Acea — Interim / Quarterly Report 2015

Nov 12, 2015

Acea Group 9M2015 Results

Rome, 12 November 2015

Financial highlights

(€m)	9M2014	9M2015	Change %
Consolidated revenues	2,280.7	2,167.7	-5.0%
EBITDA	504.9	530.9	+5.1%
EBIT	274.5	284.8	+3.8%
Group net profit/(loss)	112.8	136.6	+21.1%
Capex	218.9	284.8	+30.1%

(€m)	30 Sept 2014 (a)	31 Dec 2014 (b)	30 Sept 2015 (c)	Change (c/a)	Change (c/b)
NET DEBT	2,412.0	2,089.1	2,130.8	-11.7%	+2.0%
Shareholders' Equity	1,461.2	1,502.4	1,553.8	+6.3%	+3.4%
Invested Capital	3,873.2	3,591.5	3,684.6	-4.9%	+2.6%

EBITDA

Total number of employees	9M2014	9M2015
Acea Spa	669	640
Environment	214	220
Energy	534	539
Water °	2,003	1,962
Network	1,378	1,348
Total	4,798	4,709

° Figures do not include:

• 9M2014 Overseas water operations: 406

• 9M2015 Overseas water operations: 253

EBITDA €m

26 €m +5.1%

Aria's plants: increase of volume of electricity sold +2.2€m

Aquaser: +1.4€m

Kyklos: shutdown of the plant -2.3€m

Solemme: decrease of volume -0.3€m

(€m)	9M14	9M15	Change %	Key quantitative data	9M14	9M15
EBITDA	39.8	40.4	+1.5%	Treatment and disposal (/000s of tonnes)	589	570
Capex	7.3	14.9	+104.1%	WTE electricity sold (GWh)	183	196

Revamping of SAO plant (Orvieto) has been completed adding new composting plant:

Construction of new line 1 WTE plant S. Vittore. On Track on target (startup operation end 2016)

• Installed capacity 1MW
• Treatment capacity 60,000 Ton. waste/year
• Installed capacity 12.5 MWe
• Treatment capacity 100,000 Ton. RDF/year

Energy Electricity sales margin increase +14.0€m

EBITDA main drivers Electricity production margin decrease (fall in energy prices and volumes decrease) -0.8€m

(€m)	9M14	9M15	Change %	Key quantitative data	9M14	9M15
EBITDA	64.5	77.7	+20.5%	Total Electricity production (GWh)	399	368
Production	26.6	25.8	-3.0%	Total Electricity sold (GWh)	8,182	7,200
Sales	37.9	51.9	+36.9%	Enhanced Protection Market	2,269	2,283
				Free Market	5,913	4,917
Capex	11.2	14.6	+30.4%	Total Gas sold (Mmc)	68	88

Efficiency

Acea ATO2: tariff increase +12.2€m

Growth at companies consolidated using the equity method +7.3€m

Extraordinary items -22.5€m (including Aguazul Bogotà non-recurring income)

(€m)	9M14	9M15	Change %	Key quantitative data	9M14	9M15
EBITDA	215.1	225.5	+4.8%	Total volumes of water sold	418	405
of which: Profit/(Loss) on investments consolidated under IFRS 11	13.5	20.8	+54.1%	(Mmc)
Investimenti	105.4	128.3	+21.7%

Tariff increase composition

(€m)	9M14	9M15	Change %	Key quantitative data	9M14	9M15
EBITDA	184.4	187.7	+1.8%	Total Electricity distributed	7,718	7,959
Capex	85.3	102.4	+20.0%	(GWh)

(€m)	9M14 9M15	Change %	Acea2.0 capex 9M15: 16.7€m
EBITDA	1.1 (0.4)	-136.4%	Of which > 14€m related to regulated business (Water and
Capex	9.7 7.9	-18.6%	Networks)

EBIT and Net Profit

Cash flow

CASH FLOW ANALYSIS (€m)	2014	1Q15	1H15	9M15
EBITDA	718	177	353	531
Change in net working capital	76	(98)	(23)	(32)
Investment	(317)	(72)	(168)	(287)
Change in net fixed assets	(21)	(5)	(17)	(21)
Free Cash Flow 1	455	2	145	191
Net finance income/(costs)	(101)	(24)	(45)	(67)
Income tax expense	(121)	(27)	(53)	(75)
Free Cash Flow 2	233	(49)	47	49
Dividends and other (Equity)	(74)	(2)	(86)	(90)
Profit/(loss) from investments	1	0	(1)	(1)
Change in Net Financial Position	160	(51)	(40)	(42)

Net Debt

(€m)	30 Sep 2014 (a)	31 Dec. 2014 (b)	30 Sept 2015 (c)	Change (c-a)	Change (c-b)
NET DEBT	2,412.0	2,089.1	2,130.8	(281.2)	41.7
Medium/Long-term	2,913.4	3,006.4	2,656.0	(257.4)	(350.4)
Short-term	(501.4)	(917.3)	(525.2)	(23.8)	392.1

NET DEBT/ SHAREHOLDER'S EQUITY 31 Dec. 2014	NET DEBT/ SHAREHOLDER'S EQUITY 30 Sept. 2015
1.4x	1.4x

(€m) NET DEBT	(€m) NET DEBT
31 Dec. 2013 –	31 Dec. 2014 –
30 Sept. 2014	30 Sept. 2015
2,249	2,131
2,412	42
163	2,089
+7.2%	+2.0%

9M15 vs 9M14 improvement: 163-42 = 121 €m

Project Acea 2.0

New application map at ATO2 (go-live 28 Sept 2015)

Project ATO2 has enabled us to rationalise and consolidate the application map, eliminating 19 systems/applications

Disclaimer

THIS PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT REFLECT THE COMPANY'S MANAGEMENT'S CURRENT VIEWS WHIT 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 DIFFER MATERIALLY FROM THOSE EXPRESSED IN OR IMPLIED BY THESE STATEMENTS 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 ENVIRONMENT, 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.

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PURSUANT TO ART. 154-BIS, PAR. 2, OF THE UNIFIED FINANCIAL ACT OF FEBRUARY 24, 1998, THE EXECUTIVE IN CHARGE OF PREPARING THE CORPORATE ACCOUNTING DOCUMENTS AT ACEA, IOLANDA PAPALINI, DECLARES THAT THE ACCOUNTING INFORMATION CONTAINED HEREIN CORRESPOND TO DOCUMENT RESULTS, BOOKS AND ACCOUNTING RECORDS.