2015
COMPANY PROFILE
April 2015
1
March 2013
CONTENTS
ü  Profile of the Group
3
ü  Hydrocarbons
9
ü  Electric Power
20
ü  Market
25
ü  Financial Results at 12.31.2014
30
2
April 2015
PROFILE
OF THE GROUP
3
April 2015
WHO WE ARE
Edison is Europe’s oldest power company and one of the key players in the Italian energy market. For
130 years Edison has been active in the energy industry, strongly contributing to Italy’s industrial
development. Edison, controlled by EDF (Electricité de France), has about 3,100 employees in more
than 10 countries in the world.
Today Edison is facing these challenges: 1) consolidate and increase its presence in Italy electric
generation power and market; 2) expand its presence in the Balkans and in the Mediterranean area
leveraging on the integration of gas to power business; 3) become the Group’s hydrocarbons center of
competencies, capitalizing on Edison expertise (E&P, supply, midstream, CCGT) in order to integrate
EDF leadership in the power business. Through the development of infrastructural gas projects,
Edison helps the diversification of supply sources for our Country and the whole Europe.
4
April 2015
OUR MISSION
Through these activities,
Edison intends to:
SUPPLY OUR CUSTOMERS
WITH ENERGY AND
HIGH-QUALITY SERVICES,
USING THE MOST EFFICIENT
TECHNOLOGIES
THAT ARE COMPATIBLE
WITH THE ENVIRONMENT
AND INCREASE SAFETY
•  create value for its shareholders
and ensure the long-term growth
of the Company;
•  contribute to the well-being
and professional development
of its employees and partners;
•  transfer innovation
to the community and contribute
to its economic and social
development while complying fully
with the Company’s fundamental
values of ethical and transparent
behavior.
5
April 2015
OUR HISTORY
Edison was Italy’s first electric utility and is one of the oldest energy companies in the world:
1883
1884
1931
1962
1966
1979
1999
2002
2005
2008
2009
2011
2012
2014
Continental Europe’s first commercial power plant is built at Santa Radegonda’s theatre
in Milan
“Società Generale Italiana di Elettricità Sistema Edison” was established on 6th January
Edison begins to supply natural gas to households in Milan
Italy’s electric power industry is nationalized and Edison becomes a self-producer
Edison merges with Montecatini. Montedison becomes a chemical giant
SELM (Servizi Elettrici Montedison) is established as a separate company
The Bersani Decree becomes effective and Edison enters the deregulated energy market
The merger of Montedison, Edison, Sondel and Fiat Energia creates the “new” Edison
Transalpina di Energia, a 50-50 joint venture of Electricité de France and Delmi (group of
financial investors led by A2A) acquires the control of Edison
Launch of Edison’s electric power sales package for the residential market
Launch of Edison’s gas sales package for the residential market
Edison achieves the milestone of more than 1,400,000 delivery points
Edison is part of EDF Group (Electricité de France) which owns 99.48% of the company
Celebrations for the 130 years-history of the Company
6
April 2015
INDUSTRIAL HIGHLIGHTS (data at 12.31.2014)
7.3
KHR Plant
(Edison 20%)
GW of installed capacity
EL.IT.E
Castellavazzo
Campo
47
hydroelectric power plants
Pieve Vergonte
Battiggio
Piancone
Albano
thermoelectric power plants
Val Meduna (5 plants)
Val Caffaro (4 plants)
Monza
Cologno Monzese
Edison Foro Buonaparte (MI)
21
Venina
Armisia
Cogno-La Rocca
Mediglia
Cascine Bianche
Oviglio
Cavarzere
Izabela
Minerbio
San Potito-Cotignola
35
wind farms
9
photovoltaic systems
1
biomass system
Naide
Fauzia
Calipso
San Giovanni Teatino
Termoli
283.5 MBoe hydrocarbons reserves
127
3
Ripabottoni
Lucito
Rome
Rignano Garganico
Volturara - Motta
Volturino
Piedimonte
Latina
Head office
mineral leases (gas and oil)
Andretta-Bisaccia
Vaglio
Operating office
Sella di Conza
IGI
Thermoelectric power plant
Otranto
Thermoelectric
mothballed plant
gas storage centers
Biomass system
Hydroelectric power plant
1
LNG terminal
Cagliari
Melissa - San Francesco
Wind farm
Melissa - Strongoli
Photovoltaic system
R&D center
2
pipelines under project
Gas field
Oil field
Palermo
Mistretta
Storage concession
LNG terminal
Compressor station
Pipeline in project
Galsi
7
Operational pipeline
Merchant line EL.I.TE.
