Appendix: Companies’ Profles

In this Appendix we have gathered data on several dimensions (geographic, fnan- cial, strategic, etc.) of the companies who have participated to the drafting of this book. In the fgure it is possible to have a general overview of the territories served by the companies considered. Given the scale of the map, small portions of terri- tory served by other companies or by municipalities, have not been represented for the sake of clarity. The areas of activities of the companies in the sample presented in the map include also industrial partnerships with other actors of the integrated water service and subsidiaries operations.

© Springer International Publishing AG 2018 323 A. Gilardoni (ed.), The Italian Water Industry, https://doi.org/10.1007/978-3-319-71336-6 324 Appendix: Companies’ Profles

Map of Optimal Territorial Areas served by the companies considered in this work Appendix: Companies’ Profles 325 A2A S.p.A. General information Core business Electricity Gas Water Waste Other ü ü ü ü ü Water Water supply business Transmission Wastewater Water Sewerage and water Distribution treatment capture purifcation ü ü ü ü ü Technical data Distributed Water Water supply Sewerage volumes customers networks (km) (mln mc) (mln) (km) 70.56 0.6 3,600 2,200 Geographical A2A S.p.A. manages the integrated water service in the Province of Brescia presence through its subsidiary A2A Ciclo Idrico S.p.A. Ownership A2A shares are divided between public and private actors: Municipality of structure Brescia 25%, Municipality of Milan 25%, Norges Bank 2.9%, A2A Spa 0.8%, other Shareholders/market 46.3% Key fnancial (EUR million) 2013 2014 2015 2016 data of the Revenues 70.1 70.6 76.5 129.8 water business EBITDA 12.4 14.4 24.2 79.9 (*consolidated Net proft 2.6 0.2 7.8 41.9 − fnancial data Net Debt* 3,874 3,363 2,897 3,136 of the Group) Investments 13.2 15.3 19.9 25.3 ROE* 2.24% 0.57% 1.75% 7.31% − − ROS n.a. n.a. n.a. n.a. History of the A2A is the company resulting from the merger between former municipal com- company panies from Milan (AEM and AMSA) and Brescia (ASM) formally started out on 1 January 2008. On 1 January 2011 A2A Ciclo Idrico S.p.A was established in order to manage the integrated water services in the Province of Brescia Water business Water supply Water is abstracted from 175 wells and 188 springs Sewerage A2A Ciclo Idrico collects urban waste water through over 2,200 km of combined sewage networks, serving 69 towns Wastewater The constant operation of 91 plants allows for the purifcation of more than 46 treatment million cubic meters of wastewater every year, serving 66 towns and 549,636 inhabitants Innovation The most important program of innovation concerns the installation of smart and R&D meters in order to decrease reading activities, improve precision on water bal- ance, implement real time monitoring fows for water losses pre-location based on night fow analysis (continued) 326 Appendix: Companies’ Profles

(continued) Strategy and plans Strategy and Main objectives pursued in the last years plans – Sewage monitoring campaigns in order to localize and eliminate base sanitary dilution in sewage system – Sewage network survey system – Hexavalent chromium water treatments Main plans for the future – Solving infraction proceeding 2014/2059 in order to collect and treat domestic waste water – Non revenue water management – KPI to improve environmental protection, water quality and safety—regularity ser- vice for water supply Focus on Main investments done in the last 5 years: investments – Revamping MBR technology in Verziano treatment plant – Treatment systems to remove hexavalent chromium in the city of Brescia – Upgrading Bagnolo treatment plant up to 20,000 pe capacity – New sewage pipes in Orzinuovi town to collect non-treated waste water to the treatment plant water system connecting 6 towns located in South district of Brescia Main investments foreseen for the next 5 years: – New treatment plant (capacity 36,000 PE) in Gavardo – New treatment plant (capacity 26,000 PE) in Nuvolera – New integrated water cycle system (water supply network, wells, sewage net- work, treatment plant) in the town of Calvisano – Replacement of water meters older than 10/13 years – Aqueduct pipes replacement according to real losses reduction plans

Abbanoa S.p.A. General information Core business Electricity Gas plant Water Waste Other ü Water Water supply business Transmission Wastewater Water Sewerage and water Distribution treatment capture purifcation ü ü ü ü ü Technical data Distributed Water Water supply Sewerage volumes customers networks (km) (mln mc) (mln) (km) 251.3 1.6 11,500 6,300 (introduced) (continued) Appendix: Companies’ Profles 327

(continued)

General information Geographical Abbanoa S.p.A. manages the integrated water services in the Region of Sardinia presence Ownership Abbanoa S.p.A. is fully owned by public entities, namely 342 Municipalities structure located in the region (30.13% of the shares) and the Regional Government of Sardinia (69.87% of the shares) Key fnancial (EUR million) 2013 2014 2015 2016 data of the Revenues 354 299 268 325 water business EBITDA 163 101 77 132 Net proft 72 12 10 9 Net Debt 88 77 37 26 Investments 41 41 36 62 ROE 46.95% 3.78% 2.88% 2.37% ROS 46.60% 7.31% 4.36% 6.03% Company Abbanoa S.p.A. is the operator of the Integrated Water Service in Sardinia. The profle entrustment of the water services to Abbanoa was given through the delibera- tion n. 25/2004 of the Assembly of the Optimal Area, currently the Assembly of the Province of Sardinia as a result of the regional reform law of the sector (Law No. 4, February 4, 2015, No. 4 et seq.). Abbanoa S.p.A., has been cre- ated on 22 December 2005 by the transformation of Sidris S.c.a.r.l. following the merger of its consortium companies; it is wholly owned by Public Bodies, including 342 Municipal Members and the Region Sardinia Partner Water business Water supply Abbanoa manages the integrated water service of the Sardinia region, oversee- ing the provision of drinking water, through ­collection, distribution, treatment, sewerage. The activity concerns both ground water and surface water (85%). The company manages a complex and articulated plant system; in fact, for the production and distribution of drinking water, Abbanoa uses a system of drink- ing water treatment plants distributed throughout the regional territory, which constitutes a real industrial production system. The drinking water treatment plants currently in operation are 43; a water aqueduct system is currently being used in the transport of potable water, where signifcant pumping systems are required to overcome existing differences in altitude between resource sites and distribution points Sewerage The wastewater produced by customers is collected by approximately­ 6,400 km of urban sewerage system that can be operated by gravity (for the most part) or, where necessary, by using sewage lifting installations (around 900 in all regional territory) managed by Abbanoa but ­contracted to other companies for the service of supervision and operations Wastewater Abbanoa manages 347 wastewater treatment plants, with evolving situation due treatment to the completion of some purifcation schemes, which altogether treated 150 mln mc of wastewater. Interventions, between maintenances and failure of elec- tromechanical equipment, maintenance of civil works, carried out altogether in 2016 result to be over 2,791. The recent management improvement can be seen from the total sludge production, of which over 98% has been re-used in agriculture, and from the authorization status of the company that has seen 335 discharges authorized. The electricity used for the treatment of wastewater was about 66.7 mln kWh (continued) 328 Appendix: Companies’ Profles

(continued) Water business Innovation Main innovation projects: and R&D – Pilot project in collaboration with Hitachi Drives and Automation (Italy) for active water management and leakages recovery in the distribution system of the Municipality of Oliena: distrectualization of the newtork and implementa- tion of pressure management plans following the calculation of the Minimum Night Flow, which is an estimation of hydraulic dispersion of the water system, predictive localization of water leakages and priority grading for leak detection – Implementation of the Quality Management System (SGQ) in the Design and Public Works Sector and Certifcation Division according to ISO 9001: 2015 issued by Accredia Certifcation Company in April 2016 – Implementation of the Workforce Management (WFM) technology system that effectively manages all the resources involved, based on a proper schedul- ing and dispatch of workloads across resources through the use of a mobile application a portable device (Tablet). The project, launched in September 2015, has been implemented in 2016 Strategy and plans Strategy and Main objectives pursued in the last years plans Starting from the second half of 2015, the management has planned and imple- mented a system for tracking and analyzing the performance of the defned strategic objectives based on the Balanced Scorecard logic: a review of the Management System for Objectives based on the methodology of the Activity Based Management, which identifes the nuclei on which the actions of the business processes are focused to improve the effciency and effectiveness of the production and service combination Main plans for the future – Objective Industry 4.0, which indicates a business development perspective for industrial automation by integrating new technologies to improve working conditions, increase productivity and production quality of plants, and quality of service to the customer – Leak reduction strategy and hydraulic, energy and management effciency strategy, which includes the extension of the activities carried out in the municipality of Oliena to the 30 municipalities with the most critical situa- tions in order of impact of network leaks in distribution. Over the next few years, the involvement of 200 other municipalities is expected Focus on Main investments made in the last 5 years investments – Activation of the new water networks realized (POT 2005–2007): Approximately 20 M€, from 2012 to 2016 160 km of networks and 12,307 connections to the users – Additive pipelines (CIPE 27): 24.7 M€, at the time of delivery – Water Effciency (CIPE 27): 37.3 M€, at the time of delivery Main investments planned for the next 5 years – RAS mortgages: approximately € 94 million for drainage and water drainage and water drainage and maintenance schemes – CIPE 79: 28 M€ for adjustment and maintenance of sewerage and water networks – Resolution 20: 23 M€ for adjustments and maintenance of sewage—purifying schemes – POR FESR 2014–2020: approximately 30 M€ for water network effciency, districts and telecontrol Appendix: Companies’ Profles 329 Acea S.p.A. General information Group Electricity Gas Water Waste to Other services businesses energy ü ü ü ü ü Water Water supply businesses Wastewater Transmission Sewerage Water capture and water Distribution treatment purifcation ü ü ü ü ü Technical data Distributed Water Water supply Sewerage volumes customers networks (km) (mln mc) (mln) (km) 1,292 8.5 49,650 23,670 Geographical Acea is the italian leading integrated water service operator (catchment, presence supply, purifcation, wastewater collection and treatment) in terms of population covered, with about 8.5 million of served inhabitants in Italy, in the regions of Lazio, Toscana, Campania, Umbria and Molise. The Group is one of the main national operators on the energy market with 10 TWh of electricity distributed and 8.3 TWh of electricity sold to 1.4 million customers. The company is also involved in in the waste to energy business and in power generation, mainly with hydroelectric and photovoltaic plants situated in the central and southern Italy Ownership Acea is a joint-stock company. Ownership structure: Municipality of Rome structure (51%), Suez (23.3%), Caltagirone Group (5%), Norges Bank (1.6%), Others (19.1%) Key fnancial (EUR million) 2013 2014 2015 2016 2017 (exp) data of the Revenues 886.0 939.7 667.5 719.6 830.7 water EBITDA 372.5 398.1 309.3 353.8 384.1 business Net proft 133.5 130.4 129.3 147.2 143.0 Net Debt 833.0 709.5 537.0 791.2 951.7 Investments 202.5 220.1 208.5 268.2 262.0 ROE n.a. n.a. n.a. n.a. n.a. ROS n.a. n.a. n.a. n.a. n.a. History Established in 1909 as the electrical company of Rome, since 1937 Acea has of the managed the municipal aqueducts of the city, than started supplying water and company waste treatment. Quoted on the Italian stock exchange since 19 July 1999, Acea is now a big industrial group and one of the most important national operators in services of public utility in the electrical energy, water integrated treatment, waste to energy; public and artistic lighting (continued) 330 Appendix: Companies’ Profles

