other non-current assets 28,702 9 18 27 0.1% Current assets 8,826,521 5,343,023 3,723 196 3 118 \- \- 5,347,063 60.6% Trade receivables 1,956,696 983,611 3,723 196 3 118 987,651 50.5% Other current assets 1,117,181 157,609 157,609 14.1% Current financial assets 4,229,639 4,201,803 4,201,803 99.3% Total liabilities of which: 10,914,000 655,099 28,993 99 9 \- \- 54 684,254 6.3% Non-current liabilities 6,297,700 26,253 8,219 \- \- \- \- \- 34,472 0.5% Non-current financial liabilities 5,982,458 26,253 26,253 0.4% Provisions for risks, charges and liabilities for landfills 183,612 8,219 8,219 4.5% Current liabilities 4,616,300 628,846 20,774 99 9 \- \- 54 649,782 14.1% Trade payables 2,415,496 293,982 19,004 99 9 313,094 13.0% Other current liabilities 908,990 12,456 1,770 54 14,280 1.6% Current financial liabilities 1,202,973 322,408 322,408 26.8% Notes Separate financial statements 2024 A2A 87 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Income statement thousands of euro Total 12 31 2024 Subsidiaries Associated/ related companies and subsidiaries of associates Municipality of Milan Companies controlled directly and indirectly Municipality of Milan Municipality of Brescia Companies controlled directly and indirectly Municipality of Brescia Related parties individuals Total related parties % effect on the balance sheet item Revenues 8,752,816 4,982,539 9,600 2,284 \- 108 \- 10 4,994,541 57.1% Revenues from the sale of goods and services 8,700,014 4,976,943 9,596 2,284 (17) 10 4,988,816 57. 3 % Other operating income 52,802 5,596 4 125 5,725 10.8% Operating expenses 7,880,842 833,489 34,090 1,332 313 \- 16 290 869,530 11.0% Expenses for raw materials and services 7,304,342 484,519 8,798 313 16 290 493,936 6.8% Other operating expenses 576,500 348,970 25,292 1,332 375,594 65.2% Labor costs 206,233 \- \- \- \- \- \- 1,760 1,760 0.9% Amortization, depreciation, provisions and write-downs 193,120 6,729 \- \- \- \- \- \- 6,729 3.5% Financial balance 479,506 587,864 464 \- \- \- \- \- 588,328 n.s. Financial income 651,696 599,769 466 600,235 92.1% Financial expenses 172,190 11,905 2 11,907 6.9% Section 2 of this file provides complete schedules as required under Consob Resolution no. 17221 of March 12, 2010. It should be noted that during the year, A2A S.p.A. made grants totaling 3,891 thousand euro to foundations that have been included on a voluntary basis among related parties. Specifically, these involve: Fondazione AEM, Fondazione ASM, Fondazione LGH E.T.S., Comitato Banco dell’Energia Onlus, Fondazione Brescia Musei and Associazione Centro Teatrale Bresciano. * * * With regard to the compensation paid to the corporate governance bodies, reference shall be made to the document “Remuneration Report – 2025” available on the website . 88 A2A Separate financial statements 2024 Notes 2.10 Significant non-recurring events and transactions, pursuant to Consob Communication No. DEM/6064293 of July 28, 2006 35) Significant non-recurring events and transactions, pursuant to Consob Communication No. DEM/6064293 of July 28, 2006 On December 31, 2024, the acquisition of 90% of the shareholding in Duereti S.r.l. from E-distribuzione took effect, enabling the company to undertake power distribution activities in several municipalities within the provinces of Milan and Brescia, with an investment of roughly 1.2 billion euro. Notes Separate financial statements 2024 A2A 89 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 2.11 Guarantees and commitments with third parties thousands of euro 12 31 2024 12 31 2023 Guarantees received 396,129 341,681 Guarantees provided 355,423 540,555 Guarantees received Guarantees received amounted to 396,129 thousand euro (341,681 thousand euro at December 31, 2023) and include 71,815 million euro for sureties and security deposits issued by subcontractors to guarantee the proper execution of the work assigned and 324,314 thousand euro for sureties and security deposits received from customers to guarantee the regularity of payments. Guarantees provided and commitments with third parties Guarantees provided amounted to 355,423 thousand euro (540,555 thousand euro at December 31, 2023), of which for obligations undertaken in the loan agreements of 80 thousand euro. Said guarantees include bank sureties for 355,343 thousand euro and parent company guarantees for 80 thousand euro. 90 A2A Separate financial statements 2024 Notes 2.12 Other information 1) Significant events after December 31, 2024 Reference should be made to the specific section of this Report on Operations for a description of subsequent events. 2) Information on treasury shares A2A S.p.A. does not hold any treasury shares at December 31, 2024. At December 31, 2024, no treasury shares were held through subsidiaries, finance companies or nominees. 3) Information on non-current assets held for sale and discontinued operations (IFRS 5) The item “Non-current assets held for sale” as at December 31, 2024 had no value. 4) Rules on public funding (Compliance with art. 1, paragraphs 125 et seq. of Law 124/17) Pursuant to art. 1, paragraphs 125 and following Law 124/17, as reformulated by art. 35 of Decree Law 34/19, and considering that A2A S.p.A. (and its subsidiaries) have not received “subsidies, grants, advantages, contributions or aid, whether in cash or in kind, not general and with no consideration, remuneration or compensation”, this note is negative. This is without prejudice to the fact that other information is (also in the wake of the principle pursuant to art. 18 L. 241/1990) available elsewhere, also by virtue of the criterion set forth in paragraph 127 of the same art. 1 L. 124/17, which prescribes to “avoid the accumulation of irrelevant information”, as well as what is specified in paragraph 125 quinquies of the same art. 1 L. 124/17 by virtue of which “for State aid and de minimis aid contained in the National Register of State Aid referred to in article 52 of Law No. 234 of December 24, 2012, the registration of aid in the aforesaid system, with consequent publication in the transparency section provided therein, carried out by the entities granting or managing such aid pursuant to the relevant rules, takes the place of the publication obligations placed on the entities referred to in paragraphs 125 and 125-bis”. It should also be noted that the companies of the A2A Group operate (for the most part) in regulated sectors. Therefore, some sums are recognized by public bodies, not as subsidies/contributions, but as recognition of the activities they provide or as forms of compensation for costs incurred to meet specific regulatory obligations and in any case by virtue of a general regime. Also all these forms of payment have not been indicated: also in compliance with both the literal aspect of the regulations and with the interpretation criteria that the company has identified (see above). 5) Financial risk management The Parent Company, A2A S.p.A., provides centralized risk management for Group companies. The A2A Group operates in the electricity, natural gas and district heating industry and is exposed to various financial risks in performing its activity: a) commodity risk; b) interest rate risk; c) exchange rate risk not related to commodities; d) liquidity risk; e) credit risk; f) equity risk; g) default and covenant non-compliance risk. Notes Separate financial statements 2024 A2A 91 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors The commodity price risk, related to the volatility of energy commodity prices (gas, electricity, fuel oil, coal, etc.) and prices of environmental securities (EUA/ETS emission rights, white certificates, etc.), consists of the possible negative effects that a change in the market price of one or more commodities may have on the cash flows and income prospects of the company, including the exchange rate risk related to the same commodities. Interest rate risk is the risk of additional financial costs as the result of an unfavorable change in interest rates. Currency risk not related to commodities is the risk of higher costs or lower revenues because of an unfavorable change in exchange rates between currencies. Liquidity risk is the risk that financial resources will not be sufficient to meet established financial and business obligations in a timely manner. Credit risk is the exposure to potential losses deriving from non-performance of commitments by commercial, trading and financial counterparties. Equity risk is the possibility of incurring losses due to an unfavorable change in the price of shares. Default and covenant non-compliance risk represent the possibility that loan agreements or bond regulations to which one or more Group companies are party contain provisions allowing the counterparties, banks or bondholders, to ask the debtor for immediate reimbursement of the amounts lent if certain events take place. Details on the risks to which A2A S.p.A. is exposed are provided below. a. Commodity risk a.1) Commodity price risk and exchange rate risk involved in commodity activities A2A S.p.A. is exposed to price risk, including the related exchange rate risk, on all of the energy commodities that it handles, namely electricity, natural gas, heat, coal, fuel oil, and environmental certificates; the financial performance of production, purchasing and sales activities is affected by the related price fluctuations. These fluctuations act both directly and indirectly, through formulas and indexing in the pricing structure. To stabilize cash flows and to assure the Group’s economic and financial stability, A2A S.p.A. has an Energy Risk Policy that sets out clear guidelines to manage and control the above risks, based on guidance by the Committee of Chief Risk Officers Organizational Independence and Governance Working Group (“CCRO”) and the Group on Risk Management of Euroelectric. Reference was also made to the Accords of the Basel Committee on bank supervision and the requirements laid down in international accounting standards on how to recognize the volatility of commodity price and financial derivatives in the income statement and balance sheet. In the A2A Group, assessment of this kind of risk is centralized at the holding company, which has established a Group Risk Management Unit. This unit has the task to manage and monitor market and commodity risks, to create and evaluate structured products, to propose financial energy risk hedging strategies, and to support senior management in defining the Group’s energy risk management policies. Each year, the Board of Directors of A2A S.p.A. sets the Group’s commodity risk limits approving the PaR and VaR proposed (prepared in the Risk Committee) in conjunction with approval of the Budget/ Business Plan; Group Risk Management supervises the situation to ensure compliance with these limits and proposes to senior management the hedging strategies designed to bring risk within the set limits, if exceeded. The activities that are subject to risk management include all of the positions on the physical market for energy products, both purchasing/production and sales, and all of the positions in the energy derivatives market taken by Group companies. For the purpose of monitoring risks, industrial and trading portfolios have been separated and are managed in different ways. The industrial portfolio consists of the physical and financial contracts directly relating to the Group’s industrial operations, namely where the objective is to enhance production capacity also through the wholesaling and retailing of gas, electricity and heat. The trading portfolio comprises all contracts, both physical and financial, entered into to supplement the profits made from the industrial activities, i.e. all contracts that are ancillary though not strictly necessary to the industrial activity. In order to identify trading activity, the A2A Group follows the Capital Adequacy Directive and the 92 A2A Separate financial statements 2024 Notes definition of assets held for trading provided by International Accounting Standard (IFRS) 9: namely assets held for the purpose of short-term profit taking on market prices or margins, without being for hedging purposes, and designed to create a high-turnover portfolio. Given that they exist for different purposes, the two portfolios have been segregated and are monitored separately with specific tools and limits. More specifically, the trading portfolio is subject to particular risk control and management procedures as laid down in Deal Life Cycle documents. Senior management is systematically updated on changes in the Group’s commodity risk by the Group Risk Management Unit, which controls the Group’s net exposure. This is calculated centrally on the entire asset and contract portfolio and monitors the overall level of economic risk assumed by the industrial and trading portfolios (Profit at Risk - PaR, Value at Risk - VaR, Stop Loss). a.2) Commodity derivatives, analysis of transactions Derivatives of the industrial portfolio considered hedges The hedging of price risk by means of derivatives focuses on protecting against the volatility of energy prices on the power exchange (IPEX-EEX), stabilizing electricity price margins on the wholesale market with particular attention being paid to fixed price energy sales and purchases and stabilizing price differences deriving from various indexing mechanisms for the pricing of gas and electricity. To that end, hedging contracts were executed during the year on electricity purchase and sale agreements and on contracts to hedge the fee for the use of electricity transport capacity between the areas of the IPEX market (CCC contracts); hedging contracts were also concluded for the purchase and sale of gas so as to protect sales margins and at the same time keep the risk profile to within the limits set by the Group’s Energy Risk Policy. As part of the optimization of the portfolio of greenhouse gas emission allowances (see Directive 2003/87/EC), A2A S.p.A. has stipulated Future contracts on the ICE ECX (European Climate Exchange) price. These are considered hedging transactions from an accounting point of view in the event of demonstrable surplus/deficit quotas. The fair value at December 31, 2024 was -11,239 thousand euro (-2,272 thousand euro at December 31, 2023). Derivatives of the industrial portfolio not considered hedges Again with a view to optimizing the Industrial Portfolio, A2A S.p.A. stipulated Option contracts on the price of electricity with delivery in Italy and Future contracts on the price of the ICE ECX (European Climate Exchange). These do not qualify as hedging transactions from an accounting point of view as they fail to meet the requirement set out in the accounting standards. The fair value at December 31, 2024 was -469 thousand euro (1,125 thousand euro at December 31, 2023). Derivatives of the Trading Portfolio As part of its trading activity, A2A S.p.A. has taken out Future contracts on major European energy stock exchanges (EEX, ICE) and Forward, Swap, and Option contracts on the price of electricity with delivery in Italy and neighboring countries such as France, Germany, and Switzerland. A2A S.p.A. has also stipulated Future contracts on the ICE ECX (European Climate Exchange) stock exchange price. Also as part of trading activities, Future, Forward and Option contracts were also stipulated for the market price of gas (ICE-Endex, CEGH, PEGAS). The fair value at December 31, 2024 was 110,160 thousand euro (-26,882 thousand euro at December 31, 2023). a.3) Energy Derivatives, risk assessment of Industrial Portfolio derivatives PaR 1 (Profit at Risk) is used to assess the impact that fluctuations in the market price of the underlying have on the financial derivatives taken out by A2A S.p.A. that are attributable to the industrial portfolio. It is the change in the value of a financial instruments portfolio within set probability assumptions as the result of a shift in the market indices. The PaR is calculated using the Montecarlo Method (at least 10,000 trials) and a 99% confidence level. It simulates scenarios for each relevant 1 Profit at Risk: statistical measurement of the maximum potential negative deviation of the margin of an asset portfolio in case of unfavourable market changes over a given time horizon and with a defined confidence interval. Notes Separate financial statements 2024 A2A 93 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors price driver depending on the volatility and correlations associated with each one, using as the central level the forward market curves at the balance sheet date, if available. By means of this method, after having obtained a distribution of probability associated with changes in the result of outstanding financial contracts, it is possible to extrapolate the maximum change expected over a time horizon given by the accounting period at a set level of probability. Based on this methodology, over the time horizon of the accounting period and in the event of extreme market movements and at a 99% confidence level, the expected maximum negative change in financial derivatives outstanding at December 31, 2024 was 100,380 thousand euro (113,328 thousand euro at December 31, 2023). The following are the results of the simulation with the related maximum variances: thousands of euro 12 31 2024 12 31 2023 Profit at Risk (PaR) worst case best case worst case best case Confidence level 99% (100,380) 139,448 (113,328) 145,548 This means that with a 99% probability, A2A S.p.A. expects not to have changes in fair value exceeding 100,380 thousand euro in the fair value of its entire portfolio of financial instruments at December 31, 2024 due to commodity price fluctuations in the 12 months following. If there are any negative changes in the fair value of hedge derivatives, these would be compensated by changes in the underlying physical. a.4) Energy Derivatives, risk assessment of Trading Portfolio derivatives VaR 2 (Value at Risk) is used to assess the impact that fluctuations in the market price of the underlying have on the financial derivatives taken out by A2A S.p.A. that are attributable to the trading portfolio. It is the negative change in the value of a financial instruments portfolio within set probability assumptions as the result of an unfavorable shift in the market indices. VaR is calculated using the RiskMetrics method with a holding period of 3 days and a confidence level of 99%. Alternative methods are used for contracts where it is not possible to perform a daily estimate of VaR such as stress test analysis. Under this method, in the case of extreme market movements, with a confidence level of 99% and a holding period of 3 days, the maximum estimated loss on the derivatives in question was 1,088 thousand euro at December 31, 2024 (480 thousand euro at December 31, 2023). In order to ensure closer monitoring of activities, VaR and Stop Loss (the sum of VaR, P&L Realized and P&L Unrealized) limits are also set. The following are the results of the assessments: thousands of euro 12 31 2024 12 31 2023 Value at Risk (VaR) VaR Stop Loss VaR Stop Loss Confidence level 99%, holding period 3 days (1,088) (1,088) (480) (480) b. Interest rate risk The Group is exposed to the risk that changes in the interest rate curve result in changes in economic results, cash flows and the value of assets and liabilities measured at fair value. The volatility of financial expenses associated to the performance of interest rates is monitored and mitigated through a policy of interest rate risk management aimed at identifying a balanced mix of fixed-rate and floating rate loans and the use of derivatives that limit the effects of fluctuations in interest rates. 2 Value at Risk: statistical measurement of the maximum potential drop in the fair value of an asset portfolio in the event of unfavourable movements in the market with a given time horizon and confidence level. 