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

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.