2008-2013 a2a analyst presentation...this information was prepared by a2a and it is not to be relied...

A2A 2008F Results & 2009-2013 Plan

Milan, 17th February 2009

Conference Call

This information was prepared by A2A and it is not to be relied on by any 3rd party without A2A’s prior written consent. 2

• Company Highlights

• 2008 Strategic achievements & preliminary results

• 2009-2013 Business Plan

• Q&A

Agenda


2008: Creation of a new player withan attractive growth outlook

4,475

2,1351,812

Iride

Enìa

1,425

314 292

A2A Acea Hera IrideEnìa

Ascopiave Acegas

MARKET CAPITALIZATION (M€)*

First local utility in Italy by market

capitalization

• A2A originates from the merger among AEM, ASM and Amsa, three companies with a history of over 100 years

• A2A is an energy-focused player deeply rooted in its relevant region

• 1st Local utility in Italy by revenues, margins and market cap

*Average Market Capitalization: 14/10/2008 – 14/01/2009


• 10.8 M€ revenue

• 1.2 M€ EBITDA

• 5.3 installed GW

• 20.0 produced Twh

a) 2007 Figures; b) Edison installed power includes 50% of Edipower; c) Dolomiti Energia is the new player resulting from the merger of Trentino Servizi and Dolomiti Energia (A2A share in new player is 8%); d) market cap average 14/10/2008 – 14/01/2009, outstanding shares as of 14/01/2009

MARKET

SHAREHOLDERS

STRATEGIC PARTNERSHIPS

27.5% 27.5% 2%

MUNICIPALITY OF MILAN

MUNICIPALITY OF BERGAMO

MUNICIPALITY OF BRESCIA


• 1.6 M€ EBITDA



• 13.9 Bcm gas

DELMI

TDE

+

8%

10%

15%

10%

27%

42%

61%

50%

51%

50%

19%

50%

2%

27% 5%

5%

20%

20%

51%

10%

4%

22%

90%

50%50%


• 0.4 M€ EBITDA



Shareholders & Strategic PartnershipsStrong shareholding structure and key role in energy market

38%

HYDROS

DOLOMITIENERGY

40%

60%

49%51%


Business area breakdown 2008FSignificant presence in diversified and complementary business areas supported by a solid asset base

DISTRICT HEATING

Cogenerationplants

Networks

Heat sold

WASTE

Collection

Treatment

Disposal

NETWORKS

Water

Power networks

Gas networks

ENERGY

Generationplants

Portfolio Management

POWER/GAS sold

Networks 26%

DistrictHeating 5%

Waste 28%

Energy 41%

BUSINESS AREAS

EBITDA BREAKDOWN (2008F)

REVENUE BREAKDOWN (2008F)

Networks 9%District

Heating 4%

Waste 12%

Energy 75%

Corporate figures included pro-quota in the other business areas. Revenues don’t include intercompany


14 Hydro plants: GW 0.9

9 Thermal plants: GW 2.7

FRANCE:

•Power: Imports/Exports

•Load balancing RTE (2003)

•Powernext Day-Ahead (2004)

•Powernext continuous trading (2007)

•Powernext future (2008)

GERMANY:

•Load balancing RWE, EnBW(2006)

•EEX Day-Ahead (2006)

•EEX continuous trading (2007)

•EEX Future (2008)

AUSTRIA:

•Power: Imports/exports

•Load balancing APG (2008)

GREECE:

•Power: Imports/Exports

•Load balancing HTSO (2008)

•Operating on DESMIE (2008)

SLOVENIA:


ITALY

TRADING: consolidated activities on main power and environmental markets

RETAIL: 12 TWh power and 2 Bcm gas sales

POWER GENERATION

A2A role in core business areasStrong asset base in Italy and growing presence in Europe

RUSSIA:

•Gas imported (~1 Bcm)

30 TWhPower Portfolio

6 BcmGas Portfolio

NETHERLANDS:

•Gas imported (~2,5 Bcm)

2008 figures; * WTEs and landfills

1.3 TWhtHeat produced

1.7 Mtonn waste disposed*

SWITZERLAND:


