The long-term growth drivers are confirmed, mainly linked to the energy transition, the strengthening of telecommunications networks (digitalisation), and the electrification process. The Group can also leverage its broad business and geographical diversification, a solid capital structure that further benefits from the investment grade rating recently received, an efficient and flexible supply chain and lean organisation, all of which is enabling it to effectively seize growth opportunities.
Given the above considerations and in addition to the solid 1H 2023 performance, the Group decided to revise its FY 2023 guidance upwards compared to that announced in March. For FY 2023, the Group expects an Adjusted EBITDA in the range of €1,575-1,675 million, sharply up compared to both the €1,375-1,525 million range previously announced and the €1,488 million reported for 2022.
Moreover, the Group also decided to upgrade the cash generation target as it now expects a cash flow generation of €550-650 million (FCF before acquisitions and disposals) for FY 2023, compared to the €450-550 million range previously announced.
These forecasts assume no material changes in both the geopolitical crisis relating to the military conflict in Ukraine and in the development of the health situation linked to the previous pandemic, in addition to excluding extreme dynamics in the prices of production factors or significant supply chain disruptions. The forecasts are based on the Company's current business scope, assuming a EUR/USD exchange rate of 1.10, and do not include antitrust-related impacts on cash flows.