(continued) Water business Water Supply The water-supply system, in the Rome metropolitan area, is based on eight major water supply, making up an overall network of approximately 200 km. In addition to this, there are 1,376 km of delivery network and 9,533 km of drinking water distribution network. The main aqueducts and the transport network are controlled remotely, from a qualitative and quantitative viewpoint, and remote metering provides information useful for knowing the status of the network and its conduction (set up of the plants, status of the pumps, position of the valves, measurements, alarms and the possibility of performing remote controlled manoeuvres) Sewerage Integrated Water Service operations include the collection of wastewater and its treatment prior to being returned to the environment. The treatment system in ATO 2—Central Lazio consists of “catchment basins”, territorial units comprising wastewater treatment plants, sewerage networks connected thereto and the relevant water lifting stations. The infrastructures managed include 541 sewerage lifting stations (173 of them in the municipality of Rome), 168 treatment plants (33 of them in the municipality of Rome) and about 6,100 km of sewerage networks (4,088 km managed for the city of Rome) Wastewater Acea monitors the parameters indicating the quality of the water coming into treatment and fowing out of the purifers and the impact on the receiving water bodies: the Tiber and Aniene rivers (also see Environmental issues, Water Area). Every year, Control Centres monitor an increasing number of plants; 493 plants were monitored in 2016, including purifers and sewerage lifting plants. The Acea Ato 2 Environmental Operations Centre constantly monitors data recorded by remote control, thanks to the adoption of avant-garde technology, relating to hydrometric and rainfall information concerning the Rome area Innovation Workforce Management (WFM) came in Acea Ato 2 (Central Lazio) in and R&D 2016. This is a working model aimed at rationalising and streamlining the processes using new centralised information systems and was extended during the year to all of the other water companies in the Group. Acea Ato 2 has antici- pated the requests of the regulator, thanks to the this technological system, in order to further enhance the quality of the service provided and make data and measurements typical of smart metering available to users, such as recording/ alerting losses or controlling consumption. The new functions have enabled the total integration between the GIS geographical system and the SAP maintenance system and this enables the visualisation of the networks and faults in a single context Strategy and plans Strategy The company has progressively expanded its activities, becoming the reference and plans operator, in several Optimal Areas of Operation (ATO) in Central Italy. The Group also operates in a number of South American countries. The Industrial Plan for 2018–2022 confrms the focus on innovation, quality of the services, regulated activities, effciency and infrastructural development. Strategy: consolidating the presence in Italy, South America and in the Mediterranean area Focus on The priorities in the water segment are: an extraordinary plan to modernise the investments aging water distribution network through a program of leak detection (currently in progress); the improvement/development of treatment plants; the removal of obsolete meters and the installation of new, technologically advanced smart metering systems in the all managed and subsidiary company Appendix: Companies’ Profles 331 Acqua Novara.VCO S.p.A. General information Core Electricity Gas Water Waste Other business ü Water Water supply business Transmission Wastewater Water Sewerage and water Distribution treatment capture purifcation ü ü ü ü ü Technical Distributed Water Water supply Sewerage data volumes customers networks (km) (mln mc) (mln) (km) 61 0.4 3,300 2,100 Geographical Acqua Novara.VCO S.p.A. manages the integrated water services in the presence “Ambito Territoriale Ottimale” Piemonte 1, corresponding to the Provinces of Novara and Verbano Cusio Ossola, in the Piedmont region, in Northern Italy. The territory includes 140 municipalities, covering 3,600 km2, stretching from North to South for over 100 km Ownership Acqua Novara.VCO is a public company owned by the municipalities located structure in the Provinces of Novara and Verbania-Cusio-Ossola Key fnancial (EUR million) 2013 2014 2015 2016 data of Revenues 58.3 61.0 66.5 65.4 the water EBITDA 14.4 16.8 21.6 22.2 business Net proft 1.7 2.4 3.7 7.3 Net Debt 36.1 32.4 28.2 27.2 − − Investments 14.1 10.2 14.4 15.2 ROE 7.01% 8.82% 10.26% 13.83% ROS 6.02% 6.76% 14.28% 13.14% History of To implement the Galli Law, 86 municipalities in the provinces of Novara and the company VCO (the so-called ATO1) signed on December 22, 2006 a programme agree- ment aimed at establishing a single operator: Acqua Novara.VCO S.p.A. Over the next 12 months, 50 other municipalities joined the programme agreement and entered in Acqua Novara.VCO S.p.A. On 1 July 2007, Acqua Novara. VCO started managing the integrated water cycle in the territory of the ATO1. In 2010, it completed the process of incorporation of all water management companies operating in the Province of Novara. In 2014, it incorporated Acque Nord Water business Water supply Water is abstracted from 830 different sources (353 wells and 477 springs), treated in 367 treatment plants and stored in 550 reservoirs, with a capacity of more than 57 million liters (equivalent to 12 h of consumption) to meet all the demand variations in day/night cycles, domestic, tourism and industrial use. The capillary distribution network is composed of iron, steel, cast iron and pol- yethylene pipes, with dimensions ranging from a few inches to over one meter in diameter (continued) 332 Appendix: Companies’ Profles

(continued) Water business Sewerage Sewerage has a total length of 2,100 km, with 273 lifting stations and covers 91% of the population Wastewater The wastewater treatment service covers 139 municipalities (437,227 resi- treatment dents). The service is guaranteed through 172 small wastewater plants (less than 10,000 PE), 12 medium-sized (between 10,000 and 100,000 PE) and 2 large plants (treatment capacity over 100,000 PE) Innovation In July 2016, the company participated in the constitution of Water Alliance, and R&D the association of the Piedmont’s most important water companies, with the mission of consolidating management practices, sharing experiences and promoting joint research and development activities. The frst projects activated by Water Alliance include: the search for new methods to dispose sludge; the identifcation of groups of parameters for tele-control; and the analysis of ICT infrastructures for evaluate possible future technological synergies. During the year, Acqua Novara.VCO collaborated with the National Research Council of Verbania on the study of antibiotic-resistant bacteria in the wastewater (before and after treatment) Strategy and plans Strategy and In order to pursue its objectives, Acqua Novara.VCO has adopted the fol- plans lowing strategies: ensuring compliance with tariffs as approved by AEEGSI, through systematic monitoring and progressive reduction in production costs; minimizing the risks associated with the food security of the water delivered, pursuing high quality standards; preventing environmental pollution through the progressive improvement of wastewater treatments, energy effciency of plants and reduction of water leakages; ensuring continuity of service by adopting the best available techniques in maintenance work and carefully planning the management of water emergencies in conditions of failure or drought; meeting user requests in accordance with the times and in the manner provided by the Agreement of Services and the defned standards of AEEGSI through progres- sive computerization of processes; ensuring the control of the applicable regula- tions and requirements by providing certifed voluntary management systems; minimizing the risks for workers through the adoption of “zero injuries” objec- tive-oriented improvement procedures and programs; allocating 100% of the economic and fnancial resources to the investments needed for industrialization and effciency of the service Focus on Acqua Novara.VCO investment plan for the period 2006 to 2026 amounts to investments € 200 million: 70% of the projects are funded directly by service tariffs, 15% through the national budget and the remaining 15% through bank loans. In 2016, investments have been directed primarily to environmental protection, with a total amount of € 6.6 million for the enhancement of sewerage net- works and sewage systems. To increase the level of informatization and meas- urement capacity of process outputs, the company abandoned the work force management tool previously used and started implementing a new software. Investments for the progressive extension of tele-control to all the managed plants and the water and sewerage networks continue in order to be transposed into the geographic information system (GIS), so as to make monitoring and management of infrastructures more effective for operational teams Appendix: Companies’ Profles 333 Acquedotto Pugliese S.p.A. General information Group Electricity Gas Water Waste Other businesses ü Water Water supply businesses Transmission Wastewater Water Sewerage and water Distribution treatment capture purifcation ü ü ü ü ü Technical Distributed Water Water supply Sewerage data volumes customers networks (km) (km) (mln mc) (mln) 500 4 24,998 15,884 Geographical Acquedotto Pugliese S.p.A. (AQP) is a leading Italian operator of water cycle presence management, which covers the whole territory of the Puglia Region (242 munic- ipalities) along with 10 municipalities in the neighboring Campania Region. The Puglia Region is one of the most populated (4,079,702 residents) and the sec- ond largest (19,358 km2) Italian “Optimal Territorial Area” (Ambito Territoriale Ottimale or ATO), as defned by the national and regional laws regulating the sector Ownership 100% of the Puglia Regional Government structure Key fnancial (EUR million) 2013 2014 2015 2016 data of Revenues 481 477 516 545 the water EBITDA 153 150 174 184 business Net proft 35 40 15 15 Net Debt n.a. n.a. n.a. n.a. Investments 144 170 150 168 ROE 13.45% 11.91% 4.32% 4.70% ROS 10.46% 10.39% 9.71% 10.43% History of Constituted in 1919 as Ente Autonomo per l’Acquedotto Pugliese (EAAP) by the company means of the Royal Decree-Act October 19th 1919 n. 2060, the company has operated for 80 years as a state-controlled enterprise. In 1999, by means of the Legislative Decree May 11th 1999 n. 141, EAAP was transformed into a joint-stock company named Acquedotto Pugliese S.p.A., which was entrusted with the water and wastewater management in the whole territory of the Puglia Region. Today AQP is a holding company, entirely owned by the Puglia Regional Government. The activities and services provided by AQP include water supply from several sources, water treatment, transport and distribu- tion, wastewater collection, treatment and disposal, sludge treatment, disposal, and recycling, as well as commercial services of metering, billing, tariff col- lection and customer services and assistance. AQP is also responsible of the execution of all the investments in the water and wastewater sectors, which are planned by the regional Regulation Authority (AIP, Autorità Idrica Pugliese) and approved by the national Regulation Authority (AEEGSI, Autorità per l’energia elettrica il gas ed il sistema idrico) (continued) 334 Appendix: Companies’ Profles

