Half-yearly financial Report at June 30, 2013 - A2A

Half-yearly financialreportat June 30, 2013nergynetworksenvironmentheatand services

Half-yearly financial report at June 30, 2013Contents3 Corporate boardsKey figures of the A2A Group6 Areas of activity7 Geographical areas of activity8 Group structure9 Financial highlights at June 30, 201311 Shareholdings12 A2A S.p.A. on the Stock ExchangeConsolidated results and report on operations16 Summary of results, assets and liabilities and financial position23 Significant events during the period28 Significant events for the Group after June 30, 201331 Outlook for operationsConsolidated financial statements34 Consolidated balance sheet36 Consolidated income statement38 Consolidated statement of comprehensive income39 Consolidated cash-flow statement40 Statement of changes in Group equity42 Balance sheet pursuant to Consob Resolution no. 17221 of March 12, 201044 Income statement pursuant to Consob Resolution no. 17221 of March 12, 20101Notes to the Half-yearly financial report46 General information on A2A S.p.A.47 The Half-yearly financial report48 Financial statements49 Basis of preparation50 Changes in international accounting standards58 Scope of consolidation59 Consolidation policies and procedures66 Seasonal nature of the business68 Results sector by sector70 Notes to the balance sheet89 Net debt90 Notes to the income statement97 Earnings per share98 Notes on related party transactions102 Significant non-recurring events and transactions103 Guarantees and commitments with third parties104 Other information

Half-yearly financial report at June 30, 2013ContentsAttachments to the notes to the Half-yearly financialreport158 1. Statement of changes in tangible assets160 2. Statement of changes in intangible assets162 3. List of companies included in the consolidated financial statements164 4. List of shareholdings in companies carried at equity166 5. List of companies included in the consolidated financial statements of theEcodeco Group168 6. List of financial assets available-for-saleChanges in legislation172 Changes in legislationScenario and market188 Macroeconomic scenario191 Energy market trends2Analysis of main sectors of activity198 Energy Sector203 Environment Sector206 Heat and Services Sector209 Networks Sector212 Other Services and corporateRisks and uncertainties216 Risks and uncertaintiesResponsible management for sustainability230 Human resources and industrial relations233 Social responsibility and stakeholder relations237 Environmental responsibility239 Innovation, development and researchCertification of the condensed half-yearly financialstatements pursuant to article 154-bis paragraph 5of Legislative Decree no. 58/98244 Certification of the condensed half-yearly financial statements pursuant to article 154-bis paragraph 5 of Legislative Decree no. 58/98Indipendent Auditor’s report246 Indipendent Auditor’s reportThis is a translation of the Italian original “Relazione finanziaria semestrale al 30 giugno 2013”and has been prepared solely for the convenience of international readers. In the event of anyambiguity the Italian text will prevail. The Italian original is available on the website www.a2a.eu

Half-yearly financial report at June 30, 2013Corporate boardsSUPERVISORY BOARDCHAIRMANPippo Ranci OrtigosaDEPUTY CHAIRMANFausto Di MezzaDIRECTORSMarco BagaAlessandro BerdiniMarina BrogiMichaela CastelliMario CocchiMarco ManzoliEnrico Giorgio MattinzoliMarco MiccinesiAndrea MinaStefano PareglioMassimo PeronaNorberto RosiniAngelo Teodoro Zanotti3MANAGEMENT BOARDCHAIRMANGraziano TarantiniDEPUTY CHAIRMANFrancesco SilvaDIRECTORSGiambattista BrivioStefano CaoBruno CapariniMaria Elena CappelloRenato RavanelliPaolo RossettiGENERAL MANAGERSCORPORATE AND MARKET AREARenato RavanelliTECHNICAL-OPERATIONS AREAPaolo Rossetti

4Half-yearly financial report at June 30, 2013

Half-yearly financial report at June 30, 2013Key figuresof the A2A Group5

Half-yearly financial report at June 30, 2013Areas of activityThe A2A Group operates in the production, sale and distribution of gas and electricity, districtheating, environmental services and the integrated water cycle. These activities in turn formpart of the following sectors:6EnergySectors of the A2A GroupEnvironment Heat andNetworks Other ServicesServicesand CorporateThermoelectricand hydroelectricplantsCollection andstreet sweepingCogenerationplantsElectricitynetworksOther servicesEnergyManagementTreatmentDistrict heatingnetworksGas networksCorporate servicesSale ofelectricity andgasDisposaland energyrecoverySale of heat andother servicesIntegrated watercycleThis breakdown into sectors reflects the organization of the financial reporting regularly analyzedby management and by the Management Board in order to manage and plan the Group’s business.

Half-yearly financial report at June 30, 2013Group structureA2A Spa56.09%Edipower100.00%Abruzzoenergia50.00%Ergosud100.00%A2A Trading70.00%A2A Alfa50.00%Premiumgas100.00%A2A Energia100.00%Aspem Energia33.33%Lumenergia100.00%Amsa100.00%Ecodeco100.00%Aprica100.00%A2A Calore &Servizi60.00%Proaris100.00%A2A RetiElettriche100.00%A2A Ciclo Idrico90.00%Aspem ( 2 )100.00%A2A RetiGas100.00%A2A Servizi alladistribuzione91.60%Retragas100.00%Selene100.00%A2A Logistica21.94%ACSM-AGAM843.70%EPCG50.00%Metamer100.00%PartenopeAmbiente74.50%CamunaEnergia49.15%ASVT ( 1 )7.91%Dolomiti Energia39.49%Rudnik Uglja adPljevljaAreas of activityEnergyEnvironmentHeat and ServicesNetworksOther Companies(1) Of which 0.38% held through A2A Reti Gas.(2) There are put options on an additional interest in the company’s share capital.This chart shows the main shareholdings of the A2A Group. For full details of shareholdingsreference should be made to Attachments 3, 4, 5 and 6.

Half-yearly financial report at June 30, 2013Financial highlightsat June 30, 2013 (**)RevenuesGross operating incomeNet profit2,845 million euro610 million euro133 million euroIncome statement figures 01 01 2013 01 01 2012Millions of euro 06 30 2013 06 30 2012(a)9Revenues 2,845 3,290Operating expenses (1,887) (2,517)Labour costs (348) (289)Gross operating income 610 484Depreciation, amortization, provisions and write-downs (280) (204)Net operating income 330 280Financial balance (81) (68)Other non-operating income 1 –Other non-operating expenses (4) –Income before taxes 246 212Income taxes (94) (94)Net result from non-current assets sold or held for sale – 13Minorities (19) (6)Group net profit for the period 133 125Gross operating income Revenues 21.4% 14.7%(a) The comparative figures for the period January - June 2012 have been recalculated to reflect the application of Revised IAS 19“Employee Benefits”.____________(**) The figures serve as performance indicators as required by CESRN/05/178/B.

Half-yearly financial report at June 30, 2013Financial highlights at June 30, 2013Balance sheet figures 06 30 2013 12 31 2012Millions of euroNet capital employed 7,826 8,069Total equity attributable to the Group and minorities 3,752 3,697Consolidated net financial position (4,074) (4,372)Consolidated net financial position/Equity attributable to the Group and minorities 1.09 1.18Consolidated net financial position/Average market capitalisation 2.48 2.78Financial data 01 01 2013 01 01 2012Millions of euro 06 30 2013 06 30 2012Net cash from operating activities 497 426Net cash (used in) investing activities (114) (244)Free cash flow 383 18210Average market capitalization in 20131,646 million euroKey figures of A2A S.p.A. 06 30 2013 12 31 2012Share capital (euro) 1,629,110,744 1,629,110,744Number of ordinary shares (par value 0.52 euro) 3,132,905,277 3,132,905,277Number of treasury shares (par value 0.52 euro) 26,917,609 26,917,609Key indicators 06 30 2013 06 30 2012Average 6-month Euribor 0.330% 1.163%Average price of Brent crude (US$/bbl) 107.99 113.60Average exchange rate euro/US$ (*) 1.31 1.30Average price of Brent crude (euro/bbl) 82.20 87.49Average price of coal (euro/tonne) 63.27 73.30(*) Source: Italian Foreign Exchange Office

Half-yearly financial report at June 30, 2013Shareholdings (*)Market 42.5%Municipality of Milan27.5%Carlo Tassara 2.5%Municipality of Brescia27.5%11(*) Stakes higher than 2% (updated at June 30, 2013)Source: CONSOB

Half-yearly financial report at June 30, 2013A2A S.p.A. on the Stock ExchangeA2A S.p.A. in figures (Italian Stock Exchange)12Market capitalization at June 30, 2013 (millions of euro) 1,790Average capitalization in the first half of 2013 (millions of euro) 1,646Average volumes in the first half of 2013 27,531,148Average price in the first half of 2013 (*) 0.526Maximum price in the first half of 2013 (*) 0.662Minimum price in the first half of 2013 (*) 0.390Number of shares 3,132,905,277(*) Euro per shareSource: BloombergA2A stock is also traded on the following platforms: Chi-X, Turquoise, BATS, BOAT OTC, LSEEurope OTC.A2A S.p.A. distributed a dividend of 0.026 euro per share on June 27, 2013.

Half-yearly financial report at June 30, 2013A2A S.p.A. on the Stock ExchangeRatingCurrentM/L Term RatingBBBStandard & Poor’s Short Term Rating A–2OutlookNegativeMoody’sM/L Term RatingBaa3OutlookNegativeSource: rating agenciesA2A forms part of the following indicesFTSE MIBSTOXX EuropeEURO STOXXWisdomTreeS&P Developed Ex-US13Ethical indicesECPI Ethical Index EMUAxia Substainable IndexSolactive Climate Change IndexFTSE ECPI Italia SRI BenchmarkSource: BloombergA2A S.p.A. is also included in the 2012 Carbon Disclosure Leadership Index and the EthibelExcellence Investment Register.

Half-yearly financial report at June 30, 2013A2A S.p.A. on the Stock ExchangeA2A in the 1st half of 20130.700.650.600.550.500.450.400.35, ,, ,, ,, ,, ,, ,, ,14A2A vs FTSE MIB(Price 1st January 2013 = 100)Source: Bloomberg

Consolidated resultsand report onoperations

Half-yearly financial report at June 30, 2013Summary of results, assets andliabilities and financial positionResultsThe figures in the income statement for the six months ended June 30, 2013 are not comparablewith those for the corresponding period of the previous year due to the fact that the results ofEdipower S.p.A. have been consolidated for the whole of the period in 2013 while in thecorresponding period in 2012 they were only consolidated for June.16The consolidation scope for the six months ended June 30, 2012 included the results of theCoriance Group which was sold in the third quarter of 2012. In compliance with IFRS 5, thegroup's results for that period were recognized under the item "Net result from non-currentassets sold or held for sale".Further details on the above may be found in the section "Changes in scope of consolidation".Millions of euro 01 01 2013 01 01 2012 Changes06 30 2013 06 30 2012(*)Revenues 2,845 3,290 (445)of which:- Revenues from the sale of goods and services 2,739 3,232 (493)- Other operating income 106 58 48Operating expenses (1,887) (2,517) 630Labour costs (348) (289) (59)Gross operating income 610 484 126Depreciation and amortization (241) (193) (48)Provisions and write-downs (39) (11) (28)Net operating income 330 280 50Net financial expense (88) (84) (4)Share of results of companies at equity 7 16 (9)Other non-operating income 1 – 1Other non-operating expenses (4) – (4)Income before taxes 246 212 34Income taxes (94) (94) –Income from current operations net of taxes 152 118 34Net result from non-current assets sold or held for sale – 13 (13)Minority interests (19) (6) (13)Group net profit for the period 133 125 8(*) Comparative figures for the period January-June 2012 have been restated to reflect the adoption of Revised IAS 19 “Employee Benefits”.

Half-yearly financial report at June 30, 2013Summary of results, assets and liabilities and financial positionThe Group earned revenues totaling 2,845 million euro in the period, a fall over the first half of2012 (3,290 million euros) mainly due to the significant contraction in brokerage activities on themethane gas wholesale market.The main quantitative data for the six months ended June 30, 2013 contributing to the formationof these revenues with comparative figures are as follows:06 30 2013 06 30 2012Electricity sold to wholesale and retail customers (GWh) 11,231 10,562Electricity sold on the Power Exchange (GWh) 6,240 5,388Electricity sold on foreign markets (GWh) 4,930 6,169Electricity sold (GWh) - EPCG 2,208 2,168Gas sold (Mcm) 1,294 2,621Heat sold (GWht) 1,466 1,311Electricity distributed (GWh) 5,533 5,737Electricity distributed (GWh) - EPCG 1,274 1,311Gas distributed (Mcm) 1,227 1,195Water distributed (Mcm) 32 33Water purified (Mcm) 19 19Waste disposed of (Kton) 1,284 1,25317Production details 06 30 2013 06 30 2012Thermoelectric production (GWh) 3,518 3,538Thermoelectric production (GWh) - EPCG 522 471Hydroelectric production (GWh) 2,411 1,440Hydroelectric production (GWh) - EPCG 1,760 749Heat production (GWht) 1,290 1,156Electricity produced by cogeneration (GWh) 191 185Electricity sold from waste to energy and biogas plants (GWh) 557 583“Gross operating income” of 610 million euro rose by 126 million euro over the first half of2012.

Half-yearly financial report at June 30, 2013Summary of results, assets and liabilities and financial positionThe following table sets out the changes in industrial gross operating income by sector:Millions of euro 06 30 2013 06 30 2012Energy Sector 293 167Environment Sector 155 140Heat and Services Sector 57 44Networks Sector 121 134Other Services and Corporate Sector (16) (1)Total EBITDA 610 484The Energy Sector posted gross operating income of 293 million euro, a rise of 126 million euro(+75%) over the same period of the previous year.18The main reason for this increase was the good performance of the industrial portfolio, whichdespite the additional fall in demand in the second quarter of the year benefited from thegreater availability of energy produced from hydroelectric sources and the resultingconsequences on the end market and on energy forward sales platforms. The contributionmade by the trading portfolio was also positive. The EPCG Group made a contribution of 53million euro (-4 million euro in 2012), confirming the positive trend seen in the first quarter ofthe year. The sector's result also includes a provision of approximately 6 million euro made forcosts of redundancy schemes.The Environment Sector achieved a margin of 155 million euro (140 million euro in the first halfof 2012). This result includes an income component of 27 million euro relating to the previousperiod arising from the fuel cost coverage component of the CIP 6 tariff (the “CEC”)applicable for the Group's waste to energy plants; the expected reduction in this item in 2012never materialized.The Environment Sector's margin is also due to lower revenues compared to the previous perioddue to the ending of the CIP 6 convention for the waste to energy plant at Corteolona (Pavia), theloss of a number of foreign contracts completed in 2012 and the effects of legislative provisions(the Ministerial Decree of November 20, 2012 and Decree Law no. 69 of June 21, 2013, the socalled “Decreto del fare”) regarding the valuation of the CEC component for 2013.The gross operating income of the Heat and Services Sector totaled 57 million euro, a rise of 13million euro over the first half of 2012. Contributing to this positive performance were thedistrict heating segment, which in addition to its commercial development also benefited froma per capita increase in consumption due to the particularly cold weather and the business ofmanaging heating plants owned by end customers.

Half-yearly financial report at June 30, 2013Summary of results, assets and liabilities and financial positionThe gross operating income of the Networks Sector of 121 million euro shows a decrease of 13million euro over the first half of 2012. This fall was essentially due to the provisions made forthe redundancy schemes in connection with the business restructuring plan. Excluding thateffect, the sector's gross operating income was essentially in line with that of the same periodof the previous year.The Other Services and Corporate Sector closed the half year with a gross operating loss of 16million euro (a loss of 1 million euro in the first half of 2012). The result of the first half year wasaffected by charges for provisions for non-recurring items (costs of redundancy scheme andthose connected with settling disputes) and the fact that it is being compared with a result forthe first half of 2012 which in turn benefited by non-recurring income arising from thefavorable outcome of past disputes.“Depreciation, amortization and write-downs” amounted in total to 280 million euro(204 million euro for the six months ended June 30, 2012). The increase of 76 million euro ismainly due to the additional depreciation, amortization and write-downs arising from theconsolidation of Edipower S.p.A..As a result of these changes “Net operating income” amounted to 330 million euro (280million euro in the six months ended June 30, 2012).19“Net financial expense” amounted to 88 million euro (84 million euro in the first half of 2012).Compared with the first half of 2012, debt service charges in the period in question rose by 22million euro and there was a positive change of 47 million euro arising from the measurement ofderivatives at fair value (a gain of 7 million euro in the six months ended June 30, 2013, while therewas a loss of 40 million euro in the first half of 2012). The result of the first half of 2012 includedthe positive effect of recognizing badwill of 18 million euro arising on the first-time consolidationof Edipower S.p.A..The “Share of results of companies at equity” provided income of 7 million euro, while thecorresponding figure for the six months ended June 30, 2012 was income of 12 million euro,mainly relating to the results of the investee Edipower S.p.A. in the period before control wasacquired.“Other non-operating income/expense”, a net expense of 3 million euro (nil in the sixmonths ended June 30, 2012) regards costs incurred by the subsidiary EPCG.“Income taxes” for the period totaled 94 million euro, in line with the corresponding periodin 2012.

Half-yearly financial report at June 30, 2013Summary of results, assets and liabilities and financial positionThe “Net result from non-current assets sold or held for sale” was nil for the six monthsended June 30, 2013, while there was a profit of 13 million euro in the corresponding period ofthe previous year, arising from the sale of the shareholding in e-Utile S.p.A. and the results ofthe period of the Coriance Group.After deducting the result attributable to minority interests, “Group net profit for theperiod” amounted to 133 million euro (125 million euro in the six months ended June 30, 2012).The balance sheet and financial positionConsolidated “Capital employed” amounted to 7,826 million euro at June 30, 2013 and wasfunded by equity of 3,752 million euro and net debt of 4,074 million euro.“Working capital” amounted to 696 million euro, a decrease of 127 million euro overDecember 31, 2012.20“Net fixed capital”, which includes “Assets/liabilities held for sale”, amounted to 7,130 millioneuro, a decrease of 116 million euro over December 31, 2012.The “Net financial position” of 4,074 million euro fell by 298 million euro due to thegeneration of cash from operating activities which was partially offset by cash used ininvesting activities and dividends of 81 million euro distributed by the parent company.

Half-yearly financial report at June 30, 2013Summary of results, assets and liabilities and financial positionMillions of euro 06 30 2013 12 31 2012 ChangesCAPITAL EMPLOYEDNet fixed capital 6,836 6,969 (133)- Tangible assets 6,231 6,370 (139)- Intangible assets 1,384 1,393 (9)- Shareholdings and other non-current financial assets (*) 226 219 7- Other non-current assets/liabilities (*) (348) (346) (2)- Deferred tax assets/liabilities 261 269 (8)- Provisions for risks, charges and liabilities for landfills (597) (611) 14- Employee benefits (321) (325) 4of which with counter-entry to equity (333) (340)Working capital 696 823 (127)- Inventories 263 340 (77)- Trade receivables and other current assets (*) 2,294 2,217 77- Trade payables and other current liabilities (*) (1,890) (1,816) (74)- Current tax assets/tax liabilities 29 82 (53)of which with counter-entry to equity (28) (9) –Assets/liabilities held for sale (*) 294 277 17of which with counter-entry to equity – – –TOTAL CAPITAL EMPLOYED 7,826 8,069 (243)21SOURCES OF FUNDSEquity 3,752 3,697 55Total financial position beyond one year 3,441 4,305 (864)Total financial position within one year 633 67 566Total net financial position 4,074 4,372 (298)of which with counter-entry to equity 21 23 –TOTAL SOURCES 7,826 8,069 (243)(*) Excluding balances included in the net financial position.

Half-yearly financial report at June 30, 2013Summary of results, assets and liabilities and financial positionMillions of euro 01 01 2013 01 01 201206 30 2013 06 30 201222NET FINANCIAL POSITION AT THE BEGINNING OF THE PERIOD (4,372) (4,021)Net financial position of Edipower – (959)Net income for the period (including minorities) (**) 152 123Depreciation and amortization 241 193Write-downs/disposals of tangible and intangible assets 5 9Results from shareholdings at equity (7) (16)Net taxes paid (29) (90)Changes in assets and liabilities (*) 135 207Net cash from operating activities 497 426Net cash from investing activities (114) (244)Free cash flow 383 182Dividends paid by the parent (81) (40)Dividends paid by subsidiaries (6) (8)Cash flow from the distribution of dividends (87) (48)Changes in financial assets/liabilities with counter-entry to equity 2 (14)NET FINANCIAL POSITION AT THE END OF THE PERIOD (4,074) (4,860)(*) Excluding balances with counter-entry to equity.(**) The result for the period is stated excluding gains on shareholdings.

Half-yearly financial report at June 30, 2013Significant events during theperiodMeeting between A2A representatives and the National Trade UnionSecretariatsThe business and financial development lines included in the 2013-15 Business Plan approvedby the Management Board and Supervisory Board of A2A S.p.A. on November 8, 2012 wereillustrated during the meeting that took place in February 2013 between A2A S.p.A.representatives and the National Trade Union Secretariats. In addition, a series of measuresdesigned to contain labour costs, including the use of the social security cushions, weredescribed.23On April 19, 2013, A2A S.p.A. (also on behalf of Group companies) and the National Trade UnionSecretariats signed a framework agreement on the use of the Cassa Integrazione GuadagniOrdinaria (CIGO) and of the Redundancy schemes.In summary, this agreement contains the following:Cassa Integrazione Guadagni Ordinaria (CIGO)The Group plans to use the CIGO scheme between April 2013 and April 2015 for the plants atCassano, Sermide, Chivasso and Turbigo.The scheme is expected to be utilized for a period of approximately forty weeks over the twoyears.Only the staff strictly needed for looking after the plants and for security will be kept in serviceduring the periods when the CIGO scheme is in force.In addition, A2A S.p.A. will use a rotational arrangement, where this is possible and to the extentcompatible with workers’ availability, to reduce the effect of the social security cushions to aminimum.Employees will be paid the portion of their wages and salaries for which the cost is borne bythe national social security agency INPS, and A2A will take this up to 85% of their fixed,continuous remuneration.

Half-yearly financial report at June 30, 2013Significant events during the periodIntegration of A2A S.p.A. with Edipower S.p.A.Approximately 260 excess employees will leave the Group by means of various procedures ofthe redundancy schemes.These procedures will relate solely to workers who by the end of the redundancy schemesmeet the requirements for receiving a pension and workers who, although not identified asbeing in excess, formally express their wish to be made redundant under the redundancyschemes, to the extent that technical, organization and production requirements are met.24In addition to an indemnity in lieu of notice, workers will also receive the following amounts asleaving incentives:• two months’ wages plus a supplement equal to 88% of their fixed and continuousremuneration for the whole period they are included in the redundancy scheme;• those employees who elect to join the redundancy schemes on a voluntary basis bySeptember 15, 2013 will receive another five months’ wages;• workers under 62 years of age who elect for early retirement will be entitled to an additionalindemnity of two months’ wages for each year of early retirement below 62 years of age;• workers already meeting the conditions to receive a pension on the other hand will onlyreceive a leaving incentive equivalent to four months’ wages.Mestre locationIn connection with the Mestre location, an agreement was signed with the trades unions onJuly 5, 2013 aiming to preserve the employment aspects of the area, suspending the decisionto close the site. Under this agreement working hours will be reduced by an average of 45%through the use of solidarity contracts, with the resulting recourse to the use of the voluntaryredundancy scheme for a limited number of workers who by following this approach willreach their pension requirements.Harmonization of contractual arrangements and rationalization of the nationalcollective bargaining agreements (CCNL) usedSpecific negotiations will begin at a Group level in June 2013 with the aim of harmonizing theeconomic and legislative aspects currently in place in the individual companies, includingEdipower S.p.A..In addition, the principle of “one single CCNL” for each individual company was generallyacknowledged.In this case too specific talks will be initiated so that each company can identify the mostsuitable CCNL.

Half-yearly financial report at June 30, 2013Significant events during the periodA2A S.p.A.: new 5-year revolving credit line agreement signed with asyndicate of domestic and international banksOn April 22, 2013 A2A S.p.A. signed an agreement for a new 5-year revolving credit line of 600million euro which will replace the revolving credit lines expiring over the next 24 months andunused at the date of signing the new agreement.Following the transaction, the overall available credit lines amount to 1,640 million euro. Thesehave an average duration of 3.6 years and assure the A2A Group significant financial flexibility.The Supervisory Board of A2A S.p.A. approves the 2012 financialstatementsOn April 29, 2013, the Supervisory Board approved the separate financial statements and theA2A Group’s consolidated annual report for the year ended December 31, 2012 prepared bythe Management Board.The Supervisory Board also approved the Management Board’s proposal to submit to theshareholders’ meeting the distribution of a dividend of 0.026 euro per ordinary share to bepaid as from June 27, 2013 (ex-dividend date June 24, 2013).25Subsequent to this, on June 13, 2013, the Shareholders’ Meeting of A2A S.p.A. approved theproposal for the distribution of a dividend of 0.026 euro per ordinary share to be paid as fromJune 27, 2013 (ex-dividend date June 24, 2013 - coupon no. 16) and having record date June 26,2013.Standard & Poor’s confirms the long-term credit rating of A2A S.p.A. asBBB with a negative outlook. Unchanged short-term credit rating of A-2.Standard & Poor’s has confirmed the long-term credit rating of A2A S.p.A. as BBB with anegative outlook, and its short-term rating as A-2.The confirmation of the rating rewards A2A’s debt reduction plan and the effectiveness of itsfinancial strategy which is aimed at obtaining funds in advance for repaying its debts falling due.The rating additionally reflect a strong and stable business profile, characterized by a highlevel of diversification and integration and supported by a significant presence in regulatedbusinesses.

Half-yearly financial report at June 30, 2013Significant events during the periodA2A Energia S.p.A.: the Joint Committee set up with the Consumers’Associations begins workAs envisaged in the Self-Regulation Protocol signed on March 1, 2013 by A2A Energia S.p.A. - gasand electricity sales company of the A2A Group - and the Consumers’ Associations, the workof the Joint Committee officially got under way on May 22, 2013.The task of the Committee, consisting of three members designated by the Consumers’Associations and three by A2A Energia S.p.A. (plus one substitute member), is to supervisecompliance with the rules set out in the Self-Regulation Protocol and to ensure that thecompany is following proper marketing procedures.The Associations which contributed to drawing up the agreement and signed it were as follows:26ACU, Adiconsum, Adoc, Adusbef, Altroconsumo, Assoutenti, Casa del Consumatore,Cittadinanzattiva, Codacons, Codici, Confconsumatori, Coniacut, Federconsumatori, LegaConsumatori, Movimento Consumatori, Movimento Difesa del Cittadino and UnioneNazionale Consumatori.At the Committee’s first meeting members agreed on the modus operandi of the meetingsand their frequency. The following priorities have been identified and are already included onthe agenda of the initial meetings:• the formation and checking of the quality of the work and of compliance by tradingpartners with the contents of the Self-Regulation Protocol;• an analysis of the different circumstances which might give rise to disputes.The direction which has been taken for quite some time by A2A Energia S.p.A. to prevent unfairtrading practices and protect customers therefore continues. In addition to the JointCommittee, the Self-Regulation Protocol also provides for the extension of the cooling off periodto which the end customer is entitled, requires A2A Energia S.p.A. to send a confirmation letterto notify customers that a new supply contract has been activated and envisages specific trainingand possible penalties for the trading partners of A2A Energia S.p.A..If conduct is identified which fails to comply with the requirements of the Protocol, in additionto compensation being paid directly to the end customer the Protocol also requires a fund tobe set up to be used to provide information on unfair trading practices and to prevent thesefrom occurring.

Half-yearly financial report at June 30, 2013Significant events during the periodThe project for the non-proportional demerger of Edipower S.p.A. isapprovedOn February 6, 2013 the Iren Group announced its intention to exercise its put option on itsshareholding in Edipower S.p.A., receiving a series of generation assets in compensation.On June 28, 2013, in execution of the agreements reached between A2A S.p.A. and Iren S.p.A.on the purchase of Edipower S.p.A. completed in May 2012, and as a consequence of theexercising of the rights envisaged therein by Iren S.p.A., which occurred in February 2013, theextraordinary shareholders’ meetings of Edipower S.p.A. and Iren Energia S.p.A. approved theproject for the non-proportional demerger of Edipower S.p.A..Under this operation a group of net assets is assigned to Iren Energia S.p.A. consisting of theTurbigo thermoelectric plant and the Tusciano hydroelectric complex, the staff working inthose plants, the assets and liabilities attributable to the plants and the debt of 44.8 millioneuro. After the demerger the Iren Group will no longer be a shareholder of Edipower S.p.A..After the time limits laid down by law are met and once the formalities required for signing thedemerger deed are completed, the operation will become effective in the fourth quarter of2013; an adjustment mechanism will come into operation based on the balance sheet at theeffect date of the demerger.27Following the completion of the demerger the share capital of Edipower S.p.A. will be made upas follows: A2A S.p.A. 71%, Dolomiti Energia S.p.A. 8.5%, SEL S.p.A. 8.5%, Mediobanca 5.1%,Fondazione CRT 4.3%, BPM 2.6%.As the result of this operation A2A S.p.A. will be able to fully dispatch the installed capacity ofthe plants of Edipower S.p.A., thereby optimizing the way in which the Group’s portfoliogeneration is managed. At the same time it will be possible for the initiatives aiming to increaseoperational efficiency to become practical by means of a more comprehensive integrationbetween A2A S.p.A. and Edipower S.p.A..

Half-yearly financial report at June 30, 2013Significant events for the Groupafter June 30, 2013Establishment of A2A Ambiente S.r.l.A2A Ambiente S.r.l. was established on July 1, 2013 as announced in the Business Planpresented in November 2012; the new entity is the biggest Italian company in the environmentsector by turnover and has a prominent positioning compared to the large European groupsworking in the same industry.28A2A Ambiente S.r.l. was established in two stages:• the first, regarding plant reorganization, was completed on July 1, 2013, and saw thetransfer of the waste treatment and disposal plants from Amsa S.p.A. and Aprica S.p.A.to Ecodeco S.r.l. by means of a spin-off. Ecodeco S.r.l. subsequently changed its nameto A2A Ambiente S.r.l.;post spin-off Amsa S.p.A. and Aprica S.p.A. will continue to operate in their local areas andwith their trade names, carrying out their core business of urban hygiene and maintainingunchanged their relationship with their municipality customers (around 160, includingthose also served by the associate G.Eco S.r.l.) and the high level of services provided toresidents, who will therefore continue to interface with these companies in the same wayas present.Amsa S.p.A. and Aprica S.p.A. will accordingly deliver waste to A2A Ambiente S.r.l. whichwill be responsible for its treatment and energy enhancement, thereby obtaining morethan 1,400 GWh of electricity and over 1,000 GWh of thermal energy to be utilized indistrict heating for urban use;• the second phase will involve the simplification of the A2A Group’s corporate structure,and this is expected to be completed by the end of 2013. The shareholdings in Amsa S.p.A.,Aprica S.p.A. and Partenope Ambiente S.p.A. (which manages the Acerra waste to energyplant and the waste shredding, sifting and packaging plant at Caivano), wholly owned bythe parent A2A S.p.A., will be contributed to A2A Ambiente S.r.l..The aim of setting up the new company is to combine in one single entity an array of plants thatis unique in the Italian market and to lay the foundations for a significant rationalization and

Half-yearly financial report at June 30, 2013Significant events for the Group after June 30, 2013optimization of the A2A Group’s environmental hub, which currently consists of fourcompanies (Amsa S.p.A., Aprica S.p.A., Ecodeco S.r.l. and Partenope Ambiente S.p.A.), thusachieving economies of scale by capitalizing on the integration of across the board activitiesand improving the planning of waste flows.On completion of the operation A2A Ambiente S.r.l., wholly owned by the parent A2A S.p.A.,will have a total EBITDA of over 250 million euro and will be able to count on the collaborationof around 600 employees (over 4,000 including those working in the subsidiaries).A2A Ambiente S.r.l. will be able to grow further in a market that is undergoing considerableevolution; in fact with approximately 50% of its waste disposed of in landfills, there is a verylarge gap in terms of plants between Italy and the main European countries. Abroad, thecompany will be able to continue taking advantage of its know-how both in the markets whereit already has a presence (United Kingdom, Spain, Greece) and in new geographical areas.Issue carried out on the European bond market for a total of 500 millioneuro and an offer is made for the repurchase of the bonds redeemablein 2014 and 201629On July 3, 2013, A2A S.p.A. issued bonds of 500 million euro on the European market having aterm of seven and a half years as part of the Euro Medium Term Notes Program of 2 billion euroapproved by the Management Board on September 19, 2012. The issue was addressed exclusivelyto institutional investors.The newly-issued bonds will be governed by English law and from July 10, 2013 will be tradedon the Luxembourg stock exchange.Consistent with the Group’s financial strategy, which is aimed at extending the average debt termand optimizing the timing of the due dates, A2A S.p.A. made an offer for the partial repurchase ofbonds redeemable in 2014 and 2016, being of amounts of 500 and 1,000 million euro respectively.On July 9, 2013 A2A S.p.A. announced the final results and the pricing of the partial repurchaseoffer addressed to the holders of bonds falling due in 2014 and 2016.As stated in the Tender Offer Memorandum, the repurchase price for the bonds falling due in2014 and 2016 was 103.8% and 107% respectively.A2A S.p.A. sells five small hydroelectric and flowing water plantsOn July 5, 2013 A2A S.p.A. completed the sale to the Swiss group BKW of the wholly ownedcompany Chi.Na.Co S.r.l., to which A2A S.p.A. had contributed five small hydroelectric andflowing water plants having installed power of approximately 8 MW.

Half-yearly financial report at June 30, 2013Significant events for the Group after June 30, 2013This transaction is based on consideration of 38 million euro, to which a further 1.6 millioneuro could be added on the occurrence of certain conditions by the end of next year. In 2012the plants produced 37 GWh of electricity, with revenues of around 4 million euro and anEBITDA of 3.1 million euro.A2A S.p.A., which was supported in the sales tender process by Banca IMI, considered thatthe best offer was made by BKW not only from an economic point of view but also in termsof continuity of industrial management of the sold plants, taking into account the localcontext in which it is being carried out. BKW is a leading operator in the sector, with over3,000 employees and has had a direct presence in Italy for more than 13 years.By means of this sale A2A S.p.A. is continuing with the steps it is taking to rationalize itsindustrial portfolio and reduce its debt, consistent with the 2013-2015 Business Plan.30The first half of 2013 for the Acerra waste to energy plant: 100% ofproduction capacity confirmed. Atmospheric emissions well below thelegal limitsThe Acerra waste to energy plant treated 314,000 tonnes of waste in the first half of 2013,confirming the high efficiency standards that have been reached.At the same time, thanks to the energy enhancement of the waste, 278 GWh of electricity wasput into the grid (equal to the energy needs, in the half year, of 200,000 households) and theconsumption of 52,000 toe (tonnes of oil equivalent) was avoided.The waste to energy plant confirmed its excellent results also in terms of atmosphericemissions, which thanks to the modern technologies deployed in purifying combustiongases led to values well below the legal limits and the stricter limits set by the IntegratedEnvironmental Authorization.Scheduled maintenance was carried out during the half year on the combustion lines and theenergy production section making up the plant. More specifically, these activities regardedchecking the combustion systems, the system for recovering energy from the waste and thefume purification systems. All the maintenance, typical in these kinds of plants, was carriedout to ensure the reliability and efficiency of the whole system and the plant’s reducedemission levels over time.

Half-yearly financial report at June 30, 2013Outlook for operationsThe Group’s positive economic performance in the first half year leads management tobelieve that the A2A Group will be able to achieve an industrial result (EBITDA) in 2013 thatexceeds that of the previous year (1,068 million euro).Consistent with the results obtained in the last 5 quarters, management will continue to becommitted in the second half of the year to seeking a further reduction in debt levels.31

Consolidatedfinancial statements

Half-yearly financial report at June 30, 2013Consolidated balance sheet ( 1 )AssetsMillions of euro Note 06 30 2013 12 31 2012 06 30 2012(*)34NON-CURRENT ASSETSTangible assets 1 6,231 6,370 6,716Intangible assets 2 1,384 1,393 1,392Shareholdings carried according to equity method 3 217 210 229Other non-current financial assets 3 54 53 50Deferred tax assets 4 261 269 289Other non-current assets 5 79 89 163TOTAL NON-CURRENT ASSETS 8,226 8,384 8,839CURRENT ASSETSInventories 6 263 340 354Trade receivables 7 1,849 1,907 1,912Other current assets 8 473 318 352Current financial assets 9 81 27 97Current tax assets 10 49 90 8Cash and cash equivalents 11 710 553 269TOTAL CURRENT ASSETS 3,425 3,235 2,992NON-CURRENT ASSETS HELD FOR SALE 12 346 326 195TOTAL ASSETS 11,997 11,945 12,026(1) As required by Consob Resolution no. 17221 of March 12, 2010 the effects of related party transactions on the consolidated financial statements areprovided in the financial statements in section 0.2 and commented upon in Note 39.As required by Consob Communication no. DEM/6064293 of July 28, 2006 the effects of significant non-recurring events and transactions on theconsolidated financial statements are provided in Note 39.(*) Comparative figures for the six months ended June 30, 2012 have been recalculated to reflect the application of Revised IAS 19 “Employee Benefits”.

Half-yearly financial report at June 30, 2013Consolidated balance sheetEquity and liabilitiesMillions of euro Note 06 30 2013 12 31 2012 06 30 2012(*)EQUITYShare capital 13 1,629 1,629 1,629(Treasury shares) 14 (61) (61) (61)Reserves 15 1,189 1,018 1,076Net profit for the year – 260 –Net profit for the period 16 133 – 125Equity pertaining to the Group 2,890 2,846 2,769Minority interests 17 862 851 849Total equity 3,752 3,697 3,618LIABILITIESNON-CURRENT LIABILITIESNon-current financial liabilities 18 3,506 4,371 4,762Employee benefits 19 321 325 318Provisions for risks, charges and liabilities for landfills 20 597 611 581Other non-current liabilities 21 407 413 378Total non-current liabilities 4,831 5,720 6,039CURRENT LIABILITIESTrade payables 22 1,158 1,332 1,126Other current liabilities 22 732 486 514Current financial liabilities 23 1,452 653 514Tax liabilities 24 20 8 57Total current liabilities 3,362 2,479 2,211Total liabilities 8,193 8,199 8,250LIABILITIES DIRECTLY ASSOCIATED WITHNON-CURRENT ASSETS HELD FOR SALE 25 52 49 158TOTAL EQUITY AND LIABILITIES 11,997 11,945 12,02635(*) Comparative figures for the six months ended June 30, 2012 have been recalculated to reflect the application of Revised IAS 19 “Employee Benefits”.

Half-yearly financial report at June 30, 2013Consolidated incomestatement ( 1 )Millions of euro Note 01 01 2013 01 01 2012 01 01 201206 30 2013 06 30 2012 12 31 2012(*)36RevenuesRevenues from the sale of goods and services 2,739 3,232 6,281Other operating income 106 58 199Total revenues 27 2,845 3,290 6,480Operating expensesExpenses for raw materials and services 1,775 2,384 4,559Other operating expenses 112 133 251Total operating expenses 28 1,887 2,517 4,810Labour costs 29 348 289 602Gross operating income 30 610 484 1,068Depreciation, amortization, provisions andwrite-downs 31 280 204 567Net operating income 32 330 280 501Financial balanceFinancial income 30 42 58Financial expense 118 126 251Affiliates 7 16 13Total financial balance 33 (81) (68) (180)Other non-operating income 34 1 – 3Other non-operating expenses 34 (4) – (6)Income before taxes 246 212 318(1) As required by Consob Resolution no. 17221 of March 12, 2010 the effects of related party transactions on the consolidated financial statements areprovided in the financial statements in section 0.2 and commented upon in Note 39.As required by Consob Communication no. DEM/6064293 of July 28, 2006 the effects of significant non-recurring events and transactions on theconsolidated financial statements are provided in Note 39.(*) Comparative figures for the period January-June 2012 have been recalculated to reflect the application of Revised IAS 19 “Employee Benefits”.

Half-yearly financial report at June 30, 2013Consolidated income statementMillions of euro Note 01 01 2013 01 01 2012 01 01 201206 30 2013 06 30 2012 12 31 2012(*)Income taxes 35 94 94 128Income after taxes from operating activities 152 118 190Net result from non-current assetssold or held for sale 36 – 13 81Net profit 152 131 271Minorities (19) (6) (11)Group net profit for the period/year 37 133 125 260Earnings (loss) per share (in euro):– basic 0.0428 0.0401 0.0838– basic, from operating activities 0.0428 0.0361 0.0579– basic, from activities held for sale 0.0000 0.0041 0.0259– diluted 0.0428 0.0401 0.0838– diluted, from operating activities 0.0428 0.0361 0.0579– diluted, from activities held for sale 0.0000 0.0041 0.025937(*) Comparative figures for the period January-June 2012 have been restated to reflect the adoption of Revised IAS 19 “Employee Benefits”.

Half-yearly financial report at June 30, 2013Consolidated statement ofcomprehensive incomeMillions of euro 06 30 2013 06 30 2012 12 31 2012(*)38Net income/(loss) for the period/year (A) 152 131 271Actuarial gains/(losses) on employee benefits bookedas net equity 4 (12) (33)Tax effect of other actuarial gains/(losses) (1) 3 8Total actuarial gains/(losses) net of tax effect (B) 3 (9) (25)Effective part of gains/(losses) on cash flow hedges (16) (12) (54)Tax effect of other gains/(losses) 6 5 18Total other gains/(losses) net of the tax effect ofcompanies consolidated on a line-by-line basis (C) (10) (7) (36)Other gains/(losses) of companies valued at equitynet of the tax effect (D) – 1 2Total comprehensive income/(loss) (A) + (B) + (C) + (D) 145 116 212Total comprehensive income/(loss) attributable to:Shareholders of the parent company 125 108 201Minority interests 20 8 11(*) Comparative figures for the period January-June 2012 have been restated to reflect the adoption of Revised IAS 19 “Employee Benefits”.

Half-yearly financial report at June 30, 2013Consolidated cash flowstatementMillions of euro 06 30 2013 12 31 2012 06 30 2012CASH AND CASH EQUIVALENTS AT THE BEGINNINGOF THE PERIOD/YEAR 553 147 147Edipower S.p.A. liquidity – 89 89CASH AND CASH EQUIVALENTS AT THE BEGINNINGOF THE PERIOD/YEAR 553 236 236Operating activitiesNet income for the period/year (**) 152 192 123Tangible assets depreciation 210 417 160Intangible assets amortization 31 72 33Fixed assets write-downs 5 10 9Result from shareholdings in companies carried at equity (7) (13) (16)Net taxes paid (a) (29) (251) (90)Changes in assets and liabilities before tax (b) 135 534 207Total changes in assets and liabilities (a+b) (*) 106 283 117Cash flow (net) from operating activities 497 961 426Investment activitiesInvestments in tangible assets (89) (275) (95)Investments in intangible assets and goodwill (29) (85) (41)Investments in shareholdings and securities (*) (3) (130) (125)Disposal of fixed assets and shareholdings 4 234 11Dividends received from shareholdings carried at equityand other shareholdings 3 6 6Cash flow (net) from investment activities (114) (250) (244)FREE CASH FLOW 383 711 182Financing activitiesChange in financial assets (*) (75) 151 179Change in financial liabilities (*) 10 (324) (222)Net financial expenses paid (74) (173) (58)Dividends paid by parent company (81) (40) (40)Dividends paid by subsidiaries (6) (8) (8)Cash flow from financing activities (226) (394) (149)CHANGE IN CASH AND CASH EQUIVALENTS 157 317 33CASH AND CASH EQUIVALENTS AT THE END OF THEPERIOD/YEAR 710 553 269(*) Cleared of balances in return of shareholders’ equity and other consolidated balance sheet items.(**) Net profit for the period/year is exposed net of gains on shareholdings’ and fixed assets’ disposals.39

Half-yearly financial report at June 30, 2013Statement of changes inGroup equityDescription Share Treasury Cash FlowMillions of euro capital shares HedgeNote 13 Note 14 Note 15Net equity at December 31, 2011 (**) 1,629 (61) 2040Changes in the first half of 20122011 profit allocationDistribution of dividendsIAS 19 reserve (*)IAS 32 and IAS 39 reserves (*) (8)Put option on Delmi S.p.A. shares (***)Other changesGroup and Minorities net profit for the periodNet equity at June 30, 2012 (**) 1,629 (61) 12Changes in the second half of 2012IAS 19 reserve (*)IAS 32 and IAS 39 reserves (*) (28)Put option on Delmi S.p.A. shares (***)Put option on Aspem S.p.A. sharesOther changesGroup and Minorities net profit for the periodNet equity at December 31, 2012 1,629 (61) (16)Changes in the first half of 20132012 profit allocationDistribution of dividendsIAS 19 reserve (*)IAS 32 and IAS 39 reserves (*) (11)Put option on Edipower S.p.A. sharesOther changesGroup and Minorities net profit for the periodNet equity at June 30, 2013 1,629 (61) (27)(*) These form part of the statement of comprehensive income.(**) Net equity at December 31, 2011 and at June 30, 3012 reflects the application of IAS 19 Revised Employee Benefits with theevidence of the reserve regarding the effects of actuarial gains-losses net of the tax effect.(***) On January 1, 2013 the merger of Delmi S.p.A. into Edipower S.p.A. became effective.

Half-yearly financial report at June 30, 2013Statement of changes in Group equityOther Group net Total Minority Total netreserves and income equity interests shareholders’retained for the pertaining equityearnings period/year to the GroupNote 15 Note 16 Note 171,602 (423) 2,767 826 3,593(423) 423(40) (40) (8) (48)(9) (9) (9)(8) 2 (6)(62) (62) (131) (193)(4) (4) 154 150125 125 6 1311,064 125 2,769 849 3,61841(16) (16) (1) (17)(28) (28)(22) (22) 4 (18)(1) (1)8 8 (5) 3135 135 5 1401,034 260 2,846 851 3,697260 (260)(81) (81) (6) (87)3 3 3(11) 1 (10)(3) (3) (3)3 3 (3) –133 133 19 1521,216 133 2,890 862 3,752

Half-yearly financial report at June 30, 2013Balance sheetpursuant to Consob Resolution no. 17221 of March 12, 2010AssetsMillions of euro 06 30 2013 of which 12 31 2012 of which 06 30 2012 of whichRelated Related ( 1 ) RelatedParties Parties Parties(note n. 39) (note n. 39) (note n. 39)42NON-CURRENT ASSETSTangible assets 6,231 6,370 6,716Intangible assets 1,384 1,393 1,392Shareholdings carried according to equity method 217 217 210 210 229 229Other non-current financial assets 54 6 53 5 50 6Deferred tax assets 261 269 289Other non-current assets 79 89 163TOTAL NON-CURRENT ASSETS 8,226 8,384 8,839CURRENT ASSETSInventories 263 340 354Trade receivables 1,849 171 1,907 127 1,912 154Other current assets 473 318 352Current financial assets 81 3 27 5 97 84Current tax assets 49 90 8Cash and cash equivalents 710 553 269TOTAL CURRENT ASSETS 3,425 3,235 2,992NON-CURRENT ASSETS HELD FOR SALE 346 – 326 195 2TOTAL ASSETS 11,997 11,945 12,026(1) The comparative figures for the period January-June 2012 have been restated to reflect the adoption of Revised IAS 19 “Employee Benefits”.

Half-yearly financial report at June 30, 2013Balance sheet pursuant to Consob Resolution no. 17221 of March 12, 2010Equity and liabilitiesMillions of euro 06 30 2013 of which 12 31 2012 of which 06 30 2012 of whichRelated Related ( 1 ) RelatedParties Parties Parties(note n. 39) (note n. 39) (note n. 39)EQUITYShare capital 1,629 1,629 1,629(Treasury shares) (61) (61) (61)Reserves 1,189 1,018 1,076Net profit for the year – 260 –Net profit for the period 133 – 125Equity pertaining to the Group 2,890 2,846 2,769Minority interests 862 851 849Total equity 3,752 3,697 3,618LIABILITIESNON-CURRENT LIABILITIESNon-current financial liabilities 3,506 4,371 4,762Employee benefits 321 325 318Provisions for risks, charges and liabilities for landfills 597 1 611 4 581 2Other non-current liabilities 407 413 378Total non-current liabilities 4,831 5,720 4 6,039 2CURRENT LIABILITIESTrade payables 1,158 39 1,332 34 1,126 26Other current liabilities 732 9 486 8 514 8Current financial liabilities 1,452 653 514Tax liabilities 20 8 57Total current liabilities 3,362 2,479 2,211Total liabilities 8,193 8,199 8,250LIABILITIES DIRECTLY ASSOCIATED WITHNON-CURRENT ASSETS HELD FOR SALE 52 49 158 76TOTAL EQUITY AND LIABILITIES 11,997 11,945 12,02643(1) The comparative figures for the period January-June 2012 have been restated to reflect the adoption of Revised IAS 19 “Employee Benefits”.

