2006 Results and 2007-2011 Strategic Guidelines

Investor Presentation

Milan, 5 April 2007 2 SUMMARY

1. IRIDE AT A GLANCE 3 . STRATEGIC GUIDELINES & TARGETS ƒ IRIDE Group Structure ƒ Strategy report ƒ Shareholders ƒ 2011 targets ƒ 2001-2006 growth ƒ Business breakdown ƒ Assets and market positioning 4. DEVELOPMENT PLAN ƒ 2007-2011 Investment Plan ƒ Generation of electricity and heat 2. 2006 RESULTS ƒ Energy Networks ƒ 2006 Main figures ƒ Markets ƒ EBITDA (step analysis) ƒ Water services ƒ Business analysis ƒ Synergies ƒ Financial structure ƒ 2006-2011 EBITDA growth

5. Q & A I ride at a glance 4 IRIDE GROUP STRUCTURE

30% 51% 8% 11%

ENERGIA 50% ENERGIA ITALIANA ITALIANA

100% 100% 100% 100%

100% 100% 100% 68.32%60.0%* 33.60% 100% 85% 14.39%* 43.99% 55.95%* GEA Commerciale Proportionally consolidated GEA 15% * Through Consorzio 3A Other subsidiaries 20% 40% 66.55%49.00% and investments AM.TER Equity consolidated Equity consolidated 40% Other subsidiaries Other subsidiaries and investments. such as ATENA Group and investments (Vercelli). ASA (Livorno). ASMT Servizi 22.7% Industriali (Tortona). AMAT (Imperia) e ACOS OLT (Novi Ligure) Offshore LNG

Other subsidiaries and investments 5 SHAREHOLDERS

Shareholder structure (fully diluted after total Municipality of Municipality od warrants exercise) Turin Genoa

Each of the Municipalities holds a 50% stake in the 50% 50% financial holding company. which has a 51% fully- 11.36% FSU diluted stake in the listed company IRIDE. Free Float Saving shares 51.07% and other Warrants still to be exercised are 14.2 millions (94.500.000) shareholders corresponding to 7.1 millions of ordinary shares, correspond to 0,86% of current share capital and 37.57% are included in the “Free float and other shareholders”

Voting Shareholders OTHER SHAREHOLDERS (% on ordinary share capital) 30,2%

The remaining 11.4% stake held directly by the AMBER CAPITAL FINANZIARIA Municipality of Turin in the new listed Group has 2,7% SVILUPPO UTILITIES (FSU) been converted from ordinary to saving shares 58,2% FONDAZIONE without voting rights and with same financial CASSA DI RISPARMIO DI rights of ordinary shares. TORINO 4,1% INTESA SANPAOLO 4,8% 6 2001 – 2006 GROWTH

Cagr +17% 300 301 EBITDA grew from 137 to 301 € Mln 221 207 EBITDA more than doubled from 2001 to 2006 thanks to a 187 137 significant investment plan made of internally developed projects (57%) and acquisitions (43%) both in generation and regulated business.

2001(*) 2002(*) 2003(*) 2004 2005 2006

19% of Net Capital Employed related to ongoing projects 3000 2500 The contribution of past investments in terms of economic 2000 margins has not been fully reflected in 2006 earnings: 1500 – Pont Ventoux-Susa plant, with a production of 123 GWh, 1000 in 2006 is at 30% of its capacity Net operating capital employed – The new 390 MW CCGT (Moncalieri 3rd unit) and Pont 500 Non operating capital employed Ventoux-Susa have not contributed to EBITDA for the 0 green certificates component which accounts for € 55 2001(*) 2002(*) 2003(*) 2004 2005 2006 mln in terms of EBITDA

* Italian GAAP 7 BUSINESS BREAKDOWN

OtherGas sales Water Services 1% 5% Electricity sales 17% Ebitda Breakdown 11%

Heat management Business contribution to 2006 EBITDA is the following: 2% District Heating Market: 18% 7% (gas and electricity sales and heat manag*) Generation and heat Generation and heat sales*: 24% Gas distribution sales 13% 24% Networks: 40% (gas and el. distribution and DH*)