(continued) Water business Aqueduct The water sources used by Acquedotto Pugliese are natural springs (30%), res- ervoirs (50%) and aquifers (20%), the frst two being mostly located out of the Puglia Region, whose natural water sources are quite scarce in comparison to the other Italian regions. Superfcial water from artifcial reservoirs is treated in fve water treatment plants (WTPs). The regional water conveyance system managed by AQP is one of the world’s longest, made up of six water transport schemes of large pipelines for a total length of around 5,000 km and a total capacity of over 25 m3/s. These schemes are interconnected and thus capable of transferring water throughout the region following seasonal demand and compensating variable production rates of the different sources. The number of water distribution networks served are around 350, with a total length of 25,000 km. Thanks to 5,600 sensors in more than 1,300 stations, an advanced remote control system supervises the fow of water throughout the water schemes Sewerage AQP manages the sewerage network in 238 municipalities, for a total length of 16,000 km Wastewater AQP manages 184 wastewater treatment plants, 182 in the region Puglia and 2 treatment in the region Campania Innovation In the last years AQP activated several innovation and R&D projects, among and R&D which: –U.N.I.Co (Urban Network for Integrated Communication), in partnership with ENEL (multi-national power company and a leading integrated player in the world’s power and gas markets) and the municipal gas distribution com- pany. The project promotes the concept of smart cities by the set-up of a sys- tem capable of remote monitoring and operation by several utilities, such as water, gas, public lighting, heat and energy, which share the same communica- tion infrastructure –IUS OPTIMA (Integrated Urban System OPTImization and Management) aims to develop a DSS to manage the urban waste water cycle by means of integration of theoretical models and computer automation, with a focus on environmental monitoring aimed to proactively alert agents in case of events carrying potential risks for the plant or the external environment –P.C.P. (Pre Commercial Procurement) related to specialized systems for leak detection (e.g., with drones) and innovating system for the treatment of the wastewater sludge –GOSAR (Optimal management of acqueduct systems and risk analysis) project. The model builds forecast algorithms about the availability of water in the main reservoirs helping to manage the water fows within several systems, thus maximizing the systems safety and minimizing the production and pumping­ ­cost of water. It also helps to simulate and manage “water crisis” scenarios –S.I.M.P.Le. (System for Identifying and Monitoring Pipe Leaks) project is a new method for localizing water leaks along pipes through the application of the TDR (time domain refectometry) technology Strategy and plans Strategy and AQP provides its own history and expertise to help build an ambitious develop- plans ment project that involves the community of southern Italy. Consistently, AQP is committed to continue along the path of effciency of the service, in com- pliance with the required quality standards. Attention is given to environmental issues, with particular regard to re-use of sludge and purifed water in agri- culture. In addition, AQP pursues the objectives of strengthening tele-control ­systems in water distribution networks, developing energy effciency activities and the production of electricity from renewable sources (continued) Appendix: Companies’ Profles 335

(continued) Strategy and plans Focus on Over the last fve years, AQP invested an amount of € 800 million in several investments activities, which include the construction of pipes, purifcation plants, engi- neering of urban waterways and maintenance, interventions to improve the management of the water distribution service and to reduce leakages. The cur- rent investment plan identifes projects for an amount of € 1,300 million in a four-year period (2016/2019). The plan focuses on the completion of some of the most important water infrastructures, with related interconnection works, the upgrading of wastewater treatment plants, particularly those located in the regional capital

Azienda Servizi Ambientali S.p.A. General information Group Electricity Gas Water Waste Other businesses ü ü Water Water supply businesses Transmission Wastewater Water Sewerage and water Distribution treatment capture purifcation ü ü ü ü ü Technical Distributed Water Water supply data volumes customers networks Sewerage (km) (mln mc) (mln) (km) 38 (2015) 0.37 (2015) 3,467 1,229 Geographical Azienda Servizi Ambientali (ASA) manages the integrated water cycle in the presence Province of Livorno, Pisa and Siena, along with all the islands of the Tuscan archipelago, such as Elba, Capraia, Gorgona, and Pianosa, which are charac- terized by a strong water scarcity Ownership 60% publicy-owned (Livorno and other municipalities of the Province of structure Livorno, Pisa and Siena). 40% IRETI (subsidiary of IREN) Key fnancial (EUR million) 2013 2014 2015 2016 data of Revenues 75.4 79.3 82.6 89.3 the water EBITDA* 16.5 20.0 20.8 26.6 business Net proft* 24.1 5.6 2.8 6.9 (*consoli- Net Debt* 39.7 46.8 39.0 36.78 dated fnan- cial data of Investments 19.6 15.8 13.4 15.6 the Group) ROE* 38% 8% 4% 10% ROS* 8% 9% 8% 11% History of The history of ASA begins on April 5, 1972, when the City of Livorno consti- the company tuted the Municipal Gas Company (AMG). In 1975, AMG started also manag- ing the integrated water cycle, becoming the Municipal Gas and Water Company (AMAG). Since then, ASA has changed its corporate form, from a special company to a limited company, and core business activities, to become the gas distributor in fve municipalities in the province of Livorno and the sole manager of the integrated water cycle in the ATO 5 Coastal Tuscany (33 municipalities) (continued) 336 Appendix: Companies’ Profles

(continued) Water business Water supply The water supplied to Livorno and Collesalvetti comes from three main well- felds located in the Paduletto area near Vecchiano (PI), Filettole (PI) and Mortaiolo (LI). Additionally, the company buys from GEAL 7.5 million cubic meters/year from the wells of S.Alessio (LU). The Paduletto wellfeld is equipped with 3 wells that emit annually about 3 million cubic meters of water. The Filettole wellfeld consists of 10 wells, from which about 2 million cubic meters of water are drawn. The Mortaiolo wellfeld is composed of 35 wells, providing about 5.5 million cubic meters of water per year. Volterra and Pomarance are served by the wellfeld located in the Pomarance Municipality, consisting of 30 wells. The water feeding Cecina and Montescudaio comes mainly from the wellfeld Steccaia located in the Municipality of Montescudaio (PI). Approximately 1 million cubic meters per year are taken from the allu- vial deposits of the Cecina River. The water distributed in Val di Cornia comes mainly from an area located in the plain between Campiglia and Suvereto with 35 capture works, from which about 6.5 million cubic meters/year are taken, including 3 million for the island of Elba Sewerage The sewage network managed by ASA extends for 1,229 km. Water along the coast is predominantly collected through separate sewers, whereas in the hilly areas and in the agglomeration of Cecina water is collected mainly through mixed sewers. Overall, the contribution of white water to public sewers is around 1/3 but may vary annually according to the rainfall regime Wastewater In 2016, the volume of wastewater treated in 76 purifcation plants was treatment 33,305,406 m3/year, of which 3,543,259 were reused for industrial activities. The percentage of industrial wastewater treated by ASA was 3%. The percent- age of treated wastewater compared to the total treatment capacity was 95%. The sludge obtained from the purifcation process is stabilized and dehydrated, then recovered in compost or fertilizer production plants or directly in agricul- ture. ASA produces organic sludge from all secondary implants (38 plants). In 2016, 14,815 tons of sludge were produced Innovation ASA is collaborating with the Sant’Anna School of Advanced Studies in sev- and R&D eral research and innovation projects related to the integrated water service, with particular reference to the circular economy, water reuse and recovery of sludges and energy from the purifcation cycle. The main R&D projects are: –Life Rewat. The project was conceived for the development of a par- ticipatory strategy for the sustainable management of water resources in Lower Val di Cornia through the reduction of water demand. The Project Partnership includes the authority of ATO 5 Coastal Tuscany, Sant’Anna School of Advanced Studies, ASA and the Tuscany Regional Government. The Municipality of Campiglia Marittima, the Municipality of Piombino and the Municipality of Suvereto co-fnance the project. The project has been designed to evaluate the possibility of reusing water for irrigation purposes whilst ensuring low costs –Risk management operational models related to bathing water monitoring in relation to the management of sewerage and depuration infrastructures. ASA, with its own internal resources after a review of best practices, started the study and modeling of impacts of sewerage in the hydrographic network, with particular attention to rainfall events along the coast, failure of the collecting system or the presence of irregular discharges in urban areas. The study led to the establishment of a working table with the concerned institutions that has yielded remarkable results in terms of governance (continued) Appendix: Companies’ Profles 337

(continued) Water business Innovation –Research project in collaboration with the University of Pisa— and R&D Department of Energy Engineering, Systems, Territory and Construction (DESTEC), called SMART—DEPUR. The 24-month research project aims at developing a predictive model for the management of separate sewage net- works, which will enable either to anticipate or at least report in a timely and reliable way With respect to circular economy, ASA is collaborating with Utilitalia on several studies in the feld of recovery of sewage sludge for fertilization Strategy and plans Strategy The strategy of the company is focused on the following aspects: implementing and plans effciency and cost reduction policies; optimizing the current fnancial structure and systematizing funding methods; improving the effciency of the bill collec- tion system; revising risk management analysis in various business processes in light of the new ISO 9001: 2015 standard; enhancing internal and external communication Focus on A signifcant portion of investments is dedicated to extraordinary maintenance. investments New water distribution networks, storage, water purifcation, wastewater treat- ment complete main areas of investment. Among the projects to be realized, the new desalination plant of Elba has to be mentioned. The project aims at achieving, in full respect of the environment, the water autonomy of the island and the conse- quent recovery of supply sources in Val di Cornia. The 160 l/s provision goal will be achieved with two successive lots

