Milan, July 29th, 2016 - Amazon S3...Milan, July 29th, 2016 This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent

A2A

H1 2016 Results

Milan, July 29th, 2016

This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent.

Update 3R

2

RESTRUCTURE

A2A gencogas, platform for the Italian thermoelectric consolidation

A2A Energie Future, SPV for traditional thermal plants (Brindisi, San Filippoand Monfalcone) re-conversion

Integration of Edipower Hydro plants and A2A Trading into A2A, with benefitsfrom company simplification and best practice sharing ongoing

RELAUNCH

Unareti, a single company for the distribution of electricity and gas,established with positive effects on costs and investment

Closed two M&A deals in waste sector, LaBiCo and Rieco Resmal; otherdeals in pipeline

Growth of retail customers and inhabitants reached by collectionservices on track

Approved the Integrated Water Cycle adjustment tariff (period 2007-11)

RESHAPE

Start-up of a new thermodynamics solar system (STEM®) in partnershipwith Magaldi in San Filippo plant

Launch of A2A Smart City, a new company aimed at cities smarttransformation

Nissan-A2A partnership for e-mobility Fast Charger network in Milan


Update 3D and additional projects underway

3

DISCIPLINE,DIALOGUE &

DIGITAL

Discipline:

- En&A: results better than expected

- Further improvement in Retail credit collection

- Lean Project ongoing in several functional units, many operationalefficiencies already achieved

Dialogue:

- 2015 Sustainability Report. Formally approved by the Shareholders'Meeting

- Issued the A2A Sustainability Policy with sustainability objectives to beachieved by 2030 and the A2A Sustainability Plan that lays them out intofeasible actions and concrete results by 2020

- «Banco dell’energia», a new innovative non profit organization to helpfamilies in hardship

- Smart working: Pilot Phase 1 launched

ADDITIONALPROJECTS

- Business Unit "Estero“: business development plan started

- Real Estate Rationalization

- LGH: green light, subject to conditions, from Antitrust Authority

This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent. 4

H1 2016 Consolidated ResultsHighlights of the period

VsH1 2015

+ -

Regulated Components Retail

CCGT Energy Scenario

Import/Export EPCG

San Filippo del Mela

2007-2011 IWC balance

Hydroelectric production Trading portfolio

Gas and electricityallowed revenues

Fixed costs


H1 2016 vs H1 2015 Consolidated Results


H1 2015

152

H1 2016

212

FY 2015

2,897

H1 2016

2,832

H1 2015

2,467

H1 2016

2,323

H1 2016 vs H1 2015 ResultsConsolidated results

REVENUES EBITDA

GROUPNET INCOME

NET FINANCIALPOSITION

€M

-6%

-2%+67%

H1 2015

562

H1 2016

614

+9%

6

GROUP ORDINARYNET INCOME*

+60€M

* Excluding extraordinary items related to Edipower Non Proportional Demerger

H1 2015

152

H1 2016

254


H12015

562

-10 -4

547

Generation& Trading

-28

13

Waste

3

Networks&

DistrictHeating

-4

Internationalandother

3 534

H1 2016Non

RecurringItems

80

H12016

614

H1 2015Non

RecurringItems

Changein perim.

H12015

Ordinary

EnergyRetail

H12016

Ordinary

€M

+52

7

-13

H1 2016 vs H1 2015 ResultsGroup EBITDA


H1 2015

192

H1 2015non

recurringitems

-4

AstaCellina

-4

H1 2015Ordinary

184

Environ.Market

9

-2

TradingPortfolio

-10

Other

6

FixedCost (*)

-3

SFMEBITDA"mustrun"

-21

GasMargin

-7

H1 2016Ordinary

156

H1 2016non

recurringitems

14

H1 2016

170

Plants'Hedging and

Dispatching (*)

