Consolidated condensed interim financial statements June 30, 2008 WorldReginfo - d8328e37-fc3d-42b5-973b-29794d0cc981 WorldReginfo - d8328e37-fc3d-42b5-973b-29794d0cc981 Consolidated condensed interim financial statements – June 30, 2008 Contents 3 The A2A Group at June 30, 2008 4 Key figures of the A2A Group 6 A2A S.p.A. on the Stock Exchange 8 Corporate bodies 10 Significant events during the period 0.1 Directors’ report on operations 19 Summary of results, assets and liabilities and financial position of the A2A Group 25 Significant events after June 30, 2008 27 Outlook for operations 0.2 Consolidated condensed interim financial statements 30 Consolidated balance sheet 32 Consolidated income statement 34 Consolidated cash flows statement 36 Statement of changes in Group shareholders’ equity 38 Consolidated balance sheet pursuant to CONSOB Resolution no. 15519 of July 27, 2006 40 Consolidated income statement pursuant to CONSOB Resolution no. 15519 of July 27, 2006 0.3 Notes to the consolidated condensed interim financial statements 43 General information on A2A S.p.A. 45 The strategic value of the aggregation 47 The accounting effects of the AEM/AMSA and AEM/ASM mergers 49 Consolidated condensed interim financial statements 50 Financial statements 51 Basis of preparation 52 Changes in accounting standards and accounting policies 54 Scope of consolidation 56 Consolidation policies and procedures 67 Seasonal nature of the business 1 WorldReginfo - d8328e37-fc3d-42b5-973b-29794d0cc981 Consolidated condensed interim financial statements – June 30, 2008 Contents 69 A2A Group – Areas of activity 70 Results sector by sector 72 Notes to the balance sheet items 91 Net debt 92 Notes to the statement of income items 101 Earnings per share 102 Notes on related party transactions 106 Significant non-recurring, atypical and/or unusual transactions 109 Guarantees and commitments with third parties 111 Other information 0.4 Attachments to the Consolidated condensed interim financial statements 140 1. Statement of changes in property, plant and equipment 142 2. Statement of changes in intangible assets 144 3. List of companies included in the consolidated financial statements 146 4. List of investments valued at equity 148 5. List of investments of the Ecodeco Group 150 6. List of financial assets available for sale 152 7. List of relevant investments pursuant to article 128 of CONSOB resolution 11971 of May 14, 1999 0.5 Analysis of the main sectors of activity 157 Results sector by sector 159 National energy scenario 160 Energy Sector 170 Heat and Services Sector 173 Environment Sector 178 Networks Sector 187 Other Services and Corporate 189 Human resources 190 Research and the environment 0.6 Certification of the consolidated condensed interim financial statements pursuant to article 154-bis, para. 5 of Legislative Decree 58/98 197 Certification of the consolidated condensed interim financial statements pursuant to article 154-bis, para. 5 of Legislative Decree 58/98 199 0.7 Independent Auditors’ report This is a translation of the Italian original “Bilancio semestrale consolidato abbreviato 2008” and has been prepared solely for the convenience of international readers. In the event of any ambiguity the Italian text will prevail. The Italian original is available on the website www.a2a.eu. 2 WorldReginfo - d8328e37-fc3d-42b5-973b-29794d0cc981 Consolidated condensed interim financial statements – June 30, 2008 The A2A Group at June 30, 2008 A2A Spa 51.00% 100.00% 99.99% 100.00% 100.00% 99.99% 100.00% 20.00% Delmi Aem Trading Aem Energia Aem Calore & Amsa Aem Elettricità Asm Elettricità Acsm Servizi 50.00% 100.00% 100.00% 100.00% 100.00% 99.99% 100.00% 24.99% Transalpina di ASM Energy Asmea Asm Calore & Amsa 2 Aem Gas Asm Reti Agam Monza Energia Servizi 61.28% 70.00% 100.00% 51.00% 100.00% 99.98% 48.86% 14.48% Edison (1) Plurigas Tidonenergie Asm Servizi Amsa 3 Bas SII ASVT (3) Trentino Servizi 6.44% 100.00% 33.33% 50.00% 94.00% 100.00% 91.60% 23.53% Atel Holding AG COGAS Lumenergia Asm Novara Ecodeco (2) Retrasm Retragas Metroweb 20.00% 89.84% 50.00% 49.00% 100.00% 74.50% 32.52% 100.00% Edipower Abruzzo Energia Ergon Energia Malpensa Fertilvita Camuna Società Servizi Selene (5) Energia Energia Valdisotto 20.00% 50.00% 100.00% 60.00% 100.00% 67.00% 100.00% E.ON Ergosud Bas Omniservizi Proaris Sistema Seasm Itradeplace Produzione (4) Ecodeco UK 80.00% 50.00% 99.97% 100.00% Ostros Energia Metamer Aprica Bas.Com 67.00% 100.00% 100.00% 49.00% Energen Aem Service Bas Power e-Utile 79.98% 100.00% Montichiari Aprica Studi Ambiente 35.00% Alagaz 27.00% Zincar Areas of activity (1) The percentage of 61.28% relates to the ordinary shares owned by Transalpina di Energia (TdE). The percentage held in the share capital is 60%. Edison holds 50% Energy of Edipower. (2) The other 6% interest in Ecodeco is subject to a call and put option, respectively in Heat & Services favour and at the expense of A2A S.p.A., which can be exercised by the end of 2008 at the same conditions. Environment (3) Of which 0.38% is held through Asm Reti. (4) Formerly Endesa Italia S.p.A.. Networks (5) Note that there are call and put options on another stake in the company. Other Companies This chart shows the principal investments of the A2A Group. 