Water services: 17% Electricity Distribution Electricity Others: 1% 19% Transmission 1%

Low risk profile

The contribution of regulated business is 57% on total Non regulated EBITDA leaving room for further development of non 43%

regulated business (upstream gas and electricity). Regulated 57%

(*) As from July 2007 tied electricity clients and heat clients will be conferred to market 8 ASSET AND MARKET POSITIONING

Hydro-electric Thermo-electric Asset Positioning capacity MWe capacity MWe

Pont Ventoux 150,0 GT2 141 With 495 MWe of Hydro and 608 MWe of Co- Valle Orco 295,4 GT3 383 Valle Susa 27,4 Generating Plants is well positioned in the generation Total Moncalieri 524 Fiume Po 11,9 of electricity from renewable sources. Brugneto 10,2 Mirafiori 22 Total Hydro 495 Le Vallette 31,6 IRIDE is also the owner of its networks (gas, Sanpierdarena 30 electricity, district heating and water). Hydro 495 Total Other 83,6 Thermo 608 Total Thermo 608 Total 1103

Market Positioning

IRIDE is well-positioned in North-Western and Tyrrhenian Areas of Italy with the opportunity to exploit further value from the local presence.

IRIDE has the industrial control of most small local utilities of North West with the possibility to create further synergies in energy and water services. IRIDE 2 006 Results 10 2006 MAIN FIGURES

Industrial Growth compensated by negative climate conditions and one off items

The increase of Hydro and Thermo Generation and Water Cycle has been compensated by unfavorable weather conditions in 4Q’06, by one-off items related to the merger that took place in 2006 and by positive items reported in FY05 (Plurigas and AEM Torino Distribuzione).

Net of positive items of 2005, EBITDA would have grown by 5%.

Climate conditions had a negative impact on Hydro Generation with a reduction of 100 GWh (lack of rainfall) and on gas distribution with a reduction of 60 MMC (-7%). The adverse climate conditions had a negative effect of about 15 €Mln on IRIDE economics.

In ‘06 5 €Mln of merger costs were reported (AEM / Amga and Ge Acque / Adfg).

20062006 20052005 (1)(1) ∆∆ %% EbitdaEbitda

350 RevenuesRevenues 2,5072,507 1,8161,816 38.0%38.0% 300 16 2 5%. EbitdaEbitda 301301 300300 0.4%0.4% 250 200 299 EbitEbit 179179 192192 (7.4)%(7.4)% 150 284 100 NetNet ProfitProfit 8383 9595 (12.6%)(12.6%) 50 0 NetNet DebtDebt 1,1051,105 1,0061,006 9.9%9.9% 2005 2006

(1) Pro-Forma and Restated 11 EBITDA BREAKDOWN

(1) Industrial Growth compensated by negative 20062006 20052005 (1) ∆∆ %% climate conditions and one off items GenerationGeneration 7171 6363 12.4%12.4% Generation, limited growth due to lack of rainfall Green MarketMarket 5656 6868 (17.8%)(17.8%) Certificates (PV & GT3) to be reported. En.En. NetworksNetworks 120120 130130 (8.5)%(8.5)% Market affected by 2005 one-off items (Plurigas).

Networks affected by warm winter (Gas / District WaterWater CycleCycle 5252 3535 47.5%47.5% Heating). ServicesServices 22 22 ~~ Water Cycle, strong growth thanks to the consolidation in ATO Genoa. EBITDAEBITDA 301301 300300 0.4%0.4%

Ebitda Step Analysis

(12) 17 0 301 300 8 (10)

EBITDA 2005 Market Generation and Energy Water services Services, TLC EBITDA 2006 heat sales networks and Others

(1) Pro-Forma and Restated 12 2006 GENERATION AND HEAT SALES

Limited growth by lack of rainfall Green Certificates haven’t been reported 20062006 20052005 (1)(1) ∆∆ %% Internal production reached 4,033 Gwhe (+14.9%) thanks to GT3, to Edipower and the start up of Pont Ventoux. RevenuesRevenues 411411 338338 21.4%21.4%