H1 2016 vs H1 2015 ResultsFocus on Generation & Trading EBITDA

-22

8

€M

-28

(*) Includes San Filippo del Mela merchant


H12015

54

-0.5

53

ElectricityMarket

10

GasMarket

1

FixedCosts

-1

Other

4

H12016

Ordinary

666

H1 2016

73

H1 2015Non

RecurringItems

H12015

Ordinary

H1 2016Non

RecurringItems

+19

+13

H1 2016 vs H1 2015 ResultsFocus on Energy Retail EBITDA

9


H1 2015

14

71

34

110

H1 2015 NonRecurring

Items

-2

H1 2015Ordinary

14

70

33

108

Collection

3

Urban WasteTreatment

Plants

OtherTreatment

Plants

-3

Internationalprojects

0

H1 2016Ordinary

11

73

36

111

H1 2016 NonRecurring

Items

H1 2016

11

81

36

1193

8

H1 2016 vs H1 2015 ResultsFocus on Waste EBITDA

€M

Urban Waste Treatment Plants

Collection Other Treatment Plants

International Projects

10

+9

+3

This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior writtenconsent.

H12015

97

103

-136

32

75 75

31

12

-136

101

98

WaterCycle

ElectricityNetworks

-8

GasNetworks

-4

PublicLighting

0

DistrictHeating

Fixed Costs

10

H12016

Ordinary

93

94

-126

35

69

H1 2016Non

recurringItems

H12016

93

95

-126

67

86

12

H1 2015Non

RecurringItems

H12015

Ordinary

4

-6

12

12177

51

227183 181 177

51

227183 181

€M +44

11

-4

Gas NetworksContribution Margin

Electricity NetworksContribution Margin

Water CycleContribution Margin

Public LightingContribution Margin Fixed Costs

HeatingContribution Margin

-2

H1 2016 vs H1 2015 ResultsFocus on Networks and District Heating EBITDA

51


H1 2015

9

23

32

Generation and Retail

-1

Distribution

4

H1 2016

13

22

350

H1 2016 vs H1 2015 ResultsFocus on International EBITDA

€M

+3

12

Energy

Other

Distribution


2016EBITDA

614

-36

52 4

-63

EBT

373

Taxes

-106 -13

NetIncome

254

D&A

-198

RiskProvisions

EdipowerDemerger

Capital Gain

Investmentsat equity

Net

FinancialExpenses

Minorities

€M

562 -199 -1 239 -77 -10 1522015A

H1 2016 vs H1 2015 ResultsFrom EBITDA to Group Net Income

13

3 -77-49


GroupReported

Net IncomeH1 2016

254

EdipowerNon Proportional

Demerger

-42

GroupOrdinary

Net IncomeH1 2016

212

GroupOrdinary

Net IncomeH1 2015

152

H1 2016 vs H1 2015 ResultsFrom Group Net Income to Group Ordinary Net Income

€M

+60

14


H1 2015

27

52

54

133

H1 2016

11

58

61

130

Maintenance

Development

Mandatory

H1 2015

71

3

7

28

23

133

H1 2016

78

4

10

8

2

28

130

1Generation &

Trading

Energy Retail

Waste

Networks and DistrictHeating

Corporate

International

H1 2016 vs H1 2015 ResultsCapex

BREAKDOWN BY ACTIVITY BREAKDOWN BY BUSINESS

-3 -3

€M

15NOTE: 2016A Networks figures include Brescia LED project investment for an amount equal to 1€M, reclassified as «financial receivable» in Financial Statement according to IFRICtreatment


2016EBITDA

614

Changein Net

WorkingCapital

-71

Change inother

Assets/Liabilities

-74

Use ofFunds

-51

Tax Paid

-7

NetFinancialExpenses

-54

FFO(1)

