Acea — Interim / Quarterly Report 2016

May 12, 2016

Acea Group Q1 2016 Results

Rome, 12 May 2016

Financial highlights

(€m)		Q1 2015	Q1 2016	% change
	Consolidated revenues	761.6	713.7	-6.3%
	EBITDA	177.4	207.2	+16.8%
	EBIT	104.1	123.6	+18.7%	Impact of accounting for Resolution 654/2015: +€22.5m
	Profit/(loss) before tax	80.3	103.0	+28.3%
	Net Profit/(Loss)	53.5	69.2	+29.3%
	Minority Interest	3.0	2.3	-23.3%
	Group net profit/(loss)	50.5	66.9	+32.5%	Impact of accounting for Resolution 654/2015: +€15.3m

(€m)	31 Mar 2015 (a)	31 Dec 2015 (b)	31 Mar 2016 (c)	Change (c-a)	Change (c-b)
NET DEBT	2,139.6	2,010.1	2,173.9	34.3	163.8
Shareholders' Equity	1,552.7	1,596.1	1,656.4	103.7	60.3
Invested Capital	3,692.3	3,606.2	3,830.3	138.0	224.1

EBITDA

Total number of employees	Q1 2015	Q1 2016
Acea Spa	654	637
Environment	220	230
Energy	530	554
Water °	1,966	1,985
Network	1,344	1,315
Total	4,714	4,721

°Figures do not include:

• Q1 2015 Overseas water operations: 478

• Q1 2016 Overseas water operations: 269

EBITDA €m

EBITDA and Key quantitative data

Environment EBITDA main drivers

Aria: increase of volume of electricity produced +€0.7m Kyklos: -€0.2m Aquaser: -€0.5m SAO: new Orvieto waste treatment plant enters service +€0.6m

(€m)	Q1 2015	Q1 2016	% change	Key quantitative data	Q1 2015	Q1 2016
EBITDA	12.8	13.3	+3.9%	Treatment and disposal (/000s of tonnes)	186	197
Capex	0.9	1.6	+77.8%	WTE electricity sold (GWh)	63	66

EBITDA main drivers Electricity production margin decrease (fall in energy prices and volumes decrease) -€1.4m

(€m)	Q1 2015	Q1 2016	% change	Key quantitative data	Q1 2015	Q1 2016
EBITDA	31.5	32.6	+3.5%	Total electricity production (GWh)	153	108
Production	10.7	9.3	-13.1%	Total electricity sold (GWh)	2,501	2,171
Sales	20.8	23.3	+12.0%	Enhanced Protection Market	821	737
				Free Market	1,680	1,434
Capex	5.4	11.8	+118.5%	(Mm3) Total gas sold	62	55

EBITDA and Key quantitative data

• Efficiency
• Acea ATO2: +€7.9m

Growth at companies consolidated using the equity method +€1.2m

Aguazul Bogotà: -€2.8m

(€m)	Q1 2015	Q1 2016	% change	Key quantitative data	Q1 2015	Q1 2016
EBITDA	74.4	80.7	+8.5%	Total volume of water sold	106	103
of which: Profit/(Loss) on investments consolidated under IFRS 11	5.7	6.9	+21.1%	(Mm3)
Capex	32.0	41.7	+30.3%

EBITDA and Key quantitative data

EBITDA main drivers

Grids Recognition of the positive component linked to the regulatory change introduced by AEEGSI Resolution 654/2015: +€22.5m

Public Lighting: -€2.3m

(€m)	Q1 2015	Q1 2016	% change	Key quantitative data	Q1 2015	Q1 2016
EBITDA	60.0	80.6	+34.3%	Total electricity distributed	2,618	2,536
Capex	29.9	39.6	+32.4%	(GWh)
	Corporate		Impact of accounting 654/2015: +€22.5m	for Resolution

(€m)	Q1 2015	Q1 2016	% change
EBITDA	(1.3)	0	n/m
Capex	3.8	2.3	-39.5%

EBIT and Net Profit

EBIT (€m) NET PROFIT (€m)

Acea Group Q1 2016 Results ⁷

Net Debt

NET DEBT/ EQUITY	NET DEBT/ EQUITY
31 Dec 2015	31 Mar 2016
1.3x	1.3x

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