Lack of rainfall caused a loss of production of 100 GWh with EbitdaEbitda 7171 6363 12.4%12.4% an impact of about 7 €Mln on the economics. EbitEbit 4646 3131 47.2%47.2% Co-generation suffered also the increase of heat distribution costs CapexCapex 5757 9191

GWheGWhe 4,0334,033 3,5113,511 14.9%14.9%

+ 10% + 16% Key Drivers 2007-2011 1.000 3500 917 3.192 900 763 841 3000 800 2.748 700 2500 Financial Reports will benefit from 56 €Mln in Green 600 2000 Certificates from Pont Ventoux and GT3. 500 400 1.159 1500 Repowering of GT2, which began in 2006 with the 300 1000 200 decommissioning of the actual plant, will end in 2008. 100 500 0 0 Torino Nord, with a CCGT of 400 MW of installed GWh 2004 2005 2006 2004 2005 2006 capacity and a district heating of 140 Km in length, will allow the Group to provide 15 MMC of new volumes by Hydro Pont Ventoux & Villa Thermo 2011, 55% of Turin. Own production excluding Edipower and Tirreno Power

(1) Pro-Forma and Restated 13 2006 MARKET

Market affected by One-Off items (Plurigas) and 20062006 20052005 (1)(1) ∆∆ %% by application of 134/06 since 2H06 RevenuesRevenues 1,9251,925 1,1961,196 60.9%60.9% Gas: Positive One-Off items reported in FY05 with an Ebitda 5656 6868 (17.8%)(17.8%) impact of 7 €Mln (Plurigas). Net of this the increase of Ebitda Gas & H Mgmt. 23 31 volumes to local brands has been compensated by (i) the Gas & H Mgmt. 23 31 33 3737 use of strategic stocks in 1Q06 and related shortage of gas ElectricityElectricity 33 for trading and by (ii) application of 134/06 since 2H06. EbitEbit 4343 6262 (30.4%)(30.4%) Electricity: increase in volumes and margins on Eligible CapexCapex 11 00 Market and IPEX more than compensated by the reduction MMCMMC gasgas soldsold 1,272 1,1581,158 9.8% of the selling contract with “Generation Segment and the 1,272 9.8% lower marginality of CfDs with AU. GWheGWhe soldsold 11,41011,410 9,6139,613 18.7%18.7%

Key Drivers 2007-2011 MARKET Gas El. MMC GWh IRIDE "Retail" 400 2.000 IRIDE "Non Retail" 1.015 11.400 Gas: up to 2 Bln of gas at competitive prices will be available from OLT LNG by Area Piemonte Atena Trading 70 125 2009, 62 Mln of further gas will be at disposal by new capacity on TAG, Alegas 80 MEDGAS project, with 4 Bln in additional gas, has not been included in the BP. Acos Energia 50 Asmt 25 Area Toscana Electricity: 770 MW of new generation capacity available from GT2, Torino Nord Gesam 130 and full operation of Pont Ventoux-Susa. Asa Trade 100 Gea Commerciale 60 Vea Energia 15 Market Strategy will exploit customer base of IRIDE with a dual fuel offer to Altro Retail and SB Clients in a free mkt framework and M/L term Energy Services Adriatica En. e Servizi 55 175 MARKET (ACTUAL) 2.000 13.700 Contracts to Public segment. Potential 1.500 2.000 MARKET 3.500 15.700

(1) Pro-Forma and Restated 14 2006 ENERGY NETWORKS

20062006 20052005 (1)(1) ∆∆ %% Adverse Climate Conditions and One-Off Items (AEM Torino Distribuzione) RevenuesRevenues 423423 400400 5.7%5.7% Gas affected by a reduction of gas volumes distributed (-7%). EbitdaEbitda 120120 130130 (8.5%)(8.5%) District heating benefited from the new heating connections GasGas && DHDH 5959 6464 of “Torino Centro”. ElectricityElectricity 6161 6666

Electricity affected by 6 €Mln of positive one-off items (FY05), EbitEbit 6464 8383 (23.8%)(23.8%) Net of this, slight increase in Ebitda due to the increase in CapexCapex 7474 7474 volumes. MMCMMC GasGas 791791 851851 (7.1%)(7.1%) Operating Profit impacted by the increase in the planned GWhGWh 35393539 33923392 4.3%4.3% mechanics meters depreciation.