Half-yearly financial report at June 30, 2013Income statementpursuant to Consob Resolution no. 17221 of March 12, 2010Millions of euro 01 01 2013 of which 01 01 2012 of which 01 01 2012 of which06 30 2013 Related 06 30 2012 Related 12 31 2012 RelatedParties (1) Parties Parties(note 39) (note 39) (note 39)44RevenuesRevenues from the sale of goods and services 2,739 259 3,232 486 6,281 761Other operating income 106 58 199Total revenues 2,845 3,290 6,480Operating expensesExpenses for raw materials and services 1,775 22 2,384 376 4,559 447Other operating expenses 112 4 133 4 251 9Total operating expenses 1,887 2,517 4,810Labour costs 348 2 289 2 602 3Gross operating income - EBITDA 610 484 1,068Depreciation, amortization, provisions and write-downs 280 204 567 2Net operating income - EBIT 330 280 501Financial balanceFinancial income 30 13 42 8 58 7Financial expense 118 126 251 1Affiliates 7 7 16 16 13 13Total financial balance (81) (68) (180)Other non-operating income 1 – 3Other non-operating expenses (4) – (6)Income before taxes 246 212 318Income taxes 94 94 128Income after taxes from operating activities 152 118 190Net result from non-current assets sold or held for sale – 13 81Net profit 152 131 271Minorities (19) (6) (11)GROUP NET PROFIT FOR THE PERIOD/YEAR 133 125 260(1) Comparative figures for the period January-June 2012 have been restated to reflect the adoption of Revised IAS 19 “Employee Benefits”.

Notes to theHalf-yearly financialreport

Half-yearly financial report at June 30, 2013General information onA2A S.p.A.A2A S.p.A. is a company incorporated under Italian law.A2A S.p.A. and its subsidiaries (the “Group”) operate both in Italy and abroad, in particular inMontenegro especially following the acquisition which took place in recent years.46The A2A Group mainly operates in the following sectors:• the production, sale and distribution of electricity;• the sale and distribution of gas;• the production, distribution and sale of heat through district heating networks;• waste management (from collection and sweeping to disposal) and the construction andmanagement of integrated waste disposal plants and systems, also making these availablefor other operators;• integrated water cycle management.

Half-yearly financial report at June 30, 2013The Half-yearly financial reportThe Half-yearly financial report (in the following the “Half-yearly report”) of the A2A Groupat June 30, 2013 is presented in millions of euro; the euro is also the functional currency of theeconomies in which the Group operates.The Half-yearly report of the A2A Group at June 30, 2013 has been prepared:• in compliance with Legislative Decree no. 58/1998 (art. 154-ter) as amended and with theIssuers’ Regulations published by Consob;• in accordance with the International Financial Reporting Standards (IFRS) issued by theInternational Accounting Standard Board (IASB) and approved by the European Union andin particular IAS 34. IFRS means all the revised international accounting standards (IAS)and all the interpretations of the International Financial Reporting InterpretationsCommittee (IFRIC), formerly known as the Standing Interpretations Committee (SIC).47In preparing the Half-yearly report the Group has applied the same principles as those used inthe preparation of the consolidated annual financial report at December 31, 2012.The principles and interpretations described in detail in the paragraph below “Changes inaccounting principle” were adopted for the first time on January 1, 2013.This Half-yearly report at June 30, 2013, which has been subject to a review by the auditors,was approved by the Management Board on July 31, 2013, which authorized publication.

Half-yearly financial report at June 30, 2013Financial statementsThe Group has adopted a format for the balance sheet which presents current and noncurrentassets and current and non-current liabilities as separate classifications, as requiredby paragraphs 60 and following of IAS 1 (Revised).48The income statement is presented by nature, a format which is considered morerepresentative than a presentation by function. The selected format is in agreement with thepresentation used by the Group’s major competitors and in line with international practice.The results of ordinary operations are shown in the income statement separately fromincome or expense deriving from transactions which are non-recurring in the business'sordinary operations, such as gains or losses on the sale of investments and other nonrecurringincome or expense; this makes it easier to measure the effective performance of theGroup’s ordinary operating activities.The cash flow statement has been prepared using the indirect method as permitted by IAS 7.The statement of changes in equity has been prepared in accordance with IAS 1 (Revised).The formats adopted for the financial statements are the same as those used to prepare theannual consolidated financial statements at December 31, 2012.

Half-yearly financial report at June 30, 2013Basis of preparationThe Half-yearly report at June 30, 2013 has been prepared on a historical cost basis, with theexception of those items which under IFRS must be or can be measured at fair value, asdiscussed in further detail in the accounting policies.The consolidation principles, the accounting principles, the accounting policies and themethods of measurement used in the preparation of the Half-yearly report are consistentwith those used to prepare the annual consolidated financial statements at December 31, 2012.49

Half-yearly financial report at June 30, 2013Changes in accounting standards50The accounting principles adopted for the first half of 2013 are essentially the same as those usedin the prior year, as indicated below in the paragraph below “Accounting principles, amendmentsand interpretations applied by the Group from the current year”. In particular, since reporting isbased on an interim period, the requirements of IAS 34 “Interim Financial Reporting” arecomplied with.A summary is provided in the following paragraphs “Accounting principles, amendments andinterpretations approved by the European Union but applicable after June 30, 2013” and“Accounting principles, amendments and interpretations not yet approved by the EuropeanUnion” of the changes that will be adopted in future periods, stating the expected effects onthe A2A Group’s half-yearly financial report to the extent this is possible.Accounting principles, amendments and interpretations applied bythe Group from the current yearA series of amendments introduced by international accounting standards andinterpretations have been applied, none of which however has led to a significant effect on theGroup’s financial statements. The main changes are described in the following:• IAS 1 - “Presentation of Financial Statements” - presentation of Items of OtherComprehensive Income: this amendment, applicable from July 1, 2012, was issued on June5, 2012 and regards the classification of items in “other comprehensive income” on thebasis of whether they are potentially reclassifiable to profit or loss subsequently;• IFRS 1 “Government Loans”: this amendment, applicable from January 1, 2013, was issuedon March 12, 2012 and regards government loans at a below-market rate of interest. Morespecifically, the amendment requires that a first-time adopter must classify all outstandinggovernment loans received as a financial liability or an equity instrument in accordancewith IAS 32 “Financial Instruments: Presentation”. In addition, the amendment states thata first-time adopter may not recognize the corresponding benefit of a government loan ata below-market rate of interest as a government grant;• IFRS 7 “Financial Instruments: Disclosures”: on December 16, 2011 the IASB issued anamendment to this standard “Disclosures - Offsetting Financial Assets and Financial

Half-yearly financial report at June 30, 2013Changes in accounting standardsLiabilities” which is applicable retrospectively for annual periods beginning on or afterJanuary 1, 2013. This amendment requires information to be provided on the effects orpotential effects on the statement of financial position of netting agreements for financialassets and liabilities;• IFRS 13 “Fair Value Measurement”: this standard was issued by the IASB on May 12, 2011 andis applicable from January 1, 2013. IFRS 13 defines fair value, provides guidelines on how tomeasure it and introduces disclosure requirements.The standard does not specify when fair value measurement is applicable but establisheshow it should be calculated when it is required by other standards. The new standardapplies to all transactions, both financial and non-financial, for which internationalaccounting standards require or permit fair value measurements, with the exception oftransactions recognized on the basis of IFRS 2 “Share-based Payments”, lease agreementsgoverned by IAS 17 “Leases” and transactions recognized on the basis of “net realizablevalue” as specified in IAS 2 “Inventories” and “value in use” as specified in IAS 36“Impairment of Assets”.The standard defines “fair value” as the “price that would be received to sell an asset orpaid to transfer a liability in an orderly transaction between market participants at themeasurement date”. If transactions can be observed directly in the marketplace, fair valuecan be measured fairly easily; where this is not possible, valuation techniques are used. Thestandard describes three of these techniques which can be used to measure fair value; thefirst is the market approach, which uses prices and other relevant information generatedby market transactions involving comparable assets and liabilities; the second is theincome approach, which consists in discounting future cash inflows and outflows; thethird is the cost approach, which requires an entity to produce a value that reflects theamount that would be required currently to replace the service capacity of an asset.As regards the disclosures to be provided in the financial statements, IFRS 13 extends thehierarchy of three levels of fair value which vary depending on the input used in the valuationtechniques, as stated in IFRS 7 “Financial Instruments: Disclosures”, to all assets and liabilitieswithin its scope of application. Certain disclosure requirements vary depending on whetherthe fair value measurement is carried out on a recurring or non-recurring basis: recurringmeans the fair value measurements required by other accounting standards at the end of eachreporting period, whereas non-recurring means fair value measurements required in specialcircumstances only;• IAS 12 “Income Taxes: on December 20, 2010, the IASB issued an amendment, applicableretrospectively from January 1, 2013, which clarifies how to determine deferred taxationwhen investment property is measured at fair value. The amendment introduces therequirement that deferred taxation relating to an investment property measured using thefair value model in IAS 40 “Investment Property” should be calculated on the presumption51

Half-yearly financial report at June 30, 2013Changes in accounting standardsthat the carrying amount of that asset will be recovered entirely through sale. As a result SIC21 “Income Taxes - Recovery of Non-Depreciable Assets” is no longer applicable to thatamendment. The standard is applicable retrospectively with no requirement to restatecomparative figures;• IFRIC 20 “Stripping Costs in the Production Phase of a Surface Mine”: this interpretationwas issued by the IASB on October 19, 2011 and is applicable from January 1, 2013; theinterpretation considers when and how to account for the costs of removing wastematerials in the production phase of a mine. The interpretation makes a distinctionbetween the different benefits accruing from waste removal activities, which may consistof the generation of usable ore or improved access to real reserves.In the former case, the materials constitute inventory and the costs in question aretherefore accounted for as such (in compliance with IAS 2 “Inventories”). In the lattercase, the costs are accounted for as non-current assets (stripping activity assets) providedthat the future economic benefits associated with the improved access to the ore will in alllikelihood flow to the entity.52On March 28, 2013 a set of proposed amendments to IFRSs “Annual Improvements to IFRSs2009 - 2011 Cycle” was approved which had been issued by the IASB in May 2012; theseamendments are applicable retrospectively from January 1, 2013 and more specifically regard:a) IAS 1 “Financial Instruments: Presentation” sets out the criteria for presenting current andnon-current liabilities as separate classifications in the balance sheet;b) IAS 16 “Property, Plant and Equipment” clarifies that servicing equipment shall beclassified as property, plant and equipment if used for more than one year, otherwise suchitems shall be classified as inventory;c) IAS 32 “Financial Instruments: Presentation” clarifies the fiscal treatment for directtaxation arising from distributions to equity holders and from transaction costs on equityinstruments, stating that this should follow the rules of IAS 12 “Income Taxes”;d) IAS 34 “Interim Financial Reporting” addresses segment reporting disclosures; inparticular, it clarifies that total assets for a particular reportable segment shall only bereported if that information is regularly provided to the entity’s chief operating decisionmaker and if there has been a material change from the amount disclosed in the lastfinancial statements for that reportable segment.The amendment to IAS 19 “Employee Benefits” was approved on June 6, 2012 and is applicablefrom January 1, 2013, and the A2A Group has early applied this from January 1, 2012.The changes made in the amendment may be grouped into three main categories:(i) recognition and presentation in the financial statements;(ii) disclosures;(iii) additional changes.

Half-yearly financial report at June 30, 2013Changes in accounting standardsThe first category of changes concerns defined benefit plans. In particular, the corridormethod used as a means of recognizing actuarial gains and losses has been eliminated, withthe simultaneous requirement being introduced to recognize “remeasured” items (actuarialgains and losses) in other comprehensive income.The change in the defined benefit obligation is then separated into the following threecomponents in the income statement presentation:1. an operating component (service cost);2. a financial component (finance cost);3. a measurement component (remeasurement cost).As far as disclosures are concerned, in addition to the elimination of the disclosure relating tothe deferral of the recognition of income components (which is no longer required followingthe elimination of the option to select the corridor method), disclosures are required of thefeatures of the plans and the related amounts recognized in the financial statements, the risksinvolved in the plans, which includes a sensitivity analysis for the demographic risk, and detailsof any participation in multiemployer pension plans.53Accounting principles, amendments and interpretations approved bythe European Union but applicable after June 30, 2013The following principles and interpretations already approved by the European Union andcurrently not applied by the Group could be adopted in the next few years if the conditionsarise:• IFRS 10 “Consolidated Financial Statements” was issued by the IASB on May 12, 2011 and isapplicable from January 1, 2014. Unlike IAS 27 “Consolidated and Separate FinancialStatements”, in which control is defined as the power to govern the financial andoperating policies of an entity so as to obtain benefits from its activities, in IFRS 10 aninvestor controls an investee when it is exposed, or has rights, to variable returns from itsinvolvement with the investee and when at the same time it has the ability to affect thosereturns through its power over the investee. An investor controls an investee if and only ifthe investor has all of the following:1. the power to direct the relevant activities of the investee;2. the exposure to future returns from the investee;3. the ability to use its power over an investee to affect the investor’s returns.The power to direct activities that significantly affect the results of the subsidiary (relevantactivities) may more easily be exercised through voting rights (including potential votingrights), but also through contractual arrangements. When control is exercised throughvoting rights, relevant activities are represented by operating activities (development,

Half-yearly financial report at June 30, 2013Changes in accounting standards54purchasing and product sales) and financial management activities (obtaining andnegotiating loans, acquisitions and sales of financial assets).Future returns also include dividends, payment for services provided by the parent for thesubsidiary's activities and tax benefits.The third condition for establishing whether control exists regards the interactionbetween the first two conditions. In particular, in certain circumstances an entity may havean interest in a group of the subsidiary's assets and liabilities as part of a legal orcontractual condition. IFRS 10 establishes that to determine the existence of control, thisgroup of assets and liabilities can only be considered a separate entity if it is economicallyseparate from the entity as a whole, and is therefore a subsidiary for the purposes of theconsolidated financial statements.Following the introduction of this standard, revised versions of IAS 27 “Separate FinancialStatements”, which remains the main reference standard for separate financial statements,and IAS 28 “Investments in Associates and Joint Ventures” were issued. The interpretationSIC 12 “Consolidation - Special Purpose Entities” has been superseded;• IFRS 11 “Joint Arrangements” was issued by the IASB on May 12, 2011 and is effective fromJanuary 1, 2014. This standard establishes that in a joint arrangement two or more partieshave joint control and decisions regarding relevant activities require the unanimousconsent of the parties.IFRS 11 identifies two different types of joint arrangement:1. joint operations;2. joint ventures.The two types differ in the rights and obligations of each party to the joint arrangement. Ina joint operation, the parties have rights to the assets and obligations for the liabilities ofthe arrangement, whereas in a joint venture the parties have rights linked to the net assetsof the arrangement. IFRS 11 requires an entity to fully recognize the assets, liabilities,revenues and expenses relating to a joint operation on the basis of its interest, while itshould account for a joint venture using the equity method, as required by IAS 28“Investments in Associates and Joint Ventures”.Joint operations are recognized in the same way in both the separate and consolidatedfinancial statements, with an entity recognizing the assets, liabilities, revenues andexpenses on the basis of its interest; joint ventures and investments in subsidiaries andassociates on the other hand may be recognized in the separate financial statementseither at cost or on the basis of IFRS 9 “Financial Instruments” (and IAS 39 “FinancialInstruments: Recognition and Measurement”), as also specified in IAS 27 “SeparateFinancial Statements”. As regards disclosures for the purpose of completeness,reference should be made to the new IFRS 12 “Disclosures of Interests in OtherEntities”.

Half-yearly financial report at June 30, 2013Changes in accounting standards• IFRS 12 “Disclosure of Interests in Other Entities” was issued by the IASB on May 12, 2011and is applicable from January 1, 2014. This standard establishes the minimum disclosurerequirements, combining them with those established by other standards, that entitiesmust provide about all types of interests, including those in a subsidiary, a jointarrangement, an associate, a special-purpose entity or an unconsolidated vehicle;• IAS 27 (Revised) “Separated Financial Statements” was issued by the IASB on May 12, 2011and is applicable from January 1, 2014; a revised version of IAS 27 was issued at the sametime as IFRS 10 “Consolidated Financial Statements” was introduced, which retains its roleas the general standard of reference for separate financial statements. This standardapplies to the measurement of investments in subsidiaries, associates and joint ventures inthe separate financial statements of the parent. Joint ventures, as is also the case forinvestments in subsidiaries and associates, may be recognized in the separate financialstatements either at cost or on the basis of IFRS 9 “Financial Instruments” (and IAS 39“Financial Instruments: Recognition and Measurement”). When, in accordance with IFRS10 “Consolidated Financial Statements”, a parent elects not to prepare consolidatedfinancial statements, in its separate financial statements it must disclose informationabout its investments in subsidiaries, associates and joint ventures, their principal placesof business (and their registered offices if different), their activities, the ownershipinterest in each individual investee and a description of the method used to account forthe investment;• IAS 28 (Revised) “Investments in Associates and Joint Ventures” was issued by the IASB onMay 12, 2011 and is applicable from January 1, 2014; a revised version of IAS 28 was issued atthe same time as IFRS 10 “Consolidated Financial Statements” was introduced, whosescope is to prescribe the accounting for investments in associates and joint ventures. Anentity that exercises joint control or has significant influence over another entity mustaccount for its investment using the equity method;• IAS 32 “Financial Instruments: Presentation” was issued by the IASB on December 16, 2011and is applicable retrospectively for annual periods beginning on or after January 1, 2014.This amendment clarifies the application of certain criteria for offsetting the financialassets and liabilities included in IAS 32.55Accounting principles, amendments and interpretations not yetapproved by the European UnionThe following standards and interpretations have not been applied, since at the present time thecompetent bodies of the European Union have still to complete their approval process.• IFRS 9 “Financial Instruments”: applicable retrospectively from January 1, 2015(application was previously set as from January 1, 2013), this standard represents the first

Half-yearly financial report at June 30, 2013Changes in accounting standards56of a three-stage process whose scope is to fully replace IAS 39 “Financial Instruments:Recognition and Measurement” and introduces new criteria for classifying and measuringfinancial assets and liabilities. The main changes introduced by IFRS 9 may be summarizedas follows: financial assets are classified into two categories alone - “at fair value” or “atamortized cost”. As a result, the categories “loans and receivables”, “available-for-salefinancial assets” and “held-to-maturity investments” disappear. Classification within thetwo categories is carried out on the basis of an entity’s business model and the contractualcash flow characteristics of the financial asset. A financial asset is measured at amortizedcost if both of the following requirements are met: the objective of the entity’s businessmodel is to hold assets to collect contractual cash flows (and therefore in substance not toearn trading profits) and the characteristics of the cash flows of the asset are solelypayments of principal and interest. A financial asset is measured at fair value if it is notmeasured at amortized cost. The rules for accounting for embedded derivatives havebeen simplified: separate accounting for the embedded derivative and the financial asset“hosting” it is no longer required.All equity instruments - listed or unlisted - must be measured at fair value. IAS 39established on the other hand that unlisted equity instruments should be valued at cost iffair value could not be reliably measured.An entity has the option of presenting changes in the fair value of equity instruments thatare not held for trading in equity; that option is not permitted for equity instruments thatare held for trading. This designation is permitted on initial recognition, may be adoptedfor each individual instrument and is irrevocable. If an election is made for this option,changes in the fair value of these instruments may never be reclassified from equity toprofit or loss. Dividends on the other hand continue to be recognized in profit or loss.IFRS 9 does not permit reclassifications between the two categories of financial assetexcept in the rare case of a change in an entity’s business model. In this case the effects ofthe reclassification are applied prospectively.The disclosures required to be made in the notes have been adjusted to the classificationand measurements rules introduced by IFRS 9;• IAS 36 “Impairment of Assets”: the amendments to IAS 36, which are applicable fromJanuary 1, 2014, were issued on May 29, 2013 and regard the disclosures required onrecognizing impairment losses when the recoverable amount of impaired assets is basedon fair value less costs of disposal. The amendments remove the requirement to disclosethe recoverable amount of assets when the cash generating unit (CGU) includes goodwillor intangible assets with indefinite useful lives but the asset is not impaired. In addition,disclosures are required of the recoverable amount of an asset or CGU and the way inwhich fair value less costs of disposal has been calculated when an impairment loss hasbeen recognized for the asset;

Half-yearly financial report at June 30, 2013Changes in accounting standards• IAS 39 “Financial Instruments: Recognition and Measurement”: the amendments to thisstandard, issued on June 27, 2013, regard the accounting for derivatives which have beendesignated as hedging instrument if there is novation of the counterparty. Before theintroduction of these amendments, if a derivative which had been designated as a hedginginstrument was novated, IAS 39 required an interruption to cash flow hedge accounting onthe assumption that the novation led to the conclusion and extinguishment of the preexistinghedging instrument. These amendments are applicable retrospectively fromJanuary 1, 2014;• IFRS 10, IFRS 12 and IAS 27: the amendments to these standards, issued in October 2012,regard the exclusion from the consolidation scope of the majority of companies controlledby funds or similar bodies, requiring that these be measured at “fair value through profitor loss”. The amendments also regard IFRS 12 on the question of disclosures made byinvestment companies;• IFRIC 21 “Levies”: this interpretation of IAS 37 “Provisions, Contingent Liabilities andContingent Assets” was issued on May 20, 2013 and regards the accounting for leviesimposed by governments which do not fall within the scope of IAS 12 “Income Taxes”. IAS37 “Provisions, Contingent Liabilities and Contingent Assets” sets out criteria for therecognition of a liability, one of which is the requirement for the entity to have a presentobligation as a result of a past event (known as an obligating event). The interpretationclarifies that the obligating event that gives rise to a liability to pay a levy is the activitydescribed in the legislation that triggers the payment of the levy. The interpretation isapplicable from January 1, 2014.57

Half-yearly financial report at June 30, 2013Scope of consolidationThe Half-yearly financial report of the A2A Group at June 30, 2013 includes the figures of theparent A2A S.p.A. and those of the subsidiaries over which A2A S.p.A. holds, directly orindirectly, the majority of the voting rights which may be exercised at an ordinaryshareholders’ meeting. In addition, companies in which the parent exercises joint control withother entities (joint ventures) and those over which it has a significant influence areconsolidated using the equity method.58Following the establishment of Chi.Na.Co S.r.l. in May 2013 as part of the purchase and saleagreement entered into by A2A S.p.A. and the BKW group, as discussed further in the section“Significant events for the Group after June 30, 2013”, the latter, a wholly owned subsidiary ofthe parent company A2A S.p.A., entered the consolidation scope.In addition, the merger of Delmi S.p.A. into Edipower S.p.A. took effect on January 1, 2013.Neither of the above transactions represents a real change in the consolidation scope, as theydid not lead to any differences in the consolidation perimeter as far as consolidated assets andliabilities are concerned.

Half-yearly financial report at June 30, 2013Consolidation policies andproceduresConsolidation policiesSubsidiariesThe consolidation scope of the A2A Group comprises the parent A2A S.p.A. and the companiesover which it exercises direct or indirect control, including the case when the holding is less than50%.. Subsidiaries are consolidated from the date on which the Group effectively acquirescontrol and cease to be consolidated on a line-by-line basis from the date on which control istransferred to a company outside the Group.59Associates and joint venturesInvestments in associates, namely those in which the A2A Group has a considerable interestand is able to exercise significant influence, and those over which A2A has joint controltogether with other entities (joint ventures) are accounted for using the equity method. Gainsand losses attributable to the Group are recognized in the financial statements from the dateon which significant influence or joint control commences.In the event that the loss attributable to the Group exceeds the carrying amount of aninvestment, the carrying amount is reduced to zero and any excess loss is provided for to theextent that the Group has legal or constructive obligations to make good the associate’s lossesor, in any case, to make payments on its behalf.Potential voting rightsIf the A2A Group holds call options on shares or other equity instruments that representcapital (warrants) that are convertible into ordinary shares or similar instruments having thepotential, if exercised or converted, to give the Group voting rights or reduce the voting rightsof third parties (“potential voting rights”), such potential voting rights are taken intoconsideration when assessing whether or not the Group has the power to govern or influenceanother company's financial and operating policies.

Half-yearly financial report at June 30, 2013Consolidation policies and proceduresTreatment of put options on the shares of subsidiariesThe Group has granted put options to minority shareholders which entitle them to require theA2A Group to purchase the shares they own at a future date.60Paragraph 23 of IAS 32 states that a contract that contains an obligation for an entity topurchase shares for cash or another financial asset gives rise to a financial liability for thepresent value of the exercise price of the option.As a result, therefore, if the Group does not have the unconditional right to avoid the deliveryof cash or other financial instruments when a put option on the shares of subsidiaries isexercised, a liability must be recognized.In the absence of specific recommendations made by the accounting standards adopted, theA2A Group (i) considers that the shares that are the object of the put option have already beenacquired, even in the case that the risks and rewards connected with the ownership of theshares remain with the minority shareholders and they continue to be exposed to equity risk;(ii) recognizes the liability arising from the obligation and any changes in the liability that donot depend on the simple passage of time (the unwinding of the discounting of the exerciseprice), with a counter-entry to equity; (iii) recognizes the latter in profit or loss.Consolidation policiesGeneral procedureThe financial statements of the subsidiaries, associates and joint ventures consolidated by theA2A Group are prepared at the end of each reporting period using the same accountingpolicies as the parent. Any items recognized by using different accounting principles areadjusted during the consolidation process to bring them into line with Group accountingpolicies. All intragroup balances and transactions, including any unrealized profits arisingfrom transactions between Group companies, are fully eliminated.In preparing the Half-yearly Report the assets, liabilities, income and expenses of thecompanies being consolidated are included in their entirety on a line-by-line basis, with theportion of equity and net income for the period attributable to minority interests being statedseparately in the balance sheet and income statement.The carrying amount of the investment in each subsidiary is eliminated against thecorresponding share of its net equity, including any adjustments to fair value at the acquisitiondate; any differences arising are accounted for in accordance with IFRS 3.Transactions with minority interests which do not lead to the loss of control in consolidatedcompanies are accounted for using the economic entity view approach.

Half-yearly financial report at June 30, 2013Consolidation policies and proceduresProcedure for the consolidation of assets and liabilities held for sale(IFRS 5)In the case of particularly large amounts and solely in connection with non-current assetsand liabilities held for sale, and only in this case, in accordance with IFRS 5 the relativeintragroup financial receivables and payables are not eliminated in order to provide a clearpresentation of the financial impact of a possible disposal.Effect on the consolidation procedures of certain agreementsinvolving the shares or quotas of Group companiesa) Rights granted to the financial shareholders (Mediobanca, Fondazione CRT andBanca Popolare di Milano)On May 24, 2012, A2A S.p.A., the other shareholders of Edipower S.p.A. (formerly Delmi S.p.A.)and Iren Energia S.p.A. (a current shareholder of Edipower S.p.A.) signed a frameworkagreement concerning the governance of Edipower S.p.A. and its operating model. Thisframework agreement has a duration of 5 years and renews automatically unless expresslyterminated.61The framework agreement also includes provisions regarding the circulation of EdipowerS.p.A. shares (e.g. lock-up, pre-emptive, acceptance, right to joint sale and right to purchaseclauses) and divestment from Edipower S.p.A..As concerns this final point, beginning on the date of the third anniversary of the merger theparties in the framework agreement are required to come together to verify, in good faith, ifthe necessary conditions exist for listing the shares in Edipower S.p.A., including by way ofmergers with other listed companies. In the event of a listing, the financial shareholders ofEdipower S.p.A., namely Mediobanca, Fondazione CRT and BPM, shall be entitled to placetheir own equity investments on the market with priority over the other parties to theframework agreement.Should the company not be listed within 48 months of the effective date of the merger,Mediobanca, Fondazione CRT and BPM shall each have the right to liquidate their entire equityinterest in Edipower S.p.A. in exchange for payment of the fair value of said investment, to bepaid in kind by assignment of a business unit to be selected by the board of directors ofEdipower S.p.A.. Should this procedure not be completed, for any reason, within 50 months ofthe date of the merger, Mediobanca, Fondazione CRT and BPM shall each have a put option atfair value on their holding which can be exercised with the other shareholders of EdipowerS.p.A. subsequent to the merger, in proportion to the equity interest each shareholder ownsin Edipower S.p.A..

Half-yearly financial report at June 30, 2013Consolidation policies and proceduresThe signing of the framework agreement and the rights consequently granted to the financialshareholders (Mediobanca, Fondazione CRT and BPM) have been deemed to be put optionson non-controlling interests and have been recognized in accordance with paragraph 23 of IAS32. This standard states that a contract that contains an obligation for an entity to purchaseshares for cash or for another financial asset gives rise to a financial liability for the presentvalue of the exercise price of the option.The A2A Group therefore considers the shares involved in the put options to have alreadybeen purchased, even though the other shareholders maintain the risks and benefitsconnected with ownership of the shares and they continue to be exposed to the related equityrisk, and has recognized the liability resulting from this obligation. Any subsequent changes inthe liability that are not related to the mere unwinding of the present value of the exerciseprice will be recognized in equity.b) Exchange agreement between A2A S.p.A. and Dolomiti Energia S.p.A.62On March 15, 2012, A2A S.p.A. and Dolomiti Energia S.p.A. signed an agreement whichestablishes swap rights in favour of Dolomiti Energia S.p.A.. Specifically, this exchangeagreement states that Dolomiti Energia S.p.A. shall have the right to exchange its shares inEdipower S.p.A. with the shares held by A2A S.p.A. in Dolomiti Energia S.p.A. and with certainassets of A2A S.p.A. which are yet to be determined. Should the fair value of the assets involvedin the exchange be less than 16 million euro, there is to be a cash payment for the difference.Dolomiti Energia S.p.A. may exercise this swap right at any time during the 180-day periodbeginning from the end of the 24th month subsequent to the date on which the exchangeagreement was signed, unless this exercise date is moved forward in the event that A2A S.p.A.should exercise the right to acquire the shares in Edipower S.p.A. in accordance withshareholder agreements or the bylaws.The signing of the exchange agreement and the consequent granting of rights to DolomitiEnergia S.p.A. have been considered to be a put option on a non-controlling interest and havebeen recognized for accounting purposes as described above.c) Option agreement between A2A S.p.A. and Società Elettrica Altoatesina S.p.A.(SEL)On May 24, 2012, A2A S.p.A. signed an option agreement with Società Elettrica Altoatesina (SEL)S.p.A. concerning a portion of the shares held in Edipower S.p.A. following the merger of the twocompanies; this merger became effective on January 1, 2013 based on the deed signed onDecember 18, 2012.

Half-yearly financial report at June 30, 2013Consolidation policies and proceduresSEL S.p.A. holds a 6.75% equity interest in Edipower S.p.A. following the merger.The option agreement states that SEL S.p.A. has a put option (the right to sell) and A2A S.p.A. hasa call option (the right to buy) on the shares held by SEL S.p.A. in Edipower S.p.A..SEL S.p.A. may exercise its put option during the 3-month period prior to May 24, 2017, andA2A S.p.A. may exercise its call option during that same 3-month period. The exercise price ofthese options is made up of a fixed portion and a variable portion to be based on the fair valueof the shares involved in the options as at the exercise date.The signing of the option agreement and the consequent granting of rights to SEL S.p.A. havebeen considered to be a put option on a non-controlling interest and have been recognized foraccounting purposes as described above.As a result of the agreements described under points (a), (b) and (c) above, the Half-yearlyreport at June 30, 2013 includes a liability to Dolomiti Energia S.p.A., SEL S.p.A. and thefinancial shareholders of Edipower S.p.A., for the potential exercising of the put options onEdipower S.p.A. shares, totaling approximately 304 million euro. On the initial recognition ofthe put option at a carrying amount of 284 million the counter-entry was recorded as aminority interest in equity. The subsequent increase of 20 million euro, of which 3 million euroin the first half of 2013, has been recorded with a counter-entry to equity pertaining to theGroup. The change in value of the put option due to the passage of time has been recognizedin profit or loss.63d) Private agreement between A2A S.p.A., A2A Trading S.r.l., Iren S.p.A., Iren EnergiaS.p.A. and Iren Mercato S.p.A.On May 15, 2012, A2A S.p.A., A2A Trading S.r.l., Iren S.p.A., Iren Energia S.p.A. and Iren MercatoS.p.A. signed a private agreement concerning the potential exit of the Iren Group from theownership of Edipower S.p.A. and subsequently amended this agreement on May 21, 2012.Specifically, this private agreement grants A2A S.p.A. and Iren S.p.A. the right in January 2013and January 2014 to call for a spin-off from Edipower S.p.A. of a group of thermal andhydroelectric power generation assets having a value essentially equivalent to the interest inEdipower S.p.A. held by Iren S.p.A. and Iren Energia S.p.A., with the allocation of these assets toIren S.p.A. and Iren Energia S.p.A..Regarding the recognition of this transaction, the rights granted to Iren S.p.A. and Iren EnergiaS.p.A. do not entail any obligation for the A2A Group to make any payment either in cash or byway of the transfer of other financial assets. In fact given that Iren S.p.A. has exercised itsrights, the A2A Group must provide a group of assets as described in the private agreement(and make payment in cash of any balance) in exchange for the equity interests in Edipower

Half-yearly financial report at June 30, 2013Consolidation policies and proceduresS.p.A. held by Iren S.p.A. and Iren Energia S.p.A.. For this reason no liability has been recognizedin the Half-yearly report at June 30, 2013 for the exchange of the options that have beengranted.Given the above matters, as discussed in the section “Significant events during the period” onFebruary 6, 2013, in conjunction with the presentation of the 2013-2015 business plan, the IrenGroup announced its intention to exercise the put option that envisages the relinquishing ofits interest in Edipower S.p.A. in exchange for the assignment of the group of thermal andhydroelectric power generation assets.64As a result of the above the A2A Group has reclassified these assets to non-current assets heldfor sale in accordance with IFRS 5.On June 28, 2013, in execution of the agreements reached between A2A S.p.A. and Iren S.p.A.on the purchase of Edipower S.p.A. completed in May 2012, and as a consequence of theexercising of the rights envisaged therein by Iren S.p.A., which occurred in February 2013, theextraordinary shareholders’ meetings of Edipower S.p.A. and Iren Energia S.p.A. approved theproject for the non-proportional demerger of Edipower S.p.A..Under this operation a group of net assets is assigned to Iren Energia S.p.A. consisting of theTurbigo thermoelectric plant and the Tusciano hydroelectric complex, the staff working inthose plants, the assets and liabilities attributable to the plants and a loan of 44.8 million euro.After the demerger the Iren Group will no longer be a shareholder of Edipower S.p.A..After the time limits laid down by law are met and once the formalities required for signing thedemerger deed are completed, the operation will become effective in the fourth quarter of2013; an adjustment mechanism will come into operation based on the balance sheet at theeffect date of the demerger.e) Option granted to the Municipality of Varese for the sale of 9.8% of Aspem S.p.A.A2A S.p.A. holds 90% of the shares of Aspem S.p.A., a company that provides local publicservices in the city of Varese and in other towns in the province of Varese.Under the shareholders’ agreement of January 15, 2009 between A2A S.p.A. and theMunicipality of Varese, at the end of a three-year period of non-transferability of the shares ofAspem S.p.A., starting from the date of the shareholders’ agreement, the Municipality ofVarese had the right, but not the obligation, to sell (put option) 9.8% of the share capital ofAspem S.p.A. to A2A S.p.A..In accordance with paragraph 23 of IAS 32, the Group has recognized the present value of theestimated outlay which it will not be able to avoid if the option is exercised as a liability, with acounter-entry to equity.

Half-yearly financial report at June 30, 2013Consolidation policies and proceduresf) EPCG - Montenegro government optionsAs a result of the agreement signed in 2009 with A2A S.p.A. on the acquisition of theinvestment of 43.7% in the capital of EPCG by the Italian listed company, the Montenegrogovernment holds a call option on this interest which, depending on whether certainquantitative targets or specific indicators are reached, may already be exercised from thisyear at a price higher than the carrying amount in the financial statements at June 30, 2013.Key figures at June 30, 2013 and June 30, 2012 for joint ventures(consolidated at equity)Key figures at June 30, 2013Millions of euroEcodecoGroupcompanies50% (*)INCOME STATEMENTRevenues from the sale of goods and services 5.0Gross operating income 0.4% of net revenues 7.6%Depreciation, amortization and write-downs 0.7Net operating income (loss) (0.3)Result for the period (0.3)BALANCE SHEETTotal assets 13.5Net equity 0.9Net (debt) 2.0(*) Bellisolina S.r.l., Bergamo Pulita S.r.l. and Sed S.r.l..65Key figures at June 30, 2012 Ecodeco MetamerMillions of euro Group 50%companies50% (*)INCOME STATEMENTRevenues from the sale of goods and services 5.5 6.5Gross operating income 0.2 0.2% of net revenues 3.1% 3.1%Depreciation, amortization and write-downs 0.5 -Net operating income (loss) (0.3) 0.2Result for the period (0.3) 0.1BALANCE SHEETTotal assets 14.8 6.5Net equity 1.4 1.5Net debt (3.4) 3.0(*) Bellisolina S.r.l., Bergamo Pulita S.r.l. and Sed S.r.l..

Half-yearly financial report at June 30, 2013Consolidation policies and proceduresSeasonal nature of the businessGiven the nature of the Group's ordinary activities, the interim results are liable to change as aresult of the weather experienced during the period.In this respect reference should be made to the comments on performance by sectorpresented below.66

Half-yearly financial report at June 30, 2013Consolidation policies and procedures67

Half-yearly financial report at June 30, 2013Results sector by sectorMillions of euro Energy Environment01 01 13 01 01 12 01 01 13 01 01 1206 30 13 06 30 12 06 30 13 06 30 1268Revenues 2,199 2,654 448 434– of which inter-sector 107 107 50 36Gross operating income 293 167 155 140% of revenues 13.3% 6.3% 34.6% 32.3%Depreciation, amortization, provisions and write-downs (172) (93) (32) (43)Net operating income 121 74 123 97% of revenues 5.5% 2.8% 27.5% 22.4%Net financial income/expenseNon-operating income/expensesIncome before taxesIncome taxesResult after fax from operating activitiesNet result from non-current assets sold or held for saleMinorityGroup net income for the periodGross investments ( 1 ) 31 2,138 ( a ) 18 17(1) See “Investments” in the schedules in Notes 1 and 2 to the balance sheet on tangible and intangible assets.(*) The comparative figures for the period January - June 2012 have been recalculated to reflect the application of Revised IAS 19“Employee Benefits”.(a) Includes the effect of first-time consolidation of Edipower S.p.A. for 2,133 million euro.(b) Includes the acquisition of the Tecnovalore business for 7 million euro.(c) Includes advance payments for 3 million euro.Millions of euro Energy Environment06 30 13 12 31 12 06 30 13 12 31 12Tangible assets 3,820 3,960 448 460Intangible assets 59 63 36 36Trade receivables and current financial assets 1,297 1,578 298 272Trade payables and current financial liabilities 911 1,265 218 209

Half-yearly financial report at June 30, 2013Results sector by sectorHeat & Services Networks Other Services and Eliminations Total GroupCorporate01 01 13 01 01 12 01 01 13 01 01 12 01 01 13 01 01 12 01 01 13 01 01 12 01 01 13 01 01 1206 30 13 06 30 12 06 30 13 06 30 12 06 30 13 06 30 12 06 30 13 06 30 12 06 30 13 06 30 12(*)205 185 361 363 115 123 (483) (469) 2,845 3,29022 25 194 189 110 112 (483) (469)57 44 121 134 (16) (1) 610 48427.8% 23.8% 33.5% 36.9% (13.9%) (0.8%) 21.4% 14.7%(8) (18) (52) (54) (16) 4 (280) (204)49 26 69 80 (32) 3 330 28023.9% 14.1% 19.1% 22.0% (27.8%) 2.4% 11.6% 8.5%(81) (68)(3) –246 212(94) (94)152 118– 13(19) (6)133 12513 26 ( b ) 50 56 ( c ) 6 12 - - 118 2,24969Heat & Services Networks Other Services and Eliminations Total GroupCorporate06 30 13 12 31 12 06 30 13 12 31 12 06 30 13 12 31 12 06 30 13 12 31 12 06 30 13 12 31 12493 492 1,331 1,343 244 221 (105) (106) 6,231 6,37036 38 1,363 1,364 79 83 (189) (191) 1,384 1,393128 148 357 401 154 113 (304) (578) 1,930 1,93483 114 260 275 1,437 702 (299) (580) 2,610 1,985

Half-yearly financial report at June 30, 2013Notes to the balance sheetASSETS1) Tangible assets70Millions of euro Balance Changes during the period Balanceatat12 31 2012 Investm./ Other Disposals Write- Deprecia- Total 06 30 2013Acquisit. changes and sales downs tion changesLand 249 (2) (1) (3) 246Buildings 1,064 1 (2) (20) (21) 1,043Plant and machinery 4,816 32 38 (3) (177) (110) 4,706Industrial and commercial equipment 40 2 (2) 40Other assets 58 5 2 (7) 58Landfills 14 4 4 (1) (2) 5 19Construction in progress and advances 109 44 (53) (9) 100Leasehold improvements 13 1 (1) 13Leased assets 7 (1) (1) 6Total 6,370 89 (13) (3) (2) (210) (139) 6,231of which:Historical cost 9,737 89 (18) (6) (2) 63 9,800Accumulated depreciation (3,367) 5 3 (210) (202) (3,569)“Tangible assets” amounted to 6,231 million euro at June 30, 2013 (6,370 million euro atDecember 31, 2012), representing a net decrease of 139 million euro.The following changes took place during the period:• an increase of 89 million euro due to investments, as described in further detail below;• a decrease of 13 million euro due to other changes relating mainly to reclassifications toother items;• a decrease of 3 million euro for disposals, net of accumulated depreciation;• a decrease of 2 million euro per for write-downs made during the period;• a decrease of 210 million euro for the depreciation charge for the period.

Half-yearly financial report at June 30, 2013Notes to the balance sheetInvestments may be analyzed as follows:• there was an increase of 29 million euro in the energy sector of which 6 million euroregarded work carried out at the Monfalcone and Calabria unit power stations; 1 millioneuro work carried out at the Cassano d’Adda, Braulio, Premadio, Lovero, Stazzona andGrosio power stations; 1 million euro work carried out at the Gissi power station; 19 millioneuro for investments made by Edipower S.p.A.; and 2 million euro for investments made bythe EPCG Group;• investments of 13 million euro in the heat sector regarded the development of the districtheating network in the Milan, Brescia and Bergamo areas for 11 million euro andextraordinary maintenance and development work on the plants in the Milan, Brescia andBergamo areas for 2 million euro;• the investments of 18 million euro in the environment sector relate to work carried out onthe waste to energy plants for 4 million euro, development and maintenance work on thewaste treatment and disposal plants for 9 million euro and the purchase of equipment for1 million euro and of vehicles for waste collection for 4 million euro;• investments in the networks sector amounted to 27 million euro (of which 9 million euromade by the EPCG Group) and mainly relate to development and maintenance workcarried out on electricity distribution equipment, the extension and refurbishment of thelow and medium voltage network, the installation of new electronic meters, the upgradingof primary plants and work carried out on the gas transportation network;• investments in the services sector amounting to 2 million euro mainly relate to optic fibercabling, maintenance work at the Milan, Brescia and Bergamo offices, the purchase ofoffice equipment and furnishings and the investments made by the EPCG Group.71Tangible assets include “Leased assets” totaling 6 million euro, recognized in accordance withIAS 17, for which the outstanding payable to lessors at June 30, 2013 amounted to 4 millioneuro.

Half-yearly financial report at June 30, 2013Notes to the balance sheet2) Intangible assetsMillions of euro Balance Changes during the period Balanceatat12 31 2012 Investm./ Other Disposals/ Write- Amort- Total 06 30 2013Acquisit. changes Sales downs ization changesIndustrial patents and intellectual property rights 35 3 3 (8) (2) 33Concessions, licences, trademarks and similar rights 752 21 3 (3) (21) 752Assets in progress 24 5 (7) (2) 22Other intangible assets 13 (3) (2) (5) 8Goodwill 569 569Total 1,393 29 (4) (3) – (31) (9) 1,384“Intangible assets”, which at June 30, 2013 amounted to 1,384 million euro (1,393 million euroat December 31, 2012), decreased by a net amount of 9 million euro over the balance atDecember 31, 2012.72Applying IFRIC 12, from 2010 intangible assets also include assets in concession relating to gasdistribution, the integrated water cycle and district heating distribution.The following changes took place during the period:• an increase of 29 million euro due to the investments made during the period;• a decrease of 4 million euro due to other changes relating mainly to reclassifications toother items;• a decrease of 3 million euro arising from disposals, net of accumulated amortization;• a decrease of 31 million euro relating to the amortization charge for the period.More specifically, investments relate to the following items:• “Industrial patents and intellectual property rights” for 3 million euro, mainly relating tothe CRM software and the new sales and distribution communications protocol system;• “Concessions, licenses, trademarks and similar rights ” for 21 million euro, regarding:- the development and maintenance of the plant in the gas distribution segment relating tothe connection of new users and the replacement of low and medium pressureunderground tubing for 16 million euro;- work on the water transportation and distribution network, on the sewage networks andon the purification plants for 4 million euro;- other investments of 1 million euro;• “Assets in progress” for 5 million euro, mainly relating to the development of newcomputer projects, the development and maintenance of the water cycle distributionnetwork and investments made by Edipower S.p.A..

Half-yearly financial report at June 30, 2013Notes to the balance sheet“Other intangible assets” include “customer lists”, which regard the acquisition of customerportfolios by Group companies. These balances are amortized on the basis of the estimatedbenefits expected to be obtained in future years. More specifically, the outstanding balance of7 million euro mostly relates to the amount paid in previous years by subsidiaries for theacquisition of the customers of the business acquired from ENEL in 2003, regarding a portionof the networks and customers of the city and province of Brescia, the customers belonging tothe gas sector and the customer portfolio of the subsidiary Aspem Energia S.r.l..GoodwillMillions of euro Balance at Changes during the period Balance at12 31 2012Invest- Other Write- Total06 30 2013ments changes downs changesGoodwill 569 - 569Total 569 - - - - 569There has been no change in goodwill since the previous period end.73“Goodwill” may be analyzed as follows at June 30, 2013:CGU - Millions of euroElectricity networks 271Environment 232Gas networks 38Gas 7Heat - Italy 21Total goodwill at June 30, 2013 569No impairment indicators were noted during the period which led to the recognition ofimpairment losses. Goodwill is tested for impairment at least annually.In particular, the Group’s actual results are in line with expectations for all its business sectors.The negative performance of the macroeconomic variables seen in the first half of 2013 wasalready considered to a large extent in the Group’s business plans used for carrying outimpairment testing at December 31, 2012. It was therefore considered unnecessary to updateany of the testing.

Half-yearly financial report at June 30, 2013Notes to the balance sheet3) Shareholdings and other non-current financial assetsMillions of euro Balance at Changes in Balance at of which included in the NFP12 31 2012 the period 06 30 201312 31 2012 06 30 2013Shareholdings in companies carriedat equity 210 7 217 - -Other non-current financial assets 53 1 54 44 45Total shareholdings and othernon-current financial assets 263 8 271 44 45“Shareholdings in companies carried at equity” increased by 7 million euro over December 31,2012.The following table sets out details of the changes:Shareholdings in companies carried at equity - Millions of euroTotal74Balance at December 31, 2012 210Changes in the period- acquistions and capital increases 3- valuations at equity 7- dividends received from shareholdings in companies carried at equity (3)- sales- other changes- reclassificationsTotal changes in the period 7Balance at June 30, 2013 217The increase of 7 million euro relates to the following: an increase of 3 million euro from theacquisition of 40% of G.Eco S.r.l. by Aprica S.p.A., an increase of 7 million euro from accountingfor the shareholdings in Dolomiti Energia S.p.A. and ACSM-AGAM S.p.A. using the equitymethod and a decrease of 3 million euro from the receipt of dividends.“Other non-current financial assets” had a balance of 54 million euro at June 30, 2013 (53million euro at December 31, 2012).4) Deferred tax assetsMillions of euro Balance at Changes Balance at12 31 2012 in the period 06 30 2013Deferred tax assets 269 (8) 261“Deferred tax assets” amounted to 261 million euro (269 million euro at December 31, 2012).

