General economic indicators

The results obtained in 2013 are higher than market expectations, confirming Acea as a fundamental player within the local public service division. The main financial indicators underline a relevant increase: despite the current weak economic framework, revenues reflect the figures of last year (3,570.6 million euros, -1.2% against 2012), the EBITDA moves to 776 million euros (+10.2% compared to 2012) and the operating result (EBIT) grows to 383.8 million euros (+30.6% with respect to 2012), with a final group profit of about 142 million euros (+83.3% compared to 2012).

TABLE N. 6 – MAIN ECONOMIC AND EQUITY DATA OF ACEA GROUP (2012-2013)

(IN MILLIONS OF EUROS) 2012 2013
net revenues 3,612.7 3,570.6
payroll and related costs 282.0 279.5
external costs 2,635.3 2,525.0
eperating costs 2,917.3 2,804.5
EBITDA 695.2 766.1
EBIT 293.8 383.8
financial management (120.6) (97.4)
share management 0.9 (4.8)
result before tax 174.1 281.6
income tax expense 88.8 128.3
net result 85.3 153.2
profit/loss attributable to minority interests 7.9 11.3
group net result 77.4 141.9

Consolidated revenues in 2013 amounted to 3,570.6 million euros (3,612.7 million euros in 2012). Within the energy supply chain, revenues equal 2,414.2 million euros, in accordance with the figures of 2012, are determined by the balance between the lower sales revenues, including photovoltaic, and increases in sales for operations related to electricity and heating transport, measurement and generation.

Gas sales are around 60 million euros (+12.6% against 53.4 million in 2012). An overall decrease in revenues from certificates (white certificates9, green certificates10, and CO2 emission rights11), with about 16.4 million euros (-56.2% compared to 37.4 million in 2012), mainly due to the termination of activities aimed at the production of energyefficiency certifications. Revenues from public and cemetery lighting are around 68.4 million euros (79.8 million euros in 2012).

Revenues from environmental services (water treatment, landfill management, composting production and RDF) reach about 35 million euros, showing an increase of about 3 million euros compared to 2012.

Revenues from water management, in Italy and abroad are 819.8 million euros, showing a 1.2% decrease compared to 830.2 million euros in 2012, due to the contract expiration with Aguazul Bogotà in Colombia.

Figure referring to EBITDA is 766.1 million euros12, with a 10.2% increase (695.2 million euros in 2012) thanks to the contribution of all industrial areas and energy-efficiency interventions fulfilled by the holding company. With the exception of the corporate area, the overall value is determined by:

  • Water industrial area, 48% with 372.5 million euros (340.6 million in 2012), on which the FIN (Fondo nuovo investimenti – New Investment Fund) tariff plan weighs, for the years 2012 and 2013 upon due authorization of competent authorities;
  • Network industrial area, 34% with 257.3 million euros (260.7 million euros in 2012);
  • Energy industrial area, 12% with 90.7 million euros (61 million euros in 2012), thanks to the improvement of commercial margins, to higher revenues from green certificates and to higher quantities of energy produced;
  • Environment industrial area, 6% with 48.4 million euros, data that keeps constant compared to the previous year (49.3 million euros in 2012).

9 The Ministerial Decrees dated 20th July 2004 introduced the so-called white certificates (Energy efficiency certificates -EEC ) into Italian Legislation, fixing the annual primary energy saving goals that every energy and natural gas supplier shall achieve through the implementation of energy efficiency projects. The inter-ministerial decree dated 28th December 2012 sets the goals up to 2016, transferring the responsibility for the energy-saving certification from AEEG to GSE.

10 Until 2012, the green certificates were the main incentive tool for electricity generated from renewable sources (exclusive of the photovoltaic) according to the provisions of Legislative Decree n. 79/99 (What is known as “Bersani Decree”). This model has been outdated by the Decree of the Ministry for Economic Development 6/6/2012 to implement art. 24 of Legislative Decree n. 28/11. The subsidy for energy generated from plants fuelled by the above-mentioned renewable sources, whose nominal power is higher than fixed threshold values and operational since 1st January 2013, is allocated on the basis of Dutch auctions managed by GSE. In any case, auction procedures provide the value of the subsidy, determined by taking into account the need to recoup the investments made.

11The Emission Trading System (Directive 2003/87/CE) is an administrative tool, in force in the EU frame work, aimed at promoting the reduction of greenhouse gas emissions (CO2) in industrial productions. At the beginning of the year, production plants subject to the Directive, assimilated in Italy through the Legislative Decree n. 216/2006, receive allowances to issue maximum level of CO2 emissions, according to several factors, such as the technology employed: more advanced plants receive higher shares of allowances.
The following year, after verifying effective emissions, if the maximum has been surpassed, the plant operator shall buy additional CO2 allowances on the market, shall sell the spare allowances in case emissions are lower than the cap assigned. Therefore a real and true market of trading allowances is established which rewards best practices in lowemission production and hinders performance under the preset benchmark.

12 Revenues from foreign water management weigh 1.6% on total water revenues and about 0.4% on the Group’s total revenues. For a brief description of foreign management, see chapter Foreign operations.


CHART N. 5 - INDUSTRIAL AREAS CONTRIBUTION TO OVERALL EBITDA (2012-2013)

Contributo aree industriali Ebitda

The figure referring to EBIT (383.8 million euros), shows 30.6% increase compared to the previous financial year (293.8 million euros). EBIT value is determined by amortisation, provisions and depreciation equal to 382.3 million euros, showing a decrease of 19.9 million euros with respect to 2012. This positive variation mainly relies upon a reduction of amortisation, ascribed to Acea Distribuzione network plants, and a reduction of risks provisions occurred over the year, only partially balanced by larger allocations for personnel (incomedeprived voluntary early retirement and redundancy) and linked to Acea Distribuzione energy-efficiency objectives.

TABLE N. 7 – EQUITY DATA AND NET FINANCIAL POSITION OF ACEA GROUP (2012-2013)

(IN THOUSANDS OD EUROS) 31.12.2012 31.12.2013
non-current financial assets (Liabilities) 2,060 2,461
intra-group non-current financial assets (Liabilities) 30,899 32,328
payables and other non-current financial liabilities (2,211,609) (2,507,623)
Medium/long-term financial position (2,178,650) (2,472,834)
cash balances and securities 423,771 589,483
short-term account due to banks (753,850) (466,245)
current financial assets (liabilities) (56,898) (141,455)
intra-group current financial assets (liabilities) 70,149 22,860
short-term financial position (316,828) 4,643
total net financial position (2,495,478) (2,468,192)
equity 1,316,060 1,405,439
invested capital 3,811,538 3,873,631

Results for the positively affect the profitability ratios both of own capital (ROE) and invested capital (ROIC).

TABLE N. 8 - PROFITABILITY MAIN INDICATORS (2011-2013)

201120122013
Returns on own capital
ROE=Profit for the year after taxes/shareholders' equity 7.1% 5.9% 10.1%
pre-tax ROIC=EBIT/invested capital 6.1% 7.1% 9.9%