Key Drivers 2007-2011 +4.3% +2.2%

4.000 3.539 1.4181.450 1.600 3.392 -7.1% 3.500 1.400 Gas: regulation allows tariff increase to restore adverse 3.000 1.200 climate conditions and target Revenue Cap. 2.500 851 791 1.000 Heat: Development of “Torino Centro” and “Torino Nord” 2.000 800 district heating will increase revenues and margins. 1.500 600 1.000 400 Electricity: Electric Meters Plan to improve efficiency and 500 200 credit control. 0 0 GWhCm bln Thermal GWh Reorganization could lead to the sale of AEM TE. 2005 2006 2005 2006 2005 2006

(1) Pro-Forma and Restated Electricity distribuited Gas distribuited Heat distrib 15 2006 WATER CYCLE

Strong Consolidation of ATO Genoa (1) 20062006 20052005 (1) ∆∆ %%

RevenuesRevenues 161161 121121 33.5%33.5% The segment benefited from consolidation of ADFG Group for 9 month and SAP Group for 3 month. The external EbitdaEbitda 5252 3535 47.5%47.5% growth was EBIT positive after the first year and with a EbitEbit 2525 2121 20.3%20.3% further tariff increase still to be exploited. 24 Increase in profitability and margins despite a CapexCapex 3030 24 reorganization contest. MMCMMC waterwater soldsold 122122 9494 29.3%29.3%

Key Drivers 2007-2011 +24% 140 122 120 98 Full execution of First 5 year of ATO Genovese Capex Plan 2004- 100 46 2008 (84 €Mln, 70% implemented at ’06). 80 Migration to ATOs for the Concessions in charge of Acque Potabili 60 and focus on North West. Development opportunities in Sicily to be 40 achieved (Palermo ATO). 20 0 Provide technological & project management services to ATOs 2004 2005 2006 managed by IRIDE Water sold Regulation Framework could trigger IRIDE expansion on new ATOs.

(1) Pro-Forma and Restated 16 2006 SERVICES AND OTHER

Flat contribution with a positive impact on Operating profit 20062006 20052005 (1)(1) ∆∆ %%

The segment includes services to public clients, and non- RevenuesRevenues 110110 146146 (24.9%)(24.9%) core activities such as telecommunications provide by 2 Sasternet and AEMNet. EbitdaEbitda 22 2 ˜˜

The segment, flat in terms of Ebitda contribution, despite EbitEbit 00 (6)(6) the deconsolidation of ATENA and ASMT, benefited from Capex 5 99 fewer provisions. Capex 5

Key Drivers 2007-2011

Public customer base of IRIDE to be exploited providing facility services.

Reorganisation will lead to the sale of some affiliated companies (AGAM).

(1) Pro-Forma and Restated 17 2006 FINANCE

Moderate increase of Net Debt mainly due to 1.400 128 Capex Plan 1.200 129 1.000 The increase in Net Debt is mainly due to capex plan 800 600 1.219 implementation. The increase in working capital is mainly 1.096 1.006 1.105 400 due to the reorganisation the reorganization of the 200 commercial company of the Group and by the merger in 0 the water segment. 2005 2006

The Net Debt / Equity ratio is in line with competitors. Net Group equity Minorities NFP Debt / Ebitda still has to report the full contribution of Green Certificates on current assets (PV and GT3).