Argo cluster
Ragusa
Siracusa
Tresauro
April 2015
SIMPLIFIED STRUCTURE OF THE GROUP
Organization and activities of the Business Units and main consolidated companies
(Source: Quarterly Report 1Q2015)
Power
Assets
Power
International
Energy
Management
Management and development
of thermoelectric, hydroelectric
and renewable-source
power generating facilities
Development and management
of international partnerships
for thermoelectric power
generation and sales and
interconnection facilities
Dispatching, trading, buying
and selling of electric
power in wholesale markets
E2i Energie Speciali Srl
Sistemi di Energia Spa
Hydros Srl
Dolomiti Edison Energy Srl
Elpedison Power SA
Elpedison Energy SA
Edison Trading Spa
Elite Spa
Marketing
Sales & Energy
Services
Sales of electric power and
gas to end customers
Edison Spa
Energy efficiency services
and solutions
Exploration
& Production
Gas International
& Management
Gas Regulated
Assets
Exploration for and
production of hydrocarbons
(oil & gas) in Italy and
internationally
Development of international
gas infrastructures
Management of gas
LT procurement, logistics
and trading
Thermoelectric gas sales
Management of gas storage,
transmission and distribution
activities in Italy
Edison International Spa
Abu Qir Petroleum Co
IGI-Poseidon Sa
Galsi Spa
Edison Stoccaggio Spa *
Edison DG Spa *
Infrastr. Trasporto Gas Spa **
Edison Energia Spa
AMG Gas Spa
Edison Energy Solutions Spa
* = Companies subject to functional unbunding requirements.
** = Independent Transmission Operator
Electric Power Business Unit
Hydrocarbons Business Unit
Main consolidated companies in the Scope of Consolidation
8
April 2015
HYDROCARBONS
9
April 2015
A LEADING PLAYER IN ITALY AND INTERNATIONALLY
Edison, with an available supply in 2014 of 13.2 billion m3 of natural gas, is an integrated player in the
hydrocarbons segment active from exploration to production, supply, distribution and sales of natural
gas and crude oil.
Today the Group has hydrocarbon reserves for 283.5 MBoe and 4 long term contracts to import
natural gas from Qatar (6.4 bcm), Libya (4.0 bcm), Algeria (2.0 bcm) and Russia (2.0 bcm). Edison has
become EDF’s hydrocarbons center of competencies thanks to its experience in the segment, to its
position among the most important players on the Italian market and to its geographical position in a
country in the Mediterranean sea, with an easy access to North Africa. In order to further expand the
gas market in Europe, Edison might be the player capable to diversify the supply sources of natural
gas on the continent.
10
April 2015
A LEADING PLAYER IN ITALY AND ABROAD
Edison is active in natural gas and crude oil
exploration and production, with 60
concessions and exploration permits in Italy
and 67 concessions and permits abroad:
Egypt, Norway, Croatia, Algeria, UK,
Falkland Islands and Israel.
The Abu Qir fields, in Egypt,
represent a key asset in this area.
Norway
UK
Croatia
Italy
Production fields
E&P areas of interest
Israel
Algeria
Egypt
Falkland Islands
11
April 2015
ABU QIR
•  In January 2009, Edison acquired the exploration, production and development rights of
the Abu Qir concession off-shore Alexandria in Egypt.
•  The concession has a 20-year duration and can be extended for a further 10 years on
Edison’s request.
•  The operations are managed by Abu Qir Petroleum Company, a 50%-50% JV between
Edison and EGPC with headquarters in Alexandria.
•  After four years the first phase of development has ended, with the coming into
production of a new platform in 2011, in the North Abu Qir field, which allowed a
significant increase in production. In 2012 a new pipeline has been installed to increase
the transport capacity of the whole network and improve its efficiency.
•  There are currently 7 platforms (of which 5 for production and 2 for compression),
24 production wells, and a sealines network of around 120 km.
•  In order to maintain the current production levels Edison is ready to start a second
phase of development including the drilling of new wells and the construction of a new
platform in North Abu Qir.
12
April 2015
KEY INFRASTRUCTURES FOR EUROPE’S ENERGY SYSTEM
To help Italy improve its energy mix and achieve greater independence from
individual hydrocarbon producing countries, Edison is operating the Adriatic LNG
regasification terminal and is analysing the feasibility of infrastructural projects of
strategic importance for the European supply system.