357

Capex

-129

Dividends

-126

FreeCashFlowante

LGH acquisition

102

SharesBuyback

-37

Net FreeCashFlow

65

H1 2016 ResultsNet Free Cash Flow

€M

(1) Funds from operations after working capital change

16


Annexes


H1 2016 vs H1 2015 ResultsConsolidated Results: P&L

EBITDA

D&A

Provisions

EBIT

Net FinancialExpenses

Associates & JV

EBT

Taxes

Minorities

GROUP NETINCOME

H1 2015 H1 2016 %

+9.3%

-0.5%

-26.5%

+21.0%

-18.2%

+33.3%

+56.1%

+37.7%

+30.0%

€M

REVENUES -5.8%

CHANGE

+52

+1

+13

+66

+14

+1

+134

-29

-3

-144

614

(198)

(36)

380

(63)

4

373

(106)

(13)

562

(199)

(49)

314

(77)

3

239

(77)

(10)

152

2,3232,467

Result from nonrecurr. transactions n.a.+5352(1)

18+67.1%+102254


Intangible Assets

Shareholdings and Other Non Current Financial Assets

Other Non Current Assets/Liabilities

Deferred Tax Assets and Liabilities

Provisions for Risks, Charges and Liabilities for landfills

Employee Benefits

NET FIXED CAPITAL

Inventories

Trade receivables and other current Assets

FY 2015 H1 2016 %€M

Tangible Assets 5,0135,067 -1.1%

Current tax Assets/Liabilities

WORKING CAPITAL

TOTAL CAPITAL EMPLOYED

Equity

Net Financial Position

TOTAL SOURCES

1,3471,348 -0.1%

8080 -

(64)(66) -3.0%

285308 -7.5%

(590)(576)

(348)(332) +4.8%

5,7235,829 -1.8%

142184 -22.8%

1,7491,652 +5.9%

(48)28 -271.4%

232180 +28.9%

5,9586,156 -3.2%

3,1263,259 -4.1%

2,8322,897 -2.2%

5,9586,156 -3.2%

Trade payables and other current Liabilities (1,611)(1,684) -4.3%

19

+2.4%

Non current Assets /Liabilities held for sale 3147 n.a.

H1 2016 ResultsConsolidated Results: Balance Sheet


2015

48

18

58

45

11

65

245

-5

2015*

48

18

56

45

62

240 0

Energy

Retail

1 0

Networks& DistrictHeating

-3 -2 -1

2016*

47

16

56

42

12

62

2356 1

2016

48

16

57

42

12

66

241

Changein

perimeter

11

Gen. &Trading Waste International

Otherservices

& Corporate

Costscovered

byrevenues

Changein

perimeter

Generation& Trading

EnergyRetail

Networks& DistrictHeating

Waste

Internat.

Other

20

-4

(*) 2015 and 2016 excluding change in perimeter and costs covered by revenues

-5

H1 2016 vs H1 2015 ResultsExternal Costs


H1 2016 vs H1 2015 ResultsLabour costs

H1 2015

326

Changein perim.

-4.3

322

Other

costs

7.1

FTE

effect

-2.9

Cost

effect

2.2

H1 2016

excludingchange in perim.

328

Changein perim.

4.9

H1 2016

333

H1 2015


H1 2015

12,194

Change in

perimeter

-219

H1 2015


11,975

Net

reduction

-194

H1 2016


11,781 263

H1 2016

12,044

Change inperimeter

21

FTE(1)

LABOURCOSTS (€M)

-150

(1) A2A Group’s Full Time Equivalent

+7

+6


2016

503

35

538

2017

74

74

2018

70

70

2019

750

75

825

2020

79

79

2021

500

69

569

2022

500

69

569

2023

300

63

363

2024

42

42

2025

300

38

338

Beyond2025

98

91

189

€M

H1 2016 ResultsGross debt maturities as of 30/06/2016

Bonds

Loans

22


Operational annexes


H1 2016 vs H1 2015 ResultsVolumes

Volumes

(1)