Half-yearly financial report at June 30, 2013Notes to the balance sheetThe item consists of the net balance of IRES and IRAP deferred tax assets and liabilities arisingfrom changes and accruals made solely for fiscal purposes.The balance for deferred tax assets/liabilities at June 30, 2013 is presented net, after offsettingin accordance with IAS 12.The main balances for deferred tax assets and liabilities are set out in the following table.Detail of deferred tax Consolid- Accruals Utili- TOTAL IAS 39 IAS 19 Other Deferred Consolidassetsand liabilities ated (A) zations (A+B+C) to equity Revised changes tax assets atedfinancial (B) to equity /reclass/ and financialstatements mergers liabilities statementsat 12 31 2012 relating to atassets held 06 30 2013for saleDeferred tax liabilitiesMeasurement differences fortangible assets 1,095 (30) (30) (1) 3 1,067Application of the leasing standard(IAS 17) 8 8Application of the financialinstrument standard (IAS 39) – 1 1Measurement differences forintangible assets 2 2Employee leaving entitlement 3 3Goodwill 94 94Other deferred tax liabilities 69 (1) (1) 68Total deferred taxliabilities (A) 1,271 – (31) (31) 1 – (1) 3 1,243Deferred tax assetsTaxed risk provisions 91 9 (10) (1) 90Measurement differences fortangible assets 817 7 (22) (15) 802Application of the financialinstrument standard (IAS 39) 17 7 (4) 20Bad debt provision 34 3 (1) 2 36Grants 17 1 1 18Goodwill 487 (27) (27) 460Other deferred tax assets 77 6 (8) (2) (1) 4 78Total deferred taxassets (B) 1,540 27 (69) (42) 7 (1) – – 1,504NET DEFERRED TAXASSETS/LIABILITIES (B-A) 269 26175

Half-yearly financial report at June 30, 2013Notes to the balance sheet5) Other non-current assetsMillions of euro Balance at Changes in Balance at of which included in the NFP12 31 2012 the period 06 30 201312 31 2012 06 30 2013Non-current derivatives 70 (11) 59 70 59Other non-current assets 19 1 20 - -Total other non-current assets 89 (10) 79 70 5976“Other non-current assets” amounted to 79 million euro, a decrease of 10 million euro overthe balance at December 31, 2012, and consist of the following:• 59 million euro relating to “Derivatives” hedging non-current financial items consistingmainly of Interest Rate Swap (IRS) contracts hedging the risk of an adverse change ininterest rates on bonds and long-term loans. The decrease in this item compared toDecember 31, 2012 is mostly due to the reclassification from “Other non-current assets” ofa portion of certain derivatives relating to the 1,000 million euro bond due 2016 andredeemed early on July 11, 2013 in line with the partial redemption of the bond itself, asdescribed further in the section “Significant events for the Group after June 30, 2013”;• 20 million euro for “Other non-current assets” (19 million euro at December 31, 2012),principally relating to guarantee deposits and expenditure incurred but relating to futureyears.Current assets6) InventoriesMillions of euro Balance at Changes Balance at12 31 2012 in the period 06 30 2013Inventories 340 (77) 263“Inventories” amounted to 263 million euro (340 million euro at December 31, 2012), adecrease of 77 million euro over the period, which may be analyzed as follows:• 104 million euro relating to the decrease in fuel stocks, which at the balance sheet datetotaled 127 million euro compared to 231 million euro at December 31, 2012;• materials which totaled 72 million euro at June 30, 2013, unchanged over December 31,2012;• 24 million euro relating to an increase in other stocks, which amounted to 58 million euro atJune 30, 2013 against 34 million euro at December 31, 2012;• 3 million euro arising from an increase in payments on account, which amounted to 6 millioneuro at June 30, 2013 and 3 million euro at December 31, 2012.

Half-yearly financial report at June 30, 2013Notes to the balance sheet7) Trade receivablesMillions of euro Balance at Changes Balance at12 31 2012 in the period 06 30 2013Trade receivables 2.220 (42) 2.178(Bad debt provision) (313) (16) (329)Total trade receivables 1.907 (58) 1.849“Trade receivables” amounted to 1,849 million euro at June 30, 2013 (1,907 million euro atDecember 31, 2012), representing a net decrease of 58 million euro. In further detail:• 102 million euro due to a decrease in trade receivables from customers; this item had abalance of 1,703 million euro at the balance sheet date compared to 1,805 million euro atDecember 31, 2012;• 48 million euro due to an increase in receivables from the Municipalities of Milan andBrescia. This item had a balance of 133 million euro at June 30, 2013 (85 million euro at theend of the previous year);• 4 million euro due to a decrease in receivables from associates; this item had a balance of 7million euro at the balance sheet date compared to 11 million euro at December 31, 2012.77Trade receivables include an amount of approximately 60 million euro due to EPCG by a largeenergy customer opearing in Montenegro for the supply of electricity both directly andindirectly through another company controlled by the Montenegro government. Given thatthe energy customer is in special administration, agreements are in progress between EPCGand the Montenegro government aimed at recovering these receivables, including by menasof offsetting the payables due by EPCG to the Montenegro state.During the period the Group sold receivables of 280 million euro without recourse to afactoring company. A total of 152 million euro had still to be collected at the date of theapproval of the Half-yearly report.The bad debt provision amounted to 329 million euro at June 30, 2013 (313 million euro atDecember 31, 2012). Accruals of 24 million euro were made during the period while utilizationsand other changes amounted to 8 million euro.8) Other current assetsMillions of euro Balance at Changes in Balance at of which included in the NFP12 31 2012 the period 06 30 201312 31 2012 06 30 2013Current derivatives 27 74 101 8 28Other current assets 291 81 372 - -Total other current assets 318 155 473 8 28

Half-yearly financial report at June 30, 2013Notes to the balance sheet78“Other current assets” had a balance of 473 million euro compared to 318 million euro atDecember 31, 2012, representing an increase of 155 million euro which may be analyzed asfollows:• an increase of 74 million euro relating to “Current derivatives” which arises essentiallyfrom an increase in commodity derivatives as the result of changes in the measurement atfair value over the period and an increase in hedging derivatives due to the reclassificationfrom “Other non-current assets” of a portion of certain derivatives relating to the 1,000million euro bond due 2016 and redeemed early on July 11, 2013 in line with the partialredemption of the bond itself, as described further in the section “Significant events forthe Group after June 30, 2013”;• an increase of 4 million euro in advances to suppliers which at the end of the periodamounted to 7 million euro (3 million euro at December 31, 2012);• an increase of 6 million euro in VAT and duty receivables which at June 30, 2013 amountedto 59 million euro (53 million euro at the end of the previous year);• an increase of 26 million euro in receivables from the Electricity Sector Equalization Fundwhich at June 30, 2013 amounted to 89 million euro and at the end of the previous yeartotaled 63 million euro;• an increase in other receivables of 12 million euro which totaled 167 million euro (155million euro at December 31, 2012);• an increase of 31 million euro in balances relating to future years which amounted to 47million euro at June 30, 2013 (16 million euro at December 31, 2012);• an increase of 2 million euro in balances due from personnel compared to the previousyear end.9) Current financial assetsMillions of euro Balance at Changes in Balance at of which included in the NFP12 31 2012 the period 06 30 201312 31 2012 06 30 2013Other financial assets 22 55 77 22 77Financial assets due from relatedparties 5 (1) 4 5 4Total current financial assets 27 54 81 27 81This item had a balance of 81 million euro at the balance sheet date (27 million euro atDecember 31, 2012).

Half-yearly financial report at June 30, 2013Notes to the balance sheet10) Current tax assetsMillions of euro Balance at Changes Balance at12 31 2012 in the period 06 30 2013Current tax assets 90 (41) 49“Current tax assets” amounted to 49 million euro (90 million euro at December 31, 2012)representing a decrease of 41 million euro over the previous year-end.11) Cash and cash equivalentsMillions of euro Balance at Changes in Balance at of which included in the NFP12 31 2012 the period 06 30 201312 31 2012 06 30 2013Cash and cash equivalents 553 157 710 553 710“Cash and cash equivalents” amounted to 710 million euro at June 30, 2013 compared to 553million euro at the beginning of the year, representing an increase of 157 million euro.79Bank deposits include accrued interest although this had not yet been credited at the end ofthe period.12) Non-current assets held for saleMillions of euro Balance at Changes in Balance at of which included in the NFP12 31 2012 the period 06 30 201312 31 2012 06 30 2013Non-current assets held for sale 326 20 346 - -“Non-current assets held for sale” had a balance of 346 million euro at June 30, 2013 (326million euro at December 31, 2012). This item relates to a series of assets of Edipower S.p.A.,amounting to 331 million euro, which have been reclassified following the exercising by theIren Group of a call option to acquire a business consisting of generation assets, partlythermoelectric and partly hydroelectric, which are associated with the shareholding held bythe Iren Group in Edipower S.p.A.. The remaining balance of 15 million euro arises from thereclassification of five small flowing water hydroelectric plants owned by A2A S.p.A. resultingfrom the sales agreement reached with the BKW Group in July 2013, as described further inthe section “Significant events for the Group after June 30, 2013”.

Half-yearly financial report at June 30, 2013Notes to the balance sheetEQUITY AND LIABILITIESEquityEquity, which amounted to 3,752 million euro at June 30, 2013 (3,697 million euro at December31, 2012), is set out in the following table:Millions of euro Balance at Changes Balance at12 31 2012 in the period 06 30 201380Equity pertaining to the Group:Share capital 1,629 - 1,629(Treasury shares) (61) - (61)Reserves 1,018 171 1,189Group net profit for the year 260 (260)Group net profit for the period 133 133Total equity pertaining to the Group 2,846 44 2,890Minority interests 851 11 862Total equity 3,697 55 3,752The overall change in equity, an increase of 55 million euro, is due to net profit for the period of133 million euro, the measurements under IAS 32 and IAS 39 of cash flow hedge derivatives, themeasurements under revised IAS 19 “Employee Benefits”, the payment of the 2012 dividendand the change in minority interests.Equity at June 30, 2013 is higher than market capitalization. This is not caused by factors thatmight lead to the belief that the Group’s equity is not sustainable, but rather by thecircumstantial effect that is being experienced by the global economic system over the pastfew years.On June 27, 2013 A2A S.p.A. distributed a dividend of 0.026 euro per share.13) Share capital“Share capital” amounted to 1,629 million euro and consists of 3,132,905,277 ordinary shareseach of nominal value 0.52 euro.14) Treasury shares“Treasury shares”, which amounted to 61 million euro, unchanged compared to December 31,2012, consist of 26,917,609 own shares held by the parent company A2A S.p.A..

Half-yearly financial report at June 30, 2013Notes to the balance sheet15) ReservesMillions of euro Balance at Changes Balance at12 31 2012 in the period 06 30 2013Reserves 1,018 171 1,189of whichChanges in the fair value of cash flow hedge derivatives (23) (17) (40)Tax effect 7 6 13Cash flow hedge reserve (16) (11) (27)“Reserves”, which amounted to 1,189 million euro (1,018 million euro at December 31, 2012),consist of the legal reserve, extraordinary reserves and reserves arising on consolidation andthe retained earnings of subsidiaries.This item also includes the negative cash flow hedge reserve of 27 million euro which derivesfrom the measurement at period end of derivatives qualifying for hedge accounting.The balance also includes an amount of 20 million euro arising from the early adoption of IAS19 Revised “Employee Benefits” which requires actuarial profits and losses to be recognizeddirectly in an equity reserve.81“Other reserves” also include the effect of applying paragraph 23 of IAS 32 to the put optionsagreed between A2A S.p.A. and Società Elettrica Altoatesina S.p.A. (SEL) and the effectsarising from the “Framework Agreement” and “Exchange Agreement” entered into by theparent A2A S.p.A. and the financial shareholders of Edipower S.p.A. (Mediobanca, FondazioneCRT and Banca Popolare di Milano) and Dolomiti Energia S.p.A., based on the shares ofEdipower S.p.A.. As discussed in the section “Consolidation policies and procedures”, thedifference between the current exercise price for these put options and the carrying amountof the minority interests is deducted from Group equity (if positive) or added to Group equity(if negative). At June 30, 2013 the effects of the put options on Edipower S.p.A. shares led to areduction of equity of 3 million euro, being the difference between the carrying amount of theput options and minority interests.16) Net profit for the periodThis item consists of a profit of 133 million euro, representing the result for the period.

Half-yearly financial report at June 30, 2013Notes to the balance sheet17) Minority interestsMillions of euro Balance at Changes Balance at12 31 2012 in the period 06 30 2013Minority interests 851 11 862“Minority interests” amounted to 862 million euro (851 million euro at December 31, 2012) andrepresent the portion of capital, reserves and net profit pertaining to minority shareholders.The increase for the period of 11 million euro mainly relates to the allocation to minorities oftheir share of the result for the period of the EPCG Group.LIABILITIESNon-current liabilities18) Non-current financial liabilities82Millions of euro Balance at Changes in Balance at of which included in the NFP12 31 2012 the period 06 30 201312 31 2012 06 30 2013Non-convertible bonds 2,462 (740) 1,722 2,462 1,722Due to banks 1,704 (124) 1,580 1,704 1,580Due to other providers of finance 202 (1) 201 202 201Finance lease payables 3 - 3 3 3Total non-current financialliabilities 4,371 (865) 3,506 4,371 3,506“Non-current financial liabilities”, which amounted to 3,506 million euro (4,371 million euro atDecember 31, 2012), decreased by 865 million euro.More specifically, “Non-convertible bonds” regard three bonds issued by the Group asfollows:• a thirty-year bond in yen issued on August 10, 2006 bearing interest at a fixed rate of5.405% and having a carrying amount, measured at amortized cost, of 98 million euro;• a seven-year bond with a nominal value of 1,000 million euro issued on November 2, 2009bearing interest at a nominal fixed rate of 4.50%, which qualifies for fair value hedgeaccounting. As a result, this bond is measured at amortized cost adjusted by changes in thefair value of the underlying risk. Its value at June 30, 2013 was 829 million euro following thereclassification to “Current financial liabilities” of the portion of the debt bought back earlyand cancelled on July 11, 2013;• a seven-year bond having a nominal value of 750 million euro issued on November 28, 2012bearing interest at a fixed rate of 4.50% and having a carrying amount, measured atamortized cost, of 744 million euro at June 30, 2013.

Half-yearly financial report at June 30, 2013Notes to the balance sheetThe ten-year bond having a nominal value of 500 million euro issued on May 28, 2004 has beenreclassified to “Current financial liabilities”.The period end measurement of the non-convertible bonds at fair value and amortized costled to an increase of 2 million euro in “Non-current financial liabilities”.Interest of 51 million euro had accrued on the bonds at June 30, 2013.The various accounting treatments used for the bonds is the result of the different optionsselected during the stage of transition to IAS/IFRS by the companies merged on January 1,2008.Non-current amounts “Due to banks” decreased by 124 million euro over the period. This ismainly due to the voluntary repayment in the first quarter of 57 million euro of the debt ofEdipower S.p.A. and the reclassification of the portion falling due by the end of the next year to“Current financial liabilities”.The total of 201 million euro “Due to other providers of finance” is in line with the balance atDecember 31, 2012.“Finance lease payables” amounted to 3 million euro (3 million euro at December 31, 2012).8319) Employee benefitsThe balance on this item amounted to 321 million euro at June 30, 2013 (325 million euro atDecember 31, 2012), with changes as follows during the period:Millions of euro Balance at Accruals Utiliz- Other Balance at12 31 2012 ations changes 06 30 2013Employee leaving entitlement 168 13 (4) (11) 166Employee benefits 157 1 (5) 2 155Total employee benefits 325 14 (9) (9) 321Technical valuations were carried out on the basis of the following assumptions:06 30 2013 12 31 2012Discount rate 3.50% 3.50%Annual inflation rate 2.0% 2.0%

Half-yearly financial report at June 30, 2013Notes to the balance sheet20) Provisions for risks, charges and liabilities for landfillsMillions of euro Balance at Accruals Utiliz- Other Balance at12 31 2012 ations changes 06 30 2013Provisions for risks, charges andliabilities for landfills 611 13 (27) – 597These provisions totaled 597 million euro at June 30, 2013 (611 million euro at the previous yearend). Accruals had a net effect of 13 million euro, resulting from charges for the period of 31million euro less the release of provisions of 18 million euro recognized in previous years forcertain disputes that no longer subsist. The utilizations of 27 million euro mainly refer to theamount used for payments made during the period.84On the basis of Opinion no. 535/12 of the Electricity and Gas Authority (AEEG), whichcontained the proposal, for 2012 too, to tie the calculation of the gas CEC to movements in theprice of gas on the balancing market and to remove the component relating to the wholesalesales margin from the formula (CEC com) (on settlement and on account for the individualquarters), the Group recognized a provision of 22 million euro at December 31, 2012, with thecounter-entry reducing sales revenues.At June 30, 2013, recognition has been given to developments in the way in which the CIP6/92 conventions are regulated - namely the Decree of April 24, 2013 and Decree Law no. 69of June 21, 2013 (the called “Decreto del fare”). In particular, by way of the former,published in the Official Journal on May 18, 2013, the Minister for Economic Developmentquantified the CEC settlement for 2012 using the method established by the Decree ofNovember 20, 2012. The Ministry therefore decided not to apply the proposal of Opinionno. 535 of the AEEG to that year, and considered it more appropriate to use the definition ofthe settlement amounts for the CEC component for 2012 consistent with the methodpreviously in force, “without prejudice to the need to amend the means for carrying outrevisions (editor’s note: of the formula for calculating the CEC) from 2013, in order to takeaccounts of developments in the gas market”, given that “in respect of the means typicallyused by industrial operators for procuring and drawing up contracts for fuel, the firstavailable year to which amendments can be made appears to be 2013”, as “the new methodsproposed by the Authority for calculating the conventional average price of the fuel for thepurpose of calculating the CEC regard the balancing of the economic merit in the naturalgas market, which became fully operational, open to trade between users, in April 2012”.The government returned to the subject with Decree Law no. 69 of June 21, 2013 on “Urgentmeasures to boost the economy”, published in Official Journal no. 144 of June 21, 2013 -Ordinary Supplement no. 50, which introduced important provisions regarding thedetermination of the formula for calculating the CEC for 2013 and 2014.

Half-yearly financial report at June 30, 2013Notes to the balance sheetThe Ministry decided not to comply fully with the opinion of the AEEG in the case of thesetwo years either. The decree requires that for the conventional component relating to theprice of the fuel (CEC gas), the figure for the Avoided Fuel Cost which is to be recognized onaccount until the annual settlement balance has been set, should be calculated for 2013 onthe basis of the reference basket pursuant to Law no. 99 of July 23, 2009, where the weightof the oil products is gradually reduced in each quarter (set at eighty per cent in the firstquarter, seventy per cent in the second quarter and sixty per cent in the third and fourthquarters). For each quarter the complement to arrive at a hundred per cent is to bedetermined on the basis of the procurement cost of the natural gas on the wholesalemarkets as determined by Resolution no. 196/2013/R/gas of May 9, 2013 and by the otherprovisions of the Electricity and Gas Authority. By means of a provision to be adoptedwithin 60 days of the effective date of the legislation converting the decree into law on theproposal of the Electricity and Gas Authority, the means by which this amount is to beupdated shall be established, for on account and settlement payments, together with themeans of publishing the amounts identified in accordance with the criteria in paragraphs 4and 5. For 2013, the legislation confirms the current means by which the componentrelating to the wholesale marketing margin (CEC com) and the transport component (CECtrans) are calculated, as well as the specific consumption amounts pursuant to the Decreeof November 20, 2012.85As an exception to the above provisions, for waste to energy plants admitted to theframework pursuant to the CIP 6/1992 provision, which at the date on which the presentdecree becomes effective have been in use under the convention for a period of less than orequal to eight years (this includes the Acerra plant), the CEC shall be determined on thebasis of the reference basket pursuant to Law no. 99/2009, in which the weight of oilproducts is sixty per cent.Given the above legislative developments, at June 30, 2013 the Group released the provisionsit had recognized at December 31, 2012.Provisions for risks at June 30, 2013 also include the total cost of the business restructuringplan for the future exit of employees under the Redundancy scheme, amounting to 22 millioneuro. Further details of the business restructuring plan can be found in the section“Significant events during the period” of this Half-yearly financial report.

Half-yearly financial report at June 30, 2013Notes to the balance sheet21) Other non-current liabilitiesMillions of euro Balance at Changes in Balance at of which included in the NFP12 31 2012 the period 06 30 201312 31 2012 06 30 2013Other non-current liabilities 365 3 368 - -Non-current derivatives 48 (9) 39 48 39Total other non-current liabilities 413 (6) 407 48 39This item decreased by 6 million euro compared to December 31, 2012. “Other non-currentliabilities” increased by 3 million euro, due mainly to the change in payables to third partiesarising from the measurement of the put options on the Edipower S.p.A. shares, while “Noncurrentderivatives” decreased by 9 million euro principally as the result of measuringfinancial instruments at fair value.Current liabilities8622) Trade payables and other current liabilitiesMillions of euro Balance at Changes in Balance at of which included in the NFP12 31 2012 the period 06 30 201312 31 2012 06 30 2013Advances 7 (1) 6 - -Trade payables 1,325 (173) 1,152 - -Total trade payables 1,332 (174) 1,158 - -Payable to social securityinstitutions 42 1 43 - -Other current liabilities 434 178 612 - -Current derivatives 10 67 77 2 -Total other current liabilities 486 246 732 2 -Total trade payables and othercurrent liabilities 1,818 72 1,890 2 -“Trade payables and other current liabilities” amounted to 1,890 million euro (1,818 millioneuro at December 31, 2012), representing an overall increase of 72 million euro whichprincipally arises from a decrease in “Trade payables” offset by an increase in “Othercurrent liabilities”, “Current derivatives” and “Payable to social security institutions”.“Other current liabilities” mainly relate to amounts due to personnel, balances payable tothe Electricity Sector Equalization Fund and amounts due to the tax authorities for VAT andwithholding tax.

Half-yearly financial report at June 30, 2013Notes to the balance sheet23) Current financial liabilitiesMillions of euro Balance at Changes in Balance at of which included in the NFP12 31 2012 the period 06 30 201312 31 2012 06 30 2013Non-convertible bonds 518 771 1,289 518 1,289Due to banks 108 26 134 108 134Due to other providers of finance 26 2 28 26 28Finance lease payables 1 - 1 1 1Financial payables to related parties - - - - -Total current financial liabilities 653 799 1,452 653 1,452“Current financial liabilities” amounted to 1,452 million euro, compared to 653 million euro atDecember 31, 2012. This increase is mainly due to the reclassification from “Non-currentfinancial liabilities” of the ten-year 500 million euro bond issued on May 28, 2004 and the earlybuy-back and cancellation on July 11, 2013 of a part of the seven-year 1,000 million euro bondissued on November 2, 2009.More specifically, the item “Non-convertible bonds” consists of:• a ten-year 500 million euro bond issued on October 30, 2003 at a nominal fixed rate of4.875%; the fair value of this bond at June 30, 2013 was 510 million euro following theexercise of the fair value option on transition to IAS/IFRS;• a ten-year 500 million euro bond issued on May 28, 2004 at a nominal fixed rate of 4.875%,having a carrying amount of 499 million euro at June 30, 2013 at amortized cost;• an amount of 262 million euro being the portion of the seven-year 1,000 million euro bondissued on November 2, 2009 which was bought back early and cancelled.87Interest of 18 million euro had accrued on the bonds at June 30, 2013.24) Tax liabilitiesMillions of euro Balance at Changes Balance at12 31 2012 in the period 06 30 2013Tax liabilities 8 12 20“Tax liabilities” amounted to 20 million euro (8 million euro at December 31, 2012),representing a net increase of 12 million euro.

Half-yearly financial report at June 30, 2013Notes to the balance sheet25) Liabilities directly associated with non-current assets held for saleThis item had a balance of 52 million euro at June 30, 2013 (49 million euro at December 31,2012) and relates to a series of liabilities to be sold to Edipower S.p.A. which are associatedwith the corresponding assets described in note 12, to which reference should be made.88

Half-yearly financial report at June 30, 2013Net debt26) NET DEBT(pursuant to CONSOB Communication no. DEM/6064293 of July 28, 2006)The following table provides details of net debt.Millions of euro Note 06 30 2013 12 31 2012Bonds - non-current portion 18 1,722 2,462Bank loans - non-current portion 18 1,580 1,704Non-current amounts due to other providers of finance 18 201 202Finance leases - non-current portion 18 3 3Other non-current liabilities 21 39 48Total medium/long-term debt 3,545 4,419Non-current financial assets to related parties 3 (6) (5)Financial assets - non-current portion 3 (39) (39)Other non-current assets 5 (59) (70)Total medium/long-term financial assets (104) (114)Total non-current net debt 3,441 4,305Bonds - current portion 23 1,289 518Bank loans - current portion 23 134 108Current amounts due to other providers of finance 23 28 26Finance leases - current portion 23 1 1Other current liabilities 22 - 2Total short-term debt 1,452 655Other current financial assets 9 (77) (22)Current financial assets to related parties 9 (4) (5)Other current assets 8 (28) (8)Total short-term financial assets (109) (35)Cash and cash equivalents 11 (710) (553)Total current net debt 633 67Net debt 4,074 4,37289

Half-yearly financial report at June 30, 2013Notes to the income statementChanges in the consolidation scope compared to the six months endedJune 30, 201290The following changes have taken place in the consolidation scope for the six months endedJune 30, 2013 compared to the corresponding period of the previous year:• the shareholding in A2A Coriance S.a.s., the parent of the Coriance Group, was sold inSeptember 2012. In accordance with IFRS 5, the relative income statement items foroperating income and expense and the financial balance were reclassified to “Net resultfrom non-current assets sold or held for sale” in the six months ended June 30, 2012;• the shareholding in Metroweb S.p.A. has been sold; this was accounted for using the equitymethod in the corresponding period of the previous year.The results for the six months ended June 30, 2013 include the line-by-line consolidation ofEdipower S.p.A. for the whole period, but only for June in the six months ended June 30, 2012.As a result of these operations the figures in the income statement for the quarter ended June30, 2013 are not consistent with those for the six months ended June 30, 2012.27) RevenuesRevenues for the period totaled 2,845 million euro (3,290 million euro in the six months endedJune 30, 2012), of which 326 million euro, gross of intragroup eliminations, relates to theconsolidation of Edipower S.p.A., therefore decreasing by 445 million euro.Details of the more significant items of this balance are as follows:Revenues - Millions of euro 06 30 2013 06 30 2012Revenues from the sale of goods 2,284 2,817Revenues from services 453 408Revenues from long-term contracts 2 7Total revenues from the sale of goods and services 2,739 3,232Other operating income 106 58Total revenues 2,845 3,290

Half-yearly financial report at June 30, 2013Notes to the income statement“Revenues from the sale of goods and services” amounted in total to 2,739 million euro(3,232 million euro in the corresponding period of the previous year), of which 250 millioneuro relates to the consolidation of Edipower S.p.A., therefore decreasing by 493 millioneuro. This decrease is due to lower sales revenues of 533 million euro, an increase of 45million euro in service revenues and a decrease of 5 million euro in long-term contractrevenues.“Other operating income” amounted to 106 million euro, an increase of 48 million euro overthe same period of the previous year.Further details of the main items are as follows:Millions of euro 06 30 2013 06 30 2012Sale and distribution of electricity 1,499 1,544Sale and distribution of gas 584 1,059Sale of heat 120 106Sale of materials 1 1Water and utilities sold to civil customers 23 22Hedging gains on operating derivatives - -Hedging losses on operating derivatives - (1)Sales of emission certificates and allowances 40 70Connection contributions 17 16Total revenues from the sale of goods 2,284 2,817Services to customers 453 408Total revenues from services 453 408Revenues from long-term contracts 2 7Total revenues from the sale of goods and services 2,739 3,232Other operating income 106 58Total revenues 2,845 3,29091Revenues include the effect of 22 million euro resulting from the Decree of the Ministry forEconomic Development of April 24, 2013, which in quantifying the CEC settlement balance for2012 took the position of not applying Opinion no. 535 of the Electricity and Gas Authority(AEEG) for that year, as discussed in the note to the item “Provisions for risks, charges andliabilities for landfills” to which reference should be made.28) Operating expenses“Operating expenses” amounted to 1,887 million euro (2,517 million euro in thecorresponding period of the previous year), of which 156 million euro relating to theconsolidation of Edipower S.p.A., gross of intragroup eliminations, therefore decreasing by630 million euro.

Half-yearly financial report at June 30, 2013Notes to the income statementThe main components of this item are as follows:Operating expenses - Millions of euro 06 30 2013 06 30 2012Raw materials and consumables 1,376 2,003Service costs 399 381Total expenses for raw materials and services 1,775 2,384Other operating expenses 112 133Total operating expenses 1,887 2,517“Total expenses for raw materials and services” amounted to 1,775 million euro (2,384 millioneuro in the six months ended June 30, 2012), of which 134 million euro relating to theconsolidation of Edipower S.p.A., therefore decreasing by 609 million euro.92This decrease is due to the combined effect of the following factors:• a reduction of 681 million euro in the purchase of raw materials and consumables, due to adecrease in costs for the purchase of power and fuel of 687 million euro, a decrease in thecosts relating to the purchase of emission certificates and allowances of 2 million euro, anincrease in the purchase of materials of 7 million euro and a net increase of 1 million euroarising from hedging gains and losses on operating derivatives;• an increase of 18 million euro in costs for delivery, subcontracted work and services;• a negative change of 54 million euro in stocks of fuels and materials.The following table sets out details of the more significant components:Millions of euro 06 30 2013 06 30 2012Purchases of power and fuel 1,201 1,888Purchases of materials 41 34Purchases of water 2 2Hedging losses on operating derivatives 2 3Hedging gains on operating derivatives (5) (7)Purchases of emission certificates and allowances 34 36Total expenses for raw materials and consumables 1,275 1,956Electricity delivery, subcontracted work and services 399 381Total service costs 399 381Change in inventories of fuel and materials 101 47Total expenses for raw materials and services 1,775 2,384Other operating expenses 112 133Total operating expenses 1,887 2,517

Half-yearly financial report at June 30, 2013Notes to the income statementTrading marginThe following table sets out the results arising from the trading portfolio; these figures relateto trading in electricity, gas and environmental certificates.Millions of euro Note 06 30 2013 06 30 2012Trading marginRevenues 27 832 613Operating expenses 28 (824) (618)Total trading margin 8 (5)29) Labour costsNet of capitalized costs, labour costs in the six months ended June 30, 2013 amounted to 348million euro (289 million euro in the six months ended June 30, 2012).“Labour costs” may be analyzed as follows:Labour costs - Millions of euro 06 30 2013 06 30 201293Wages and salaries 216 191Social security charges 80 71Employee leaving entitlement (TFR) 14 12Other costs 38 15Total labour costs 348 289The A2A Group had an average workforce of 12,604 people during the six months ended June30, 2013, of whom 995 joined by way of the consolidation of Edipower S.p.A..Labour costs for the six months ended June 30, 2013 include the total cost of the businessrestructuring plan for the future exit of employees under the Redundancy scheme, amountingto 22 million euro. This plan will reach the peak of its effectiveness in the two-year period 2013-2014. Further details of the business restructuring plan can be found in the section“Significant events during the period” of this Half-yearly financial report.30) Gross operating incomeAs a result of the above movements, consolidated “Gross operating income” for the six monthsended June 30, 2013 amounted to 610 million euro (484 million euro for the six months endedJune 30, 2012), of which 125 million euro arising from the consolidation of Edipower S.p.A..Further details may be found in the section “Results sector by sector”.

Half-yearly financial report at June 30, 2013Notes to the income statement31) Depreciation, amortization, provisions and write-downs“Depreciation, amortization provisions and write-downs” totaled 280 million euro in the six monthsended June 30, 2013 (204 million euro in the six months ended June, 2012), of which 89 million eurorelates to the consolidation of Edipower S.p.A., representing an increase of 76 million euro.The following table provides details of the individual items:Depreciation, amortization, provisions and write-downs -Millions of euro 06 30 2013 06 30 2012Amortization of intangible assets 31 33Depreciation of tangible assets 210 160Total depreciation and amortization 241 193Provisions for risks and charges 13 2Bad debt provision (receivables recognized as current assets) 24 9Other write-downs of fixed assets 2Total depreciation, amortization, provisions and write-downs 280 20494“Depreciation and amortization” totaled 241 million euro (193 million euro in the correspondingperiod of the previous year), a rise of 48 million euro, mainly due to the increase in depreciationand amortization resulting from the consolidation of Edipower S.p.A..Regarding the transposition of the “Growth Decree” which lays down procedures forcalculating the surrender value of the water system works used to supply water underconcession to hydroelectric power plants (the “wet works”), the calculation criteria(revaluation coefficients and useful lives) needed to quantify the surrender value at the endof the relative concessions have not been set yet by the relevant authorities. In the absenceof a regulatory framework, the A2A Group has carried out a series of simulations using ISTATcoefficients, which were found to be the only possible data available, and its own estimatesof the economic and technical lives of the assets. The results of these simulations led to avery wide variability range, confirming that it is currently impossible to make a reliableestimate of the surrender values at the end of a concessions. Nevertheless, the net carryingamount of the wet works for which the concession is close to expiry was significantly lowerthan the range of results obtained. As a result, therefore, since June 30, 2012 depreciationand amortization is no longer charged only for those concessions nearing expiry, while thesame valuation methods continue to be applied to the remaining concessions.“Provisions for risks and charges” amounted to 13 million euro (2 million euro in the sixmonths ended June 30, 2012) and relate to the provisions made in the period for disputes incourse and pending litigation.The “Bad debt provision” amounted to 24 million euro (9 million euro in the six months endedJune 30, 2012), consisting of the accrual for the period. In the corresponding period of theprevious year this item included the release of previously accrued provisions of a significant

Half-yearly financial report at June 30, 2013Notes to the income statementamount due to the fact that the collectibility risk for certain customer receivables for which aprovision had been made in previous years no longer existed.“Other write-downs of fixed assets” amounted to 2 million euro (nil in the six months ended June30, 2012) and arose mainly from adjustments made by Edipower S.p.A. and the Ecodeco Group.32) Net operating income“Net operating income” amounted to 330 million euro (280 million euro in the six monthsended June 30, 2012).33) Financial balanceThe “Financial balance” closed with net expense of 81 million euro (net expense of 68 millioneuro in the six months ended June 30, 2012).Details of the more significant items are as follows:Financial balance - Millions of euro 06 30 2013 06 30 201295Financial income 30 42Financial expense (118) (126)Affiliates 7 16TOTAL FINANCIAL BALANCE (81) (68)“Financial income” amounted to 30 million euro, a decrease over the six months ended June30, 2012. This item includes the positive effect of measuring derivative contracts at fair value,while in the corresponding period of the previous year it included the benefit (negativegoodwill) of 18 million euro arising from the first-time consolidation of Edipower S.p.A..“Financial expense”, which amounted to 118 million euro, decreased by 8 million euro over thesix months ended June 30, 2012, and may be analyzed as follows:• expenses of 3 million euro arising from derivatives (40 million euro in the six months endedJune 30, 2012);• expenses of 115 million euro from financial liabilities (86 million euro in the six monthsended June 30, 2012), of which 26 million euro relating to the consolidation of EdipowerS.p.A., detailed as follows:Expenses from financial liabilities - Millions of euro 06 30 2013 06 30 2012Interest on bond loans 68 51Interest charged by banks 32 25Interest on Cassa Depositi e Prestiti loans 2 4Other financial expense 13 6Total expenses from financial liabilities 115 86

Half-yearly financial report at June 30, 2013Notes to the income statementIncome of 7 million euro arose from the “Affiliates” (income of 16 million euro in the sixmonths ended June 30, 2012).34) Other non-operating income/expensesThe item “Other non-operating income/expenses” consisted of net expense of 3 million euro(nil in the six months ended June 30, 2012), all relating to the EPCG Group.35) Income taxesIncome taxes - Millions of euro 06 30 2013 06 30 2012Current taxes 83 84Deferred tax assets 42 23Deferred tax liabilities (31) (13)Total income taxes 94 9496“Income taxes” for the period amounted to 94 million euro (94 million euro in the six monthsended June 30, 2012).36) Net result from non-current assets sold or held for saleThere was a nil balance on this item for the six months ended June 30, 2013, while income of 13million euro was recognized in the six months ended June 30, 2012, representing thecontribution resulting from the sale of the shareholding in e-Utile S.p.A and the results for theperiod of the Coriance Group.37) Group net profit for the period“Group net profit for the period”, stated after attributing a profit of 19 million euro to minorityinterests (a profit of 6 million euro attributed to minority interests in the six months endedJune 30, 2012), amounted to 133 million euro (125 million euro in the six months ended June 30,2012).

Half-yearly financial report at June 30, 2013Notes to the income statementEarnings per share38) Earnings per share01 01 2013 01 01 201206 30 2013 06 30 2012Earnings (loss) per share (euro)– basic 0.0428 0.0401– basic, from continuing operations 0.0428 0.0361– basic, from assets held for sale 0.0000 0.0041– diluted 0.0428 0.0401– diluted from continuing operations 0.0428 0.0361– diluted from assets held for sale 0.0000 0.0041Weighted average number of outstanding shares for the calculationof earnings (loss) per share– basic 3,105,987,497 3,105,987,497– diluted 3,105,987,497 3,105,987,49797

Half-yearly financial report at June 30, 2013Note on relatedparty transactions39) Note on related party transactionsThe definition of “related parties” is included in the international accounting standarddescribing the disclosures which must be made for related party transactions in financialstatements (revised IAS 24).98Transactions with Parent companies and their subsidiariesOn October 5, 2007, the Municipalities of Milan and Brescia signed a shareholders’ agreement toregulate the ownership structure and governance of A2A S.p.A.; this gave the Municipalities jointcontrol over the company by means of a dual system of administration and control.The merger took effect from January 1, 2008, and irrespective of the legal structure adopted,resulted in a joint venture under the joint control of the Municipality of Brescia and theMunicipality of Milan, which hold 27.5% each.Dealings between A2A Group companies and the Municipalities of Milan and Brescia are ofa commercial nature, involving the supply of electricity, gas, heat and water andmanagement of the public illumination and traffic light systems, management of waterpurification and sewage plants, public refuse collection and road sweeping, as well asvideo surveillance systems.Likewise, the A2A Group has commercial relations with the companies controlled by Milanand Brescia city councils, such as Metropolitana Milanese S.p.A., ATM S.p.A., BresciaMobilità S.p.A., Brescia Trasporti S.p.A. and Centrale del Latte di Brescia S.p.A., supplyingthem with electrical energy, gas, heat, sewerage and purification services at the samemarket tariffs appropriate to the terms of the supply, and providing services as requestedby these companies. It is emphasized that these companies are considered related partiesin the summary schedules prepared in accordance with Consob Resolution no. 17221 ofMarch 12, 2010.

Half-yearly financial report at June 30, 2013Dealings between the Municipalities of Milan and Brescia and the A2A Group relate to publicillumination and traffic light services and the management and distribution of electricity, gasand heat, as well as sewer management and water purification, which are governed by specialagreements and specific contracts.All transactions with entities controlled by the Municipalities of Milan and Brescia, relating tothe supply of electricity, are handled at normal market conditions.On May 27, 2011, AMSA S.p.A., an A2A S.p.A. subsidiary, signed an extension to the contract toprovide waste collection, road cleaning, waste disposal and special services for a fee of 711million euro, VAT included, for the period from January 1, 2011 to June 30, 2013; the contractterm has since been extended to December 31, 2013.Transactions with subsidiaries and associatesThe parent A2A S.p.A. provides centralized treasury services for all of its subsidiaries.Intragroup transactions are regulated through current accounts between the parentcompany and the subsidiaries; these balances bear interest at the 3-month Euribor rateincreased for the creditor positions (of A2A S.p.A.) or reduced for the debtor positions by amargin in line with that applied by the financial market.99In 2013, A2A S.p.A. and its subsidiaries again filed their VAT return on a group basis. For IRESpurposes, A2A S.p.A. files for tax on a consolidated basis, together with its main subsidiaries, inaccordance with articles 117-129 of DPR no. 917/86. To this end, a contract has been stipulatedwith each of the subsidiaries involved in the Group tax return to regulate the tax benefits andburdens transferred, with specific reference to current items. These contracts also governthe transfer of any excess gross operating income as provided in applicable legislation.A2A S.p.A signed a tax transparency agreement with an associate company, with effect from2010.The parent company provides subsidiaries and associates with administrative, tax, legal,managerial and technical services, in order to optimize the resources available within thecompany and to make the best use of existing know-how in the most economical way possible.These services are governed by specific service contracts stipulated annually. A2A S.p.A. alsomakes office space and operating areas at its own premises available to subsidiaries andassociates, as well as associated services. These are provided at market conditions.The parent company provides a power generation service to A2A Trading S.r.l. in exchange for amonthly fee based on the effective availability of the thermoelectric and hydroelectric plants.

Half-yearly financial report at June 30, 2013Note on related party transactionsTelecommunication services are provided by the subsidiary Selene S.p.A..Finally, in accordance with the Consob communication issued on September 24, 2010 layingdown regulations for transactions with related parties within the meaning of ConsobResolution no. 17221 of March 12, 2010 as amended on November 11, 2010, after receiving thepositive opinion of the Internal Control Committee the A2A S.p.A Management Boardapproved a procedure to regulate activities with related parties which took effect on January1, 2011; the purpose of this procedure is to assure the transparency and material andprocedural propriety of operations with related parties undertaken by A2A S.p.A., eitherdirectly or indirectly via subsidiaries, as defined by revised IAS 24.Summaries of balances and transactions with related parties are set out in the following tablespursuant to Consob Resolution no. 17221 of March 12, 2010:100Balance Sheet Total of which with related parties06 30 2013 Associa- Related Municipa- Subsidia- Municipa- Subsidia- Related Total % effectMillions of euro ted compa- lity ries lity ries indivi- related on thecompa- nies of Milan Municipa- of Brescia Municipa- duals parties balancenies lity lity sheetof Milan of Brescia itemTOTAL ASSETS OF WHICH: 11,997 189 64 124 7 12 1 _ 397 3.3%Non-current assets 8,226 183 37 3 223 2.7%Shareholdings 217 183 34 217 100.0%Other non-current financialassets 54 3 3 6 11.1%Current assets 3,425 6 27 124 7 9 1 174 5.1%Trade receivables 1,849 3 27 124 7 9 1 171 9.2%Current financial assets 81 3 3 3.7%TOTAL LIABILITIESOF WHICH: 8,193 8 21 9 1 9 _ 1 49 0.6%Non-current liabilities 4,831 1 1 0.0%Provisions for risks and charges 597 1 1 0.2%Current liabilities 3,362 8 20 9 1 9 1 48 1.4%Trade payables 1,158 20 9 1 9 39 3.4%Other current liabilities 732 8 1 9 1.2%

Half-yearly financial report at June 30, 2013Note on related party transactionsIncome Statement Total of which with related parties06 30 2013 Associa- Related Municipa- Subsidia- Municipa- Subsidia- Related Total % effectMillions of euro ted compa- lity ries lity ries indivi- related on thecompa- nies of Milan Municipa- of Brescia Municipa- duals parties balancenies lity lity sheetof Milan of Brescia itemREVENUES 2,845 1 31 182 28 16 1 - 259 9.1%Revenues from the sale of goodsand services 2,739 1 31 182 28 16 1 259 9.5%Other operating income 106 - 0.0%OPERATING EXPENSES 1,887 - 20 1 2 3 - - 26 1.4%Expenses for raw materials andservices 1,775 20 2 22 1.2%Other operating expenses 112 1 3 4 3.6%LABOUR COSTS 348 - - - - - - 2 2 0.6%DEPRECIATION,AMORTIZATION ANDWRITE-DOWNS 280 - - - - - - - - 0.0%FINANCIAL BALANCE (81) 10 - - - 3 - - 13 (16.0%)Financial income 30 3 3 6 20.0%Financial expense (118) - 0.0%Affiliates 7 7 7 100.0%101The complete financial statements are included in the section “Consolidated financialstatements” of this report pursuant to Consob Resolution no. 17221 of March 12, 2010.

Half-yearly financial report at June 30, 2013Note on related party transactionsSignificant non-recurring eventsand transactions40) Consob Communication no. Dem/6064293 July 28, 2006As a non- recurring transaction, during the half year the Group recognized the total cost forthe exit of employees under the redundancy schemes in connection with the businessrestructuring plan. Further details of the business restructuring plan may be found in thesection “Significant events during the period” of this Half-yearly financial report.102

Half-yearly financial report at June 30, 2013Guarantees and commitmentswith third partiesMillions of euro 06 30 2013 12 31 2012Guarantee deposits received 555 552Guarantees given 1,460 1,485Guarantee deposits receivedGuarantees deposited by subcontractors and performance bonds issued by insurancecompanies amount to 555 million euro (552 million euro at December 31, 2012).103Guarantees and commitments with third partiesThese amount to 1,460 million euro (1,485 million euro at December 31, 2012) and relate tosureties issued and guarantee deposits given as security for commitments made to thirdparties.Collateral pledgedThe shareholdings in Edipower S.p.A. have been pledged to the financing banks.Group companies hold third party assets, relating mainly to the integrated water cycle, underconcession amounting to 66 million euro.

Half-yearly financial report at June 30, 2013Other information1) Significant events for the Group after June 30, 2013Reference should be made to the specific section of this Half-yearly financial report for adescription of subsequent events.2) Information on treasury shares104At June 30, 2013 A2A S.p.A. held 26,917,609 treasury shares, being 0.859% of share capitalwhich consists of 3,132,905,277 shares, unchanged from the end of the previous year. At June30, 2013 no treasury shares were held through subsidiaries, finance companies or nominees.3) Information on non-current assets held for sale and discontinuedoperations (IFRS 5)“Non-current assets held for sale” and “Liabilities directly associated with non-currentassets held for sale” at June 30, 2013 arise from the reclassification of a number of assets ofEdipower S.p.A. and the liabilities associated with them as the result of the agreementsentered into by the A2A Group and the Iren Group on May 21, 2012. On January 17, 2013 IrenS.p.A. announced the intention of the Iren Group to relinquish its shareholding in EdipowerS.p.A.. More specifically, Iren S.p.A. made the request to carry out a non-proportional spinoffof Edipower S.p.A. with the assignment to Iren S.p.A. and Iren Energia S.p.A. of a groupof thermoelectric and hydroelectric generation assets having a value effectively equal tothe shareholding of Iren S.p.A. and Iren Energia S.p.A. in Edipower S.p.A.. Thethermoelectric generation assets relate to the Turbigo power plant, while the hydroelectricgeneration assets are those of the Tusciano bundle. In accordance with IFRS 5, the assetsand liabilities of Turbigo and Tusciano are presented in two specific line items of the balancesheet at June 30, 2013: “Non-current assets held for sale” and “Liabilities directlyassociated with non-current assets held for sale”.

Half-yearly financial report at June 30, 2013Other informationThe item “Non-current assets held for sale” also contains the reclassification of five smallflowing water hydroelectric plants following the agreement reached with the BKW groupwhich was finalized in July 2013, as discussed in further detail in the section “Significant eventsfor the Group after June 30, 2013”.There was no requirement for the reclassified balances in either of the above transactions to bewritten down.Summarized figures relating to these assets and liabilities are as follows.Figures at June 30, 2013Millions of euro Assets Assets TotalEdipower A2A S.p.A.S.p.A.Assets and liabilities held for saleNon-current assets 318 15 333Current assets 13 13Total assets 331 15 346Non-current liabilities 50 50Current liabilities 2 2Total liabilities 52 – 521054) Disclosures for IFRS 13 and IFRS 7The following information required by IFRS 13 and IFRS 7 is provided in accordance with IAS34 Revised.IFRS requires specific disclosures to be made about fair value, a part of which replace thedisclosure requirements of other standards, including IFRS 7 “Financial Instruments:Disclosures”, and certain of this information is specifically required for financial instrumentsby IAS 34.16(j) and accordingly has an effect of the Half-yearly financial report.The following table provides a classification of financial instruments measured at fair valuecarried out on the basis of the quality of the sources of the inputs used in determining fair value:• level 1: financial assets/liabilities whose fair value is determined on the basis of unadjustedquoted prices on active markets, either official or over the counter, for identical assets andliabilities, are classified within this level;• level 2: financial assets/liabilities whose fair value is determined on the basis of inputs otherthan quoted prices included within level 1 that are observable for the asset/liability, eitherdirectly or indirectly on the market, are classified within this level;

Half-yearly financial report at June 30, 2013Other information• level 3: financial assets/liabilities whose fair value is determined on the basis ofunobservable market data are classified within this level. Instruments valued on the basisof internal estimates carried out using propriety methods on the basis of best practice inthe sector form part of this category.The following table provides an analysis of the assets and liabilities included within the variouslevels, showing the fair value of financial instruments at June 30, 2013:Millions of euro Note Level 1 Level 2 Level 3 Total106Available-for-sale assets measured at fair value 3 – 9 – 9Other non-current assets 5 – – 59 59Other current assets 8 64 2 35 101TOTAL ASSETS 64 11 94 169Non-current financial liabilities 18 – 858 – 858Other non-current liabilities 21 – – 39 39Current financial liabilities 23 526 261 – 787Other current liabilities 22 83 1 (7) 77TOTAL LIABILITIES 609 1,120 32 1,761For comparative purposes reference should be made to the same table reported in thesection “Other information” of the consolidated financial statements for the year endedDecember 31, 2012.No transfers were made between the various levels in the six months ended June 30, 2013 andno changes were made with respect to the calculation method used to measure theinstruments in question.The measurement of fair value by taking account of counterparty risk did not lead tosignificant differences compared to a “risk free” fair value measurement.The discount rate used to assess counterparty risk was determined on the basis of thecreditworthiness of each counterparty. Fair value falls if the overall discount rate (lowercreditworthiness) is increased.The A2A Group has a team dedicated to measuring financial instruments, in particular thoseclassified within level 3. The team reports directly to the head of Planning, Finance and Controlat least once a quarter during the regular closing of the accounts.