The Company also has three natural gas storage centres in Italy: Collalto,
Cellino S. Marco and S. Potito - Cotignola.
13
April 2015
THE ADRIATIC LNG TERMINAL
•  The Adriatic LNG regasification terminal is located in the
Adriatic Sea and is hooked-up to the pipeline Cavarzere–
Minerbio that conveys the regasified natural gas to the
Italian distribution network.
•  80% of the annual capacity of the Adriatic LNG terminal
(6.4 bill. m3/year) is earmarked for Edison, which imports
gas from RasGas (a Qatar company of hydrocarbons
production) who with has signed a supply agreement
lasting 25 years.
14
OFFTAKER:
Edison 80%
Others 20%
Ownership of the terminal:
Qatar Petroleum
ExxonMobil
Edison
22%
70.7%
7.3%
April 2015
IGI POSEIDON SA
IGI Poseidon SA, a company incorporated under the laws of Greece
in Athens and equally owned by DEPA S.A. and Edison, is involved in
the development of 3 majors gas pipeline projects, in the framework of
the Southern Gas Corridor system, that will contribute to the European
diversification and security of supply: Poseidon, EastMed and IGB.
The Poseidon project
q  The Poseidon pipeline is a multi-source import project designed
to transport up to 14 billion cubic meters of natural gas per year
from East Mediterranean, Middle East and/or Caspian areas to Italy
and Europe through Turkey and Greece.
q  The project current design comprises a 207 km long offshore
pipeline, linking the Italian and Greek gas networks crossing the
Ionian Sea, with a diameter of 32 inch and a maximum depth of
1370m.
existing/in construction gas networks
q  IGI Poseidon completed the FEED of the project, obtained all the necessary permits for the construction in Italy and is completing
authorization process necessary to obtain the building permits in Greece.
q  The Poseidon pipeline is ready for the Final Investment Decision that will be taken as soon as relevant gas resources will be available.
The Eastern Mediterranean project (EastMed)
q  The EastMed Pipeline is a project of an offshore/onshore natural gas pipeline that will directly link the Eastern Mediterranean gas reserves with
the European gas system.
q  The pipeline is approx. 1700km long and can be designed to transport up to 14 billion cubic meters from the recently discovered off-shore gas
reserves in the Levantine Basin and the potential reserves of Greece to the Greek National gas system and through Poseidon Pipeline to Italy.
q  The completed Feasibility Study evidence the technical/economical viability of the project. Ongoing Pre-FEED studies, performed by a
Consortium of two major engineering companies, will provide confirmation of optimal configuration and associated competitiveness with respect to
other export option from the area.
q  For their strategic relevance, both projects have received the support by the Cypriot (EastMed), Greek and Italian Governments and have
been listed among the Projects of Common Interest at European level.
15
April 2015
IGB PROJECT (Interconnector Greece-Bulgaria)
q  The IGB Project is developed by ICGB AD, a Bulgarian asset company 25% shared by EDISON through IGI Poseidon.
q  The project refers to a bi-directional gas interconnector between Komotini (Greece) and Stara Zagora (Bulgaria); the pipeline will have
approx. 180 km length with up to 5 bcm/y capacity.
q  IGB will allow to connect Bulgaria and other South-East Europe gas markets with complementary supply sources from Caspian Region, Middle
East, East Med and LNG (through existing/new terminals in Greece and/or Turkey).
q  The IGB Project has been included in the EU list for Project of Common Interest and is beneficiary of a 45 M€ grant in the framework of
the EEPR.
q  Project information and development status:
§  Exemption Procedure under Directive 2009/73/EC (Third Party Access, Tariff Regulation and Unbundling) provisions: ongoing
§  Permitting and preliminary design activities: in completion
§  New governance agreements to allow Shareholders to accelerate the Final Investment Decision : initialized
q  Commercial operation date envisaged in 2H2018.