Increasing pay-out in line with competitors 63% 60 49 37% 38% 37% 37% 50 50 30% Dividend per share increases from € 0.03345 to € 40 30 0.06 (+79%). 26 27 10 30 24 18 20 17 -1

10 -3

0 -5 2001 2002 2003 2004 2005 2006 Dividends (€ mln) Pay-out

(1) Pro-Forma and Restated S trategic guidelines and targets 19 2007 – 2011 STRATEGY REPORT

Energy: improve up-stream to cope with market competition

ƒ Electricity: improve generation capacity with hydro and co-generation sources with profitability boosted by green certificates (Hydro: Pont Ventoux and Repowering of Orco Valley plants / Co-generation: Moncalieri 3rd unit - that will give full effects as from 2008 – Torino Nord will benefit from white certificates) and by higher spark spreads (85% efficiency of co-generating unit vs 56% of newcomer). After 2011 the Group will have 15.7 TWh of electricity, of which 10.6 TWh from internal sources (almost 2x current internal production).

ƒ Gas: improve own gas sources to cope with the increasing Group gas requirements both in thermo co-generation and in the gas free market. In 2011 the Group will need 3.5 Bln of gas whose 2.5 Bln will be covered with internal sources (5x of current availability).

Electricity Sources (TWh) 15.7 Market: exploit potential of IRIDE customer base 13.7 5 in a more competitive market framework Ex ter nal sources 7,2 ƒ Exploit IRIDE customer base in a more competitive 2,7 Edipow er market framework targeting Retail and SB Clients 6.5 Termo 2,5 6,9 also with a dual fuel offer.

Idr o 3,2 0,8 1,1 ƒ Develop its customer base through integration of 2006A 2011E 3.5 4 local brands (full control or minority stakes with governance to control strategy). Gas Sources (Bln cm) 2.0 1,0 ƒ Provide to local commercial brands and direct 1,4 2,5 2,5 clients energy commodities and multi-year services 0,6 to retain clients. 2006A 2011E Internal External Medgas LNG Terminal 20 2007 – 2011 STRATEGY REPORT

Over 10 Twh of electricity from own plants Electricity uses (TWh) (*) 14.7 thanks to a further 770 MW of gross capacity 13.0 4,6 ƒ Investment plan in new and repowered plants will give 770 MW of 3,1 additional capacity, of which:

– Pont Ventoux Susa 150 MW full operating as from 2007 7,9 8,0 – Repowering of Moncalieri 2nd Unit (+250 MW) 2H 2008 2,0 2,2 – New Plant “Torino Nord” (+400 MW) as from 2010 2006A 2011E – Decommissioning of some minor plants: Chiomonte, Susa. Captive Free customers IPEX Mirafiori ad Le Vallette plants (-80 MW)

– Edipower Repowering Plan (50 MW) (+) Net of losses

2.5 Bln of gas thanks to OLT and Plurigas will be Gas uses (Bln cm) available

3.5 ƒ Investment plan concerns OLT (Medgas has to complete authorization process).

2.0 1,8 ƒ OLT fully operating as from 2H 2009. IRIDE requested the exemption from TPA in order to maximize the operation of 1,0 the asset. 1,7 1,0 ƒ Gas provided by Sea Power and Fuel (Off-taker company - JV at 50% with Endesa) 2006A 2011E Thermo plants Sales ƒ Financial capex limited for presence of financial partners that have 49% of OLT without rights on gas 21 2007 – 2011 STRATEGY REPORT

Water Cycle: consolidate ATO Genovese and North West position

ƒ Consolidate ATO Genovese with a new capex plan for the next 20 years. All Group Companies are already “protected” for the same period.

ƒ Deliver efficiency in operation through local water utilities

ƒ Deliver technological services and capex-related services through the “Management Company” to enhance remuneration

Strengthen alliances to exploit customer base leadership in North West

ƒ Consolidate the position in ATO Alessandrino and in West Liguria (ATO Savonese and Imperiese) where the Group has the industrial control of leading local water companies.

