Operating figures, equity and financial results for the year

EBITDA at 31 December 2019 was € 392.0 million, an increase of € 31.2 million compared to 31 December 2018. The change in EBITDA is mainly due to areti for € 28.3 million, primarily attributable to the energy balance sheet (+ € 18.2 million) as a result of tariff updates, equalisation and higher investments, as well as higher capitalisation of personnel costs (+ € 6.5 million). As regards the energy balance, at 31 December 2019 areti injected 9,849 GWh into the network with a 0.6% increase compared to 2018.

The EBITDA for Public Lighting is equal to € 1.9 million, an increase of € 7.3 million compared to 31 December 2018 (when it was negative for € 5.4 million). In July 2019, the transformation of the functional lights envisaged in the agreement was completed, while work continued on the projects relating to the new activations requested by both Roma Capitale and third parties. There was a significant increase in activity on new projects (+ € 1.8 million) linked to a substantial reduction in external costs (- € 1.8 million). It should be noted that during 2019, 12,014 light fixtures were replaced in addition to the 170,556 already replaced at the end of 2018. Extraordinary maintenance and modernisation and safety activities agreed with Roma Capitale were carried out, thus creating 985 new lighting points.

Acea Produzione's EBITDA was € 38.6 million, down € 7.7 million on the previous year. The change is attributable both to lower production volumes and lower market prices. The change is also due to lower production volumes and higher gas purchase and consultancy costs, partly mitigated by the revenue from penalties and revenues from Energy Efficiency Certificates sold in the period.

The EBITDA deriving from the change in the scope of consolidation for the acquisition of the photovoltaic companies amounts to € 3.6 million and concerns the acquisition of the photovoltaic companies during the second half of 2019. The installed capacity of the new plants is 28 MWp.

The first application of IFRS 16 resulted in a benefit to EBITDA in terms of lower rentals for € 1.7 million.

The average workforce decreased by 33 units, primarily in areti.

The operating result was mainly affected by the release of a provision made in connection with the GALA deal for € 12.8 million, partly offset by higher amortisation and depreciation for the period (+ € 14.2 million), of which € 3.0 million for changes in the scope of consolidation (new photovoltaic companies).

Investments amounted to € 287.8 million, an increase of € 49.4 million mainly due to areti (+ € 47.2 million) and mainly refer to the renewal and upgrading of the MV/LV network and the development of ISTE projects (+ € 38.5 million), as well as work on primary and secondary cabins and meters. We also note the purchase of the Via Flaminia headquarters (€ 2.8 million). Intangible investments refer to projects for the re-engineering of information and commercial systems. This year the so-called "Resilience Plan" was implemented, which consists of interventions on substations and on the MV and LV networks.

Investments made by Acea Produzione amount to € 11.5 million (- € 3.4 million) and mainly concern plant revamping works for the Mandela and Tor di Valle and Montemartini hydroelectric power plants, static and functional upgrades of the tunnels deriving from the San Cosimato dam reservoir and the extension of the district heating network in the Mezzocammino district in the south of Rome.

Net financial debt stood at € 1,320.5 million at 31 December 2019, showing an increase of € 198.6 million compared to 31 December 2018. The effects are mainly due to the growing volume of investments, as well as to the dynamics of the operating cash flow and payout. The change in the consolidation area increased financial debt by € 60.0 million, while the first-time adoption of IFRS 16 contributed to an increase in financial debt of € 23.1 million.