Waste treatment plants

Cogeneration plants

Hydro plants

Thermal plants

District Heating: 850 MWtand 200 MWe installed capacity

WTE: 1.5 Mtonn/ytreatment capacity


A2A role in core business areasExtensive coverage and strong role as catalyst for consolidationin Northern Italy

ALPC

PVLO

MI

BGBS

TN

MNCR

COVA

SO

Proaris

CamunaEnergia

A2A covered areas

A2A possible expansion areas

A2A LOCAL PRESENCE ACROSS NORTHERN ITALY A2A “LOCAL” PARTNERS

Soc. Serv.Valdisotto





• Q&A

Agenda


2008 Strategic Plan on trackSolid results achieved to support future development

Industrial development in Italy and abroad

FOCUS AREAS STATUS

• Start up of Gissi (800 MW) and Turbigo (800 MW*) CCGT plants

• Acerra WTE deal closeed to manage plant (600** Kton/y)

• Gazprom Joint Venture (1 Bcm of imported gas)

• DH plants start up (2008: +60MWt; 2009: +60MWt)

• Tender awarded to A2A for the construction of waste MBT plant in Greece

• Inert-recovery plant in Brescia (30 Kton/y) fully on stream; start up of Barengo landfill (50** Kton/y)

KEY ACHIEVEMENTS

• Swap of 20% stake in E.ON Produzione (formerly Endesa Italia) with assets: Monfalcone thermal plant (900 GW) and Calabria hydro plants (600 GW). Deal closing expected in March 2009

• Acquisition of French DH & CHP player Coriance (~700 MWt) from Cofathec

• Acquisition of Varese’s multi-utility Aspem (100 Mcm gas distributed; 30 Mcm water, 100K clients in waste)

• ACSM Como–AGAM Monza merger (A2A sole industrial partner)

• Company rationalization in progress (streamlining of A2A Group through internal consolidation)

• Process re-organization nearly completed

• Information system integration ongoing

• Strong improvement in corporate governance

Energy District Heating Waste Networks

M&A deals

Integration, rationalization and synergy extraction

A2A Group* A2A’s stake: 20%

** full potential


2007 NFPproforma

3,349

Currentactivities

-659

Investment andother

408

Dividends (3)

384

2008F NFPproforma

3,482

8.5%9.2%

3.31x3.26x

+133 3,349 3,482

+561,0131,069

Group 2008F figuresIndustrial growth backed by sound financial structure

200712008F Delta

EBITDA

€M data

NFP

NFP/EBITDA

ROI(2)

(1)2007 pro-forma restated (TdE Edison not included)

(2)Capital invested as of 31/12 (whereas Invested capital = Equity + NFP)

(3) includes ASM extraordinary dividend (85 M€) related to merger with AEM

Note: not included Edipower and other JVs

2007-2008FNFP BRIDGE


Group 2008F debt structureEfficient debt structure with low weight of short term debt

INTEREST RATE STRUCTUREDEBT STRUCTURE (Dec 2008F)

Balanced and efficient debt structure

CURRENT RATING

Note: TdE/Edison not included; figures do not include fair value valuation of ex-AEM bond

12%

4%

7%

14%

36%

27%

2010

2009

>2013

2013

2012

2011

FixedVariableSwapped

42%

35%

23%

BBB+/Outlook Stable/A-2

A3 Stable Outlook

S&P

MOODY’S

€B 3.6Exp.


2008 Power portfolio and 2009 achievementsAsset base expansion to strengthen A2A’s role

NEW ASSETS CONTRIBUTION

Note: 20% of Edipower included

A2A’s 2008 GENERATION PORTFOLIO

Oil 11%

Coal 3%

CCGT 61%

Hydro 25%

GW 3.6

• Braulio

• Stazzona

• Lovero

• Grosio

• Grosotto

• Premadio

• 5 plants close to BS

• Mese

• Udine

• Tusciano

Hydroelectric plants:

GW 0.9

• Cassano d’Adda

• Ponti sul Mincio

• Chivasso

• Turbigo

• Piacenza

• Sermide

• Brindisi

• San Filippo del Mela

• Gissi

Thermoelectric plants:

GW 2.7

2007Installedcapacity

2.90.4

TurbigoCCGT

0.3 3.6

Monfalcone Coal & Oil

0.9

0.6

Gissi 2CCGT

0.4 5.4

Gissi 1CCGT


HydroCalabria


~50% increase in installed capacity

Endesa

ENERGY

GW +1.8

GW +0.6

2009


2008 District Heating portfolio and 2009 achievementsExpansion in France through Coriance acquisition

•Thermal installed capacity: ~ MWt 850

•Electric installed capacity: ~ MWe 200

•Heat sold: TWh 1.6

•EE sold: TWh 0.4

•Networks: km 7103

MI BS

BG

NO

Lamarmora

Goltara

Famagosta

Tecnocity

CentraleNord

Carnovali

Canavese(2008 start up)

NovateMilanese

Networks Heat soldCogeneration

Plants

CORIANCE ASSETS: HIGHLIGHTSA2A’s 2008 HEATING PORTFOLIO1

District heating/cooling (#)2 15

Thermal inst. cap. (GWt)2 0.5

Electric inst. cap. (MWe)2 75

Thermal Production (TWht)2 0.8

Electric Production (TWhe)2 0.3

•Consolidated presence in DH business and in power production from cogeneration plants

•Important player in generation from innovative technologies

•Opening of French market through Coriance acquisition with interesting growth and diversification opportunities for A2ANote: 1 2008 figures: pre-closing; 2 2008 pro-forma figures (relative to owned share); 3 2007 figures

DISTRICT HEATING

PARIS

CASTRESLABRUGUIERE

SALON-DE-PROVENCE

MARTIGUESMONTPELLIER

TOULOUSE

PIERRELATTE

ANDREZIEUX-BOUTHEON

VILLEURBANNE

LAVAL

LIMOGES

DIJON

LILLE

Linate-S.Giulia(2009 start up)

Novara(under construction)


2008 Waste portfolio and 2009 achievementsA2A’s leading role in waste management consolidated by Acerra’s new WTE

•Waste collected1:Mton 0.9

•Waste disposed2:Mton 1.7

•Energy produced:TWhe 1.1; TWht 0.7

Treatment DisposalCollection

MI

BS

TO

Corteolona

Castelnedolo

Cavaglià

Giussago

Lacchiarella

Filago

Comacchio

Bas Power

Brescia

Montichiari

Gerenzano

Muggiano

MI-Silla 2

MaseratiLight

BG

Villafalletto

Vespia

Barengo

Calcinato

Buffalora

ITS® (Intelligent Transfer Stations) –MBT (Mechanical Biological Treatm.)

WTE (Waste to Energy)

Landfill and biogas

Waste collection area

Other (waste treatment, glass)

PARTENOPE AMBIENTE HIGHLIGHTSA2A’s 2008 WASTE PORTFOLIO

Treat. Capacity (Kton/y) 600

Electricity production (MWe) 120

• Concession awarded to A2A to manage a new waste plant

• Contract covers management of new Acerra WTE and connected waste treatment plants in Caivano

• Well-established know-how in waste plant management leads to high profitability and no CAPEX requirements/obligations

ACERRA

(1)main municipalities; (2)WTE and landfill; (3)A2A is in charge for plants management only

ACERRA (NAPLES) NEW WTE

WASTE

EBITDA (M€) 10

CAPEX3 (M€) //

NAPLES

Cavriana, Vigevano, Castelmonte


2008 Networks portfolio and 2009 achievementsA major presence in regulated businesses

• # Clients: ~M 1.1*

• Distributed volumes: ~ TWh12.2

• Power distribution networks: ~km 15,000

• Power transmission networks: ~Km 180

• # Clients: M 1.2*

• Distributed volumes: ~Bcm 2

• Distribution networks: ~Km 8,000

• Transport networks: ~Km 400

• # Inhabitants: ~K 900*

• Distributed water: ~Mcm 90; networks: ~Km 5,000

• Purification: ~Mcm 62

• Sewage: ~Mcm 61; networks: ~Km 2,400

*2007 figures

Water Power networks Gas networks

NETWORKS

MI BS

TN

AL PCPV

LOMI

BGBS

TN

MNCR

SA

CB

CH

IS

CO COBS

BG

Focus on strong local coverage and operating efficiency





• Q&A

Agenda


2009-2013BP: A2A StrengthsDifferences vis a vis other players generate value added