(1) H1 2015 Hydro production includes 150GWh related to Asta Cellina

H1 2015A H1 2016AΔ vs

2015

Δ% vs

2015

A2A Group Thermal production GWh 4.323 4.134 -190 -4%of which

CCGT production GWh 1.557 1.849 292 19%

Coal production GWh 1.164 1.048 -117 -10%

Oil production GWh 992 825 -167 -17%

EPCG production GWh 610 412 -198 -32%

A2A Group Hydro production GWh 3.162 3.343 182 6%

of which

A2A and Edipower production GWh 2.278 2.261 -17 -1%

EPCG production GWh 884 1.082 199 22%

Wholesale electricity sales and Foreign Markets GWh 4.373 3.122 -1.251 -29%

Ipex sales GWh 3.609 4.804 1.195 33%

Electricity sales GWh 3.736 3.989 253 7%

Electricity sales to EPCG customers GWh 1.405 1.156 -250 -18%

Gas sales Mmc 628 664 36 6%

Electricity distributed GWh 5.522 5.466 -56 -1%

Gas distributed Mmc 1.068 1.039 -28 -3%

Water distributed Mmc 29 31 1 4%

Heat volumes sales GWht 1.334 1.332 -2 0%

Cogeneration electricity sales GWh 146 109 -37 -25%

Collected waste Kton 648 662 13 2%

Waste disposal Kton 1.328 1.224 -104 -8%

WTE electricity production GWh 665 665 0 0%

WTE heat production GWht 650 692 42 6%


2525

H1 2016 vs H1 2015 ResultsEnergy Scenario

(1) Gas at virtual trading point

(2) Pfor 162/14 Oct 2014-Mar 2016.

(3) hourly average for each month

(4) based on gas at virtual trading point with 51% efficiency; includes transport costs

(5) 35% efficiency - includes cost spread on API2 and transport cost

(6) data subject to update by Terna

Average data H1 2015 H1 2016D vs

2015

D % vs

2015

Brent $/bbl 59,4 41,0 -18,4 -30,9%

CO2 - EU ETS cost €/Tonn 7,2 5,7 -1,5 -20,9%

Green Certificates €/MWh 97,6 99,6 2,0 2,0%

€/$ €/$ 1,1 1,1 0,0 0,0%

Brent € €/bbl 53,3 36,7 -16,6 -31,1%

PSV(1)

€/MWh 23,3 14,6 -8,7 -37,4%

AEEGSI Gas Tariff(2 )

c€/mc 24,1 16,0 -8,1 -33,6%

Coal € (API2) €/Tonn 53,6 42,0 -11,6 -21,6%

PUN baseload(3)

€/MWh 49,9 37,0 -12,9 -25,8%

PUN peak(3)

€/MWh 54,7 40,9 -13,8 -25,3%

PUN off-peak(3)

€/MWh 47,2 34,9 -12,3 -26,1%

CCGT gas cost(4)

€/MWh 51,8 35,3 -16,5 -31,9%

Clean Spark Spread vs Baseload €/MWh -4,7 -0,4 4,3 n.a.

Clean Spark Spread vs Peakload €/MWh 0,1 3,4 3,3 n.a.

Clean Dark Spread vs Baseload(5 )

€/MWh 12,9 6,2 -6,6 -51,6%

Italian electricity demand(6)

TWh 154,2 151,0 -3,1 -2,0%

Gas demand Bmc 35,2 35,7 0,5 1,3%


2626

This document has been prepared by A2A solely for investors and analysts. This document does not constitute an offer or invitation to purchase or subscribe anyshares or other securities and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.Some information contained herein and other material discussed at the meetings may include forward-looking information based on A2A’s current beliefs andexpectations. These statements are based on current plans, estimates, projections, and projects and therefore you should not place undue reliance on them.Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differmaterially from those contained in any forward-looking statement. Such factors include, but are not limited to changes in global economic business, changes inthe price of certain commodities including electricity, gas and coal, the competitive market and regulatory factors. Moreover, forward-looking statements arecurrent only at the date on which they are made.

Documents

Milan, July 29th, 2016 - Amazon S3...Milan, July 29th, 2016 This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent