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

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.