94 A2A Separate financial statements 2024 Notes The book value of bank borrowings and other financing may be analyzed as follows at December 31, 2024: millions of euro 12 31 2024 12 31 2023 No derivatives With derivatives % with derivatives No derivatives With derivatives % with derivatives Fixed rate 5,332 5,556 80% 5,065 5,157 88% Variable rate 1,599 1,375 20% 770 678 12% Total 6,931 6,931 100% 5,835 5,835 100% At December 31, 2024, the following is the hedging instrument for interest rate risk: millions of euro 12 31 2024 12 31 2023 Hedging instrument Hedged asset Fair value Notional Fair value Notional IRS Floating rate loan subsidiaries 1.04 200 - - Total 1.04 200 - - With reference to the accounting treatment, hedging derivatives for interest rate risk can be classified as follows: millions of euro Accounting treatment Type of derivatives Financial assets Financial liabilities Notional at Fair value at Notional at Fair value at 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 Cash flow hedge IRS - - - - 200 - 1.04 - Total - - - - 200 - 1.04 - Derivatives on interest rates at December 31, 2024 in cash flow hedge refer to the following loan: Loan Derivative Accounting A2A variable rate bank loan, maturity September 2031, residual debt at December 31, 2024 of 100 million euro. IRS on 100% of the amount of the loan until October 2026. At December 31, 2024, the fair value was positive for 0.2 million euro. The loan is measured at amortized cost. The IRS is a cash flow hedge, with 100% recognized in a specific equity reserve. As of December 31, 2024, the interest rate derivatives in the Cash flow hedge category also encompass two Pre-Hedge transactions undertaken in preparation for an upcoming bond issuance. The total nominal amount stands at 100 million euro with a positive fair value of 0.8 million euro, distributed as detailed: • Notional amounting to 50 million euro, with a positive fair value of 0.1 million euro as of December 31, 2024; • Notional amount of 50 million euro, with a positive fair value of 0.7 million euro as of December 31, 2024. Notes Separate financial statements 2024 A2A 95 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors A2A performs sensitivity analysis by estimating the effects on the value of financial statement items relating to the portfolio of financial instruments deriving from changes in the level of interest rates. In particular, the sensitivity analysis measures the potential impact on the income statement and shareholders’ equity of different market scenarios that would determine the change in fair value of derivative financial instruments and the change in financial expenses related to the portion of gross debt not hedged. These market scenarios are obtained by shifting the reference interest rate curve at the reporting date up and down in parallel. Keeping all other variables constant, the pre-tax result is impacted by changes in the level of interest rates as follows: millions of euro Effect on the income statement (before tax) Effect on equity (before tax) -50 bps +50 bps -50 bps +50 bps Change in financial expenses on gross variable-rate debt after hedging 2.5 (2.5) - - Change in fair value of derivative financial instruments classified as non-hedge - - - - Change in fair value of derivative financial instruments classified as hedge (excluding BCVA as per IFRS 13): Cash flow hedge - - (5.3) 5.0 Fair value hedge - - - - c. Exchange rate risk not related to commodities The Group is exposed to the risk that changes in exchange rates with respect to the currency of account may lead to changes in its results of operations and cash flows. In relation to exchange rate risk other than that included in the price of commodities, the hedging instrument at December 31, 2024 is as follows: millions of euro 12 31 2024 12 31 2023 Hedging instrument Hedged asset Fair value Notional Fair value Notional Cross Currency IRS Fixed rate loan in foreign currency (18.5) 98.0 (10.7) 98.0 Total (18.5) 98.0 (10.7) 98.0 The accounting treatment of the derivative indicated above is as follows: millions of euro Accounting treatment Type of derivatives Financial assets Financial liabilities Notional at Fair value at Notional at Fair value at 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 Cash flow hedge CCIRS - - - - 98.0 98.0 (18.5) (10.7) Total - - - - 98.0 98.0 (18.5) (10.7) 96 A2A Separate financial statements 2024 Notes In particular, the underlying of the Cross Currency IRS derivative refers to the bond at fixed rate of 14 billion yen with maturity 2036 bullet issued in 2006. A cross currency swap contract was stipulated for the entire duration of this loan, which converts the principal and interest payments from yen into euro. At December 31, 2024, the fair value of the hedge was negative for 18.5 million euro. It should be noted that a 10% positive shift in the EURJPY forward curve, with a consequent depreciation of the JPY, would result in a worsening of the fair value and, consequently, of the impact on shareholders’ equity of 10.1 million euro. Conversely, a 10% negative shift in the EURJPY forward curve, resulting in an appreciation of the JPY, would result in an improvement in fair value of 12.4 million euro. This sensitivity analysis was performed with the aim of calculating the effect of changes in the forward curve of the euro/yen exchange rate on the fair value ignoring any impact on the adjustment due to the bCVA. d. Liquidity risk Liquidity risk is the risk that the Group is unable to meet its obligations in a timely manner or that it is able to do so under unfavorable economic conditions due to situations of tension or systemic crisis or to the changed perception of its riskiness by the market. This risk includes: i) the risk related to the company’s inability to raise new funds (Funding Risk) and, ii) the risk related to the company’s inability to liquidate assets on the market in a timely manner and at market conditions (Liquidity Market Risk). One of the main factors influencing the market’s perceived riskiness is the creditworthiness of A2A assigned by rating agencies. This judgement plays a very important role because it influences the ability of A2A to access sources of financing as well as the related costs. A deterioration in creditworthiness could lead to a limitation of access to the capital market and/or financing costs with a negative impact on the economic, financial and equity situation. A2A has a medium- and long-term rating of BBB (stable outlook) with S&P and Baa2 (stable outlook) with Moody’s. The profile of the gross debt maturities of A2A for loans from banks and other lenders is summarized as follows: millions of euro Accounting Balance 12 31 2024 Portions maturing within 12 months Portions maturing beyond 12 months Portions maturing by 12 31 2026 12 31 2027 12 31 2028 12 31 2029 after Bonds 4,857 354 4,503 598 298 497 397 2,713 Loans 1,511 81 1,430 860 59 59 56 396 Total 6,368 435 5,933 1,458 357 556 453 3,109 The risk management policy is realized through (i) a debt management strategy diversified by funding sources and maturities, and (ii) maintenance of financial resources sufficient to meet scheduled and unexpected commitments over a given time horizon. At December 31, 2024, the company had a total of 3,083 million euro, as follows: (i) committed revolving credit lines for 1,560 million euro, of which: a) 560 million euro maturing in 2025, b) 800 million euro maturing in 2026 and c) 200 million euro maturing in 2028, not used; (ii) cash and cash equivalents for a total of 1,323 million euro, iii) EIB term loan available and not yet disbursed for 200 million euro, maturing in 2043. Additionally, A2A maintains a Bond Issuance Programme (Euro Medium Term Note Programme), featuring a base prospectus approved by the Commission de Surveillance du Secteur Financier (CCSF), and an EMTN Programme with a base prospectus approved by the National Commission for Companies and the Stock Exchange (CONSOB). The total size is 7 billion euro; as of December 31, 2024, there are 2,250 million euro available. Notes Separate financial statements 2024 A2A 97 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Over the years, A2A has embarked on a path of issues with ESG characteristics, in the form of Green Bonds and Sustainability-Linked Bonds. For A2A, the failure to meet certain sustainability KPI (ESG) targets may lead to an increase in the financing costs of the debt instruments to which these KPIs are linked. Similarly, failure to realize investments financed with Green Bonds may result in a risk of lack of access to certain sources of financing. In relation to the Sustainability-Linked Bond issued in 2022 with a term of 6 years and a KPI concerning the installed capacity from renewable sources, as of December 31, 2024, the target was not reached, resulting in a 25 basis point increase in the coupon from the first interest period after the publication of these financial statements. The following table represents the repayment schedule of financial liabilities (excluding payables for rights of use and including trade payables). The amounts shown in the table are future cash flows, nominal and non-discounted, determined with reference to the remaining contractual maturities, for the principal and interest portions. The undiscounted nominal flows of derivative contracts on interest rates are also included. Finally, any revocable financial lines used and current accounts payable are due within the next financial year. 12 31 2024 millions of euro 1-3 months 4-12 months beyond 12 months Bonds 337 67 5,093 Payables and other financial liabilities 8 115 1,542 Total financial flows 345 182 6,635 Payables to suppliers 188 13 - Total trade payables 188 13 - 12 31 2023 millions of euro 1-3 months 4-12 months beyond 12 months Bonds 341 67 5,498 Payables and other financial liabilities 4 239 507 Total financial flows 345 306 6,005 Payables to suppliers 336 8 1 Total trade payables 336 8 1 e. Credit risk Credit risk relates to the possibility that a counterparty may be in default, or fail to respect its commitment in the manner and timing provided by contract. This type of risk is managed by the Group through specific procedures (Credit Policy, Energy Risk Management procedure) and appropriate mitigation actions. This risk is overseen by both the Credit Management function allocated centrally (and the corresponding functions of the operating companies) and the Group Risk Management Organizational Unit responsible for supporting the Group companies. Risk mitigation is through the prior assessment of the creditworthiness of the counterparty and the constant verification of compliance with exposure limit as well as through the request for adequate guarantees. The credit terms granted to customers as a whole have a variety of deadlines, in accordance with applicable law and market practice. In cases of delayed payment, default interest is charged as explicitly prescribed by the underlying supply contracts or by current law (application of the default rate as per Legislative Decree 231/2002). It should be noted that there are no significant credit exposures concentrated on one or a few customers. Trade receivables are recognized on the balance sheet net of any write-downs. It is felt that the amount shown provides and accurate representation of the fair value of the trade receivables portfolio. For the aging of trade receivables, reference is made to note 7) Trade receivables. 98 A2A Separate financial statements 2024 Notes f. Equity risk A2A S.p.A. was not exposed to equity risk at December 31, 2024. In particular, it should be noted that A2A S.p.A. did not hold any treasury shares at December 31, 2024. As prescribed by IAS/IFRS, treasury shares do not constitute an equity risk as their purchase cost is deducted from equity, and even if they are sold any gain or loss on the purchase cost does not have any effect on income statement. g. Covenants non-compliance risk Bonds, loans, leases and committed revolving bank lines present terms and conditions in line with market practice for each type of instrument. In particular, they envisage: (i) negative pledge clauses as a result of which the parent company undertakes not to constitute collateral on its assets and those of its relevant subsidiaries (as defined from time to time in the related documentation), with the provision of some exceptions and a threshold maximum permitted specifically identified; (ii) cross default/acceleration clauses that entail the obligation of immediate repayment of bonds and loans in the event of serious defaults; (iii) clauses that provide for the obligation of immediate repayment of bonds and loans in the event of insolvency or other insolvency proceedings of the parent company or its relevant subsidiaries. The bonds include (i) senior unsecured bonds for a nominal amount of 4,750 million euro (book value at December 31, 2024 equal to 4,769 million euro) issued as part of the EMTN Program, which provide to investors a Change of Control Put option in the event of a change of control of the parent company resulting in a consequent downgrade of the rating to sub-investment grade level in the following 180 days (if within these 180 days, the company’s rating returns to investment grade, the option may not be exercised); (ii) a bond in yen placed privately with a maturity in 2036 for a nominal amount of 98 million euro (book value at December 31, 2024 equal to 88 million euro), which provides to the investor a Put option in the event that the rating of the parent company is lower at BBB- or equivalent level (sub-investment grade). In June 2024, A2A S.p.A. issued its first “hybrid” subordinated perpetual bond with a nominal value of 750 million euro. This bond is characterized by its potentially perpetual duration (with the obligation to be redeemed only in the event of certain events, including, inter alia, the dissolution or liquidation of the company) and by its subordination, according to which the instrument is subordinated to all of the company’s financial debts and has a level of “seniority” superior only to that of ordinary shares or other financial instruments qualifying as “equity”. The loans stipulated with the European Investment Bank (EIB), for a total nominal debt of 457 million euro (in addition to a further 200 million euro not yet disbursed) and a book value of 459 million euro, of which 146 million have a maturity of more than five years, include (i) a credit rating clause (if rated lower than BBB- or equivalent sub-investment grade) that provides for the obligation of A2A to inform EIB in the event of a rating downgrade and, in such circumstance, the right of EIB to request additional guarantees from A2A and, where such guarantees are not provided or are not satisfactory to EIB, the right to request early repayment of the loan, and ii) a clause for the parent company’s change of control, with the right for the bank to invoke, subject to notice to the company containing the reasons, early repayment of the loan. The committed revolving bank lines of A2A, for a total of 1,560 million euro, provide a Change of Control clause which, in the event of a change of control of the parent company causing a Material Adverse Effect, allows the majority of banks lending the line to request the line to be extinguished and any amounts drawn down to be repaid. As at December 31, 2024, there was no non-compliance with the above-mentioned covenants by A2A. At June 30, 2023, one of the three covenants in the Acinque EIB loan contract (Net Financial Debt/ Ebitda) was not met. Notes Separate financial statements 2024 A2A 99 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors With reference to the exceeding of the covenant as described above, it should be noted that Acinque requested the European Investment Bank to issue a waiver and that the Bank granted, subject to the issue by A2A S.p.A., a first demand guarantee for the entire amount financed in favor of the Bank, which took place in the second half of 2023 and with maturity on December 31, 2024. On October 31, A2A S.p.A. signed the early release of the guarantee, in agreement with the EIB, as the covenant was fulfilled earlier than expected under the granted waiver. As at December 31, 2024, this covenant was met. 100 A2A Separate financial statements 2024 Notes Instruments outstanding at December 31, 2024 A) On interest and exchange rates The following analyses show the outstanding amounts of derivative contracts stipulated and not expired at the balance sheet date, by maturity. thousands of euro Notional value (a) Value Balance sheet (b) Progressive effect to income statement (c) Due within 1 year Due in 1 to 5 years Due over 5 years to be received to be paid to be received to be paid to be received to be paid Interest rate risk management cash flow hedges as per IFRS 9 - - (200) 1.0 not considered hedges as per IFRS 9 Total derivatives on interest rates - - - - - (200) 1.0 - Exchange rate risk management considered hedges as per IFRS 9 \- on commercial transactions \- on non-commercial transactions 98.0 (18.5) not considered hedges as per IFRS 9 \- on commercial transactions \- on non-commercial transactions Total derivatives on exchange rates - - - - - 98.0 (18.5) - (a) Represents the sum of the notional value of the elementary contracts that derive from any dismantling of complex contracts. (b) Represents the net receivable (+) or payable (-) recognized in the balance sheet following the measurement of derivatives at fair value. (c) Represents the adjustment of derivatives to fair value recognized progressively over time in the income statement from the stipulation of the contract to the present day. Notes Separate financial statements 2024 A2A 101 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors B) On commodities The following is an analysis of the commodity derivative contracts outstanding at the balance sheet date set up for the purpose of managing the risk of the fluctuations in the market prices of commodities. Volume by Maturity Notional Value Fair Value Due within 1 year Due within two years Due within five years Due after five years Value Balance sheet (*) Progressive effect to income statement (**) Energy product price risk management Unit of measurement Quantity Thousands of euro Thousands of euro Thousands of euro A. Cash flow hedges as per IFRS 9, including: (11,239.2) - \- Electricity TWh 4.7 0.1 0.1 0.1 54,195.9 (3,560.1) \- Oil Bbl \- Coal Tons \- Natural Gas TWh 0.5 0.4 29,323.7 (8,804.8) \- Natural Gas Millions of cubic metres \- Natural Gas Degrees day \- Exchange rate Millions of dollars \- Emission rights Tons 180,000 54,000 16,103.6 1,125.7 B. considered fair value hedges as per IFRS 9 - - C. not considered hedges as per IFRS 9 of which 109,690.9 135,447.5 C.1 hedge margin (469.3) (1,594.5) \- Electricity TWh 0.2 0.2 2,955.8 (429.6) (429.6) \- Oil Bbl \- Natural Gas TWh 0.01 2,459.3 (19.1) (19.1) \- Natural Gas Millions of cubic metres \- CO2 emission rights Tons 5,000 337.3 (20.6) (1,145.8) \- Exchange rate Millions of dollars C.2 trading transactions 110,160.2 137,042.0 \- Electricity TWh 39.3 6.5 1.5 1.1 4,333,743.3 44,855.2 119,653.3 \- Natural Gas TWh 106.8 25.7 3.5 5,296,430.8 64,878.6 17,038.1 \- CO2 emission rights Tons 33,682,200 116,000 2,287,113.3 426.4 350.6 \- Environmental Certificates MWh \- Environmental Certificates Tep Total 98,451.7 135,447.5 (*) Represents the net receivable (+) or payable (-) recognized in the balance sheet following the measurement of derivatives at fair value. (**) Represents the adjustment of derivatives to fair value recognized over time in the Income Statement from stipulation of the contract to the present date. 102 A2A Separate financial statements 2024 Notes C) On investments At December 31, 2024, there are no derivatives on shareholdings like in the previous year. Financial and operating effects for derivative transactions in 2024 Effects on the balance sheet The following table shows the balance sheet figures at December 31, 2024, for derivative transactions. thousands of euro Notes Total Assets Non-current assets 1,041 Other non-current assets - Derivatives 5 1,041 Current assets 865,149 Other current assets - Derivatives 8 865,149 Total assets 866,190 thousands of euro Note Total Liabilities Non-current liabilities 18,540 Other non-current liabilities - Derivatives 18 18,540 Current liabilities 766,697 Trade payables and other current liabilities - Derivatives 19 766,697 Total liabilities 785,237 Notes Separate financial statements 2024 A2A 103 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Effect on the income statement The following table sets out the income statement figures at December 31, 2024 arising from the management of derivatives. thousands of euro Notes Realised during the year (1) Change in fair value during the year