ƒ Provide technology and project management services to ATO’s exploiting

Ato Consolidated ƒ Strengthen alliance with SMAT in SAP. Together with SMAT, IRIDE

Ato Affiliated provides water services to 5 Million inhabitants

Area of Interest 22 2011 TARGETS

Scenario HypothesisHypothesis 20062006 20112011

In a conservative scenario IRIDE’s targets for 2011, in relation to the BrentBrent ($/bbl)($/bbl) 65.465.4 5555 Capex Plan, are the following: ExchangeExchange ($/€)($/€) 1.251.25 1.31.3 Targets 2011 Targets 2011 GreenGreen CertificateCertificate (€/MWh)(€/MWh) 125125 9999 EBITDA @ 520 €Mln (~12% Cagr) EBITDA @ 520 €Mln (~12% Cagr) ElectricityElectricity PricePrice (€/MWh)(€/MWh) 74.774.7 6464 NetNet Debt Debt @ @ 1.35 1.35 €Bln €Bln (2.6 (2.6 x xEbitda) Ebitda)

EBITDA TARGET

219

520

301

EBITDA 2006 Grow th EBITDA 2011 D evelopment plan 24 2007 – 2011 INVESTMENT PLAN

1.3 €Bln of Capex in 2007 - 2011 350 300 270 ƒ IRIDE plans to invest 1.30 €Bln between ’07-’11 260 222 ƒ Main investments relate to: nd – Repowering from 140 to 390 MW of Moncalieri 2 Unit 120 – New 400MW co-generating CCGT in Torino Nord – District heating expansion in Torino Nord (adding further 15 mln cm) – LNG OLT off-shore in Livorno (3.75 mln mc) – Repowering of hydroelectric plants in Orco Valley 2006A 2007E 2008E 2009E 2010E 2011E – Capex Plan ATO Genovese

Financial 60% of capex relates to development capex 5% ƒ IRIDE investment plan is mainly focused on

Power development of generation capacity, district heating generation and importing of gas Other capex 39% 33% ƒ Maintenance capex relates to energy networks and water services. The return is assured by regulation system.

Electronic Counters LNG District 3% 10% heating 10% 25 MONCALIERI 2nd UNIT REPOWERING

Moncalieri will have 800 MW as from 2008

ƒ The Moncalieri plant currently has 530 MW of electrical installed capacity through 2 co-generation units: the 2nd Unit (141 MW) and the new 3rd Unit (390 MW).

ƒ The Moncalieri plant supplies heat to the entire district heating network of “Torino Sud”, which, as from October 2006, has been expanded by the new “Torino Centro” DH network

ƒ The Moncalieri 2nd Unit is being repowered after the awarding of the works.

High efficiency with dispatching priority

KEY PROJECT DATA KEY PROJECT DATA ƒ The conversion of the unit into a CCGT will increase Capex:Capex: € € 150 150 mln mln installed capacity from 141 to 390 MW, and production will continue not to be subject to the requirement of buying ElectricalElectrical installed installed capac capacityity increases increases fromfrom 141141 green certificates toto 390 390 Start of operation 2nd ƒ The entire production of the Moncalieri Plant has Start of operation 2nd halfhalf 2008 2008 dispatching priority as electricity is entirely co-generated ExpectedExpected electricity electricity production: production: 2,300 2,300 GWh/y GWh/y

ExpectedExpected thermal thermal production: production: 600 600 GWh/y GWh/y 26 TORINO NORD PROJECT: 400 MW CCGT WITH DH NETWORK

Expansion of district heating in Northern Turin: Additional 15 mln cm CM connected 1994-2011 60 54 ƒ IRIDE will expand district heating in Northern Turin + 50% 50 reaching about more that 50% of Turin’s inhabitants 40 36 by 2011. 30 ƒ The “Torino Nord” network will be linked to the 20 “Torino Sud & Centro” network and will heat 18 mln 10 cm (of which 3 mln are already served by Le Vallette 0 Network) reaching 53 mln cm of volumes heated. 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

New co-generation CCGT and 4 integration and back-up boilers KEY PROJECT DATA KEY PROJECT DATA ƒ The DH network will be fed by a new co-generating CCGT plant (400MW) and 4 integration and back up boilers (85 MW Electrical installed capacity: ~400 MW Electrical installed capacity: ~400 MW each) Thermal installed capacity: 220 MW Thermal installed capacity: 220 MW ƒ The project will increase the efficiency and reliability of the DH Expected electricity production: 2,260 GWh/y network and confirms the leadership of IRIDE in co-generation Expected electricity production: 2,260 GWh/y combined with DH Expected thermal production: 800 GWh/y Expected thermal production: 800 GWh/y ƒ Works will be awarded this year 27 REPOWERING OF ORCO VALLEY PLANTS & OTHERS

Orco Valley Repowering

ƒ Capex: 80 € mln (2007-2011)

ƒ Valle Orco hydro plants are being repowered (as regards installed capacity and output generated) during the period 2005 – 2010.