16
April 2015
GAS PORTFOLIO IN ITALY (figures at 12.31.2014)
Sources (bcm)
Uses (bcm)
18
16
14
15.8
15.2
1.8
2.9
15.8
18
15.7
16
2.9
2.8
12
13.2
14
2.9
3.0
1.4
10
8
8
10.4
6
11.8
12.3
12.5
6
9.9
4
4
2
2
0.5
0.5
0.6
2010
2011
2012
Domestic and other purchases*
Import
0.4
2013
0.4
2014
15.2
1.1
12
10
0
15.8
15.8
2.4
2.5
2.2
2.4
1.5
15.7
3.7
13.2
3.1
2.7
1.7
2.3
2.7
3.4
10.3
9.1
8.8
6.6
4.4
0
2010
Other sales
Production Italy
2011
Residential clients
2012
2013
Industrial clients
2014
Thermoelectric uses
* Includes stock variations and pipeline leaks
17
April 2015
HYDROCARBONS PRODUCTIONS (figures at 12.31.2014)
Oil production (in K barrels)
Gas production (bcm)
3
4500
2.5
2,5
2.1
2.2
4000
2.2
2.2
2
1.7
3,508
1.8
1.8
1
3,546
3,580
1,541
1,159
1,366
2,331
2,142
2010
2011
2500
1.9
1.6
3,490
3500
3000
1,5
4,161
1,737
1,640
2000
1500
1000
0,5
0.5
0.5
0.6
0.4
2,620
1,809
1,940
2012
2013
500
0.4
0
0
2010
2011
Gas production abroad*
2012
2013
2014
Oil production abroad *
Gas production Italy
2014
Oil production Italy
* Counting volumes withheld as production tax
18
April 2015
ELECTRIC POWER
19
April 2015
A COMMITMENT TO RENEWABLE ENERGY SOURCES
Edison has been traditionally active in the area of renewable energy sources. Specifically,
Edison’s installed capacity includes 1,358 MW from hydroelectric power plants, 471 MW
from wind farms, 13 MW from photovoltaic systems and 6 MW from biomasses system.
Since 2011 the Energy Efficiency and
Sustainable Development Business Unit
has realised photovoltaic systems (3.2 MW)
to be used for self-production by
industries among the most important in Italy.
20
No.
Installed
capacity
(MW)
Net
production
(GWh)
Hydroelectric power plants
47
1,358
4,954
Wind farms
35
589
894
Photovoltaic Systems
9
13
11
Biomass Systems
1
6
40
April 2015
INTERNATIONAL PRESENCE
In Greece Edison is present with Elpedison, a 50% joint venture with Hellenic
Petroleum. Elpedison owns a 390 MW combined cycle power plant in
Thessaloniki and a 420 MW facility in Thisvi.
Within the EDF Group, Edison will be the international player involved in the
development of the generation activity in the Mediterranean area (Greece, North
Africa, Turkey) and in the Balkans area, where Edison will benefit of the
synergies with the natural gas portfolio and further increase its trading activities.
21
April 2015
POWER AND
ENERGY
AND ENVIRONMENTAL
ENVIRONMENTAL SECURITIES
SECURITIES TRADING
TRADING
Edison Trading is responsible for the Group’s Energy Management activities.
These main activities are:
•  maximize the value of the Group’s merchant facilities by optimizing the power plants
production and by the utilization of natural gas;
•  identify and execute – on major Wholesale Markets and Power Exchanges in Europe – the
buying and selling transactions involving power and environmental securities, by means of
physical contracts or financial instruments, both for trading and hedging purposes.
EDISON TRADING IN EUROPE
Prague
Bratislava
Bucharest
Milan
Headquarters
Sofia
Branch
Spot Markets
OTC Markets
Regulated Markets
22
April 2015
ELECTRIC POWER OPERATIONS (figures at 12.31.2014)
Sources (TWh)
Uses (TWh)
96.2
100
96.2
100
90
90
80
71.9
72.1
80
70
60
30.0
50
40
39.0
6.5
30
35.4
10
2.4
4.8
56.3
0
5.9
(3)
(4)
(5)
48.7
17.7
13.5
2011
2012
2013
10
11.8
(5)
54.7
33
20
27.3
23.5
18.1
19.1
20.4
2010
2011
2012
2013 (5)
2014
0
2014
Clienti
Altre(3)vendite (grossisti, IPEX, ecc.)*
Endfinali
customers
Other saves (wholesales, IPEX, etc) (4)
(1)
Other
purchases
Other
purchases*
Edipower
production
Edipower
production
Hydroelectric and other renewables production(2)
Hydroelectric production and renewables**
Thermoelectric production(2)
Thermoelectric production **
(1)
(2)
44.6
30
0
5.2
75.8
51.1
40
37.6
0
2010
60
78.6
21.6
73.8
72.2
70
50
26.2
6.7
4.8
20
51.1
71.9
Before line losses and excluding the trading portfolio
Including Edipower production (in 2010)
Before line losses
Excluding the trading portfolio
The 2013 amounts were restated for the adoption of IFRS11 “Joints Arrangements” and a different presentation of sources/uses
23
April 2015
MARKET
24
April 2015
THE BEST SALES OFFER FOR ITALIAN FAMILIES
In 2008, Edison entered the residential market with an offer to supply electric power
specifically designed for Italian families.
