Financial Statements of ACEA S.p.A. Consolidated Financial Statements of the ACEA Group 2009 WorldReginfo - 1a8ea87f-896f-42dd-920d-4f9e81c34663 WorldReginfo - 1a8ea87f-896f-42dd-920d-4f9e81c34663 Financial Statements of ACEA S.p.A. 2009 Consolidated Financial Statements of the ACEA Group 2009 WorldReginfo - 1a8ea87f-896f-42dd-920d-4f9e81c34663 WWW.CENTENARIO.ACEA.IT Agenzia pubblicitaria: Publicis Fotografo: Luciano Viti WorldReginfo - 1a8ea87f-896f-42dd-920d-4f9e81c34663 Dal 1909 Acea e Roma fanno parte di un’unica ACEA. IL TUO MONDO storia fatta di innovazione e rispetto per il territorio. AL CENTRO DEL NOSTRO. WorldReginfo - 1a8ea87f-896f-42dd-920d-4f9e81c34663 2009 Financial Statements of ACEA S.p.A. 2009 Consolidated Financial Statements of the ACEA Group Acea SpA Registered office Piazzale Ostiense 2 – 00154 Rome Share capital 1,098,898,884 euros, fully paid-up Tax code, VAT number and Rome Companies’ Register no. 05394801004 Registered in Rome at REA no. 882486 Prepared by Planning and Finance Editorial coordination External Relations and Communication Graphic design, editing and copyediting Message Photographs Acea archives Fabio Anghelone Printed by Officine Europee Printed in April 2010 WorldReginfo - 1a8ea87f-896f-42dd-920d-4f9e81c34663 Contents Operations’ Report The ACEA Group 12 Significant events after the balance sheet date 90 Corporate bodies 14 Bonds 90 Shareholdings of Directors and Relationships between ACEA Statutory Auditors 15 and Gaz de France - Suez 90 Chairman’s statement 16 Piano della Luce (Lighting Plan) 90 New regulations for excavation ACEA Group financial highlights works 91 as at 31 December 2009 19 ACEA Ato 2 : Redundancy 91 Group operating review 22 Risks and uncertainties 91 Network Industrial Area 22 Regulatory risk 92 Energy Industrial Area 48 Legislative risk 97 Water Industrial Area 56 Strategic risk 98 Environment and Energy Industrial Operational risk 100 Area 64 Litigation risk 101 Economic and financial review 71 Operating and financial outlook 107 Results of operations 71 Financial position and cash flow 76 Shareholder resolutions 108 Other information 86 ACEA S.p.A. share price performance 86 Medium/long-term incentive plans 89 Safeguarding activities 89 CONTENTS 7 WorldReginfo - 1a8ea87f-896f-42dd-920d-4f9e81c34663 Financial Statements of ACEA S.p.A. Income statement 112 Annexes to the notes 195 1. Analysis of net debt 196 Statement of comprehensive income 112 2. Statement of movements in investments 198 Balance sheet - Assets 113 3. List of significant investments in subsidiaries, associates Balance sheet - Liabilities 114 and other companies 200 4. Related party transactions Cash flow statement 115 pursuant to CONSOB Resolution 15519 of 27 July 2006 204 Statement of changes in shareholders’ equity 116 5. Non-recurring material transactions pursuant to CONSOB Resolution Notes to the financial statement 15519 of 27 July 2006 210 Form and structure of the financial 6. Positions or transactions deriving statements for the year ended from unusual and/or exceptional 31 December 2009 118 transactions 211 Notes to the income statement 132 7. Segment information (IAS 14) 212 Notes to the balance sheet 142 Report of the Board of Statutory Related party transactions 173 Auditors 215 Update on major disputes and litigation 176 Independent auditors’ report 252 Additional disclosures on Attestation of the separated financial instruments and risk financial statements pursuant management policies 186 to art. 154 of Legislative Decree Commitments and contingencies 190 58/98 254 8 CONTENTS WorldReginfo - 1a8ea87f-896f-42dd-920d-4f9e81c34663 Consolidated Financial Statements Consolidated income statement 258 Related party transactions 372 Update on major disputes Statement of consolidated and litigation 376 comprehensive income 259 Additional disclosures on Consolidated balance sheet - financial instruments and risk Assets 260 management policies 388 Commitments and contingencies 403 Consolidated balance sheet - Liabilities 261 Annexes 409 1. List of consolidated companies 410 Consolidated cash flow statement 262 2. Reconciliation of shareholders’ Statement of changes in equity and net profit for the year consolidated shareholders’ equity 263 ended 31 December 2009 in the consolidated and separate Notes to the financial statements financial statements 412 Basis of preparation 264 3. Remuneration of Directors, Statutory Auditors and Key Accounting standards Managers 413 and policies 265 4. Information provided Accounting standards, revisions, pursuant to CONSOB Ruling interpretations and improvements 6064293 414 applied from 1 January 2009 275 Accounting standards, List of significant investments amendments and interpretations at 31 december 2009 applicable after the end of year (art. 120, Paragraph 4, and not adopted in advance legislative decree 58/98) 422 by the Group 278 Consolidation policies Independent auditors’ report 433 and procedures 280 Attestation of the consolidated Basis of consolidation 282 financial statements pursuant Financial highlights of companies to art. 154 of Legislative accounted for under Decree 58/98 435 proportionate consolidation 284 Segment information 286 Corporate governance report - 29 March 2010 437 Notes to the consolidated income statement 296 Notes to the consolidated balance sheet - Assets 316 Notes to the consolidated balance sheet - Liabilities 341 Service concession arrangements 356 CONTENTS 9 WorldReginfo - 1a8ea87f-896f-42dd-920d-4f9e81c34663 WorldReginfo - 1a8ea87f-896f-42dd-920d-4f9e81c34663 Operations’ Report WorldReginfo - 1a8ea87f-896f-42dd-920d-4f9e81c34663 THE ACEA CORPORATE CHAIRMAN’S FINANCIAL GROUP FINANCIAL OTHER EVENTS RISKS AND OUTLOOK GROUP BODIES STATEMENT HIGHLIGHTS OPERATING REVIEW INFORMATION AFTER UNCERTAINTIES REVIEW 31.12.2009 THE ACEA GROUP The share capital of ACEA S.p.A. as at 31 December 2009 breaks down as follows: 8% 4% 10% Municipality of Rome Market Suez 51% Pictet Funds 27% Caltagirone The above chart only shows equity investments of more than 2%, as confirmed by CONSOB data. 1 2 OPERATIONs’ RepORT WorldReginfo - 1a8ea87f-896f-42dd-920d-4f9e81c34663 As at the same date, the Group structure comprises the following principal companies: ACEA HOLDING Energy Water 100% Acea Reti e Servizi Energetici 96% Acea Ato 2 50% Acea Distribuzione 51% Ecogena 94% Acea Ato 5 Frosinone 50% Acea Distribuzione 100% Crea Gestioni 100% Acea8cento 85% Ombrone 40% Acquedotto del Fiora 59% Acea Electrabel 50% AE Produzione 69% Acque Blu Arno Basso 84% AE Trading 45% Acque 100% AE Elettricità 96% Sarnese 30% Eblacea 37% Gori 50% Tirreno Power 100% LaboratoRI 100% Tad Energia Ambiente 55% Acque Blu OPERATIONs’ RepORT 13 WorldReginfo - 1a8ea87f-896f-42dd-920d-4f9e81c34663 THE ACEA Corporate CHAIRMAN’S FINANCIAL GROUP FINANCIAL OTHER EVENTS RISKS AND OUTLOOK GROUP BODIES STATEMENT HIGHLIGHTS OPERATING REVIEW INFORMATION AFTER UNCERTAINTIES REVIEW 31.12.2009 Corporate BODIES Board of Directors Chairman Giancarlo Cremonesi Chief Executive Officer Marco Staderini 1 Directors Paolo Bassi Marco Maria Bianconi Massimo Caputi Jean Louis Chaussade Pierre Clavel 2 Luigi Pelaggi 2 Andrea Peruzy 2 Board of Statutory Auditors Chairman Maurizio Lauri Standing Auditors Roberto Pertile Francesco Lopomo Alternate Auditors Claudio Bianchi Claudio Valerio Independent Auditors Reconta Ernst & Young SpA Executive Responsible for Financial Reporting 1 Appointed by the Shareholders’ Meeting on 29 April 2009. Giovanni Barberis 2 Appointed by the Shareholders’ Meeting on 15 September 2009. 1 4 OPERATIONs’ RepORT WorldReginfo - 1a8ea87f-896f-42dd-920d-4f9e81c34663 SHAREHOLDINGS OF DIRECTORS AND STATUTORY AUDITORS AT 31.12.2009 Company invested in Shares held at Shares purchased Shares sold Shares held at 31.12.2008 31.12.2009 Directors 1) Giancarlo Cremonesi Acea SpA – – – – 2) Marco Staderini (*) Acea SpA – – – – 3) Paolo Giorgio Bassi Acea SpA – – – – 4) Marco Maria Bianconi Acea SpA – – – – 5) Pierre Clavel (**) Acea SpA – – – – 6) Jean Louis Chaussade Acea SpA – – – – 7) Luigi Pelaggi (***) Acea SpA – – – – 8) Andrea Peruzy (***) Acea SpA – – – – 9) Massimo Caputi Acea SpA – – – – Statutory Auditors 13) Maurizio Lauri Acea SpA – – – – 14) Francesco Lo Pomo Acea SpA – – – – 15) Roberto Pertile Acea SpA – – – – 16) Claudio Valerio Acea SpA 500 – – 500 17) Claudio Bianchi Acea SpA – – – – (*) Director elected on 27 March 2009 (**) Director elected on 15 September 2009 (***) Directors elected on 8 May 2009 OPERATIONs’ RepORT 15 WorldReginfo - 1a8ea87f-896f-42dd-920d-4f9e81c34663 THE ACEA CORPORATE CHAIRMAN’S FINANCIAL GROUP FINANCIAL OTHER EVENTS RISKS AND OUTLOOK GROUP BODIES STATEMENT HIGHLIGHTS OPERATING REVIEW INFORMATION AFTER UNCERTAINTIES REVIEW 31.12.2009 CHAIRMAN’s statement In the complex recession dynamic which characterises the current western economic phase, 2009 can be considered the financial year in which the financial crisis manifested its painful effects on the real economy. The strong downturn in the international, and as a consequence the domestic, economy, which in 2009 caused a reduction of about 5% in the GDP, strongly influenced the country’s productive system, specifically lea- ding to a drop in global demand for goods and services, as well as a strong reduction in energy consumption. This phenomenon, which for Acea was not as acute as for other companies working in more industrialised areas, accompanied by a chain of extraordinary and hopefully not repeatable factors, is reflected in the Group’s results, which we present here. External factors