Slide 1: Edison First Half 2006 Results
EDISON FIRST HALF 2006 RESULTS Milan, August 2nd 2006
Slide 2: Agenda
AGENDA Business environment First Half 2006 results: Consolidated financial highlights Electric power and hydrocarbons operating performance Capital expenditures Debt evolution 2
Slide 3: Electric Power Availability Mix and Gas Supply Sources in Italy
ELECTRIC POWER AVAILABILITY MIX AND GAS SUPPLY SOURCES IN ITALY Electricity supply mix (TWh) Gas supply mix (bcm) +1.8% 45,8 50 45,0 200 +2.1% 163,4 166,8 45 1,6 1,9 20,6 40 26,8 4,5 150 3,6 35 21,6 21,8 30 100 25 37,5 39,3 20 122,7 131,2 15 50 10 5 6,0 5,5 0 -11,5 -11,1 0 -0,1 -0,9 IH05 IH06 -5 IH0
Slide 4: First Half 2006 Results
FIRST HALF 2006 RESULTS 4
Slide 5: Edison Group - Consolidated Highlights
EDISON GROUP ― CONSOLIDATED HIGHLIGHTS FY05 (a) (€ mln) IH06 IH05 (a) ∆% 6,629 Sales revenues 4,266 3,225 32.3 1,288 EBITDA 774 597 29.6 639 EBIT 415 320 29.7 504 Group net income 398 (b) 200 99.0 620 CAPEX (including exploration) 214 261 2,963 Employees 2,950 4,497 31-12-05 (a) 30-06-06 30-06-05 (a
Slide 6: Operating Performance
OPERATING PERFORMANCE Corporate, adj. Electric power Hydrocarbons Total Edison Group and other (b) (€ mln) IH06 IH05 (a) ∆% IH06 IH05 (a) ∆% IH06 IH05 (a) IH06 IH05 (a) ∆% Sales revenues 3,360 2,222 51.2 2,084 1,548 34.6 (1,178) (545) 4,266 3,225 32.3 EBITDA 563 465 21.1 240 154 55.8 (29) (22) 774 5
Slide 7: Edison Group - EBITDA Change by Activity
EDISON GROUP ― EBITDA CHANGE BY ACTIVITY 900 774 +30% 800 130 700 597 600 110 94 500 60 226 400 244 300 200 337 100 221 0 -22 -29 IH05 IH06 -100 ∆ yoy Gas E&P, logistics and other +36 Gas supply and sales +50 CIP6, captive and other regulated activities (18) Electric power merchant activities +116 C
Slide 8: Electric Power Operations - Total Sources and Uses
ELECTRIC POWER OPERATIONS ― TOTAL SOURCES AND USES Sources (*) (TWh) Uses (*) (TWh) +24,5% 35 31,4 35 31,4 30 30 2,6 25,2 6,6 25,2 +18.0% 25 25 2,7 5,6 6,1 +41.7% 20 20 18,6 4,0 15 13,1 15 +20.1% 10 18,7 10 15,6 +8.3% 5 5 9,4 10,2 0 0 IH05 IH06 IH05 IH06 Edipower production Captive and other industr
Slide 9: Electric Power Operations - Sources/Uses on Free Market
ELECTRIC POWER OPERATIONS ― SOURCES/USES ON FREE MARKET Sources (*) (TWh) Uses (*) (TWh) +41,5% 20 19,1 20 0,5 19,1 0,5 0,8 18 18 2,3 16 13,5 16 13,5 5,8 14 0,4 3,2 14 0,9 1,4 12 12 1,8 1,2 3,6 10 10 8 1,7 8 +19,8% 12,6 6 +44.6% 6 10,7 10,5 4 7,4 4 2 2 0 -0,1 0 -2 IH05 IH06 IH05 IH06 Import Losses D
Slide 10: Hydrocarbons Operations - Total Sources and Uses
HYDROCARBONS OPERATIONS ― TOTAL SOURCES AND USES Sources (*) (TWh) Uses (*) (TWh) +1.9% 8 7,1 7,2 8 7,1 7,2 7 0,2 0,2 7 0,3 0,2 6 6 2,2 3,7 2,4 5 4,2 5 0,6 4 4 0,8 3 3 2 2,7 2,4 2 4,0 3,4 1 1 0,2 0,2 0 0,5 0,4 0 IH05 IH06 IH05 IH06 Foreign sales Imports Wholesalers Domestic purchases and losses Impo
Slide 11: Edison Group - From EBITDA to Net Income
EDISON GROUP ― FROM EBITDA TO NET INCOME (mln €) IH06 IH05 ∆ EBITDA 774 597 +177 Depreciation, amortization and writedowns (359) (277) -82 EBIT 415 320 +95 Net financial expense (136) (112) -24 Other income (expense), net 5 38 -33 Net effect of fiscal realignment (*) 202 - +202 Other income taxes (8
Slide 12: Capital Expenditures and Exploration
CAPITAL EXPENDITURES AND EXPLORATION (€ mln) 300 261 6 250 6 214 30 6 200 23 30 150 100 219 (of which 155 Edipower 48) 50 (of which Edipower 44) 0 IH05 IH06 Corporate and other Exploration Hydrocarbons Electric power 12
Slide 13: Consolidated Net Debt Evolution in 2006
CONSOLIDATED NET DEBT EVOLUTION IN 2006 (4,820) 774 (96) (31) (4,705) (111) (136) 112 Other (183) Substitute tax Operating for fiscal value Porto Marghera Net financial working realignment (5,257) (214) settlement (4,938) expenses capital Gross Dividends to Gross (€ mln) Borrowings shareholders Borr
Slide 14: Disclaimer
DISCLAIMER This document has been prepared by EDISON solely for the use at investors and analysts 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