Amounts recognized in the income statement Revenues 23 Revenues from the sale of goods Energy product price risk management and exchange rate risk management on commodities \- considered hedges as per IFRS 9 30,536 - 30,536 \- not considered hedges as per IFRS 9 159,937 (2,101,828) (1,941,891) Total revenues from the sale of goods 190,473 (2,101,828) (1,911,355) Operating costs 24 Expenses for raw materials and services Energy product price risk management and exchange rate risk management on commodities \- considered hedges as per IFRS 9 (11,871) - (11,871) \- not considered hedges as per IFRS 9 (331,483) 2,237,275 1,905,792 Total costs for raw materials and services (343,354) 2,237,275 1,893,921 Total recognized in gross operating income (*) (152,881) 135,447 (17,434) Financial balance 30 Financial income Interest rate risk management and equity risk management Income on derivatives \- considered hedges as per IFRS 9 - - - \- not considered hedges as per IFRS 9 4,701 - 4,701 Total 4,701 - 4,701 Total financial income 4,701 - 4,701 Financial expenses Interest rate risk management and equity risk management Expenses on derivatives \- considered hedges as per IFRS 9 - - - \- not considered hedges as per IFRS 9 - - - Total - - - Total financial expenses - - - Total recognized in financial balance 4,701 - 4,701 (1) Made without physical delivery (*) The figures do not include the effect of the net presentation of the negotiation margin of trading activities 104 A2A Separate financial statements 2024 Notes Classes of financial instruments To complete the analyses required by IFRS 7 and IFRS 13, the following table sets out the various types of financial instrument that are to be found in the various balance sheet items, with an indication of the accounting policies used and, in the case of financial instruments measured at fair value, an indication of where changes are recognized (income statement or equity). The last column of the table shows the fair value of the instrument at December 31, 2024, where applicable. Criteria to measure the reported amount of financial instruments thousands of euro Notes Financial instruments measured at fair value with changes recognized in: Financial instruments measured at amortized cost Statement of Financial Position Value Fair value (*) Income statement Shareholders’ equity (1) (2) (3) (4) Assets Other non-current financial assets Financial assets measured at fair value of which: \- unlisted 1,065 1,065 n.a. \- listed - - Financial assets held to maturity 96 96 96 Other non-current financial assets 35,473 365,009 400,482 400,482 Total other non-current financial assets 3 401,643 Other non-current assets 5 1,041 27,661 28,702 28,702 Trade receivables 7 1,956,696 1,956,696 1,956,696 Other current assets 8 862,872 2,277 252,032 1,117,181 1,117,181 Current financial assets 9 4,229,640 4,229,640 4,229,640 Cash and cash equivalents 11 1,323,166 1,323,166 1,323,166 Liabilities Financial liabilities Non-current and current bonds 15 and 20 85,561 4,771,488 4,857,049 4,857,049 Other non-current and current financial liabilities 15 and 20 2,328,382 2,328,382 2,328,382 Other non-current liabilities 18 18,540 3,455 21,995 21,995 Trade payables 19 2,415,496 2,415,496 2,415,496 Other current liabilities 19 753,181 13,516 142,293 908,990 908,990 (*) The fair value has not been calculated for receivables and payables not related to derivative contracts and loans as the corresponding carrying amount is a good approximation to this. (1) Financial assets and liabilities measured at fair value with the changes in fair value recognized in the Income Statement. (2) Cash flow hedges. (3) Financial assets available for sale measured at fair value with profit/loss recognized in equity. (4) Loans and receivables and financial liabilities measured at amortized cost. Notes Separate financial statements 2024 A2A 105 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Fair value hierarchy IFRS 7 and IFRS 13 require that fair value classification of financial instruments to be based on the quality of the input source used to calculate the fair value. In particular, IFRS 7 and IFRS 13 set out three levels of fair value: • level 1: this level consists of financial assets and liabilities for which fair value is based on (unadjusted) prices for identical assets or liabilities quoted on active official or over-the-counter markets; • level 2: this level consists of financial assets and liabilities for which fair value is based on inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly or indirectly; • level 3: this level consists of financial assets and liabilities for which fair value is based on unobservable market data. This level includes instruments measured on the basis of internal estimates made using proprietary methods based on sector best practice. An analysis of the assets and liabilities included in the three fair value levels is set out in the following fair value hierarchy table. thousands of euro Note Level 1 Level 2 Level 3 Total Assets measured at fair value 3 35,473 1,065 36,538 Other non-current assets 5 1,041 1,041 Other current assets 8 849,558 1,693 13,898 865,149 Total assets 885,031 3,799 13,898 902,728 thousands of euro Note Level 1 Level 2 Level 3 Total Non-current financial liabilities 15 85,561 85,561 Other non-current liabilities 18 18,540 18,540 Other current liabilities 19 739,051 4,654 22,992 766,697 Total liabilities 824,612 23,194 22,992 870,798 106 A2A Separate financial statements 2024 Notes 6) Main regulatory provisions regarding concessions and agreements in the sectors of activity in which the company operates Large hydroelectric derivation concessions The national discipline on large derivation hydroelectric concessions (i.e. plants with a nominal power greater than 3 MW) was originally dictated by R.D. 1775/1933, which was based on the issuance of concessions by the State on a long-term basis. This regulatory framework was subsequently superseded first by electricity sector nationalization Law no. 1643/1962, which resulted in Enel taking over the majority 3 of hydroelectric concessions with the relative recognition of an unlimited duration, and then by the liberalization of the market as a result of Legislative Decree 79/1999 (implementing Directive 96/92/EC), which introduced with art. 12 (and subsequent amendments) the principles of: • the temporariness of the concessions, establishing a validity period (2029) for concessions without expiration because they are owned by Enel and assigning the term of December 31, 2010 for concessions that have already expired or are expiring by that date; • contestability of concessions in the event of expiration, forfeiture or renunciation, providing the call for tenders by the competent administration (now the Region) for the allocation of the same for consideration. Article 11-quater of Law 12/2019 has partially further amended the regulation of large-scale hydroelectric concessions: the new rules provide that the Regions regulate with their own laws the methods, procedures and criteria for the allocation of concessions, which may be entrusted to economic operators identified through a tender, or to public/private joint ventures with selection of the private partner through a tender, or through forms of partnership under Legislative Decree 50/2016 and (now Legislative Decree 36/2023). Article 7 of Law 118/2022 (Annual Law for the Market and Competition 2021) established that the procedure for awarding the contract must be started within 2 years of the entry into force of the individual Regional Laws and, in any case, no later than December 31, 2023. The duration of the new concessions will have to be between 20 and 40 years, with the possible extension of the maximum period by a further 10 years depending on the complexity of the project proposal and the amount of investment. Article 11-quater cited (paragraph 1-quinquies), as part of the new process for reallocating expired concessions, stipulates that specific regional regulations (after consultation with ARERA) are established: • a State fee to be paid on a six-monthly basis to the Regions, comprising a fixed component linked to the average nominal power of the concession and a variable calculated as a percentage of normalized revenues; • the possible obligation for the concessionaires to supply annually and free of charge 220 kWh per kW of concession power for at least 50% destined to public services of the provincial territories involved in the derivation. In terms of compensation to outgoing operators, article 11-quater prescribes: • for wet works: the transfer without compensation of ownership to the Regions, except for the compensation only of investments not yet amortized; • for dry works: the recognition of a value derived from accounting records or certified appraisal. In the event of non-inclusion in the project of the incoming concessionaire, removal and disposal of movable property is envisaged at the expense of the latter, while immovable property remains the property of the entitled parties. Lombardy Region approved R.L. 5/2020 (as amended by Regional Law 19/2021), which regulates the modalities and procedures for assigning concessions for large hydroelectric derivations. This law also defines the reconnaissance activity aimed at subsequent tendering. Subsequently, the Lombardy Region adopted Regulation 3/2022 for the preliminary procedures for the assessment of the public interest in relation to the various uses of water, as well as Regulation 9/2022 regulating the timing and procedures for the allocation procedures, a regulation that was later challenged before the Superior Court of Public Waters by a number of operators (the case is still pending). 3 With the exception of derivations in the ownership of self-producers, municipal companies and local authorities. Notes Separate financial statements 2024 A2A 107 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Most of A2A S.p.A. large-scale hydroelectric derivation concessions located in Valtellina (for a nominal concession power of around 215 MW) have expired; Lombardy Region with Regional Council Resolution XII/3744 of December 30, 2024 allowed the temporary continuation of its operation until December 31, 2025, or shorter term, should the reassignment procedures, not yet started, be concluded at an earlier date, confirming the payment of an additional fee and the non-application of the partial exemption from the state fee on the Premadio 1, Grosio, Lovero and Stazzona plants. Other A2A S.p.A. concessions (plants in Mese, Friuli and Calabria for a total nominal concession capacity of about 358 MW) expire in 2029. 108 A2A Separate financial statements 2024 Notes 7) Update of the main legal and tax disputes still pending Adequate provisions are provided where necessary for the disputes and litigation described below. It is noted that if there is no explicit reference to the presence of a provision, the company assessed the corresponding risk as possible without appropriating provisions in the financial statements. It should be noted that certain disputes illustrated in previous financial statements and still pending are not further reported due to the absence of updates or the cessation of the previous risk situation. A2A S.p.A. Reorganization of Edison - compensation cases Carlo Tassara: first lawsuit for damages against EDF and A2A S.p.A.. First and second instance On March 24, 2015, Carlo Tassara S.p.A. notified A2A, Electricité de France (EDF) and Edison a summons requesting the Court of Milan to condemn A2A and EDF to compensation for damages allegedly suffered by Carlo Tassara, in its capacity as minority shareholder of Edison, in relation to the mandatory tender offer launched by EDF on Edison shares consequently to the transaction by which, in 2012, A2A sold its indirect shareholding in Edison to EDF and simultaneously acquired 70% of the capital of Edipower from Edison and Alpiq. In the summons notified, Carlo Tassara complained that, in the transaction, EDF and A2A agreed on a mutual “discount” on the price paid by EDF for the purchase of Edison shares, on the one hand, and on the price paid by A2A for the purchase of 70% of Edipower, on the other. This discount was expected to be the result of abusive conduct by EDF and A2A as shareholders of Edison and the violation, among other things, of the regulations on transactions with related parties. This - according to Carlo Tassara - was expected to allow maintaining artificially low the price of the Edison shares paid to A2A and consequently the tender offer price paid to minorities of Edison (which by law was expected to be equal to that paid to A2A). The writ of summons did not quantify the damage allegedly suffered by Carlo Tassara as a result of such transactions. However, with brief on February 20, 2017, Carlo Tassara requested the judge (who rejected the preliminary request) to have an expert witness to calculate the damages (specifying that they should have been quantified in the alleged difference between the tender offer price and the market value that the Edison shares had previously). Carlo Tassara also filed an appraisal in which such damages were quantified in a total amount between 197 and 232 million euro, amount to calculate the compensation due from each of the companies that will be considered responsible by the judge. After several postponements justified also by modifications of the judge, on October 17, 2018, the judge rejected the requests for investigation of the plaintiffs, setting March 19, 2019 as the hearing for clarification of conclusions. On September 8, 2021, the Milan Business Court filed Sentence 7859 rejecting all of the claims made by Carlo Tassara S.p.A., without accepting the reconstruction according to which the shareholders acted to cause an undervaluation of Edison and Edipower. According to the Business Court of First Instance, in the case submitted, the conditions for assessing management and coordination were not met. The Court also found that the price of Edison shares, at which EDF purchased its shares during the tender offer, was not subject to review because it was the price defined by Consob pursuant to article 106 of the TUF; the sentence also highlights the difference between the price of Edison shares and the value of the Edipower subsidiary and, more importantly, the price at which the latter was sold to A2A. Carlo Tassara S.p.A. served a writ of summons on the appeal and A2A S.p.A. entered an appearance requesting that the Tassara S.p.A. appeal be declared inadmissible as well as groundless, and re-proposed the exceptions, defenses and requests raised in the first level of judgement for full protection. At the first hearing on March 2, 2022, the judge adjourned the case for clarification of conclusions and the hearing as a result of the adjournments to May 8, 2024. During this hearing, conducted in written form, the deadlines for the submission of statements were established. The case was deliberated in the Council Chamber on September 12, and on October 24, 2024, the Court of Appeal delivered a judgment dismissing all grounds for appeal and ordering Carlo Tassara S.p.A. to reimburse litigation expenses, as quantified by the judgment. The judgment was notified, and in the resulting short-term timeframe, Carlo Tassara S.p.A. was given a deadline of January 17, 2025, for the service of the application to the Court of Cassation. However, Notes Separate financial statements 2024 A2A 109 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Carlo Tassara S.p.A. did not proceed with notifying the appeal to the Court of Cassation. Therefore, the judgment has become final. Carlo Tassara: second lawsuit for damages against Transalpina dell’Energia and A2A S.p.A. On April 14, 2022, Carlo Tassara S.p.A. served a new summons on the Court of Milan, requesting that Transalpina Di Energia and A2A be ordered, jointly and severally with each other, to pay Carlo Tassara S.p.A. the damages that will be quantified in the course of the proceedings, after ascertaining and declaring the liability of the two companies for the breach of article 106 TUF (Total Tender Offer). In the writ of summons, Carlo Tassara S.p.A. quantifies the damage caused by the write-down of the value of its equity investment in Edison at 316,843,562.97 euro, figure resulting from the theoretical value of the tender offer calculated by Carlo Tassara S.p.A. on the basis of: a) Value of Edison shares recorded in the financial statements by TDE and A2A (1.5003 euro/share); b) Value assigned by Edison in fair value appraisals (1.3 euro/share); c) Highest edict value identified by Consob (0.95 euro/share); d) Market value to be defined by the Court. The writ of summons provides a description of the facts related to the extraordinary transaction to be ascertained: (i) the avoidance and violation of article 106 of the TUF and (ii) the demonstration of the existence of an alleged pact between the two defendants to depress Edison’s value, prior to launching a takeover bid - with the consequent violation of the rule protecting minority shareholders of listed companies and non-achievement of the latter of: (i) control price and (ii) market price of the Edison shares held by Carlo Tassara S.p.A.. In anticipation of the first hearing set for January 11, 2023, A2A entered an appearance and illustrated the grounds for the rejection of the appeal. At the hearing, the judge declared the default of TDE (which did not enter an appearance and did not appear at the hearing) and, on January 12, 2023, with an order outside the hearing, adjourned the case for the definition of the conclusions to July 4, 2023, in order to allow the panel, before considering the merits of the deeded claims, to examine the procedural objections raised by A2A. After said hearing, the parties were able to file their pleadings. On March 1, 2024, a non-definitive judgment was filed, putting the case back on the docket for the continuation of the preliminary investigation phase, and rejecting the preliminary objections of inadmissibility of the claim, lack of standing of A2A, and lis pendens. In 2024, two hearings took place (March 12 and June 25, 2024), and by order of June 26, 2024 rejecting the preliminary motions of Carlo Tassara S.p.A., the hearing for the specification of conclusions was set for March 18, 2025 then postponed by a further order of March 13, 2025 to April 21, 2026. Class Action notified by shareholder of ordinary shares On May 4, 2022, a natural person shareholder, owner - at the date of the reorganization transactions of Edison S.p.A. - of 1,250,000 ordinary shares of Edison S.p.A. (equal to 0.025% of the share capital of Edison S.p.A.), served a summons pursuant to article 140-bis of Legislative Decree September 6, 2005, no. 206 of the Consumer Code for a class action before the Business Court of Milan, seeking an order that Transalpina Di Energia and A2A, jointly and severally with each other, pay to itself, and to all class members who joined the action within the terms that may be set by the Court after declaring the admissibility of the action, compensation for damages to be quantified in the course of the proceedings, after ascertaining and declaring the liability of the two companies for the breach of article 106 TUF (Total Tender Offer). The factual reconstruction proposed by the plaintiff and the alleged liability of the two defendant companies retrace the contents of the writ of summons served a few weeks earlier by Carlo Tassara S.p.A. (reference is therefore made to the statement of this position). The hearing was held on November 24, 2022 and on January 12, 2023, the Court filed an order in which it declared the class action request inadmissible, accepting the objections and defences of A2A and sentencing the plaintiff to pay A2A legal expenses and to publish the operative part of the order in “Il Sole 24 Ore” newspaper within the following 30 days. On March 1, 2023, the original applicant notified to A2a S.p.A. the complaint already filed in the Court of Appeal and the order setting the hearing for May 10, 2023. Following said hearing, the Court of Appeal set a new hearing for November 15, 2023. On December 11, 2024, the Court of Appeal filed the order rejecting the claim and ordered the claimant to pay the litigation costs determined by the same order. 