First player among Italian multiutilities with both a

primary position in regulated and unregulated business and a promising potential for international

expansion

Key role in industry consolidation process continuing successful M&A track record

Thorough local coverage and longstanding

relationships with local stakeholders exploiting high quality service level

Strong focus on environment

sustainability: large

scale renewable productions; innovative

technologies toincrease energy

savings


A2A needs to cope with potential threats originating from the

crisis...

• Stock markets shock affects A2A market cap

• Funding becomes more expensiveand hard to find due to credit crunch

• Declining commodity prices

• Shrinking GDP

• Higher short-term results focus may deter investments with long term payback

2009-2013BP: Threats from economic crisisHow A2A deals with the current global financial scenario

...but its economic results are partially shielded by its own

peculiarities

• Low elasticity of demand for Commodity goods and Primary services

• Highly profitable Italian market

• Potential Cash improvement from non-strategic asset sale

• Steady debt structure. No need to access capital markets

A2A keeps investing in long-term projects to sustain its growth with an unchanged strong focus on NFP


2009-2013BP: Strategic Development Asset base strengthening throughout Business Plan

2010 2011 20122009 2013

Endesa Asset Acquisition

1,5 GW

CofathecCorianceAcquisition

670 MWt

Partnership with

Gazprom

1 Bcm/y

New grants for Water

16 Municipalities

Scandaleplant fully onstream

375 MW

Start up of DH Novara

plant

34 MWt

New MI WTE fully

onstream

400 Kton/y

Start up ofnew Corteolona

WTE

200 Kton/y

Power upgrade of BS WTE

80 Kton/y

Acerra WTE fully

onstream

600 Kton/y

DH Bovisaplant fully onstream

89 MWt

Gissi plant fully

onstream

590 MW

Start up of Monfalcone

CCGT

800 MW

Aspem Varese Acquisition

34 Municipalities

Start up of Castegnatolandfill

4Mcm

Start up of BS “slag”plant

100 Kton/y

Start up “anaerobic”

plant

140 Kton/y

MonfalconeCoal Plant Repowering

336 MW

ENERGY - EE

ENERGY - GAS

DISTRICT HEATING

NETWORKS

WASTE

• Strategic decision on Monfalcone Coal plant to be taken by 2010

• Repowering activities to be started right after


0

50

100

150

0

50

100

150

2007A 2008A 2009B 2010 2011 2012 2013

ICE BRENT ($/bbl)

ICE BRENT (€/bbl)

Coal API 2(€/tonn)

2009-2013BP: market scenario assumptionsRising BRENT and PUN prices expected over the next years

ICE Brent 1st line ($/bbl) 72.7 98.4 55.7 65.0 75.0 85.0 90.0

Forward€/$ 1.37 1.47 1.32 1.33 1.34 1.35 1.35

ICE Brent 1st line (€/bbl) 53.0 66.9 42.1 48.9 56.0 63.0 66.7

Coal API 2 (€/tonn) 88.6 146.9 84.0 90.0 100.0 110.0 110.0


2009-2013BP: EBITDA evolution EBITDA ~7% increase with limited changes in business mix

BUSINESS PLAN EBITDA (€M)

Networks 26%

DistrictHeating 5%

Waste 28%

Energy 41%

EBITDA BREAKDOWN (2008F)

EBITDA BREAKDOWN (2013)

1,069 €M

Networks 21%

District Heating 8%

Waste 28%

Energy 43%

1,350 €M

0

500

1,000

2008F

1,069

2013

1,350

946

• Strong EBITDA growth with nearly unchanged business mix and risk profile

Note: before potential sale of not strategic asset; Corporate figures included pro-quota in other business areas