Half-yearly financial report at June 30, 2013Other informationTo complete the requested analysis, the types of financial instrument included in each item ofthe financial statements are set out in the following, together with the measurement criteriaused and, in the case of financial instruments measured at fair value, where changes in fairvalue are recognized (income statement or shareholders’ equity).The last column provides the fair value at June 30, 2013 of the financial instrument whereapplicable.Millions of euroCriteria used to measure financial instruments in the financial statementsNote Financial instruments Financial Unlisted Amount Fair value atmeasured at fair instruments share/ as stated 06 30 2013value with changes measured holdings in the (*)recognized in: at securities consoliamortizedconvertible datedIncome Shareholders’ cost into unlisted balancestatement equity share- sheet atholdings 06 30 2013measuredat cost(1) (2) (3) (4) (5)ASSETSOther non-current financial assets:Shareholdings / securities convertible intoshareholdings available for sale of which:-unlisted 9 9 n.a.-listed – –Financial assets held to maturity – –Other non-current financial assets 45 45 45Total other non-current financial assets 3 54Other non-current assets 5 59 20 79 79Trade receivables 7 1,849 1,849 1,849Other current assets 8 95 6 372 473 473Current financial assets 9 81 81 81Cash and cash equivalents 11 710 710 710Assets held for sale 12 346 346 n.a.LIABILITIESFinancial liabilitiesNon-current and current bonds 18 and 23 1,646 1,365 3,011 3,011Other non-current and current financial liabilities 18 and 23 1,947 1,947 1,947Other non-current liabilities 21 16 23 368 407 407Trade payables 22 1,158 1,158 1,158Other current liabilities 22 53 24 655 732 732(*) Fair value has not been calculated for assets and liabilities relating to derivatives and loans as the corresponding carrying amountis a close approximation to this.(1) Financial assets and liabilities measured at fair value with differences in fair value recognized in profit and loss.(2) Cash flow hedges.(3) Available-for-sale financial assets measured at fair value with gains/losses recognized in equity.(4) Loans and receivables and financial liabilities measured at amortized cost.(5) Available-for-sale financial assets consisting of unlisted shareholdings for which fair value cannot be reliably measured are measuredat cost less any impairment losses.107

Half-yearly financial report at June 30, 2013Other information4) Update of the main legal and fiscal disputes pendingAdequate provisions are provided where necessary for the disputes and litigation describedbelow.EU infringement procedureOn June 5, 2002, the European Commission published Decision no. 2003/193/EC stating that thethree-year exemption from income tax (under article 3.70 of Law no. 549/95 and article 66.14 ofDecree Law no. 331/1993, converted into Law no. 427/93) and the advantages deriving from loansgranted pursuant to article 9-bis of Decree no. 318/1986, converted into Law no. 488/96, to publicmajority-owned companies formed under Law no. 142/90 were incompatible with EC law, sincethey are deemed to represent State aid which is prohibited under article 87.1 of the EC Treaty. TheCommission did not however consider the tax exemption on contributions of businesses underarticle 3.69 of Law no. 549/95 to be State aid.108This decision was notified on June 7, 2002 to the Italian State, which appealed against this tothe Court of Justice. Subsequently, by order of the Court of Justice dated June 8, 2004, thecase was transferred to the Court of First Instance with reference number T-222/04, followingthe expansion of that court’s functions by the Treaty of Nice.In July 2002, the Commission communicated the decision to the companies concerned, whichappealed against this to the Court of First Instance of the European Community on September30, 2002, pursuant to article 230.4 of the EC Treaty. Further appeals against this decision havealso been filed by other public sector commercial companies and by Confservizi.The Italian State did not ask the Court of Justice to suspend execution of the Commission’sJune 2002 decision so as not to prejudice the resolution of merit in the event of a refusal. Infact, it is rare for the Court to concede a stay of execution, above all in matters regardingState aid.The decision is therefore fully effective and binding on the Italian State, which is obliged torecover the aid granted.On the invitation of the Commission and while continuing to pursue action to overturn thedecision, the Italian State therefore activated a recovery procedure. This process involved thepreparation of a survey questionnaire to identify the public sector commercial companiesthat have benefited from the above tax exemption and from loans granted by the stateinvestment bank Cassa Depositi e Prestiti in the years under consideration.The Italian State’s recovery initiatives continued with the predisposition of an amendment toEC law, which was approved by the Senate on April 13, 2005 (article 27, Law no. 62 of April 18,

Half-yearly financial report at June 30, 2013Other information2005). The measure envisages detailed recovery procedures based on ordinary tax rules toadjust any recovery to the effective existence of recoverable aid (considering the specificcircumstances of each position and bearing in mind any outstanding disputes with the taxauthorities). In particular, this measure envisaged certain declarations on the part of thetaxpayer and presumed certain official acts specifying the application methods and guidelinesfor a correct evaluation of cases of non-application. The guidelines were then amended tomake them more precise by article 1.133 of Law no. 266 of March 23, 2006 (Finance Law 2006).Subsequently, following Italy’s condemnation by the Court of Justice for the delay inrecovering the “aid” (Sentence June 1, 2006, case C – 207/05), Decree Law no. 10 of February15, 2007 (converted into Law no. 46 of April 6, 2007) made further amendments to the existingrecovery procedures.In this connection, new instructions were issued for the implementation of EuropeanCommission Decision no. 2003/193/EC with a view to recovering the alleged aid equivalent tothe unpaid taxes and related interest resulting from the application of the tax exemptionregime envisaged in article 3.70 of Law no. 549 of December 28, 1995 and article 66.14 ofDecree Law no. 331 of August 30, 1993, converted with amendments into Law no. 427 ofOctober 29, 1993.109In the first half of 2007 the Tax Revenue Office sent notices to AEM S.p.A. and ASM S.p.A. -pursuant to Decree no. 10/2007 - in the form of a “communication-injunction” concerning thealleged State aid enjoyed during the moratorium period.On April 30, 2009, the Tax Revenue Office notified five further assessments in connection withthe position of the former AEM S.p.A. and the former ASM S.p.A. pursuant to article 27, DecreeLaw no. 185 of November 29, 2008, as converted with amendments into Law no. 2 of January28, 2009, for approximately 64 million euro including interest.Decree no. 135 of September 25, 2009 (article 19) introduced new instructions regarding therecovery of the aid mentioned, essentially involving (i) the possible notification of furtherrepayment assessments and (ii) the irrelevance for recovery purposes of any realized capitalgains. As a result, on October 2, 2009 the company received six further assessments from thecompetent offices for the recovery of amounts additional to those already claimed totalingapproximately 220 million euro.On this basis, the Tax Revenue Office activated the recovery procedure by means of a fiscaltype assessment without offering any possibility to defer or suspend payment.On the merits, the guidelines for recovery can be found in Day Order no. 901972/071 of theChamber of Deputies, which was approved at the sitting of January 14, 2009. In the guidelines

Half-yearly financial report at June 30, 2013Other informationit is explained that the recovery “cannot take the form of a simple tax assessment without anyspecific criteria; instead, it has to determine if and how much aid has to be recovered,clarifying in particular that it is recoverable only if actually enjoyed and verifying case by casewhether the companies have actually made use of illegitimate State aid that has altered theprinciples of free competition and a company’s freedom of establishment”. In line with thisconcept, “those resources that have already been involved in forms of reimbursement” mustbe considered “excluded from the recovery measure”.In exercising the powers granted the Tax Revenue Office should therefore have identified, inthe specific circumstances, the actual enjoyment of illegitimate State aid that has not alreadybeen reimbursed.110Given that the lawsuits involving the merging company AEM S.p.A. (now A2A S.p.A.) and themerged company ASM S.p.A. are the subject of separate proceedings at the Court of FirstInstance of the European Community and have different positioning in relation to the“communication-injunction” and the assessments, the two situations are explainedseparately below for the sake of clarity.Former AEM S.p.A. (now A2A S.p.A.)In the action promoted by AEM S.p.A., on January 6, 2003 the Commission filed an objectionclaiming that it could not accept the appeal. AEM promptly replied before the legal deadline.The Court arranged the meeting concerning the objection claiming that it could not acceptthe appeal on its merit by order dated August 5, 2005. On March 15, 2006, AEM filed a brief inrelation to the judgment pending before the Court of First Instance. On February 28, 2008, theCourt of First Instance communicated to AEM its intention to combine (only for the oralphase) the various lawsuits being brought by AEM S.p.A, Confservizi, other public sectorcommercial companies and the Italian State, asking for the opinions of the parties concerned.On March 6, 2008, AEM S.p.A. communicated to the Court that it would welcome a move tocombine the various lawsuits and, apparently, the other appellants also responded in the sameway. The final hearing was held on April 16, 2008, and by a ruling dated June 11, 2009 the Court ofFirst Instance declared that the appeal filed by AEM S.p.A. was admissible but rejected it on merit- as for those filed by the other appellants - taking the view that the measure in questionconstituted State aid that was prohibited under article 87.1 of the EC Treaty, therefore confirmingthe decision of the Commission. AEM S.p.A. challenged this sentence on a timely basis before theEuropean Court of Justice. With Sentence C 320/09 P published on December 21, 2011 theEuropean Court of Justice turned down the appeal made by A2A S.p.A. (a similar rejection wasmade of the parallel appeals filed by other former municipal companies).

Half-yearly financial report at June 30, 2013Other informationWith reference to article 27 of Law no. 62 of April 18, 2005, AEM S.p.A. has carefully compliedwith the obligations placed on the former municipal utilities that are contained in the abovementionedrecovery regulations and related enabling instructions.For completeness, it should be noted that on October 27, 2005 the Tax Revenue Office visitedthe head office of AEM S.p.A. to acquire the accounting documentation necessary to check thecorrectness of the figures declared in the tax returns filed in accordance with article 27 of Lawno. 62. The visit was merely to ascertain and finalize the amount of any taxes that were to bereimbursed. AEM S.p.A. provided the inspectors with an ample statement as to how the taxreturns had been compiled. Even if all possible forms of legal protection failed, it was deemedreasonable to assume that the Italian government’s recovery actions would have involvedrevoking the benefits granted in different ways, depending on the public service sectorsconcerned. In particular, it was assumed that such action would have taken account of theactual degree of competition during the effective period of the measures being contestedand, therefore, of the extent to which it may have been distorted.In this regard, the appeal made by AEM S.p.A. explained that during the 1996-1999 periodexamined by the Commission the company operated in sectors such as electricity and gas thatwere not opened up to competition and in which AEM S.p.A. did not take part in any tendersfor the provision of the related services (an observation that was subsequently repeated tothe Court of Justice).111In the light of the uncertainty regarding the outcome of the appeals and the ways in which theCommission’s decisions would be applied, the company believed it possible, but not probable,that it risks having to return all of the aid received if the result of the entire appeal procedureturns out to be negative: consequently, no provisions were made for this matter in any of itsfinancial statements up to December 31, 2006. This decision took account of objectiveuncertainties as to the possibility of making a sufficiently reasonable estimate of the chargesthat would be borne by AEM S.p.A. as a consequence of the above decision.Lastly, the majority of the profits distributed by AEM S.p.A. during the tax moratorium periodwere paid to the Municipality of Milan, which is part of the Public Administration. AEM S.p.A.did not receive any assisted loans from Cassa Depositi e Prestiti under the laws mentionedduring the period considered by the Commission.On March 30, 2007, the Milan Tax Revenue Office notified four assessments, or“communication-injunctions” under Decree Law no. 10/2007 – relating to the alleged aid usedduring the periods 1996, 1997, 1998 and 1999.The amounts requested in these assessments, totaling 4.8 million euro inclusive of interest,were based on the company’s return filed in July 2005, except for the disallowance of theeffect of applying the so-called “tombstone” tax amnesty under Law no. 289/2002.

Half-yearly financial report at June 30, 2013Other informationPursuant to Decree Law no. 10/2007 the amounts established but not paid over are subject toforcible collection via inclusion on the tax roll; the rules do not permit any extended paymentterms or suspensions, not even in the event of appeal.Having taken note of these communications, considered Decree Law no. 10/2007 and relatedconversion law and checked that the amounts requested agree with those originally declared,the company decided on April 27, 2007 to pay the amounts requested.As a result of the above, the amounts paid were included in the 2007 accounts under“Financial expenses” and “Other non-operating expenses”.The company prudently decided to appeal against these communication-injunctions to thecompetent tax jurisdiction. The Provincial Tax Commission of Milan - Section 21 rejected theseappeals in ruling no. 8 of January 25, 2008 and the relative sentence that establishes theamount of the recoverable aid is now definitive.112On April 30, 2009, the Tax Authorities notified three assessments, issued under article 24 ofDecree no. 185/2008, for the recovery of alleged State aid that conflicts with EC legislation andthe earlier decision of the European Commission. Appeals against these assessments werefiled with the Milan Provincial Tax Commissioners. The oral hearing was held on September 19,2011 and the filed appeals were all rejected, after combination, by Sentence no. 222/09/11. Thecompany filed a timely appeal against that sentence.Based on current law, the amount requested, namely a total of 23 million euro, had to be paidwithin thirty days of notification of the provision and A2A S.p.A. accordingly made thepayment on May 8, 2009.As mentioned, on October 2, 2009 the Tax Revenue Office notified four assessments issuedunder article 19 of Decree no. 135/2009 for the further recovery of alleged State aid to theformer AEM S.p.A. that has been stated to conflict with EC legislation.Having paid a total of 184 million euro on October 22, 2009 - to avoid the charges involved inbeing entered on the tax rolls and the accrual of further interest - the company appealedagainst these notices before the Milan Provincial Tax Commission which - after meeting inconnection with those relating to ASM S.p.A. - discussed the merit of the case on January 19,2010 and upheld the appeal with Sentence no. 137/01/10.Following this sentence, A2A S.p.A. requested the Tax Revenue Office to return the sums paidas a refund of the alleged “State aid” but has yet to receive a reply.On April 9, 2010 an appeal was filed against this sentence by the Regional Department of theTax Revenue Office of Lombardy and by the Tax Revenue Office - Milan 1 Office.

Half-yearly financial report at June 30, 2013Other informationFormer ASM S.p.A. (merged into A2A S.p.A. from January 1, 2008)ASM S.p.A. has also challenged the decision before the Court of First Instance in Luxembourgwith an appeal filed on its own account on January 2, 2003 and ad adiuvandum in support ofAEM S.p.A. and AMGA S.p.A..ASM moreover considered that the European Commission’s decision no. 2003/293/EC of July5, 2002 was not applicable because of the particular nature of its situation: during the periodunder consideration the services provided by ASM S.p.A. in its areas of operations were notopen to the market or free competition.On January 6, 2003 the Commission filed an objection claiming that it could not accept theappeal. ASM S.p.A. promptly replied before the legal deadline. The Court set the meetingconcerning the objection claiming that it could not accept the appeal on the merit by orderdated August 5, 2005.On February 28, 2008 the Court of First Instance communicated to ASM S.p.A its intention tocombine (only for the oral phase) the various lawsuits being brought by ASM S.p.A.,Confservizi, other majority-held public sector commercial companies and the Italian State,asking for the opinions of the parties concerned. ASM S.p.A. communicated to the Court thatit would welcome such a move to combine the various lawsuits.113The final hearing was held on April 16, 2008, and by a ruling dated June 11, 2009 the Court ofFirst Instance declared that the appeal filed by AEM S.p.A. was admissible, but rejected it onmerit - as for those filed by the other appellants - taking the view that the measure in questionconstituted State aid that was prohibited under article 87.1 of the EC Treaty, thereforeconfirming the decision taken by the Commission. With Sentence C 320/09 P published onDecember 21, 2011 the European Court of Justice turned down the appeal made by A2A S.p.A.(a similar rejection was made of the parallel appeals filed by other former municipalcompanies).The companies of the ASM Group involved in the recovery procedure (ASM S.p.A., also onbehalf of the merged BAS S.p.A. and Azienda Servizi Valtrompia S.p.A), in accordance with therequest contained in article 27 of Law no. 62 of April 18, 2005, sent the declaration required byarticle 27 of said law for each of the periods affected by the tax moratorium.BAS S.p.A. Bergamo, which was merged with effect from May 18, 2005, and Azienda ServiziValtrompia S.p.A had negative taxable income during the years in which the moratoriumapplied and so it is probable that no tax will be due.In April 2007 ASM S.p.A. received notification of the communication-injunction under article1 of Legislative Decree no. 10/2007 from the Brescia Tax Revenue Office for the periods 1998and 1999.

Half-yearly financial report at June 30, 2013Other informationBased on the opinion of its tax advisors and experts in EC law, ASM S.p.A. pointed out to theBrescia Tax Revenue Office that the communication-injunction that it had received wascontrary to the provisions of this decree both in content and in amount.At the same time ASM S.p.A. appealed to the Brescia Court for this injunction to be declarednull and void; it also asked for a court order suspending payment.On May 23 the Tax Revenue Office acknowledged that ASM S.p.A.’s arguments were correct andcancelled the communication-injunction to pay. In the light of the uncertainty regarding theoutcome of the appeals and the ways in which the Commission’s Decisions would be applied, thecompany believes it possible, but not probable, that it risks having to return all of the aid receivedif the result of the entire appeal procedure turns out to be negative: consequently no provisionhas been made for this matter in the financial statements.Pending a decision on the question, the shareholders’ meeting of ASM S.p.A. has resolved notto consider distributable an amount of 13 million euro representing a portion of the availablereserves formed during the period of the “tax moratorium”.114On April 30, 2009 the Tax Revenue Office notified two assessments, issued under article 24 ofDecree Law no.185/2008, for the recovery of alleged State aid to the former ASM S.p.A. statedto be in conflict with EC regulations. Appeals against these assessments were filed with theMilan Provincial Tax Commissioners. The oral hearing was held on September 19, 2011 and thefiled appeals were all rejected, after combination, by Sentence no. 222/09/11. The companyfiled a timely appeal against that sentence.Under current regulations the amount requested, 41.6 million euro, had to be paid withinthirty days of the provision being notified and A2A S.p.A. accordingly made the payment onMay 8, 2009.As mentioned, on October 2, 2009 the Tax Authorities notified two assessments, issued underarticle 19 of Decree Law no. 135/2009, for the further recovery of alleged State aid to theformer ASM S.p.A. that is stated to be in conflict with EC regulations.Having paid a total of 35.8 million euro on October 22, 2009 - to avoid the charges involved inbeing entered on the tax rolls and the accrual of further interest - the company appealedagainst these notices before the Milan Provincial Tax Commission, which - after combinationwith those relating to ASM S.p.A. - discussed the merit of the case on January 19, 2010 andupheld the appeals with Sentence no. 137/01/10. Following this sentence A2A S.p.A. requestedthe Tax Revenue Office to return the sums paid as a refund of the alleged “State Aid” but hasyet to receive a reply.

Half-yearly financial report at June 30, 2013Other informationOn April 9, 2010 an appeal was filed against this sentence by the Regional Department of theTax Revenue Office of Lombardy and by the Tax Revenue Office - Milan 1 Office.* * *Ruling on the appeal proposed by the Tax Authority against Sentence no. 137/01/10concerning the positions of the former AEM S.p.A. and the former ASM S.p.A.Following the proposed appeal, A2A S.p.A. filed counter-arguments and subsequent pleadingwith the court.The Tax Revenue Office’s appeal was discussed on July 5, 2010 before the Regional TaxTribunal, which upheld it.The company filed an appeal to the Supreme Court on a timely basis, specifying theinconsistencies in the appeal court’s ruling; the date of this hearing has not yet been set.* * *Ruling on the appeal proposed by the A2A S.p.A. against Sentence no. 222/09/11concerning the positions of the former AEM S.p.A. and the former ASM S.p.A.115Following the appeal filed by A2A S.p.A. the Tax Revenue Office filed counter-arguments towhich A2A S.p.A. replied with subsequent pleading with the court.A2A S.p.A.’s appeal was discussed on June 13, 2012 before the Regional Tax Tribunal, whichrejected it. The sentence with supporting arguments was filed on April 17,2013.In this respect the company is assessing the possibility of filing an appeal with the SupremeCourt.Consul Latina / BAS S.p.A. (now A2A S.p.A.)The purchase by BAS S.p.A. of the investment in HISA was made through a local consultant,Consul Latina.Given that the wording of the contract was not totally clear and the fact that BAS S.p.A. on its owndid not buy 100% of HISA, BAS S.p.A. did not pay the fee due to Consul Latina which in 1998commenced legal action for payment.The lawsuit is still in underway with various procedural objections, some recent, such as thefact that all court proceedings after May 18, 2005 were declared null and void for lack of rightof attorney, a problem that was subsequently resolved.

Half-yearly financial report at June 30, 2013Other informationIn the appeal ref. EXP 82218, Sentence no. 3697/3000 dated May 9, 2008, Consul Latinarequested that the proceedings be declared null and void given that the lawyers had nopowers and claimed damages due to a delay in the filing of documents by BAS S.p.A. in 2008.The court rejected all these claims, recognizing that ASM S.p.A. took over from BAS S.p.A..On the basis of information received from the lawyer, Mr. De Florio, according to ConsulLatina the amount payable on May 10, 2007 was US$ 1,872,000, calculated as capital of US$720,000 plus interest of 1% from April 1999.As of that date a possible offer by ASM S.p.A. to settle the dispute for US$ 400,000 was notconsidered acceptable.In a communication of November 18, 2008, the lawyer recalled that the coefficient to beapplied to the value of the principal to understand the sum due by BAS S.p.A. in the event oflosing the lawsuit was 27.22%. He also confirmed that over the previous two years the interestrate applicable to commercial settlements had remained unaltered at 1.55%.116The international rogatory notification was sent on July 30, 2010 with the request that A2AS.p.A. be formally questioned about the evidence formulated by the Buenos Aires Court; thehearing was held on September 17, 2010. The evidence was sent to the Buenos Aires appealcourt for its judgment.The lawyers representing A2A S.p.A. believe that the testimony provided by A2A S.p.A. ispositive but are unable to estimate a date for the issuing of a sentence nor are they able toforecast the outcome of the litigation.The opinion regarding the potential outcome of the case that the lawyers outlined in a report atthe end of March 2012 suggested that there is a 25% possibility that the sentence accepts each ofConsul Latina’s requests (capital of US$ 720,000 + interest at 1% monthly + expenses equal to30% of capital plus interest), a 55% possibility that the sentence lowers Consul Latina’s claims(US$ 131,521 + interest at 1% monthly + expenses equal to 30% of capital plus interest), a 10%possibility that the sentence significantly lowers Consul Latina’s claims (US$ 82,855 + interest at1% monthly + expenses equal to 30% of capital plus interest) and a 10% possibility that A2A S.p.Ais judged to be right on all counts and not required to pay anything at all.In appeal number 82220 Consul Latina asked to establish a lien on the shares in Redengas S.A.on June 21, 2001, and the Court ordered this lien.On October 6, 2009 the judge also rejected the appeal ref. EXP 90779, Sentence 5317534 datedMay 20, 2005, in which Consul Latina claimed that the lawyer Mr. De Florio had no powers ofrepresentation at the hearing held in August 2005 as a result of the merger of BAS S.p.A. intoASM S.p.A., due to the claimant’s lack of operational status.

Half-yearly financial report at June 30, 2013Other informationOn November 10, 2008, Consul Latina attempted to file a new claim against BAS S.p.A., EXP095148, requesting information about Enerfin S.r.l. in liquidation, designed to find out if ASMS.p.A. was still a shareholder or, if it had sold the investment, the sales price. On November 16,2009, the judge ordered A2A S.p.A. to pay a fine of 300 pesos per day from May 6, 2009 for nothaving provided the information required about the sale on that date; the lawyers immediatelyappealed against this sentence and for this reason no fine was paid. On June 30, 2011, the Courtof Appeal repealed the interim statement that declared A2A S.p.A to be the defaulting party,hence A2A S.p.A., who had never paid the daily penalty, was released from this obligation.In February 2010, A2A S.p.A. renewed the mandate of the legal firm Garrido to find a way ofsettling the original lawsuit brought by Consul Latina and take the necessary steps to revokethe lien filed by Consul Latina on HISA’s subsidiaries. At the end of September 2011 the legalteam advised of a proposed settlement, however without documenting the actual terms,submitted by Consul Latina for US$ 3.9 million. A2A S.p.A. communicated that this would notbe acceptable, confirming its availability to settle for up to US$ 750 thousand. No informationis available about Consul Latina’s formal response. In June 2013, A2A S.p.A.’s lawyers advisedthat under instruction from HISA’s current shareholders, Aseguradores de Cauciones S.A.intends to request a guarantee from A2A S.p.A. in the form of a deposit regarding theobligation to pay Consul Latina, having HISA’s present shareholder as the beneficiary. Checksare currently taking place.117The company is represented by the legal firm Garrido of Buenos Aires.ENEL/AEM Elettricità S.p.A. (now A2A Reti Elettriche S.p.A., a subsidiary of A2A S.p.A.)By means of a writ served in 2001, ENEL requested annulment of the decision made by theBoard of Arbitrators appointed in accordance with Decree no. 79 of March 16, 1999 (the“Bersani Decree”), which set at 820 billion lire the price to be paid to ENEL for the sale to AEMElettricità S.p.A. (now A2A Reti Elettriche S.p.A.) of the power distribution business in themunicipalities of Milan and Rozzano. AEM Elettricità S.p.A. asked for ENEL’s request to berejected, as the arbitrators’ decision could not be considered manifestly unfair or erroneousin accordance with article 1349 of the Italian civil code. AEM Elettricità S.p.A. in turn filed acounter-claim asking for ENEL to be sentenced to pay compensation for the damages causedby the delay with which ENEL implemented the sale of the business, as imposed by the law.In AEM Elettricità S.p.A.’s opinion, the judge would only be able to change the arbitrators’decision if it appeared to be “manifestly unfair or erroneous”, as also confirmed by an expertwitness’s report which the judge ordered.The Court-appointed expert witness carried out a detailed review of the situation, makingnumerous adjustments, and in the end established a figure of 88 million euro as the upper

Half-yearly financial report at June 30, 2013Other informationvalue of the business, net of damages which the expert recommended should be awarded toAEM Elettricità S.p.A..In a sentence filed on June 9, 2008, the Milan Court set a new price for the business based onthe indications of the expert witness (990.8 billion lire) and rejected the claim for damagesmade by AEM Elettricità S.p.A. According to the Court, the difference between the expertwitness’s valuation and that carried out by the Board of Experts was such as to make the lattermanifestly unfair. In other words, the judge believed that he could fully trust the conclusionsreached by the expert witness appointed by him, even though some of the choices madeappeared to be the result of exercising the technical discretion that is inherent in valuations ina different way, leading to a very different result from that reached by the Board of Experts.The judge also based his decision on certain affirmations made by the expert witnessregarding the “inappropriate nature” of certain parameters used by the Board of Experts.118Considering therefore that the price established by the Board of Experts was unfair, the judgealso rejected the claim made by AEM Elettricità S.p.A. for damages caused by the delay intransferring the business. In fact, according to the judge, ENEL was justified in not transferringthe business as the price was unfair.There are various objections which can be made to this sentence.To start with, the assumption is not accepted that the price established by the Board of Expertswas affected by errors, or that it was unfair. The Board consisted of eminent professors withyears of acknowledged experience in company valuations, so the fact that the judge simply“replaced” their calculation with the one performed by the expert witness is totallyunsatisfactory. From another standpoint, there appears to be no justification for rejecting therequest for damages because of the delayed transfer of the business, given that ENEL couldquite easily have handed it over - as indeed it did - while at the same time asking for a fairnessreview of the price set by the Board of Experts. A2A S.p.A. appealed against the court sentencewith a writ served on October 23, 2008; the hearing for the statement of the conclusions wasscheduled for April 5, 2011. Subsequently, with a writ served on May 28, 2009, Enel sued A2AS.p.A, based on the sentence by the Milan Court (which was not a sentence of condemnation),asking that A2A should be condemned to pay 88,244,342 euro, as well as interest at the legal rateand monetary revaluation from October 31, 2002. At the first hearing of this case on November24, 2009 the claimant waived the injunction and the parties are now waiting for the aboveappeal to go ahead.An agreement was negotiated with the counterpart during 2009 allowing any costs to be paidin installments to eliminate the risk that the company may have to pay out a sizeable amountall at the same time.

Half-yearly financial report at June 30, 2013Other informationWhen preparing the 2009 annual report, it was decided in the interests of prudence tomaintain the book value of 88 million euro recognized for goodwill already disclosed as abalance sheet asset for the business transferred, booking a contra-entry to a provision forrisks and charges (under liabilities) of the same amount and recognizing ancillary charges of24 million euro in the same way.As the result of the need to reorganize the rolls, the case was rescheduled and the hearing for thestatement of the conclusions, originally planned for April 5, 2011, was deferred to September 18,2012.On this date, the parties detailed their respective conclusions and subsequently exchangedfinal statements and rejoinders. The Court adjourned the case and set aside its decision untilJanuary 15, 2013. On this date, it issued a decision to resume the preliminary cross examinationand renew the mandate of the court appointed expert. The expert’s assigned task was tomeasure the damage caused by the delay suffered by AEM, believing “to have merit the claimsmade by the appellant (A2A, editor’s note) as regards measuring the value of the transfer ofthe business unit as determined by the court of first instance, as well as regardingdisallowance of the damages due to the delay in the aforementioned transfer.”119Prof. Adriano Propersi was appointed by the court to act as its expert, while A2A S.p.A.designated Prof. Angelo Provasoli as its own expert witness. Prof. Propersi has until October30, 2013 to file his report and the hearing for subsequent discussion has been set forDecember 16, 2013. Until June 30, 2013, the experts acting for the two parties have exchangedfour technical memoranda in reply to subsequent questions raised by the court expert.Investigation into gas metering devicesAn investigation is pending at the Public Prosecutor’s Office in Trento concerning the way thatgas consumption is accounted for. The investigation involves, among others, a number of A2AGroup companies and some of their directors and managers The alleged offence is fraud, aswell as other matters.The investigation was initiated by the Milan Judicial Authority but then transferred to Bresciafor a question of territorial jurisdiction. After notification of the “Notice of the Conclusion ofPreliminary Investigations - article 415-bis of the Italian Criminal procedure code” datedFebruary 7, 2011, the “Notice of the Preliminary Hearing Date” was received on June 9, 2011regarding the committal for trial presented by the Public Prosecutor. The preliminary hearingwas held before the judge in charge of the preliminary investigations (Gip) on November 8,2011. The defense for the accused raised a preliminary exception claiming that the notificationof the decree containing the “Notice of the Preliminary Hearing Date” was null and void, given

Half-yearly financial report at June 30, 2013Other informationthat it did not include the CD with the list of “indicted” meters indicated in the decree as an“attachment forming a material part of the charge”. The Gip upheld the exception anddeclared the notification null and void. As a result the Public Prosecutor had to reissue the“Notification of the Conclusion of Preliminary Investigations - article 415-bis of the ItalianCriminal procedure code” and return to the previous stage in the proceedings. On January 4-9, 2012, the “Notification of the Conclusion of Preliminary Investigations - article 415-bis of theItalian Criminal procedure code” was reissued, this time with the CD.The preliminary hearing was held on October 18, 2012, at which the judge raised a preliminaryexception pursuant to article 11 of the criminal procedure code noting that at least twomagistrates, whose judicial offices are included within the district of the Brescia Appeal Court,are “injured parties” in the proceeding and asked the judge in charge of the preliminaryhearing (Gup), Dr. Napo, to declare the Brescia judicial authority acting beyond its jurisdiction.The defense agreed with the application. The Gup therefore declared that the case wasbeyond his jurisdiction and ordered the papers to be sent to the Public Prosecutor’s Office ofVenice. As a result of this provision the proceeding has returned to the initial stage.120However, as A2A Reti Gas S.p.A. had to carry out maintenance on certain plants sequestered aspart of the criminal proceeding in question, checks were carried out to identify theprosecuting magistrate in charge of the case at the Public Prosecutor’s Office of Venice. It waslearned from this that without giving notice of such to any of the attorneys of the personsunder investigation or to those persons themselves, in the meantime the proceeding had beentransferred from the Public Prosecutor’s Office of Venice (which presumably had identified asimilar case of lack of jurisdiction) to that of Trento, which has jurisdiction for proceedings inwhich a magistrate of the Public Prosecutor’s Office of Venice acts in a capacity as “injuredparty”. At the present moment, therefore, the proceeding, assigned index no. 838/2013, isbeing followed by the Trento Public prosecutor Pasquale Profiti, and is still, therefore, at theinitial stage of preliminary investigations.Arbitration initiated by Ecovolt for violation of the Quotaholders’ Agreement for theInvestment in Ostros Energia S.r.l. in liquidation (arbitration case no. 6309 initiatedby Ecovolt)On May 25, 2009 the minority quotaholders of Ostros Energia S.r.l. in liquidation initiatedarbitration proceedings under a settlement clause contained in the Investment Agreementsigned with ASM S.p.A. (now A2A S.p.A.) on January 30, 2007, with a view to establishing abreach of that agreement by A2A S.p.A. for having failed to finance the development of OstrosEnergia S.r.l. in liquidation and comply with the provisions of article 2.5 of the Agreement.

Half-yearly financial report at June 30, 2013Other informationThese matters were first examined by the parties towards the end of 2008 and legal opinionswere obtained.The Board of Arbitration is made up of Prof. N. Irti, Prof. G. Sbisà and Prof. M. Cera. During thefirst meeting on March 4, 2010, convened to make the obligatory attempt at reconciliation,noting the absence of the parties the Board took note that the conditions did not exist for asettlement and scheduled the hearing to cross-examine the parties for April 26, 2010, to thisend inviting their legal representatives or informed persons with right of attorney to attend.The Board also established November 20, 2010 as the deadline to conclude the arbitrationproceedings.Following the aforementioned cross-examination hearing the board issued order no. 6309/20on June 3, 2010 requesting the Chamber of Arbitration to appoint an expert assessor to qualifythe difference between the projects mentioned in the January 31, 2007 InvestmentAgreement, in particular the San Biagio project, and those included in the “Baltic agreement”.In an order of the Board of Arbitrators of July 1, 2010, Deutsches Windenergie GmbH InstituteBranch DeEI Italia was appointed as expert assessor; subsequently, the Board scheduled ahearing for September 23, 2010 to confirm the arbitration question and determine the dateswhen the appraisal would commence (October 15, 2010) and when the final report would be due(January 10, 2011), and also to allow the parties involved to appoint their own expert advisors.121At this hearing, A2A S.p.A. appointed the firm D’Apollonia as its expert advisor and Ecovoltappointed Prof. Zaninelli.On September 28, 2010 the Chamber of Arbitration notified that the expert which it hadappointed with the above order had withdrawn from the case.In a letter dated October 13, 2010, the Chamber of Arbitration gave notice of order 1611/21issued on October 12, 2010 in which Prof. Villacci of the University of Sannio was appointed asthe new expert. On December 23, 2010, the expert made an application to the Arbitrators toobtain an extension of the deadline established for the filing of the expert’s report untilFebruary 25, 2011. The deadline was further extended to April 6, 2011.On receipt of the expert’s report, the Board set the term for the parties to submit theirrespective statements and the last statement was filed on June 24, 2011. The Board theninvited the parties to come to a settlement but the exchange of correspondence in this regarddid not alter the positions of the parties.The Board of Arbitrators requested an extension of the term to submit the award which wasset for May 20, 2012, and has established October 6, 2012 as the date for the hearing, in thepresence of the lawyers and the technical experts.

Half-yearly financial report at June 30, 2013Other informationThe Board of Arbitrators set December 14, 2011 as the date for the obligatory attempt atachieving a settlement, and a few days prior to this date Ecovolta filed a new opinion by anexternal third party with no relation to the arbitration procedure in an attempt to quantify thedamage caused by A2A S.p.A’s conduct.During the hearing the arbitrators listened to the parties and communicated that no newmeasures or orders would be passed until January 15, 2012. On December 19, 2011, Ecovolt’slawyers wrote to A2A S.p.A’s lawyers to remind them of the limited time available to assess anysettlement solutions.A2A S.p.A’s lawyers replied in writing that the company was willing to reach an agreement,with no recognition of responsibility whatsoever, to pay the all-inclusive and non-modifiablesum of 500,000 euro in exchange for Ecovolta’s agreement to withdraw all claims of any kind.122The Arbitration Board appointed Prof. Mario Massari as the new expert witness on February 2,2012, establishing multiple requisites to determine the value of the shareholding in OstrosEnergia S.r.l in liquidation held by Ecovolt at December 31, 2008. After lengthy discussion atthe subsequent hearing on February 14, 2012, Ecovolt appointed Prof. Brugger as the expertwitness and A2A S.p.A appointed Prof. Dallocchio; the deadline to submit the expert’s reporttaking these expert opinions into account was set for June 15, 2012.Following an application by the expert witness Prof. Massari, at the end of the pleading andmeetings of the consultants a hearing was held in which the Board provided further clarificationof the questions raised and the deadlines for the expert witness’s work was extended: June 15,2012 for the filing of the first expert witness’s report, June 29, 2012 for observations to beprovided to the parties’ expert witnesses and July 16, 2012 for the filing of the final report.On July 24, 2012, Ecovolt formulated additional preliminary petitions and on July 30, 2012,subsequent to the filing of Prof. Massari’s expert report, A2A revised the settlement offer ithad previously drawn up.On July 31, 2012, the Board issued an independent order to set the date of September 25 as thelast date for the parties to file their remarks to the expert’s report; the parties respected thisdeadline.On October 5, 2012, the Chamber of Arbitration set October 16, 2012 as the hearing date fordiscussions.At the October 16, 2012 hearing, the deadline for filing the decision was postponed further toMay 20, 2013; the deadlines for filing each parties’ briefs were set respectively at October 31,2012, December 1, 2012, January 31, 2013 and the final hearing was set as February 14, 2013.During the hearing, following the discussion by the parties’ attorneys, the Board reserved the

Half-yearly financial report at June 30, 2013Other informationright to issue an order and demanded and obtained an extension of the deadline for filing itsdecision; pursuant to article 36 of the regulations of the Chamber of Arbitration, the deadlinefor filing was set at June 28, 2013. On June 11, 2013 the Board filed its decision, sent by theChamber of Arbitration in a note of June 14, 2013, in which it upheld the first request raised byEcovolt to order A2A S.p.A. to pay the consequential loss arising from the damage to the valueof the investment of Ecovolt in Ostros Energia S.r.l. in liquidation, quantifying this in 2.84million euro, on the basis of the expert’s report, rejected the other requests of Ecovolt and allthe requests of A2A S.p.A. and awarded legal expenses, taking into account that both partieshad partially lost. The total cost, including interest through June 15, 2013 and the principalamounts to approximately 3.14 million euro.The Company is represented by the legal firm Chiomenti.Arbitration initiated by S.F.C. S.A. and Eurosviluppo Industriale S.p.A. against A2AS.p.A. and E.ON Europa S.L. for alleged non-fulfillment of the private deed for thepurchase of the shares of Eurosviluppo Industriale S.p.A. (now Ergosud S.p.A.)On May 2 and May 3, 2011 respectively the Milan Arbitration Chamber sent A2A S.p.A. (the holderof an interest of 50% in the share capital of Ergosud S.p.A.) and E.ON Europa S.L. (a formershareholder of Ergosud S.p.A. – the investment is currently held by E.ON Italia S.p.A.) a requestfor arbitration in which Société Financiere Cremonese S.A. in conjunction with EurosviluppoIndustriale S.p.A. initiated an arbitration procedure against such companies, requesting (i)ascertainment as to non-fulfillment by E.ON Europa S.L. and A2A S.p.A. of the obligationsassumed in the agreements of December 16, 2004, October 15, 2004 and July 25, 2007 interpartes and (ii) by virtue of the effect, that they be condemned to the payment of the remainingpart of the price for the sale of the shares making up the whole share capital of Ergosud S.p.A.,amounting to 10,000,000 euro, as well as compensation for the damages suffered by SociétéFinanciarie Cremonese S.A. and Eurosviluppo Industriale S.p.A. from the double standpoint ofthe consequential loss or damage and loss of profits in the amount of 126,496,496 euro, savebetter specification, plus damages for the stoppage at the worksite, interest and revaluation.123E.ON Europa and A2A S.p.A. duly appeared before the court calling for the request to be rejectedin full and by cross-claim calling for the counterparts to be condemned to pay compensation forthe damages suffered by the defendants as the result of the numerous examples of contractualnon-fulfillment, quantified initially in the amount of 30,500,000 euro or alternatively the greateror lesser sum considered equitable, quantified also pursuant to article 1226 of the Italian civilcode, plus interest, ex article 1283 of the Italian civil code and monetary revaluation, ex article1284 of the Italian civil code.

Half-yearly financial report at June 30, 2013Other informationOn September 7, 2011, the Chamber of Arbitration officially suspended arbitration due to thenon-payment of the legal expenses by the claimant.Lawyers for A2A S.p.A and E.ON Europa S.L. are checking if arbitration can be continued onlyfor the counter-claim, without having to take responsibility for the payment of the claimant’sexpenses.With regard to payment of the legal fees by defendants A2A S.p.A and E.ON Europa S.L., andthe non-payment by claimants SFC S.A. and Eurosviluppo Industriale S.p.A., on December 2,2011 the secretary of the Chamber of Arbitration communicated that the claimants’applications had been extinguished and proceedings would continue only for the applicationspresented by A2A S.p.A. and E.ON Europa S.L.; in simultaneous letters, the secretary alsoadvised that all documentation had been sent to the arbitrators to allow the proceedings tocommence.124The Board consists of Giuseppe Portal (Chairman), Vincenzo Mariconda (arbitratorappointed by A2A S.p.A and E.ON Europa S.L.) and Giovanni Frau (arbitrator appointed by SFCS.A. and Eurosviluppo Industriale S.p.A.).On February 1, 2012 the first hearing was held after formalities had been completed regardingthe setting up of the Board at which it was stated that the terms for the questions originallyproposed by SFC S.A. and Eurosviluppo Industriale S.p.A. had lapsed. In addition, the partieswere assigned the dates by which pleading and replies should be filed and items of evidenceproduced. In particular, having become claimants from a substantial standpoint (wishing tocontinue with the case by counter-claim following the above-mentioned lapse of the counterparty’sterms), E.ON Europa S.L. and A2A S.p.A. were invited to note their questions andindicate their evidence by March 15, 2012; the subsequent dates for filing pleading were set asApril 16, 2012, May 8, 2012 and May 31, 2012.The date of the hearing was set for June 12, 2012 for the personal appearance of the parties inorder to make an attempt at reaching a settlement and for any informal questioning. At thehearing, adjourned to June 19, 2012, the Arbitration Board acknowledged the bankruptcy ofEurosviluppo Industriale S.p.A. which had occurred and set a date of October 30, 2012 for theappointment of a receiver and a date of November 20, 2012 for the hearing for the attempt toreach a settlement and carry out any informal questioning of the parties.In view of the intervening bankruptcy of Eurosviluppo Industriale and the process issuesraised during such declaration, the Board issued a decision dated November 13, 2012 orderingthat the hearing set for November 20, 2012 should not be devoted to an attempt at reaching asettlement and, therefore, would not include the presence of the parties. At the hearing onNovember 20, 2012, the Board set the deadline for filing the award as July 4, 2013; also, the

Half-yearly financial report at June 30, 2013Other informationdeadlines for the parties to file briefs were set as December 20, 2012 and January 31, 2013, andFebruary 20, 2013 was set for the hearing date for discussion, to be held at the office of theChairman of the Board. At the hearing of February 22, 2013 (the hearing was adjourned fromFebruary 20 to February 22 due to a commitment of the Chairman of the Arbitration Board),the Board issued an order requesting A2A S.p.A. and E.ON Europa S.L. to add to theirrespective attorneys to remedy all possible defects by March 20, 2013, and set March 20, 2013and April 5, 2013 as the new final dates for the filing of briefs and replies to clarify and explaintheir respective positions. Subsequent to these obligations, the Board reserved the right toissue an order. On June 5, 2013, the Board filed an order in which it set July 22, 2013 as the dateof the hearing for an attempt to reach a settlement and for questioning by the parties; giventhe deadline of July 4, 2013 previously set for the filing of the decision, the Board has made anapplication to the Chamber for the granting of a reasonable extension.The company is represented by the legal firms Chiomenti and Simmons & Simmons.Consorzio Eurosviluppo Scarl / Ergosud S.p.A. + A2A S.p.A. – Civil Court of RomeOn May 27, 2011 Consorzio Euroviluppo Industriale S.p.A. served a writ on Ergosud S.p.A. andA2A S.p.A. with the following claims: (i) compensation for damages, of both a contractual andextra-contractual nature, jointly, or alternatively exclusively and separately, in the amount of35,411,997 euro (of which 1,065,529 euro as the residual portion of their share of theexpenses); (ii) compensation for damages for the stoppage at the worksite and the failure toreturn the areas of pertinence to the Consortium.125In the filing of appearance Ergosud S.p.A. and A2A S.p.A. called for the request to be rejectedin full because it is unfounded in its merit and in its substance, and pointed out: (i) the lack ofthe right of the Consortium to institute proceedings as it is currently in a state of bankruptcy,(ii) the lack of the right of the Consortium to institute proceedings for the damages allegedlysuffered by Fin Podella at the item “anticipation of program contract” for 6,153,437 euro andthe damages allegedly suffered by Conservificio Laratta S.r.l. for 359,000 euro.The first hearing was set for October 30, 2011. This judgment was assigned to the Second CivilSection of the Court. The first appearance hearing was set for November 30, 2011 and the judgedeferred decision concerning the legitimacy of the failed Consortium to establish a case.On this occasion Ergosud S.p.A. and A2A S.p.A. were not able to make any cross-claims as thecompetence for this lies with the bankruptcy judge.SFC S.A. filed a notice of joinder on November 8, 2011 pursuant to article 105 of the civilprocedure code (which allows a third party to make a new, different request to the original

Half-yearly financial report at June 30, 2013Other informationjudge, extending the argument) and called that Ergosud S.p.A. alone should be ordered to paydamages, in part similar to those claimed by the Consortium, quantified in 27,467,031 euro.The legitimacy of SFC S.A. is independent with respect to that of the Consortium, the originalclaimant, and should it be found that the request of the Consortium may not proceed furtherfor lack of grounds (or because of the bankruptcy that has occurred), the judgment wouldcontinue between SFC S.A. and Ergosud S.p.A.. In this scenario, A2A S.p.A. could ask to beexcluded since no request would have been raised against the company, but for the purposeof simplicity the judge would probably remit the question to the final sentence.Within the term set for the first hearing the lawyers formulated conclusions on behalf ofErgosud S.p.A. in respect of the request made by SFC S.A., then counter-claiming in a morecomplete manner in the subsequent preliminary pleading pursuant to article 183, section VI ofthe civil procedure code.126The judge found the bankruptcy was legitimate as SFC S.A. and therefore set the end of theproceedings and the hearing for December 19, 2012, declaring the need to execute an expertopinion on a number of points, indicating the questions to put to the expert and setting May23, 2013 as the date for the hearing to appoint the court’s expert witness. At that hearing thejudge, changed in the meantime, confirmed the questions already formulated on December19, 2012 and appointed the court experts Messrs. Pompili and Caroli, setting a term for theparties to appoint their own consultants. The start of the experts’ work was scheduled as June18, 2013, with a deadline of 180 days after that date. A2A S.p.A. and Ergosud S.p.A. appointedProf. Massardo and Mr. Gioffrè as their experts, persons who over the years have alreadydrawn up reports on the matters to which the questions refer.The company is represented by the legal firm Simmons & Simmons.CIP 6 auxiliary servicesInspections have been carried out by the GSE (Energy Services Manager), instructed by theAEEG (Electricity and Gas Authority), at companies in Tuscany using plants party to CIP6/92conventions, to determine the amount of electricity (produced by plants fired by renewablesources) consumed by auxiliary plant services, as defined by the AEEG. The inspections werefollowed by an AEEG provision contesting that the amount of electricity used by auxiliaryservices was greater than the level indicated in the respective conventions and at the sametime the AEEG instructed the Electricity Sector Equalization Fund to recover the amountsunduly received by the two companies. These amounts are equal - according to the AEEG’scalculations - to the difference between the energy for which the plants received CIP 6incentives and the energy that (again according to the AEEG) would have actually been