110 A2A Separate financial statements 2024 Notes The Group, having fulfilled the requirements of the regulations in force, does not consider likely the risk for which it has not allocated any provisions. Shareholders’ Agreement between A2A S.p.A. and Pessina Costruzioni S.p.A. for the management of ASM NOVARA S.P.A. In March 2013, Pessina Costruzioni established arbitration proceedings against A2A S.p.A. to have the latter declared in breach of the shareholders’ agreement signed between the parties on August 4, 2007 with reference to the company ASM NOVARA S.p.A. (now extinct) and to order A2A S.p.A. to pay damages accordingly. With an award filed on June 30, 2015, the board of arbitrators, with the dissenting opinion of the arbitrator appointed by A2A S.p.A., found A2A S.p.A. liable for the breach of the shareholders’ agreement and, consequently, ordered it to pay damages, which were settled on an equitable basis. The Court of Appeal of Milan on November 23, 2016 with Sentence 4337/16 rejected the appeal of A2A S.p.A. for nullity of the award. The Court of Cassation, with Order 18220 filed on June 26, 2023, accepted the first reason of the appeal notified by A2A S.p.A., considered the remaining reasons absorbed and quashed with adjournment the sentence of the Court of Appeal of Milan. The company A2A S.p.A. and also the company Pessina Costruzioni resumed the case in the Court of Appeal within the time limit. In the event that A2A S.p.A.’s claim for the nullity of the award is upheld and the Court makes a new decision on the merits of the dispute, by way of a conditional cross- appeal, Pessina has also made a claim for damages in the amount originally requested and greater than the amount recognized by the award in application of the principle of fairness. During the initial hearing on May 22, 2024, the two cases were consolidated. Given the impossibility of reaching a conciliation, the trial was adjourned to a subsequent hearing on October 9, 2024, after which the case was deferred for the specification of conclusions to March 26, 2025. The Group, having already complied with the award and in view of the stage of the proceedings, has not set aside any provisions as of today. Derivations of public water for the production of hydroelectricity With particular reference to the imposition of additional fees on expired concessions, the companies contested Regional Council Resolution no. 5130/2016, which provisionally quantified the additional fee as 20 euro/kW of nominal power. The Court of Cassation ruled (February 2024, Ord. nos. 4800 and 4382), recognizing the legitimacy of the provisional tariff identified by the aforementioned Regional Council Resolution. The relevant amounts, paid in March 2024, had, however, been fully provisioned as a matter of prudence. On the other hand, the case concerning the so-called final additional fee, instituted in February 2024 before the Superior Court of Public Waters, is still pending. A2A also contested - as contrary to the pro-tempore regulations in force - the annulment of the partial exemption of the State fee ordered by the Lombardy Region for the expired concessions that benefited from it. The Court of Cassation dismissed the appeals relating to the Premadio I (Sent. no. 15990/2020) and Grosio (Ord. no. 4371/2024) concessions, while the judgments are still pending relating to the Lovero and Stazzona concessions, in which A2A has obtained 2nd instance rulings (Superior Court of Public Waters-TSAP sent. nos. 171/2023 and 2/2024) in favor, challenged in Cassation by the Region. Also in Lombardy, in alleged implementation of art. 12 of Legislative Decree 79/1999 as amended by Law 12/2019, the free transfer of electricity was imposed, in monetized form (220 kWh per kW of nominal power). The relevant measures were challenged by A2A and LG. In relation to the expired concessions, the Court of Cassation has definitively ruled that the subjection to the gratuitous transfer of energy is legitimate (see Order no. 15888/2024). For concessions that have not expired, litigation is still pending. The Lombardy Region also requested, in alleged implementation of art. 12 of Legislative Decree 79/1999, the payment of the so-called two-tier state concession fee, consisting of a fixed and a variable component. A2A and LG have filed appeals before the TSAP, and the judgments are still pending. Notes Separate financial statements 2024 A2A 111 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors The Lombardy regional regulation on the reallocation of expired concessions was also challenged. In December 2023, the Lombardy Region approved the resolution for the reassignment by tender of the Resio concession of LG; the Company, despite submitting an offer during the tender, challenged the resolution both in defense of its rights and legitimate interests as the outgoing concessionaire (making the assets available and enhancing their value) and by raising issues of unreasonableness and illegitimacy of the procedure. The subsequent invitation to tender was also judicially challenged. In Friuli Venezia Giulia, A2A holds concessions in force until 2029. Similarly to Lombardy, a judgment against the imposition of the free energy transfer was initiated, which is still pending at the TSAP on appeal, after a negative first instance sentence ( Venice Regional Court of Public Waters sent. no. 2006/2023). An action was also brought against the imposition of the so-called two-tier state fee, which is still pending at the TSAP. For all disputes relating to hydroelectric fees and assimilated charges, the companies have prudently set aside a provision for risks for the entire amount claimed by the granting public administration. Public Prosecutor’s Office at the Court of Sondrio – Criminal Procedure 1067/2024 R.G.N.R. Preliminary investigations are underway against certain A2A S.p.A. employees following the death during working hours of a company employee as a result of an accident that occurred on November 24, 2023. At present, only known are the allegations made in notices of indictment and minutes of the ATS Montagna contesting violations of the Legislative Decree 81/08 and manslaughter (Article 589 of the Criminal Code). On January 8, 2025, ATS Montagna announced the admission for payment settlement in the administrative setting of the contested infractions. Further developments are expected. Monza Public Prosecutor’s Office - Criminal Proceeding no. 1931/2021 R.G.N.R. On July 5, 2021, officers and agents of the Finance Police of Seregno showed up at the headquarters of AEB S.p.A. in Seregno to execute “personal and local search orders” and “request for delivery - local search order”. The proceedings, which in the initial phase was against unknown persons, arise from two complaints presented to the Prosecutor’s Office of Monza on November 25, 2019 and on February 10, 2020 by Tiziano Mariani, at the time Municipal Councillor of the Municipality of Seregno, who also filed an appeal with the TAR, now concluded. The “personal and local search decree”, which also contains the “guarantee information” pursuant to art. 369 Criminal Procedure Code to the person subjected to the investigation, concerned the Chair of the Board of Directors of AEB S.p.A. investigated, jointly with other persons not indicated, for the crimes referred to in the art. 353 bis Criminal Code (disturbance of the freedom of the procedure for choosing a contractor), 319 Criminal Code (bribery for an act contrary to the duties of office), 321 Criminal Code (penalties for the briber), committed between “October 2019 and in present permanency.” At the same time, AEB was served with a “request for delivery and a local search decree” with which the Monza Prosecutor’s Office ordered the acquisition of documentation concerning the transaction. Subsequently, on September 24, 2021, the Finance Police of Seregno, delegated by the Monza Prosecutor’s Office, appeared at the A2A Milan headquarters to serve, as part of Procedure no. 1931/2021 R.G.N.R. relating to the merger between the A2A and AEB Groups, a notice of non- repeatable technical checks on the IT supports previously seized. From the document in question, it emerged that the proceedings were pending not only against certain persons outside the A2A Group, but also against certain persons, other than the current directors of A2A S.p.A., who at the time of the events held positions in A2A S.p.A., Unareti S.p.A. and A2A Illuminazione pubblica S.r.l. in various capacities involved in the project in question. The notice of non-repeatable technical investigations also contained information on guarantees and the right of defense in relation to the investigation concerning the alleged offences under Articles 110 Criminal Code (conspiracy), 353 bis Criminal Code (disturbance of the freedom of the procedure for choosing a contractor), 319 Criminal Code (bribery for an act contrary to the duties of office), 321 Criminal Code (penalties for the corruptor). 112 A2A Separate financial statements 2024 Notes On July 5, 2023, the notice of conclusion of the preliminary investigation was served on only some of the natural persons subject to the notice of investigation, which was, moreover, announced in a press release issued by the Monza Prosecutor’s Office on July 7, 2023. As far as A2A is concerned, the notice was served on only one of the original addressees of the guarantee notice. It appears from the notice that the alleged offences are different from those set out in the previous acts and relate to violations of Articles 353bis Criminal Code (Disturbance of the freedom of the procedure for choosing a contractor), and article 353 of the Criminal Code (Disturbance of the freedom of auctions). On November 22, 2023, the Monza Prosecutor’s Office issued a new press release announcing that it had filed a request for committal for trial against the same persons reached by the notice of conclusion of July 5, 2023 and for the aforementioned offences. The preliminary hearing before the Preliminary Hearing Judge at the Court of Monza was set for April 5, 2024. During this hearing, the constitutions of the civil parties took place: Municipalities of Seregno, Limbiate and Bovisio Masciago and Mr. Mariani. The Municipalities of Desio, Varedo, and Bovisio Masciago have requested an extension to review the proceedings and evaluate the opportunity to constitute a civil party. The Judge, also due to the need to notify the hearing schedule to all member Municipalities in their capacity as injured parties, postponed the hearing to June 28, 2024. During the hearing on June 28, the Municipalities of Varedo and Bovisio Masciago, which had already participated in the previous hearing, along with GSD (an in-house company of the Municipality of Desio) and three municipal councillors from Lissone, submitted an application to join the proceedings as a civil party. The Judge reserved their decision regarding the procedural exceptions raised by the defense lawyers for natural persons during the hearing on September 20, 2024, in which the GUP rejected the objection of territorial incompetence and denied the request to exclude ‘public’ civil parties (Municipalities, in-house companies, and municipal councillors of Lissone), while the former municipal councillor, Mariani, was removed from the proceedings as they were not considered legitimate to constitute themselves. The Public Prosecutor and the civil parties maintained their request for the case to proceed to trial, while the defense counsel for the Mayor of Seregno articulated the reasons they believed warranted a verdict of no-proceedings. The Judge then postponed the proceedings, confirming the schedule that was already known: October 18, 2024, November 8 and 15, 2024. At the hearing on November 15, 2024, the GUP committed all the defendants for trial at the hearing on March 17, 2025, before the Court of Monza. After discussion, the GUP made a reservation and set a new hearing for May 12, 2025. * * * The following information is provided in connection with the main litigation of a fiscal nature. A2A S.p.A. - Registration tax for transfer of business unit and sale of the investment Chi.na.co. S.r.l. On April 4, 2016, the Provincial Directorate I of Milan - Regional Office of Milan 1 - notified the invitation to appear to provide clarifications on a business transfer in the company Chi.na.co. S.r.l. and the subsequent sale of the investment held in it under control for registration tax purposes. The invitation was followed by a contradictory with the Office and subsequent notification by the latter of the notice of liquidation to the acquiring counterparty, which filed an appeal on September 28, 2016. The Provincial Tax Commission of Milan rejected the appeal with sentence filed on July 7, 2017. On February 13, 2018, the acquiring company filed an appeal, which was rejected by the Milan Regional Administrative Court. On April 8, 2019, the Company filed an appeal with the Supreme Court. On February 21, 2020, the Office filed a counter-appeal and a cross-appeal with the Supreme Court. The risks provision recognized for 1.4 million euro was fully used for the payment of the amounts requested with the liquidation notice. Notes Separate financial statements 2024 A2A 113 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors A2A S.p.A. (merging company of AMSA Holding S.p.A.) - VAT Tax assessments for tax years from 2001 to 2005 In early 2006, the Italian Finance Police – Lombardy Regional Unit, Milan – carried out a tax audit of AMSA Holding S.p.A. (now A2A S.p.A.) for VAT purposes for tax years 2001 to 2005. The audit ended with the issue of a final report contesting the legitimacy of the ordinary VAT rate, in place of the special rate applied by suppliers for waste disposal and plant maintenance, as well as the subsequent deduction made after the invoices issued for these services were duly paid. The report was followed by formal notices of assessment from the Tax Revenue Office (Milan 3 Office) for each year audited; appeals were then filed with the Provincial Tax Commission within the term provided by law. The appeals for 2001 and for 2004 and 2005 were discussed on January 25, 2010 and on February 17, 2010 respectively, with a favorable outcome for the company in all cases. The Tax Revenue Office appealed against the verdict of the first court. The Regional Tax Commission rejected this appeal for all three years, 2001, 2004 and 2005. For 2001, the Tax Revenue Office filed an appeal with the Supreme Court against which AMSA Holding S.p.A. (now A2A S.p.A.), filed a cross-appeal on November 9, 2012. At the hearing on December 12, 2018, the Company requested that the case be suspended in order to assess the facilitated settlement of the dispute. On May 24, 2019, the company filed an application for a facilitated settlement of pending tax disputes and definitively settled its tax claim. The outcomes of the 2002 and 2003 disputes were also favorable for the company but the Tax Revenue Office filed an appeal against both sentences. The appeal for 2002 was discussed on November 30, 2010, and by way of a sentence lodged on February 2, 2011 the Milan Regional Tax Commission overturned the sentence of the first court, upholding the Tax Revenue Office’s appeal on almost all counts with the exception of the hazardous waste category. The Company filed an appeal with the Supreme Court for 2002. The hearing was held on December 12, 2018 and the appeal was upheld and the judgement was adjourned to the Regional Technical Committee (CTR). On December 23, 2019, the Company filed an appeal for reinstatement in CTR and an appeal for revocation with the Supreme Court. For 2003 the appeal made by the Tax Revenue Office was discussed on November 7, 2011 before the Regional Tax Commission which rejected it with a sentence filed on November 11, 2011\. The Tax Revenue Office has not appealed to the Supreme Court for 2003, 2004 and 2005 and the sentence has become final, thereby closing the litigation. No provisions for risks have been recognized. 8) Contingent assets arising from environmental certificates At December 31, 2024, A2A S.p.A. had a surplus of environmental certificates. 9) Auditors’ fees In accordance with Article 2427, paragraph 16-bis, of the Italian civil code, it is hereby reported that the company paid EY S.p.A. total fees for the legally required auditing of the annual accounts and for other services provided during the year in the amount of 528 thousand euro. 10) Registered office The registered office of the company is in Brescia in Via Lamarmora 230. 3 Attachments Separate financial statements 2024 116 A2A Separate financial statements 2024 Attachments 3.1 1/a. Statement of changes in investments in subsidiaries Shareholdings thousands of euro Balance at financial statements 12 31 2023 Changes Balance at financial statements 12 31 2024 % held Increases Decreases Write- downs Other changes Financial assets Subsidiaries: Unareti S.p.A. 1,338,836 1,338,836 100.00% Duereti S.r.l. 1,228,780 1,228,780 90.00% A2A Ambiente S.p.A. 734,634 734,634 100.00% A2A gencogas S.p.A. 606,817 606,817 100.00% A2A Calore & Servizi S.r.l. 387,950 387,950 100.00% Acinque S.p.A. 190,422 190,422 41.34% A2A Energiefuture S.p.A. 189,730 189,730 100.00% A2A Ciclo Idrico S.p.A. 167,000 167,000 100.00% LD Reti S.r.l. 153,895 8,800 162,695 100.00% Ambiente Energia Brianza S.p.A. 158,638 158,638 33.52% A2A Energia S.p.A. 122,545 122,545 100.00% A2A Rinnovabili S.p.A. 50,050 50,000 100,050 100.00% Retragas S.r.l. 30,105 30,105 8 7. 2 7 % Linea Green S.p.A. 24,806 24,806 100.00% A2A Energy Solution S.r.l. 4,575 10,000 14,575 100.00% A2A Smart City S.p.A. 14,456 14,456 100.00% A2A Services & Real Estate S.p.A. 854 10,000 10,854 81.33% Azienda Servizi Valtrompia S.p.A. 10,758 10,758 74.55% A2A E-MOBILITY S.r.l. 9,210 9,210 100.00% TEXELERA S.c. a r.l. 2,005 2,005 51.00% Camuna Energia S.r.l. 740 740 74.50% A2A Montenegro d.o.o. 102 102 100.00% A2A Security S.c.p.A. 24 24 43.71% ES Energy S.r.l. 5 (5) Proaris S.r.l. in liquidation 850 (850) A2A Alfa S.r.l. in liquidation - - 70.00% Total subsidiaries 4,197,002 1,309,585 (855) 5,505,732 Attachments Separate financial statements 2024 A2A 117 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 3.2 1/b. Statement of changes in investments in affiliates Shareholdings thousands of euro Balance at financial statements 12 31 2023 Changes Balance at financial statements 12 31 2024 % held Increases Decreases Write-downs/ disposals Reclassifications Financial assets Affiliates: Blugas Infrastrutture S.r.l. 4,269 4,269 2 7. 5 1 % SET S.p.A. 467 467 49.00% Serio Energia S.r.l. 400 400 40.00% Crit S.c.a.r.l. 225 225 33.00% ES Energy S.r.l. 5 5 50.00% Visano Società Trattamento Reflui S.c.a.r.l. in liquidation 10 (10) - 40.00% Total affiliates 5,371 - - (10) 5 5,366 118 A2A Separate financial statements 2024 Attachments 3.3 1/c. Statement of changes in investments in other companies Company Name thousands of euro Shareholding % Shareholder Carrying amount at 12 31 2024 Available-for-sale financial assets MUSA-Multilayered Urban Sustainability Action S.c.a.r.l. 7.00% A2A S.p.A. 307 Immobiliare-Fiera di Brescia S.p.A. 0.90% A2A S.p.A. 280 Others: AQM S.r.l. 7.80% A2A S.p.A. AvioValtellina S.p.A. 0.18% A2A S.p.A. Banca di Credito Cooperativo dell'Oglio e del Serio s.c. n.s. A2A S.p.A. L.E.A.P. S.c.a.r.l. 17.05% A2A S.p.A. E.M.I.T. S.r.l. in liquidation 10.00% A2A S.p.A. Stradivaria S.p.A. n.s. A2A S.p.A. DI.T.N.E. S.c.a.r.l. 1.82% A2A S.p.A. Total other financial assets 478 Total available-for-sale financial assets 1,065 Attachments Separate financial statements 2024 A2A 119 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Company Name thousands of euro Registered office Share capital at 12 31 2024 Equity at 12 31 2024 Result at 12 31 2024 % held Pro-rata amount (a) Balance at financial statements (b) Delta (a-b) Subsidiaries: Unareti S.p.A. Brescia 965,250 1,406,432 69,891 100.00% 1,406,432 1,338,836 6 7,5 9 6 Duereti S.r.l. Milan 125,000,000 376,115 (428) 90.00% 338,503 1,228,780 (890,277) A2A Ambiente S.p.A. Brescia 250,000 655,173 185,993 100.00% 655,173 734,634 (79,461) A2A gencogas S.p.A. Milan 450,000 707,162 24,370 100.00% 707,162 606,817 100,345 A2A Calore & Servizi S.r.l. Brescia 150,000 426,502 24,040 100.00% 426,502 387,950 38,552 Acinque S.p.A. Monza 197,344 445,196 21,428 41.34% 184,044 190,422 (6,378) A2A Energiefuture S.p.A. Milan 50,000 179,786 (18,014) 100.00% 179,786 189,730 (9,944) A2A Ciclo Idrico S.p.A. Brescia 70,000 226,407 9,803 100.00% 226,407 167,000 59,407 LD Reti S.r.l. Lodi 32,976 167,900 7,7 6 3 100.00% 167,900 162,695 5,205 Ambiente Energia Brianza S.p.A. Seregno (MB) 119,496 426,740 17,902 33.52% 143,043 158,638 (15,595) A2A Energia S.p.A. Milan 3,000 313,362 199,764 100.00% 313,362 122,545 190,817 A2A Rinnovabili S.p.A. Milan 50,000 69,009 (18,729) 100.00% 69,009 100,050 (31,041) Retragas S.r.l. Brescia 34,495 40,441 1,651 8 7. 