Good afternoon, everyone, and thank you for joining for the first quarter 2026 results. Today, the results will be illustrated by our CEO, Mr.

Renato Mazzoncini, and the CFO, Luca Moroni. I will immediately leave the floor to Renato.

Thank you, and good afternoon, everyone. Thank you for joining our call today.

I start with a statement. Alfred North Whitehead once said that the art of progress is to preserve order amid change and to preserve change amid order.

Let's say, in the last 3 months, we have seen a lot of changing inside the energy landscape in Italy and in Europe. Let me start with a brief overview of the macro scenario, and how we are responding to preserve both order and change in our mission to be ready to power.

In Q1, Q1 was marked by uncertainty and super high volatility in the energy market, fueled principally by two external factors. The first is the proposed measures in Italy and in Europe to mitigate the impact of rising energy costs and industrial competitiveness.

In Italy is the so-said decree for Decreto Bollette, the decree for the tariffs. After a couple of days, the geopolitical tension in the Middle East in Iran.

What happened in slide number 2 is that, for example, the PSV gas price peaked at around €60 for megawatt hours, while the PUN spot price ranged around €80 to €170 for megawatt hours amid continued moves in the forward curves. Visibility is still limited, but conditions are well below the '22 extremes.

You can see in the graph at slide 2 in the left part of the slide. Against this backdrop, our action are geared to support short-term system stability and to delivery on the targets we have communicated to shareholders.

Our first step was to give customers, especially households, greater stability by maintaining our fixed-price contract offers. This now account for around half of our mass market exposure, consider that 50% of our customer base mass market is in fixed price.

Our '26 renewable generation, in line with our policy, is already hedged for more than 70%, giving us full visibility for this year. We will continue to closely monitor developments and to respond as necessary, navigating an environment that remains highly fluid.

That's the short-term picture, but as A2A's vision is built on long-term resilience, and this commitment remains unchanged. Let me say that exactly in this situation to have a 10-years industrial plan is fantastic because in this situation the short term is a problem to face, but is not, let's say, the polar star.

The contingent geopolitical phenomena of today only serve to underscore the long-term importance of Italy's energy independence, and for this reason, the expansion of our renewable and high-efficiency flexible capacity remains a key driver. For example, during the quarter, we commissioned the Terzo di Banzi plant, adding around 30 MW of wind capacity in Southern Italy.

We reiterated our investment strategy, almost half of the quarter's spending direct towards generation plants and in our power grid that remain the backbone of the energy transition. Electrification of consumption remains a sector trend underpinning our capital allocation choices, and is super interesting the fact that in Italy, the demand was up to 3% in Q1.

That there is sometimes a discussion if really the demand will grow, and we can say that in this Q1 there is a visible grow of the demand, especially in Lombardy in which the grow arrives in double-digit, 10%. This is an encouraging signal, of course.

Equally encouraging is the fact that data centers will continue to emerge as a new high-consumption customer segment. We see confirmation of this in the fact that the connection requests in our electricity distribution network, in particular in the province of Milan, in particular DueReti, that is the company, you know that we bought 2 years ago from Enel, now amount around 330 MW, and consider that is medium voltage, let's say not more than 10 MW, that means 33 new data center at least that ask for new connection only around Milan.

Despite ongoing volatility, I can confirm that our resilient business model, diversification, and a long-term perspective, supported by strong execution, enable us to maintain our investment commitments. Let me give you a few highlights looking at slide number 3, in which you can see our numbers, our economics.

Also we see both positive and downward variance in these figures, taken together they underscore two crucial factors: our financial resilience and our commitment on targeted investments. I think the most evident metric of this is our net financial position, which remains sound and under control at €5.6 billion versus €5.5 billion at year-end '25.

The movement is entirely consistent with the typical business seasonality. The leverage ratio holds 2.5, broadly stable year-on-year, confirming the group financial discipline and balance sheet resilience, even in a quarter of active capital deployment.

In short, the figures confirm our resilience which is far confirmed by our continued commitment to targeted investments. In slides number 4, we continuing our capex plan deployment, confirming our commitment on our long-term strategy vision.

You can see 4% more of capex compared with last year, but what is super important is that in Q1, we have 21% of grow in the development capex, €210 million refers to development project. The key pillars of our investment strategy are improving the efficiency of power distribution networks, accelerating our development path towards renewable energy, increasing the flexibility of generation plants, and, of course, the capex in circular economy, that I remember is also district heating and water cycle.