CAP Group General information Group Electricity Gas Water Waste Other businesses ü Water Water supply businesses Transmission Wastewater Water Sewerage and water Distribution treatment capture purifcation ü ü ü ü ü Technical Distributed Water Water Sewerage data volumes customers supply networks (km) (mln mc) (mln) (km) 217.2 2.5 6,483 6,808 Geographical CAP Group is the sole manager of the water service in the Province of Milan presence and active in various Municipalities in the Provinces of Monza and Brianza (22), Pavia (22), Como (2) and Varese (2) Ownership 100% publicly-owned by the Municipalities in which CAP operates structure (continued) 338 Appendix: Companies’ Profles

(continued) General information Key fnancial (EUR million) 2013 2014 2015 2016 data of Revenues 231.2 238.1 239.7 260.0 the water EBITDA n.a. 103.7 107.0 117.3 business Net proft 12.6 7.2 20.4 29.5 Net Debt n.a. n.a. n.a. n.a. Investments 60.5 63.5 78.3 80.7 ROE n.a. 1.09% 2.82% 3.93% ROS n.a. 18.23% 14.86% 23.41% History of CAP Group has been created to “Bring the water to the homes of the the company Milanese” in 1928 by four Municipalities. Since then, an increasing number of Municipalities decided to entrust this company with the construction and management of their aqueducts: between 1932 and the end of the 1950s, over 130 Municipalities joined CAP, reaching about 200 Municipalities in the following decades. Till the 1950s, dozens of wells were drilled, storage tanks were erected and hundreds of kilometres of pipes were laid in order to satisfy the basic human need for drinking water. In the following years, CAP adopted strategies and technologies to guarantee the quality of water and protect the environment, starting to play a leading role in the search for new sources, the adoption of modern purifcation systems, the design of advanced solutions for the management of services and sewerage structures. The bases were there- fore laid for the industrial management of the integrated water service and the future challenge of promoting the water resource On 22 May 2013 incorporation of Ianomi, Tam and Tasm in CAP Group was signed. As of 1 June, this resulted in the creation of CAP Group. On 20 December 2013 the Province of Milan contracted out the Integrated Water Service to the CAP Group for the next 20 years Water business Water supply CAP Group collects water from the subsoil throughout 782 wells. Half of the water withdrew from the subsoil is already drinkable and does not need further treatment, while the other half is treated through 294 water purifcation plants to remove any potential impurities. Part of the water is stored in storage tanks that help to offset variations in water consumption at different times of day. CAP Group’s Drinking Water Laboratory made 746,289 analyses in 2016 Sewerage CAP Group collects domestic and industrial wastewater and rainwater, which is treated and purifed before being “returned” to nature. CAP Group manages 6,057 km of sewage networks. In addition, 705 drains are monitored. 330 lift- ing stations, 56 storm water tanks, 86 balancing tanks, 690 spillways are also part of the sewage infrastructure. Its widespread presence in the area it serves enables CAP Group to monitor the conditions of the sewage pipes and quickly resolve any problems identifed, thus guaranteeing a continuous and effec- tive service. In 2016, almost 7,353 measures were carried out on the sewage network (continued) Appendix: Companies’ Profles 339

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Water business Wastewater In 61 treatment plants, CAP Group processes the civil and industrial wastewater treatment that is brought through the sewers and the inter-municipal trunk lines. Every day, CAP Group is committed to monitoring and reducing the environmental impact of its activities where possible. This is especially true for the treatment process and for sewage, which are monitored and surveyed in minute detail. Besides guaranteeing the respect of environmental legislation, this approach also results in an ongoing search for optimal solutions that combine energy eff- ciency and respect for the area in which CAP Group carries out its activities. As for the sludge disposal, 41,828 tonnes were reused in agriculture, 9,478 were taken to landfll sites, 5,176 were dried and 1,321 were sent to cement plant. CAP Group is addressing the issue of sludge disposal and reuse in a structured and multidisciplinary way. In fact, while at small treatment plants our goal is to reduce the volume of the sludge produced, in larger plants measures are taken to improve the production of biogas with the insertion of cogeneration units. In 2016, 3,417,690 kwh were produced by CAP Group treatment plants Innovation CAP Group is involved in numerous knowledge, innovation and development and R&D projects with the aim of guaranteeing the excellence of its solutions, making use of the best available technologies and minimizing environmental impact and health and safety risks for its workers. The continuous commitment to innova- tion and knowledge enables CAP Group to provide an increasingly more intel- ligent and advanced service CAP Group plays a leading role in requests for tender for the fnancing of Italian and international innovation research projects, considering in particular the following themes: optimization of the use of the energy; innovative design of the water and hydraulic service; management and reduction of purifcation sludge produced and requiring disposal; integration of smart systems for the remote management of meters, measurements and feld analyses; analysis of emerging micro pollutants and their treatment. The main R&D projects concern: –Zero-mile biomethane. The project was undertaken by CAP Group in August 2016 at the water treatment plant in Niguarda-Bresso (Milan), with the scientifc support of the National Research Council of Italy (CNR) and the technological collaboration of FCA Group. It consists in the production of biomethane from sludge coming from water treatment plants, as a sustainable, ecological and innovative alternative to the traditional sludge disposal methods, which are gradually becoming less feasible and acceptable from the environ- mental point of view, and more expensive to perform –The analysis of drinking water and wastewater for Water Safety Plan in CAP Group laboratories –The Infrastructure Plan for Aqueducts. The plan deals with integrated anal- ysis of the subsoil for the sustainable management of water resources –Integrated remote control and smart metering –Water service and agriculture. Through the Flooh Hide project, whose aim is to drain excess rainwater and control the rise of water through the reactiva- tion of the system of artifcial drainage and natural canals and springs that con- stituted a minor water grid built eight centuries ago –Optical Fiber. The project, in association with the City of Milan, consists in the laying of the last 210 km of Internet backbone of a 2,000 km network already laid in recent years. With an investment of 2.5 M€, CAP Group will lay and look after the optical fber, which will be located directly in the sewage trunk lines, cutting infrastructure costs by 50%, reducing environmental impact and practically eliminating the risk of tampering (continued) 340 Appendix: Companies’ Profles

(continued) Strategy and plans Strategy and The main future objectives include becoming the frst water service provider in plans Italy to adopt the Water Safety Plans introduced by European legislation, after concluding a pilot phase and obtaining the approval from the Italian Health Authority. In addition, CAP Group succeeded in reducing the environmental impact of its activities and the effciency of the processes, especially of the water treatment. Another goal regards the increase in the use of renewable energy (currently 39% of all the energy consumption derives from renewable energies). Lastly CAP Group aims at managing the water activities with a deep commitment to innovation and improvement of the knowledge base so as to provide an increasingly intelligent and advanced service for its customers Focus on In the last years, most of investments were dedicated to enforce the water supply investments network, reduce leakages and connect the single municipal water networks. In the near future, investments will be concentrated in the felds of Water Safety Plans implementation, sewage and treatment plants environmental impacts and sludge disposal. In small treatment plants, the goal is to install systems that reduce the volume of the sludge produced, while in larger plants it is to improve the production of biogas and biomethane. In the mid- and long-term, CAP Group envisages the installation of pilot sludge incinerator units equipped with energy recovery technologies, while further developing the research regarding the disposal of sludge and the optimization of energy and raw materials recovery

Dolomiti Energia Holding S.p.A. General information Group Electricity Gas Water Waste Other businesses ü ü ü ü ü Water Water supply businesses Transmission Wastewater Water Sewerage and water Distribution treatment capture purifcation ü ü ü ü Technical Distributed Water Water Sewerage data volumes customers supply networks (km) (mln mc) (mln) (km) 34.3 0.2 1,267 900 Geographical Trento and its Province (15 municipalities) presence Ownership The most important shareholders are Findolomiti Energia (47.8%), Ft structure Energia (11.9%), Fondazione Caritro (5.3%), Municipality of Trento (5.8%), Municipality of Rovereto (4.3%), ISA (4.2%). The rest of the shares are owned by local utilities and private investors (continued) Appendix: Companies’ Profles 341

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General information Key fnancial (EUR million) 2013 2014 2015 2016 2017 (exp) data of Revenues 82.1 82.4 79.7 79.7 76.6 the water MOL 32.2 28.7 29.2 28.9 26.4 business Net proft 10.4 10.3 11.2 10.6 8.7 Net Debt 33.0 15.3 1.4 1.1 n.a. − − − Investments 10.6 10.3 13.5 9.8 11.6 ROE 6.0% 5.6% 5.8% 5.7% 4.6% ROS 23.9% 19.1% 19.3% 18.6% 15.9% Water business Water Supply Novareti, a Dolomiti Energia Holding subsidiary, is responsible for network services. It manages over 1,200 km of water pipes, supplying about 34 million cubic meters of water per year, serving more than 80,000 customers in 15 municipalities of Trentino (over 200,000 inhabitants). The water supply network consumes 6.9 million kWh of electricity. Thanks to the use of remote- control technologies and advanced active search, the network leakages amount to 15% of the water pumped Sewerage Novareti manages the sewer network of central Trentino municipalities. The electric consumption of the sewer amounts to 0.6 million kWh Innovation The main innovation project regards the implementation of an Advanced and R&D Process Control, which manages the network based on the signals from the measurement instruments dislocated in the network; this Advanced Process Control is supported also by the implementation of a real-time model of the network (Innovyze Infoworks Live) Strategy and plans Strategy and The main strategic objectives are: expanding the tools of dialogue with custom- plans ers and consumer associations and improve the services offered; continuing to be competitive on the market and offer customers services always better and more savings; maintaining high standards in terms of quality, security and con- tinuity of services to users; ensure safety and health in the workplace; enhanc- ing human resources to develop skills; developing internal information and communication; contributing to the support of social, cultural and sport initia- tives promoted by local authorities and associations; ensuring investments in network renewal and service improvement; enhancing accessibility to group facilities; establishing transparent and fair relationships with suppliers Focus on The main investments foreseen for the next fve years consist in the replacement investments of the backbone aqueduct in Trento, the main city in Trentino, and the optimiza- tion of the network by the implementation of the Advanced Process Control 342 Appendix: Companies’ Profles Egea S.p.A. General information Group Electricity Gas Water Waste Other businesses ü ü ü ü District heating Water Water supply businesses Transmission Wastewater Water Sewerage and water Distribution treatment capture purifcation ü ü ü ü ü Technical Distributed Water Water supply Sewerage data volumes customers networks (km) (mln mc) (mln) (km) 25 0.3 3,690 1,345 Geographical EGEA operates in the centers of the Province of Cuneo (excluding the presence capital), including Alba, Fossano, Savigliano, Bra and Saluzzo Ownership The majority of shares are owned by the Carini family (about 60%). The sec- structure ond most important shareholder is the Municipality of Alba (6.32%); smaller municipalities and private investors own the remaining shares Key fnancial (EUR million) 2013 2014 2015 2016 data of the Revenues 19.3 20.2 20.9 20.9 water business EBITDA 4.5 5.4 5.8 5.7 (*consoli- Net proft 0.8 0.9 0.9 1.9 dated fnan- Net Debt* 70.4 76.4 78.2 65.2 cial data Investments* 13.1 15.3 18.0 19.3 of the Group) ROE* 7.5% 9.6% 3.9% 6.2% ROS* 1.65% 2.3% 2.1% 2.1% History of EGEA is a multi-utility group, which has been active since 1953 in the distri- the company bution of gas, and entered in other sectors (Environment and Energy) in the 1990s. The management of water services started in the mid-1990s in ATO 4 Cuneese. The service is managed through three companies, namely Tecnoedil (100% EGEA), Alpi Acque (49% Tecnoedil and 51% municipalities) and Alse (40% Tecnoedil and 60% municipalities) Water business Water supply The Group operates in 89 municipalities belonging to ATO 4 Cuneese, corresponding to 54% of the territory of the province of Cuneo and to 60% of its inhabitants, through three operating companies: Tecnoedil, Alpi Acque and Alse. EGEA is the most important operator at the provincial level and the ­second most important at the regional level. The Group's water management services run 3,690 km of supply and distribution network, supplying 263,000 inhabitants with a volume of 25 million cubic meters of drinking water, of which 64% from wells exploiting deep sources, 26% from alpine springs, and 10% from surface watercourses. In order to ensure compliance with the water quality standards, annually 2200 analytical determinations on chemical and microbiological aspects are carried out. Water supply systems are largely structured on a territorial basis Sewerage The sewerage managed by the Group covers a population of about 200,000 inhabitants, for 85 municipalities (continued) Appendix: Companies’ Profles 343