PSA = Perequazione Specifica Aziendale

• Power 16%

• Gas 7%

• Water 2%

• Power 11%

• Gas 7%

• Water 3%

4.8% CAGRNon recurring items

- Waste: CIP6 72 €M

- Networks: extraord. PSA 47 €M

- Other non recurring: 4 €M

+7.4%

CAGR


Type

Development66%

Maintenance34%

2.8

Development

Networks 22%

Waste 31%

Energy 22%

District Heating23%

1.8

Other 2%

KEY INVESTMENT FACTS

2009-2013BP: Cumulated CAPEX PlanInvestments in highly profitable plants

2009-2013 OP. CUMULATED CAPEX (€B)

ENERGY

DISTRICTHEATING

WASTE

NETWORKS

• New Gissi plant

• Monfalcone CCGT plant repowering

• New plants in Milan, Brescia and Bergamo areas

• New Milan WTE plant

• New Corteolona (PV) WTE plant

• Connections for new customers (power and gas)

• New water networks

Almost 2 €B in new projects

*

*Includes Networks improvement investment

Scandale Thermal Plant investments (60M€) not included


2008F-2013 NFP BRIDGE (€M)

* includes investments, debt deriving from Endesa asset , TdE stake value increase and cash-in for divestment of not strategic assets

NFP/E: 0.7

NFP/EBITDA: 3.3

NFP/E: 0.6

NFP/EBITDA: 2.4

3,482

-4,378

2,564

1,500 3,168

NFP '08F

Cash fromcurrent activities

Investimentsand other* Dividends

NFP '13

-314 M€

2009-2013BP: 2008F-2013P NFPDeclining NFP foreseen in new Business Plan

• Steady high dividend policy over next years (at least not less than ~300 M€/year)

• Company rationalization with divestments of non-core assets

KEY FACTS


2009-2013BP: Energy highlights

2008F

34%

1%

29%

37%

5.2

2013

36%

1%

17%

46%

8.2

Wholesale

Retail

Power

Other

CAPACITY DEVELOPMENT (GW)KEY FACTS

GAS VOLUMES TRENDS (Bcm)POWER VOLUMES TRENDS (TWh)

• Power capacity development

• Expansion of trading activities

• Energy portfolio management optimization

Uses Sources

2008

3.6

2009

1.8

2010

0.1

2011

0.3

2012

0.3

2013

0.0

InstalledPower

Hydro

Traditional

CCGT

6.0

• Available: Gissi, Monfalconeand Idro Calabria

• Power reduction San Filippo

• Available: Scandale

• Retirement Monfalcone 3

• Available: MonfalconeCCGT1

• Unavailable: Monfalcone 4

• Available: Monfalcone CCGT2 start up

Uses Sources

2008F

11%

42%

11%

11%

8%

17%

22.9

2013

8%

57%

9%

10%

11%

5%

29.9

Hydro

Thermo

Other

SingleBuyer

Ipex

Wholesale

2008F

27%

10%

62%

22.9

2013

28%

21%

51%

29.9

Retail

Wholesale

Ipex

2008F

25%

2%

16%

5%

51%

5.2

2013

1%1%

80%

17%

8.2

PSV/Other

Netherlands

Russia

Other

Stock

ENERGY


2009-2013BP: Energy highlights A2A’s net position in CO2 and green certificates

ENERGY

-600

-350

-100

150

400

650

750

0

10

20

30

40

2008

663

2009

103

2010

47

2011

-129

2012

-460

2013

-421

22 16 25 28 32 35Unit (€/ton)

3.8 2.7 2.7 2.4 1.9 1.9

A2A unit benefitvs averageplant*(€/MWh)

KTons €/Ton

Unit (€/ton)

Volumes (KTons)

-700

-500

-300

-100

100

300

400

40

60

80

100

2008

237

2009

120

2010

-174

2011

-227

2012

-389

2013

-364

62 70 80 85 85 85

3.3 2.6 1.3 1.1 0.4 0.5

A2A unit benefitvs averageplant*(€/MWh)

GWh

Unit (€/MWh)

€/MWh

Unit (€/MWh)

GWh

GREEN CERTIFICATESEMISSIONS TRADING

A2A will maintain a competitive advantage in environmental costs along the whole Business Plan period

Short from 2011

Short from 2010

* based on the entire Italian production equipment


2008

1.8

2013

2.8

2008

1.2

2013

1.8

Heat pump

Coal

Natural Gas

Biomass

Oil

Electricity

Commercial

Residential

Industrial

Thermal Storage

Distr. Infr.