That's the big picture. Now let me turn to Luca for a more detailed analysis of the results.

Please, Luca.

Thank you, Renato. Thank you, everybody, and good afternoon.

As Renato pointed out, the beginning of 2026 presented a challenging conversion of contingent external factors. As unpack our EBITDA performance, I wish to emphasize how we respond to this.

I think this slide is a clear summary of how a diversified and integrated portfolio of activities underpins our ability to optimize our risk profile. By leveraging the diversification of our business, we were able to face negative effects, including some unpredictable costs, delivering an EBITDA of €647 million.

In particular, this reflects how higher renewable energy production, the ability to capture trading opportunities, and strong performance in market and electricity distribution business mitigated the adverse impact from higher hydroelectric concession fees, lower achieved price, and lower contribution from treatment plants. Naturally, this performance starts with how we generate and optimize energy, let me turn to generation and trading.

In generation and trading, increased production during the quarter helped offset the impact of adverse headwinds. EBITDA was €202 million, a decrease of €22 million compared Q1 '25.

Starting with renewables, we delivered higher renewable production, although this positive contribution was impacted by two contingent factor beyond our control: higher hydroelectric concession fees, which affected by €11 million, of which €6 million related to previous years, and lower achieved price based on the scenario. Moving to flexibility, a good performance in trading confirm our ability to capture market opportunities, although this was partially undermined by fewer chance in gas portfolio management.

To sum up, our operational performance remains solid with higher production volume and effective trading execution in face of market condition and regulated cost component that represent a headwind in the quarter. Overall, this confirm both the resilience of our integrated model and the importance of diversification across generation and trading activities to tackle volatility.

Of course, generation energy is only half of the equation. The real impact happen when we connect it to customers.

Let me turn to the encouraging results that emerge in Q1 for supply business. Looking at the market segment, the first quarter confirmed the persistence of our commercial performance.

EBITDA was €136 million with an increase of €3 million compared Q1 2025. In market, our performance was primarily supported by the growth in electricity volumes, particularly in the free market segment.

At the same time, profitability was partially impacted by lower unitary margins, reflecting a more competitive environment and pricing dynamics. Overall, the quarter was marked by solid volume-driven growth with margin pressure partially offset by the underlying strength of the business.

Of course, the future of the energy isn't just about consumption, it is also about circularity. Let me turn to the performance of the circular economy.

In the circular economy, the quarter shows a performance affected by a lower margin in treatment segment in particular. Adjusted EBITDA was €190 million, a decrease of €12 million compared Q1 2025.

The pressure on margin in treatment was mainly due to the new Acerra service contract signed in February 2025 and the lower availability of Parona and Trezzo plant for maintenance activities. Prices showed a slight increase, and we also saw positive contribution from district heating, in particular related to white certificates sold, and higher allowed returns from the integrated water cycle.

Overall, performance was slightly softer, mainly due to operational and contractual factors in waste to energies, with some support from positive trend in other activities. That said, let me turn to smart infrastructure.

In smart infrastructure, the overall perform reflect growth in allowed revenues, partially offset by a change in the gas distribution perimeter, as you remember. The EBITDA on the business unit was €129 million, an increase of 6% on the Q1 '25.

In electricity network, EBITDA took advantage from higher allowed revenues driven by the new ROSS tariff methodology and the continued growth in the RAB driven by capex development. In gas network, we saw a negative contribution mainly due to the perimeter effect following the asset disposal completed in July 2025.

Now give a look at the profit and loss starting from adjusted EBITDA €647 million. We recorded €250 million of D&A, €12 million plus compared the same period of 2025.

The increase is mainly due to the higher capex deployed. Provision and net financial expenses were equal to €25 million and €41 million respectively, in line with the same period of 2025.

Adjusted taxes amount to €98 million, a decrease of €10 million compared 2025, driven by lower taxable base. The tax rate stood at 29.5%, excluding the impact of the IRAP increase introduced by the energy decree, accounted for as a special item as we said already.

Adjusted group net profit was €221 million, a decrease of 11% compared 2025 at €249 million. Finally, in Q1, we achieved a solid ROI and ROE above 9% and 10% respectively, well aligned with our target.

Let me conclude my comments giving you an overview on the net free cash flows. Cash flows Q1 '26 showed a negative change in net financial position of €154 million as a result of business seasonality.