ƒ Repowering capex will benefit from green certificates revenues (220 GWh)

Other investments and Research

ƒ IRIDE is participating in the development of district heating in Cuneo, currently supplying technical design

ƒ IRIDE is also involved in research in the generation field, such as trigeneration and heat-cooling systems 28 ENERGY NETWORKS

Electricity Network

ƒ Electricity distribution: IRIDE, through its subsidiary AEM Torino Distribuzione, is installing electronic meters for every customer linked to the electricity grid. The investment will provide IRIDE with greater efficiency, service quality and credit control.

ƒ The investment will be completed during the period 2007-2011 with a total amount of 40 €Mln.

VENARIA Gas and District Heating

TORINO NORD PLANT Expansion of DH ƒ Gas Networks are involved in a maintenance plan in order to increase under “TORINO security through replacement of the iron-grey network and a focused NORD” project extension that will give the opportunity to exploit local markets.

ƒ District Heating (provided by the JV AES) will be involved in a challenging development plan to complete “Torino Centro” and to start “Torino Nord”. The Torino Nord distribution network will have a length of 140 KM plus 15 TORINO CENTRO KM of transport network. GRUGLIASCO 29 OLT PROJECT: 1.5 BLN CM OF NEW GAS AVAILABILITY

OLT (Offshore LNG regasification Terminal) Develop upstream to enhance market position ƒ The project has received the final authorisation decree by the Ministry of Industry on February 2006.

ƒ Endesa and IRIDE are the industrials partners of the project with equal stakes and governance.

ƒ The terminal is authorised to handle 3.75 Bln cm per year. IRIDE Mercato and Endesa operate as offtakers of the full capacity, TPA has been asked to AEEG in order to maximize logistics, In case of exemption 1.875 Bln cm per year will be available.

Limited investment for at least 1.5 Bln cm of imported gas KEYKEY PROJECT PROJECT DATA DATA ƒ IRIDE operates both as offtaker, with the right to take 50% of IRIDEIRIDE Stake Stake : :51% 51% of of the the asset asset company company in in JV JV with with regasification output, and as asset manager of OLT, with an EndesaEndesa Europa Europa regulated return of 10.60% (pre-tax). AuthorizedAuthorized Capacity:Capacity: 3.753.75 BlnBln CM.CM. 50%50% underunder ƒ Gas Import is assured by Endesa LNG contracts from IRIDEIRIDE Mediterranean suppliers. LowLow environmentalenvironmental impact:impact: 1212 milesmiles fromfrom thethe ƒ The linking pipeline form part of the national grid. Reduction capex coast.coast. TheThe offshoreoffshore vesselvessel isis suppliedsupplied byby GolarGolar could be achieved if becomes part of Incumbent / Third Party capex (Norway).(Norway). which which holds holds a a 20% 20% stake stake in in OLT OLT 30 WATER SERVICES

Consolidation of ATO Genovese

ƒ IRIDE Acqua e Gas has submitted to AATO the 20 year Capex Plan to continue the current 5Y Business Plan (04- 08). Mediterranea has been “protected” up to ‘25.

ƒ The return on the invested capital is 7% (real pre-tax) with the opportunity to enhance remuneration providing technological and project management services.