Half-yearly financial report at June 30, 2013Other informationdelivered into the grid. The two Tuscan companies (Geofor, A.AM.P.S.) subject to theprovision filed an appeal against this with the Lombardy Regional Administrative Court (TAR),obtaining a suspension. A hearing is planned to be held in the first few months of 2014 forthese companies and the companies of the Ecolombardia 4 S.p.A. Group.Amsa S.p.A. (now A2A Ambiente S.r.l.)In the CIP 6 convention entered into by Amsa S.p.A. electricity consumption for auxiliary plantservices is set at 5% of gross output (of the actual energy generated). It is also worth notingthat the convention also provides that this value “can be replaced by a new value to becalculated on the basis of jointly defined technical inspections”.Amsa S.p.A. received an inspection from the Electricity Sector Equalization Fund (CCSE) onDecember 19, 2006. The visit led to a note issued by the CCSE (September 19, 2007) accordingto which the electricity produced by the plant and consumed by auxiliary plant services ishigher than the flat rate indicated in the convention, having been found to reach between 16%and 23%. To date the AEEG, which also received the CCSE note, has not taken any particularposition regarding Amsa S.p.A..127Although the CCSE inspection was known for some time, the possibility that this could createpotential liabilities only emerged when it was learnt that the AEEG had taken measures againstthe above-mentioned Tuscan companies.Should Amsa S.p.A. be the subject of AEEG measures similar to those taken against the abovementionedcompanies the potential liability that may result for Amsa S.p.A would be difficultto estimate. Assuming the worst case, the estimated liability could amount to approximately39.5 million euro. As the company has not yet received from the GSE any dispute noticesregarding the auxiliary plant consumption it believes that it has valid reasons in its favor and inthis respect provides the following summarized considerations:• Given the specific nature and features of the waste treatment plants, the company and thebusiness associations agreed that a definition of auxiliary service was needed to takeaccount of this specific nature of the waste treatment plants, which unlike other plants arenot designed and built with the sole purpose of producing electricity but are the result oflocal planning which has the objective of ensuring that the integrated waste cycle isproperly managed through the incorporation of current national and community law. Inthese plants the production of electricity is considered a secondary activity and as aconsequence this specification must be taken into account in determining auxiliaryservices;• the company’s position is that reference legislation must only affect future construction,safeguarding the positions of existing initiatives for which specific conventions were

Half-yearly financial report at June 30, 2013Other informationestablished in the past between ENEL, firstly, and then GRTN (now the GSE) later. In theconvention it is stated that the flat-rate percentage can only be revised by agreement withthe counterparty and as the result of a joint check;• Resolution no. 47/2013/R/EFR was issued on February 7, 2013; this regards the criteria foridentifying the usage of auxiliary services for production plants that benefit from theincentives provided by the interministerial decrees of July 5 and 6, 2012. Despite referringto separate plants enjoying the incentives of these decrees, this decree appears to projectits effects solely into the future, confirming indirectly that as things currently stand theliability should only be considered possible, given above all the continuing absence ofmeasures to be borne by the company.Given the above arguments, the company believes that as of today the liability is possible butnot probable. As a consequence, no amounts have been provided in the Half-yearly report atJune 30, 2013.Ecodeco Group128Ecolombardia 4 S.p.A. received an inspection from the GSE (Energy Services Manager) inSeptember 2011. The inspection led to a note by the Manager dated January 4, 2012 accordingto which the amount of electricity produced by the plant and consumed by auxiliary plantservices is greater than the flat rate indicated in the convention, having been found to reachbetween 19.4% and 25.5%. Ecolombardia 4 S.p.A. opposed this note, submitting to the AEEGon April 17, 2012 an application for review, consisting of a technical note aiming to show thecorrectness of the valuations performed at the time concerning the application of thereference laws due also to the specific nature of the waste to energy plants used. On October10, 2012 Ecolombardia 4 S.p.A. received a copy of the Authority’s resolution on theadministrative consequences as a result of the inspection in which it states that “..... thequantity of electricity actually absorbed by the auxiliary services of the plant is significantlyhigher than the flat quantity established in the sales convention ….. “. The AEEG concluded onthis finding by stating that “the underestimation of the energy absorbed by the auxiliaryservices has led over the years under review (2003 to 2010) to the payment by the GSE of theincentive-based prices as per provision CIP/92 for quantities of energy higher than those putinto the grid” and that “….. the CCSE ….. should take action to obtain an administrativerecovery ….. of the amounts unduly received”.The company has given instruction to file an appeal with an application for cautionarysuspension. The appeal is therefore pending before the Regional Administration Court ofMilan, the cautionary suspension was upheld with order no. 1718/12. At a public hearing on May21, 2013, at the request of Ecolombardia 4 S.p.A. the case was adjourned to a public hearing to

Half-yearly financial report at June 30, 2013Other informationbe held on January 14, 2014. The precautionary suspension of the pervious December remainseffective until then.The company has given instruction to file an appeal with an application for cautionarysuspension before the Regional Administration Court of Milan. The cautionary suspensionwas upheld with order no. 1718/12 and at a public hearing on May 21, 2013 the RegionalAdministration Court upheld the application for deferral filed by Ecolombardia 4 S.p.A. aimedat asking for joint discussion with the appeal filed by Geofor, one of the Tuscan operatorsaudited. An order has been issued for adjournment to January 2014.Ecodeco S.r.l. (now A2A Ambiente S.r.l.) also received an inspection on its waste to energyplant and biogas plants at Corteolona on May 10-11, 2012 and July 5-6, 2012 respectively. Thefindings of the inspection team were similar to those noted at Ecolombardia 4 S.p.A. at thetime, namely that the consumption attributable to the auxiliary plant services is higher thanthat indicated in the CIP 6 convention. On June 21, 2013, Ecodeco S.r.l. (now A2A AmbienteS.r.l.) received a provision from the AEEG similar to that received by Ecolombardia 4 S.p.A.. Inparticular, the resolution adopted by the AEEG on June 6, 2013 (sent to Ecodeco S.r.l., now A2AAmbiente S.r.l., on June 21, 2013), instructs the CCSE to act against Ecodeco S.r.l. in order to“obtain the administrative recovery of the amounts unduly received”. The term for filing anappeal expires on October 4, due to the suspension of proceedings for the holiday period. Inthe same way as for Ecolombardia 4 S.p.A., the company will assess the request for asuspension of the provision, given the fact that the hearing of January 2014 will decide thematter.129It is difficult to estimate the potential liability that may arise for the Ecodeco Group. Assumingthe worst case, the request that the AEEG could make may be estimated in approximately 29.2million euro.On the basis of the technical elements that have supported the conduct of the Ecodeco Groupin identifying the auxiliary services and the other valid defensive objections of a legalcontractualnature that may be raised in the event of a dispute, the liability is considered to bepossible and the Group has therefore made no provision in this respect.Reference should therefore be made to the considerations already expressed for Amsa S.p.A.concerning the arguments in the company’s favor.Giussago bioreactorThe Municipality of Casarile (together with other municipalities) appealed against theLombardy Region and the Province of Pavia to obtain the cancellation of the integratedenvironmental authorization (AIA) and (positive) environmental impact assessment (VIA)

Half-yearly financial report at June 30, 2013Other information130measures issued by the bodies regarding the building of a bioreactor (by Ecodeco S.r.l., nowA2A Ambiente S.r.l.) for non-hazardous waste in Cascina Maggiore - Giussago (PV). The appealproposed subsequent additional reasons to extend the appeal to other acts relating to theproceedings and broaden the list of bans. The Province of Milan intervened voluntarily in thecase to support the claims of the Municipality of Casarile. Following the hearing on December5, 2011, where the application for interim relief submitted by the municipalities was alsodiscussed, ordinance no. 1818 of December 6, 2011 was initially pronounced and then Sentenceno. 67 of January 11, 2012 was published. This sentence rejected the appeal in the part directedagainst the positive VIA measure in that it was late. The Regional Administrative Court (TAR)therefore ruled that verification procedures were required to decide the portion of thechallenge raised against the AIA. The judge instructed the “Manager of the EnvironmentalAssessment Department of the Ministry for the Environment” (or “a qualified officialdelegated by such”) to carry out these procedures, presenting a conclusion “within 90 days ofthe notification or the communication by administrative means” of the sentence. EcodecoS.r.l. (now A2A Ambiente S.r.l.) appointed Prof. Adami of the Polytechnic as its advisor. Thediscussion of the appeal was set for November 20, 2012. The appraisal report was filed on July6, 2012 and in summary this confirmed that:1. the sureties are sufficient by law;2. the waste is not putrescent;3. the coverage is effective.These elements/assessments are in agreement with the position taken by Ecodeco S.r.l. (nowA2A Ambiente S.r.l.) .Following the quoted sentence of January 2012, the municipality petitioners also formulated afurther document listing additional reasons to appeal against ruling no. 155384 of November18, 2011 whereby ARPA, having verified the plant’s compliance with the prescriptions laid downin the relative authorization documents, gave its permission, pursuant to article 9 ofLegislative Decree no. 36/03, to the start of disposal operations at the bioreactor, furtherextending the thema decidendum.With the sentence filed on January 9, 2013, the Regional Administrative Court rejected thepetition filed by the Municipality of Casarile and another eight municipalities (n.r.g. 1965/10).The municipalities have filed an appeal against the sentence. Assessments are in course todecide whether to initiate litigation.On the basis of the information available to date, by virtue of the valuations of the consultantof the Ministry Ecodeco S.r.l. believes the risk of an unfavorable verdict in the judgment on themerit of the appeal to be possible and not probable and accordingly no amount has beenprovided at June 30, 2013.. An unfavorable verdict would lead to the write-down of the asset in

Half-yearly financial report at June 30, 2013Other informationquestion, which is currently carried at 2,784 thousand euro in the balance sheet, and possiblecosts associated with restoring the area.With reference to the same plant, the Municipality of Lacchiarella appealed against theLombardy Region and the Province of Pavia to obtain the cancellation of the integratedenvironmental authorization (AIA) and (positive) environmental impact assessment (VIA)measures issued by the bodies regarding the building of a bioreactor (by Ecodeco S.r.l. nowA2A Ambiente S.r.l.) for non-hazardous waste in Cascina Maggiore - Giussago (PV). The appealproposed subsequent additional reasons to extend the appeal to other acts related to theproceedings and broaden the list of bans. The Province of Milan intervened voluntarily in thecase to support the claims of the Municipality of Lacchiarella.Following the hearing on December 5, 2011, at which the application for interim reliefsubmitted by the municipality was also discussed, ordinance no. 1826 of December 6, 2011 wasinitially pronounced and then Sentence no. 68 of January 11, 2012 was published. The sentencerejected the appeal and the additional reasons included in such, in that it was late. Thissentence was challenged before the Council of State (n.r.g. 2364/12). Subsequently anapplication was filed for interim relief. After rejecting the request for cautionary measuresprior to the case, in chambers on April 9, 2013 the judge ordered an adjournment to the meritsof the discussion of the case. The hearing has been set for November 19, 2013.131On January 19, 2012 the Municipality of Lacchiarella therefore notified a further appeal (n.r.g.373/12: for which a date for the hearing has not yet been set) against ARPA Lombardia, theRegion of Lombardy and other public administrations (and against Ecodeco S.r.l. now A2AAmbiente S.r.l.) to challenge ruling no. 155384 of November 18, 2011, whereby ARPA, havingverified the plant’s compliance with the prescriptions laid down in the relative authorizationdocuments, gave its permission, pursuant to article 9 of Legislative Decree no. 36/03, to thestart of disposal operations at the bioreactor. The setting of a hearing is pending.Union Temporal De Impresas v. the Municipality of Calig (Spain)This proceeding involves the Union Temporal De Impresas (UTE) set up by Ecodeco S.r.l.,(now A2A Ambiente S.r.l.), Azhar and Teconma to build and manage an ITS treatment anddisposal plant and composting line in Castellon de la Plana (Spain), as the result of beingawarded the tender called by Zone 1 Consortium of Castellon. The Municipality of Calig,neighboring with Castellon, has appealed against the amendment to the agreement betweenthe consortium and the UTE which provided for an increase in the fee of 121 million euro and140 million euro for adjusting the plants to the specifications required in the AIA, requestingthat it be annulled. In the sentence of the court of the first instance of May 21, 2013, the courtupheld the appeal of the Municipality of Calig, additionally ordering, besides upholding the

Half-yearly financial report at June 30, 2013Other informationrequests of the counterparty, the annulment of the original awarding of the tender to the UTEwith the resulting requirement for the consortium to find a new supplier.Despite the fact that Ecodeco S.r.l. (now A2A Ambiente S.r.l.) holds an interest of 1% in theUTE, under Spanish law, UTEs are characterized by the joint liability of their members.The UTE, defended by the law firm Urìa Mendez, has filed an appeal against the court’ssentence of June 12, 2013.132The internal legal department believes the risk of the annulment of the original award of thetender to the UTE to be remote (it was not even one of the counterparty’s requests) and therisk of losing in the matter concerning the amendment of the agreement between theconsortium and the UTE, which provided for an increase in the fee as above, to be possible.Losing the case would lead to a maximum potential risk for the UTE of 19 million euro. EcodecoS.r.l. (now A2A Ambiente S.r.l.), a member of the UTE with a 1% interest and jointly responsible,could be called to respond not only for its own interest but potentially also for a larger figureif the other members are insolvent towards the bank (it should be remembered that the UTEobtained a loan to build the plant). The figure of 19 million euro could then be further revisedin the light of the conclusions of the appeal filed by the UTE against this sentence of theRegional Administrative Court.To complete this matter approximately trade and financial receivables of 3.6 million euro duefrom the UTE are included in the financial statements of Ecodeco S.r.l. (now A2A AmbienteS.r.l.) at June 30, 2013, which in the case of losing could become uncollectable.Monfalcone Plant investigationIn November 2011, the Trieste Judicial Authority took restrictive action against severalindividuals in the Veneto, Friuli Venezia Giulia and Lombardy regions, including an employee ofthe Monfalcone thermoelectric plant, for criminal association aimed at defrauding the stateand private persons and conceptual falsity, as well as activities organized for illegal traffickingin waste.This investigation was initiated with a report filed in March 2011 by the management of the A2AGroup against A2A employees and third party businessmen suspected of being responsiblefor fraud carried out to the harm of the company itself, who - for the payment of conspicuoussums of money - guaranteed the disposal of special waste by illegal trafficking and thefalsification of forms identifying the waste and certificates of analysis, in relation to the supplyof biomasses and the certification of their calorific value. More specifically, biomass quantitieswere recorded on entry at figures higher than the real ones, with the relative calorific valuesalso being increased.

Half-yearly financial report at June 30, 2013Other informationA2A S.p.A., the owner of the production site, ordered the precautionary suspension of theemployee concerned and a freezing of the payments of the invoices issued by the biomasssuppliers, which, to its knowledge, are involved in the investigations.The investigation initiated by the Trieste Judicial Authority has not yet been completed andtherefore the information needed to determine the effect of any illegal conduct has not yetbeen made available. Nevertheless the A2A Group, and in particular A2A Trading S.r.l. mayincur damages, at their sole expense, arising from the qualitative and quantitative differencesin the biomasses, since there is the risk for the latter, as toller and in charge of the plant’sdispatch, that on completion of the preliminary stage it may incur increased costs for thebiomasses not delivered and increased costs for incorrectly stating the calorific value of thebiomasses, delivered and not delivered.To this should be added that the increased use of coal instead of biomasses could as aconsequence have an increase in the environmental costs relating to the second half of 2009and the whole of 2010, as well the need to reimburse the additional income or environmentalallowances recognized with respect to the real income or allowances (reference here is toGreen Certificates). In fact for 2009 and 2010 the company may have filed declarationsgenerating environmental allowances that are greater than those actually produced, as thecalculation may have been affected by considering a biomass energy to conventional sourceenergy ratio that is mistakenly higher than the real figure.133If this were the case, the company would have to file corrections to the above-mentioned pastdeclarations and reimburse the income relating to environmental allowances that may haveadditionally been recognized.Further, in accordance with the procedures and modalities required, A2A Trading S.r.l. hasfiled a request with the GSE to obtain Green Certificates relating to 2011 in which thecalculation has been made on the basis of the real quantities of biomasses delivered to thepower station and, in agreement with the Public Prosecutor, by taking into account a possiblefalse increase of 20% in the calorific values of such. Despite the fact that the GSE hasacknowledged the correctness of the calculations made by A2A Trading S.r.l. for 2011, as oftoday the above-mentioned 2011 Green Certificates have not yet been issued.As things currently stand, given that the investigations have not yet been completed and thatthere is still insufficient information relating to the illegal conduct, it is impossible to estimatethe potential liability.In conclusion, as the aggrieved party the A2A Group will protect its interests in all theappropriate places, requesting compensation for any damages it may have suffered.

Half-yearly financial report at June 30, 2013Other informationASM Novara S.p.A. disputeRegional Administrative Court of Piedmont 79/2010 EdilCastello S.r.l. and Errevi S.r.l.vs. the Province of Novara toward Asm Novara S.p.A., A2A S.p.A. and PessinaCostruzioni134EdilCastello S.r.l. and Errevi S.r.l. - as the companies owning real estate property located in theimmediate vicinity of the area intended for locating the plant of the heating project of the cityof Novara - have filed appeal against: a) Ruling no. 4213 of November 9, 2010, with which theProvince of Novara expressed a positive opinion on the compatibility of the plan to build thedistrict heating plant; b) Resolution no. 326 dated August 1, 2005 of the Municipal Council ofNovara, declaring the public interest of the proposed project; c) Ruling no. 17 of July 13, 2006of the Urban Mobility Service of the Municipality of Novara, awarding the license to build andoperate the district heating plant. The awarding process was found to be flawed due tosubjective errors of the contractors and the opinion of environmental compatibility waserroneous due to the lack of preliminary study since it did not account for the plant’sresidential location as a result of the previously approved building recovery process, with thefailure to evaluate the public and private interest of all parties.On January 21, 2010, the Regional Administrative Court issued Order no. 5 in which it enjoinedthe Province to file the municipal records subject to appeal. After the Province fulfilled thepreliminary obligation, no other actions were posed.The shareholders have not entered an appearance and the company is represented byAttorney B. Savorelli.Court of Ferrara general docket 3707/2012 in opposition to injunction no. 930/12general docket 2300/12On June 27-28, 2012, the Court of Ferrara issued injunction no. 930/12 in which it enjoined ASMNovara S.p.A. to pay INCICO S.p.A. (an engineering company hired to handle design work) anamount of 44,673.20 euro plus interest and charges for 2,590 euro. Notice of the injunctionwas served on ASM Novara S.p.A. on July 24, 2012; in turn, the company served timely notice ofthe summons in opposition, within the prescribed terms, to seek dismissal of the injunctiondue to the absence of jurisdiction of the Court of Ferrara, by virtue of the exclusive jurisdictionof the Court of Milan as per the contract, and the statement of inadmissibility of the petitionfor injunction. The amount of the receivable held by INCICO S.p.A. is equal to the last paymentinstallment set forth by contract. However, the contract stipulates that full payment iscontingent on approval of the working plan by the Municipality of Novara, an event that hasnot yet occurred.

Half-yearly financial report at June 30, 2013Other informationThe date of the hearing was set as February 14, 2013 and was then adjourned to March 7, 2013due to the absence of the judge; at this hearing, the parties’ attorneys insisted on approvingthe conclusions and the judge reserved the right to make a decision at a later date. The Courtof Ferrara came to its decision in April 2013, upholding the claim raised by ASM Novara S.p.A.as to the absence of jurisdiction of the Court of Ferrara, and accordingly dismissed theinjunction, remitting the decision on the costs to the court having jurisdiction. Within the nextthree months INCICO S.p.A. may initiate the case again before the Court of Milan to assert itsclaims or may start new proceedings for the collection of the debt.The company is represented by Attorney B. Savorelli of Milan.General docket 1918/2013 Court of Brescia summons to appeal the resolution taken bythe Board of Directors of ASM Novara S.p.A. on October 26, 2012The shareholder Pessina Costruzioni and the outgoing directors Massimo Pessina and GuidoStefanelli served notice of the summons to have the court declare null the resolution ofOctober 26, 2012 with which the Board of Directors of the company certified the existence ofreasons to liquidate the company, pursuant to article 2484 of the Italian civil code, orderedpublication of the resolution pursuant to article 2484 and issued a request to appoint theofficial receiver at the Court of Brescia pursuant to article 2487 of the Italian civil code.135The petition examines the motives illustrated in the memorandum of appearance in the civilaction filed by Pessina Costruzioni and by its outgoing directors Massimo Pessina and GuidoStefanelli, noting the errors of irregularity in the composition of the Board of Directorspassing the resolution and the errors in the certification of the causes of liquidation, whichallegedly did not exist.The date of the hearing for discussion was set for May 9, 2013. On May 8, 2013, Pessina filed apetition calling for the precautionary suspension of the resolution of October 26, 2012. As aresult, at the hearing of May 9 the respondent requested a deadline, set by the court as June17, 2013, granting a term for the lodging of a note until June 7, 2013. Following this hearing, thecourt issued an order setting a new hearing for September 19, 2013 and rejected the requestfor a precautionary suspension due to a lack of legal standing given that the resolution ofOctober 26, 2012 has produced its effects in full considering also the fact that in the meantimea receiver has been appointed.The directors De Censi and Spadoni appear in this case represented by Attorney Zimmitti andASM Novara S.p.A. represented by Prof. Dammoto.

Half-yearly financial report at June 30, 2013Other informationCourt of Brescia in Council Chambers, general docket 4321/2012, petition to appointan official receiver pursuant to article 2487 of the Civil Code.The directors of ASM Novara S.p.A. - Paolo Rossetti, Michele De Censi and Lorenzo Spadoni -and the shareholder A2A S.p.A. filed a petition at the Court of Brescia to appoint an officialreceiver after having certified with the resolution of October 26, 2012 the existence of thereasons for liquidating the company under article 2484 of the Italian civil code, section 1 no. 3)(inability of the shareholders’ meeting to function) and no. 4 (decrease below the minimumlegal requirements of share capital due to losses).After meeting in chambers on January 11, 2013, the Court of Brescia issued a decree in which itrejected the petition.Court of Appeal in Council Chambers, general docket 4321/2012, appeal against thedecree of January 11, 2013 regarding the petition to appoint an official receiverpursuant to article 2487 of the Civil Code.136The directors of ASM Novara S.p.A. - Paolo Rossetti, Michele De Censi and Lorenzo Spadoni -and the shareholder A2A S.p.A. filed a claim pursuant to article 739 of the Italian code of civilprocedure to revoke the decree and seek certification of the reasons for the liquidation of thecompany, while determining with recourse the number of official receivers.The date of the hearing was set for March 20, 2013. At that hearing the parties filed briefs andthe case was adjourned to April 24, 2013.On April 24, 2013 in coming to its decision the Court of Appeal fully upheld the claim. In particular,the Court observed that the petitioners’ claims hit the mark because (i) there are no limits to thedirectors’ powers in the prorogation period; (ii) the surviving directors took immediate action tocause the shareholders’ meeting to appoint the new board of directors, then registering thenotary deed by which the winding up of the company was resolved; (iii) a reason for winding upthe company exists, under article 2484, paragraph 1 no. 3 of the Italian civil code (with theremaining reason for winding up the company being absorbed).The Court therefore proceeded in accordance with article 2487, paragraph 2 of the Italian civilcode, appointing Dr. Alberto Facella as the company’s receiver who has been granted all thepowers required for ordinary and extraordinary administration.The company and the shareholder are represented by Attorney Zimmitti.

Half-yearly financial report at June 30, 2013Other informationThe judge responsible for supervising the register at the Court of Brescia, generaldocket RG 223/2013, appeal under article 2191 of the Italian civil code against thecancellation from the companies register of the minute of ASM Novara of October 26,2012Pessina Costruzioni and the outgoing directors of ASM Novara S.p.A. have notified ASMNovara S.p.A. and the Brescia Chamber of Commerce that they have filed a petition underarticle 2191 of the Italian civil code requesting the court to annul the registration of theresolution of the Board of Directors of October 26, 2012 due to the absence of the legalrequirements and the lack of existence of the assumptions for the liquidation of the companyput forward to support the reasons for liquidation, with express reservation of the right toaffirm the non-validity of the resolution and the responsibility of the directors who adopted itusing all the remedies available. The judge responsible for supervising the register set ahearing for April 15, 2013 for the appearance of the parties concerned and the departmentresponsible for the register. ASM Novara S.p.A. and the directors appeared with their legalrepresentatives Avv. Zimmitti and Prof. Dalmotto respectively, also in order to provideinformation about the developments concerning the petition pursuant to article 739 of theItalian code of civil procedure.137At the hearing of May 9, 2013, despite a request by the plaintiff for a deferral, the court insistedon a discussion and came to a decision on the proceeding with an order issued at the hearing,rejecting Pessina’s appeal pursuant to article 2191 of the Italian civil code and sentencing thecompany to reimburse the court’s fees quantified in 2,500 euro.RG 856/13 Court of Brescia - Appeal pursuant to article 2367, paragraph 2 of the Italiancivil codePessina Costruzioni and the outgoing directors Massimo Pessina and Guido Stefanelli notifiedthe three directors in prorogation, Rossetti, De Censi and Spadoni, and the three members ofthe board of statutory auditors of an appeal aiming to obtain the calling of a shareholders’meeting by the shareholders due to the claimed inertia of the board of directors, pursuant toarticle 2367 of the Italian civil code, in calling - as alleged - a shareholders’ meeting, never called,to recompose the management body as a result of the resignations of Pessina and Stefanelli inthe presence of a simul stabunt simul cadent clause (this circumstance has already beendenied, incidentally, by the Court of Appeal which appointed the arbitrators).The directors in prorogation were notified jointly of the appeal against the Court’s measureissued on April 16, 2013, which set the hearing for the appearance of the members of themanagement and control bodies for May 23, 2013.

Half-yearly financial report at June 30, 2013Other informationThe appeal will go through the reasons already described in the concurrent appeals(frequently postponed); the appeal also contains an application not to summons thecompany’s corporate bodies for due hearing, to call a shareholders’ meeting with the chairbeing given to Massimo Pessina or Guido Stefanelli or a person designated by them and, toavoid any influence arriving from the shareholder A2A S.p.A., to hold the meeting at Pessina’sregistered office.At the hearing of May 26, 2013, in the presence of Mr. Rosetti, the members of the board ofstatutory auditors and the receiver, Pessina’s lawyer reiterated the requests, asking the Court tocall a shareholders’ meeting to revoke the liquidation and appoint new directors.In the light of the Court of Appeal order to appoint a receiver, the Court indicated that it wasthe receiver who should call a shareholders’ meeting.The Court noted that there were no longer any matters under dispute and that each party shouldpay their own legal costs.138Arbitration initiated by Pessina Costruzioni against ASM Novara S.p.A.In note 28 of February 2013, Attorney Pierluigi Tirale, as Sole Arbitrator appointed by theBrescia College of Notaries at the request of Pessina Costruzioni in execution of the company’sbylaws asked Pessina Costruzioni and ASM Novara S.p.A. whether the parties would like toinitiate the proceeding or defer the initiation of the arbitration to the outcome of the ruling ofthe Court on the above-mentioned summons, whose first hearing is set for May 9, 2013.Through its chairman Mr. Rossetti, ASM Novara S.p.A. asked the Sole Arbitrator for news andinformation about the establishment of jurisdiction. On April 11, 2013, the company receivedfrom the arbitrator the request for appointment drawn up by Pessina and made to the collegeof notaries as fulfillment of the requirement of the bylaws. By means of subsequentcorrespondence Pessina notified the Sole Arbitrator that it wished to wait for the sentence atthe end of proceeding no. RG 223/13.The company is assessing what action it should take.* * *Arbitration initiated by Pessina Costruzioni against A2A S.p.A.On March 29, 2013 Pessina Costruzioni notified A2A S.p.A. of the appointment of the arbitratorand the deposition with the arbitrators to initiate the arbitration, in fulfillment of theshareholders’ agreements signed in August 2007, with the scope of having A2A S.p.A. orderedto pay compensation for damages for the non-fulfillment of its obligations under theagreements.

Half-yearly financial report at June 30, 2013Other informationA2A S.p.A. appointed its arbitrator within the established term of 20 days, rejecting therequests.After discussion on the appointment, and after a request for the appointment of a solearbitrator made by Pessina to the Court of Novara, the parties signed an agreementconcerning the formation of the arbitration board.The appointed arbitrators are Bruna Gabardi Vanoli, Marco Praino (designated by Pessina)and Salvatore Sanzo (designated by A2A S.p.A.); when the board is formally set up, the partieswill set out their arbitration questions.The company is represented by Attorney Zimmitti.Water derivation feesThe Lombardy Region has requested Edipower S.p.A. to pay a public water user’s fee due forderivations used for cooling the condensers at the Sermide and Turbigo thermoelectricplants, together with the payment of a fee increased as the result of regional legislation(Regional Law no. 22/2011) for the Mese unit for the use of public water for hydroelectricpurposes. The total in dispute for the Sermide and Turbigo plants (equal to the amount notpaid by the company due to the reduction by 50%) amounts to approximately 65 million eurofor 2003 to 2012; an amount of 2 million euro is in dispute for the Mese unit.139Against these requests, Edipower S.p.A. believed and continues to believe that it is entitled tomake payment on the basis of its actual withdrawals and that it may take legal action for therecognition of the right to halve the fee pursuant to article 18 of the Galli law of 1994.For this reason, Edipower S.p.A. has accrued a provision of 50% of the fee not paid to theRegion, pending the dispute in the meantime initiated before the Regional Court of PublicWaters (TRAP) at the High Court of Public Waters (TSAP) to obtain the right to halve the fee.This dispute is still pending, while the requests relating to the years 1998 to 2001 have becomestatute-barred.In further detail, by way of Sentence no. 2359/09 the TRAP established the right of EdipowerS.p.A. to a reduction of 50% in the fee. This decision was immediately challenged by theLombardy Region before the High Court of Public Waters (TSAP). By way of Sentence no.97/2011 the TSAP effectively rejected the request for halving the fee made by Edipower S.p.A.for 2003 with respect to both the Sermide and Turbigo plants; Edipower S.p.A. has appealedagainst this sentence before the Supreme Court.The Joint Divisions of the Supreme Court (by way of Sentence no. 2596 of February 5, 2013)upheld the appeal made by Edipower S.p.A. against Sentence no. 97/11 of the TSAP.

Half-yearly financial report at June 30, 2013Other informationMore specifically, for the Sermide plant (for 2003) the Supreme Court definitively recognizedthe right to a halving of the fee, as the amount requested by the region, equal to 6,680thousand euro, must be halved (with a saving of 3,340 thousand euro for Edipower S.p.A.).For the Turbigo plant (for 2003) the Supreme Court annulled above-mentioned Sentence no.97/2011 only due to the lack of grounds, but on the other hand did not express an opinion onthe existence of the right to halve the fee as a result of the lack of variation in the temperatureof the water; as a consequence, in order to arrive at a judicial conclusion on this question,which is still under dispute, Edipower S.p.A. will have to initiate an appeal (a remit) before theTSAP by May 5, 2013.140A decision similar to Sentence no. 2359/09 was reached by the TRAP with Sentence no.2360/09 regarding the appeal filed by Edipower S.p.A. against the payment notice for 2006 forthe Sermide plant. In this case too the Lombardy Region immediately filed an appeal againstthe sentence with the TSAP. By way of Sentence no. 98/2011, the TSAP essentially upheld therequest for halving the fee made by Edipower S.p.A. for 2006 for the Sermide plant. TheLombardy Region has filed an appeal against this sentence with the Supreme Court.By way of Sentence no. 14259 of August 8, 2012 the Joint Divisions of the Supreme Courtrejected the appeal of the Region against Sentence no. 98/2011 of the TSAP: the SupremeCourt therefore finally ascertained the existence of the right of the Sermide plant to a halvingof the derivation fee for 2006. In a note dated January 15, 2013, the Region acknowledged -following the ruling of the Supreme Court - the right of Edipower S.p.A. to pay 50% of the fee:the amount of 216 thousand euro requested corresponds to the difference not paid byEdipower S.p.A. which calculated the module in a different way. As a consequence, the amountaccrued in the relative risk provision has been partially released: a provision has beenmaintained that has been calculated considering the “modules” (26 by number) resultingfrom the difference between the 500 modules actually approved and the 526 modulesrecalculated pursuant to article 18 of the Galli Law (no. 36/1994).In 2011, the Lombardy Region significantly increased the fees payable for the use of public water;in particular, with regard to “derivation fees”, Legislative Decree no. 112 of 1998 transferred therelative administrative function (determining and collecting the fee) to regional administrationsand, as a consequence, the Lombardy Region adopted Law no. 26 of 2003, Law no. 34 of 1998 andLaw no. 10 of 2009, this latter amended by Law no. 19 of 2010 and Law no. 22 of 2011.Article 1 of Lombardy Regional Law no. 22 of December 28, 2011 essentially required thedoubling of the fees for the use of public water; in particular, it established that: “starting fromthe fees due for 2012, the single amount of the annual fee due to the Region for the use ofpublic water, as per paragraph 1, shall be calculated as follows:a) for large water derivations for hydroelectric use the fee shall be 30 euro for each kilowattof average annual nominal power;

Half-yearly financial report at June 30, 2013Other informationb) for water derivations with a flow exceeding thirty modules (3,000 liters/second) deployedfor industrial use, including the cooling of thermoelectric plants, the fee shall be34,000.00 euro per module of water;c) for derivations relating to the use of water as per article 3 and to the circumstances as perparagraph 10 of article 34 of Regional Regulation no. 2 of March 24, 2006 (Regulations forthe use of surface and underground waters, the use of waters for domestic purposes,water saving and the reuse of water in implementation of paragraph 1c) of article 52 ofRegional Law no. 26 of December 12, 2003), the unit fees effective in 2011 shall be increasedby 1.5%, not being one of the cases envisaged by subparagraphs a) and b)”.This regional law notes that the above-mentioned increase in fees “shall also be applied toexisting concessionary relationships and users, including the cases of temporary continuationof the use of the plant as per paragraph 4 of article 53-bis of Regional Law no. 26 of December12, 2003 (Regulations for local services of general economic interest. Rules on themanagement of waste, of energy, of the use of the subsoil and of water resources), bydetermining the automatic adjustment of the fee in the corresponding measure”.As a consequence, by way of Decree no. 12929 of December 29, 2011 the Lombardy Regionestablished:1. two different tariffs for hydroelectric use:• small derivations fee: 14.90 €/KW; (annual tariff 2011 = 14.68 €/KW);• large derivations fee: 30.00 €/KW (annual tariff 2011 = 14.68 €/KW);2. two different tariffs for industrial use:• fee for users with a flow < 3 m3/s: 16,866.29 €/module;• fee for users with a flow > 3 m3/s: 34,000 €/module (annual tariff 2011 = 16,617.03€/module).141By way of Manager’s Decree no. 11293 of December 4, 2012, the region updated and publishedthe amounts due for 2013 as public water.As a result, for industrial use, with respect to the Sermide plant the regional administration hasrequested the payment of a fee for the use of public water for 2012 in accordance with the newcriteria for calculating the fees as specified by Regional Law no. 22 of December 28, 2011; thetotal amount requested has been established in 8,500 thousand euro, being 34,000euro/module for 250 modules, as provided by Manager’s Decree no. 12929 of December 29,2011. On the other hand with respect to the Turbigo plant the total amount requested has beenestablished as 13,770 thousand euro, being 34,000 euro/modulo for 405 modules, as providedby Manager’s Decree no. 12929 of December 29, 2011.For hydroelectric use, with respect to the Mese - Chiavenna unit the regional administrationhas requested the payment of a fee for the use of public water for 2012 in accordance with the

Half-yearly financial report at June 30, 2013Other informationnew criteria for calculating the fees as specified by Regional Law no. 22 of December 28, 2011;the total amount requested has been established in approximately 690 thousand euro, being30 €/KW for 22,943.73 KW, as provided by Manager’s Decree no. 12929 of 2011. In a similar way,the total amount requested for the Mese - Gravedona unit for 2012 has been established by theRegion in approximately 220 thousand euro, being 30 €/KW for 7,290.14 KW, while for the Mese- Asta Liro unit the total amount requested has been established in approximately 3,115thousand euro, being 30 €/KW for 103,821.60 KW.An appeal will be made against all the above regional regulations before the Milan TRAP toascertain whether there is the right to have the amount due halved, and at the same time arequest will be made to the TRAP to raise a question of the constitutional legitimacy ofRegional Law no. 22/2011 before the Constitutional Court.Similar requests have been received, again for hydroelectric use, relating to 2013.142In further detail, the total amount requested for the Mese - Chiavenna plant wasapproximately 690 thousand euro, being 30 €/KW for 22,943.73 KW; for the Mese - Gravedonaplant the total amount requested has been established as approximately 220 thousand euro,being 30 €/KW for 7,290.14 KW; for the Mese - Asta Liro plant the total amount requested hasbeen established as approximately 3,160 thousand euro, being 30 €/KW for 103,821.6 KW.An appeal will be made against all the above regional regulations before the Milan TRAP toobtain the right to pay the fee by only considering the increase arising from the plannedinflation rate compared to the previous year and the resulting right to pay only 50% of theamount requested by the Region. At the same time a request will be made to the TRAP to raisea question of the constitutional legitimacy of Regional Law no. 22/2011 before theConstitutional Court.Regarding the hydroelectric plants, before Lombardy Regional Law no. 22/2011 becameeffective, between the end of 2008 and the first few days of 2009 certain notifications arrivedfrom the Region of Lombardy demanding the payment of fees for the use of public waterallegedly not paid for hydroelectric plants situated in the regional territory. All thesenotifications have been challenged. Following this the Region acknowledged that EdipowerS.p.A.’s assertions were grounded in 23 out of 28 disputes and accordingly cancelled therelative payment notices. In December 2009, the Region of Lombardy served three otherpayment injunctions, of which two have been appealed against before the TRAP wherejudgment is pending, while one has been revoked by the Region on the basis of the company’sdefense arguments.Between October and December 2010 the Region of Lombardy served seven notices (sixassessment notices and one injunction) for the alleged failure to pay the fee and the

Half-yearly financial report at June 30, 2013Other informationadditional regional tax, five of which have been cancelled by the Region on the basis oftimely objections. Appeals have been made against the other notices. The amount indispute is 0.3 million euro.By way of a payment notice served on November 25, 2011, Equitalia (on behalf of the Region ofLombardy) demanded Edipower S.p.A. to pay the sum of 26,742 thousand euro. In truth, sincea large part of these assessments arose from payment/assessment notice injunctions(referring to derivation fees) which the Region had already revoked, while in other cases theamount had already been paid to the Region, on an application for internal revocation made byEdipower S.p.A. the Region partially provided relief on the payment notice (with the exceptionof the injunction relating to the assessment notice for additional regional tax, for 2005, for anamount of 798 thousand euro: an appeal against this injunction has been filed with the TaxCommission for the part of the payment notice relating to taxes and with the TRAP for the partrelating to the fees); by way of an order dated May 15, 2013, the TRAP upheld the appeal for thepart of the payment notice relating to the fees (the reasons have yet to be filed), ordering theRegion of Lombardy to pay legal expenses of 5 thousand euro.In three separate sentences the Venice TRAP rejected the appeals raised by Edipower S.p.A. toascertain the correct identification of the date from which the amount of the hydroelectric feesurcharges should be updated, after the disapplication of the pertinent ministerial decrees.More specifically, by way of Sentence no. 577 of March 1, 2012 (revision of the fee surcharges duefrom 2004 to 2009) the TRAP ordered Edipower S.p.A. to pay 132 thousand euro to theConsortium set up between the municipalities of the mountain catchment basin (BIM) ofLivenza Pordenone, plus legal interest, as well as to pay 3 thousand euro to the Ministry for theEnvironment and 5 thousand euro to the above Consortium as compensation for legal expenses;by way of Sentence no. 580 of March 1, 2012 (revision of the fee surcharges due from 2004 to2009) the TRAP ordered Edipower S.p.A. to pay 3 thousand euro to the State Property Office ascompensation for legal expenses; by way of Sentence no. 959 of April 17, 2012 (revision of the feesurcharges due from 2004 to 2009) the TRAP ordered Edipower S.p.A. to pay a total of 13thousand euro to the Tagliamento BIM, the National Federation of BIM Consortia and theMinistry for the Environment and the Protection of the Land and Sea as compensation for legalexpenses. Appeals have been filed against these sentences before the competent TSAP of Rome.143On April 2, 2013, Equitalia (on behalf of the Region of Lombardy) served a payment notice onEdipower S.p.A. regarding the regional surcharge for 2007 for the Sermide and Turbigo plantsfor a total of 724 thousand euro (of which 277 thousand euro for the Sermide plant and 447thousand euro for the Turbigo plant). The amounts requested include the portions not paid byEdipower S.p.A. relating to the halving and difference in modules due to the different unit ofmeasure for the modules (industrial modules/100 l/s modules). The regional payment notice

Half-yearly financial report at June 30, 2013Other informationwas firstly suspended for precautionary reasons by the Region by way of a measure dated April17, 2013, and in any case a timely appeal against the demand has been filed before thecompetent tax commission.In establishing the amount to be provided in the provision for risks and charges of EdipowerS.p.A., account was taken of the expected costs that may derive from litigation and any otherdisputes arising at the company’s expense emerging during the period and a revision of theestimates of positions arising in previous periods, including those relating to Eurogen S.p.A.(which was merged into Edipower S.p.A. with effect from December 1, 2002), after also takinginto consideration the warranties provided by Enel S.p.A. as part of the agreement for thepurchase of Eurogen S.p.A. signed by Edipower S.p.A. and Enel S.p.A. on March 27, 2002.Reference is made in particular to the dispute with the Ministry of Public Works/Ministry ofFinance and the State Property Office of Bergamo in respect of the payment request ofAugust 25, 2000 for 30,683,082,000 lire as water fees. These warranties remain confirmedalso after the transaction between Edipower S.p.A. and Enel S.p.A. completed in 2006.144Brindisi bunkerThe investigations that led to the sequestration of the Brindisi bunker (owned by Enel) havebeen formally closed; the head of the Brindisi power station has been sent for trial amongstothers. Having civil responsibility, Edipower S.p.A. has been implicated in the relative courtcase by the parties instituting the action. A release notice for the seized areas was notified onMay 13, 2010 as part of the criminal proceeding. In a ruling of March 8, 2013, the courtacquitted Edipower S.p.A.’s power station head for the offence with which he was charged“because there is no case to answer”.San Filippo del Mela appraisal enquiryBy way of a provision dated May 8, 2005, the Public Prosecutor of Barcellona Pozzo di Gottoordered Edipower S.p.A. representatives for the San Filippo del Mela plant to appear at the planton March 11, 2005 to carry out an appraisal in the presence of the court experts appointed by thePublic Prosecutor for the purpose of performing tests on the emission outflows and inflowsarising from the company’s activity (and that of the local refinery), on their nature andharmfulness, on any effects of the pollutants on the soil, on agriculture and on health and on anymeasures needed to take the emissions to within the limits of normal tolerance. Appraisalenquiries began on that date and as of today have been completed, although they are stillcovered by secrecy regulations. The proceeding has been initiated against unknown persons.There are no other elements (suspected criminal offences, statements reported, etc.). In thepresent situation it appears improbable that a liability will arise.

Half-yearly financial report at June 30, 2013Other informationTurbigo asbestosA criminal proceeding is currently pending before the Court of Milan, currently at the full hearingstage, against a number of former ENEL executives who were employed at the Turbigo plantbetween 1973 and 1975 as the plant foreman, department manager, general manager andchairman of the board of directors and are charged with negligent homicide (article 589 of theItalian criminal code) for having culpably violated the rules in relation to prevention of workplaceaccidents and occupational illness, causing detriment to eight former employees (one of whomdoes not fall under the scope of Edipower S.p.A.). The injury took the form of asbestos-relatedtumors of allegedly work-related origin, all of which ended in the death of the personsconcerned.Edipower S.p.A. has been summonsed at the request of the civil parties as follows as beingallegedly responsible from a civil standpoint:• on April 23, 2013 by Medicina Democratica Onlus and the Italian association for asbestosclaims;• on April 24, 2013 by the state accident insurance body INAIL;• on April 30, 2013 by the heirs of Panza;• on June 5, 2013 by the heirs of Bertoni, Marcoli, Misin, Ranzani and Sommariva.The next hearing has been set for October 30, 2013.145* * *The following information is provided in connection with the main litigation of a fiscal nature.A2A S.p.A. – Assessments for IRES, IRAP and VAT purposes for fiscal 2005The Regional Department of the Lombardy tax office in Milan notified A2A S.p.A (formerlyASM Brescia S.p.A.) on December 23, 2010 of IRES, IRAP and VAT tax assessments for fiscal2005 as a result of a general tax audit carried out in 2008 by the Brescia 2 tax office into thattax year.These assessments are based on the Regional Department’s claim that the company has notfulfilled its direct tax and VAT obligations; on this basis, additional IRES, IRAP and VATpayments are claimed as well as penalties and interest amounting to a total of 3.3 million euro.Appeals against each of these assessments have been filed with the relevant TaxCommissioners.On the same date, the Regional Department served notice of IRES assessments (level 2 notice)for fiscal 2005 on A2A S.p.A. as the consolidating company of Aprica S.p.A. and A2A Reti GasS.p.A..

Half-yearly financial report at June 30, 2013Other informationThe sum demanded was paid for the notice served as the consolidating company of A2A RetiGas S.p.A., thereby definitively closing the case.The notice served as the consolidating company of Aprica S.p.A. was, however, the subject ofan appeal as part of the dispute currently in course for the level I notice, received in 2010 forthe same reasons regarding Aprica S.p.A..On July 1, 2013 A2A S.p.A. came to a settlement with the Tax Revenue Office putting an end toall fiscal claims.A2A Trading S.r.l. - Assessments for VAT Green Certificates regarding 2004-2010On December 23, 2009 the Milan Tax Revenue Office served A2A Trading S.r.l. with a VAT taxassessment regarding fiscal 2004. This notice cited the company’s failure to invoice taxabletransactions and required the company to pay additional VAT as well as penalties and interestamounting to a total of 3.3 million euro.146In particular, under this assessment the Tax Revenue Office served a penalty on A2A TradingS.r.l. for not having invoiced the tollee (Edipower S.p.A.) for the Green Certificates allegedlytransferred between the two.After appropriate examination, which also included the other tollers, it was considered that theTax Revenue Office’s conclusions could not be accepted. In fact under tolling arrangementstollers are on the one hand the owners of the raw materials, including fuel, that they supply to thetollees to produce electricity, and on the other are the “ab origine” owners of the electricityproduced. The delivery of Green Certificates to tollees by tollers can in no way be considered tobe the transfer of title of such.A2A Trading S.r.l. has therefore not committed any breach of law and accordingly no provisionhas been made in the financial statements for this matter.On December 16, 2010, the Milan Tax Revenue Office served notice of a VAT tax assessmentregarding fiscal 2005 and on October 31, 2011 notice of a VAT tax assessment regarding taxyear 2006 for the same reasons, with the resulting demands for additional value added taxplus penalties and interest totaling 5.2 million euro and 11.2 million euro respectively. As in thecase of 2004, A2A Trading S.r.l. has not committed any breach of law and accordingly noprovision has been made in the financial statements for this matter.A2A Trading S.r.l. has filed an appeal with the relevant bodies against both notices, requestingthat the claim for additional taxes be fully annulled.The Milan Provincial Tax Commission has upheld the company’s appeals for all years underdispute.

Half-yearly financial report at June 30, 2013Other informationOn March 5, 2013 the Tax Revenue Office stated its acceptance, for 2006, to the sentence forthe part relating to the dispute regarding the green certificates, and on May 6, 2013 notifiedthat it was waiving its appeal and applying for a dismissal of the case for 2004 and 2005.It should be noted that following the request for documentation relating to the GreenCertificates falling within the scope of the same tolling arrangement for fiscal 2007 to 2010, onOctober 28, 2011 the Milan Unit of the Finance Police served a tax audit report containing thesame violations of failure to invoice taxable transactions relating to 2007, 2008 and 2010. Atthe present date no formal assessment notice has been served.A2A Reti Elettriche S.p.A. - registration tax assessment for adjustments to the valueof the sale of the “protected categories” business to A2A Energia S.p.A.On February 16, 2010, the Milan 3 Office of the Tax Revenue Office served notice of thecorrection and settlement of registration tax due on the sale of the “protected categories”business from AEM Elettricità S.p.A. (now A2A Reti Elettriche S.p.A.) to AEM Energia S.p.A.(now A2A Energia S.p.A.) on February 1, 2008. In an assessment notice, the tax officecontested the figure disclosed for “goodwill” and as a result the corresponding registrationtax payable. The company attempted to reach a tax settlement but since no agreement wasreached, has challenged the notice served by filing an appeal.147A2A Reti Gas S.p.A. – COSAP Municipality of Milan for the years from 2003 to 2011On December 27, 2011 the Municipality of Milan served payment notices for COSAP (a fee paidfor occupying public spaces and areas) for the years 2003 to 2011. An application was filed forannulment of these notices by internal review, which the Municipality rejected. The companyfiled a summons with the Court of Milan against this rejection on July 11, 2012 and onSeptember 25, 2012 filed an appeal with the regional administrative court.Aprica S.p.A. - General IRES/IRAP/VAT audit for fiscal 2007On January 10, 2011 the Tax Revenue Office (Brescia 2 Office) commenced a general tax auditof Aprica S.p.A. for IRES, IRAP and VAT purposes for tax year 2007. The audit was completedon February 8, 2011.The findings mainly related to violations regarding direct taxation.On September 14, 2011 a tax assessment notice was served reporting the findings notedduring the audit which the company accepted, paying the additional tax assessed. In respect ofthe disallowed items arising from mistakes in applying the accruals principle, on March 18,2013 the company filed a request for the repayment of the additional tax paid in the year inwhich the costs should have been charged for tax purposes.