(continued) Water business Wastewater The Group operates 325 wastewater treatment plants in approximately 70% of treatment the territory. 21 have a potential of more than 2,000 PE, 1 is over 50,000 PE, ­ 4 between 10,000 and 50,000 PE, some of approx. 8–10,000 PE. The infrastruc- ture serves 176,000, in 66 municipalities. EGEA is the only company at the provincial level to ensure wastewater quality, in addition to drinking water quality. About 2,500 analytical controls are undertaken to ensure compliance with the water quality standards Innovation Major innovations have been made in the feld of treatment of water for human and R&D consumption (ultrafltration) and wastewater treatment (Moving Bed Bioflm Reactor) Strategy and plans Strategy and The strategy is to compete for the renovation of the agreement for the man- plans agement of the water service, with the possible aim of widening the area of operations. To this aim, the Group will focus on infrastructure engineering, interconnecting resources, networks and technological innovations Focus on In the area of water management, EGEA invests over € 5 million per year. In investments the future, EGEA is planning to increase this amount up to € 11–12 million per year and submit a project for approval to the EIB for more than € 25 million

Hera S.p.A. General information Group Electricity Gas Water Waste Other businesses ü ü ü ü ü Water Water supply businesses Transmission Wastewater Water Sewerage and water Distribution treatment capture purifcation ü ü ü ü ü Technical Distributed Water Water supply Sewerage data volumes customers networks (km) (mln mc) (mln) (km) 300 3.6 35,000 18,600 Geographical The Hera Group operates in environmental, water and energy services in presence over 350 municipalities in Emilia-Romagna, Tuscany, Friuli-Venezia Giulia, Marche and Veneto. Today, the Group is one of Italy’s largest local utilities, with over 8,500 employees committed every day to meeting the different needs of more than 4 million citizens Ownership Hera is mainly a publicly-owned company characterized by the presence of structure numerous municipalities, with a relatively low concentration of shares. As at July 1 2017, 118 shareholder municipalities (united by a shareholders’ agreement renewed in 2015 until 30 June 2018) hold about 49.5% of the share capital. The rest of the shares are owned by private investors (continued) 344 Appendix: Companies’ Profles

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General information Key fnancial (EUR million) 2013 2014 2015 2016 data of Revenues 736.7 780.2 796.2 807.7 the water EBITDA 193.5 217.1 232.5 228.8 business Net proft* 181.7 182.4 194.4 220.3 (*consoli- Net Debt n.a. n.a. 978 1,113 dated fnan- Investments 91.1 93.6 114.9 111.8 cial data of the Group) ROE 6.3% 7.4% 7.8% 8.6% ROS n.a. n.a. 14.7% 13.4% History of In 2002, 11 municipal companies, including the Bologna-based Seabo and a the company number of Romagna companies, joined together to satisfy the growing needs of an extremely dynamic region and to maximise the value of the assets held by the municipalities in their respective companies. The new company went public on the Italian stock market in 2003, representing the frst operation on this scale in Italy’s highly fragmented local public services sector. Hera Group immediately positioned itself as a major player in the consolidation process that is taking place in the sector, and began a path of constant growth, to be achieved both organically and through a major programme of acquisitions of other municipal companies in the region. Over time, this expansion included the Marche region (via the creation of Marche Multiservizi) and, more recently, the North East, with the integration of AcegasAps and Amga Udine Water business Water supply The water supply service is guaranteed by 399 irrigation systems (excluding disinfection points and industrial treatments). Given the multiplicity of water supply sources, there are several treatments to which the water is subjected, from the simplest typologies to the most complex. Generally, however, com- plex, multiline, and remote-control treatments prevail. Treatments are: physical, such as fltration and fotation; physicochemical, such as focculation; chemical, such as disinfection (ozonization and chlorination), obtained by the ingestion of chemicals that foster the elimination or reduction of pollutants. However, the type of treatments is constantly evolving, taking into account national and European legislative changes, new scientifc knowledge, plant innovations and the sophistication of analytical techniques to support quality controls Sewerage The sewerage network covers 92% of demand in 2016 for all agglomerations in managed areas. The percentage in Emilia-Romagna reaches 99% for the agglomerations with more than 2,000 PE Wastewater The urban wastewater treatment service is carried out with 874 treatment plants treatment (350 wastewater treatment plants and 524 Imhoff pumps) of which 15 have a potential greater than 100,000 PE. The main purifcation plants are complex and articulated in different treatment sections, ranging from traditional active sludge systems to the most innovative membrane treatment systems, from standard sections of treatment and sludge disposal to anaerobic digestion systems with relative preservation and re-use of biogas Innovation Hera is committed to paying close attention to the quality of the drinking water and R&D it provides and the water that is subsequently purifed and reintroduced into the environment, with over 736 thousand analyses conducted each year through- out the Group’s area of activity, or more than 2,000 analyses per day. Hera ensures full compliance with regulatory requirements through targeted checks at all stages of the cycle, via analysis and monitoring activities managed by its Laboratories System (continued) Appendix: Companies’ Profles 345

(continued) Water business Innovation Providing a continuous service and reducing leaks are at the heart of the smart and R&D grid experimental projects, which range from remote water meter reading to the division of the water network into districts in order to record and report any irregularities in consumption and subsequently search for hidden leaks. Moreover, last year Hera was the frst company in Italy to adopt a new system based on scanning the ground by satellites, developed in partnership with an Israeli company. This innovative system is used in Emilia-Romagna region to integrate the planned activity to detect leaks Hera has also launched free innovative services for the customers it serves, such as SMS alert in the event of planned interruptions to the water service and the App “Acquologo” for smart phones which, for example, allows citizens to fnd out the quality of the tap water in their municipality. An area dedicated to the water cycle is available online:www.gruppohera.it/acqua, with useful informa- tion and details Strategy and plans Strategy and Hera Group is the second operator in Italy in the integrated water service manage- plans ment. Through signifcant investment in infrastructures (on average € 100 million from 2001 to 2016), Hera Group aims to provide a water cycle service that fully satisfes the needs of the communities it serves, with levels of service that are as standardised as possible throughout the various areas Focus on In 2016, the most signifcant works included, among others: in the aque- investments duct, the upgrading of pipes in the historical centre of Bologna, the creation of the transportation line Crealis, and the upgrading of interconnections in the Modena water system; in sewerage, continuous progress in works for the Rimini Seawater Protection Plan, in addition to redevelopment of the sewer- age network in other areas; in purifcation, the creation of the head tank of the Riccione purifcation plant, upgrading on the Cattolica purifer, revamping of the oxygen production facility in the Idar purifcation plant in Bologna and, in the areas served by AcegasApsAmga, continued works in upgrading the large purifcation plants in Servola, Cà Nordio and Abano Terme Investment Dec 2016 Dec 2015 Abs. % Change (€/mln) Change Aqueduct 61.5 59.1 2.4 4.1 Purifcation 32.7 33.8 1.1 3.3 − − Sewage 37.6 34.3 3.3 9.6 Total water 131.8 127.2 4.6 3.6 cycle gross Capital grants 20.0 12.2 7.8 63.9 Of which FoNI 7.3 2.3 5.0 217.4 (New invest- ment fund) Total 111.8 114.9 −3.1 −2.7 The Seawater Protection Plan in the city of Rimini is currently the biggest sewerage reclamation project in Italy. It involves an infrastructure project costing €154 million, developed by Hera Group, the Municipality of Rimini, Romagna Acque and Amir. So far, four of the 11 projects have been com- pleted perfectly in line with initial timing. Under the plan, by 2020 the waste- water from 11 drainage systems into the sea will be abolished and this will make it possible to reduce the pollutant impact of organic substances by 90% 346 Appendix: Companies’ Profles Iren S.p.A. General information Group Electricity Gas Water Waste Other businesses ü ü ü ü ü Water Water supply businesses Transmission Wastewater Water Sewerage and water Distribution treatment capture purifcation ü ü ü ü ü Technical Distributed Water Water supply Sewerage data volumes customers networks (km) (mln mc) (mln) (km) 248 2.04 18,494 9,300 Geographical IRETI, as IREN Group subsidiary, manages the integrated water service in presence Emilia Romagna (provinces of Parma, Piacenza and Reggio Emilia), and, through its participated companies, in Liguria (provinces of Genoa, and in portion of the provinces of Imperia and Savona). It operates also in other small areas, mainly in the north of Italy Ownership Over 60% of the shares (including also saving shares) are held by structure Municipalities. On May 9, 2016, Finanziaria Sviluppo Utilities S.r.l. (Finanziaria Sviluppo Utilities, jointly controlled by the City of Turin and the City of Genoa) and other 64 Emilian Municipalities signed shareholders’ agreement to guarantee Iren S.p.A. unity and stability. Equity holdings by pri- vate individuals are legally limited to the maximum of 5% Key fnancial (EUR million) 2013 2014 2015 2016 2017 (exp) data of Revenues 426 464 486 504 548 the water EBITDA 117 150 156 163 161 business Net proft* 92 86 140 185 n.a. (*consoli- Net Debt* 2,525 2,286 2,169 2,457 n.a. dated fnan- − − − − Investments 68 83 98 85 92 cial data of the Group) ROE* 4.60% 4.30% 6.80% 8.1% n.a. ROS 12% 16% 19% 16% 14% History of IREN, a multi-utility company listed on the Italian Stock Exchange, operates the company in the sectors of electricity (production, distribution and sale), thermal energy for district heating (production and sale), gas (distribution, sale and regasifca- tion), management of integrated water services, environmental services (col- lection and disposal of waste) and energy services. IREN is structured as an industrial holding with its main corporate offces in Reggio Emilia, operating units in Genoa, Parma, Piacenza, Vercelli and Turin, and separate business units (and correspondent subsidiaries) in charge of the individual business lines. Holding company, Iren S.p.A. handles strategic, development, coordina- tion and monitoring activities, while the four business units ensure the coor- dination and development of business lines: Business Unit Reti corresponds to subsidiary IRETI S.p.A., the company involved in the management of the integrated water cycle, the electrical MV/LV network and the distribution gas network (continued) Appendix: Companies’ Profles 347

