Results

Key performance indicators

The data for 2015 include the company Acam Gas S.p.A., fully consolidated as of 1 April 2015, and the companies Metano Arcore S.p.A. and SETEAP S.p.A., respectively merged by incorporation into Italgas S.p.A. and Napoletanagas S.p.A. as of 1 January 2015. With regard to the full consolidation of AES Torino S.p.A. as of 1 July 2014, the economic impact is seen respectively throughout 2015 and in six months of 2014.

Results

Total revenue amounted to €1,098 million in 2015, up by €45 million, or 4.3%, compared with 2014. Total revenue, net of components offset in costs¹⁶, amounted to €1,090 million, an increase of €46 million, or 4.4%, compared with the previous year.

Regulated revenue amounted to €1,071 million, and related mainly to fees for the natural gas distribution service (€1,027 million) and to technical services connected to the distribution service (€24 million). Net of components offset in costs, regulated revenue totalled €1,063 million, up by €46 million, or 4.5%, compared with 2014. This increase was due essentially to the change in the scope of consolidation.

Adjusted EBIT for 2015 totalled €509 million, up by €32 million, or 6.7%, compared with 2014. The increase was due to higher revenue (+€46 million) and reduced operating costs (+€14 million, net of components offset in revenue) associated mainly with the changes in provisions for risks and charges, the effects of which were partly offset by the change in the scope of consolidation. The lower portion of expenses absorbed by investment activities was offset by the operating efficiency and savings measures put in place during the year. The change in adjusted EBIT was also due to higher depreciation and amortisation for the period (-€28 million), due mainly to the change in the scope of consolidation (-€21 million). This was offset by the effects of the change made in 2014 of the useful life (from 20 to 15 years) of some metering equipment in the natural gas distribution sector (-€11 million), which was subject to a revision for tariff purposes by the Authority.

Main events

Italgas – Revocation of judicial administration and confirmation of the Company’s Board of Directors

On 9 July 2015, the activities related to the revocation of the judicial administration measure handed down by the Court of Palermo against Italgas were concluded. The Court, taking into account the outcomes of the checks carried out and the active collaboration of the Snam Group, ordered the revocation of the measure by means of a ruling on 29 June 2015.

Having acknowledged the revocation, the Italgas Shareholders’ Meeting of 9 July 2015 appointed the Company’s Board of Directors, with a term of office due to expire upon the approval of the financial statements as at 31 December 2015, confirming all the outgoing members.

Following the revocation of the judicial administration measure handed down by the Court of Palermo and the confirmation of the Board of Directors by the Shareholders’ Meeting, Italgas is putting in place the measures for implementation of the organisational and procedural plan and for monitoring and verifying the Company’s activities¹⁷. Italgas is also providing the competent authorities with the information flows provided for under Article 34, paragraph 8 of Legislative Decree 159/2011 (Judicial Control) relating to significant transactions. Italgas has filed an appeal against the provision of said information flows with the Palermo Court of Appeal, and is also providing the competent authorities with the results of the periodic reports of the Watch Structure. For more information, see Note 24, “Guarantees, commitments and risks – Disputes”, of the Notes to the consolidated financial statements.

Corporate transactions and business development

Acquisition of control of Acam Gas S.p.A. – Impact of the transaction

On 1 April 2015, Italgas completed the acquisition from Acam of a 51% stake in Acam Gas, for a price of €46 million. By means of this transaction, Italgas, which already held 49% of Acam Gas, acquired the company’s entire share capital, further consolidating its gas distribution activities in the minimum geographical area (ATEM) of La Spezia. Acam Gas operates the gas distribution service in the city of La Spezia and in another 28 municipalities located in the La Spezia province, with around 112,000 active redelivery points.

The economic impact of the acquisition of control of Acam Gas can be seen as of 1 April 2015¹⁸, and can be summarised as follows:

Merger by incorporation of AES Torino S.p.A.

On 21 December 2015, the deed was drawn up for the merger by incorporation of AES Torino S.p.A. (wholly owned by the surviving company) into Italgas S.p.A., with accounting and fiscal effect from 1 January 2016, at the conclusion of the acquisition, by the latter, of the entire share capital of AES in July 2014. Pursuant to the transaction, as of 1 January 2016, all operating activities pertain directly to Italgas.