Group profile

Acea is one of Italy's major multiutility companies that has been engaging in the delivery of network-related services of general economic interest for over a century. The Company started its industrial endeavours in the area of Rome, where it still holds a leading role in the energy and water sectors, then extending its franchise across the whole country by acquiring equity interests and participating in the operational management of other local public service businesses.

The Group, which showcases a strong financial position, operates in compliance with the Corporate Social Responsibility and sustainable development principles set forth in the Code of Values across all its business areas: the energy industry (generation, distribution and sale of electricity and gas, public lighting management, energy efficiency), the integrated water service (catchment, distribution, collection and treatment of wastewater) and environmental services (treatment, energy and economic enhancement of waste).

Today the Acea Group is Italy's leading water operator in terms of inhabitants reached. Moreover, according to the latest data published by AEEGSI it ranks third in terms of distributed volumes of electricity and fourth in terms of volumes sold on the end-user energy market. With regard to the environmental area, it ranks fifth in terms of volumes of waste treated at a national level.

Acea's history

TABLE 4 -THE ACEA GROUP FIGURES (2014)

Note: Figures relating to energy generation pertain to Acea Produzione, Acea Reti e Servizi Energetici and A.R.I.A., a company wholly-owned by Acea SpA; figures relating to the water services, pertaining entirely to the Group, refer to the main water companies

Acea SpA is listed on the Electronic Stock Exchange organised and managed by Borsa Italiana. The Municipality of Rome is Acea SpA’s majority shareholder, holding 51% of its share capital. As at 31 December 2014, other significant direct or indirect equity interests were held by the Caltagirone Group (15.9%), the Suez Environnement Company SA (through Ondeo Italia SpA) (12.5%) and Norges Bank (2.0%). The rest of the market holds 18.6% of the share capital (17.4% as at 31 December 13).

Acea SpA (parent company) holds the corporate shareholdings and discharges duties pertaining to strategic policy, control and economic and financial co-ordination of the Group’s activities. It also provides management support to the operating companies by supplying executive, legal, logistical, technical, financial and administrative services. Acea SpA’s macrostructure consists of corporate functions and four business areas - Water, Networks, Energy, Environment - to which the individual companies report (see Chart 7).

Effective 1 January 2014, the application of the new accounting standards in respect of joint agreements (IFRS11) is mandatory. The new requirements have introduced changes to the method of consolidation (from proportional to shareholders' equity) and the way the results of certain interests held by Acea SpA are calculated, especially with regard to water companies operating in Tuscany, Umbria and Campania. Acea continues however to act as the industrial partner within such companies and holds the right to appoint the Chief Executive Officer.

The Group’s scope of consolidation as at 31 December 2014 included 33 companies, which were consolidated in the financial statements according to the line-by-line method (see Table 4) and additional 32 companies that were consolidated according to the shareholders' equity method, including, as mentioned earlier, water companies operating in ATOs other than those located in Lazio as well as other minor companies operating in the water, energy, environmental and related service sectors.

No significant changes were made to the scope of consolidation during the year.

CHART 4 – SHAREHOLDER STRUCTURE AT 31 DECEMBER 2014

Table 5- BASIS OF CONSOLIDATION AT 31/12/2014 (companies consolidated using the line-by-line method)