In September 2009, Edison introduced the Luce&Gas package, adding gas to its range of
residential customer products.
In 2013, Edison launched the «Noi Edison» loyalty program, which enables customers to
effortlessly accumulate points and, upon reaching predetermined targets, receive a prize.
In 2014, Edison, as part of the services offered to the residential sector, brought to market
its Energy Control system, a device to monitor in real time the energy used and the
expense incurred by customers.
25
April 2015
THE SALES STRATEGY
FOR THE BUSINESS MARKET:
ü  Dual Fuel
•  Electric power
– Deregulated market:
-  Large businesses
-  Small and medium-size businesses
•  Gas
•  Thermoelectric power plants
•  Industrial customers
•  Wholesalers
ü  Energy efficiency services and sustainability
– Energy audits
– Procurement and sales of Energy Efficiency Certificates on behalf of customers
– Energy optimization solutions, both on a turnkey basis and with the ESCO model
FOR THE RESIDENTIAL MARKET:
ü  Electric power and gas for Italian families:
ü  Electric power residential customers: 550,000
Gas residential customers: 545,000
(Source: 2014 Sustainability Report)
•  Product line: the various offers range from fixed-price to discounted and “all-inclusive” solutions, including the
new offer Edison Best, which introduces an innovative service with a low price guarantee: Edison pledges to
alert customers when another offer with a price lower by at least one euro per week is available.
With regard to sales, Edison intends to consolidate its position in the business customer segment and pursue growth
by focusing on select, quality segments of the small business and retail markets.
26
April 2015
THE VALUE OF ENERGY - I
•  Edison understands energy and knows how precious it is. On the strength of this knowledge, it
decided to strengthen its presence in the energy efficiency and sustainable development market. The
goal is to learn how to help customers lower consumption and contribute to the development by
businesses of economically and environmentally sustainable collaboration models that benefit Italy’s
competitiveness.
•  Many advantages, zero costs. Edison’s proposal is simple: we help customers consume less
energy and produce it themselves. Edison gives advice (making available its energy expertise and
the ability to be up-to-date on the most advance solutions), get involved directly at customer
facilities (with high quality standards and assuming the risks of the choices made) and finances the
projects if necessary.
•  You need to know if you want to save.
•  Business customers: an energy check helps recognize consumption and waste. Because
understanding is the first step on the path to achieving efficiency.
•  Residential customers: the Energy control system, by analyzing energy habits within the
home, helps reduce consumption and promotes a more informed and cost effective lifestyle.
•  Service sector customers: The new Edison E-Manager offer represents a competitive
opportunity, particularly for customers in the tourism and hotel sector, focused on an
intelligent management of the electric power absorbing equipment at customer facilities.
27
April 2015
THE VALUE OF ENERGY - II
•  Homemade energy. Thanks to self-production systems, customers satisfy their energy
needs by producing “in house” only the energy they need, reducing the energy drawn
from the grid (thereby lightening the load on the infrastructures and eliminating line
losses), often with rather significant economic benefits.
•  Green is the winning color. Sustainability is increasingly becoming a strategic asset for
companies, as consumers are willing to pay more for products that are truly “green” and
to have a better future.
28
April 2015
FINANCIAL RESULTS
at 12.31.2014
29
April 2015
GROUP FINANCIAL RESULTS
Sales revenues
EBITDA
Group interest in net profit
2014
Full Year
2012
Full Year
2013
Full Year*
(millions euros)
(millions euros)
12,014
12,304
12,325
1,103
970
814
81
96
40
(millions euros)
* The 2013 amounts were restated for the adoption of IFRS 11 “Joint Arrangements” and a new presentation of derivatives and other nonrecurring expenses
30
April 2015
SALES REVENUES BY SEGMENT
ELECTRIC POWER SALES REVENUES 2014
HYDROCARBONS SALES REVENUES 2014
(millions euro)
(mililons euro)
9000
7.000
8000
6.000
7000
6000
5.000
5000
4.000
4000
7,289
7,437
3000
6,961
7,162
7,859
6,571
3.000
5,040
5,468
5,998
5,168
2.000
2000
1.000
1000
0
0
2010
2011
2012
2013 *
2010
2014
2011
2012
2013
2014
* The 2013 amounts were restated for the adoption of IFRS 11 “Joint Arrangements” and a new presentation of derivatives and other nonrecurring expenses
31
April 2015