Half-yearly financial report at June 30, 2013Other informationAprica S.p.A. - General IRES/IRAP/VAT audit for fiscal 2009On January 24, 2013 the Finance Police - Brescia Unit commenced a general tax audit of ApricaS.p.A. for IRES, IRAP and VAT purposes for fiscal 2009 and for fiscal 2010, an audit only toensure that the requirements of Decree Law no. 78/2009 (the “Tremonti ter”) had beenfulfilled. The audit is currently in progress.Aprica S.p.A. - Technical audit of the Brescia waste to energy plantOn March 7, 2013, the Brescia Customs Agency commenced a technical audit of the Bresciawaste to energy plant owned by Aprica S.p.A.. The audit is currently in progress.A2A S.p.A. (merging company of AMSA Holding S.p.A.) – Assessments for VATpurposes for fiscal years 2001 to 2005In early 2006, the Italian Finance Police - Lombardy Regional Unit, Milan - carried out an auditof AMSA Holding S.p.A. (now A2A S.p.A.) for VAT purposes for fiscal years 2001 to 2005.148The audit ended with the issue of a final report contesting the legitimacy of the ordinary VATrate, in place of the special rate, applied by suppliers for waste disposal and plantmaintenance, as well as the subsequent deduction made after the invoices issued for theseservices were duly paid.The report was followed by formal notices of assessment from the Tax Revenue Office (Milan3 Office) for each year audited; appeals were then filed with the Provincial Tax Commissionwithin the term provided by law.The appeals for 2001 and for 2004 and 2005 were discussed on January 25, 2010 and onFebruary 17, 2010 respectively, with a favorable outcome for the company in all cases. The TaxRevenue Office appealed against the verdict of the first judges. The Regional Tax Commissionrejected this appeal for all three years, 2001, 2004 and 2005.For 2011 the Tax Revenue Office filed an appeal with the supreme court against which AMSAHolding S.p.A. filed a cross-appeal on November 9, 2012.The outcomes of the 2002 and 2003 disputes were also favorable for the company but the TaxRevenue Office filed an appeal against both sentences. The appeal for 2002 was discussed onNovember 30, 2010, and on February 23, 2011 the Milan Regional Tax Commission issued itsruling, overturning the initial verdict and upholding the Tax Revenue Office’s appeal on almostall counts with the exception of the hazardous waste category. The company filed an appealwith the Supreme Court for 2002. For 2003 the appeal made by the Tax Revenue Office wasdiscussed on November 7, 2011 before the Regional Tax Commission which rejected it with asentence filed on November 11, 2011.

Half-yearly financial report at June 30, 2013Other informationThe Tax Revenue Office has not appealed to the supreme court and the sentence has becomefinal.Plurigas S.p.A. - Excise duty audit for tax years 2009, 2010 and 2011On May 25, 2011 the Finance Police - Milan Tax Unit - began a tax audit into Plurigas S.p.A. inconnection with excise duty for fiscal years 2009, 2010 and 2011 limited to the date of access.The audit was completed on October 20, 2011 with the issue of a tax audit report describingirregularities in the compilation of the statements for the annual consumption of natural gas for2009 and 2010 and the inaccurate compilation of Intrastat lists for 2010. At the present date noformal assessment notice has been served.Edipower S.p.A. - VAT audit for fiscal 2004 to 2007In 2008 the Messina Customs Office performed a tax audit on the company to check thecorrectness for VAT purposes for fiscal years 2004 to 2007 of the commercial purchases bythe tollers of the fuel that is used in the San Filippo del Mela thermoelectric power station forthe production of electricity. More specifically, the aim of the audit was to check whether VATwas charged on the excise duty discharged by the tollers after the purchase of the fuel. In thetax audit report the Customs Office claimed additional tax amounting in total to 5.57 millioneuro plus penalties of the same amount. Edipower S.p.A. filed its defensive arguments againstthe tax audit report with the Customs Office and the Tax Revenue Office having jurisdictionfor the recovery of VAT.149By way of a notice served on December 29, 2009 relating to fiscal year 2004 the Milan TaxRevenue Office assessed VAT on excise duty and interest for a total of 1.98 million euro pluspenalties of 2.6 million euro. After filing an application for annulment by internal review and,subsequently, an application for settlement, without receiving any positive response from theTax Revenue Office, in 2010 Edipower S.p.A. filed an appeal against the assessment notice. Theappeal was upheld by the Milan Provincial Tax Commission which ordered the assessment tobe cancelled. The Tax Revenue Office has not appealed and accordingly the sentence in thecompany’s favor has become final.On December 14, 2010 the Milan Tax Revenue Office served Edipower S.p.A. with a similarassessment notice for additional VAT on excise duty plus penalties relating to fiscal 2005, inwhich it made a demand for VAT and interest of 1.9 million euro, arguing the same reasonsused in the assessment notice relating to 2004. In the same assessment, the Tax RevenueOffice also provided notification of the result of the partial audit of fiscal 2005, claimingadditional IRES and IRAP of 0.62 million euro plus accumulated penalties in both cases of 1.3million euro.

Half-yearly financial report at June 30, 2013Other informationThe company filed an application for settlement against this assessment which was notaccepted by the Tax Revenue Office; it accordingly filed an appeal, requesting the TaxCommission to order the total cancellation of the notice. In October 2011 the Tax RevenueOffice notified a provision by internal review partially cancelling the subject assessment,upholding certain of the defensive arguments used by Edipower S.p.A. in connection with thecosts relating to 2005 and considerably reducing the additional amounts of IRES and IRAPclaimed. The Milan Provincial Tax Commission fully upheld the company’s argumentsconcerning VAT on excise duty and partially upheld those regarding IRES and IRAP, orderingthe partial cancellation of the assessment.The Tax Revenue Office filed an appeal but only concerning IRES and IRAP; as a result,therefore, the dispute regarding VAT on excise duty for 2005 has been closed by means of an“internal judgment”.Edipower S.p.A. - VAT assessments Green Certificates 2004 to 2010150On December 29, 2009 the Milan Tax Revenue Office served Edipower S.p.A. a VATassessment notice regarding fiscal 2004 and having as its object the alleged sales of GreenCertificates by tollers for the 2004 “green” requirements. This assessment notice was notpreceded by an audit at the company’s premises; on the contrary, the Tax Revenue Office’sinformation and assumptions were taken from the assessments carried out at the tollers’premises in 2008 and 2009. In particular, in the assessment in question the Tax Revenue Officesanctioned Edipower S.p.A. for not having used the reverse charge procedure given thatinvoices were not received for the alleged sales of the Green Certificates which in the TaxRevenue Office’s opinion the tollers had made in 2005 to meet their obligations for theprevious year. The amount of the penalty inflicted was 6.5 billion euro.Following opportune analyses which also included the tollers, it was considered that the TaxRevenue Office’s conclusions could not be accepted. In fact under the tolling arrangements theowners of the electricity produced by Edipower S.p.A. are “ab origine” the tollers, who are theowners of the fuel used. Under these arrangements each toller is responsible for theoperational and economic cost of obtaining the Green Certificates that relate to that toller onthe basis of the electricity produced according to his indications and production plans, handingthem over to the Manager via Edipower S.p.A.. Under the tolling arrangements and therequirements of law there is no transfer of the ownership of the Green Certificates between thetollers and Edipower S.p.A. and no fee passes between the parties; accordingly no transaction iscarried out for VAT purposes. For this reason no provision has been made in the financialstatements for this matter.

Half-yearly financial report at June 30, 2013Other informationOn December 14, 2010 the Tax Revenue Office served a further VAT assessment notice regardingfiscal 2005 having as its object the alleged sales of Green Certificates by tollers for the 2005“green” requirements. The findings of the Tax Revenue Office were the same as those alreadynotified in the assessment for 2004 and the penalty inflicted was 4.6 million euro.In August 2011 the Milan Finance Police carried out an official tax audit of Edipower S.p.A.having as its object the alleged sales of Green Certificates from 2006 to 2010. Thisinvestigation was started as the result of a tax audit completed earlier at one of the tollers andwas the continuation of the audits already started by the Tax Revenue Office for 2004 and2005 described above.In their tax audit report issued on the completion of the investigations on October 21, 2011, theofficers stated their conviction that the Green Certificates handed over by the tollers to dischargetheir obligations represent remuneration for Edipower S.p.A. as an addition to the tolling fee. Forthis reason the auditors stated that Edipower S.p.A. should have used the reverse chargeprocedure for the Green Certificates received from the tollers and should have recharged thecosts incurred in this way on their behalf. For this double violation the Finance Police assessedunsettled VAT, for the years from 2006 to 2010, in the amount of 54.4 million euro and penalties ofthe same amount. Following the issue of the tax audit report, at the end of December 2011 theMilan Tax Revenue Office issued an assessment notice for 2006 containing a demand for VAT andrelated penalties for a total of 61.7 million euro and a penalty notice of 12.3 million euro.151On the basis of the reasons described in detail above, it is considered that the claims regardingVAT on excise duty and VAT on Green Certificates are unsubstantiated from a subjectivestandpoint and on the merits, and accordingly no provision has been made in the financialstatements for this matter.Edipower S.p.A. has made timely appeal to the appropriate authorities against all the noticesserved, requesting the total cancellation of the demands for taxes. The assessment notice for2005 was discussed in the hearing of May 25, 2012, during which the judges upheld thecompany’s appeal. On November 26, 2012 a hearing was held to discuss the appeal relating to2004; the filing of the sentence is awaited.In August 2012 Equitalia served a payment notice for the recovery of one third of the VATrelating to 2006. The company has filed an application for the suspension of payment againstthis demand and this request was upheld in the hearing of October 23, 2012.On April 9, 2013 the hearing for the discussion of the appeal for 2006 was held (assessmentnotice for VAT and penalties). The Tax Revenue Office filed an application for the dismissal ofthe case for the lack of issues to dispute together with the papers for the completecancellation of the assessments served for 2006. As a result, the judge dismissed the case.

Half-yearly financial report at June 30, 2013Other informationIn April 2013, the Tax Revenue Office additionally served the company notice of the completecancellation of the demand for penalties for 2006 by internal procedure. These steps confirmearlier statements made verbally by officials of the Tax Revenue Office to the company’slawyers, concerning the fact that the administration had taken the decision to completelycancel all the VAT assessments served on tollers and tollees concerning Green Certificates.Ecodeco S.r.l. (now A2A Ambiente S.r.l.) – Assessment for VAT purposes for fiscal2003On November 15, 2012 the Milan Tax Revenue Office notified that it had filed an appeal with theSupreme Court against the sentence of the Lombardy Regional Tax Commission which upheldthe company’s arguments concerning the dispute with the Finance Police over VAT for a totalof 48,000 euro plus interest and penalties.On December 23, 2012 the company filed a cross appeal with the Supreme Court.152Ecodeco S.r.l. (now A2A Ambiente S.r.l.) – Assessment for VAT purposes for fiscal2006 and 2007On July 5 and 6, 2010 the Milan Tax Revenue Office 3 served four notices of VAT assessments forthe years 2006 and 2007 contesting the reduced VAT rates applied to the disposal of RefuseDerived Fuel (RDF). This claim was accompanied by a demand for additional VAT of 472 thousandeuro for 2006 and 496 thousand euro for 2007, in both cases plus penalties and interest.Ecodeco S.r.l. filed an appeal with the appropriate authorities against both tax assessmentnotices. The appeal was discussed on March 22, 2012.On May 15, 2012 the Milan Provincial Tax Commission (CTP) upheld the appeal.On December 10, 2012 the Milan Tax Revenue Office filed an appeal with the Milan Regional TaxCommission (CTR) against the sentence in the company’s favor. On February 8, 2013 thecompany filed a cross appeal. On July 9, 2013, the Milan CTR rejected the appeal filed by theTax Revenue Office for three of the four notices.Discussion on the fourth assessment notice relating to 2006 VAT for an amount of 157,435.00euro has been assigned to another section of the Milan CTR and will be discussed on October24, 2013.Ecodeco S.r.l. (now A2A Ambiente S.r.l.) - Assessment for IRES/IRAP/VAT purposesfor fiscal 2007On August 17, 2011 notices of IRES and IRAP tax assessments were served, contesting amongother things the deductibility of the charge to a provision for risks, with the request for

Half-yearly financial report at June 30, 2013Other informationadditional IRES and IRAP taxes of 233 thousand euro plus penalties and interest, and smallerfindings.On May 21, 2012 the Milan Provincial Tax Commission partially upheld the appeal recognizingthe deductibility of the utilization of the taxed provision for risks and confirming the moreminor findings.On August 17, 2012 a notice of VAT assessment was served contesting the recovery of VAT dueto the effect of failing to apply the pro-rata deductibility on exempt revenues of cash poolinginterest income, with the resulting demand for additional taxes of 284 thousand euro pluspenalties and interest.The company filed an application for suspension and an application for discussion in a publichearing with the Second Provincial Department of the Tax Revenue Office of Milan onNovember 15, 2011 by means of registered letter and an appeal with the Milan Provincial TaxCommission on December 6, 2011.The Milan Provincial Tax Commission partially upheld the appeal by way of a sentence filed onMay 21, 2012..153On November 14, 2012 the company was served a payment notice for 365 thousand eurowhich was settled on January 11, 2013. On January 8, 2013 the Tax Revenue Office filed anappeal and on March 8, 2013 the company filed a cross appeal.On May 3, 2013 a further payment notice for 252 thousand euro was served which was paid onMay 25, 2013.ASRAB S.p.A - Assessments of first and second level for IRES and IRAP purposes forfiscal 2004Between 2007 and 2009 notices of IRES (first and second level) and IRAP tax assessmentswere served for the tax year 2004 contesting certain items of amortization and depreciationcharged against taxable income along with costs relating to “assignment fees” that thecompany pays each year to Co.s.r.a.b., with the resulting demand for additional IRES and IRAPtaxes of 355 thousand euro plus penalties and interest.The company filed an appeal against the second level notice with the Milan Provincial TaxCommission on May 20, 2011. The Commission upheld the request for suspension put forwardby the company and in May 2011 upheld the appeal, cancelling the assessment relating to the“assignment fees”. On October 1, 2012 the company signed an application for a settlementwith the Biella Tax Revenue Office to close the dispute on a definitive basis.

Half-yearly financial report at June 30, 2013Other informationFollowing this the company and the Tax Revenue Office asked for the dispute to be closed asfar as the outstanding matters are concerned. The dispute is therefore definitively closed.ASRAB S.p.A - Assessments for IRES and IRAP purposes for fiscal 2005On March 10 and 25, 2011 notices of IRES and IRAP tax assessments were served contestingcertain items of amortization and depreciation charged against taxable income along with costsrelating to “assignment fees” that the company pays each year to Co.s.r.a.b., with the resultingdemand for additional IRES and IRAP taxes of 515 thousand euro plus penalties and interest.The company filed an appeal with the Biella Provincial Tax Commission on May 20, 2011. OnSeptember 5, 2011 the Biella Commission suspended the execution of the notice subject to thelodging of a guarantee, represented by a surety policy for 50% of the amount in dispute; thispolicy was filed with the Biella Tax Revenue Office on September 28, 2011.On October 1, 2012 the company signed an application for a settlement with the Biella TaxRevenue Office to close the dispute on a definitive basis.154Following this the company and the Tax Revenue Office asked for the dispute to be closed asfar as the outstanding matters are concerned. The dispute is therefore definitively closed.ASRAB S.p.A - Assessments for IRES and IRAP purposes for fiscal 2006The company was served notices of IRES and IRAP tax assessments between June 10 and 17,2011 contesting the deductibility of certain items of amortization and depreciation chargedagainst taxable income along with costs relating to “assignment fees” that the company payseach year to Co.s.r.a.b., with the resulting demand for additional IRES and IRAP taxes of 729thousand euro plus penalties and interest.The company filed an appeal against these assessments with the Biella Provincial TaxCommission on October 18, 2011.On November 16, 2011 notification arrived of the complete cancellation of the assessment asthe amount of the assignment fees was incorrectly stated and on December 9, 2011 a newassessment notice was served replacing the previous assessment, against which the companyfiled an appeal with the Provincial Tax Commission within the terms of law.On October 1, 2012 the company signed an application for a settlement with the Biella TaxRevenue Office to close the dispute on a definitive basis.Following this the company and the Tax Revenue Office asked for the dispute to be closed asfar as the outstanding matters are concerned. The dispute is therefore definitively closed.

Half-yearly financial report at June 30, 2013Other informationASRAB S.p.A - Assessments for IRES and IRAP purposes for fiscal 2007Ecodeco S.r.l. and ASRAB S.r.l. were served notices of IRES and IRAP tax assessments betweenOctober 21 and 24, 2011 contesting the deductibility of certain items of amortization anddepreciation charged against taxable income along with costs relating to “assignment fees”that the company pays each year to Co.s.r.a.b., with the resulting demand for additional IRESand IRAP taxes of 920 thousand euro plus penalties and interest.On January 12, 2012 a summons notice was served at the Brescia Provincial Tax Commission.The company applied for judicial settlement at the Office in order to resolve the dispute andabandon the continuation of the litigation.On October 1, 2012 the company signed an application for a settlement with the Biella TaxRevenue Office to close the dispute on a definitive basis.Following this the company and the Tax Revenue Office asked for the dispute to be closed asfar as the outstanding matters are concerned. The dispute is therefore definitively closed.1556) Environmental certificates as contingent assetsThe Group had an excess of environmental certificates (Emission Allowances and WhiteCertificates) at June 30, 2013.* * *The Company has elected for the option available under article 70, paragraph 8 and article 71,paragraph 1-bis of the Issuers’ Regulations and accordingly has elected to make an exceptionto the requirement to make an information document available to the public in the event ofsignificant mergers, spin-offs, share capital increases by the contribution of assets in kind,acquisitions or disposals.

Attachments to thenotes to the Halfyearlyfinancial report

Half-yearly financial report at June 30, 20131 - Statement of changes intangible assetsTangible assets Residual Changes during the periodMillions of eurovalueat 12 31 2012 Investments Categorychanges158Land 249Buildings 1,064 1 2Plant and machinery 4,816 32 51Industrial and commercial equipment 40 2Other assets 58 5 2Landfills 14 4Assets held under concession –Construction in progress and advances 109 44 (55)Leasehold improvements 13 1Leased assets 7Total tangible assets 6,370 89 –Tangible assets Residual Edipower Changes during the yearMillions of euro value first-timeat 12 31 2011 consolidation Investments Category Other changeschangesGrossAcc.value depreciationLand 244 4 2 (1)Buildings 818 305 4 4 (22) (3)Plant and machinery 3,130 1,300 110 98 959 (408)Industrial and commercial equipment 39 2 5 (1)Other assets 59 2 10 3Landfills 11 5 1Assets held under concession 297 418 (1,125) 410Construction in progress and advances 66 80 133 (107) (61)Leasehold improvements 12 3Leased assets 9 1 (3) 1Total tangible assets 4,685 2,107 275 – (253) –

Half-yearly financial report at June 30, 20131 - Statement of changes in tangible assetsChanges during the periodOther changes Write-downs Disposals/Sales Amortization TotalchangesGrossAcc. Asset Acc.in thevalue depreciation value depreciationperiodResidualvalueat 06 30 2013(2) (1) (3) 246(6) 2 (20) (21) 1,043(16) 3 (5) 2 (177) (110) 4,706(2) – 40(1) 1 (7) – 584 (1) (2) 5 19– –2 (9) 100(1) – 13(1) (1) 6(18) 5 (2) (6) 3 (210) (139) 6,231159Changes during the yearWrite-downs Coriance sale Disposals/Sales Amortization TotalchangesAsset Acc. Asset Acc.2012value depreciation value depreciationResidualvalueat 12 31 20125 249(1) (1) (40) (59) 1,064(40) 18 (351) 386 4,816(1) 1 (5) (1) 40(5) 4 (15) (3) 58(3) 3 14(715) –(1) (1) (37) 109(2) 1 13(1) (2) 7(2) (1) – (47) 23 (417) (422) 6,370

Half-yearly financial report at June 30, 20132 - Statement of changes inintangible assetsIntangible assets Residual Changes during the periodMillions of eurovalue atat 12 31 2012 Investments Categorychanges160Industrial patent and intellectual property rights 35 3 3Concessions, licences, trademarks and similar rights 752 21 3Goodwill 569Assets in progress 24 5 (6)Other intangible assets 13Total intangible assets 1,393 29 –Intangible assets Residual Edipower Changes during the yearMillions of euro value first-timeat 12 31 2011 consolidation Investments Category Reclassifications/other changeschangesGrossAcc.value amortizationIndustrial patent and intellectual propertyrights 21 4 10 18 1Concessions, licences, trademarks andsimilar rights 864 51 4 (1)Goodwill 580 4 (4)Assets in progress 25 2 20 (22) (1)Other intangible assets 13 3Total intangible assets 1,503 6 85 – (2)

Half-yearly financial report at June 30, 20132 - Statement of changes in intangible assetsChanges during the periodReclassifications/other changes Disposals Write-downs Amortization TotalchangesGross Acc. Asset Acc.in thevalue amortization value amortizationperiodResidualvalue at06 30 2013(8) (2) 33(6) 3 (21) – 752– 569(1) (2) 22(3) (2) (5) 8(4) (6) 3 (31) (9) 1,384161Changes during the yearCoriance sale Disposals Write-downs Amortization TotalchangesGross Acc. Asset Acc.2012value amortization value amortizationResidualvalueat 12 31 2012(19) 10 35(136) 21 (8) 7 (50) (112) 752(11) (11) 569(3) 24(1) 1 (3) – 13(148) 22 (8) 7 (72) (116) 1,393

Half-yearly financial report at June 30, 20133 - List of companies included in theconsolidated financial statementsCompany name Registered office Currency Sharecapital(thousands)162Consolidation scopeA2A Reti Gas S.p.A. Brescia Euro 445,000A2A Reti Elettriche S.p.A. Brescia Euro 520,000AMSA S.p.A. Milan Euro 52,179A2A Calore & Servizi S.r.l. Brescia Euro 150,000Selene S.p.A. Brescia Euro 3,000A2A Servizi alla Distribuzione S.p.A. Brescia Euro 300A2A Energia S.p.A. Milan Euro 1,000A2A Trading S.r.l. Milan Euro 1,000Partenope Ambiente S.p.A. Brescia Euro 120A2A Logistica S.p.A. Brescia Euro 250A2A Ciclo Idrico S.p.A. Brescia Euro 70,000Ecodeco S.r.l. (now A2A Ambiente S.r.l.) Milan Euro 7,469Aspem Energia S.r.l. Varese Euro 2,000A2A Montenegro d.o.o. Podgorica (Montenegro) Euro 300Mincio Trasmissione S.r.l. Brescia Euro 10Aprica S.p.A. Brescia Euro 204,698Assoenergia S.p.A. in liquidation Brescia Euro 126Abruzzoenergia S.p.A. Gissi (Ch) Euro 130,000Retragas S.r.l. Brescia Euro 34,495Aspem S.p.A. Varese Euro 174Varese Risorse S.p.A. Varese Euro 3,624Montichiariambiente S.p.A. Brescia Euro 1,500Ostros Energia S.r.l. in liquidation Brescia Euro 350Camuna Energia S.r.l. Cedegolo (Bs) Euro 900A2A Alfa S.r.l. Milan Euro 100Plurigas S.p.A. in liquidation Milan Euro 800SEASM S.r.l. Brescia Euro 700Proaris S.r.l. Milan Euro 1,875Edipower S.p.A. Milan Euro 1,441,300Ecofert S.r.l. in liquidation S. Gervasio Bresciano (Bs) Euro 100A3A S.r.l. Brescia Euro 10Chi.na.co S.r.l. Roe' Volciano (Bs) Euro 10Elektroprivreda Cnre Gore AD Niksic (EPCG) Niksic (Montenegro) Euro 958,666EPCG d.o.o. Beograd Beograd (Serbia) Dinar RSD 35Zeta Energy d.o.o. Danilovgrad (Montenegro) Euro 12,240For shareholdings in the subsidiaries of the Ecodeco Group reference should be made to attachment 5.

Half-yearly financial report at June 30, 20133 - List of companies included in the consolidated financial statements% Holding Shareholder Valuation methodconsolidated %Groupshareholdingat06 30 2013100.00% 100.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A Reti Gas S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A Energia S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation97.76% 97.76% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation91.60% 91.60% A2A S.p.A. (87.27%)A2A Reti Gas S.p.A. (4.33%)Line-by-line consolidation90.00% 90.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% Aspem S.p.A. Line-by-line consolidation80.00% 80.00% Aprica S.p.A. Line-by-line consolidation80.00% 80.00% A2A S.p.A. Line-by-line consolidation74.50% 74.50% A2A S.p.A. Line-by-line consolidation70.00% 70.00% A2A Trading S.r.l. Line-by-line consolidation70.00% 70.00% A2A S.p.A. Line-by-line consolidation67.00% 67.00% A2A S.p.A. Line-by-line consolidation60.00% 60.00% A2A S.p.A. Line-by-line consolidation56.09% 56.09% A2A S.p.A. Line-by-line consolidation47.00% 47.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation100.00% 100.00% A2A S.p.A. Line-by-line consolidation43.70% 43.70% A2A S.p.A. Line-by-line consolidation100.00% 100.00% EPCG Line-by-line consolidation57.86% 51.00% EPCG Line-by-line consolidation163

Half-yearly financial report at June 30, 20134 - List of shareholdings incompanies carried at equityCompany name Registered office Currency Sharecapital(thousands)164Shareholdings in companies carried at equityPremiumGas S.p.A. Bergamo Euro 120Ergosud S.p.A. Roma Euro 81,448Ergon Energia S.r.l. in liquidation Milan Euro 600Metamer S.r.l. San Salvo (Ch) Euro 650Bergamo Servizi S.r.l. Sarnico (Bg) Euro 10SET S.p.A. Toscolano Maderno (Bs) Euro 104Azienda Servizi Valtrompia S.p.A. Gardone Valtrompia (Bs) Euro 6,000Ge.S.I. S.r.l. Brescia Euro 1,000Centrale Termoelettrica del Mincio S.r.l. Ponti s/Mincio (Mn) Euro 11Serio Energia S.r.l. Concordia s/Secchia (Mo) Euro 1,000Visano Soc. Trattamento Reflui Scarl Brescia Euro 25LumEnergia S.p.A. Lumezzane (Bs) Euro 300Sviluppo Turistico Lago d'Iseo S.p.A. Iseo (Bs) Euro 1,616ACSM-AGAM S.p.A. Monza Euro 76,619Futura S.r.l. Brescia Euro 2,500Prealpi Servizi S.r.l. Varese Euro 5,451COSMO Società Consortile a Responsabilità Limitata Brescia Euro 100G.Eco S.r.l. Treviglio (Bg) Euro 500Dolomiti Energia S.p.A. Rovereto (Tn) Euro 411,496Rudnik Uglja Ad Pljevlja Pljevlja (Montenegro) Euro 21,493Ecodeco Group consolidation (1)Total shareholdings(1) For shareholdings in the Ecodeco Group reference should be made to attachment 5.

Half-yearly financial report at June 30, 20134 - List of shareholdings in companies carried at equityHolding Shareholder Carrying Valuation method% amount at06 30 2013(thousands)50.00% A2A Alfa S.r.l. 3,292 Equity50.00% A2A S.p.A. 82,187 Equity50.00% A2A S.p.A. – Equity50.00% A2A S.p.A. 1,712 Equity50.00% Aprica S.p.A. 336 Equity49.00% A2A S.p.A. 477 Equity49.15% A2A S.p.A. (48.77%)A2A Reti Gas S.p.A. (0.38%) 4,038 Equity44.50% A2A S.p.A. 1,819 Equity45.00% A2A S.p.A. 5 Equity40.00% A2A S.p.A. 716 Equity40.00% A2A S.p.A. 10 Equity33.33% A2A Energia S.p.A. 158 Equity24.29% A2A S.p.A. 837 Equity21.94% A2A S.p.A. 33,562 Equity20.00% A2A Calore & Servizi S.r.l. 670 Equity12.47% Aspem S.p.A. 887 Equity52.00% A2A Calore & Servizi S.r.l. 62 Equity40.00% Aprica S.p.A. 3,400 Equity7.91% A2A S.p.A. 61,982 Equity39.49% A2A S.p.A. 19,067 Equity1,578 See attachment 5216,795165

Half-yearly financial report at June 30, 20135 - List of companies included inthe consolidated financialstatements of the Ecodeco GroupCompany name Registered office Currency Sharecapital(thousands)166Consolidation areaEcodeco S.r.l. (now A2A Ambiente S.r.l.) Milan Euro 7,469Ecodeco Hellas S.A. Atene Euro 60Ecolombardia 18 S.r.l. Milan Euro 658Ecolombardia 4 S.p.A. Milan Euro 17,727Sicura S.r.l. Milan Euro 1,040Sistema Ecodeco UK Ltd Canvey Island Essex (UK) GBP 250Vespia S.r.l. in liquidation Milan Euro 10A.S.R.A.B. S.p.A. Cavaglià (BI) Euro 2,582Nicosiambiente S.r.l. Milan Euro 50Ecoair S.r.l. Milan Euro 10Bioase S.r.l. Sondrio Euro 677Shareholdings in companies carried at equitySED S.r.l. Robassomero (TO) Euro 1,250Bergamo Pulita S.r.l. Bergamo Euro 10Tecnoacque Cusio S.p.A. Omegna (VB) Euro 206Bellisolina S.r.l. Montanaso (LO) Euro 10Total shareholdings

Half-yearly financial report at June 30, 20135 - List of companies included in the consolidated financial statements of theEcodeco Group% Holding Shareholder Carrying Valuation methodconsolidated % amount atGroup 06 30 2013shareholding(thousands)at06 30 2013Line-by-line consolidation100.00% 100.00% Ecodeco Line-by-line consolidation98.86% 98.86% Ecodeco Line-by-line consolidation68.58% 68.58% Ecodeco Line-by-line consolidation96.80% 96.80% Ecodeco Line-by-line consolidation100.00% 100.00% Ecodeco Line-by-line consolidation99.90% 98.90% Ecodeco Line-by-line consolidation70.00% 70.00% Ecodeco Line-by-line consolidation99.90% 99.90% Ecodeco Line-by-line consolidation100.00% 100.00% Ecodeco Line-by-line consolidation70.00% 70.00% Ecodeco (51.00%) Line-by-line consolidationAMSA (19.00%)16750.00% Ecodeco 1,337 Equity50.00% Ecodeco – Equity25.00% Ecodeco 241 Equity50.00% Ecodeco – Equity1,578

Half-yearly financial report at June 30, 20136 - List of financial assets availablefor saleCompany name % Shareholder Carryingholdingamount at06 30 2013(thousands)168Financial assets available-for-sale (AFS)Infracom S.p.A. 1.57% A2A S.p.A. 155Immobiliare-Fiera di Brescia S.p.A. 5.52% A2A S.p.A. 573E.M.I.T. S.p.A. in liquidation 10.00% A2A S.p.A. 459Azienda Energetica Valtellina e Valchiavenna S.p.A. (AEVV) 9.39% A2A S.p.A. 1,846Other:A.C.B. Servizi S.r.l. 5.00% A2A S.p.A.Alesa S.r.l. 5.26% A2A Reti Gas S.p.A.AQM S.r.l. 7.71% A2A S.p.A.AvioValtellina S.p.A. 0.18% A2A S.p.A.Banca di Credito Cooperativo di Calcio e Covo Società Cooperativa n.s. A2A S.p.A.Brescia Mobilità S.p.A. n.s. A2A S.p.A.Brixia Expo-Fiera di Brescia S.p.A. 9.44% A2A S.p.A.Cavaglià Sud S.r.l. in liquidation 1.00% Ecodeco S.r.l.Consorzio DIX.IT in liquidation 14.28% A2A S.p.A.Consorzio Ecocarbon Coneco n.s. Ecodeco S.r.l.Consorzio Intellimech n.s. A2A S.p.A.Consorzio Italiano Compostatori n.s. Ecodeco S.r.l.Consorzio L.E.A.P. 10.53% A2A S.p.A.Consorzio Milano Sistema in liquidation 10.00% A2A S.p.A.Consorzio Polieco n.s. Ecodeco S.r.l.CSEAB (previously Cramer S.c.a.r.l.) 6.67% A2A S.p.A.Emittenti Titoli S.p.A. 1.85% A2A S.p.A.Guglionesi Ambiente S.c.a.r.l. 1.01% Ecodeco S.r.l.INN.TEC. S.r.l. 10.89% A2A S.p.A.Isfor 2000 S.c.p.a. 4.94% A2A S.p.A.S.I.T. S.p.A. 0.26% Aprica S.p.A.

Half-yearly financial report at June 30, 20136 - List of financial assets available for saleCompany name % Shareholder Carryingholdingamount at06 30 2013(thousands)Stradivaria S.p.A. n.s. A2A S.p.A.Tirreno Ambiente S.p.A. 3.00% Ecodeco S.r.l.Prva banka Crne Gore A.D. Podgorica (*) 19.76% EPCGDI.T.N.E. 1.30% Edipower S.p.A. 6,143Total other financial assetsTotal available-for-sale financial assets 9,176(*) Including the preference shares with no voting rights the shareholding in Prva banka Crne Gore A.D. Podgorica amounts to24.10% of share capital.Note: A2A S.p.A. took part in the setting up of Società Cooperativa Polo dell'innovazione della Valtellina, subscribing 5 shares having anominal value of 50 euro.169

Changes in legislation

Half-yearly financial report at June 30, 2013Changes in legislationEnergy SectorRecent changes in legislation in the electricity sectorLarge hydroelectric derivation concessions172Changes in legislation over the past few years have mainly led to the continuation by A2A of itsconcessions and principally regard the introduction of certain provisions facilitating tendersand regulating the means by which concessions are transferred from the outgoing to theincoming manager. By way of Decree Law no. 83 of June 22, 2012 (the “Development DecreeLaw”), the government issued a number of regulations designed to facilitate the way in whichtenders are carried out. More specifically, article 37, paragraph 4 confirms the period of 5years before the expiry of the concession as being the time limit within which a tender must becalled and sets the term of future concessions in 20 years, extendible to 30 years depending onthe size of the investments granted and the criteria that will be established by the ministerialdecree being issued under article 12, paragraph 2 of Legislative Decree no. 79/99 as amended.In addition, a special transitional regime is provided for calling tenders for concessions whichhad expired at the date when the law converting the decree became effective and thoseexpiring on or before December 31, 2017 (those which are unable to comply with the 5 yearperiod for calling the tender). These tenders must be called within 2 years of the effective dateof the ministerial decree for implementation (as per article 12, paragraph 2 of LegislativeDecree no. 79 of March 16, 1999). The new concession shall start at the end of the fifth yearfollowing the original expiry date and in any case not later than December 31, 2017.In terms of the way in which the concession will pass from the outgoing to the incomingoperator, the legislator has opted for the sale of a business against the payment of a pricewhich has been previously established and agreed between the outgoing operator and thegranting administration before the offering stage and which is published in the tender offer.The ministerial decree has the responsibility for determining the technical and economic

Half-yearly financial report at June 30, 2013Changes in legislationparameters used for calculating the consideration and the amount due to the outgoingconcessionaire, and should establish the detailed implementation regulations for tenders,subject to the opinion of the Electricity and Gas Authority (the AEEG or the Authority in thefollowing). If no agreement can be reached between the outgoing concessionaire and thegranting administration on the size of the consideration and the amount, an arbitrationprocedure is brought into play.By way of article 14 of Law no. 19 of December 23, 2010 the Region of Lombardy amendedRegional Law no. 26 of December 12, 2003, adding article 53-bis which contains provisions onthe temporary continuation of use, the profiles of the owners following the expiry of theoutstanding mandates and the use of the infrastructure and the plant. Implementing theseprovisions, the Regional Council provided for the “temporary continuation” by A2A S.p.A. of theuse of the shunting and hydroelectric plants of Stazzona, Lovero and Grosotto which expired onDecember 31, 2010. The resolution additionally confirmed the requirement to pay theenvisaged fees and additional fees and to carry out the ordinary and extraordinary maintenancework specified in article 53-bis; in addition, it deferred the calculation of an additional fee to bepaid from January 1, 2011 to a subsequent resolution, not yet adopted as of today.173A2A S.p.A. and other operators have filed an appeal against this resolution with the High Courtof Public Waters (TSAP) and the verdict is still pending.However, following the government’s challenge to certain provisions of Regional Law no. 19 ofDecember 23, 2010, with Sentence no. 339/2011 the Constitutional Court ruled that thedisputed clauses are unconstitutional. As a consequence, paragraphs 4 and 5 of article 53-bis,introduced by the above-mentioned law, which provide for the contemporary continuation ofthe concessions that expired at the end of 2010 and the possibility for the Regional Council tolay down more severe conditions of use during that period, remain effective, also from aneconomic standpoint.Regarding the transposition of the “Growth Decree”, which lays down procedures forcalculating the surrender value of the "wet works" regarding the hydroelectric concessions,the relevant authorities have not as of today set the calculation criteria (revaluationcoefficients and useful lives) needed to calculate the surrender value at the end of theconcessions for the assets involved. Further details can be found in note 31 of the “Notes tothe income statement”.Remuneration of plants essential for the safety of the electricity systemRegarding the plants admitted to the reintegration framework for which an application hasbeen made (San Filippo del Mela 150 kV and San Filippo del Mela 220 kV), by way of Resolution

Half-yearly financial report at June 30, 2013Changes in legislationno. 242/13/R/eel the AEEG has ordered Terna S.p.A. to pay Edipower S.p.A. the advance for 2012required by paragraph 65.30 of Resolution no. 111/06 to contain the operator’s financialexposure, clarifying that on calculating the payment as per paragraph 63.13 for 2012, accountmust be taken of the results of checking the fixed costs and the items making up thecontribution margin.Remuneration of production capacity availability – transitionalBy way of Resolution no. 262/2013/R/eel, the Authority has amended and added to theprovisions of Resolution no. 48/04 for the remuneration in the transitional period of theavailability of production capacity, establishing the means by which the total annual amountfor the coverage of the specific fee for the remuneration of the service for 2012 must becalculated by Terna S.p.A., and amending, for the same period, the time bands as per table 1 ofResolution no. 5/04, by which the above fee is structured.174Green CertificatesBy way of Resolution no. 17/2013/R/efr, the Electricity and Gas Authority set the average annualsales price for electricity for 2012, established to implement article 13, paragraph 3 of LegislativeDecree no. 387/03 and calculated on the basis of the criteria specified in Resolution ARG/elt no.24/08. The amount set was 77.00 €/MWh.As a result, as the GSE has informed operators that:• the reference price for green certificates for 2013, pursuant to article 2, paragraph 148 ofLaw no. 244 of December 24, 2007, is 103.00 €/MWh, excluding VAT, calculated as thedifference between 180.00 €/MWh and the average annual sales price of electricity sold in2012 as per article 13, paragraph 3 of Legislative Decree no.387/03;• the withdrawal price of green certificates issued for production from renewable sourcesin 2012 is 80.34 €/MWh, excluding VAT;• the withdrawal price of green certificates issued for production from cogeneration plantsassociated with district heating in 2012 is 84.34 €/MWh, excluding VAT.Economic conditions for the protected categories serviceBy way of Resolution no. 583/2012/R/eel, effective January 1, 2013 (with retroactive validityextended to 2012 by means of a compensation mechanism), the Authority revised the componentremunerating the selling costs incurred by protected category electricity vendors (RCV).

Half-yearly financial report at June 30, 2013Changes in legislationRegulation of the electricity sector in MontenegroAt the end of 2011 the Energy Regulatory Agency (RAE), the autonomous and independentbody having the function of regulating the energy sector, approved the method to be used forcalculating electricity transmission and distribution tariffs, together with the means forestablishing energy prices for sales to end customers.The new method introduces regulatory elements into Montenegro law that are similar tothose in force in the principal European countries, such as the establishment of multi-yearregulatory periods, the introduction of capital valuation methods and a remuneration rateand the means of making the sector more efficient through the use of price-caps. The firstregulatory period started on August 1, 2012 and has a three-year term. For the first year theWACC (weighted average cost of capital), equal to 6.8%, will be applied to net invested capital(meaning the value of the assets in use at the end of year t-1, stated less of any contributionsreceived and revalued for inflation). Capital will be updated annually on the basis ofinvestment plans approved by the Agency, while depreciation will be charged over the usefullives included in the documents to be sent to the Agency on making the request for approvalof the tariffs. Operating costs will be calculated by applying a profit-sharing logic, startingfrom the figures sent by the company to the Agency.175Finally, in July 2012 the RAE approved the tariffs, calculated on the basis of the new methoddescribed above, which are valid from August 1, 2012 to July 31, 2013.Recent changes in legislation in the natural gas sectorUpstream gas marketCriteria for the allocation of gas storageIn compliance with article 14 of Decree Law no. 1/12 (the “Liberalizations Decree”) asamended by article 38 of Decree Law no. 83/2012 (the “Growth Decree”), in order to reducenatural gas procurement costs for businesses, the Ministry for Economic Developmentissued the “Regasified LNG Storage Decree”, by which it allocated the capacity of 500million cm becoming available following the recalculation of the volume of strategicstorage, amongst regasification and industrial companies. On the other hand with a seconddecree (the “Modulation Storage Decree”) the ministry established the modulationstorage space capacity to be allocated as a priority to civil customers, of which around onethird will be assigned by auction and the remaining two thirds on the basis of the previouspro-rata means of allocation. The decree also establishes the storage capacity to beallocated to all applicants exclusively by means of an auction.

Half-yearly financial report at June 30, 2013Changes in legislationFollowing the issue of the two ministerial decrees, the Authority then provided details of theallocation procedures under the regulated regime in Resolution no. 75/2013/R/gas, while byway of Resolution no. 92/2013/R/gas it provided details of the criteria to be used for theauction, with procedures simplified due to the imminent start of the injection phase.Gas exchangeThe gas market reorganization process is in progress following the 2011 start of the P-Gasplatform for trading lots of natural gas imported from non-EU countries and the developmentroyalties due to the state, and following the start of the M-Gas spot market in December of thesame year. In accordance with the requirements of article 32 of Legislative Decree no. 93/11, onthe basis of the regulatory changes introduced by the authority by way of Resolution no.525/2012/R/gas, the Energy Market Manager (GME) has set up the discipline for regulating thenatural gas forward market (MT-Gas).176By way of a Ministerial Decree of March 6, the Ministry for Economic Development approvedthe discipline of this market, with a starting date to be established in a later decree on theproposal of the GME “after a suitable testing period”, with a term which will by communicatedto the ministry by the GME.BalancingThe means of regulating the guarantees requested from operators in order for them tooperate in the balancing market is still being finalized.With regard to the events which took place during the start-up phase of the balancing market,by way of Resolution no. 144/2013/R/gas the Authority completed its fact-finding enquiryinitiated in the period December 1, 2011 to October 23, 2012. On the basis of the results of thatenquiry, by way of Resolution no. 145/2013/R/gas the Authority then set up a proceeding aimedat determining the portion of the costs to be recognized to Snam Rete Gas for the uncollectedreceivables relating to the economic items emerging during that observation period.As part of the measures introduced to strengthen the guarantee system, by way of Resolutionno. 143/2013/R/gas the Authority approved certain amendments to the Network Code drawnup by Snam Rete Gas, designed to strengthen the reliability of the monitoring of userexposure.

Half-yearly financial report at June 30, 2013Changes in legislationDownstream gas marketEconomic conditions for the protected serviceBy way of Resolution no. 124/2013/R/gas, the Authority implemented the first phase of thereform of the means of calculating the economic conditions for the supply of gas for (theperiod from April 1 to September 30, 2013), providing for a revision of the weights of theindices Ptop (80%) and Pmkt (20%) and a reduction of the QS component covering storageservice costs from 0.329691 €/GJ to 0.185896 €/GJ.By way of Resolution no. 196/2013/R/gas, the Authority subsequently approved the secondphase of the reform, with a structural revision of the means of updating the componentcovering procurement costs and an adjustment to the retail sales marketing component,starting from October 1, 2013.177

Half-yearly financial report at June 30, 2013Changes in legislationEnvironment SectorRecent changes in legislation in the environment sectorRegulation of local public services and expiry of concessionsLegislation regulating local public services of economic importance was affected by theresults of question 1 of the abrogative referendum of June 12 and 13, 2011. To fill the legislativegap created by the outcome of the referendum, the legislator intervened with a series ofregulations contained in Decree Law no. 138/11 (the summer Budget Law which becameeffective on August 13, 2011), as converted by Law no. 148/2011 (effective from September 17,2011). As a consequence of the appeal filed by a number of regional administrations againstthese provisions, the measures were also affected by Sentence no. 199 of July 17, 2012 whichdeclared them to be constitutionally unlawful in part.178As a result of this sentence, while the legislation regarding the management of local networkpublic services on the basis of optimal and homogeneous territorial ambits and rewardingmechanisms for the assignation of the management of the services by public tender remainsin force (as per article 3-bis of Law no. 148/2011), the provision relating to the early terminationof the concessions with non-compliant assignment (as per article 4 of Law no. 148/2011) is nolonger applicable.In this respect, the legislator intervened once again in the matter by way of article 34,paragraphs 20-26 of Decree Law no. 179 of October 18, 2012 on “Further urgent measures forthe country’s growth” (“Growth Decree 2.0”), converted by Law no. 121 of December 17, 2012and published in Official Journal no. 294 of December 18, 2012. In particular, this legislationrequires that direct assignments agreed at October 1, 2003 for publicly held companiesalready listed at that date and for subsidiaries of these pursuant to article 2359 of the Italiancivil code should cease at the expiry date specified in the service agreement or otherdocuments governing the relationship. On the other hand assignments not having an expirydate terminate on December 31, 2020, without the possibility for any extension and withoutthe need for the body to adopt a specific resolution.Consolidated Environment LawLegislative Decree no. 152 of April 3, 2006 "Regulations on environmental matters" assubsequently amended, most recently by Legislative Decree no. 205/10 which dictatesmeasures implementing Directive 2008/98/EC on waste, acts as the reference legislation forthe environment sector.

Half-yearly financial report at June 30, 2013Changes in legislationOther measures of interestDecree Law no. 1/2013, effective from January 14, 2013, ratified the extension to December 31,2013 of the possibility of disposing of special urban waste with Pci > 13,000 kj/kg in a landfill.Developments in the regulation of the CIP 6/92 conventionsBy way of the Decree of April 24, 2013, the Ministry of Economic Development calculated thesettlement balance for the Avoided Fuel Cost (CEC) for 2012, applying the method establishedin the Decree of November 20, 2012.However the Ministry established that the proposal as per Opinion no. 535/12 of the AEEGwould not be applicable to that year; the proposal recommended linking the gas CEC tomovements in gas prices on the balancing market and to remove from the formula (in both thesettlement and the installments for the individual quarters) the component relating to thewholesale marketing margin (CEC com).By way of Decree Law no. 69 of June 21, 2013 on “Urgent provisions to boost the economy”, thegovernment returned to the matter, introducing important provisions at article 5, among theother measures concerning the energy sector, for determining the formula for calculating theCEC for 2013 and 2014. Parliamentary work to convert the decree into law is currently still inprogress.179The decree requires that for the conventional component relating to the price of the fuel (CECgas), the figure for the Avoided Fuel Cost which is to be recognized on account until the annualsettlement balance has been set, should be calculated for 2013 on the basis of the referencebasket pursuant to Law no. 99 of July 23, 2009, where the weight of the oil products is graduallyreduced in each quarter (set at eighty per cent in the first quarter, seventy per cent in thesecond quarter and sixty per cent in the third and fourth quarters). For each quarter thecomplement to arrive at a hundred per cent is to be determined on the basis of theprocurement cost of the natural gas on the wholesale markets as determined by Resolution no.196/2013/R/gas of May 9, 2013 and by the other provisions of the Electricity and Gas Authority. Bymeans of a provision to be adopted within 60 days of the effective date of the legislationconverting the decree into law on the proposal of the Electricity and Gas Authority, the meansby which this amount is to be updated shall be established, for on account and settlementpayments, together with the means of publishing the amounts identified in accordance with thecriteria in paragraphs 4 and 5. For 2013, the legislation confirms the current means by which thecomponent relating to the wholesale marketing margin (CEC com) and the transportcomponent (CEC trans) are calculated, as well as the specific consumption amounts pursuantto the Decree of November 20, 2012.