3 WorldReginfo - d8328e37-fc3d-42b5-973b-29794d0cc981 Consolidated condensed interim financial statements – June 30, 2008 Key figures of the A2A Group Income statement 01 01 2008 01 01 2007 Millions of euro 06 30 2008 06 30 2007 Restated (*) Revenues 2,988 1,289 Operating costs (2,232) (973) Labour costs (229) (73) Gross profit from operations 527 243 Depreciation and amortisation, provisions and writedowns (176) (79) Profit from operations 351 164 Financial costs (71) 42 Other non-operating profits 13 – Other non-operating costs – (3) Profit before tax 293 203 Income tax expense (131) (45) Net result from non-current assets sold or held for sale – (1) Minority interests (3) (41) Group net profit for the period 159 116 Gross profit from operations/Net revenues 17.6% 18.9% (*) Figures related to the former AEM Group. Balance sheet 06 30 2008 12 31 2007 Millions of euro Restated (*) Net capital employed 7,997 5,148 Equity pertaining to the Group and minority interests 4,658 3,054 Consolidated net financial position (3,339) (2,094) Consolidated net financial position/Equity pertaining to the Group and minority interests 0.72 0.69 Consolidated net financial position/Market cap 0.46 0.43 (*) Figures related to the former AEM Group. 4 WorldReginfo - d8328e37-fc3d-42b5-973b-29794d0cc981 Consolidated condensed interim financial statements – June 30, 2008 Key figures of the A2A Group Financial position 01 01 2008 01 01 2007 Millions of euro 06 30 2008 06 30 2007 net of Restated (*) the merger effect Net cash flows from operating activities 474 523 Net cash flows absorbed by investment activities (382) (403) Free cash flow 92 120 (*) Figures related to the former AEM Group. Key figures of A2A S.p.A. 06 30 2008 12 31 2007 Restated (*) Share capital (euro) 1,629,110,744 936,024,648 Number of ordinary shares (par value 0.52 euro) 3,132,905,277 1,800,047,400 Number of treasury shares (par value 0.52 euro) 47,434,850 30,434,850 (*) Figures related to the former AEM Group. Key rates and prices 06 30 2008 06 30 2007 Average 6-month Euribor 4.706% 4.273% Average price of Brent crude (usd/bbl) 109.140 63.260 Euro/usd average exchange rate (**) 1.53 1.33 Average price of Brent crude (Euro/bbl) 71.33 47.59 (**) Source: Italian Foreign Exchange Office. 5 WorldReginfo - d8328e37-fc3d-42b5-973b-29794d0cc981 Consolidated condensed interim financial statements – June 30, 2008 A2A S.p.A. on the Stock Exchange A2A on the Stock Exchange Market capitalisation at June 30, 2008 € 7,293 m Ave. volumes in 1st half 2008 13,618,678 Market data Euro per share Average price in 1st half 2008 2.5337 High in 1st half 2008 3.096 Low in 1st half 2008 2.227 Number of shares (m) 3,133 Fonte dei dati: Bloomberg A2A forms part of the following indices S&P/MIB DJ STOXX DJ EUROSTOXX WisdomTree FTSEurofirst Ethical indices FTSE4GOOD Ethibel Sustainability Axia Ethical ECPI Ethical Index EMU 6 WorldReginfo - d8328e37-fc3d-42b5-973b-29794d0cc981 Consolidated condensed interim financial statements – June 30, 2008 A2A S.p.A.on the Stock Exchange A2A vs S&P/MIB (Prices January 1, 2008 = 100) 105 100 95 90 85 80 75 70 65 01-01-08 01-21-08 02-10-08 03-01-08 03-21-08 04-10-08 04-30-08 05-20-08 06-09-08 06-29-08 A2A SP&MIB A2A in 1st half 2008 3.5 70,000,000 3 60,000,000 2.5 50,000,000 2 40,000,000 /share € 1.5 30,000,000 Volumes 1 20,000,000 0.5 10,000,000 2 0 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Volumes Price 7 WorldReginfo - d8328e37-fc3d-42b5-973b-29794d0cc981 Consolidated condensed interim financial statements – June 30, 2008 Corporate Bodies SUPERVISORY BOARD CHAIRMAN Renzo Capra DEPUTY CHAIRMAN Alberto Sciumè DIRECTOR Adriano Bandera Tancredi Bianchi Claudio Buizza Antonio Capezzuto Dario Cassinelli Gianni Castelli Pierfrancesco Cuter Marco Miccinesi Massimo Perona Angelo Rampinelli Rota Giovanni Rizzardi Cesare Spreafico Antonio Matteo Taormina MANAGEMENT BOARD CHAIRMAN Giuliano Zuccoli DEPUTY CHAIRMAN Luigi Morgano DIRECTOR Mario Cocchi Francesco Randazzo Renato Ravanelli Simone Rondelli Paolo Rossetti Giovanni Gorno Tempini 8 WorldReginfo - d8328e37-fc3d-42b5-973b-29794d0cc981 Consolidated condensed interim financial statements – June 30, 2008 Corporate Bodies GENERAL MANAGERS CORPORATE AND MARKET AREA Renato Ravanelli TECHNICAL-OPERATIONS AREA Paolo Rossetti INDEPENDENT AUDITORS PRICEWATERHOUSECOOPERS S.P.A.