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Water business Water supply IREN through IRETI manages drinking water services in 197 municipali- ties in 7 provinces (RE, PR, PC, GE, SV, IM, SP), 2 regions (Liguria, Emilia Romagna) over a territory of about 8,320 kmq with more than 2 milion inhabit- ants served. Over the territory, there are 16,430 km of distribution networks and about 6,600 plants. Supplied waters comes from different kinds of exploited fresh water resources such reservoirs (42 millions of cubic meters), springs and surface waters (55 millions of cubic meters) and groundwater (151 millions of cubic meters). Aqueducts are served by different water sources linked between each other, enabling a continuous drinking water supply through a robust water system, allowing an adequate service even in case of drought conditions. Water distri- bution networks are usually managed through district metering which enables leakage reductions, by implementing pressure management and active leakage control Sewerage IREN through IRETI manages urban drainage systems and wastewater treat- ment plants over the same territories through several asset, which includes 9,100 km of sewerage networks, most of which is separated in typology and the rest combined. Sewers management is aimed at minimizing fooding and pol- lution events. The company gained experiences in renewing and rehabilitating municipal waste water system, (including collection, modelling, design of reha- bilitation and wastewater disposal system), optimizing the entire collection sys- tem and wastewater treatment plants to eliminate water pollution and increase reliability of the system, minimizing capital expenditure Wastewater IREN through IRETI manages wastewater treatment plants including 1,076 treatment depuration systems serving more than 2,400,000 people. WWTPs are man- aged by assuring relevant energy savings through controllers aimed at opti- mizing oxidation processes and reducing volumes of sludge. Proper design of upgrading works is carried out considering the drainage system and the WWTP as a whole entity. Innovative treatments are deployed in the framework of pilot projects aimed at demonstrating and validating relevant technological improvements Innovation Relevant innovations and technological nucleus have been implemented and and R&D deployed in recent years overcoming relevant technical gaps, solving managerial problems and improving management effciency. Further actions have been carried out in the framework of technology scouting or research projects, which include proof of concept and pilot implementation. R&D undertakings are also carried out in the framework of strong partnership and collaboration activities with national and international entities such as: Water Supply and Sanitation Technology Platform, Innovative Technologies for Environmental Control and Sustainable Development Regional Innovation Centre (Ticass), Water Research Foundation, KWR Watercycle Research Institute, Upper Health Institute, CNR IRSA, IWA, University of Genoa, University of Palermo, University of Eastern Piedmont, La Sapienza University of Rome, Polytechnic University of Turin, University of Trento, University of Essex, University of Exeter (continued) 348 Appendix: Companies’ Profles

(continued) Strategy and plans Strategy and Main plans for the future: plans – Commitment to strategic and sustainable investments with a strong focus on water effciency and wastewater – Improvement of Project Management systems – Integrated design of network and plants: • Clearly identifed actions to further increase system effciency both for the network and for the depurators. Network: (i) network segmentation and more effective search for leakages to improve water saving, (ii) energy effciency initiatives and (iii) quality control • Depurators: (i) introduction of more automation and remote controls, (ii) energy effciency initiatives, (iii) reduction of the sludge produced and (iv) other initiatives to improve system effciency Focus on Main investments done in the last 5 years: investments – Recco water treatment plant – Santa Margherita water treatment plant Main investments foreseen for the next 5 years: – About 122 € mil investment over period 2017–2021 on treatment plant only in Genova area. In particular investment on Central Area water treatment plant

MM S.p.A. General information Group Electricity Gas Water Waste Other businesses ü Engineering, public housing, asset management Water Water supply businesses Wastewater Water Transmission Distribution Sewerage capture and water treatment purifcation ü ü ü ü ü Technical Distributed Water Water supply Sewerage data volumes customers networks (km) (mln mc) (mln) (km) 2.0 mln of users, of which 1.4 mln 224 2,229 1,561 resident inhabitants Geographical Lombardy—Mainly City of Milan, with some minor activities in neighboring presence municipalities (i.e. Corsico, Baranzate, Buccinasco, Peschiera Borromeo, San Donato Milanese and Rho Fiera area). City of Milan total territorial area is almost equal to 180 km2 Ownership 100% of MM shares are owned by the Municipality of Milan (MM is and structure In-House company). MM S.p.A. owns 100% of its subsidiaries Metro Engineering S.r.l. and Napoli Metro Engineering S.r.l. (continued) Appendix: Companies’ Profles 349

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General information Key fnancial (EUR million) 2013 2014 2015 2016 2017 data of (ITA (ITA (IFRS) (IFRS) (exp) the water GAAP) GAAP) business Revenues 131.0 137.8 170.0 170.0 207.7 EBITDA 23.0 33.6 38.0 43.7 39.6 Net proft 4.5 7.8 18.7 18.1 14.9 Net Debt 78.0 86.4 94.6 98.0 129.8 Investments 36.1 35.1 23.9 22.4 62.2 ROE 24% 43% 31% 23% 13% ROS 6% 12% 18% 19% 13% History of MM, established in 1955, has designed and supervised the construction of all the company the Milan Metro lines. The company is fully owned by the Municipality of Milan. MM progressively extended its activity in the infrastructure engineer- ing feld, i.e. road works, parking areas, public buildings, as well as hydraulic engineering, urban renewal and district transport plans. Such engineering ser- vices activities are carried out mostly on behalf of the Municipality of Milan. In 2003, the Milan City Council assigned to the company the management of the integrated water service for the City of Milan, to improve the quality of water-related services and to implement adequate maintenance and investment plans for the drinking water and sewer systems. The current in-house provid- ing scheme started in 2007 and, according to ATO Plan, its term will be in 2037. Since 2014, MM is also managing the public housing properties of the Municipality of Milan, about 39,000 units of which 29,000 are dwellings. The current in-house providing scheme for this activity is expected to last until 2045 Water business Water supply MM manages the integrated water services for Milan, for about 50,000 customer points, serving a resident population of about 1.4 million inhabitants and a non- resident population (including residents, commuters and visitors) of about 0.6–0.7 million inhabitants equivalent to a total population of about 2.0 million people. Water supply is guaranteed by a system of 450 wells pumping groundwater to tanks. The extraction of water from wells reached approximately 220–230 mil- lion cubic metres in recent years. Raw water is then treated in order to be safe for drinking and then 29 pumping stations feed the system for a total fnal sup- ply to users of around 180/190 million cubic metres per year. The total length of the distribution network is approximately 2,226 km, which was originally com- pletely interconnected. Water pipes are mainly made of steel, cast iron and ductile iron, with diameters ranging between 50 mm and 1,200 mm. The average supply pressure is between 2.5 bar in the northern part of the system and six bar in the southern one, due to a difference in elevation between the north and south areas of Milan. Before being distributed to customers and fnal users, water is subjected to specifc treatment in order to reduce or eliminate compounds and substances exceeding the limits permitted under applicable law. At each of the pumping sta- tions raw water from wells is treated in function of the specifc-site characteristics and disinfected in order to eliminate viruses and bacteria (continued) 350 Appendix: Companies’ Profles

(continued) Water business Sewerage MM is responsible of the sewage management for the City of Milan, which con- sists in the collection of industrial and household wastewater and management of urban tunneled rivers and channels. Currently, the sewer system has a total pipeline length of 1,561 km, with a service coverage exceeding 98 percent; the remaining parts are small, isolated portions of the municipal jurisdiction outside the developed center and some industries equipped with independent wastewater disposal systems. It currently performs sewage services also for the Municipality of Settimo Milanese MM sewage network covers 100% of the area of Milan. The wastewater collected by MM’s sewage network service can be classifed as follows: – Domestic or non-industrial waste water produced by households and small offces and containing both organic substances and substances derived from products used for domestic cleaning and personal hygiene (sometimes referred to as black waste water) – industrial waste water, released during production processes and typically containing a high concentration of pollutants; and – environmental waste water produced by climatic conditions (i.e. rainwater, foods etc.) collected from road drains and gutters (sometimes referred to as white waste water). MM does not manage special or dangerous waste water deriving from industrial activities. Currently, the sewer system collects mixed sewage (a combination of black and white waste water), conveying in 2016 approximately 260 million cubic metres to 3 purifcation plants, 2 of which are located in Milan. Due to the low level of industrial activities performed in Milan with respect to the total city economy, the volume of industrial waste water is low (about 2.5% of total sewage volumes) Wastewater MM purifcation service includes the construction, management and maintenance treatment operations related to urban wastewater (domestic and industrial) treatment plants connected to sewage networks, in order to restore treated water quality to the appropriate level for the fnal user; the purifcation activity includes sludge treat- ment. Milan’s integrated water system network is currently served by the follow- ing three wastewater purifcation plants: – San Rocco Plant, located in the southern part of Milan, directly managed by MM since December 2014, serving the western part of Milan, covering a city area of 101.3 km2; in 2016 it treated a total amount of about 94 million cubic metres of waste water – Nosedo Plant, located in the southern part of Milan, which is managed by Milano Depur, a wholesale operator, serving the central part of Milan, covering a city area of 69 km2; in 2016 it treated a total amount of 144 million cubic metres of waste water – Peschiera Borromeo Plant, located in the Municipality of Peschiera Borromeo and partially dedicated to the Milan network, which is managed by Amiacque, serving the eastern part of the city, covering a city area of 22.3 km2. (continued) Appendix: Companies’ Profles 351