Half-yearly financial report at June 30, 2013Changes in legislationAs an exception to the above provisions, for waste to energy plants admitted to the frameworkpursuant to the CIP 6/1992 provision, which at the date on which the present decree becomeseffective have been in use under the convention for a period of less than or equal to eight years(this includes the Acerra plant), the CEC shall be determined on the basis of the referencebasket pursuant to Law no. 99/2009, in which the weight of oil products is sixty per cent.180

Half-yearly financial report at June 30, 2013Changes in legislationNetworks sectorRecent changes in legislation in the distribution sectorNatural gas distributionAllocation and performance of the distribution serviceAs a result of Law no. 99/2009, the “Development Law”, the Ministry for EconomicDevelopment completed the reform of the means of allocating the natural gas distributionservice by establishing 177 “Minimum Territorial Ambits” (the Ministerial Decree of January19, 2011 and the Ministerial Decree of October 18, 2011), for which tenders will be called for theallocation of the service, and a regulation on the basis of which tenders will be called andawarded.Default serviceThe Council of State’s ruling is still pending in the appeal against Resolution ARG/gas no. 99/11,with which the AEEG introduced the “default service”. However, by way of Resolution no.241/2013/R/gas, the Authority has revised the regulations and amended the responsibilities ofthose performing the service. On the basis of this new structure, services for a timely cut-offat the delivery point and the proper allocation of the withdrawals have been put under theresponsibility of the distribution company, while services connected with the economicsettlement for the lots of gas have been put under the responsibility of a sales operator.181As the result of the problems arising on the preparation of the first balancing sessions for thedistribution default service, the Authority ordered that new balancing sessions should be heldto adjust the figures already published, and that the payments for differences should besuspended.Distribution and metering tariffs – III regulatory period (2009-2013)Due to the judicial proceedings which have involved Resolution ARG/gas no. 159/08, andconsidering the present delicate phase, in which the sector is undergoing a reorganization, byway of Resolution no. 436/2012/R/gas the Authority extended the validity of the current tariffregulation until the end of 2013, in order to leave time for suitable consultation for the IVregulatory period. A number of operators have challenged this provision regarding the meansby which certain parameters that are important for the calculation of the remuneration ratefor employed capital are updated.

Half-yearly financial report at June 30, 2013Changes in legislationThe tariff system currently in force provides for a reference tariff calculated in order toensure the following: the remuneration of net invested capital (WACC set at 7.7% fordistribution activities and 8% for measurement activities), in turn calculated on the basis ofrevalued historic cost and, only in part, on a parametric basis; the coverage of depreciation,calculated on the basis of useful lives valid for regulatory purposes; and the coverage ofoperating costs, calculated on a parametric basis and updated through a price-cap methodusing an X-factor depending on the size of the company (2.4% for the distribution service and2.8% for measuring and sales services with respect to large-scale operators).The mandatory and reference tariffs for the distribution and metering of natural gas valid for2013 were approved by the Authority by way of Resolution no. 553/2012/R/gas.Regulation providing incentives for the safety of the serviceBy way of Resolution no. 229/2013/R/gas the Authority gave an award to A2A Reti Gas S.p.A. forthe safety recoveries obtained in 2011 and the company received a total of 363,444.53 euro.182Electricity distributionDistribution and metering service tariff frameworkBy way of Resolution ARG/elt no. 199/11, the Electricity and Gas Authority adopted theConsolidated Text of provisions to regulate the transmission and distribution of electricity(TIT) and the Consolidated Text of provisions regulating the supply of the Electricity MeteringService (TIME) for the fourth regulatory period (2012-2015).In relation solely to the tariff adjustment for metering services, variations with respect to theprevious regulatory period were included in the return on invested capital (set at 7.6% perannum), in the value of the X-factor (set at 7.1% per annum) and also in revenue equalizationfor low voltage metering services. With reference to the distribution service, many of thetariff regulation schemes already in force during the previous regulatory period weremaintained, in particular:– the adoption of tariff decoupling, which requires a mandatory tariff to be applied to endusers and a reference tariff for the definition of revenue restrictions, specific by operatorcalculated on the basis of the number of users (PoD);– the application of the profit-sharing method for the definition of initial operating costlevels to be recognized in the tariff;– the updating of the tariff quota covering operating costs through the price-cap method,setting the annual objective for increased productivity (X-factor) at 2.8% for distributionactivities;

Half-yearly financial report at June 30, 2013Changes in legislation– the evaluation of invested capital using the revalued historical cost method;– the definition of the rate of return on invested capital through WACC (the rate set for2012-2013 is 7.6% for investments made up to December 31, 2011 and 8.6% for investmentsmade subsequent to that date);– the calculation of depreciation on the basis of the useful lives valid for regulatorypurposes.By way of Resolution no. 122/2013/R/eel the Authority established the reference tariffs for 2012and 2013, requiring that the Head of the Infrastructure Department should carry out furtherdetailed work into the report made by A2A Reti Elettriche S.p.A. on the need to carry outadditional work to check the suitability of the method proposed in order to ensure there is nochange in the revenues ratified by Resolution no. ARG/elt 199/11.Loss equalizationBy way of Resolution no. 559/2012/R/eel the Authority initiated a revision of the method ofcalculating the difference between actual and standard losses. A project began in the firstquarter of 2012 whose aim is to quantify low voltage network losses, as a preliminary to setting upa new calculation method for the equalization of losses on the distribution networks to becomeapplicable during 2013. By way of Consultation Document no. 269/2013/r/eel the Authorityproposed in a general form the initial calculation formulae for the transitory period 2013-2015.183Provisions common to the two sectors (gas and electricitydistribution)Energy saving and efficiencyEnergy saving targets for 2013By way of Resolution no. 11/2013/R/efr, pursuant to the provisions of the Decree of December 28,2012, the Authority has sent the MSE and the GSE the data needed to establish the specificprimary energy saving objectives to be achieved by distributors for 2013.Tariff contributionThe unit tariff contribution recognized for each obligatory year (t+1) after 2008 is establishedby the Authority by November 30 of the previous year (t).However as of today the Authority has not yet established the contribution given for achievingthe energy saving objectives for 2013.

Half-yearly financial report at June 30, 2013Changes in legislationIntegrated water serviceDuration of existing allocationsFollowing the referendum which took place on June 12 and 13, 2011, the Decrees of the Presidentof the Republic stating that the legislative provisions referred to in the referendum had beenrepealed were published in the Official Journal no. 167 of July 20, 2011, including article 23-bis ofDecree Law no. 112/02008 on the assignment of local public services of economic importance.As concerns the existing management, as specified by article 34 of Decree Law no. 179/12,converted into Law no. 221/12, services allocated to in-house providing public companieswhich meet the requirements set by community jurisprudence (control over the manager thesame as that carried out over internal bodies, performance of activities mostly for theadministration or the administrations of shareholders, wholly publicly-held capital) remainactive until their natural expiry date.Tariff regime184By way of Resolution no. 585/2012/R/idr the Electricity and Gas Authority approved theTransitional Tariff Method (MTT) for 2012 and 2013 for management subject to thenormalized method. For 2012 an equalization method will be used.Compared to the Ambit Plans, the MTT is based on ex post regulation criteria: the accountingdata for year n-2 are the reference for the tariff calculation. Interest expense and tax charges arealso recognized on assets under construction, with a regulatory time lag of two years.Investments made from 2012 are entitled to an increase of 1% in the interest expense recognized.The new method supersedes the “remuneration of capital” and recognizes the “cost of thefinancial resource”, in accordance with the full cost recovery principle. With respect to thefinancial resource, the authority has established that such costs must not be recognizedagainst documentation, which encourages inefficient or opportunist conduct, but ratheragainst standard references (interest expense and tax charges).By way of Resolution no. 88/2013/R/idr the Authority has additionally adopted provisions forthe transitional period with reference to ex CIPE management.By way of Resolution no.273/13/R/idr, on the basis of the proceeding initiated by Resolution no.8/13/R/idr, the AEEG determines the means of returning to end users the SII tariff componentrelating to the remuneration of capital, repealed through a public referendum, with referenceto the period from July 21, 2011 - December 31, 2011 not covered by the MTT.In particular, within 3 months of the publication of the provision, the Ambit Bodies, or theentities responsible for drawing up the tariffs, must send to the Authority for the checks for

Half-yearly financial report at June 30, 2013Changes in legislationwhich it is responsible the calculation of the amount relating to the remuneration of capital forthe period from July 21, 2011 - December 31, 2011 which is to be returned to domestic users,identified using the criteria stated in article 2 of the provision, attaching an accompanyingreport and the calculation files.If the Ambit Bodies or the competent entities do not send the information by the meansestablished the Authority will exercise its powers as a substitute in compliance with currentlegislation.Tax charges, financial charges and accruals for bad and doubtful debts must be deducted fromthe remuneration of capital calculated pursuant to article 3.3 of the MTN, reproportioned onthe basis of the amounts billed for the period July 21, 2011 to December 31, 2011, where theseare not already included in other components of the tariff.The amount resulting after this deduction must be revalued by applying the inflation rates for2012 and 2013 provided by the MTT, and divided by the number of domestic users, asnecessary expressed by the number of fixed charges applied.The Authority will check the consistency of the calculation proposed by the Ambit Bodies orby the competent entities, reporting any findings within 60 days of receipt. At the end of thisterm and in the absence of the notification of any findings by the Authority, the manager mustreturn to the users the amounts calculated by the Ambit Bodies or competent entities in thefirst available billing, explicitly stating the amount refunded. This decree is not expected tohave any specific effects for the Group.185Province of Brescia Optimal Territorial Ambit (A.T.O.)At its meeting of April 24, 2013, pursuant to AEEG Resolution no. 585/2012/R/idr of December 28,2012 and pending the approval of the tariff by the AEEG , the Board of Directors of the BresciaAmbit Office acknowledged the transitional tariff for the Integrated Water Service resultingfrom the application of the new method of calculation (MTT). The Operator is required to applythis new detailed tariff scheme, which is applicable to consumption for 2013, from May 1, 2013.

Scenario and market

Half-yearly financial report at June 30, 2013Macroeconomic scenario188The pick-up in the world economy remained modest in the first half of 2013, with differencesbetween the various regions and a wide-ranging structural fragility. The indicators arisingfrom economic surveys appear to have stabilized, though, despite a slight weakening in theclimate of confidence lately. The recovery is proceeding at a moderate rate in the majority ofthe countries not belonging to the eurozone, although a variety of factors continue to holdback medium-term growth rates. In particular, growth has intensified in the United States andJapan, mainly reflecting the vigor of private consumption. In the emerging countries therewas a slowdown in the rise of gross domestic product in the first quarter, especially in Indiaand China, compared to the robust performance of the final months of 2012. US growthcontinues, although with ups and downs; growth reached 2% between the start of 2011 andmid 2013 and early reports on the performance of GDP for the first half of 2013 talk of anincrease of around 1.7%, with a large fall in the unemployment rate. The acceleration ineconomic activity is mainly linked to spending for private consumption, which has risen at asolid rate (3.4% on an annual basis for the first quarter of 2013, the highest increase for thepast two years), and an increase in stocks. Private investment too has made a positivecontribution to the rise in GDP. The turnaround in the Japanese economy, which began in theautumn with the new government and the announcement of radical changes in monetarypolicy strategy, continued throughout the first half of 2013.As regards the eurozone the first three months of 2013 ought to have represented a bottomingout of the economic cycle. According to early announcements coming from the nationalstatistics agency Istat, GDP is expected to start rising again by approximately 0.1% from thebeginning of the second quarter and will then accelerate moderately in the second half of theyear due to an improvement in exports and a slight pick-up in domestic demand. Nevertheless,the consolidation of fiscal measures taken over the past year and the deleveraging process inthe manufacturing and banking sectors that is taking place in many countries in the eurozonewill continue to inhibit growth. Conditions in the labor market will remain unfavorable, withadverse repercussions on available household income and family consumption.Prospects for the world economy continue to be characterized by a considerable degree ofuncertainty, and indicators of economic activity and international trading are still pointing

Half-yearly financial report at June 30, 2013Macroeconomic scenariodownwards. Among the main risks that may effect the recovery are the possibility thatinternational demand will be weaker than forecast and the effects of a slow or insufficientimplementation of structural reforms in the eurozone. In the advanced countries therecovery will continue at heterogeneous rates in 2013 and 2014. In particular, it is expectedthat this will proceed at moderate rates in the United States due to the gradual expansion ofdomestic demand as the result of favorable monetary and financial conditions, a gradualimprovement in the labor and housing markets and the slow release of the braking caused bythe budgetary restructuring process. A strengthening of economic expansion is expected tobe seen in the emerging countries for the current year with an acceleration in 2014, due to apick-up in demand in the advanced countries and the continuation of favorablemacroeconomic conditions associated with low interest rates, significant capital flows fromabroad and the high price of raw materials.According to the IMF’s forecasts growth of global GDP in real terms will reach 3.3% in 2013, inline with the previous year, and will rise further in 2014 to 4%. A positive contribution to globalexpansion will arrive from the USA, where an increase of approximately 1.9% in GDP is beingforecast, and from Japan (+1.6%). In the eurozone on the other hand, economic activity is likelyto fall, with a decrease of 0.4% in GDP forecast for 2013: a turnaround in this trend is notexpected to be seen before the second half of the year, continuing to a limited extent in 2014(+1%), held up by the favorable effect on exports of the gradual increase of external demandcompared to a modest improvement in domestic demand.189The euro has slightly appreciated over the past three months in a situation of low volatility,rising by a small amount to 1.32 €/$ in June, close to the rates ruling at the beginning of the year.The average exchange rate for the second quarter of 2013 was 1.31 €/$ compared to 1.28 €/$ inthe same period of the previous year. This appreciation is the result of the recent decision ofthe European Central Bank (ECB) to keep interest rates unchanged after the reduction madein May. On the basis of the existing consensus and the figures obtainable from the forwardmarkets, an average exchange rate of 1.30 €/$ is expected for the whole of 2013, with a small fallto 1.29 €/$ in the second half of the year, against the risk of a further cut in interest rates by theECB and a more dynamic performance expected for the US economy compared to that of theEuropean Union countries.Inflation fell to 1.2% in April in the eurozone and then rose again to 1.4% in May, with a widedivergence existing between the various European countries. The fall is greater than expectedand to a large extent is due to changes in the energy component. Food products had a modesteffect on overall trends in retail prices. The ECB’s preliminary forecasts show that inflation willclose at 1.4% in 2013, with a sharp reduction over the 2012 figure of 2.5%, reflecting theconsiderable fall expected to be seen in international raw materials prices.

Half-yearly financial report at June 30, 2013Macroeconomic scenarioAs far as Italy is concerned, Istat’s preliminary figures do not indicate any improvement overthe beginning of the year: industrial production is expected to fall by around 1.4% in thesecond quarter of 2013 compared to the same period of the previous year. On the assumptionof a less unfavorable contribution coming from other sectors, a further fall in GDP of 0.6% isexpected compared to that of the first quarter. As far as retail prices are concerned, Istat’sprovisional figures point to an inflation level of 1.1% for Italy in the second quarter of 2013,essentially stable and representing a considerable reduction over the average figure of 1.9%for inflation in the first quarter of 2013.190As far as future prospects are concerned the fall in GDP which began in the third quarter of2011 is likely to continue, with a more limited intensity, at least until the third quarter of 2013,on the assumption though that political stability and a favorable international cycle arenecessary conditions for moving out of the recession. During the year households are likely toexperience a further reduction in disposable income, with the inevitable negativeconsequences on retail spending compared to the previous year. The deterioration inpurchasing power is only likely to come to an end in 2014. A pick-up in the propensity to investby businesses appears rather improbable due to the minimum levels of capacity being usedand the continuing weakness in domestic demand. Net foreign demand remains the mainsource of support for economic growth for the current year. In 2014 an improvement inliquidity as the possible result of the settlement by the public sector of its business debts couldencourage a pick-up in private investment.On the basis of the factors discussed above, Istat sees a fall of an average of 1.4% in Italy’s GDPin 2013, due to the considerable negative contribution of domestic demand (-2% excludingstocks over 2012) being only partially offset by net foreign demand (+1.1%). The IMF isexpecting to see negative growth of 1.5% for Italy in 2013, only slightly better than the OECD’smore pessimistic forecast (-1.8%) while the forecast of the main economic institutions andbanks in June was a fall of 1.6% on average. There is a high risk of a downwards revision of theseestimates precisely due to the not so very encouraging signs coming from the second quarterof the current year. Forecasts for 2014 converge on the possibility of growth slightly abovezero for the country (+0.7% according to Istat, +0.4% according to a consensus of economicinstitutions and banks, +0.7% according to the Bank of Italy, +0.5% according to the IMF). Theforecasts for inflation calculated by Istat point to a rise of 1.8% in the retail price index for 2013,one percentage point lower than the figure for 2012.

Half-yearly financial report at June 30, 2013Energy market trendsThere has been tension in several sectors of the commodity universe since the beginning ofthe year. Despite the low level of variation in the price of oil during the period, the relativeabundance of supply expected in the medium term is causing friction between the OPECcountries. The coal market appears to have been affected the most by the uncertainties in themacroeconomic situation with a price of 83 $/tonne in the fist half of 2013, a drop of almost13% over the same period of the previous year.The oil market remained essentially stable during the first half of 2013, with a slight fall in theprice of Brent since the beginning of the year from 112 $/bbl in January to 103.4 $/bbl in June,while the price averaged 108 $/bbl in the first six months of the year, a decrease of 5% over thesame period of 2012. The recent performance of oil prices was a reflection of the combinedeffect of the prospect of a demand that is weaker than expected, especially in the emergingcountries, and seasonal factors, as a backdrop to an abundant supply due to an increase in USproduction of shale oil. Despite the prohibition on exporting oil from the United States,which is still in force, the increase in supply affects the Middle Eastern and Asian markets andthe relative prices between the various grades of oil. In particular, tension is rising in OPECbetween the member countries which are direct competitors on the same outlet markets, ina situation where the United States is reducing its dependence on crude imports from OPEC.The availability of “light” oil in the United States has reduced imports of that quality fromcountries such as Nigeria and Libya, while heavy crude, mainly of Saudi Arabian origin, hasposted smaller falls since a large part is exported to China and the Asian countries.191ElectricityAs far as the national electricity scenario is concerned there was a net requirement of 155,727GWh (source: Terna) for electricity in Italy in the first half of 2013, a fall of 3.9% over thecorresponding period of the previous year. There is therefore no halt to the contraction inelectricity usage, which fell for the tenth consecutive quarter in June. The decrease isgeneralized throughout the country, and the effect of the economic situation has made itself

Half-yearly financial report at June 30, 2013Energy market trendsfelt especially in the north. The trend in demand in the second quarter was additionallypenalized by the average temperatures, which staying particularly low led to a delay in the useof air-conditioners, an important factor in the increase in the summer electricity load.Reduced domestic demand led to a decrease of 4.1% in the net production of electricity, whichtotaled 135,669 GWh, and a fall on the imports side, which caused a net drop with othercountries of 2.6% compared to the first six months of 2012. Net domestic production covered86.4% of demand, in line with the first half of 2012, while net imports satisfied the remaining13.6%.192The decrease in net domestic production was characterized by a sharp fall in thermoelectricproduction (-16.3% compared to the first half of 2012); a decisive fall in the load factor of gasand coal plants can be noted from working hours in the half year. The increased negative effectwas borne by combined cycle plants, compared to an increase in the proportion of renewablesources being used for the energy requirement, which rose from 11.5% to 14.2%, and ofhydroelectric production, which increased by almost 38% over the first half of 2012 due to theabundant rainfall during the period. The rise in production from wind farms continued, withgrowth of over 30% being achieved, a result obtained due to favorable weather conditions andthe increase in installed power, as did that from photovoltaic sources (+15% over the first halfof 2012).The weakness on the demand side for electricity in the first six months of the year hadconsiderable effects on IPEX prices. The average quotation of the PUN (Single NationwidePrice) Base Load for the period between January and June 2013 reached an average level of60.6 €/MWh, representing a decrease of 21.8% over the figure for the same period of theprevious year (77.5 €/MWh). The price of electricity fell both in peak hours (-23% for the PUNin the F1 band and for the PUN Peak Load) and in off-peak hours (-20% for the PUN in the F2band), which made it difficult for operators to recover their variable costs also in theevening/night-time hours (photovoltaic plants with dispatch priority remain switched off dueto the lower level of solar radiation).The above changes therefore affected the performance of the spark spread which wasconsiderably lower in the half year in question compared to the same period in 2012.

Half-yearly financial report at June 30, 2013Energy market trendsNatural GasDuring the first half of 2013 the demand for natural gas continued to fall, held back by thenegative performance of thermoelectric production. In particular, the country’s gasrequirement fell by 7.5% over the same period of the previous year to close at 37,886 Mcm(source: Snam Rete Gas). Imports represented 89.7% of requirements excluding changes instocks, while domestic production satisfied the remainder.Thermoelectric usage fell by around 24% over the first half of 2012, a drop that was far worsethan that posted by thermoelectric production taken as a whole. This trend shows once againthat it is gas plants which are penalized the most compared to a greater usage of coal plants,thanks to the more advantageous costs of the raw material.Usage in the industrial sector decreased by 1.5% (6,856 Mcm), with a performance essentiallyin line with the expected change in Italy’s GDP for the period in question, closing with figuresthat are still a long way off from pre-crisis levels. The services and civil uses segment saw anincrease of 1.3% in consumption compared to the first half of the previous year. Support forthe demand of gas for residential use only arrived from temperatures which were below theseasonal average (especially in the second quarter of 2013), leading to above the averagewithdrawals from the distribution network.193As far as the trend of gas prices in Italy is concerned, the spot price of gas fell by approximately8% at the Virtual Trading Point (PSV), in line with the reduction in the national requirementand the result of the continuation of an excess of supply. With the rise in wholesale gas priceson the continental market (with reference to the TTF market price), caused by an excess ofdemand in particular towards the end of the winter, the average PSV-TTF spread virtually fellto zero for the half year in question compared to a difference of approximately 6 €/MWh in thesame period of the previous year.

194Relazione sulla gestione – Anno 2012

Analysis of mainsectors of activity

Half-yearly financial report at June 30, 2013Analysis of main sectors of activityThe A2A Group operates in the following sectors:Energy SectorThis sector’s activity is the sale of electricity and methane gas on wholesale and retail markets.Support for the marketing areas is assured by fuel procurement, electricity generation plantplanning and dispatching, portfolio optimization and trading on domestic and foreignmarkets.Environment Sector196This sector’s activity relates to the whole waste management cycle, which ranges fromcollection and street sweeping to the treatment, disposal and recovery of materials andenergy. It includes the recovery of the energy content in waste by means of waste to energy orbiogas plants.Heat and Services SectorThis sector’s activity is mainly the sale of heat and electricity produced by cogeneration plants(mostly owned by the Group). Cogenerated heat is sold through district heating networks. Thesector also provides management services for heating plants owned by third parties (heatmanagement services).Networks SectorThis sector’s activity consists of the technical and operational management of networks forthe transmission and distribution of electricity, the transport and distribution of natural gasand the management of the entire integrated water cycle (water captation, aqueductmanagement, water distribution, sewerage network management, purification). Alsoincluded are activities relating to public lighting, traffic regulation systems, the managementof votive lights and systems design services.

Half-yearly financial report at June 30, 2013Analysis of main sectors of activityOther Services and CorporateCorporate services consist of the guidance, strategic direction, coordination and control ofindustrial operations, as well as business and operating activity support services (e.g.administrative and accounting services, legal services, procurement services, personnelmanagement services, information technology services, telecommunications services, etc.).Other services include video-surveillance, data transmission, telephony and internet accessservices.197

Half-yearly financial report at June 30, 2013Energy sector198The Energy Sector comprises the following activities:• Electricity generation: power plant management through a generation pool ofhydroelectric and thermoelectric plants with installed power of 12.0 GW ( 1 );• Energy management: the purchase and sale of electricity and gaseous and non-gaseousfuels on national and international wholesale markets; the procurement of the fuelsneeded to meet the requirements of the thermoelectric plants and customers; planning,programming and dispatching for electricity generation plants;• Sale of electricity and gas: marketing of electricity and gas to the eligible customermarket. Also included is the sale of electricity to customers eligible for “higherprotection”.In addition to the activities carried out directly by A2A S.p.A., the Energy Sector also includesthe following companies:EnergyConsolidated companiesof the A2A GroupThermoelectric andhydroelectric plantsEnergy ManagementSale of electricity and gas• Abruzzoenergia• A2A Energia• A2A Trading• Edipower• Plurigas• Aspem Energia• EPCG(1) Includes 100% of the Edipower S.p.A. plants and the EPCG plants.

Half-yearly financial report at June 30, 2013Energy sectorDue to the line-by-line consolidation of the shareholding in Edipower S.p.A. from June 1, 2012,the quantitative and economic figures for the period are not comparable with those for the sixmonths ended June 30, 2012.Quantitative data-electricity sectorKey quantitative data relating to the Energy Sector are summarized below.GWh 06 30 2013 06 30 2012 Change % 2013/2012SOURCESNet production 5,930 4,978 952 19.1%-thermoelectric production 3,518 3,538 (20) (0.6%)-hydroelectric production 2,411 1,440 971 67.4%-photovoltaic production 1 – 1 n.a.Purchases 16,471 17,141 (670) (3.9%)-single buyer 1,381 1,502 (121) (8.1%)-exchange 4,919 5,155 (236) (4.6%)-foreign markets 5,871 6,462 (591) (9.1%)-other purchases 4,300 4,022 278 6.9%TOTAL SOURCES 22,401 22,119 282 1.3%USESProtected market sales 1,381 1,502 (121) (8.1%)Sales to eligible customers and wholesalers 9,850 9,060 790 8.7%Sales on the exchange 6,240 5,388 852 15.8%Sales on the foreign markets 4,930 6,169 (1,239) (20.1%)TOTAL USES 22,401 22,119 282 1.3%Note: the sales figures are stated gross of any losses. The quantitative data relating to the EPCG Group are not included.199The Group's electricity output in the first six months of 2013 amounted to 5,930 GWh, to whichshould be added purchases of 16,471 GWh for a total availability of 22,401 GWh.Production, which from June 2012 includes 77% ( 2 ) of the production of the thermoelectric andhydroelectric plants owned by Edipower S.p.A., rose by 19.1% over the first six months of 2012.In particular thermoelectric production (3,518 GWh) was in line with the previous year (-0.6%)while hydroelectric production (2,411 GWh) increased by 67.4%.Purchases of electricity decreased by 3.9% over the first six months of 2012, from 17,141 GWh to16,471 GWh.________________(2) An amount of 23% of the production capacity of the Edipower S.p.A. plants is under contract to the Iren Group. The figure forproduction is therefore stated net of the electricity falling under this contract.

Half-yearly financial report at June 30, 2013Energy sectorSales of electricity on end markets and on the IPEX markets increased in turn by 8.7% and15.8% respectively, while there was a fall in sales on foreign markets (20.1%) and on theprotected market (-8.1%). Taken as a whole, the sales of electricity made by the energy sectorreached 22,401 GWh (22,119 GWh in the first six months of 2012).The following is a summary of the key quantitative data relating to the electricity sector of theEPCG Group:GWh 06 30 2013 06 30 2012 Change % 2013/2012200SOURCESProduction 2,282 1,220 1,062 87.0%- thermoelectric production 522 471 51 10.8%- hydroelectric production 1,760 749 1,011 n.a.Imports and other sources (74) 948 (1,022) n.a.- imports 65 641 (576) (89.9%)- other sources 4 20 (16) (80.0%)EPS (Serbian Electricity Company) (143) 287 (430) n.a.TOTAL SOURCES 2,208 2,168 40 1.8%USESDomestic market consumption 1,490 2,007 (517) (25.8%)Network losses 80 78 2 2.6%Other uses 63 28 35 n.a.Exports 451 22 429 n.a.EPS (Serbian Electricity Company) 124 33 91 n.a.TOTAL USES 2,208 2,168 40 1.8%The total availability of the EPCG Group during the period was 2,208 GW, a rise of 1.8% over thesame period of the previous year.This change is due to an increase in thermoelectric production, which despite the stoppagefor extraordinary maintenance at the Pljevlja thermoelectric plant rose by 51 GWh, and to anincrease in hydroelectric production (+1,011 GWh) due to the extraordinary precipitationwhich occurred during the first six months of the year.The fall in sales to end customers is on the other hand due to the loss of supplies made to alarge energy consumer. Compared with the first half of 2012, the company reduced its importrequirements (-576 GWh) while it increased its exports (+429 GWh).

Half-yearly financial report at June 30, 2013Energy sectorQuantitative data-gas sectorMillions of cm 06 30 2013 06 30 2012 Change % 2013/2012SOURCESProcurement 1,658 3,026 (1,368) (45.2%)Withdrawals from stock 149 181 (32) (17.7%)Internal consumption/GNC (5) (13) 8 (61.5%)TOTAL SOURCES 1,802 3,194 (1,392) (43.6%)USESEnd uses 868 970 (102) (10.5%)Thermoelectric uses 405 467 (62) (13.3%)Heat uses 84 79 5 6.3%Wholesalers 445 1,678 (1,233) (73.5%)TOTAL USES 1,802 3,194 (1,392) (43.6%)Quantities are stated at standard cm at an HCV of 38100 MJ on deliveryThe volume of gas brokered in the period fell by 43.6% over the first six months of 2012, from3,194 million cubic meters to 1,802 million cubic meters.This change was mostly due to the reduced sales on the wholesale gas market.201Compared to the same period of the previous year there was also a decrease in thermoelectricuses (despite the change in consolidation scope due to the acquisition of Edipower S.p.A.) andsales to end customers (-10.5%).Economic dataMillions of euro 01 01 2013 01 01 2012 Change06 30 2013 06 30 2012Revenues 2,199 2,654 (455)Gross operating income 293 167 126% of revenues 13.3% 6.3%Depreciation, amortization and provisions (172) (93) (79)Net operating income 121 74 47% of revenues 5.5% 2.8%Investments 31 25 6Revenues in the Energy Sector amounted to 2,199 million euro in the first six months of 2013(2,654 million euro in the six months ended June 30, 2012).The decrease of 455 million euro in revenues is mostly due to a significant contraction inbrokerage activity on the wholesale gas markets.

Half-yearly financial report at June 30, 2013Energy sectorGross operating income of 293 million euro rose by 126 million euro over the first six monthsof 2012. The main reasons for this increase was the good performance of the industrialportfolio, which despite the additional fall in demand in the second quarter of the yearbenefited from the greater availability of energy produced from hydroelectric sources andthe resulting consequences on the end market and on energy forward sales platforms. Thecontribution made by the trading portfolio was also positive. The EPCG Group made acontribution of 53 million euro to the result (-4 million euro in 2012), confirming the positivetrend seen in the first quarter of the year. The sector's result includes a provision ofapproximately 6 million euro made for the cost of redundancy schemes.Depreciation, amortization and provisions totaled 172 million euro, of which 90 million eurorelating to Edipower S.p.A. (the sector had charges for depreciation, amortization andprovisions of 93 million euro in the six months ended June 30 2012 of which 17 million eurorelating to Edipower S.p.A.). The increase in this item of 79 million euro is mainly due to theconsolidation of Edipower S.p.A. for the whole of the first half year in 2013.202As a result of the above changes, net operating income amounted to 121 million euro (74million euro for the six months ended June 30, 2012).Capital expenditure for the period totaled 31 million euro and mainly regarded extraordinarymaintenance at the thermoelectric plants at Cassano d’Adda (0.3 million euro), Gissi (1.1million euro) and Monfalcone (1.6 million euro).Extraordinary maintenance was also carried out at the hydroelectric plants at Timpagrande(0.6 million euro), Orichella (3.0 million euro) and in the Valtellina (0.8 million euro).For Edipower S.p.A., investments mainly relate to modernization work at the hydroelectricplants at Somplago, Chiavenna, Ampezzo and Tusciano (for a total of 7.6 million euro) and atthe thermoelectric plants at Piacenza, Turbigo, Brindisi and Chivasso (for a total of 5.3 millioneuro).The EPCG Group made investments of 2.5 million euro at the thermoelectric plant at Pljevlja(1.9 million euro) and the hydroelectric plants at Perucica (0.3 million euro) and Piva (0.3million euro).

Half-yearly financial report at June 30, 2013Environment sectorThe Environment Sector comprises the activities relating to the entire waste managementcycle. These activities are briefly described below:• Collection and street sweeping: street cleaning and the collection of waste fortransportation to its destination;• Treatment: an activity that is carried out in dedicated centers to recover or convert thewaste in order to make it suitable for the recovery of materials, energy recovery throughwaste to energy plants or disposal in landfills;• Disposal: this involves the final disposal of urban and special waste in combustion plantsor landfills, where possible recovering energy through waste to energy process or the useof biogas.203The following companies form part of the Environment Sector:EnvironmentConsolidated companiesof the A2A GroupCollection andstreet sweepingTreatmentDisposal andenergy recovery• Gruppo Ecodeco• Amsa• Aprica• Montichiariambiente• Partenope Ambiente• Aspem S.p.A.

Half-yearly financial report at June 30, 2013Environment sectorThe following is a summary of the key quantitative and economic data of the sector.Quantitative data06 30 2013 06 30 2012 Change % 2013/2012Waste collected (Kton)* 460 473 (13) (2.7%)Waste disposed of (Kton) 1,284 1,253 31 2.5%Electricity sold (GWh) 557 583 (26) (4.5%)Heat sold (GWht)** 646 567 79 13.9%(*) Waste collected in the municipalities of Milan, Brescia, Bergamo and Varese(**) Quantities at the plant entranceThere was a decrease of 2.7% in the quantity of waste collected in the first half of the year comparedto the same period of the previous year, mainly due to the continuation of the difficult economicsituation. The quantity of waste disposed of was however higher than that for same period of theprevious year (+2.5%) as the result of new disposal contracts acquired in the Milan and Pavia areas.204The production of heat by the waste to energy plants exceeded that for the first six months of 2012(+79 thermal GWh) due to the increased quantities required by the district heating sector. Thequantities of electricity sold accordingly fell by 4.5% from 583 GWh to 557 GWh.Economic dataMillions of euro 01 01 2013 01 01 2012 Change06 30 2013 06 30 2012Revenues 448 434 14Gross operating income 155 140 15% of revenues 34.6% 32.3%Depreciation, amortization and provisions (32) (43) 11Net operating income 123 97 26% of revenues 27.5% 22.4%Investments 18 17 1The Environment Sector posted revenues of 448 million euro in the period (434 million euroin the six months ended June 30, 2012).Gross operating income amounted to 155 million euro (140 million euro in the first half of2012). This figure includes revenues of 27 million euro relating to the previous period whichwere recognized in 2013 as the Decree of the Minister for Economic Development of April 24,2013 established that Opinion no. 535 of the Electricity and Gas Authority (AEEG) is not

Half-yearly financial report at June 30, 2013Environment sectorapplicable to 2012; this provided for a reduction of the CEC component of the CIP 6/92 price totake account of the level of prices on the gas market.Reduced revenues relating to the sale of electricity produced by plants falling under the CIP/6regime were recognized in the financial statements for the year ended December 31, 2012 onthe basis of the above opinion. With reference to 2013, this subject is governed by the so called“Decreto del fare” which is shortly to be converted into law.The Environment Sector's margin is also due to lower revenues compared to the previous yeararising from the ending of the CIP/6 convention for the waste to energy plant at Corteolona(Pavia), as the result of the loss of a number of foreign contracts concluded in 2012 and theeffects of legislative provisions (the Ministerial Decree of November 20, 2012 and Decree Lawno. 69 of June 21, 2013, so called “Decreto del fare”) regarding the valuation of the CECcomponent for 2013.Depreciation, amortization and provisions amounted to 32 million euro, a decrease of 11million euro over the figure for the first six months of 2012. This difference is due for 5 millioneuro to lower depreciation and amortization and for 6 million euro to reduced provisions forrisks.205As a consequence of the above changes net operating income amounted to 123 million euro(97 million euro for the six months ended June 30, 2012).Capital expenditure in the period totaled 18 million euro and related to collection vehicles andcontainers (7 million euro) and maintenance and development work on treatment plants andlandfills (7 million euro) and on waste to energy plants (4 million euro).

Half-yearly financial report at June 30, 2013Heat and services sector206The Heat and Services Sector comprises the activities of cogeneration, district heating andthe sale of heat, as well as other activities relating to heat management and facilitymanagement services. The following is a short description of these activities:• Cogeneration and district heating: production, distribution and sale of heat,production and sale of electricity, as well as operational and maintenance activities on thecogeneration plants and district heating networks;• Heat and other services: management of heating plants owned by third parties.The following companies form part of the Heat and Services Sector:Heat and ServicesConsolidated companiesof the A2A GroupCogenerationplantsDistrict heating networks• A2A Calore & Servizi• Proaris• Varese RisorseSale of heat andother services

Half-yearly financial report at June 30, 2013Heat and services sectorQuantitative dataGWht 06 30 2013 06 30 2012 Change % 2013/2012SOURCESPlants at: 756 668 88 13.2%- Lamarmora 320 296 24 8.1%- Famagosta 92 85 7 8.2%- Tecnocity 42 34 8 23.5%- Other plants 302 253 49 19.4%Purchased from: 710 643 67 10.4%- Third parties 171 145 26 17.9%- Other sectors 539 498 41 8.2%TOTAL SOURCES 1,466 1,311 155 11.8%USESSales to end customers 1,466 1,311 155 11.8%TOTAL USES 1,466 1,311 155 11.8%Notes:- The figures refer to district heating alone. Sales relating to heat management are not included.- Purchases include the quantities of heat purchased from the Environment Sector.207There was a rise of 11.8% in the sale of heat to end customers in the first six months of 2013compared to the same period of the previous year. Contributing to this increase were the newvolumes connected in 2012 and the low temperatures during the first six months of the year.As a result, the production and purchase of heat rose by 88 thermal GWh and 67 thermal GWhrespectively.

Half-yearly financial report at June 30, 2013Heat and services sectorEconomic dataMillions of euro 01 01 2013 01 01 2012 Change06 30 2013 06 30 2012Revenues 205 185 20Gross operating income 57 44 13% of revenues 27.8% 23.8%Depreciation, amortization and provisions (8) (18) 10Net operating income 49 26 23% of revenues 23.9% 14.1%Investments 13 19 (6)Revenues amounted to 205 million euro in the period (185 million euro in the six monthsended June 30, 2012).208Gross operating income reached 57 million euro, a rise of 13 million euro over the first half of2012. Contributing to this positive performance were the district heating segment, which inaddition to its commercial development also benefited from a per capita increase inconsumption due to the particularly cold weather, and the business of managing heatingplants owned by third parties. These positive effects were partially offset by a decrease inelectricity sales.Depreciation, amortization and provisions amounted to 8 million euro, a decrease of 10million euro over the first six months of 2012, due mainly to the release of a previouslyaccrued provision following the favorable outcome of a dispute.As a result of these changes net operating income amounted to 49 million euro (26 millioneuro in the six months ended June 30, 2012).Capital expenditure for the half year amounted to 13 million euro and related to maintenanceand development work on district heating networks (11 million euro) and cogeneration plants(2 million euro), mainly in the areas of Milan and Brescia.

Half-yearly financial report at June 30, 2013Networks sectorThe Networks Sector comprises the activities regulated by sector authorities relating to themanagement of the electricity and gas networks and the integrated water cycle. Theseactivities are briefly described below:• Electricity networks: the transmission and distribution of electricity;• Gas networks: the transport and distribution of natural gas;• Integrated water cycle: water captation, aqueduct management, water distribution,sewerage and purification;• Other services: activities relating to public lighting, traffic regulation systems, themanagement of votive lights and systems design services.209The following companies form part of the Networks Sector:NetworksConsolidated companiesof the A2A GroupElectricity networksGas networksIntegrated water cycle• A2A Reti Elettriche• A2A Reti Gas• A2A Ciclo Idrico• EPCG• Mincio Trasmissione• Camuna Energia• Retragas• Seasm• Aspem S.p.A.• A2A Servizi alladistribuzione

Half-yearly financial report at June 30, 2013Networks sectorThe following is a summary of the key quantitative and economic data of the sector.Quantitative data06 30 2013 06 30 2012 Change % 2013/2012Electricity distributed (GWh) 5,533 5,737 (204) (3.6%)Gas distributed (Mcm) 1,227 1,195 32 2.7%Gas transported (Mcm) 234 230 4 1.7%Water distributed (Mcm) 32 33 (1) (3.0%)Electricity distributed in the first half of the year amounted to 5,553 GWh, a decrease of 3.6%over the same period in 2012. The quantity of gas distributed however rose by 2.7% over thefirst six months of 2012 mainly as the result of the lower temperatures recorded during theperiod.210The quantity of gas transported totaled 234 Mcm (230 Mcm in the six months ended June 30,2012).Water distributed amounted to 32 Mcm (33 Mcm in the six months ended June 30, 2012).The EPCG Group distributed electricity on the low and medium voltage network inMontenegro totaling 1,274 GWh, a decrease of 2.8% over the six months ended June 30, 2012,mainly due to the ending of supplies to a large energy consumer in the second half of 2012.EPCG 06 30 2013 06 30 2012 Change % 2013/2012Electricity distributed (GWh) 1,274 1,311 (37) (2.8%)Economic dataMillions of euro 01 01 2013 01 01 2012 Change06 30 2013 06 30 2012Revenues 361 363 (2)Gross operating income 121 134 (13)% of revenues 33.5% 36.9%Depreciation, amortization and provisions (52) (54) 2Net operating income 69 80 (11)% of revenues 19.1% 22.0%Investments 50 53 (3)The Networks Sector had revenues of 361 million euro in the period, of which 35 million euroattributable to the EPCG Group (363 million euro in the six months ended June 30, 2012, ofwhich 38 million euro attributable to the EPCG Group).Gross operating income closed at 121 million euro, a decrease of 13 million euro over the sixmonths ended June 30, 2012. This fall was essentially due to the provisions made for the

Half-yearly financial report at June 30, 2013Networks sectorredundancy schemes in connection with the business restructuring plan. Excluding that effect,the sector's gross operating income was essentially in line with that of the same period of theprevious year.In the electricity distribution sector the negative consequences of new legislation (Resolutionno. 559/12 of the AEEG), which amended the criteria for calculating distribution losses, wasoffset by a decrease in disposal costs and the effect of the non-recurring expenses incurred inthe first half of 2012.The gross operating income of the gas distribution segment fell slightly: the increased costsincurred from the adjustment of concession fees for satisfying the requirement for whitecertificates were partially offset by the increase in revenues for connection fees and services.The contribution from the electricity distribution segment of the EPCG Group also fell overthe first six months of 2012, mainly as the result of the lower quantities of energy distributedto a large energy consumer.The performance of the Integrated Water Service was on the other hand positive compared tothe first half of 2012 as the result of the introduction of the new tariffs for 2013.211Depreciation, amortization and provisions amounted to 52 million euro, essentially in line withthe first six months of 2012.As a result of the above changes, net operating income amounted to 69 million euro (80million euro in the six months ended June 30, 2012).Capital expenditure in the Milan and Brescia areas in the half year amounted to 41 million euroand regarded:• in the electricity distribution segment, development and maintenance work on plants andin particular the connection of new users, the maintenance of secondary cabins, theextension and refurbishment of the medium and low voltage network and themaintenance and upgrading of primary plants (18 million euro);• in the gas distribution segment, development and maintenance work on plants relating tothe connection of new users and the replacement of medium and low pressure piping andgas meters (17 million euro);• in the integrated water cycle, work carried out on the water transportation anddistribution network and the sewerage networks (6 million euro).The EPCG Group made investments of 9 million euro which regarded development andmaintenance work carried out on the electricity distribution network (1.4 million euro) andthe replacement of meters (7.6 million euro).

Half-yearly financial report at June 30, 2013Other services and corporate212The following is a brief description of the activities carried out by this sector:• Corporate ( 3 ): direction, coordination and control activities, such as businessdevelopment, strategic direction, planning and control, financial management andcoordination of the Group's activities; central services to support the business andoperating activities (e.g. administrative and accounting services, legal services,procurement, personnel management, information technology, communication services,etc.) provided by the parent company under specific intercompany service agreements;• Other services: activities relating to video-surveillance, data transmission, telephony andinternet access services.In addition to the activities carried out directly by A2A S.p.A., this area also includes thefollowing companies:Other services andcorporateConsolidated companies of the A2A GroupOther servicesCorporate• Selene• Aspem S.p.A.• A2A Logistica• EPCG(3) This includes the General Manager's Office (Corporate and Market Area), the General Manager's staff (Technical-OperationsArea) and the staff of the Office of the Chairman of the Management Board and of the Chairman of the Supervisory Board.

Half-yearly financial report at June 30, 2013Other services and corporateEconomic dataMillions of euro 01 01 2013 01 01 2012 Change06 30 2013 06 30 2012Revenues 115 123 (8)Gross operating income (loss) (16) (1) (15)% of revenues (13.9%) (0.8%)Depreciation, amortization and provisions (16) 4 (20)Net operating income (loss) (32) 3 (35)% of revenues (27.8%) 2.4%Investments 6 12 (6)The Other Services and Corporate Sector earned revenues of 115 million euro in the first sixmonths of 2013 (123 million euro in the six months ended June 30, 2012).The sector closed the half year with a loss of 16 million euro (-1 million euro in the first half of2012). The result of the first half year was affected by charges for provisions for non-recurringitems (costs of redundancy schemes and those connected with settling disputes), and is beingcompared with a result for the first half of 2012 which on the contrary benefited by nonrecurringincome arising from the favorable outcome of past disputes.213Depreciation, amortization and provisions amounted to 16 million euro (income of 4 millioneuro in the six months ended June 30, 2012). This change is mainly due to the release ofpreviously accrued provisions in the first half of 2012.After depreciation, amortization and provisions there was a net operating loss of 32 millioneuro (net operating income of 3 million euro in the six months ended June 30, 2012).Capital expenditure for the period amounted to 6 million euro and mainly related toinvestments in information systems (3.7 million euro) and telecommunication networks (0.6million euro).

214Half-yearly financial report at June 30, 2013

Risks and uncertainties

Half-yearly financial report at June 30, 2013Risks and uncertaintiesThe A2A Group has a risk assessment and reporting process based on the Enterprise RiskManagement method of the Committee of Sponsoring Organizations of the TreadwayCommission (COSO report), whose purpose is to make business risk management an integraland systematic part of management processes.216In 2011, Consob updated the Corporate Governance Code for Listed Companies, introducingthe subject of risk and the respective responsibilities of the various corporate bodies in thisrespect. In particular “… Each issuer shall adopt an internal control and risk managementsystem consisting of policies, procedures and organizational structures aimed at identifying,measuring, managing and monitoring the main risks…” (article 7.P.1). A2A had already defineda risk model in 2010 that takes account of the Group's characteristics, its multi-businessvocation and the sector to which it belongs. The Company has set up an action plan aimed onthe one hand at further developing the present risk model and on the other at consolidatingrisk management and mitigation in the process with the objective of further developing riskmanagement activities and integrating these into business processes.The risk assessment process is carried out on a periodic basis, and by involving all the businessstructures enables the most important risks to be identified and the relative controls andmitigation plans to be set up.Set out below is a description of the main risks and uncertainties to which the Group isexposed, considering the sectors in which it operates and the distinctive features of itsbusiness model.

Half-yearly financial report at June 30, 2013Risks and uncertaintiesFinancial risksCommodity price riskGiven the features of the sectors in which it operates, the Group is exposed to commodityprice risk, namely the market risk linked to changes in the price of energy raw materials(electricity, natural gas, coal and fuel oil) and the exchange rates connected with these.On an annual basis, when it approves the budget the Management Board of A2A S.p.A.establishes the commodity risk limits for the Group, meaning the maximum level of variabilityin the result arising from changes in energy commodity prices.Consistent with the Group’s Energy Risk Policy, the Risk Committee ensures compliance withthese limits and where necessary defines the hedging strategies designed to bring risk withinthe set limits.Market risk is managed centrally by means of a netting process applied to the entire exposureof the Group’s portfolio, which is constantly monitored.The objective of stabilizing the cash flows generated by the asset portfolio and outstandingcontracts is sought through the use of derivative financial instruments, thus contributing toensuring that there is economic and financial equilibrium in the Group.217Interest rate riskThe A2A Group’s interest rate risk mainly derives from the volatility of interest expense arisingfrom floating rate debt.The policy for managing interest rate risk has the objective of limiting that volatility first andforemost by selecting a balanced mix of fixed and floating rate loans and then additionally byusing hedging derivative instruments which limit fluctuations in interest rates.In order to analyze and manage the risks relating to interest rate risk the Group has developedan internal model enabling the exposure to this risk to be calculated using the Montecarlomethod, assessing the effect that fluctuations in interest rates have on future cash flows.