As of March 31, the group reported a net financial position of €5 billion €628 million with a leverage ratio of 2.5 times, ensuring the full stability of the leverage position. During the period, the operating cash flows generated €149 million.

Let me give you an explanation in which way. Net working capital variation was -€460 million, primarily driven by the increase of trade receivable due to the business seasonality and the energy prices increase starting from March 2026 following the escalation of the conflict in Iran.

Payment of net financial expenses €38 million. Operating cash flows stand at €149 million.

Accounting capex €315 million. The net free cash flow amounts at -€166 million.

The change in the consolidation perimeter during the period was positive and amounted to €22 million, mainly due to the price adjustment, €25 million, related to the sale of the part of the gas asset to Ascopiave in 2025, partially offset by €3 million in other transactions. Overall, considering €10 million spent on the share buyback, the total change in the net financial position amounts to €154 million.

To conclude my comments, our businesses are not separated stories, but rather one integrated system that assure our financial results, results that show how, by leveraging the resilience and diversification of business, we were able to navigate the challenges of geopolitical effects, including the ones that nobody saw coming, and to deliver an EBITDA of €647 million. Let me now hand back to Renato for the final part of the presentation.

Thank you, Luca. To close, guys, slide number 12, we confirm our '26 guidance.

Slide number 13, only some concept about our robust industrial execution. Let me now briefly really focus on the key highlights supporting our performance and outlook.

Starting with execution, year-to-date, we have seen solid operational trends across our core businesses. In renewable, hydro production benefit from the geographical diversification across Italy.

Is interesting the fact that this year is Calabria the first class of our hydro production. More and more is difficult to have all the plants from the south to the north, northeast, northwest at the same level of production, to have diversification like A2A in Lombardy, in Friuli-Venezia Giulia, in Calabria is super nice because is easier to maintain our target.

On the commercial side, electricity volumes recorded double-digit growth, and in particular, free mass market customer base continued to expand. Starting from Q2, we are seeing early signs of improving churn rate dynamics.

You can imagine is of course also linked to the exceptional growth of PUN, and the typical situation in this case is that the churn fall down, and our visibility in June is a reduction of the churn super strong. What is important for us is that you remember our strategy is to increase the market share of electricity customer, and our strategy is on track.

Our power grid activities delivered a sound performance supported by ongoing capex deployment. As I said in our last call, in particular DueReti, the company that we bought from Enel, is working very well in terms of capex deployment and also EBITDA.

At the same time, we continue to deliver on our strategic projects. In power generation, we are progressing in Monfalcone, the new class H thermo plant.

Corteolona is the new waste-to-energy plant. A2A remain the only company in the last years that is working to build new waste-to-energy plant.

Further renewable development. We have also identified brownfield sites for our data center platform.

In data center, we are working quickly. You remember we have three projects on track, and we are working to be able to start with some site next year, and all suitable for behind-the-meter connection, enabling so faster grid access and competitive energy cost, as you know.

Finally, our electricity distribution business is well on track to reach the '28 RAB target that is high. Overall, this confirms our ability to execute consistently across all businesses while continuing to invest where it matters most in order to generate sustainable value.

In the last slide, number 14, only to say that let's see the architecture that support our strategy over time. First, a diversified and integrated portfolio of activities, enabling us to optimize our risk profile.

All our natural hedging in generation, in collection and treatment, in regulated market, regulated business, and business on the market. Second, exactly the exposure to regulated businesses, providing stability and clearly visibility on cash generation.

Third, our discipline in capital allocation to unlock new growth opportunities. I began today by underpinning our commitment to preserve the delicate balance between order and change, and to do so, our takeaway today is we will continue to invest where it matters most while maintaining financial resilience and control, turning the megatrend that are reshaping the energy landscape into sustainable results over time and reshaping the role of the multiutility company in this new landscape.

Thank you very much, and I'm sure that there is space and interest for Q&A. The floor is yours.

Thanks.

Good afternoon, and thank you for the presentation and for taking my question as well. The first one is on the '26 guidance.

What is the visibility considering that, if I remember well, in your guidance is not included the change of the scenario for the short term at least? Apart Q1, but starting from Q2, indeed starting from March, the wholesale price will be higher year-on-year, at least for Q2, then we'll see in H1 in H2.

For this 30% roughly merchant exposure for the expected volume from hydro and waste-to-energy in '26, we should expect a benefit from this situation, which is not included in the guidance. My question is about the outlook for the next three quarters with update of the guidance compared with the updated macro scenario.

