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

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