2 7 % 35,293 30,105 5,188 Linea Green S.p.A. Cremona 7,000 26,638 10,424 100.00% 26,638 24,806 1,832 A2A Energy Solutions S.r.l. Milan 4,000 8,666 (5,067) 100.00% 8,666 14,575 (5,909) A2A Smart City S.p.A. Brescia 3,448 11,418 724 100.00% 11,418 14,456 (3,038) A2A Services & Real Estate S.p.A. Milan 1,050 7, 41 9 (4,144) 81.33% 6,034 10,854 (4,820) Azienda Servizi Valtrompia S.p.A. Gardone Val Trompia (BS) 8,939 20,574 (322) 74.55% 15,338 10,758 4,580 A2A E-MOBILITY S.r.l. Milan 1,000 1,035 (4,001) 100.00% 1,035 9,210 (8,175) TEXELERA S.c.a r.l. Milan 10 1,983 (27) 51.00% 1,011 2,005 (994) Camuna Energia S.r.l. Cedegolo (BS) 900 910 (75) 74.50% 678 740 (62) A2A Montenegro d.o.o. Podgorica (Montenegro) 100 28 (38) 100.00% 28 102 (74) A2A Security S.c.p.A. Milan 55 601 20 43.69% 262 24 238 A2A Alfa S.r.l. in liquidation (*) Milan 100 7 4 70.00% 5 - 5 (*) Figures of the financial statements at December 31, 2023 latest available financial statements. 3.4 2/a. List of investments in subsidiaries Attachments Separate financial statements 2024 A2A 121 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 3.5 2/b. List of investments in affiliates Company Name thousands of euro Registered office Share capital at 12 31 2023 (*) Equity at 12 31 2023 (*) Result at 12 31 2023 (*) % held Pro-rata amount (a) Balance at financial statements (b) Delta (a-b) Blugas Infrastrutture S.r.l. Mantova 14,300 16,537 83 27. 5 1 % 4,549 4,269 280 SET S.p.A. Toscolano Maderno (Bs) 104 2,942 557 49.00% 1,442 467 975 Serio Energia S.r.l. Concordia sulla Secchia (Mo) 1,000 687 (134) 40.00% 275 400 (125) Crit S.c.a.r.l. Cremona 548 209 (169) 33.00% 69 225 (156) ES Energy S.r.l. Jesi (An) 10 820 109 50.00% 410 5 405 Visano Società Trattamento Reflui S.c.a.r.l. in liquidation Brescia 25 26 \- 40.00% 10 \- 10 (*) Figures of the financial statements at December 31, 2023 latest available financial statements. 122 A2A Separate financial statements 2024 Attachments 3.6 Key data of the financial statements of the main subsidiaries and affiliates prepared according to IAS/IFRS (pursuant to art. 2429.4 of the Italian Civil Code) Subsidiaries Unareti S.p.A. Duereti S.r.l. A2A Ambiente S.p.A. A2A gencogas S.p.A. A2A Calore & Servizi S.r.l. Acinque S.p.A. A2A Energiefuture S.p.A. A2A Ciclo Idrico S.p.A. LD Reti S.r.l. Share capital Euro 965,250,000 Euro 125,000,000 Euro 250,000,000 Euro 450,000,000 Euro 150,000,000 Euro 197,343,794 Euro 50,000,000 Euro 70,000,000 Euro 32,975,717 % held A2A S.p.A. 100.00% A2A S.p.A. 90.00% A2A S.p.A. 100.00% A2A S.p.A. 100.00% A2A S.p.A. 100.00% A2A S.p.A. 41.34% A2A S.p.A. 100.00% A2A S.p.A. 100.00% A2A S.p.A. 100.00% Description thousands of euro 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 Restated (1) Revenues 562,858 493,135 - - 917,900 839,579 361,500 422,177 354,063 374,778 22,054 21,364 170,638 425,671 118,158 113,690 16,227 13,338 Gross operating income 266,162 247,380 (1,283) - 319,499 260,199 118,948 118,782 89,221 87,339 (8,611) (5,371) (2,875) 60,186 56,095 53,323 9,744 7, 6 1 4 Net operating income 121,115 90,884 (455) - 194,140 169,841 48,025 50,817 43,928 43,033 (15,315) (11,981) (33,027) 35,602 29,082 30,031 4,183 1,874 Result before taxes 98,422 58,689 (455) - 192,445 161,698 33,106 34,544 31,113 28,738 18,027 16,912 (33,850) 36,102 14,876 18,929 3,484 1,431 Result of the year 69,891 43,086 (428) - 185,993 126,925 24,370 31,594 24,040 23,050 21,428 18,563 (18,014) 37,009 9,803 13,557 7,7 6 3 5,127 Assets 2,759,487 2,595,861 412,813 - 1,868,673 1,720,967 1,251,482 1 , 3 5 7,75 2 1,042,027 979,008 822,647 807,106 656,208 717,656 626,484 567,984 290,606 276,505 Liabilities 1,353,055 1,218,754 36,698 - 1,213,500 1,125,344 544,319 660,209 615,525 936,306 3 7 7,4 5 1 363,883 476,422 513,671 400,077 348,113 122,706 111,390 Equity 1,406,432 1,377,107 376,115 - 655,173 595,624 707,162 6 97, 5 4 3 426,502 42,702 445,196 443,223 179,786 203,985 226,407 219,871 167,900 165,115 Net financial position (828,203) (770,068) (1,380) - (629,424) (618,763) (239,908) (273,387) (440,943) (388,485) (79,333) (58,607) (59,020) 234,227 (343,332) (28,378) (94,550) (86,798) (1) The economic data for 2023 have been restated for a homogeneous comparison with the 2024 financial year in relation to the application of IFRS 5. Subsidiaries Ambiente Energia Brianza S.p.A. A2A Energia S.p.A. A2A Rinnovabili S.p.A. Retragas S.r.l. Linea Green S.p.A. A2A Energy Solution S.r.l. A2A Smart City S.p.A. Azienda Servizi Valtrompia S.p.A. A2A E-MOBILITY S.r.l. A2A Security S.c.p.a. Share capital Euro 119,495,575 Euro 3,000,000 Euro 50,000,000 Euro 34,494,650 Euro 7,000,000 Euro 4,000,000 Euro 3,448,276 Euro 8,938,941 Euro 1,000,000 Euro 52,000 % held A2A S.p.A. 33.52% A2A S.p.A. 100.00% A2A S.p.A. 100.00% A2A S.p.A. 87.27% Unareti S.p.A. 4.33% A2A S.p.A. 100.00% A2A S.p.A. 100.00% A2A S.p.A. 100.00% A2A S.p.A. 74.55% Unareti S.p.A. 0.25% A2A S.p.A. 100.00% A2A S.p.A. 43.69% Unareti S.p.A. 17.46% A2A Ciclo Idrico S.p.A . 9.96% Amsa S.p.A. 8.68% A2A gencogas S.p.A. 3.75% A2A Ambiente S.p.A. 4.11% A2A Calore & Servizi S.r.l. 2.47% A2A Energiefuture S.p.A. 1.83% Altre società 8.05% Description thousands of euro 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 Revenues 1 7, 3 7 7 18,319 5,904,012 6,361,106 52,377 85,167 8,264 8,768 23,187 16,847 30,481 55,906 47,138 44,578 13,390 10,674 6,065 5,480 1,813 1,629 Gross operating income (239) (1,807) 393,746 263,541 40,528 72,227 5,464 3,814 18,771 12,015 1,549 2,615 10,972 8,833 (255) (756) (1,401) (1,380) 437 425 Net operating income (3,284) (5,067) 278,787 159,474 15,354 55,113 2,221 1,064 15,556 7,330 (1,637) 110 2,921 (1,613) (1,556) (2,054) (3,820) (2,810) 43 103 Result before taxes 1 7, 3 7 3 15,745 275,372 155,237 (14,673) 37,018 2,466 1,215 14,701 6,535 (4,985) (6,380) 573 (3,666) (526) (3,172) (4,892) (3,521) 33 83 Result of the year 17,902 16,774 199,764 106,072 (18,729) 66,384 1,651 845 10,424 4,450 (5,067) (5,794) 724 (2,754) (322) (773) (4,001) (2,841) 20 60 Assets 471,425 470,053 2,193,134 2,119,204 878,672 878,310 49,261 48,681 50,339 56,002 83,319 90,057 89,067 106,028 32,481 58,209 33,231 26,100 1,241 1,244 Liabilities 44,685 43,696 1,879,773 1,900,435 809,663 750,796 8,819 9,091 23,701 35,282 74,653 86,337 77,649 95,348 11,907 33,164 32,195 21,068 640 693 Equity 426,740 426,357 313,362 218,769 69,009 127,514 40,441 39,591 26,638 20,720 8,666 3,721 11,418 10,680 20,574 25,045 1,035 5,033 601 551 Net financial position (32,532) (28,935) (500,539) (291,033) (779,923) (724,408) 6,690 10,053 (8,726) (22,801) (62,386) (67,184) (48,637) (64,432) (5,220) (24,639) (26,407) (15,487) 107 (140) Attachments Separate financial statements 2024 A2A 123 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Subsidiaries Unareti S.p.A. Duereti S.r.l. A2A Ambiente S.p.A. A2A gencogas S.p.A. A2A Calore & Servizi S.r.l. Acinque S.p.A. A2A Energiefuture S.p.A. A2A Ciclo Idrico S.p.A. LD Reti S.r.l. Share capital Euro 965,250,000 Euro 125,000,000 Euro 250,000,000 Euro 450,000,000 Euro 150,000,000 Euro 197,343,794 Euro 50,000,000 Euro 70,000,000 Euro 32,975,717 % held A2A S.p.A. 100.00% A2A S.p.A. 90.00% A2A S.p.A. 100.00% A2A S.p.A. 100.00% A2A S.p.A. 100.00% A2A S.p.A. 41.34% A2A S.p.A. 100.00% A2A S.p.A. 100.00% A2A S.p.A. 100.00% Description thousands of euro 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 Restated (1) Revenues 562,858 493,135 - - 917,900 839,579 361,500 422,177 354,063 374,778 22,054 21,364 170,638 425,671 118,158 113,690 16,227 13,338 Gross operating income 266,162 247,380 (1,283) - 319,499 260,199 118,948 118,782 89,221 87,339 (8,611) (5,371) (2,875) 60,186 56,095 53,323 9,744 7, 6 1 4 Net operating income 121,115 90,884 (455) - 194,140 169,841 48,025 50,817 43,928 43,033 (15,315) (11,981) (33,027) 35,602 29,082 30,031 4,183 1,874 Result before taxes 98,422 58,689 (455) - 192,445 161,698 33,106 34,544 31,113 28,738 18,027 16,912 (33,850) 36,102 14,876 18,929 3,484 1,431 Result of the year 69,891 43,086 (428) - 185,993 126,925 24,370 31,594 24,040 23,050 21,428 18,563 (18,014) 37,009 9,803 13,557 7,7 6 3 5,127 Assets 2,759,487 2,595,861 412,813 - 1,868,673 1,720,967 1,251,482 1 , 3 5 7,75 2 1,042,027 979,008 822,647 807,106 656,208 717,656 626,484 567,984 290,606 276,505 Liabilities 1,353,055 1,218,754 36,698 - 1,213,500 1,125,344 544,319 660,209 615,525 936,306 3 7 7,4 5 1 363,883 476,422 513,671 400,077 348,113 122,706 111,390 Equity 1,406,432 1,377,107 376,115 - 655,173 595,624 707,162 6 97, 5 4 3 426,502 42,702 445,196 443,223 179,786 203,985 226,407 219,871 167,900 165,115 Net financial position (828,203) (770,068) (1,380) - (629,424) (618,763) (239,908) (273,387) (440,943) (388,485) (79,333) (58,607) (59,020) 234,227 (343,332) (28,378) (94,550) (86,798) (1) The economic data for 2023 have been restated for a homogeneous comparison with the 2024 financial year in relation to the application of IFRS 5. Subsidiaries Ambiente Energia Brianza S.p.A. A2A Energia S.p.A. A2A Rinnovabili S.p.A. Retragas S.r.l. Linea Green S.p.A. A2A Energy Solution S.r.l. A2A Smart City S.p.A. Azienda Servizi Valtrompia S.p.A. A2A E-MOBILITY S.r.l. A2A Security S.c.p.a. Share capital Euro 119,495,575 Euro 3,000,000 Euro 50,000,000 Euro 34,494,650 Euro 7,000,000 Euro 4,000,000 Euro 3,448,276 Euro 8,938,941 Euro 1,000,000 Euro 52,000 % held A2A S.p.A. 33.52% A2A S.p.A. 100.00% A2A S.p.A. 100.00% A2A S.p.A. 87.27% Unareti S.p.A. 4.33% A2A S.p.A. 100.00% A2A S.p.A. 100.00% A2A S.p.A. 100.00% A2A S.p.A. 74.55% Unareti S.p.A. 0.25% A2A S.p.A. 100.00% A2A S.p.A. 43.69% Unareti S.p.A. 17.46% A2A Ciclo Idrico S.p.A . 9.96% Amsa S.p.A. 8.68% A2A gencogas S.p.A. 3.75% A2A Ambiente S.p.A. 4.11% A2A Calore & Servizi S.r.l. 2.47% A2A Energiefuture S.p.A. 1.83% Altre società 8.05% Description thousands of euro 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 Revenues 1 7, 3 7 7 18,319 5,904,012 6,361,106 52,377 85,167 8,264 8,768 23,187 16,847 30,481 55,906 47,138 44,578 13,390 10,674 6,065 5,480 1,813 1,629 Gross operating income (239) (1,807) 393,746 263,541 40,528 72,227 5,464 3,814 18,771 12,015 1,549 2,615 10,972 8,833 (255) (756) (1,401) (1,380) 437 425 Net operating income (3,284) (5,067) 278,787 159,474 15,354 55,113 2,221 1,064 15,556 7,330 (1,637) 110 2,921 (1,613) (1,556) (2,054) (3,820) (2,810) 43 103 Result before taxes 1 7, 3 7 3 15,745 275,372 155,237 (14,673) 37,018 2,466 1,215 14,701 6,535 (4,985) (6,380) 573 (3,666) (526) (3,172) (4,892) (3,521) 33 83 Result of the year 17,902 16,774 199,764 106,072 (18,729) 66,384 1,651 845 10,424 4,450 (5,067) (5,794) 724 (2,754) (322) (773) (4,001) (2,841) 20 60 Assets 471,425 470,053 2,193,134 2,119,204 878,672 878,310 49,261 48,681 50,339 56,002 83,319 90,057 89,067 106,028 32,481 58,209 33,231 26,100 1,241 1,244 Liabilities 44,685 43,696 1,879,773 1,900,435 809,663 750,796 8,819 9,091 23,701 35,282 74,653 86,337 77,649 95,348 11,907 33,164 32,195 21,068 640 693 Equity 426,740 426,357 313,362 218,769 69,009 127,514 40,441 39,591 26,638 20,720 8,666 3,721 11,418 10,680 20,574 25,045 1,035 5,033 601 551 Net financial position (32,532) (28,935) (500,539) (291,033) (779,923) (724,408) 6,690 10,053 (8,726) (22,801) (62,386) (67,184) (48,637) (64,432) (5,220) (24,639) (26,407) (15,487) 107 (140) 124 A2A Separate financial statements 2024 Attachments 3.7 Key data of the financial statements of the main subsidiaries and affiliates prepared according to ITALIAN GAAP (pursuant to art. 2429.4 of the Italian Civil Code) Subsidiaries A2A Services & Real Estate S.p.A. Texelera S.c.a.r.l. Camuna Energia S.r.l. Share capital Euro 1,050,000 Euro 10,000 Euro 900,000 % held A2A S.p.A. 81.33% A2A S.p.A. 51.00% A2A S.p.A. 74.50% Linea Green S.p.A. 14.50% Description thousands of euro 12 31 2024 12 31 2023 12 31 2024 12 31 2023 12 31 2024 12 31 2023 Revenues 52,878 11,336 - - 416 413 Gross operating income (4,079) 453 - - 4 7,0 2 5 93,789 Net operating income (5,163) 196 - - (46,285) 1,002 Result before taxes (5,292) 189 (27) - (96,655) (57,101) Result of the year (4,144) 17 (27) - (75,135) (45,021) Assets 33,696 17,635 2,189 - 40 39 Liabilities 26,277 16,140 205 - (870) (946) Equity 7, 4 1 9 1,494 1,983 - 910 985 Net financial position 6,367 798 2,008 - (1,218) (963) Affiliates Blugas Infrastrutture S.r.l. Società Elettrica di Toscolano Maderno S.r.l. Serio Energia S.r.l. Crit S.c.a.r.l. ES Energy S.r.l. Visano Società Trattamento Reflui S.c.a.r.l. Share capital Euro 14,300,000 Euro 104,000 Euro 1,000,000 Euro 548,400 Euro 10,000 Euro 25,000 % held A2A S.p.A. 27.51% A2A S.p.A. 49.00% A2A S.p.A. 40.00% A2A S.p.A. 33.00% A2A S.p.A. 50.00% A2A S.p.A. 40.00% Description thousands of euro 12 31 2023 12 31 2022 12 31 2023 12 31 2022 12 31 2023 12 31 2022 12 31 2023 12 31 2022 12 31 2023 12 31 2022 12 31 2023 12 31 2022 Revenues 2,216 2,039 1,191 879 2,922 3,831 323 182 10,221 13,628 22 66 Gross operating income 1,706 1,576 902 644 199 (912) (71) (198) 186 469 - - Net operating income 814 731 751 491 (58) (1,168) (156) (269) 186 469 - - Result before taxes 245 182 767 485 (134) (1,168) (169) (274) 186 469 - - Result of the year 83 116 557 351 (134) (1,168) (169) (268) 109 336 - - Assets 35,567 35,128 3,364 2,892 1,388 3,065 823 875 1,692 1,856 32 81 Liabilities 19,030 18,674 422 508 702 2,245 613 497 873 945 6 55 Equity 16,537 16,454 2,942 2,385 687 820 209 378 820 910 26 26 Net financial position (12,588) (12,470) 814 375 672 599 N.A. N.A. 907 1,141 5 - Attachments Separate financial statements 2024 A2A 125 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors Affiliates Blugas Infrastrutture S.r.l. Società Elettrica di Toscolano Maderno S.r.l. Serio Energia S.r.l. Crit S.c.a.r.l. ES Energy S.r.l. Visano Società Trattamento Reflui S.c.a.r.l. Share capital Euro 14,300,000 Euro 104,000 Euro 1,000,000 Euro 548,400 Euro 10,000 Euro 25,000 % held A2A S.p.A. 27.51% A2A S.p.A. 49.00% A2A S.p.A. 40.00% A2A S.p.A. 33.00% A2A S.p.A. 50.00% A2A S.p.A. 40.00% Description thousands of euro 12 31 2023 12 31 2022 12 31 2023 12 31 2022 12 31 2023 12 31 2022 12 31 2023 12 31 2022 12 31 2023 12 31 2022 12 31 2023 12 31 2022 Revenues 2,216 2,039 1,191 879 2,922 3,831 323 182 10,221 13,628 22 66 Gross operating income 1,706 1,576 902 644 199 (912) (71) (198) 186 469 - - Net operating income 814 731 751 491 (58) (1,168) (156) (269) 186 469 - - Result before taxes 245 182 767 485 (134) (1,168) (169) (274) 186 469 - - Result of the year 83 116 557 351 (134) (1,168) (169) (268) 109 336 - - Assets 35,567 35,128 3,364 2,892 1,388 3,065 823 875 1,692 1,856 32 81 Liabilities 19,030 18,674 422 508 702 2,245 613 497 873 945 6 55 Equity 16,537 16,454 2,942 2,385 687 820 209 378 820 910 26 26 Net financial position (12,588) (12,470) 814 375 672 599 N.A. N.A. 907 1,141 5 - 126 A2A Separate financial statements 2024 Attachments 3.8 Certification of the financial statements pursuant to article 154-bis, paragraph 5 of Legislative Decree no. 58/98 1\. The undersigned, Renato Mazzoncini, as CEO of A2A S.p.A., and Luca Moroni, as Financial Reporting Manager of A2A S.p.A. also considering the provisions of article 154-bis, paragraphs 3 and 4, of Legislative Decree no. 58 of February 24, 1998, as amended, hereby attest: • the adequacy in relation to the characteristics of the company and • the effective application of administrative and accounting procedures for the preparation of financial statements in the year 2024. 2\. It is also certified that: 2.1 the annual financial statements at December 31, 2024: a) have been prepared in accordance with International Financial Reporting Standards as endorsed by the European Community pursuant to Regulation (EC) no. 1606/2002 of the European Parliament and of the Council of July 19, 2002; b) correspond to the information contained in the accounting ledgers and records; c) provide a true and fair representation of the equity, economic and financial situation of the issuer; 2.2 the report on operations includes reliable analysis on the performance, result of operations and the business of the issuer, as well as description of principal risks and uncertainties to which is exposed. Milan, March 20, 2025 Renato Mazzoncini (Chief Executive Officer) Luca Moroni (Financial Reporting Manager) Separate financial statements 2024 4 Independent Auditors’ Report 128 A2A Separate financial statements 2024 Independent Auditors’ Report 4 Independent Auditors’ Report EY S.p.A. Sede Legale: Via Meravigli, 12 – 20123 Milano Sede Secondaria: Via Lombardia, 31 – 00187 Roma Capitale Sociale Euro 2.975.000 i.v. Iscritt a alla S.O. del Regist r o delle Imprese pr esso la CCIAA di Milano Monza Br ianza Lodi Codice fiscale e numero di iscrizione 00434000584 - numero R.E.A. di Milano 606158 - P.IVA 00891231003 Iscritta al Regist ro Revisori Legali al n. 70945 Pubblicato sulla G.U. Suppl. 13 - IV Serie Speciale del 17/ 2/ 1998 A member fir m of Ernst & Young Global Limit ed EY S.p.A. Via Meravigli, 12 20123 Milano Tel: +39 02 722121 Fax: +39 02 722122037 ey.com Independent auditor’s report pursuant to art icle 14 of Legislat ive Decree n. 39, dated 27 January 2010 and article 10 of EU Regulation n. 537/ 2014 (Translation from t he original Italian text) To t he Shareholders of A2A S.p.A. Report on the Audit of t he Financial Statements Opinion We have audited the financial statements of A2A S.p.A. (the Company), which comprise the balance sheet as at 31 December 2024, and the income statement, t he statement of comprehensive income, statement of changes in equity and cash-flow statement for the year then ended, and notes to the financial statements, including material accounting policy information. In our opinion, the financial statements give a true and fair view of the financial position of the Company as at 31 December 2024, and of it s financial performance and its cash flows for the year then ended in accordance with IFRS accounting standards issued by International Accounting Standards Board as adopted by the European Union and with the regulations issued for implementing art. 9 of Legislative Decree n. 38/2005. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our responsibilit ies under t hose standards are fur t her described in t he Auditor’s Responsibilities for the Audit of the Financial Statements section of our repor t. We are independent of t he Company in accordance with the regulations and standards on ethics and independence applicable to audits of financial statements under It alian Laws. We believe t hat the audit evidence we have obt ained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matt ers Key audit matters are those matters that , in our professional judgment , were of most significance in our audit of the financial statements of the current period. These matters were addressed in t he context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. EY S.p.A. Sede Legale: Via Meravigli, 12 – 20123 Milano Sede Secondaria: Via Lombardia, 31 – 00187 Roma Capitale Sociale Euro 2.975.000 i.v. Iscritt a alla S.O. del Regist r o delle Imprese pr esso la CCIAA di Milano Monza Br ianza Lodi Codice fiscale e numero di iscrizione 00434000584 - numero R.E.A. di Milano 606158 - P.IVA 00891231003 Iscritta al Regist ro Revisori Legali al n. 70945 Pubblicato sulla G.U. Suppl. 13 - IV Serie Speciale del 17/ 2/ 1998 A member fir m of Ernst & Young Global Limit ed EY S.p.A. Via Meravigli, 12 20123 Milano Tel: +39 02 722121 Fax: +39 02 722122037 ey.com Independent auditor’s report pursuant to art icle 14 of Legislat ive Decree n. 39, dated 27 January 2010 and article 10 of EU Regulation n. 537/ 2014 (Translation from t he original Italian text) To t he Shareholders of A2A S.p.A. Report on the Audit of t he Financial Statements Opinion We have audited the financial statements of A2A S.p.A. (the Company), which comprise the balance sheet as at 31 December 2024, and the income statement, t he statement of comprehensive income, statement of changes in equity and cash-flow statement for the year then ended, and notes to the financial statements, including material accounting policy information. In our opinion, the financial statements give a true and fair view of the financial position of the Company as at 31 December 2024, and of it s financial performance and its cash flows for the year then ended in accordance with IFRS accounting standards issued by International Accounting Standards Board as adopted by the European Union and with the regulations issued for implementing art. 9 of Legislative Decree n. 38/2005. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our responsibilit ies under t hose standards are fur t her described in t he Auditor’s Responsibilities for the Audit of the Financial Statements section of our repor t. We are independent of t he Company in accordance with the regulations and standards on ethics and independence applicable to audits of financial statements under It alian Laws. We believe t hat the audit evidence we have obt ained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matt ers Key audit matters are those matters that , in our professional judgment , were of most significance in our audit of the financial statements of the current period. These matters were addressed in t he context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Independent Auditors’ Report Separate financial statements 2024 A2A 129 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 2 We identified the following key audit matters: Key Audit Mat t er Audit Response Valuat ion of Shareholdings in subsidiaries and goodwill The financial statements as at 31 December 2024 include Shareholdings in subsidiaries balance amount t o 5.506 million euro and goodwill amounts to 67 million euro, allocated to the different Cash Generating Units (CGUs). The processes and methodologies for assessing and determining the recoverable amount of each shareholdings in subsidiaries and each CGU are based on complex assumptions, that by their nature imply the use of the management’s judgment , in particular wit h reference to (i) the identification of impairment indicators of each investment, (ii) t he forecast of fut ure cash flows relat ing to t he period covered by the Group's strategic plan 2024-2035 approved and updated by Directors on 11 November 2024, (iii) the normalized cash flows or the net realized value of t he assets assumed as a basis for t he terminal value, (iv) the long-term growth rates and discount rat es applied t o such cash flows forecast s and (v) the estimate of Industrial Residual Value (Valore Indust riale Residuo). Such assumptions could be affected by future expectation and volatility of energy market conditions and macroeconomic events, as well as by t he potent ial changes in regulat ions, new authorization processes and legislative measur es. In consideration of t he judgment required and of the complexity of the assumptions used in the estimate of the recoverable amount of investments and goodwill, we have considered t hat t his area represent s a key audit matter. The disclosures related to t he recoverabilit y of the investment in subsidiaries are included in the paragraph “Use of estimates” and in note n.2 “ Intangible Assets” and n.3 "Shareholdings and other non-current financial assets" of the notes to the financial statements. Our audit procedures related to this key audit matters included, among ot hers: assessment of t he processes implemented by the Company related to the preparat ion of the Group’s strategic plan and the impairment test; assessment of t he appropr iateness of t he determination of the CGUs and the allocating of assets and liabilities to the carrying value of ea ch CGU; assessment of the report produced by the management’s third party specialists, as well as the assessment of their competence, capability and objectivity; assessment of cash f lows forecasts and t heir consistency with energy market conditions, macroeconomic scenarios, regulatory environment, authorization processes and legislat ive measures; assessment of the consistency between the future cash flows assumed in the Group A2A’s st rat egic plan and the cash f lows forecast s assumed for shareholdings in subsidiaries and each CGU, appropriately adjusted in order to exclude those that arise from future improving or enhancing the asset’s performance; assessment of t he accuracy of act ual result s against previous forecasts; assessment of the long-term growth rates and discount rat es. In performing our procedures, we leveraged t he used of EY valuat ion specialists who performed an independent calculat ion. Lastly, we reviewed the adequacy of the disclosures included in the notes to the financial statement s with reference to the recoverability analysis of shareholdings in subsidiaries and goodwill. 130 A2A Separate financial statements 2024 Independent Auditors’ Report 3 Responsibilit ies of Directors and Those Charged wit h Governance for t he Financial Statement s The Directors are responsible for the preparation of the financial stat ements that give a true and fair view in accordance with IFRS accounting standards issued by International Accounting Standards Board as adopted by the European Union and with t he regulations issued for implementing art. 9 of Legislative Decree n. 38/2005, and, within the terms provided by the law, for such internal control as they determine is necessary to enable t he preparat ion of financial statements that are free from mat erial misstatement, whether due to fraud or error. The Directors are responsible for assessing the Company’s ability to continue as a going concern and, when preparing t he financial statement s, for the appropriateness of the going concern assumption, and for appropriate disclosure t hereof. The Directors prepare t he financial statements on a going concern basis unless t hey eit her intend to liquidate t he Company or to cease operat ions, or have no realistic alternative but to do so. The statutory audit committee (“ Collegio Sindacale” ) is responsible, within the terms provided by the law, for overseeing the Company’s financial reporting process. Auditor’s Responsibilities for t he Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether t he financial statements as a whole are f ree from material misstatement , whether due to fraud or error, and to issue an auditor ’s repor t that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conduct ed in accordance with International St andards on Audit ing (ISA It alia) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these f inancial statements. As par t of an audit in accordance wit h International Standards on Audit ing (ISA Italia), we have exercised professional judgment and maintained professional skepticism throughout the audit. In addition: we have ident ified and assessed the risks of material misstatement of the financial statements, whether due to fraud or error, designed and performed audit procedures responsive to those risks, and obtained audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; we have obt ained an understanding of internal cont rol relevant to t he audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control; we have evaluated the appropriat eness of accounting policies used and the reasonableness of accounting est imates and related disclosures made by the Directors; we have concluded on the appropriateness of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a mat erial uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to cont inue as a going concern. If we conclude that a material uncer tainty exists, we are required to draw attent ion in our auditor ’s report to the related disclosures in the financial st atement s or, if such disclosures are inadequate, to consider this matter in forming our opinion. Our conclusions are based on the audit evidence obtained up to t he date of our auditor ’s repor t. However, future event s or condit ions may cause the Company to cease to continue as a going concern; Independent Auditors’ Report Separate financial statements 2024 A2A 131 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 4 we have evaluated the overall presentation, st ructure and content of the financial stat ement s, including the disclosures, and whet her t he financial stat ement s represent t he underlying transactions and events in a manner that achieves fair presentation. We have communicated wit h those charged wit h governance, ident if ied at an appropriate level as required by ISA Italia, regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We have provided those charged wit h governance with a statement t hat we have complied wit h the ethical and independence requirements applicable in Italy, and we have communicated them all matters that may reasonably be thought to bear on our independence, and where applicable, the actions taken to eliminate relevant risks or the safeguard measures applied. From the matters communicated wit h those charged wit h governance, we have determined those matters that were of most significance in the audit of the financial statements of the current period and are t herefore the key audit mat t ers. We have described these matters in our auditor ’s repor t. Addit ional informat ion pursuant to art icle 10 of EU Regulation n. 537/ 14 The shareholders of A2A S.p.A., in the general meet ing held on 11 June 2015, engaged us to perform the audits of the separate and consolidated financial statements for each of the years ending 31 December 2016 to 31 December 2024. We declare t hat we have not provided prohibited non-audit services, referred to article 5, par. 1, of EU Regulation n. 537/ 2014, and that we have remained independent of the Company in conducting the audit . We confirm that the opinion on the financial statements included in this report is consistent with the content of the additional report to the audit committee (Collegio Sindacale) in their capacity as audit committee, prepared pursuant to article 11 of the EU Regulation n. 537/2014. Report on compliance wit h other legal and regulatory requirements Opinion on the compliance wit h Delegated Regulation (EU) 2019/ 815 The Directors of A2A S.p.A. are responsible for applying the provisions of the European Commission Delegat ed Regulations (EU) 2019/ 815 for t he regulator y t echnical standards on t he specificat ion of a single elect ronic report ing for mat (ESEF – European Single Electronic Format) (t he “ Delegated Regulation” ) to the financial statements as of 31 December 2024, to be included in the annual financial report. We have performed the procedures under t he auditing standard SA It alia n. 700B, in order to express an opinion on the compliance of the financial statements as at 31 December 2024 with the provisions of t he Delegated Regulation. In our opinion, the financial statements as at 31 December 2024 have been prepared in the XHTML format in compliance with the provisions of the Delegated Regulation. 132 A2A Separate financial statements 2024 Independent Auditors’ Report 5 Opinion and statement pursuant t o art icle 14, paragraph 2, subparagraph e), e-bis) and e-ter) of Legislative Decree n. 39 dated 27 January 2010 and pursuant t o art icle 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998 The Directors of A2A S.p.A. are responsible for t he preparation of t he Report on Operations and of the Report on Corporate Governance and Ownership Structure of A2A S.p.A. as at 31 December 2024, including their consistency with the related financial statements and their compliance with the applicable laws and regulations. We have performed the procedures required under audit standard SA Italia n. 720B, in order to: express an opinion on the consistency of the Report on Operations and of specific informat ion included in t he Report on Corporate Governance and Ownership St ruct ure as provided for by article 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998, with the financial statements; express an opinion of the compliance with the laws and regulations of the Report on Operations and the above ment ioned specif ic information included in the Report on Corporate Governance and Ownership St ructure pursuant ar t icle n. 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998; issue a statement on any material misstatement in the Report on Operations and in certain specific information contained in the Report on Corporate Governance and Ownership Structure pursuant article n. 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998. In our opinion, the Report on Operations and the specific information contained in the Report on Corporate Governance and Ownership St ructure pursuant ar t icle n. 123-bis, paragraph 4, of Legislat ive Decree n. 58, dated 24 Febr uary 1998, are consistent with t he financial statements of A2A S.p.A. as at 31 December 2024. Furthermore, in our opinion, the Report on Operations and the specific information contained in the Report on Corporate Governance and Ownership Structure pursuant article n. 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998, comply with the applicable laws and regulat i ons. With reference to the statement required by art. 14, paragraph 2, subparagraph e-t er ), of Legislative Decree n. 39, dated 27 January 2010, based on our knowledge and understanding of the entity and its environment obtained through our audit, we have no mat ters to report . Milan, 31 March 2025 EY S. p.A. Signed by: Enrico Lenzi, Auditor This independent auditor’s report has been translated into the English language solely for the convenience of international readers. Accordingly, only the original text in Italian language is authoritative. 5 Report of the Board of Auditors Separate financial statements 2024 134 A2A Separate financial statements 2024 Report of the Board of Auditors 1 REPORT OF THE BOARD OF STATUTORY AUDITORS TO THE SHAREHOLDERS’ MEETING (pursuant to article 2429 Legislative Decree 2/1998 and article 153 Civil Code) Shareholders, the Board of Statutory Auditors of A2A S.p.A. (hereinafter also "A2A" or the "Company") is required to report to the Shareholders' Meeting called to approve the financial statements for the year ended December 31, 2024, with respect to the supervisory activities performed and any reprehensible facts or omissions found, pursuant to Art. 153 of Legislative Decree no.58/1998 (hereinafter also “Consolidated Law on Finance” or “TUF”) and Article 2429, paragraph 2 of the Italian Civil Code. Pursuant to art. 149 of the Consolidated Law on Finance, the Board of Statutory Auditors is also called upon to supervise, inter alia, compliance with the law, the Memorandum of Association and the Articles of Association, the principles of proper administration, the adequacy of the administrative and accounting system and the reliability of the latter to represent management events, the internal control and risk management system, the system of delegation of powers and control in respect of subsidiaries, to ensure that the latter provide all the information necessary to fulfil the required reporting obligations. The Board of Statutory Auditors is also called upon to make any proposals regarding the annual financial statements and their approval, for those aspects falling within its remit. The activities performed by the Board of Statutory Auditors during 2024 and up to the date of today's Report are reported below, also with reference to the requirements of CONSOB Communication no. DEM/1025564 of April 6, 2001 and subsequent amendments and/or 5 Report of the Board of Auditors Report of the Board of Auditors Separate financial statements 2024 A2A 135 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 2 additions. The draft financial statements and the consolidated financial statements were approved by the Company's Board of Directors on March 20, 2025 and together with the relevant Annexes were made available within the terms set forth in Article 154-ter of the Consolidated Law on Finance. Appointment and operation of the Board of Statutory Auditors. The current Board of Statutory Auditors was appointed by the Shareholders' Meeting of A2A on April 28, 2023 and will remain in office until the Shareholders' Meeting that will be called to approve the financial statements for the year ending December 31, 2025.The following were appointed as Standing Auditors: Ms. Silvia Muzi (Chair), Mr. Maurizio Dallocchio (Standing Auditor) and Ms. Chiara Segala (Standing Auditor).In addition, Ms. Patrizia Lucia Maria Riva and Mr. Vieri Chimenti were appointed as Alternate Auditors. After the appointment of the Corporate Bodies, the Board of Statutory Auditors verified, with a positive outcome, the fulfilment of the requirements of professionalism, honourableness and independence envisaged by art. 148 of the Consolidated Law on Finance and Article 2399 of the Italian Civil Code, as well as verified the compliance with the limits on the accumulation of offices envisaged by art. 144-terdecies of the Issuers' Regulation and the compliance with the criteria of competence and fairness, envisaged both by the laws in force and by Article 30, paragraphs .2 and .3 of the Articles of Association. The same assessment was again carried out with a positive outcome in January 2025, also in compliance with the procedure provided for by the Rules of Conduct of the Board of Statutory Auditors of listed companies issued by the National Council of Chartered Accountants and Accounting Experts. During the financial year 2024, the Board of Statutory Auditors performed its duties in accordance with the Italian Civil Code, the Consolidated Law on Finance, the indications 136 A2A Separate financial statements 2024 Report of the Board of Auditors 3 provided by CONSOB on the subject, as well as the Rules of Conduct for the Board of Statutory Auditors of Listed Companies issued by the National Council of Chartered Accountants and Accounting Experts. The supervisory activity was also carried out according to the provisions of the Corporate Governance Code (January 2020 edition) to which A2A adheres and not least to the provisions of Legislative Decree no. 39 of 2010 as subsequently amended and integrated, i.e. the function that the Board performs with regard to its role as Internal Control and Auditing Committee (CCIRC) which is responsible for further specific control and monitoring functions in terms of financial reporting, statutory auditing and sustainability reporting. 