Dear Shareholders,

2024 was characterised by continued uncertainty as a result of ongoing geopolitical tensions and expectations regarding US trade policies, as well as an increase in extreme weather events. In this challenging and ever-changing scenario, Acea approved the “Green Diligent Growth” Business Plan, which aims to strengthen the Group’s position as a leading infrastructure operator focused on regulated businesses.

The Acea Group’s 2024 results are at an all-time high in terms of EBITDA and Net Profit, with growth rates above the Business Plan targets. The economic performance is accompanied by a significant improvement in the NFP/EBITDA ratio. This confirms the solidity of the business model adopted and the Group’s focus on both business growth and financial discipline. In 2024, EBITDA increased by 12% compared to 2023, reaching €1.6 billion, 85% of which was from the regulated businesses. Investments, of which 91% allocated to regulated activities, amounted to €1.4 billion, a 26% increase on the previous year. Net Profit grew by 13% over 2023 to a record level of €332 million, allowing us to propose the distribution of a dividend of €0.95 per share, an 8% increase over 2023 and higher than the Business Plan targets (4% YoY growth).

Such growth has been accompanied by the companies’ ongoing commitment to a positive environmental and social impact, embodied in initiatives to adapt to and combat climate change, through the adoption of a systemic approach to the circular economy in all areas of activity and the pursuit of sustainability goals to generate value in the territories where the Group operates. The Group’s focus on sustainability is confirmed by ESG ratings, including the Sustainability Solicited “EE+” rating awarded to Acea by independent agency Standard Ethics for the second year running.

The Sustainability Plan 2024-2028 was approved in 2024, setting out the sustainability objectives and targets and the investments envisaged in the Business Plan for the various businesses. Of the investments made during the year, €950 million are directly linked to sustainability targets, mainly aimed at increasing the safety and resilience of infrastructure, reducing water losses, and implementing measures for decarbonisation, resource circularity and biodiversity protection.

Acea, Italy’s top operator in the water sector and a leader in Europe, launched major infrastructure works during the year: from the NRRP projects, for which funding of some €703 million was obtained, to the doubling of the Peschiera Aqueduct. The Group also continued to invest in the reduction of water losses and the continuous improvement of the operational management of the water service. Investments in the Acqua Italia business area amounted to €895 million in 2024. In addition, the Group expanded its presence in the sector in Italy by entering two new regions – Sicily and Liguria – through the awarding of tenders for the management of the Integrated Water Service in the provinces of Syracuse and Imperia, and abroad through the awarding of tenders for the maintenance of the water and sewerage network in Lima (Peru). Acea joined the Mattei Plan steering committee during the year, as the only national representative of the water sector for research and development of infrastructure projects in Africa.

With a view to raising the population’s awareness of the importance of water resources, Acea also signed a three-year Memorandum of Understanding with the Italian Ministry of Education to promote education in primary and secondary schools on the correct use of water resources.

The Group’s commitment also covers the Network and Public Lighting business, with the launch of NRRP projects related to increasing the resilience of electricity grids and Smart Grids, for which the Group was awarded €174 million in funding. Electricity flexibility services were also launched in Rome through the RomeFlex project, which aims to establish an advanced flexibility market to balance loads in the distribution network.

Investments in the Network and Public Lighting business area amounted to €316 million in 2024. The Group also signed a binding agreement to sell the high-voltage electricity grid to Terna, as part of a programme to enhance and optimise the asset portfolio, taking advantage of the opportunities provided by the regulatory framework.

In the Environment business, in May 2024, in a consortium of leading national and international operators, Acea Ambiente submitted a bid for the call for tenders issued by Roma Capitale for the construction of the waste-to-energy plant in Santa Palomba. In August 2024, the Selection Board for awarding the concession proposed that the tender be awarded to the consortium with parent company Acea Ambiente. During 2024, Acea Ambiente also started work on the construction of the fourth line of the San Vittore waste-to-energy plant, with the aim of increasing treatment capacity and optimising site efficiency.

In 2024, Acea maintained and renewed management systems that had previously been certified – Quality, Environment, Safety, Energy, and Gender Equality – and achieved ISO 37001:2016 certification for its “Corruption Prevention Management System” as well as ISO 10004:2018 certification for customer satisfaction monitoring and measurement processes. Acea also signed the “Local Partnership Protocol with the Prefecture of Rome against the infiltration of organised crime and for the protection of legality” to be applied to the works that the Group will carry out in the coming years in the Rome area in all the sectors in which it is active.

With regard to the policies and strategies adopted in the management of human resources, the Group obtained the “Top Employers” Italy certification for the third year running.

The results achieved in 2024 represent solid foundations for the implementation of the “Green Diligent Growth” Business Plan, which will allow the Acea Group to increasingly consolidate its position as a leading infrastructure operator over the coming years, integrating ESG criteria into the company’s strategy and reinforcing its commitment to the empowerment of people.