ƒ Collection systems will be connected to prevent drought events. Sewerage system and treatment plants will be improved to improve quality output waters Acque Potabili: the first target bought by the MARKET Inhabitants alliance with SMAT ATO Genovese IAG 878.082

Affiliated Co's "Area Nord Ovest" Abitanti ATO Alessandrino Acos / Asmt / 418.231 ƒ IRIDE is working with SMAT (controlled by the Municipality of Turin) to recover ATO Astigiano-Monf 208.339 Sub Astigiano Asp 71.276 Acque Potabili, Acque Potabili operates in 108 Concessions regulated by CIPE, ATO Vercellese Atena 45.132 ATO Cuneese Mondoacque 556.330 The mission of the Group is to migrate to ATO Regulation or, where not ATO Savonese 310.389 Sub Costiero-Levante Acq. di Savona 128.271 possible, to rationalize its presence throughout Italy. ATO Imperiese Amat / Aiga / Sap 205.238 Total 1.424.478 ƒ Acque Potabili bid for the Concession of Palermo in Sept 06. In Dec 07 the Affiliated Co's "Area Toscana" ATO Alto Valdarno Nuove Acque 296.000 AATO awarded the Concession to Acque Potabili. ATO Toscana Costa Asa 326.000 Total 622.000 ƒ IRIDE is in a good position in all the North West ATO’s, aiming to consolidate its Total Inhabitants served 2.924.560 position in the Provinces of Alessandria, Savona and Imperia Allliance ATO Torinese SMAT 2.165.619

Total Inhabitants served with alliances 5.090.179 31 SYNERGIES

Non-Energy Cost Savings equal to 30 € mln in 2011 30

ƒ IRIDE forecast cost synergies equal to at least 30 mln within 20 2011. Cost savings involve non energy costs achieved through : – Reorganization of Group processes – Use of existing personnel to cover new tasks arising from business growth – In-sourcing of specific services and cutting of double services – Coordination of group procurements 2007-09 2010-11

Revenue Synergies mainly swapped by energy IRIDE PLANTS GAS CONSUMPTION (mc bln) (*) cost optimization

ƒ Gas-based generation will benefit upstream gas strategy enhancing spark spreads

1,7 ƒ Exploiting multi-fuel products to existing customer base 0,9 ƒ Centralization of billing / call center services for all the commercial companies of the Group 2006A 2011E

(+) Including Edipower 32 2006-2011 EBITDA GROWTH

Scenario HypothesisHypothesis 20062006 20112011

Brent ($/bbl) 65.4 55 In a conservative scenario IRIDE’s targets for 2011, in relation to the Brent ($/bbl) 65.4 55

Capex Plan, are the following: ExchangeExchange ($/€)($/€) 1.251.25 1.31.3

TargetsTargets 2011 2011 GreenGreen CertificateCertificate (€/MWh)(€/MWh) 125125 9999

EBITDAEBITDA @ @ 520 520 €Mln €Mln (~12% (~12% Cagr) Cagr) ElectricityElectricity PricePrice (€/MWh)(€/MWh) 74.774.7 6464

NetNet Debt Debt @ @ 1.35 1.35 €Bln €Bln (2.6 (2.6 x xEbitda) Ebitda)

2011 EBITDA does not include: From Capex to Economics • the 20% contribution of the Torino Nord TLR expansion, as the network will be completed during the summer of 16 520 2011 -18 • 75% of the revenues relating to the Orco Valley plants 30 25 green certificates 54 • Medgas LNG Terminal in Gioia Tauro 41

15 56 301

EBITDA 2006 One-off 2006 Pont Ventoux Moncalieri Torino Nord OLT Synergies Others Market EBITDA 2011 Susa scenario Q & A DISCLAIMER

This document has been prepared by IRIDE solely for the use at investors and analysts meetings.

This document does not constitute an offer or invitation to purchase or subscribe any shares and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

Some information contained herein and other material discussed at the meetings may include forward looking information based on IRIDE’s current beliefs and expectations.

These statements are based on current plans, estimates, projections, and projects and therefore you should not place undue reliance on them.

Forward looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward looking statement. Such factors include, but are not limited to: changes in global economic business, changes in the price of certain commodities including electricity, gas and coal, the competitive market and regulatory factors.

Moreover, forward looking statements are current only at the date they are made.