1. Compliance with the law and the Articles of Associations. The Company acted in accordance with the provisions of the Italian Civil Code and the rules and regulations applicable to Issuers with listed shares, as well as the provisions of the Corporate Governance Code. The Annual Report on Corporate Governance and Ownership Structure was approved by the Board of Directors at its meeting on March 20, 2025.It fully illustrates all the provisions of Article 123-bis of the Consolidated Law on Finance, as well as the recommendations issued by the Chair of the Corporate Governance Committee, most recently published on December 17, 2024 and brought to the attention of both the Board of Statutory Auditors and the Board of Directors, to the extent of their responsibilities. The Board of Statutory Auditors also monitored compliance with the provisions of the law and the Articles of Association, as well as any other relevant regulatory provisions, also through its participation in the Board of Directors' meetings and in the Internal Board Committees. The Shareholders' Meeting of April 28, 2023 also appointed the current Board of Directors, which is composed of a total of 12 members, 10 of whom are Independent pursuant to the Consolidated Law on Finance, and 8 of whom are also Independent pursuant to the Corporate Governance Code. The Chief Executive Officer also has the title of General Manager. Report of the Board of Auditors Separate financial statements 2024 A2A 137 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 4 The Board of Statutory Auditors verified the correct application of the criteria and the assessment procedure adopted by the Board of Directors to evaluate the independence requirements of its members. The Control Body also verified that the Board had carried out its annual self-assessment process, with positive results, both in terms of its qualitative and quantitative composition and its functioning. The board review process was also carried out with the help of an external advisor and the results are also reported in the Report on corporate governance and ownership structures, as well as evaluated by this Board of Statutory Auditors, which was also called within the same board review, for the aspects of competence. Following the appointment of the Board, the Internal Board Committees were also set up, namely: the Control and Risk Committee, the Remuneration and Appointments Committee, the ESG and Territory Relations Committee and the Related Parties Committee. The Board of Statutory Auditors also met with the Supervisory Board, which held a total of 13 meetings in the year 2024, receiving the information referred to in Legislative Decree no. 231/2001 and also taking note of the specific information reported in the Half-Yearly Reports by the same Board. On the merits, it is noted that the Board of Directors adopted the latest updated MOG in its general part and in the special parts with a resolution of September 24, 2024 in consideration of both legislative and organisational changes that occurred after the date of the last revision (November 14, 2023).The Board of Statutory Auditors also noted that A2A has adopted the Code of Ethics (last updated in May 2018) and the Anti-Corruption Policy (last updated in July 2019) on a voluntary basis. Both documents are published on the Company's website. During the course of the year, the Board of Statutory Auditors also maintained a continuous exchange of information flows with the control bodies of the Group companies of greater economic size and strategic importance. Overall, from the audits completed to date and the information flows also received from management, the organisational structure and the internal procedures adopted appear to be compliant. Therefore, no violations of the Law, the Articles of Association or regulations are to 138 A2A Separate financial statements 2024 Report of the Board of Auditors 5 be reported. The Board of Statutory Auditors also points out that there have been no reports pursuant to Articles 25-octies and 25-novies of Legislative Decree no. 14 of January 12, 2019. During the year, the Company did not receive any requests for information from Consob pursuant to the Consolidated Law on Finance. 2. Observations on compliance with the principles of proper administration. In 2024, the Board attended all the meetings of the Board of Directors, for a total of 14 sessions, during which it was informed about the activities carried out and the most significant transactions made by the Company and its subsidiaries. In this context, the Board of Statutory Auditors received from the Chair and CEO the information regarding the exercise of the respective proxies. Furthermore, the Board of Statutory Auditors held 21 meetings during the year 2024 (of which 15 since April 28, 2023, the date of appointment of the Board of Statutory Auditors currently in office), during which exchanges of information also took place with the Independent Auditors, for the aspects falling within their remit, with the Financial Reporting Manager, with the Internal Audit and with the owners of the Risk, Compliance, Legal and Human Resource functions, as well as with the Managers of the operating BUs, in order to verify and ascertain the correctness of the transactions resolved or deliberated upon, in the absence of elements of imprudence or that could compromise the Company's assets. The Board of Statutory Auditors has obtained from the Chief Executive Officer, with the frequency required by the regulations and on the occasion of Board meetings, the due information on the activities carried out and on the most significant economic, financial and equity transactions resolved and implemented during the year, carried out by the Company as well as, pursuant to Article 150, paragraph 1 of the Consolidated Law on Finance, on those implemented by subsidiaries, as adequately represented in the Report on Operations to which Report of the Board of Auditors Separate financial statements 2024 A2A 139 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 6 reference is made, as well as on the general performance and its foreseeable evolution, in this regard the Board of Statutory Auditors has no issues to report. The Board of Statutory Auditors also attended 13 meetings of the Control and Risk Committee, 14 meetings of the Remuneration and Appointments Committee, 24 meetings of the Related Parties Committee, and 10 meetings of the ESG and Territory Relations Committee, gaining knowledge of the work they performed during the year. The Control Body also participated in the Shareholders' Meeting of April 24, 2024. In 2025, to date, the Board of Statutory Auditors has attended 4 meetings of the Board of Directors, 4 meetings of the Control and Risk Committee, 3 meetings of the Remuneration and Appointments Committee, 2 meetings of the Related Parties Committee, 3 meetings of the ESG and Territory Relations Committee, and has held 7 meetings of the Board of Statutory Auditors. The Board of Statutory Auditors actively participated in the aforementioned meetings and acknowledges the significant activity carried out by the Endo-board Committees in their advisory and proactive role vis-à-vis the Board of Directors. The Board of Statutory Auditors has acquired adequate information necessary and functional for the performance of its control and supervisory duties, including the most important financial and asset-related information. In light of this information, it has no observations to make with regard to compliance with the principles of proper administration. 3\. Most significant transactions with regard to the Company’s financial position, results of operations and cash flows. The most significant economic, financial and equity transactions and events that took place in 2024 were as follows: - A2A has finalised the acquisition of Enel's electricity distribution assets in the provinces of Milan and Brescia - approval of the new Strategic Plan 2024-2035 and its update; 140 A2A Separate financial statements 2024 Report of the Board of Auditors 7 - approval by the Shareholders' Meeting of April 24, 2024 of the financial statements and the proposal formulated by the Board of Directors to distribute a dividend per ordinary share of 0.0958 euro. - On May 7, 2024, the A2A Group, through its subsidiary A2A Rinnovabili, acquired 70% of Parco Solare Friulano 2, a company owned by EnValue Italia and MSE Solar Energy Italia, which obtained permission to build and operate a photovoltaic plant in the municipalities of Santa Maria la Longa and Pavia di Udine (UD), with an authorized capacity of 112.1 MWp. - issuance of the first Hybrid Green Bond with a nominal value of 750 million euro to support investments in the energy transition and the circular economy; - signing of a contract with Ascopiave S.p.A for the purchase and sale of gas network assets whose completion of the closing is expected by July 2025; - launch of a new EMTN Program approved by Consob and listed on the Borsa Italiana MOT. The programme will allow future bond issues of up to 7 billion euro. Details of all transactions having a significant impact on the Company's profitability, assets and liabilities or financial position are provided in the "Significant events during the year" section of the Report on Operations. Significant events after December 31, 2024 include: - the issue, on January 23, 2025, of the first 500 million euro European Green Bond with a 10-year maturity; - the award of 4.6 GW in the capacity market auction for the delivery year 2027. The Board of Statutory Auditors received from the Directors and management, with due periodicity, information on the activities carried out and transactions of major economic, financial and equity importance carried out by the Company and its subsidiaries. In addition to what is presented in this Report, please refer to the Report on Operations and the Consolidated Notes to the Financial Statements for a full description of the most significant transactions. Report of the Board of Auditors Separate financial statements 2024 A2A 141 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 8 With respect to the aforementioned transactions, the Board of Statutory Auditors acquired adequate information that allowed it to reasonably believe that the aforementioned transactions complied with the law, the Articles of Association and the principles of proper administration. The management decisions were not imprudent, risky or in conflict with the resolutions passed by the Shareholders' Meeting or in any case such as to compromise the integrity of the Company's assets. There were no atypical and/or unusual transactions, nor were there any conflicts of interest. Transactions with related parties have been subject to the transparency procedures provided for by current legislation and which we will detail in the following section. The Directors have also set out in the Report on Operations information on significant events occurring after the end of the financial year and on the outlook for operations. 4. Atypical and/or unusual transactions, carried out with third parties, intragroup or related parties. The Board of Statutory Auditors has not found or received any indications from the Board of Directors, the Independent Auditors or the Head of Internal Audit regarding the existence of atypical and/or unusual transactions, as defined by Consob communication DEM/6064293 of July 28, 2006, carried out with third parties, related parties or intragroup. In the Notes to the Financial Statements, the Directors reported on ordinary transactions carried out during the year with Group companies and related parties, to which reference should be made, also with regard to the characteristics of the transactions and their economic effects. Their examination did not reveal any critical issues with regard to their suitability, congruity or correspondence to the interests of the Company. The Board of Statutory Auditors verified the actual implementation and functioning of the Procedure for Transactions with Related Parties adopted by the Company, lastly integrated on August 1, 2024, including periodic information from the Board of Directors in the event of such transactions being carried out. 142 A2A Separate financial statements 2024 Report of the Board of Auditors 9 5. Supervisory activities on the Statutory Audit and Sustainability activities. On March 31, 2025, the Independent Auditors EY S.p.A. issued their Report pursuant to Article 14 of Legislative Decree no. 39 of January 27, 2010, and Article 10 of Regulation (EU) no. 537 of April 16, 2014, in which the Independent Auditors certify that in their opinion: - the annual and consolidated financial statements of A2A S.p.A. provide a true and fair view of the financial position and results of operations of the Company and the A2A Group at December 31, 2024, of the economic results and cash flows for the year ended on said date, in accordance with the International Financial Reporting Standards adopted by the European Union, as well as the measures issued in implementation of Article 9 of Legislative Decree no. 38of February 28, 2005; - the Management Report - excluding the section relating to consolidated sustainability reporting, for which the conclusions of compliance with the law are formulated by EY S.p.A. in a specific separate attestation report which is acknowledged below - and the specific information contained in the report on corporate governance and ownership structures indicated in Article 123-bis, paragraph 4, of Legislative Decree no. 58 of February 24, 1998 are consistent with the annual and consolidated financial statements of the Company and the A2A Group at December 31, 2024 and have been prepared in accordance with the law; - the annual financial statements as at December 31, 2024 have been prepared in XHTML format in accordance with the provisions of Delegated Regulation (EU) 2019/815; - the consolidated financial statements as at December 31, 2024 have been prepared in XHTML format and have been marked in all significant aspects in accordance with the provisions of Delegated Regulation (EU) 2019/815. - there is nothing to report with reference to the statement referred to in Article 14, paragraph 2, letter e-ter) of Legislative Decree no. 39of January 27, 2010, issued on the basis of the knowledge and understanding of the Company and the relative context acquired during the audit. Report of the Board of Auditors Separate financial statements 2024 A2A 143 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 10 On March 31, 2025, the Independent Auditors EY S.p.A. also issued their Additional Report pursuant to Article 11 of Regulation (EU) no. 537/2014, which, among other things, confirms that, during the audit of the Company's annual financial statements and the Group's consolidated financial statements for the year ended December 31, 2024, no significant deficiencies were identified in the internal control system for financial information and/or in the accounting system. The Independent Auditor's Reports highlight the key aspects of the audit, to which reference should be made. Also on March 31, 2025, the independent auditors EY S.p.A. issued their report pursuant to article 14-bis of Legislative Decree of January 27, 2010 no. 39, in which the auditing firm certifies: - the compliance, in all significant aspects, of the A2A Group's Sustainability Reporting with the reporting principles adopted by the European Commission pursuant to Directive (EU) 2013/34/EU and the information contained in the "European Taxonomy" paragraph thereof to Article 8 of Regulation (EU) no. 852 of June 18, 2020; - matching the information in the Sustainability Report with the information in the consolidated financial statements; - verification of the information included in the Sustainability Reporting in accordance with the ESRs. 6. Complaints pursuant to Article 2408 of the Italian Civil Code and filing of petitions. Initiatives undertaken by the Board of Statutory Auditors and related outcomes. During the financial year 2024, two complaints were received pursuant to Article 2408 of the Italian Civil Code from a shareholder who holds one share. The complaint, concerning the verification of the assessments carried out by the Board of Directors, the Remuneration and Appointments Committee and the Board of Statutory Auditors 144 A2A Separate financial statements 2024 Report of the Board of Auditors 11 regarding the appointment of Dr Carlotta Ventura, Head of Communication, Sustainability and Regional Affairs at A2A S.p.A., as Chairman of the subsidiary Amsa S.p.A., was submitted by e-mail dated March 28, 2024.The Board of Statutory Auditors investigated the matter raised in the aforementioned complaint and found, on the basis of the information gathered and the analysis carried out, that it could rule out its justification. It should be recalled that the Company has adopted a whistleblowing procedure that provides for the establishment of suitable information channels to ensure the reception, analysis and processing of reports, related internal control issues, corporate information, administrative liability of the Company, fraud or other matters, sent by employees, members of corporate bodies or third parties, including in confidential or anonymous form. 7. Appointment of the Independent Auditors and related costs. The annual financial statements of A2A S.p.A. and its subsidiaries have been subject to a full audit by EY S.p.A. on the basis of the appointment conferred by the Shareholders' Meeting for financial years 2016 to 2024\. The following table provides a summary of the fees paid for audit work performed within the Group during 2024: Report of the Board of Auditors Separate financial statements 2024 A2A 145 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 12 The Board of Statutory Auditors has been informed by the Company that the following additional fees paid to companies or professional firms connected to the international network of EY S.p.A. in relation to the assignments specified below have been recorded (amounts in euro): Company Subject of the assignment Amount Retragas S.r.l. Revenue certification year 2023 for ARERA 1,000 Unareti S.p.A. Certification of Tax Credits for R&D Activities (year 2023) 26,200 A2A Ambiente S.p.A. Certification of Tax Credits for R&D Activities (year 2023) 11,100 146 A2A Separate financial statements 2024 Report of the Board of Auditors 13 A2A Calore & Servizi S.r.l. Certification of Tax Credits for R&D Activities (year 2023) 12,500 Yada Energia S.r.l. Certification of Tax Credits for R&D Activities (year 2023) 12,900 A2A Smart City S.p.A. Certification of Tax Credits for R&D Activities (year 2023) 6,200 A2A S.p.A. Certification of Tax Credits for R&D Activities (year 2023) 31,100 A2A S.p.A. Comfort letter EMTN program 48,418 A2A S.p.A. Comfort letter hybrid bond issue 48,418 A2A S.p.A. Comfort letter on the EMTN Programme Basic Prospectus to Consob and Borsa Italiana 30,704 TOTAL 228,540 The above-mentioned assignments fall under the procedure "Management of relations with Independent Auditors", i.e. they have always been approved in advance by the Board of Statutory Auditors. It is also reported that this Board monitors on a monthly basis the maximum threshold provided for by the procedure adopted, for the assignment of the permitted assignments other than the audit and certification of the financial statements, as also provided for by Article 4 of EU Regulation no. 537/2014. The Board of Statutory Auditors received, in accordance with the provisions of article 6 paragraph 2 letter a) of Regulation (EU) no. 537/2014, from EY S.p.A., certification of the declaration relating to the independence of EY S.p.A., pursuant to article 6 of Regulation (EU) no. 537/2014, contained in the additional report, from which no situations emerge that could compromise its independence. Report of the Board of Auditors Separate financial statements 2024 A2A 147 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 14 8. Main audits and opinions issued by the Board of Statutory Auditors in accordance with current legislation. In 2024, the Board of Statutory Auditors, in particular: - examined and positively assessed the approval of the 2024 Audit Plan prepared by the Head of the Internal Audit function and approved by the Board of Directors; - issued a favourable opinion, pursuant to Article 19, first paragraph, letter e) of Legislative Decree no. 39 of January 27, 2010 and article 5 of European Community Regulation no. 537 of April 16, 2014, in relation to the assignment of "non audit services" to the independent auditors. Furthermore, it verified: - that each member of the Board of Statutory Auditors meets the requirements of independence, integrity and professionalism; - the correct application by the Board of Directors of the criteria and procedures for assessing the independence of its members pursuant to the new Corporate Governance Code. He was heard with respect to the remuneration of the Chief Executive Officer, the reporting of short and long-term objectives, as well as respect, in general, to the remuneration policy applied to directors invested with particular positions pursuant to Article 2389, paragraph 3 of the Italian Civil Code. Subsequent to the end of the year and up to the date of this Report, the Board of Statutory Auditors also examined and positively evaluated the approval of the 2025 Audit Plan prepared by the Head of the Internal Audit function and approved by the Board of Directors. 9. Observations on the adequacy of the organizational structure. The Board of Statutory Auditors constantly gathered information, through discussions with 148 A2A Separate financial statements 2024 Report of the Board of Auditors 15 management, with respect to the organizational structure of the Company and its changes. In light of what has been verified, the Board of Statutory Auditors believes that the organizational structure of the Company, the procedures, expertise and responsibilities are adequate in relation to the size of the Company and the type of activity performed. The Board of Statutory Auditors also verified the adequacy of the organizational structure of subsidiaries with strategic importance of A2A S.p.A., with particular reference to the internal control and risk management system, pointing out areas for improvement where necessary, but not finding any exceptions at present. 10. Adequacy of the Internal Control and Risk Management System. The Board of Statutory Auditors monitored the adequacy of the Internal Control and Risk Management System of A2A S.p.A. and its strategically important subsidiaries, by means of: a) regular collection of information, including at meetings of the Control and Risk Committee, as well as by means of meetings with the Manager in charge, the Head of the Internal Audit function, the Head of the Group Compliance function, the Group Risk Officer and the Heads of other functions concerned from time to time, on the activities carried out, the mapping of risks relating to ongoing activities, the verification programs and the projects for implementing the internal control system, with the acquisition of the related documentation; b) the regular participation, in addition to the meetings of the Board of Directors, in the work of the Internal Board Committees; c) examination of the periodic Reports of the Control and Risk Committee; d) examination of the Reports of the Head of the Internal Audit function, concerning the checks in the various Company areas, both at peripheral and corporate level, on the functioning of the Group's Internal Control and Risk Management System and the monitoring of the implementation of the corrective actions identified as a result of the audit activity. The Board of Statutory Auditors constantly reviewed the audit reports, thus assessing the process of their formation, compliance with the audit plans defined for the monitoring and containment of Report of the Board of Auditors Separate financial statements 2024 A2A 149 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 16 risks in line with the strategic objectives of containment and efficiency, as well as the conclusions of the Head of the Internal Audit function with respect to the suitability of the internal control and risk management system of the Company and its subsidiaries of strategic importance, with respect to the characteristics of the business and the risk profile. The Board of Statutory Auditors also verified that the Company has an Organizational, Management and Control Model consistent with the principles contained in Legislative Decree no.231/01 and last updated by the Board of Directors on September 24, 2024, in order to take account a. of the new offences introduced in Legislative Decree231/2001; b. of the legislative amendments affecting certain predicate offences already present in Legislative Decree231/2001 and the Model (formal amendments to headings or descriptions of offences); c. organisational updating; d. insertion of new sensitive activities. In addition to Model 231, a number of procedures were implemented, in particular, by way of example, the procedure for the disbursement of contributions, subsidies and public financing, credit policy, extraordinary finance, relations with the Independent Auditors and the procedure on litigation. The Board of Statutory Auditors noted and examined the periodic Reports (at June 30, 2024 and December 31, 2024) of the Supervisory Board provided for by Legislative Decree no. 231/2001, which summarize the activities carried out during the year. The Board of Statutory Auditors also met with representatives from the Boards of Statutory Auditors of A2A's subsidiaries, namely: AEB S.p.A., A2A Energiefuture S.p.A., A2A Gencogas S.p.A., A2A Rinnovabili S.p.A., A2A Energia S.p.A., Aprica S.p.A., Agripower S.p.A., A2A Ambiente S.p.A., Amsa S.p.A., A2A Calore & Servizi S.r.l., Unareti S.p.A., A2A Airport Energy S.p.A., A2A Energy Solutions S.r.l., A2A Services & Real Estate S.p.A., A2A Smart City S.p.A., Retragas S.r.l. and A2A E-Mobility S.p.A. for the purposes of exchanging 150 A2A Separate financial statements 2024 Report of the Board of Auditors 17 information on, inter alia, compliance with the directives issued by the Parent Company, the characteristics of the internal control system, risk management, the governance system and the operations of the same. With regard to the above-mentioned activities, the Board of Statutory Auditors: a) has not identified any critical situations or facts in relation to the financial year 2024 that could lead to the conclusion that the Company's Internal Control and Delegation System with respect to its subsidiaries is inadequate, pursuant to Article 114, paragraph 2 of the Consolidated Law on Finance, in order to comply with the disclosure obligations provided for by law; b) having regard to the information provided by the Chair of the Supervisory Board and the above-mentioned Reports, the Board of Statutory Auditors has noted that no reprehensible facts or violations of the Model emerged during financial year 2024; c) noted the positive assessment expressed by the Enterprise Risk Management and Internal Audit functions and the consequent approvals also by the Board of Directors in relation to the adequacy and effective functioning of the Internal Control and Risk Management System for the financial year 2024. The Board of Statutory Auditors constantly monitored the events during the financial year regarding ongoing tax, administrative, civil and criminal litigation involving the Company and the Group, for which reference is made to what is detailed in the 2024 Consolidated Annual Report, Section 2) “Other Information”, paragraph 8) “Update on the main legal and tax disputes currently pending”. 11. Adequacy of the administrative-accounting system and its reliability. The Board of Statutory Auditors, to the extent of its competence, monitored the adequacy of the administrative-accounting system and its reliability in correctly representing operating events as well as the activities carried out, under the coordination of the Head of Financial Reporting, for the purposes of compliance with Law 262/05 "Provisions for the protection of savings and the Report of the Board of Auditors Separate financial statements 2024 A2A 151 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 18 regulation of financial markets" and subsequent amendments and additions, by means of:125/2024 "Implementation of Directive 2022/2464/EU of the European Parliament and of the Council of December 14, 2022 amending Regulation 537/2014/EU, Directive 2004/109/ EC, Directive 2006/43/EC and Directive 2013/34/EU as regards corporate sustainability reporting", through: a) the acquisition of information from the Financial Reporting Manager as well as from the Heads of other Company functions, also in the context of participation in the work of the Control and Risk Committee; b) the acquisition of information on the procedures adopted and instructions issued by A2A S.p.A. for the preparation of the Annual Report of the Group at December 31, 2024 and the Half-Year Report of the Group at June 30, 2024; c) examination of the periodic reports of the Head of Financial Reporting, as well as the reports of the Internal Audit Function on the actual application of the administrative and accounting procedures pursuant to Law 262/05 and on the outcome of the related tests carried out, drawn up in execution of the mandate entrusted by the Head of Financial Reporting; d) meetings with the Independent Auditors and analysis of the results of their work; e) examination of Company documents. The Board of Statutory Auditors also noted that, following the favourable opinion issued by the Control and Risk Committee, in accordance with the recommendations made by the European Securities and Markets Authority (“ESMA”) on January 21, 2013, the joint document Bank of Italy/Consob/ISVAP no. 4 of March 3, 2010 and Consob Communication no. 3907 of January 19, 2015, on March 20, 2025, the Board of Directors, autonomously and prior to the approval of the annual financial statements, approved the impairment test procedures applied by the Company in preparing the financial statements at December 31, 2024 and the impairment test procedures to be applied to the annual financial statements of the companies of the A2A Group. In the course of carrying out the activity described above, the Board of Statutory Auditors did not identify any critical situations or facts that might lead to the conclusion, in relation to 152 A2A Separate financial statements 2024 Report of the Board of Auditors 19 financial year 2024, that the administrative-accounting system of A2A S.p.A. is inadequate and/or unreliable. 12. Any relevant aspects relating to meetings with Auditors. The Board of Statutory Auditors met with the Independent Auditors in relation to the Annual Report at December 31, 2024: a) to exchange information on the verifications carried out by the latter pursuant to Article 19, paragraph 1 of Legislative Decree no.39/2010 and Article 150, paragraph 3 of the Consolidated Law on Finance, on the regular accounting and correct reporting of events in the accounting records. During these meetings, there were no reports of problems or abnormalities; b) for the examination and evaluation of the preparation process, including the evaluation of the correct application of accounting standards and homogeneity of the same, of the Half-Year Report of the Group at June 30, 2024 and the Annual Report of the Group at December 31, 2024, as well as the outcomes of the audit and evaluation of these documents. In particular, the Board of Statutory Auditors: - analyzed the work carried out by the Independent Auditors, and in particular, the methodological framework, the audit approach used for the various significant areas of the financial statements and the planning of the audit work; - shared with the Independent Auditors issues related to business risks, thus being able to appreciate the adequacy of the response planned by the Independent Auditors with the structural and risk profiles of the Company and the Group. In general, the information flow between the Independent Auditors and the Board of Statutory Auditors was constant throughout the 2024 financial year, as well as in the phases prior to the completion of the drafting of this report. The Board of Statutory Auditors has also: a) received, pursuant to Article 11 of Regulation (EU) no. 537/2014, the Additional Report of Report of the Board of Auditors Separate financial statements 2024 A2A 153 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 20 the Independent Auditors, also illustrating the key issues arising from the statutory audit and any significant deficiencies found in the internal control system for financial reporting and/or in the accounting system, from which no significant deficiencies were identified; b) took note of the statement on the independence of EY S.p.A. pursuant to Article 6 of Regulation (EU) no. 537/2014, contained in the Additional Report, from which no situations emerge that could compromise its independence; c) discussed, pursuant to Article 6, paragraph 2, letter b) of Regulation (EU) no. 537/2014, with the Independent Auditors the risks relating to the independence of the same and the measures adopted by the Independent Auditors to mitigate said risks. 13. Adherence to the Corporate Governance Code of listed companies. The Company adheres to the 2020 edition of the Corporate Governance Code of listed companies effective January 1, 2021. The Board of Statutory Auditors therefore supervised, pursuant to Article 149, paragraph 1, letter c-bis) of the Consolidated Law on Finance, the procedures for the concrete implementation of the rules of corporate governance provided for by the Corporate Governance Code, with particular regard to: - the correct application of the ascertainment criteria and procedures adopted by the Board of Directors to assess the independence of its members; - the manner in which the self-assessment activities of the Board of Directors and its Internal Board Committees were carried out, including that relating to the requirements for Independent Directors; - the Company's Corporate Governance structure. The Board of Statutory Auditors also acknowledges that the Board of Directors, at its meeting of February 20, 2025, examined the recommendations of the Corporate Governance Committee contained in the letter of December 17, 2024 addressed by the Chair of the Committee to the Chairs of the Boards of Directors of Italian listed companies and, for information, to the relative 154 A2A Separate financial statements 2024 Report of the Board of Auditors 21 Chief Executive Officers and Chairs of the control bodies, in order to make the necessary decisions in this regard. The Board of Statutory Auditors supervised the activities carried out by the Control and Risk Committee, the Remuneration and Appointments Committee, the ESG and Territory Relations Committee and the Related Parties Committee, also in relation to the activities envisaged by the Corporate Governance Code. **** In addition to the above, the Board of Statutory Auditors: - assessed the compliance of its composition with the provisions of the law on gender portions, as well as its adequacy in terms of policies on diversity of age and diversity of educational and professional experience; - confirmed the correctness and effectiveness of its functioning, also taking into account the requirements of professionalism, competence and experience of its members, compliance with the regulatory provisions on the accumulation of offices of the Statutory Auditors, the availability of time in the performance of their duties, as well as the functionality and quality of information flows with the Board of Directors, the Control and Risk Committee, the Independent Auditors and other control functions; - successfully carried out the periodic verification regarding compliance with the criteria of independence with regard to each of its members, pursuant to the regulatory provisions and the Corporate Governance Code. The outcome of said audits is outlined in the Annual Report on Corporate Governance and Ownership Structure prepared for the year 2024; - drafted the summary sheets of the control activities carried out by the Board of Statutory Auditors in 2024 according to as provided in CONSOB Communication no. 1025564 of April 6, 2001. Report of the Board of Auditors Separate financial statements 2024 A2A 155 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 22 14. Consolidated sustainability report. The Board of Statutory Auditors, in the performance of the functions assigned to it, has supervised compliance with the provisions contained in Legislative Decree no. 125/2024.In particular, with reference to: - the appropriate organisational structure, directives and operating practices aimed at drafting the consolidated sustainability report; - the adaptation of the Company's governance documents ("Guidelines for the Internal Control and Risk Management System", "Regulations of the ESG Committee and Relations with Territories", "Regulations of the Control and Risk Committee" and "Regulations for the activity of the Manager in charge of drafting the corporate accounting documents of A2A SpA") to the provisions of Legislative Decree no.125/2024; - the reporting and drafting process and the contents of the Consolidated Sustainability Report, prepared by A2A.The CNFS for the financial year 2024 was approved by the Board of Directors at its meeting on March 20, 2025 and made available to the Control Body within the statutory time limits. - compliance with the reporting disclosure requirements as set out in Article 6 of Legislative Decree no.125/2024 and Conduct Standard no. 3.8 last issued in December 2024 by the National Council of Chartered Accountants. In this regard, having examined the attestation issued by the Independent Auditors, the Board found no elements of non-compliance and /or violation of the relevant regulations. The Board of Statutory Auditors notes that the Company, in its capacity as Parent Company, has prepared the Consolidated Sustainability Report as required by Legislative Decree no. 125/2024. The Board of Statutory Auditors monitored compliance with the provisions set forth in Legislative Decree no. 125 of 2024, ascertaining that the CNFS allows for an understanding of the Group's activities, its performance, results and impacts produced, and that the CNFS reports on environmental, social, personnel-related, human rights and governance issues. 156 A2A Separate financial statements 2024 Report of the Board of Auditors 23 The Board of Statutory Auditors discussed with the Independent Auditors the auditing activities it had performed on the CNFS and received confirmation that these did not reveal any critical issues to be reported. The Board of Statutory Auditors also verified the issuance, on March 31, 2025, by the independent auditors of the "limited assurance" on the A2A Group's Sustainability Report relating to the year ended December 31, 2024, certifying compliance:(i) of its drafting, in all significant aspects, to the reporting principles adopted by the European Commission pursuant to Directive (EU) 2013/34/EU and (ii) of the information contained in the "European Taxonomy" section of the same in Article 8 of Regulation (EU) no. 852 of June 18, 2020. CONCLUSIONS Having regard to the foregoing, and having, in the year under consideration: - monitored compliance with the law and the Articles of Association, principles of proper administration, and in particular the adequacy of the administrative and accounting organization structure adopted by the Company and proper functioning thereof; - monitored observance of information obligations regarding privileged information; - monitored the functioning and effectiveness of the internal control and risk management system and the administrative-accounting system, in order to assess their suitability to Company requirements, as well as their reliability for the representation of management events; - monitored compliance with the provisions of law relating to the process of preparing, controlling, approving and publishing the Company's statutory financial statements and the process of preparing, controlling and publishing the Group's consolidated financial statements and reports on operations for the year 2024, including through direct checks and information obtained from the independent auditors, and also ascertained the adequacy, from the point of view of the method, of the impairment test process; - verified that, in accordance with Regulation (EC) no. 1606/2002 and Legislative Decree no. Report of the Board of Auditors Separate financial statements 2024 A2A 157 Overview of performance, financial conditions and net debt 1 Annual financial statements 2 Notes 3 Attachments 4 Independent Auditors’ Report 5 Report of the Board of Auditors 24 38/2005, the Financial Statements of A2A S.p.A. and the Consolidated Financial Statements of the Group at December 31, 2024 are prepared in accordance with IAS/IFRS international accounting standards approved by the European Commission, supplemented by the related interpretations issued by the International Accounting Standards Board (IASB); - monitored compliance with the procedure for the preparation and presentation of the annual financial statements to the Shareholders' Meeting also with reference to the ESEF format in accordance with the provisions of Delegated Regulation (EU) 2019/85; - monitored, pursuant to Article 19, paragraph 1 of Legislative Decree no.39/2010, the financial reporting process and effectiveness of internal control, internal audit and risk management systems and informed the Board of Directors on the outcome of the statutory audit; - monitored compliance with the provisions established by Legislative Decree no.125/2024, regarding the Consolidated Sustainability Reporting. Providing the foregoing, the Board of Statutory Auditors states that, during the supervision activities described above, no reprehensible facts, omissions, or irregularities arose. In view of the above, the Board of Statutory Auditors kindly requests that you approve the financial statements at December 31, 2024 presented by the Board of Directors along with the Report on Operations and the proposal to the Shareholders’ Meeting therein. *** Milan, April 1, 2025 THE BOARD OF STATUTORY AUDITORS (Signed Silvia Muzi) – Chair (Signed Maurizio Dallocchio) – Statutory Auditor (Signed Chiara Segala) – Statutory Auditor