Acea — Interim / Quarterly Report 2015

May 14, 2015

Rome, 15 May 2015

Financial highlights

(€m)		1Q14	1Q15	Change %
	Consolidated revenues	780.1	761.6	-2.4%
	EBITDA	166.0	177.4	+6.9%
	EBIT	99.9	104.1	+4.2%
	Profit/(loss) before tax	77.3	80.3	+3.9%
	Tax Rate	39.6%	33.3%
	Net Profit/(Loss)	46.7	53.5	+14.6%
	Minority Interest	2.2	3.0	+36.4%
	Group net profit/(loss)	44.5	50.5	+13.5%

(€m)	31 March 2014	31 Dec. 2014	31 March 2015	Change	Change
	(a)	(b)	(c)	(c/a)	(c/b)
NET DEBT	2,323.9	2,089.1	2,139.6	-7.9%	+2.4%

EBITDA

Total number of employees	1Q2014	1Q2015
Acea Spa	672	654
Environment	218	220
Energy	531	530
Water °	1,993	1,966
Network	1,381	1,344
Total	4,795	4,714

° Figures do not include:

• 1Q2014 Overseas water operations: 420

• 1Q2015 Overseas water operations: 478

EBITDA €m

+6.9%

EBITDA and Key quantitative data

Environment Reduction in the sale price of the energy produced

EBITDA main drivers

Shutdown of the Kyklos plant

(€m)	1Q14	1Q15	Change %	Key quantitative data
EBITDA	14.2	12.8	-9.9%		1Q14	1Q15
				Treatment and disposal (/000s of tonnes)	199	186
				WTE electricity sold (GWh)	63	64

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

(€m)	1Q14	1Q15	Change %	Key quantitative data
EBITDA	24.6	31.5	28.0%		1Q14	1Q15
Production	11.5	10.7	-7.0%	Total Electricity production (GWh)	158	153
Sales	13.1	20.8	+58.8%	Total Electricity sold (GWh)	2,846	2,501
				Enhanced Protection Market	854	821
				Free Market	1,992	1,680
				Total Gas sold (Mmc)	53	62

EBITDA and Key quantitative data

Water

EBITDA main drivers

Revenue increase from the integrated water service +3.1€m

Aguazul Bogodà non-recurring income 2.5€m

(€m)	1Q14	1Q15	Change %
Profit/(Loss) on investments consolidated under IFRS 11	5.7	5.7	-
of which: EBITDA	29.1	33.7	+15.8%
of which: Amortisation, depreciation and provisions	(17.3)	(22.6)	+30.6%
of which: Financial income/(expense)	(2.3)	(2.1)	-8.7%
of which: Income tax expense	(3.8)	(3.3)	-13.2%
EBITDA	67.8	74.4	+9.7%
Key quantitative data
		1Q14	1Q15
Total Volumes of water sold (Mmc)		109	106

EBITDA and Key quantitative data

Recognition in Q1 2014 of non recurring income from Energy Efficiency Certificates 5.6 €m (€m) 1Q14 1Q15 Change % (€m) EBITDA 62.2 60.0 -3.5% Key quantitative data 1Q14 1Q15	Grids
EBITDA
Total Electricity	distributed (GWh)	2,600	2,618

Mainly in the Energy segment

Depreciation 16.0 18.4 +15.0%

Provisions 2.4 2.6 +8.3%

Total 66.1 73.2 +10.7%

Capex

* Implementation of information systems and work on upgrading the grid

** Completion in 2014 of the revamp of ARIA's plants

*** New applications implemented by Acea Energia

Cash flow

	CASH FLOW ANALYSIS (€m)		1Q14		2014	1Q15
EBITDA			166		718	177
	Change in net working capital		(87)		76	(98)
Investment			(66)		(317)	(72)
	Change in net fixed assets		(28)		(21)	(5)
	Free Cash Flow 1		(15)		455	2
	Net finance income/(costs)		(25)		(101)	(24)
	Income tax expense		(31)		(121)	(27)
	Free Cash Flow 2		(71)		233	(49)
	Dividends and other (Equity)		(7)		(74)	(2)
	Profit/(loss) from investments		3		1	0
	Change in Net Financial Position		(75)		160	(51)
EBITDA 1Q15 177	Change in net working capital (98) *	Investment	Change in net fixed assets	Free Cash Flow 2	Net finance income/ (costs)	Income tax expense	Sub-total before dividends and the profit/(loss) from investments	Dividends and other (Equity)	Change in Net Financial Position
		(72)	(5)		(24)	(27)	(49)	(2)	(51)
	Cash flows						Cash generated/Used

* Before impairment losses on receivables

Change in Net Financial

9

Net Debt

(€m)	31 March 2014 (a)	31 Dec. 2014 (b)	31 March 2015 (c)	Change (c-a)	Change (c-b)
NET DEBT	2,323.9	2,089.1	2,139.6	(184.3)	50.5
Medium/Long-term	2,324.3	3,006.4	2,894.6	570.3	(111.8)
Short-term	(0.4)	(917.3)	(755.0)	(754.6)	162.3
Shareholders' equity	1,446.6	1.502,4	1,552.7	106.1	50.3

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

(€m) NET DEBT	(€m) NET DEBT
31 Dec. 2013 –	31 Dec. 2014 –
31 March 2014	31 March 2015
2,249	2,089
75	51
2,324	2,140
+3.3%	+2.4%

Quarter vs Quarter improvement: 75-51 = 24 €m

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.

***

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, FRANCO BALSAMO – CFO OF THE COMPANY, DECLARES THAT THE ACCOUNTING INFORMATION CONTAINED HEREIN CORRESPOND TO DOCUMENT RESULTS, BOOKS AND ACCOUNTING RECORDS.