Acea — Earnings Release 2017

Apr 26, 2017

Q1 2017 Results

26 April 2017

Q1 2017 financial highlights ACEA Group

(€m)	Q1 2016	Q1 2016 adjusted*	Q1 2017	% Change	% Change
	a	b	c	c/a	c/b
Consolidated revenue	713.7	691.2	725.5	+1.7%	+5.0%
EBITDA	207.2	184.7	214.4	+3.5%	+16.1%
EBIT	123.6	101.1	117.2	-5.2%	+15.9%
Profit/(Loss) before tax	103.0	80.5	98.3	-4.6%	+22.1%
Net Profit/(Loss)	69.2	54.0	68.5	-1.0%	+26.9%
Group net profit/(loss)	66.9	51.7	65.7	-1.8%	+27.1%
Capex	97.0		126.4	+30.3%

* Adjusted amounts for Q1 2016 do not include the positive impact of elimination of the ''regulatory lag'' (€22.5m pre-tax)

(€m)	31 March 2016 (a)	31 Dec 2016 (b)	31 March 2017 (c)	Change (c-a)	Change (c-b)
NET DEBT	2,173.9	2,126.9	2,234.8	60.9	107.9
Equity	1,656.4	1,757.9	1,838.2	181.8	80.3
Invested Capital	3,830.3	3,884.8	4,073.0	242.7	188.2

EBITDA

Total number of employees (average)	Q1 2016	Q1 2017
Acea Spa	636	579
Environment	228	302
Energy	553	554
Water	2,252	2,782
Grids	1,316	1,281
Total*	4,985	5,498

* Figure does not include employees of companies consolidated using the equity method.

Scope of consolidation: changes compared with 2016

	Environment			Water
(€m)	Acque Industriali	GEAL	TWS (ex Severn Trent)	Aguas de San Pedro	AguaAzul Bogotà	Total
Date	1 Jan. 2017	8 Feb 2017	23 Feb 2017	Last quarter 2016	2016
% acquired	51.0%	19.2%	100%	29.7%	Changes in BoD composition
% held at 31 March 2017	51.0%	48.0%	100%	60.7%
Method of consolidation	Line-by-line	Equity	Line-by-line	Line-by-line	Equity
EBITDA Q1 2017	(0.4)	0.3	0.1	2.8	0.0	2.8

Higher quantity of electricity sold by Terni and San Vittore plants

(€m)	Q1 2016	Q1 2017	% change	Key quantitative data	Q1 2016	Q1 2017
EBITDA	13.3	14.5	+9.0%	Treatment and disposal* ('000s of tonnes)	197	274
Capex	1.6	5.5	n/m	WTE electricity produced (GWh)	66	82

*Includes ash disposed of

EBITDA main drivers Electricity production (increased quantity of electricity produced)

(€m)	Q1 2016	Q1 2017	% change	Key quantitative data	Q1 2016	Q1 2017
EBITDA	32.6	35.8	+9.8%	production (GWh) Total Electricity	108	131
Production	9	13	+44.4%	(GWh) Total Electricity sold	2,171	1,813
Sales	23	23	-	Enhanced Protection Market	737	730
				Free Market	1,434	1,083
Capex	11.8	9.1	-22.9%	(Mm3) Total Gas sold	55	51

(€m)	Q1 2016	Q1 2017	% change	Key quantitative data	Q1 2016	Q1 2017
EBITDA	80.7	95.9	+18.8%	Total volume of water sold	103	103
of which: Profit/(Loss) on investments consolidated under IFRS 11	6.9	5.2	-24.6%	(Mm3)
Capex	41.7	57.8	+38.6%

• Grids Operational efficiency and new technologies
• Impact of fifth regulatory cycle

(€m)	Q1 2016 a	Q1 2016 adjusted* b	Q1 2017 c	% change c/a	% change c/b	Key quantitative data	Q1 2016	Q1 2017
EBITDA	80.6	58.1	70.6	-12.4%	+21.5%	Total Electricity distributed (GWh)	2,536	2,509
Capex	39.6		50.6	+27.8%

* After positive impact of regulatory accounting (€22.5 m)

(€m)	Q1 2016	Q1 2017	% change
EBITDA	0	(2.4)	n/m
Capex	2.3	3.4	+47.8%

EBIT and Net Profit ACEA Group

ACEA Group Cash flow

CASH FLOW ANALYSIS (€m)	Q1 2016	Q1 2017
EBITDA	207	214
Change in net working capital	(188)	(137)
Investment	(97)	(127)
Free Cash Flow	(78)	(50)
Net finance income/(costs)	(21)	(19)
Income tax expense	(34)	(30)
Dividends	0	0
Other	(31)	(9)
Total Cash Flow	(164)	(108)

* Before impairment losses on receivables

Net Debt ACEA Group

(€m)	31 Mar 2016 (a)	31 Dec 2016 (b)	31 Mar 2017 (c)	Change (c-a)	Change (c-b)
NET DEBT	2,173.9	2,126.9	2,234.8	60.9	107.9
Medium/Long-term	2,648.8	2,769.4	2,742.6	93.8	(26.8)
Short-term	(474.9)	(642.5)	(507.8)	(32.9)	134.7

NET DEBT/ EQUITY	NET DEBT/ EQUITY
31 Dec 2016	31 Mar 2017
1.2x	1.2x

Disclaimer ACEA Group

THIS PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT REFLECT THE COMPANY'S MANAGEMENT'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND FINANCIAL AND OPERATIONAL PERFORMANCE OF THE COMPANY AND ITS SUBSIDIARIES.

THESE FORWARD-LOOKING STATEMENTS ARE BASED ON ACEA S.P.A.'S CURRENT EXPECTATIONS AND PROJECTIONS ABOUT FUTURE EVENTS. BECAUSE THESE FORWARD-LOOKING STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES, ACTUAL FUTURE RESULTS OR PERFORMANCE MAY MATERIALLY DIFFER FROM THOSE EXPRESSED THEREIN OR IMPLIED THEREBY DUE TO ANY NUMBER OF DIFFERENT FACTORS, MANY OF WHICH ARE BEYOND THE ABILITY OF ACEA S.P.A. TO CONTROL OR ESTIMATE PRECISELY, INCLUDING CHANGES IN THE REGULATORY FRAMEWORK, FUTURE MARKET DEVELOPMENTS, FLUCTUATIONS IN THE PRICE AND AVAILABILITY OF FUEL AND OTHER RISKS.

YOU ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN, WHICH ARE MADE ONLY AS OF THE DATE OF THIS PRESENTATION. ACEA S.P.A. DOES NOT UNDERTAKE ANY OBLIGATION TO PUBLICLY RELEASE ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE OF THIS PRESENTATION.

THIS PRESENTATION DOES NOT CONSTITUTE A RECOMMENDATION REGARDING THE SECURITIES OF THE COMPANY.

***

PURSUANT TO ART. 154-BIS, PAR. 2, OF THE LEGISLATIVE DECREE N. 58 OF FEBRUARY 24, 1998,THE EXECUTIVE IN CHARGE OF PREPARING THE CORPORATE ACCOUNTING DOCUMENTS AT ACEA, DEMETRIO MAURO – CFO OF THE COMPANY - DECLARES THAT THE ACCOUNTING INFORMATION CONTAINED HEREIN CORRESPOND TO DOCUMENT RESULTS, BOOKS AND ACCOUNTING RECORDS.