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Internal growth

Internal growth is pursued by implementing the usual efficiency levers (increased productivity and cost reduction), synergies (extractable from M&As that have already been carried out and fall within the Group's scope of operations at the time when the business plan was published), expansion of the customer base for free market energy sales and special and industrial waste treatment (internal increase in the market share, also involving cross selling), infrastructure development, quality and efficiency bonuses awarded by the normative system for regulated activities, increased return on regulated invested capital, increases in market prices, efficiencies derived from implementing technological innovations, expansion in gas distribution through concessions granted in tenders, expansion in energy sales through tenders, new services in public lighting assigned through tenders, expansion in offers with new added value energy services.

This is a wide and diversified set of levers for growth that can be activated within the "multi-utility" portfolio that we have proven to be able to promote uninterrupted growth in the past. We believe it can be pursued in the future as well: the contribution to growth in Ebitda deriving from internal growth comes to +188 m€ (including the "negatives" amounting to -76m€) in the new business plan to 2023, and its major components are illustrated in the following graph.

 
Waste MKT drivers

This growth, moreover, will be able to rely on a few positive scenarios specific to each business. In waste treatment, an upward trend in market prices for special and industrial waste treatment has been seen across Europe in recent years, due to a lack of plants that is unlikely to be resolved over the short term, meaning that further increases will probably occur in the future. In regulated activities, the tariff systems have just been revised by the Authority, including the one for collection and street sweeping (the only one that had remained under the jurisdiction of "local" authorities), thus providing greater certainty as to return on invested capital, over the medium-long term as well, than was available for the business plan to 2022. The process of liberalising the electricity sales market as of 2022 will see us active, starting even today from a significant market position (behind only Enel and Eni), and has already seen us successfully implement market expansion strategies in the past, achieving a rate of growth higher than our national competitors.

 
Energy MKT: Client expansion
 
Maintaining past growth drivers
 


Page updated 10 January 2020

 
 
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