(continued) Water business Wastewater MM has the overall responsibility of ensuring the purifcation service for Milan. treatment Thus, it supervises purifcation activities for all the three plants with specifc quality control programs. Each of the purifcation plants located in Milan (San Rocco and Nosedo) have a treatment capacity higher than 1 million equivalent population. The Peschiera Borromeo plant line serves about 250,000 equivalent inhabitants. The dimensions and the technological complexity of San Rocco and Nosedo are high when compared to the national average. Both these plants adopt technologies among the best available in the industry (i.e.: moving bed bioflm reactor; ultraviolet rays or peracetic acid disinfection, sludge drying). The purifcation plants are structured according to a three-phase process: preliminary mechanic treatment; biological treatment; tertiary treatment. MM’s purifcation service is subject to stringent fnal drainage quality levels, as the treated water resulting from the purifcation plants is used for irrigation purposes. In 2016, water used for irrigation purposes amounted to a total of 86 million cubic metres for the San Rocco and Nosedo plants Innovation The main innovation and R&D areas for MM in the integrated water service sector are: and R&D –Effciency in water use: pipe reconditioning through no-dig e relining technologies; smart metering installation; Condition assessment audit for distribution networks; Enhancement of supervision and remote control systems; Continuous monitoring of distributed water quality; Enhancement of pre-treatment purifcation phases –Environmental protection: Condition assessment audit for sewage networks; evolution of UV disinfection and enhancement of tertiary fltration system for purifcation plant –Energy saving: Aqueduct plant management optimization; Installation of cogeneration plants; innovation of existing network valves and electric pumps –IT innovation: GIS and WebGIS evolution also through mobile technologies Strategy and plans Strategy and Main objectives pursued in the last years: plans – Extension from 2027 to 2037 of ATO Plan in order to improve the investment plan for the City of Milan – Insourcing of San Rocco wastewater purifcation plant, in order to increase MM operating effciency and IWS value chain positioning – Implementation of a fnancial strategy aimed at covering the fnancial needs generated by IWS Investment Plan up to 2037: issuance of a 100 mln € Notes listed on Irish Stock Exchange and signing of a 70 mln € fnancial facility with EIB (EFSI scheme, Juncker Plan) – Organizational optimization of IWS Division and IWS staff services – IT development, both in the felds of Customer Relationship Management and Asset Management. Main plans for the future: –Aqueduct: conserving network effciency level, optimizing quality and quan- tity of water potable resources, perfection of distribution level for extracted and distributed water, safety and video surveillance –Sewage: Conserving network effciency level; service enhancement and over- loads reduction, network hydraulic effciency optimization –Wastewater purifcation: improvement of sludge recovery and treatment, energy saving and revamping. General intervention principles for each integrated water service phase: Innovation and smart water projects; energy saving and environmental sustain- ability; low urban impact interventions; IT enhancement (continued) 352 Appendix: Companies’ Profles

(continued) Strategy and plans Focus on MM investments are focused on maintenance and renovation rather than extension, investments due to the already existing high coverage level of the water services. Main investments done in the last 5 years (2012–2016 period): –Aqueduct: realization and reconditioning of DN 800-1200 pipes in various parts of the city; no-dig and relining renovations of deteriorate pipes; remote control valves installation; AMR smart meters installation; wells recovery interventions; restoration of aqueduct plants (“centrali”); installation of CAG flters and activated charcoal systems – Sewage: static consolidation and realization of several sewer collection pipes; interventions on sewage lifting basins; extraordinary maintenance of sewage network root canals for the city of Milan; new sewer connections to Nosedo Plant – Purifcation: restructuring and coverage of sewer network pipe emissary to Nosedo; intervention on San Rocco purifcation plant (frst-time after insourcing); intervention on treatment sedimentation basins Main investments foreseen for the next 5 years (2017–2021 period): – Aqueduct: no-dig renovation and substitution of deteriorate pipes; AMR smart meters installation; electric, mechanical and building restoration of aqueduct plants; denitrifcation and chromium VI treatment plants installa- tions; activated charcoal systems installation – Sewage: sewage network development, extension and adaptation; extraordi- nary maintenance of sewage network root canals for the city of Milan; sewage network hydraulic functionality effciency and safeguard interventions – Purifcation : interventions for the preservation of purifcation parameters status; operational and exercise effciency interventions; energy effciency interventions on San Rocco wastewater treatment plant; developing of sludge dehydration machines

Società Metropolitana Acque Torino S.p.A. General information Group Electricity Gas Water Waste Other businesses ü Water Water supply businesses Transmission Wastewater Water Sewerage and water Distribution treatment production purifcation ü ü ü ü ü Technical Distributed Water Water supply Sewerage data volumes customers networks (km) (mln mc) (mln) (km) 250 2.29 12,121 9,144 Geographical Currently, Società Metropolitana Acque Torino (SMAT) manages the presence Integrated Water Service in 292 municipalities of the ATO3 (Turin area), equal to 95.42% of total municipalities of the area, which has 2,260,072 inhabit- ants. Moreover, SMAT manages water services for other 400,000 inhabitants, through its subsidiaries present in other 61 municipalities (continued) Appendix: Companies’ Profles 353

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General information Ownership 100% public owned company. The majority of the shares (about 60%) are structure owned by the Municipality of Turin Key fnancial (EUR million) 2013 2014 2015 2016 2017 (exp) data of ITA ITA IAS/ IAS/ the water GAAP GAAP IFRS IFRS business Revenues 355 310 412 411 444 MOL 152 116 133 147 141 Net proft 43 43 55 62 61 Net Debt 263 241 262 242 236 − − − − − Investments 71 61 97 76 99 ROE 9.99% 9.23% 11.34% 11.52% 10.53% ROI 7.08% 6.71% 7.44% 8.31% 6.82% Water business Water supply Most of the water taken from the environment comes from underground sources (about 82%); the rest comes from surface water bodies. More than 67% of the distributed water comes from wells that draw to one or more underground aqui- fers, while the remaining 15% is extracted from the sources of Pian della Mussa and Sangano. SMAT, frst company in Italy to use surface water, has built a plant that allows to purify up to 2,500 liters per second of water taken from the Po River, equal to 18% of water entering the net. With its distribution network, SMAT delivers an average daily fow rate of 7,000 liters, on the day of maximum consumption, for the needs of the population Sewerage SMAT collects urban waste water through over 8,800 km of sewage networks and controls industrial sewage discharges using also video inspection systems with automatic robot samplers Wastewater The constant operation of 411 small, medium and large purifcation plants allows treatment for the purifcation of more than 343 million cubic meters of wastewater every year. The central wastewater treatment plant, built and managed by SMAT for about 3 million inhabitants in Castiglione Torinese, is the largest chemical- physical-biological treatment plant in Italy and represents a technological benchmark for the high standards of quality standards achieved Innovation Among the other R&D projects, the main are: and R&D –DEMOSOFC: the project involves the installation of the frst industrial-scale European plant to produce electricity from biogas produced during the process of wastewater treatment, using solid oxide fuel cells (SOFC) with the result of getting clean energy without the emission of traditionally used internal com- bustion engines. The fuel cell system is an emerging alternative to internal combustion engines for cogeneration of electricity and heat from fossil fuels or renewable energy (biogas) –BIOWYSE: the project develops a system for controlling water and the bio- contamination, where water is present in the form of condensation. The prototype, intended for the use on the International Space station, would allow the astronauts to monitor in real time the microbiological quality of water for human consumption (continued) 354 Appendix: Companies’ Profles