This is the first question. The second one is still on the generation business and the market design, but in this case more in '27 onwards.

We know that Italian government is under discussion with European Commission to define a new market design and of the renewables from gas will be through ETS, change or will be through other component of the price of the gas, etc. We'll see.

In any case, is under study. What is your update and your opinion on this situation?

Finally, in the market supply, I saw a good resilience in profitability in spite of slightly down number in customers, but indeed it was related only to STG and the protected market, not the free market experienced a slight increase, the commercial policy seemed to be effective at least in Q1. What is the update about the competitive pressure and your commercial strategy in this respect, also considering that it seemed that, at least according to the Italian press, there are also portfolio of customers to be sold in the market, if you are interested in?

Thank you.

Thank you, Emanuele. On question number one, I say we are hedged for '26, is clear that, and consider that in this moment our hedge, as I said, is more or less 70%.

That means that yes, if the war remain till the end of '26, and I think that all of us hope that in Iran something can change in the next weeks, I don't know, but we have to see, but we can have an upside, but is limited due to our hedging. This is for the first question.

For the second, talking about ETS, I can answer using the communication from the Commission about the temporary Iran crisis energy framework 23 of April, okay, that says that member states can also consider transitory measures to mitigate the impact of high gas prices on electricity generation, but, let's say, not only limited only to '26, and you consider that the formula linked to the ETS proposed by our government will start from '27, and this is enough to say that is impossible to, okay. Is also interesting that the EU Commission understood perfectly the risk and says that there are some conditions.

The first is that the transitory measures, they are clearly defined and time-limited, not structural. The second, they are designed to prevent internal market distortion, ensuring no impact on the merit order and no restrictions to cross-border trade and electricity flow.

The third, they preserve long-term investment signals for clean energy. The fourth, they only compensate certain gas cost increase and do not cover ETS cost, therefore maintaining the obligation and incentives of ETS.

Without reading more, I can say that we imagine that is impossible to have a structural changes, and also due to the roadmap '26 '27, we don't think that the Italian decree can have effect and that can change the position of EU that is very clear. Also because, frankly speaking, Italy is the only industrial country in which ETS is really a tax because is the only country in which €2.9 billion on €3.5 billion is really used to serve the public debt.

In all the other countries, starting from Germany or France, 100% of ETS is a cap-and-trade system, and so there are companies, corporate, that receive money from ETS. This is the easy reason for why this country says, "No, thanks.

We don't want to change the ETS." Talking about mass market, your analysis is correct.

For us, in this moment, is clear that the good news is that we have 1% of increasing of the free mass market electrical in a phase in which the churn in the first quarter was high in all the market, and in a situation in which our visibility of the churn in the second half of the year is much much lower, and so we imagine to be able to reach our budget, that is a budget in which the customer base electricity free market will grow. The competitiveness pressure is a reality, and this is the reason for why, since the first industrial plan, every year we imagine to have a reduction of marginality of 3%.

No, you remember is a discussion that we did a lot of times. Till now, frankly speaking, reduction of marginality is not on the table, but in our industrial plan, including '26 and '27, we forecast a reduction, and we'll see, let's say.

In this moment, we are happy to have, in particular, some interesting products, for example, the PPA mass market for our customer. The customer base for PPA mass market in this moment is more than 100,000, 110, 120,000, but to understand how is important, in this moment the total energy sold in PPA mass market is slightly higher than the PPA B2B.

Is the proof that working in the customer base also out of the box with instruments like PPAs mass market 10 years long is a good idea and works well.

Thank you. Just a follow-up on the first question.

The first question was not only on generation and achieved power price compared with embedded in the guidance, but also the other moving parts in H2 or for Q2 onwards compared with the expectation of the business,

do

you remember, when you provide the guidance for the first time? Thank you.

Emanuele, I will take the lead to answer to your question. We see generation more or less in line with the previous year results, taking to consideration maybe some opportunities we can get in the market.

As you correctly pointed out, the spot price could give us some opportunities. Let's say around 700 is more or less the area we are targeting.

Market, supply business, is slightly behind in our projection by now compared last year, but slightly, few millions. That means that there is still a good visibility, high resilience on the marginality, which stay there, but also on the volumes we are able to sell, which are growing and giving us opportunity to expand also the market share.

Circular economy is pretty stable due to the fact that we have incorporated some maintenance works already in the first quarter. They were planned, the target incorporated this maintenance.

You have to consider that these plants are working with full capacity, from time to time they need to have maintenance activities. Finally, smart infrastructure, again, more or less in line with last year, considering that in the 518 million of the last year, we had €22 million related to Ascopiave deal on the gas network and some one-offs that are not recurring, but we decided last year to consider this non-recurring industrial non-recurring item embedded in our results.

All in all, we are in line with the guidance we gave at the beginning of the year, and we have nice visibility by now. Let's see what happen in the next quarter, and we can have an update at the half year.

Thank you very much.

Maybe just to give you also a flavor on the fees asked by the Region Lombardy, we have an impact in the area of €40 million €50 million. Half of those are related to previous years, meaning '21-'24 years.

These are, as I said, non-recurring, even though we considered that amount in the guidance in our expectation. On the remaining part, the half, again, has been already provided in the previous year, it has not an impact on the net profit, but only on the EBITDA.

Already consider in what I already said.

Hi, everyone, and thank you for the presentation. Three questions.

The first one is on the generation business and electricity prices. If you can share with us the pricing level for your hedging in 2026 and eventually 2027 as well.

I'm interested in the absolute level of electricity pricing hedging. Also your latest expectations for electricity prices towards the end of the decade and beyond, no, in a context on which there is a high level of concern on high electricity prices impacting competitiveness of Europe, which are your latest thought on potential impact on electricity prices in Italy?

That would be the first question. The second question is on the comment that you make on electricity demand increase during the first quarter.

That is quite remarkable. If you can help us to understand in your area, in your region, in the regions in which you operate, which are the key dynamics that are underpinning this increase in electricity demand, and maybe splitting that increase in electricity demand by the different segments?

In this context, when the company thinks that will be able to update the market with latest update on potential development of new data centers in Northern Italy? The final question is more of a general one.

There has been press articles mentioning the potential interest of the company in an M&A activity, being involved in M&A activity without entering in names and second names. Just as a general concept, the question for you is which would be the identity of a potential M&A target that could the company management press the button on that deal?

Thank you.

Javier. Hi.

Talking about generation price, your question is the level of price of our hedging '26 and '27, correct? Correct.

Yeah. For '26, in this moment we have, as I said, 70%, 70%-72%, and the level is 111.

Is absolutely nice, slightly higher than our budget. Talking about 20 '26 '27, is around 60%, and is a little bit higher than 100.

Also in this case, we are in a space in which we are online with our industrial plan. In this moment, there is few liquidity to cover more '27, but, let's say, 60% in May '26 is a good level of hedging.

The demand is interesting because is clear that in this moment, for the sides, data centers surely are the key elements to increase the demand. Because if you consider that a full cities like, let's say, Cremona has a peak power of 100 MW and is not base-loaded like consumption, is clear that is enough to have a new data center of 30 MW to have an increasing of demand more or less similar to a whole cities like Cremona.

In this moment, what is happening is that the data center are growing. There are new data center, not really super big till now in Lombardy, but are growing.

Surely the increasing of demand is mainly linked to artificial intelligence and all the digitalization. Also talking about e-mobility, something is happening, in particular due to the high reduction of prices of the electrical vehicle due to the competition with, in particular, BYD, Leapmotor, and others.

Because the price fall down. A good example is the price of the segment city car of Renault, for example.

Starting from the Renault Zoe to the new R5 electrical set the price 30% lower. What is happening is that really also the e-mobility is growing.

The last, but not least, is that looking the gas distribution, year-by-year there are 1% between 1% and 2%, depending where, of reduction of the PDR, and of course, are people that deciding to electrify something. That means cooking, heat pumps, or others.

Is normally to see this increasing of demand. Why so concentrated in Lombardy?

I think because Lombardy is every times the loco of Italy, and so all the new trend start typically from Lombardy talking about economy and grow. That's all.

To close with M&A, let's say, you know that we can't say nothing about these topics. We do full disclosure through the media of what is correct to say to the shareholders.

For example, the last news about our non-binding for the plants of biogas is now is correct, is true. Of course, we are a players in this sector, and we are interested to see the number, to have more information about the business because is useful also for us to define our strategy, let's say.

I have not more information, Javier, to share.

On the question on latest views on timing for a final or the announcement of an agreement with data center development?

This is correct. In this moment, you remember that during our presentation we put on the slide three projects.

In this moment, we can say that one project is in Brescia, one project is in Cassano d'Adda, near our super big thermo plant, and the third is under definition. Is ongoing, let's say.

We are working for authorization, of course, but consider that is also interesting that both the national law than the regional law put some conditions to have acceleration in the authorization, and the condition are all easy for us to face because is a brownfield and not greenfield, is to reduce the impact on the power grid, perfect behind-the-meter connection, connection with the district heating, and we are the sole operator able to do this, and with a good mix of renewable and so a mix of decarbonized electricity and water cycle efficiency. The reason why A2A is a good player in data center is exactly because we are able to move all these parts, and so to move quickly in the authorization because we are exactly full committed in this elements.

We are working for authorization, and our goal can be to start the construction of the first plant next year to be able to see the first EBITDA at the end of '28.

Interesting. Many thanks.

Yes, good afternoon, and thank you for taking my question. The first one is if you can give us an update on the concession renewals, especially in Lombardy.

The second one, if you can give us the quantify the impact of the new Acerra service contract, both for the full year because there was an impact in Q1, if we can have an estimate for for the full year. Then on the retail business, I wonder what what is what your commercial strategy is now in terms of fixed price versus variable price contracts, and whether there has been a change in the market or at least in your approach in the last few months.

Secondly, finally, as regards thermal generation and more in general your electricity volumes that went up a lot in Q1, whether this is related to strong demand in Lombardy or whether there are other drivers behind this increase. Thank you.

Okay. For the hydro concession, the situation is more or less the same that so we are waiting to open the discussion for the fourth way, the Lombardy model, let's say.

Frankly speaking, I imagine that is much easier to open the discussion in the second part of this year after the closing of the PNRR. You can understand that without the vincola from the PNRR is much easier.

Also because, frankly speaking, every times we say that the fourth way is a way to accelerate the capex, and so is completely online with the target of the PNRR. Because the fact that the hydro concession was introduced in the competition law was, in the original idea, a way to accelerated the capex, but at the end of the day is the opposite because till the tender no one invest €1 in the concession.

In this moment, all the public authorities understood that the only way to really to accelerate the capex is to reassign to the actual players the concession with a investment plan linked to the new 20-years-long concession. Talking about Acerra, the impact full year is €15 million.

Consider, guys, that Acerra is the only plant not owned by A2A, we are talking about a plant in which the return on investment is super high, probably the higher in the group, simply because there are no capex allocation from A2A. Talking about our strategy, in this moment, surely for our customer is interesting the fixed price because, as the calendar '27 maintain still a good price for energy.

When you sign, for example, a 2-years contract, the price is the average between the all the quarter till now from now till '28, and so the price is interesting and, of course, stable. This is the reason for why 50% of our customer ask for fixed price.

Our strategy is really to push more as possible the 10-years contract. Exactly yesterday, we signed the first PPA for small business.

That is interesting because in this moment we have PPA for corporate, for large business, steel producers and so on. We had the product for mass market, but we haven't the product for small business.

This is the reason for why we decided to build a PPA also for small business, and exactly yesterday started this new product, and immediately we signed the first contract. Is really important, in my idea, because for small business is very difficult to deal with us PPA profile and so on, and so they need exactly like mass market standard products.

The idea to give the opportunity also to small business to understand that with renewable you can fix the price for really long term, in my opinion, is the real change of paradigm of renewable. It's very important that every categories of customers can have the possibility to sign a contract linked to renewable for long term, and we are doing.

I think that we are the only company that is working in this strategy.

thanks. I only have one remaining question, which is still on the retail commercial approach.

Just wondering if you can share with us how much of the current fixed sales price are expiring within the end of the year, for which you will go into price negotiation. If you can tell us what kind of approach will you prefer now?

Will you be more aggressive on the price even because you can, by serving those contracts through renewables, trying, as you said, push the PPA at very low price from a higher starting point because prices in the next 6 months would be high, maybe you will have a chance to say be aggressive, not decreasing the offer price that much in order to bring quite market share and then built up on this strategy of the long-term contracts. Can you elaborate a bit how much this is a window of opportunity by having the PUN price that is pushed by the end of the year with a mix of expiring fixed contract that can be renewed at those conditions?

Thanks a lot.

Consider that starting from the fact that today the customer are divided half and half between mix and variable, and starting from the fact that in my idea, looking in 2030, let's say, I imagine a world with a lot of PPA mass market, fixed price, but not 2 years, but longer linked to renewable, and the rest variable. In this moment, surely the fact that we're able to build PPA mass market and small business give us the opportunity to sign PPA to an higher price than the PPA that we are able to sign with steel producers or also with data centers and so on.

Because the marginality in mass market and small business is higher. To give numbers, for example, the PPA mass market is €105 for megawatt hours.

The typical PPA in this moment B2B for a typical profile for a steel producer is €85, the differences is huge, 20%. The price of small business is in the middle.

The capacity to put on the market products able to face the needs of mass market and small business, in my opinion, is an incredible opportunity to sell our green energy to a good price. Remaining on the 1-year or 2-years fixed price, A2A is surely not the company with the lowest price because our strategy remain to give a good services, and we are recognized like a company both for mass market than for B2B able to give value in our ancillary services, starting from the fact that there is someone that is able to respond clearly to our call center when you have a problem.

Our strategy is this one and seems to work well, because if you look exactly the free market, the fact that in this quarter, with the huge churn that we saw, and with the results also looking our traditional competitors, I am absolutely happy to see our numbers.

Hi. Good afternoon, gentlemen.

Thank you for the presentation and for taking my question. I have three.

The first one is regards what you said on the power demand evolution in first quarter. I was wondering if you can share some flavor about your ability of capturing this demand increase in the region, and maybe if this will be served through your own plants you have in the region like the new renewables developments you expect, or your CCGTs capacity.

That is the first one. Second one, with regards to the disruption in energy markets, first one, with the increase in energy prices, was wondering if you can share some data regarding April and May consumption if actually the high price level is pushing the clients to reduce the consumption in order to contain the expenses related to that, and basically if you see a trend according to that.

Last point with regards to this topic, we've seen that some rumors about other countries in Europe that are thinking about putting some windfall taxes regard to the high energy prices. Maybe it will match more related to the hot sector, but electricity seems to not be excluded at all, or at least at basic level.

What your position, and that you think that this risk is still there also for Italy, and given also the fact that this could be temporary as you mentioned in your speech before? Thank you.

Davide. I will take the lead to answer your question.

For the power demand evolution and prices on the market, you know very well that we are managing different technologies. We are on the market with a constructive approach of our energy management department.

If you consider that January and February has been months in which the prices went down because of Decreto Bollette, the energy decree, and there has been a lot of pressure, and also some speculation regarding a possible conclusion on the Ukraine war with Russia. We take the opportunity to work with the market to hedge part of our exposure for '27, for example.

Immediately after, the war with Iran, and again we were in the market and we got again another opportunity. In particular with our way to stay on the market, we optimized our position in the market, creating value for the company by roughly €15 million to €20 million.

This is the way we continue to see the future quarters. Of course, volatility in a certain way create opportunities, but creates also some stress.

The visibility on April and mid-May was quite good for the production levels in thermo quantities, like it has been in the first quarter, with good prices, but we need to keep taking into consideration the hedging share we have available so to offset some peak with the hedging average. Regarding the windfall taxes, well, let me say, apart from having 2 percentage point increase on IRAP, I hope that this is the end of the story.

Nevertheless, we will see, we will follow closely what happen also in Europe, but we don't see and we haven't heard any rumors for a potential new tax or cap for the energy prices, also taking into consideration the fact that we are not in the same situation of 2022.

Also because the discussion on the decree Bollette was super tough, and the result was a couple of points of IRAP for a couple of year. Imagine that today the government, in the situation in which there are only a few months of the actual government, will reopen the dossier of the windfall, in my personal opinion, is impossible.

thank you. Just a quick question about the electricity networks.

I saw that in Q1, the electricity networks benefited from higher allowed revenues from the ROSS mechanism. The question is at what extent this is already included in the guidance and what could be the benefit for the full year?

Thank you.

It has been included in the guidance, in our target. It comes from part of the new regulation considering the fast money, and it is related to the fact that we are deploying capex mainly to an higher extent, also considering the fact that, as Renato said in the presentation, we are able to move capex in the electrification of the grid whenever there is the chance, because other business maybe are behind the target.

We have this kind of flexibility, and it is a very positive aspect of the regulation because give us some flexibility.

Thank you.

Thank you everyone for taking your attention to our results. If you need any follow-up, please contact the IR department, and we will be available shortly.

Bye.

Bye-bye.

Bye.