Half-yearly financial report at June 30, 2013Risks and uncertaintiesLiquidity riskLiquidity risk regards the Group’s ability to meet its payment commitments through the use ofself-financing, funding on the banking and financial markets and available cash.Taking also into consideration the context in which it does business, which is characterized bygreater volatility and potential situations of uncertainty on the financial markets, the Groupplaces specific emphasis on a constant control of liquidity risk, ensuring that adequate fundsare always available to meet expected commitments for a specific time period as well as aliquidity buffer that is sufficient to meet unexpected commitments.218In this context the Group also has a policy of diversifying the due dates of its debt and otherfunding sources and to this end a Euro Medium Term Note Programme has been set up with aceiling of 2 billion euro which was approved by the Management Board on September 19, 2012,as part of which the following transactions have been carried:• a seven year bond was issued on November 28, 2012 for 750 million euro, aimed atinstitutional investors for the purpose of pre-financing and extending the average debtterm;• a seven and a half year bond was issued on July 10, 2013 for 500 million euro, aimed atinstitutional investors, with the funds being used to make early repayment of an instalmentof the bonds maturing in 2014 and 2015, at the same time extending the average debt term.A loan agreement for 95 million euro was signed with the state investment bank Cassa Depositie Prestiti on June 12, 2013 due in 2013, which has not yet been used.In addition on April 22, 2013 A2A S.p.A. signed a Club Deal revolving credit line with a group ofItalian and international banks for a total of 600 million euro having a five year term andarranged mainly for backup purposes.At June 30, 2013 the Group had 1,640 million euro of unutilized revolving committed lines ofcredit available, medium-long term facilities, forming part of agreements but not yet used,totaling 161 million euro and cash of 710 million euro, of which 489 million euro held by theparent, mainly arising from the bond issue of November 28, 2012.Default risks and covenantsAt June 30, 2013 the parent had issued two public bond loans having a total nominal value of2,750 million euro, of which amounts totaling 500 million euro issued in October 2003 and May2004 and falling due in October 2013 and May 2014 respectively; 1 billion euro issued inNovember 2009 and falling due in November 2016; and 750 million euro issued in November

Half-yearly financial report at June 30, 2013Risks and uncertainties2012 and falling due in November 2019. As described above, on July 10, 2013 A2A S.p.A.additionally issued a public bond for 500 million euro redeemable in January 2021.The bonds that have been issued have terms and conditions that are in line with the market forthat specific type of lending instrument.Credit rating clauses exist in the loan agreements with the European Investment Bank (inparticular for loans originally of 100 million euro falling due in 2014-2016, 200 million eurofalling due in 2023, 200 million euro falling due in 2025/2026, 95 million euro falling due in 2026and 70 million euro of which 30 million euro drawn, falling due in 2027), for ratings lower thanBBB or the equivalent. As a result of the downgrading to Baa3 by the ratings agency Moody’s inNovember 2012 and as the result of talks with the EIB as specified in the loan agreements anaccord was reached with the EIB to amend those agreements which provides for theactivation of the credit rating clause should the rating fall below BBB- or an equivalent level.In addition, the EIB loan agreements for 200 million euro falling due in 2025, 95 million eurofalling due in 2026 and 70 million euro (of which 30 million euro drawn) falling due in 2027,entitle the bank to call for the early repayment of the loan in the case of a change of control ofthe parent, subject to prior notification to the company with an indication of the reasons.219The agreement entered into with UniCredit, brokered by the EIB, for a floating rate loan of 85million euro falling due in June 2018 contains a credit rating clause that provides for acommitment by the company to maintain an investment grade rating for the whole loan term.If that commitment is not met, certain covenants relating to the debt/equity ratio, thedebt/gross operating margin ratio and the gross operating margin/ interest expense ratio mustbe satisfied on an annual basis.A credit rating clause is also contained in the agreements for the two loans taken out withCassa Depositi e Prestiti originally of 200 million euro falling due in 2025 and 95 million eurofalling due in 2023 and comes into effect in the event of a rating below investment grade(BBB-); the latter loan was entered into in June 2013 and has not yet been drawn down.In addition, the agreement for the private bond loan in yen falling due in 2036 – and the relatedcross currency swap derivative – contains a put right clause in favor of the investor (and thefinancial counterparty in the case of the derivative) which comes into effect if the rating islower than BBB- (sub-investment grade).Covenants are included in the agreements for the loan of 1,196 million euro made in May 2012to Edipower S.p.A. and Delmi S.p.A. bearing floating rate interest and falling due in May 2017;these relate to the NFP/EBITDA ratio, the debt service cover ratio and the investment ceiling.This loan is secured by a lien on the shares of Edipower S.p.A. and Delmi S.p.A..

Half-yearly financial report at June 30, 2013Risks and uncertaintiesAs stated above, the A2A Group has obtained a number of revolving committed lines of creditfrom various financial institutions for a total of 1,640 million euro (of which 1,590 million euroobtained by A2A S.p.A.) which are not subject to any covenants, with the exception of:• the revolving line of credit of 50 million euro granted to Edipower S.p.A. (currently notdrawn) having the same covenants as the principal loan;• the revolving credit line (currently not drawn) entered into by A2A S.p.A. in April 2012 for atotal of 600 million euro having a five year term for which a covenant based on the ratiobetween the net financial position and EBITDA must be complied with.The following are included in the agreements for the bond loans, the above-mentioned loansand the revolving committed lines of credit: (i) negative pledge clauses under which theparent undertakes not to pledge real guarantees on its assets or those of its directly heldsubsidiaries over and above a specific threshold; (ii) cross default/acceleration clauses whichentail immediate reimbursement of the loans in the event of serious non-performance; and(iii) clauses that provide for immediate repayment in the event of declared insolvency on thepart of certain directly held subsidiaries.220The loan taken out by the subsidiary Abruzzoenergia S.p.A. is secured by a mortgage of up to264 million euro.Certain financial covenants which are included as part of a loan of 35 million euro taken out bythe subsidiary EPCG with the EBRD (European Bank for Reconstruction and Development), ofwhich 23.5 million euro had been drawn at June 30, 2013, were not fully complied with atDecember 31, 2012 . An agreement has been reached with the lending bank which provides forthe suspension of the effects of these covenants with retroactive effect.As matters currently stand there is no default on the part of companies of the A2A Group.Context riskLegislative and regulatory riskThe A2A Group operates in a highly regulated sector. As a consequence, one of the risk factorsof the business is the constant and not always predictable evolution of the legislative andregulatory situation for the electricity and natural gas sectors, as well as for the sectorsrelating to the management of the water cycle and environmental services.In order to deal with these risk factors the Group has adopted a policy of monitoring andmanaging legislative risk by having various levels of control, in order to mitigate the impact of

Half-yearly financial report at June 30, 2013Risks and uncertaintiesthis to the extent possible. This involves collaborative dialogue with the institutions and withthe bodies which govern and regulate the sector, active participation in trade associations andthe work groups set up at these entities and a detailed review of changes in legislation and theprovisions issued by the sector Authority.It also involves constant dialogue with the business units affected by legislative changes inorder to assess the potential effects in full.The main topics involved in current changes in legislation are as follows:• the rules governing the terms and conditions of large hydroelectric derivationconcessions;• the regulations concerning the granting of concessions for the gas and electricitydistribution service;• the reform of the integrated water service currently in progress;• the regulation of local public services of economic importance;• the evolution of the rules of CIP 6/92 conventions;• forecasts of economic conditions for the supply of gas for the protected service.For the above matters reference should be made to the section on “Changes in legislation” ofthis Report, under the various sectors.221However as far the forecasts of economic conditions for the supply of gas for the protectedservice are concerned, the following information is provided in addition to that contained in thesection mentioned.Following a sequence of various measures taken by the AEEG, by way of Resolution no.124/2013/R/gas the Authority has implemented the first phase of the reform of the means ofdetermining the economic conditions for the supply of gas (for the period from April 1 toSeptember 30, 2013), providing for a revision of the weights of the Ptop (80%) and Pmkt(20%) indices and changes to the QS component covering the storage service costs.By way of Resolution no. 196/2013/gas, the Authority subsequently approved the second partof the reform with a structural revision of the means of updating the component coveringprocurement costs and an adjustment of the retail sales marketing component. This phaseprovides for innovative means of calculating raw materials from October 1, 2013, by taking as areference solely the spot prices of the wholesale market.The dispute over Resolution no. ARG/gas89/10 is still pending; with this resolution the AEEGamended the way in which the price of the supply of gas for the protected service isupdated by applying a reduction coefficient “k” to the indexed component of the energy

Half-yearly financial report at June 30, 2013Risks and uncertaintiesquota (QE) (a variable fee covering procurement costs). In this respect the RegionalAdministrative Court issued a sentence favorable to the petitioners in March, a sentenceagainst which the Authority has filed an appeal with the Council of State.In conclusion, by way of Decree Law no. 69 of June 21, 2013 on “Urgent provisions to boost theeconomy”, the government required a change to be made of the boundary of end customersentitled to the gas protection service, excluding non-domestic customers. With regard to thismatter parliament is currently working on converting the decree into law.Operating risksBusiness interruption risk222All of the Group's sectors of activity involve managing production sites which aretechnologically and operationally complex (electric power stations, waste disposal plants,cogeneration plants, distribution networks, etc.), where a breakdown or accidental damagecould lead to a lack of availability and in turn to financial losses and possibly harm to theGroup's reputation due to the interruption of the services provided.These risks are linked to a variety of factors which, in the case of certain plants, could what ismore be accentuated by changes in the competitive context and in the reference markets. Tothe extent that the risk of unavailability of the plants may be considered an inherent part of thebusiness and a risk that is impossible to eliminate entirely, the Group sets up preventive riskmitigation strategies in all of its sectors to reduce the probability of such risks occurring andaction strategies aimed at limiting any impact.Safeguarding the Group's assets involves adopting and continuously updating procedures forscheduled maintenance, of both an ordinary and preventative nature, aimed at preventingpotential critical situations, identified amongst other things on the basis of specificengineering analyses carried out by dedicated technical staff, all in line with best practice. Italso involves periodically reviewing the plants and networks as well as providing specifictraining courses for technical personnel. In addition, the A2A Group makes widespread use ofinstruments for the control and remote control of technical parameters for the monitoringand timely detection of any anomalies as well as having a back-up of the components neededto guarantee operational continuity, where possible. The integration process between thespecialist engineering teams in the A2A Group and the technicians from Edipower S.p.A. willlead to a strengthening of the skills relating to plant performance analyses.In addition, the progressive adoption is planned at all of the Group’s plants of advancedsoftware and sensors for calculating the actual yield of the plants, aimed at enabling an

Half-yearly financial report at June 30, 2013Risks and uncertaintiesapproach to be taken that is even more predictive compared to the past as far as the planningand performance of maintenance is concerned. The gradual adoption of the above controls isalso envisaged in the case of the acquisition of new production sites, to facilitate theiralignment to the Group’s standards.Improvements designed to further mitigate the risk of business interruption continuedduring 2012. This process was characterized by investments regarding the Group’s assets,through targeted intervention on plants and networks of a critical nature, and thedevelopment of interconnections between transmission networks to avoid congestion risks.With a view to preventing any breakdowns, the plant modifications carried out at one of theGroup’s plants following an episode of temporary down time caused by a design fault havebeen extended to all of the turbogas groups, including those of Edipower S.p.A..Due to the start-up of the pooling of critical spare parts, the monitoring for any top-up spareparts required in the plant stores and the continuous updating of the proceduraldocumentation supporting operations, the process for managing thermoelectric plants safelyis well controlled as a whole. In this respect, with a view to constant improvement, a project forthe creation of a “virtual” spare parts inventory has been started up, which through a suitableinformation system will enable the number and location of the spare parts available for all theGroup’s power stations to be mapped.223To control the risks arising from the necessary and frequent stopping and starting of thethermoelectric plants due to the present conditions of the energy market, maintenancecontracts have been re-negotiated to adjust the maximum annual number of stops and startscovered by those contracts.In respect of the Environment Sector, specific activities and monitoring tools exist to prevent thepossible occurrence of the risk of interruption to the waste transportation and disposal service.In particular, specific controls have been set up to identify the presence of unsuitable substancesin the waste to be taken to waste to energy plants.To mitigate any repercussions on the Group’s reputation due to the temporaryimpossibility to transport waste, there is also the possibility of mutual assistance betweenthe Group’s plants and the centralized coordination of planned stoppages for maintenance.As far as the distribution networks are concerned, technical safety tools and contingencyplans are in place if any especially critical natural events should occur, such as for exampleearthquakes or especially bad weather.The Group takes an active part in projects regarding the development of the electricitynetwork from a “smart grid” standpoint, meaning by this a network with which it is possible to

Half-yearly financial report at June 30, 2013Risks and uncertaintiesexchange information on energy flows and manage demand peaks more efficiently, thusreducing the risk of interruption. In particular, a project is currently in progress which willenable remote control to be improved by increasing the effectiveness of the communicationsystems. A wider project regards the development of telecommunications systems capable ofhandling exchanges of information between the producer and consumer of electricity, amongother things to give the network a greater capacity to manage the increasing presence ofplants fired by non-programmable renewable sources. Operative means of regulating thecustomer’s consumption during specific time bands have been successfully tested in thedistrict heating sector; these are designed to avoid excessive peaks in the use of installedpower with the resulting possibility of critical matters arising regarding the optimal working ofthe networks.Finally, the Group takes out insurance cover against any direct and indirect damage which mayarise from other types of risk.224Environmental riskThe risks associated with events that impact the environment or the health of the populationliving in the areas affected by the Group's activities (for example the disposal of productionwaste, emissions from production processes, waste collection and disposal management) arethe object of increasingly close attention by public regulators and ever more stringentlegislation.The Group is significantly involved in preventing such risks and has adopted a policy documententitled “Policy for the Quality, Environment and Safety of the A2A Group” which is the toolwhich now sets out the Group's approach to such questions. This document, which is widelydistributed both internally and externally, explains the values which underlie the Group'soperations and which the Environment, Health and Safety Department is committed todisseminating and sharing as guidance for the day-to-day work of all concerned. TheEnvironment, Health and Safety Department also supports top management in establishingcompany policy in these areas, checking that this is implemented properly in compliance withthe rules applicable in all areas and internal processes.The process of updating the 231 Organizational and Management Model for the introductionof environmental offenses continued in 2012. In addition, the Environment, Health and SafetyDepartment has been rearranged from both an organizational and procedural standpointwith the aim of optimizing its processes to make these increasingly compliant with thefeatures of the Group’s business, as a support for a control which is ever more geared towardsoperations.

Half-yearly financial report at June 30, 2013Risks and uncertaintiesThe operational implementation of the policy is carried out through the use of anEnvironmental Management System (EMAS) by those operating entities of the Group whichare more exposed to both direct and indirect potential environmental impact. This systemprovides for a program of progressive extension and upgrading to the standards of ISO14001certification for those of the Group's main activities having a greater impact on theenvironment, as well as the management of EMAS certification for the Group's main plants.The Edipower plants are UNI EN ISO 14001 certified and as of today all hold the EMAScertification. For the purpose of arriving at a single model, measures are being taken, now atthe completion stage, which will allow all the operating companies of the Group to refer to asingle, integrated Quality, Environment and Safety system.In addition, organizational control units have been set up which among other things carry outperiodic environmental analyses alongside periodic audits to detect and prevent any conductthat does not comply with the environmental procedures established for all of the Group’soperating companies. From the perspective of having a constant evolution of the systemscontrolling environmental risk, the Group has joined the ARPA (Regional Agency for theProtection of the Environment) Lombardy Project, whose purpose is to improve theefficiency of the system for controlling the more significant emissions, also in the light oftechnical developments in the sector, by connecting all the Emission Monitoring Systems(SMEs) to a single control center.225The A2A Group has taken out insurance cover against damage arising from both accidentaland gradual pollution in order to cover any residual environmental risk, meaning againstevents caused by a sudden and unpredictable fact and in the case of environmental damageinherent in the continuous exercising of activities.Each year the Group publishes a Sustainability Report which reports key data and informationon the environmental and social aspects connected with the Group’s activities. TheSustainability Report conforms to standard GRI-G3.1 issued by the Global Reporting Initiativeand since 2010 has been certified by the auditors. In line with Group practice, Edipower S.p.A.also publishes an annual Sustainability Report.Information technology riskThe activities of the A2A Group are managed through complex ICT systems which support themain business processes: operational, administrative and commercial. Potential risk factorsinclude the inadequacy of such systems compared to business needs or the failure to keepthese updated, possible “downtime” making the systems unavailable and the inadequatehandling of the aspects linked to the integrity and confidentiality of information. These risk

Half-yearly financial report at June 30, 2013Risks and uncertaintiesfactors are mitigated by controls governed by the Information & Communication TechnologyDepartment.In 2012 the Group continued the process of integrating and consolidating its ICT systems,determined on the basis of the changes in corporate structures which have taken place inprevious years. A program for the evolution of the key information systems supportingadministration and commercial activities, which in 2012 saw the integration of a singleplatform for the distribution support systems, was planned to strengthen the process, inorder to continue with the updating of the reference platform to further increase its level ofreliability and integration. The addition of Edipower S.p.A. into the Group will call for a furthersystems integration process, which will make it possible to exploit all synergies to the utmostand to obtain an increasingly efficient and integrated information infrastructure.226To mitigate the potential risks of the interruption of business activities on strategic processes,A2A makes use of technological back-up infrastructure which is able to ensure the continuity ofthe service in case of breakdowns or unexpected events. The Group has a disaster recoverysystem that ensures service and data continuity at an alternative ICT centre, whose efficiency istested periodically. The Group has now completed the system for mutual recovery between theICT centers in Milan and Brescia to improve protection.Considering the importance of the activities that are carried out every day on the ItalianPower Exchange, particular attention is given to controlling the systems interfacing with themarket. These systems have in fact been duplicated and are subject to specific managementand maintenance procedures designed to protect their stability. A specific control wasdeveloped in 2012, active round the clock, to support trading activities.Data confidentiality and security are subject to specific controls by the Group through the useof internal policies and by means of tools to segregate access to information, as well asthrough specific contractual agreements with any third parties who may have to access theinformation handled. In order to improve the existing control further, work has begun tocheck the alignment between the organizational role model and the segregation of dutiestechnical role model implemented in the systems. Consistent with this work, it is planned togradually adopt identity management and access control tools designed to ensure anincreasingly effective control over the processing of data critical for the business. A team hasbeen set up to prevent and monitor any possible hacking into the Group’s informationsystems and specific applications solutions have been acquired to manage and controlinformation security.As a further control of this specific risk issue the Group carries out annual vulnerabilityassessments, both internally and externally. For 2013 it is planned to update the operating

Half-yearly financial report at June 30, 2013Risks and uncertaintiespolices for access to information and data and to transfer all the business software that allowsthis to active directory.As regards Edipower S.p.A. and information security, a “Safety platform” exists as anorganizational control. In addition, a data warehouse environment and a structured dataaccess application are operative for data availability, while disaster recovery solutions andback-up models of the certified data exist with respect to information integrity.Health and safety riskThe Group operates in a heterogeneous business context characterized by a strongtechnology element and the presence of personnel at its plants and throughout its territory.Certain Group activities are, by their nature, more exposed to the risk of “typically workrelated”accidents linked to the operational services in the territory and the performance oftechnical services and activities at the plants.The prevention measures adopted aim for a “zero risk” objective through the Quality,Environment and Safety Policy (which provides for a program to upgrade the personnel safetymanagement system to comply with ISO 14001 and OHSAS 18001 standards), encouraging aconstant rise in the level of safety in the workplace.227In addition to the normal safety audit activity, the process for adopting the SafetyManagement System in accordance with the specific standard BS OHSAS 18001/2007 wascompleted in Edipower S.p.A. in 2011, with the company obtaining the relative OHSAS 18001certification for all its production units.A central Prevention and Protection Service has been set up as part of the Quality,Environment and Safety Department in order to harmonize the objectives of safety andprotection in Group companies and to monitor that these standards are also being followedby contractors at both the prequalification stage and the execution stage at worksites.A gradual strengthening of the organizational control structure is planned, which amongother things carries out specific inspections to monitor compliance with legislation as well aspersonnel update training. In this respect specific training plans have been established foreach business position and responsibility and a start has been made to these training courses.The guidelines defining the means of identifying roles on safety matters and the relativepersonnel charts were revised in 2012. Finally, there is also a program of employee healthsurveillance, conducted with the aid of a team of doctors located in the various areas whocarry out periodic assessments on the state of health of personnel.

Half-yearly financial report at June 30, 2013Risks and uncertaintiesA plan to refine the system of disseminating information on accidents and injuries has begunto support the process of constant improvement in safety matters. This project provides forperiodic reporting, which by means of increasingly detailed specific indices and informationwill provide support for identifying the causes of accidents and injuries and taking correctiveand mitigating action.Further information on the management of health and safety in the workplace may be foundin the A2A Group’s annual Sustainability Report, together with performance indicators andadditional details.228

Responsiblemanagement forsustainability

Half-yearly financial report at June 30, 2013Human resources and industrialrelationsAt June 30, 2013 the Group had 12,584 employees, of whom 2,616 work for the EPCG Group, adecrease of 342, or 2.6%, over June 30, 2012.The unit labor cost for employees in Italy increased by 0.3% over the figure for the first half of2012. This result was achieved by reducing the effect of automatic contractual rises (the nationalcollective bargaining agreement and seniority increases) by taking steps to make costs moreefficient, in particular by reducing overtime and accrued holiday leave not yet taken.230The main activities which took place in the first half of 2013 regarding industrial relations aredescribed in the followingA Framework Agreement was signed in April 2013 for using the Cassa Integrazione GuadagniOrdinaria (CIGO) and Redundancy schemes. It is expected that the CIGO scheme, whichregards certain thermoelectric plants, will be in use from April 2013 to April 2015 withemployee rotation. An amount will be added to employees' wages as income support.As far as the Redundancy scheme is concerned 130 people in the “staff” areas eligible forretirement will leave the company by December 31, 2014 as the result of the integration ofEdipower S.p.A. into the Group. There will be “no opposition” to laying people off under thisscheme during the initial application phase.In addition to the Redundancy scheme indemnity payable by law, workers laid off under thisscheme will also receive an amount added to their wages as income support. The Agreementalso requires that negotiations should begin on harmonizing the economic and legislativeschemes applicable in the individual Group companies, including Edipower S.p.A..Talks with the trade unions on the employment contracts in force in the Ecodeco Group endedon March 13, 2013 with the signing of an agreement for the rationalization of certain itemsconcerning the legislative and economic treatment of employees under the Chemical andPharmaceutical Industry national collective bargaining agreement (C.C.N.L.).Specific agreements were signed concerning A2A Trading S.r.l. (Milan offices), for theimplementation of a telephonic recording system, and A2A Reti Elettriche S.p.A., for the

Half-yearly financial report at June 30, 2013Human resources and industrial relationsapplication of the requirements of attachment A, article 14.3 of Electricity and Gas AuthorityResolution Gas ARG/elt no. 198/11 regarding the audio recording of calls for the purposespermitted by current legislation.Work continued on the enhancement of the video-surveillance system used for protecting theGroup's assets and technological equipment with the signing of specific memoranda pursuantto article 4 of Law no. 300 of May 20, 1970; these relate to the Milan premises of A2A RetiElettriche S.p.A. and A2A Reti Gas S.p.A..The trade union procedure as per article 47 of Law no. 428/1990 was concluded in June; thisprocess led to the establishment of A2A Ambiente S.r.l. as the biggest and most importantItalian entity in the waste treatment and disposal sector.In respect of the “networks area” reorganization project, a Framework Agreement was signedin July 2013 valid for A2A Reti Gas S.p.A., A2A Reti Elettriche S.p.A. and A2A Servizi allaDistribuzione S.p.A..Under this agreement a total of 150 people eligible for retirement willleave the company between 2013 and 2017 through the use of separate Redundancy schemeprocedures. In this case too there will be “no opposition” to laying people off under thisscheme. An economic package designed to supplement the amounts payable by law will beapplicable for the workers involved in the Redundancy scheme procedure.231Salient features of the Agreement consist of the recognition of professional growth throughspecific training courses, the professional enhancement of young people through the gradualstabilization of employment contracts other than those of a permanent nature, the possibilityof considering the use of in-sourcing for specific activities and, for certain skills, the possibilityof managing a targeted turnover.A social policy team has been active since January 2013 as part of Corporate Personnel andResource Development whose aim is to design and develop welfare activities for A2A Groupemployees.As far as training activities for Group employees are concerned ( 1 ), a total of approximately45,000 training hours had been given by June 30, 2013 with 10,036 attendances. The figuresshow that a significant number of training hours were given in the first 6 months of the year onsafety and environmental issues.More specifically, around 27,000 hours were dedicated to worker safety, around 9,000 hoursto technical subjects and around 4,450 hours to environmental matters.(1) Training figures do not include Edipower S.p.A. or the EPCG Group

Half-yearly financial report at June 30, 2013Human resources and industrial relationsManagement training began in 2013 on the basis of the 2012 schedule, with around 2,400hours of training given in the first half of the year.A2A has a Performance Management system that is gradually involving larger numbers of theGroup's population. In 2009 a process was initiated which in 2012 led to an appraisal of all ofthe Group's managers, middle managers and administrative personnel (excluding CamunaEnergia S.r.l.).232The system is applied on an annual basis and as far as the process and areas of assessment areconcerned depends on the reference population. The tool appraises and addresses threebasic components of a person’s organizational work:• the results achieved individually compared to the allocated objectives (only for managers,supervisors and middle managers);• people’s conduct in comparison with a map of relevant skills for the position; skills whichreflect the Group’s values, including sustainability;• the personal improvement plan, which identifies the personal improvement goals for theskills held and the learning action required.The people involved as appraisers in the performance management system have receivedappropriate training on the model adopted by the Group and on skill assessment and thefeedback meeting. Newly-appointed supervisors were involved in training for a total of 355hours in 2013 (25 attendances).A2A principally uses two main channels for staff communication: the house organ “inadueà”and the intranet.Publication of “inadueà” continued in 2013. This periodical, which discusses the Group’sprojects, products and technical innovations, assessing the professional experience and workof the people who work in the various companies and local areas, is sent in hard-copy by postto all collaborators (an electronic version is also available on the Group’s intranet under thesection “Communication”) and has a circulation exceeding 10,000 copies.A new section “Welcome to a2a” is published on the intranet portal cww.a2a.eu which isdedicated to new employees with the aim of guiding them through the organization andallowing them to receive information and useful guidance to assist them in finding their waythrough the Group. New employees can find the following items in this section: informationon the main schemes of employment contract, a Group personnel chart showing the people incharge of each department and Group company, the A2A Group structure, a map with all ofthe Group's plants, the latest issues of the house organ “inadueà”, the sustainability reportand a great deal of other useful information.

Half-yearly financial report at June 30, 2013Social responsibility andstakeholder relationsIn the A2A Group’s business model sustainability is a strategic element for seeking to achievegrowth that is balanced from an economic, social and environmental standpoint.The A2A Group published the fifth edition of its Sustainability Report in 2013. From its verybeginnings in January 2008, the A2A Group has used this tool as a means of communicatingand consolidating the results and objectives it has set and achieved in the three areas ofsustainability: economic, environmental and social responsibility.The information provided has grown over the years in terms of completeness and qualityand following a gradual approach has taken the 2012 Sustainability Report to the highestapplication level (A+) of the Global Reporting Initiative international standard.233In particular, it is worth recalling that important results were achieved in 2012.First and foremost from an economic standpoint, with distributed net global value addedexceeding 1.2 billion euro and investments made in the Group’s sectors of 353 million euro. TheA2A Group also distributed value by making purchases which arrived at a total of 687 millioneuro, of which 97% involved Italian suppliers.Excellent results were also achieved at an environmental level, with 36% of energy beingproduced from renewable sources, 99.9% of the urban solid waste collected being recoveredthrough recycling or waste to energy enhancement and the development of urban districtheating networks (with an annual increase of 11% in the volume served in the municipalities ofMilan, Brescia, Bergamo and Varese and significant energy savings and emission reductions).Differentiated collection in Milan, where the A2A Group manages urban hygiene services, roseto reach the 39% mark. In particular, as the result of using more efficient energy technologies(waste to energy, cogeneration, hydroelectric), 1.4 million tonnes of CO2 were saved.The considerable improvement in the professional accident indices is also worth emphasizing;this was achieved as the result of prevention programs which enabled a reduction of 7.7% tobe obtained in the frequency of accidents at work.Finally, 2012 also saw the success of the initiatives carried out together with the Consumers’Associations for spreading a culture of correctness in trading practices, as well asconfirmation of participation in the Global Compact and its universally accepted principles inthe areas of human rights, labour, environment and anti-corruption.

Half-yearly financial report at June 30, 2013Social responsibility and stakeholder relationsThe A2A Group’s path of constant growth and its development model are also based onlistening to and dialoguing with all of its interlocutors, put into practice through a variety ofactivities and initiatives. By way of example is the “Sustainability. Listen to improve”involvement campaign carried out in November 2012, where employees, customers,suppliers, investors and representatives of the institutions and the public in general wereinvited to report the social, economic and environmental aspects in which the Group shouldbe more involved in the future by means of an online questionnaire. The following emergedfrom the priorities indicated: the production of energy and heat from renewable sources, thecreation of employment and jobs at a local level and the reduction of the CO2 arising from theGroup’s activities. A2A received a positive assessment for social, environmental and economicresponsibility, achieving an average score of 6.85 (on a scale of 1 to 10); heading the positiveevaluations were aspects relating to the environment and workers’ safety.234A charity operation was linked to the campaign under which the A2A Group contributed 1 eurofor each completed questionnaire to the Moglia community which is located in the Mantua areaand was struck by the 2012 earthquake; the money will be used for building a recreational andsocial area.The A2A Group’s social commitment was also confirmed in the preparation of the BusinessPlan announced in November 2012, which envisages investments of 1.2 billion euroconcentrated in sectors having the highest level of economic and environmentalsustainability: cogeneration and district heating networks, waste to energy processes andthermoelectric plant repowering.The following sets out a summary of the key facts that are a feature of the emphasis placed bythe A2A Group on sustainability in the first six months of 2013.• in May 2013 A2A was included in the ETHIBEL EXCELLENCE list, drawn up by Forum Ethibelon the basis of six criteria: human resources, environment, economic responsibility,corporate governance, involvement in the community, human rights. Inclusion means thatthe A2A Group achieved performance levels, in the sphere of Corporate SocialResponsibility, that were higher than the average for its sector.A2A is currently listed in 5 ethical indices:– CDLI (Carbon Disclosure Leadership Index)– ECPI Ethical Index EMU– Axia Sustainable Index– Solactive Climate Change Index– FTSE ECPI Italia SRI Benchmark Index;• with the publication of the first two issues for 2013 the distribution of “Lettera2azionisti”continued. “Lettera2azionisti” is the Group’s quarterly newsletter for small shareholders

Half-yearly financial report at June 30, 2013Social responsibility and stakeholder relationsand investors which enables them to get to know A2A’s figures, facts, industrial plans andeconomic and financial news “more closely”;• the work of the Joint Committee officially got under way as envisaged in the Self-RegulationProtocol signed on March 1, 2013 by A2A Energia S.p.A. and by the Consumers’ Associations.The task of this body, which consists of three members designated by the Consumers’Associations and three by A2A Energia S.p.A. (plus one substitute member), is to supervisecompliance with the rules set out in the Self-Regulation Protocol and to ensure that thecompany is following proper marketing procedures. The direction which has been taken forquite some time by A2A Energia S.p.A. to prevent unfair trading practices and protectcustomers therefore continues. In addition to the Joint Committee, the Self-RegulationProtocol also provides for the extension of the cooling off period to which the end customeris entitled, requires A2A Energia S.p.A. to send a confirmation letter to notify customers thata new supply contract has been activated and envisages specific training and possiblepenalties for the trading partners of A2A Energia S.p.A.. If conduct is identified which fails tocomply with the requirements of the Protocol, besides the requirement for compensation tobe paid directly to the end customer, a fund is established to be used to provide informationon unfair trading practices and to prevent these from occurring. If conduct is identified whichfails to comply with the requirements of the Protocol, in addition to compensation being paiddirectly to the end customer the Protocol also requires a fund to be set up to be used toprovide information on unfair trading practices and to prevent these from occurring;• A2A Energia S.p.A.’s new communication campaign began in April; this takes its initiativefrom the brilliant results triggered off by databank’s survey into domestic customersatisfaction levels. The aim of the initiative is to support A2A Energia S.p.A. in “serviceexcellence” and the development of the customer base in Lombardy;• on Monday June 24 the differentiated collection of wet waste began at domestichouseholds in the south-eastern area of Milan, corresponding to the whole of zone 4 andparts of zones 1, 3 and 5. Through this extension the collection of wet waste has nowreached 50% of the city area;• starting from February 2013 and continuing until March 2014, AMSA S.p.A. and Ecolamp (anot-for-profit consortium set up for the recovery and recycling of used sources of light)are providing a special recovery service for used lamps in Milan. This activity, of a testingnature, consists of a suitably equipped vehicle parked on the street at various strategicpoints of the city, schools and distribution sales points;• another project included in the Action Plan for the Reduction of Urban Waste (PARR) drawnup by the Region of Lombardy commenced, and was introduced in a testing phase in thearea of Brescia in conjunction with the Municipality of Brescia and Aprica S.p.A.. Thisregards the promotion of products whose packing has been changed in order to reducepackaging materials and limit their impact on the environment. This initiative is being235

Half-yearly financial report at June 30, 2013Social responsibility and stakeholder relations236carried out with the collaboration of Coop, Simply and Auchan, who have made their salespoints in Brescia and the city’s hinterland available;• the communication and awareness activities promoted by A2A Calore & Servizi S.r.l. fordeveloping the district heating service in the areas in which it operates continues with anew subject. Following “District heating: heat is increasingly blue”, the new campaignhinges on the message “District heating: we can finally breathe” and concentratespeople’s attention on sustainability and respect for the environment;• on January 31, 2013 A2A organized the convention “The role of district heating in asustainable energy future” at the Waste to Energy Auditorium in Brescia in conjunctionwith the ASM Foundation, the Municipality of Brescia and other bodies. In the autumn of1972, the Municipal Service Company of the Municipality of Brescia, now A2A, beganproviding district heating services in Brescia Due, a newly-built quarter on the outskirts ofthe city. A methane-fired thermal plant injected super-heated water into the distributionnetwork to which the new buildings were gradually connected. Today, forty years on,district heating is extended to practically the whole of the Brescia urban area and to anumber of neighboring communities, with the peculiarity that since 1978 the heatprovided to users is produced jointly with electricity in cogeneration plants, the mostrecent of which - the waste to energy plant - has since 1998 been using the urban solidwaste which cannot be usefully recycled and biomasses as fuel;• A2A is one of the 78 companies selected to form part of the Catalogue of Good Practices inLombardy, an online communications tool promoted by Unioncamere Lombardia. Thecompany was awarded the certificate for this in January at the convention organized bythe Lombardy Chambers of Commerce held at the offices of Unioncamere Lombardia; thismention highlights the extent to which the A2A Group has developed good socialresponsibility practices, in particular for projects relating to environmental sustainability,work quality and staff relations and for initiatives in favor of the community and local area;• a teachers’ guide was published, prepared by the A2A Group in conjunction with DeAgostini. The guide includes teaching materials and details on energy, water, the wastecycle and sustainability, all richly illustrated by pictures, maps and diagrams. The guide willbe distributed free of charge to the teachers of all the classes that visit the Group’s plantsas part of the A2A Schools Project;• with the final episode of the television program “Get to know energy”, the format createdby A2A carried out with the contribution of the ASM Foundation and the patronage of theEnvironment and Ecology and Public Education Councilors of the Municipality of Bresciaand broadcast by the local television channel Teletutto came to an end on May 5. The mainaim of this quiz between the schools of Brescia was to inform young people about theenvironmental and energy problems of our planet and to make them more aware of them,and to bring them closer to topics such as energy saving, waste and district heating.

Half-yearly financial report at June 30, 2013Environmental responsibilityThe Group’s Environmental Management System is based on the principles set out in theGroup’s Environmental Policy and sector Environmental Policies, and has the aim of promoting aprogressive and constant improvement in business performance in terms of effectiveness andefficiency in managing the environmental aspects connected with its activities. This system isadopted and implemented in a way that is integrated with the broader business managementsystem, which also governs the other strategic matters regarding sustainability including thoseconcerning quality and safety.237A proper implementation of the environmental management system is ensured by setting upvarious types of measures, such as the clear identification of principles, roles andresponsibilities; the identification of activities whose management requires particular care;the identification of areas where steps may be taken to seek improvement from anorganizational or structural standpoint; the establishment of action strategies; and the meansof working and operational control.Regular internal audits are planned and carried out in order to check the efficiency andeffectiveness of the Management Systems to be tested and their ability to ensure thatimprovement objectives are reached and that the adopted principles are being complied with. Theadequacy of the systems is confirmed by the successful outcome of audits performed byindependent third parties and is attested by the ISO 14001 certifications and the EMASregistration obtained by the Group’s leading companies.The A2A Group’s environmental management system meets all the UNI EN ISO 14001requirements and is officially recognized and adopted within the Group to the extent of thefollowing percentages:Plants:• 100% of installed hydroelectric power;• 100% of installed thermoelectric power;• 83% of the thermal power and 87% of the electric power of the cogeneration pool fromfossil/renewable sources;

Half-yearly financial report at June 30, 2013Environmental responsibility• 100% of the waste treatment capacity in the waste to energy plants;• 87% of the treatment capacity of the other plants of the integrated waste cycle.Networks:• 100% of the Milan area gas distribution network;• 100% of the electricity distribution networks;• 100% of the Brescia Municipality integrated water cycle (including the Verziano purifier);• 100% of the Milan and Brescia area district heating network;• 100% of public lighting and traffic lights.Services:• 100% of environmental services;• 71% of the waste water treatment capacity.The procedure for extending the Environmental Management System certification of VareseRisorse S.p.A. to all managed plants was completed in 2012.238The audit of phase 2 at Bellisolina S.r.l., an investee of the Ecodeco Group, was completedsuccessfully in the first half of 2013, with certification being awarded.In addition, during the audit performed at AMSA S.p.A. in April 2013, confirmation was givenfor the company to apply the environmental management system to all activities/processes,implementing the scope stated on the environmental certificate (all the activities included inthe bylaws of AMSA S.p.A. have been certified).Twelve plants obtained EMAS registration in 2012 and the process of obtaining EMASregistration for the whole of AMSA S.p.A.’s Silla 1 site and for Aprica S.p.A.’s site in ViaCodignole is currently in progress. It is expected that this will be completed by the end of 2013.Following the extension of the scope of Legislative Decree no. 231/01 to environmentaloffences, the parent company has undertaken a review and revision of the EnvironmentalManagement System to align it to the new requirements. The improvement proposalsadopted by the parent automatically extend to all Group companies. At the same time arevision of the way in which the activities connected with the risk that this type of offence maybe committed are managed internally has begun in the operating companies, and this iscurrently in progress. The alignment of the Environmental Management System with the 231Model is therefore at an advanced stage of consolidation in several of the Group’s companies.

Half-yearly financial report at June 30, 2013Innovation, development andresearchResearch and constant innovation are essential factors for pursuing the objectives which theA2A Group has set itself and which are laid out in its Charter of Values. These are activitieswhich thanks also to the collaboration of external organizations such as research institutionsand other bodies provide considerable value added to the Group’s development and growth.A2A is involved in a whole variety of projects and innovative activities which it carried forwardin the first half of 2013. A summarized overview of these is provided in the following.District heating development in Milan239The development of the district heating service continued with the extension of the networkand the connection of new customers, together with the introduction of measures torationalize heat production systems.In particular, in the Milan area a 50 MWt heat exchange station for fuelling the Rho and Perodistrict heating network was put into service close to the Silla 2 waste to energy plant (ownedby the subsidiary AMSA), while at the Famagosta plant the installation of three new natural gasintegration boilers having a total power of 36 MW was completed.The network rationalization program continued in parallel through the interconnection of thedistribution networks between the various production hubs. Work is currently in progress toconnect the Canavese and S.Giulia networks to the east and the Famagosta and Figinonetworks to the west in the future.Innovative trigeneration plant built by Varese risorseThe innovative heating-cooling plant with cogeneration, built by Varese Risorse S.p.A. (asubsidiary of A2A S.p.A. through ASPEM S.p.A.) at the new Varese Hospital, has enteredservice; Varese Risorse S.p.A. also owns the plant.The implementation of this project enables “trigeneration” (the combined generation ofelectric, heat and cooling energy), seen by many people as the new frontier of cogeneration,to be achieved. In this initial period of full use, significant savings of energy and reductions ingreenhouse gas (GHG) emissions have been made, arising among other things from the

Half-yearly financial report at June 30, 2013Innovation, development and researchincreased number of hours worked in cogeneration mode in the summer months by the 5MWe nominal power turbogas equipment located in the Via Rossi district heating plant.The total savings achieved in this way will count towards the issue of white certificates (EnergyEfficiency Allowances).A2A S.p.A. goes for electric mobilityA2A S.p.A. has for a long time been involved in an electric mobility project, known as e-moving,which it promotes in conjunction with Renault and the municipal administrations of Bresciaand Milan together with a number of private companies which have joined in the testing.A2A S.p.A. is the promoter and coordinator of the initiative and has built the infrastructure forelectric car recharging in the municipalities of Milan and Brescia, while Renault has provided47 vehicles from its zero emission range (saloon cars and small vans) which are equipped withthe latest generation lithium-ion batteries.240The two Lombardy municipalities have set out to become the reference cities for electricmobility in Italy, being the first, in conjunction with A2A, to begin developing an entire cuttingedgestructured electric recharging network: a total of 270 recharging points, of which 100public points in Milan and Brescia (roads, parking lots etc.). Private individuals owning theirown electric vehicle (car/scooter) can apply for a card allowing them to top up with electricityat the public columns by visiting the dedicated portal www.e-moving.it.The objective of e-moving is to test every component of the electric mobility operating model:the technology and the locating of the recharging infrastructure, the processes andcommercial solutions, the interaction between the recharging network and the vehicles, thesupply of energy, the billing systems, battery management and car maintenance.The e-moving project has today turned out to be the most complete and advanced platformwithin the sphere of the testing being promoted by the AEEG (the Electricity and GasAuthority) to identify the model to be used for developing public recharging systems. Testingwith the AEEG will continue until 2015, with the data and experiences of this first phase, whichhas been in progress for more than two years now, being shared on a half-yearly basis. In thelast half year two separate discussion tables were set up with ENEL and Repower to make theinter-operability of the public recharging infrastructure and the recharging cards usable byend customers effective, as the AEEG requires of electric vehicle public recharging systems.Reduction of nitrogen oxides at the Brescia waste to energy plantFollowing the start of the industrial use of the new high-dust catalyzers on all threecombustion lines at the end of 2010 (an initiative included in a European research project

Half-yearly financial report at June 30, 2013Innovation, development and researchentitled NextGenBioWaste – Innovative Demonstration for the Next Generation of Biomassand Waste combustion plants for energy recovery and renewable electricity production),testing began in June 2011 and continued in 2012 and the first half of 2013 on optimizing theselective non-catalytic reduction (SNCR) system with which the plant has been equippedsince it entered service. An air nozzle has been installed on line 3 to inject ammonia solutioninto the combustion chamber for checking the possibility of replacing the present waterinjection system to obtain better nebulization and hence a more effective reaction of theammonia for reducing nitrogen oxides (NOx). An air nozzle model was tested in 2012 withresults that were not fully positive and more detailed tests are therefore currently taking placeto investigate other solutions.Main electricty distribution innovation projectsA2A Reti Elettriche Sp.A. has in progress a series of projects aimed at developing thedistribution network:• INTEGRIS projectThis is a project co-financed by the European Commission as part of the SeventhFramework Programme. INTEGRIS is concerned with ICT issues, in particular those of atelecommunications nature, and automation issues closer to the world of electricitydistribution for the building of “hybrid” infrastructure capable of enabling variouscommunication technologies (broadband power lines on low-voltage and mediumvoltagenetworks, wi-fi, optic fiber) to interact effectively. The project has additionallytested the application of innovative functionalities that are fundamental for the electricitygrid, such as:a) the installation of new wireless sensors for second cabin monitoring and sensors formonitoring the quality of the voltage on the low-voltage network;b) new evolved electronic meters through which enables not only the commercialaspects to be managed but also the technical parameters of the most peripheral partsof the grid to be monitored;c) the decentralization of grid management functions, addressing in particular the lowvoltagegrid, which given the development of widespread generation from renewablesources is gradually assuming an increasingly important role in the distributionframework.Of particular importance is the Demonstrator built by A2A Reti Elettriche S.p.A. in Italy onthe Brescia distribution grid, including a SCADA system based on IEC 61850 and a NetworkManagement System which monitors the status of the efficiency of the ICT infrastructure,as well as the installations in the field which include fifteen or so secondary cabins, variouslow-tension lines and several dozen users/producers (photovoltaic) equipped withelectronic meters.241

Half-yearly financial report at June 30, 2013Innovation, development and research242• Smart Grid projectA2A has Smart Grid projects in progress approved by the AEEG as part of Resolution no.ARG/elt 39/10.These projects, one for a primary cabin in Milan (Lambrate) and the other for a primarycabin in Brescia (Gavardo), with different underlying grid features, have been set up inorder to improve voltage regulation by regulating the reactive energy produced byDispersed Generation (GD); to implement innovative automation in the management ofthe medium-voltage grid by improving the selectivity of the protection system; and toactivate and test information exchange functionalities between the distribution networkand the transmission network for an optimal management of the GD (distributed dispatch- Virtual Power Plant, etc.).• Smart DomoGrid projectSmartDomoGrid is a research project co-financed by the Ministry for EconomicDevelopment and arises out of the joint effort of A2A S.p.A., the Energy Department of theMilan Polytechnic and Whirlpool S.p.A.. The aim of this project is to improve the quality ofthe service by introducing innovative technologies and functionalities:– Demand Response schemes for reducing grid overloading and increasing servicecontinuity without having to resort to the use of structural intervention;– the installation of power electronic systems distributed across the grid and located atthe user to improve the quality of the voltage.In particular, Demand Response functionalities envisage that the tariff charged to the usershould vary more frequently than at present (variations on an hourly basis). The customerwill be equipped with a Domestic Energy Management System (DEMS), which on the basisof the tariff, total usage at his residence, the back-up load status and local production willplan the working cycles of certain controllable household appliances such as washingmachines and dishwashers.• EccoFlow European projectEccoFlow is a research project co-financed by the European Commission as part of theSeventh Framework Programme which consists of the design, installation and testing ofSuperconducting Fault Current Limiters (SFCLs) for application in medium-voltagedistribution grids, having the aim of limiting the fault currents which arise in electricitysystems as the result of breakdowns or damage by third parties in order to reduce thedemand on the components, avoid any further damage and improve the technical qualityof the service.In parallel with this project A2A has already installed a 250 A SFLC device on a 9kV mediumvoltageline at its San Dionigi plant.It is recalled that the COMOS project for the inertization of fly ash set up by the University ofBrescia and the project for soundproofing compressors used in the city of Milan to collectglass and paper were brought to a successful conclusion during the previous year.

Certification of thecondensed half-yearlyfinancial statementspursuant to article154-bis paragraph 5of Legislative Decreeno. 58/98

Half-yearly financial report at June 30, 2013Certification of the condensedhalf-yearly financial statementspursuant to article 154-bis,paragraph 5 of Legislative Decreeno. 58/981. The undersigned Graziano Tarantini, in the name of and on behalf of the entire ManagementBoard of A2A S.p.A. and Stefano Micheli, the manager in charge of preparing the corporateaccounting documents of A2A S.p.A., certify the following, taking into account the provisionsof article 154-bis, paragraphs 3 and 4 of Legislative Decree no. 58 of February 24, 1998:• the adequacy in relation to the characteristics of the business and• the effective application244of the administrative and accounting procedures for the preparation of the condensedhalf-yearly financial statements during the first half of 2013.2. We also certify that:2.1 the condensed half-yearly financial statements:a) have been approved in accordance with the international accounting standardsapproved by the European Community pursuant to Regulation (EC) no. 1606/2002 ofthe European Parliament and of the Council of July 19, 2002;b) agree with the balances on the books of account and the accounting entries;c) give a true and fair view of the assets and liabilities, results and financial position of theissuer and the set of companies included in the consolidation;2.2 the interim report on operations includes a reliable analysis of the key events that tookplace during the first six months of the year and their effect on the condensed half-yearlyfinancial statements, together with a description of the main risks and uncertainties forthe remaining six months of the year. The interim report on operations also includes areliable analysis of the information on significant related party transactions.Milan, July 31, 2013Graziano Tarantini(on behalf of the Management Board)Stefano Micheli(Manager in charge ofpreparing the corporateaccounting documents)

IndipendentAuditor’s report

Half-yearly financial report at June 30, 2013IndipendentAuditor’s report246

Half-yearly financial report at June 30, 2013Indipendent Auditor’s report247

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