(continued) Strategy and plans Strategy and Main objectives pursued in the last years: plans – Service rationalization and aggregation of the subsidiaries Main plans for the future: –Strategic objectives: service rationalization and aggregation; quality improve- ment; staff training; staff requalifcation; Susa Valley Aqueduct conduction; zero bureaucracy; water emergency and climate changes study –Organizational objectives: reduction of internal bureaucracy; optimization of staff availability; redefnition of help desks; prevention and protection service; investment system; employment development and assisted migration towards retirement; smart working; warehouses management system –Process improvement/technological innovation: fre hydrants and static meters appraisal; implementation of SMAT cartography and data transparency; relation with the User and expansion of the listening sources; reduction of parasite waters in sewers; advanced dispatch services for billing; smart cities and Smart metering; increase of SMAT Water Points –Management: process analysis and streamlining of decision-making contexts; debt collection effcacy; management of privately sewers within the City of Turin; geolocation of the company feet; asset management; Lean Six Sigma; work force management (WFM) –Structural objectives: foreign cooperation activities; bills and invoices: innovative methods of payment; check for defciencies in water distribution; international cooperation; electronic invoicing; quarterly billing; metrological control; reduction of losses in the water network; integrated remote command and control system Focus on Main investments done in the last 5 years: investments –Susa Valley Aqueduct. Strategic work which will serve 27 Municipalities of the Susa Valley for 180,000 inhabitants (between resident and non resident population) through over 85 km of pipelines that will deliver 16 million cubic- meters/year of high-quality drinking water. The aqueduct will be equipped with three hydroelectric plants that will exploit the differential elevation between the dam of Rochemolles and the bottom valley network producing electricity for the aqueduct management. Due to the auction in the new investment plan the cost of the work has been redefned in € 105 million (forecast of € 149 million) –ATO3: branch acquisition of SAP S.p.A. On April 15th 2015 the Board of Directors of Acque Potabili S.p.A. approved the transfer of the branch of “Ramo ATO3 Torinese” in favour of SMAT and IAG. The value of the ­transfer ­for each branch is approximately € 32.9 million for the management of 31 Municipalities for over 261,000 inhabitants Main investments foreseen for the next 5 years: –Median Sewer. The new Median Sewer will double the existing structure and also collect the rain water most of the city of Turin and will be conveyed to the waste-water treatment plant in Castiglione Torinese (Turin); the work is worth 166 M€ and implies the use of very advanced technologies for operations in gallery –Po Plant. The project is to refurbish the current drinking water treatment plant for the City of Turin (over 2.5 cu.m/sec) which derives the raw water from the river Po—one of the largest in Italy and Europe. The investment is worth 97 M€ –Orco Valley Aqueduct. The aqueduct will deliver water to 40 Municipalities through a network of 52 km of mains to meet water needs of more than 100,000 inhabitants. The construction of the aqueduct and potabilization plant is worth 153 M€ Appendix: Companies’ Profles 355 Veritas S.p.A. General information Core Electricity Gas plant Water Waste Other business ü ü ü Water Water supply business Transmission Wastewater Water Sewerage and water Distribution treatment capture purifcation ü ü ü ü ü Technical Distributed Water Water supply Sewerage data volumes customers networks (km) (mln mc) (mln) (km) 80 delivered 0.4 5,700 3,100 Geographical Veritas guarantees the integrated water service in 29 Municipalities within the presence metropolitan area of Venice and in 7 Municipalities in the province of Treviso. Therefore, Veritas serves all the 36 Municipalities in the Venice Lagoon Basin Ownership Veritas is fully owned by 51 Municipalities: 44 Municipalities belong to the structure entire metropolitan area of Venice and 7 Municipalities belong to the province of Treviso. Municipality of Venice owns the majority of shares Key fnancial (EUR million) 2013 2014 2015 2016 2017 (exp) data of Revenues 98.60 124.11 107.26 106.77 104.88 the water EBITDA 42.15 65.02 46.93 45.57 43.61 business Net proft 13.41 29.70 13.45 12.60 8.39 (*consoli- Net Debt* 181.7 190.7 198.4 176.2 n.a. dated fnan- Investments 13.77 12.60 12.83 14.76 15.69 cial data of the Group) ROE n.a. n.a. n.a. n.a. n.a. ROS 18.40% 27.96% 19.41% 16.64% 13.75% Company Veritas is the result of the merger of two historic companies operating in the profle Municipality of Venice: Aspiv (a company established in 1977 to manage the Venice aqueduct) and Amav (which since 1969 has been managing territorial and environmental health services). In 2001, the two companies founded Vesta SpA (Venice environmental and territorial services). Veritas was founded in July 2007 from the merger by incorporation of Vesta SpA, Acm SpA (Riviera del Brenta and Miranese), Asp SpA (Chioggia) and Spim (Mogliano). In the subsequent years, Veritas underwent numerous mergers with other pub- lic companies such as: Cavarzere Ambiente S.r.l (2009), Arti SpA (2010), Mogliano Ambiente (2011), Veneziana di navigazione SpA (2014), Sls (2015), Data Rec and Elios (2016), Alisea SpA and Asi SpA (2017). These actions consolidated Veritas’ activities in environmental services and in the integrated water service, according to the regulatory guidelines, which required a change of scope in public services (continued) 356 Appendix: Companies’ Profles

(continued) Water business Water supply 5,700 km of aqueduct networks deliver about 95 million cubic meters of drink- ing water, 85% of which originate from an historical network of wells up to 300 m deep and the remaining 15% from the surface waters of the Adige, Livenza and Sile Rivers. This constitutes a particularly effcient network that allows the company to face seasonal peaks, even in drought conditions. The captured water, which is then conveyed into the aqueduct network, under- goes different treatments to meet the potability levels established by law. Ground waters are subjected to lighter treatments, as a precautionary measure, given natural phenomena occurring during soil fltration and into the deeper layers of the subsoil. Typically, they are simply subjected to disinfection treatment to ensure potability up to the service delivery point. Surface waters are subjected to complete potability treatment, due to their characteristics and their vulnera- bility to accidental pollution. Treatments carried out include: pre-treatments for pH correction with carbon dioxide, primary pre-oxidation/oxidation with chlo- rine dioxide, clarifocculation with aluminum polychloride, sedimentation with static settlers, intermediate chlorination by hypochlorite, gravity-based fltration by sand and refning treatment by fltration with granular active carbons under pressure, and fnally disinfection with hypochlorite or chlorine dioxide. The water is also closely monitored on the basis of continuous and planned inspections that call for the collection of samples during the various stages of the water cycle: drinkable water from the source to the distribution network and supply to the users; used water from the moment it enters the treatment plants to the different stages of treatment until it exits the plant. The lab carries about 200,000 analyses on nearly 17,000 samples meaning an average of over 750 analyses per day. In addition, since 2010, Veritas also has been paying special attention to the so-called emerging pollutants (medicines, hormones, drugs, per- sonal care products, cosmetics, disinfectants, and detergents). Since 2015 it has been regularly testing for Pfas (compounds widely used but highly persistent in the environment) obtaining always negative results, but despite the absence of these pollutants, constant monitoring is maintained active Sewerage 3,100 km of sewerage convey 85 million cubic meters of wastewater into 13 major treatment plants (Campalto, Caorle, Cavallino, Chioggia, Eraclea, Fusina, Jesolo, Malamocco, Morgano, Preganziol, Quinto di Treviso, San Donà di Piave and Zero Branco) for over 830,000 inhabitants and through many small plants located within the historic centre of Venice, serving the various city areas Wastewater Veritas manages 13 major treatment plants (Campalto, Caorle, Cavallino, Chioggia, treatment Eraclea, Fusina, Jesolo, Malamocco, Morgano, Preganziol, Quinto di Treviso, San Donà di Piave and Zero Branco) that treat wastewaters from the Mestre area and 17 municipalities of the Mira, Mogliano Veneto and San Donà di Piave area with 830,000 inhabitants served and many small plants located within the historical downtown of Venice serving the various city areas. (continued) Appendix: Companies’ Profles 357

(continued) Water business Wastewater At the wastewater treatment plants, the collected wastewater is adequately treated treatment before being re-used or reintroduced into the environment within the thresholds established by environmental laws. At the purifers, a biological treatment is ­carried out on the basis of activated sludges with suspended biomass and succes- sive stages of pre-nitrifcation, nitrifcation, sedimentation and fnal disinfection of the effuent by using peracetic acid or ultraviolet lights. The entire treatment process is continuously monitored by the Company’s operators through remote control and through on-line analyzers and daily lab tests that allow the various purifcation stages to be checked. The Fusina Plant hosts the PIF plant (Integrated Fusina Project) managed by Veritas and owned by the Region. This Plant is used to refne the effuent already purifed by the Fusina plant (400,000 equiva- lent inhabitants) and subsequently returns the water for industrial re-use to users located in the Porto Marghera area. It is possible to produce up to 30 million mc per year of reused water Innovation The system is undergoing a gradual infrastructural restoration and integration and R&D between the infrastructures of the basin served by Veritas and the regional ones owned by Veneto Acque and other operators; this integration is mainly needed to stop the supply of the Chioggia area from the Adige River. Thanks to the analytical support of its own analysis lab, Veritas constantly ­monitors both chemically and biologically surface and deep drain waters, water for human consumption, sludges and soils. Veritas’ lab is accredited according to UNI EN ISO 17025: 2005 since 1998 and it includes a chemistry department equipped with modern and highly automated equipment and a microbiology department featuring remarkable technical and diagnostic capabilities that can deliver more than 20,000 test reports, meaning the equivalent of 300,000 analyses. ­The latest acquisition of a high-resolution mass spectrometer with FT-MS hybrid quadrupoles based on Orbitrap technology, allows Veritas to perform screening of phytopharmaceuticals and pesticides (more than 250 molecules). The lab activities include: participation to a variety of European projects, such as Drinkadria, aimed at studying the sustainable and integrated management of drinking water in the Adriatic countries; participation to most of the work subgroups of the permanent Subcommittee of the Standing Committee for Water Research part of the Ministry of Health for the implementation and validation of analysis methods and participa- tion to the Unichim and Amga work teams for the validation and implementation of biological methods. As part of the Porto Marghera reorganization agreement between the Municipality of Venice and the Ministry of the Environment, Veritas is imple- menting the Green propulsion laboratory, a technology platform for the experi- mentation of advanced technologies in the energy and environmental sector. In particular, the Superfuid’s platform will develop a supercritical water-based

oxidation system, based on super-compressed CO2 ionic liquid technology (for the treatment of industrial and civil wastewater with high organic load, landfll leachates, bilge waters, contaminated ground water tables, biological sludges and contaminated sediments) (continued) 358 Appendix: Companies’ Profles

(continued) Strategy and plans Strategy and Implementation of the scope plan, adaptation to the AEEGSI legislation, service plans guarantee and user satisfaction, reduction of leakages through a plan of sched- uled interventions over time, expansion of sewerage infrastructures, and purif- cation plant development Focus on Main investments in the last 5 years: investments – expansion of the aqueduct networks to face the health and environmental emergency resulting from the detection of mercury pollution in wells of pri- vate users, unconnected to the public infrastructure – civil works of the new Tronchetto aqueduct in Venice through which the water supply management system of the historical downtown of Venice and its islands will be renovated and modifed – Venice-Chioggia lagoon piping to overcome the supply and purifcation issues in the Chioggia area linked to the intrusion of the saline wedge in the Adige River during drought periods – expansion of the sewerage networks in the areas of Venice, Riviera del Brenta-Miranese and Chioggia, in compliance with European Community directives – strengthening of the purifcation plants of Fusina and Campalto, with the implementation of the IV line of treatment and energy effciency interventions of the nitrifcation/denitrifcation sections – 1st section of the Lido-Fusina connecting pipeline for the connection of the two purifcation treatment plants and conveying of the wastewaters to Fusina for treatment Main plans for the future: –Infrastructure interventions: protection of the primary water sources, replacement and strengthening of the existing aqueduct service, both on the pipelines and fxed water works as well as on lifting and other plants; expansion and completion of the existing sewerage network, in particular the sewerage system of the Riviera del Brenta and Miranese areas; completion of the hydro- power plant and tank of via Torino (food prevention); completion of the Fusina Integrated Project for the use of reused water already produced (more than 25 million cubic meters); effciency improvement of the treatment and purifcation plants; operational synergies for the treatment of special wastewaters. These interventions require investments of over 290 M€ (of which 120 million were already implemented) –User-oriented interventions: a web-based system for collecting automated readings; expansion of the call center service for fault reporting; new service standards imposed by AEEGSI; updating of the IT system for an effcient management of complaints, connections and contracts management processes