Centralized Heating

and Cooling Plant

2008

1.3

2013

2.3

2009-2013BP: District Heating highlights

KEY FACTS

HEAT CAPACITY AND VOLUMES

• Development of ~ 600-MW new thermal capacity

• Further expansion of new distribution networks

• Strong growth in volumes doubling 2008 heating sales by 2013

Capacity Sales

• 4th district heating player in France (‘08 REV : €63M; ’08 EBITDA : €8.5M)

• Over 20 plants managed

• Installed capacity: 670 MWt

• Diversified technology/fuel mix (cogeneration, biomass, waste, etc.)

A2A acquired Coriance in August 2008

CAGR +8% CAGR +9%

BUSINESS MODEL

COFATHEC CORIANCE (GAZ DE FRANCE)

DISTRICT HEATING

Production

GW TWh TWh

CAGR +12%


2008F

0.9

2013

1.0

2008F

2.9

2013

WTE 1.8

Landfill 0.5

Othertreatm.1.9

4.3

2008F

1.1

2013

1.7

2009-2013BP: Waste highlights

WASTE VOLUMES (Mton)KEY FACTS

HEAT PRODUCTION (TWht)POWER PRODUCTION (TWhe)

2008F

0.7

2013

0.9

• Expiration of CIP6 incentives offset by cash flow from new investments (e.g. new WTE plants in 2012-2013) and operating synergies

• Potential expansion also abroad leveraging innovation and technology advanced expertise

• New orders from Spain, Greece and United Kingdom

CAGR +9%CAGR +5%

COLLECTED* TREATED**

CAGR +2%

CAGR +8%

*main municipalities; **treatment plants + landfills + WTE

WASTE

1.2

1.3

0.4


2008F

12.2

2013

12.7

ELECTRICITY (TWh)

2008F

90

2013

96

2008F

2.0

2013

2.2

2009-2013BP: Networks highlights

REGULATORY SCENARIOKEY FACTS

ELECTRICITY

•WACC: 7% (distribution), 7.2% (metering)• Price cap*: 1.9% (distribution), 5%(metering)

WATER

GAS

•AATO Plan, 2007-2031 period: � Water tariffs: 7% return on invested capital� Efficiency improvement: 1%

GAS (Bcm) WATER (Mcm)

• Electricity and gas: equalisation for electricity distribution grid, efficiency improvement and infrastructure maintenance (e.g. metering, networks)

• Water: increase in water tariffs and infrastructure development (i.e. sewage and depuration)

CAGR +1% CAGR +2% CAGR +1%

•WACC: 7.6% (distribution), 8.0% (metering)• Price cap*: 3.2% (distribution), 3.6%(metering)

NETWORKS

* “X-Factor” does not include inflation rate; AATO = Autorità d'Ambito Territoriale OttimaleSource : AEEG, AATO


A2A Value Proposition

• Business diversification: low risk profile

• Best in class for service quality: high customer's loyalty

• Large scale production from renewable sources: competitive cost structure

• Sound capital structure

• Solid management's track record

Attractive and sustainable return to shareholders





• Q&A

Agenda


Disclaimer

This document has been prepared by A2A solely for the use at investor and analyst meetings.

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

2007 and 2008 pro-forma numbers as recalculated, analysed and reclassified in this document were not approved by A2A’s Board of Directors, nor do they correspond to any documentary evidence, book and accounting record.

Some information contained herein and other material discussed at the meetings may include forward-looking information based on A2A’s current beliefs and expectations. These statements are based on current plans, estimates, projections, and projects and therefore you should not place undue reliance on them.

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

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

2008-2013 a2a analyst presentation...this information was prepared by a2a and it is not to be relied...

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