Net working capital

This increased by 22.9 million euros compared with 31 December 2011. The increase is associated with the combined effect of the decrease in current receivables for 32.8 million euros, other current assets for 25.3 million euros and inventories for 24.1 million euros and on the other hand, the decrease in current payables for 77.6 million euros and other current liabilities for 27.5 million euros.

As regards the breakdown of receivables, please note the increase in users and customers of 42.2 million euros, equal to 3.2%, and the significant reduction in trade receivables from the municipality of Rome of 65.7 million euros (41.1%).

With reference to the 42.2 million euro increase in receivables due from end users and customers, the details by Area are provided below.

€/million 31.12.2012 31.12.2011 Increase/ (Decrease)
  End users Customers Total End users Customers Total End users Customers Total
Networks 41.3 48.7 90.0 27.9 73.3 101.3 13.4 (24.6) (11.2)
Energy 495.1 88.2 583.2 551.7 61.2 612.9 (56.6) 26.9 (29.7)
Water 535.7 48.1 583.8 439.2 52.2 491.4 96.4 (4.0) 92.4
     Environment 0.0 43.8 43.8 0.0 60.3 60.3 0.0 (16.4) (16.4)
Parent Company 0.0 45.9 45.9 0.0 38.9 38.9 0.0 7.0 7.0
                   
Total 1,072.1 274.7 1,346.8 1,018.8 285.9 1,304.7 53.3 (11.1) 42.2
  • companies in the Energy Networks segment decreased the receivables by a total of 11.2 million euros. ARSE contributes 26.7 million euros to the decrease, while ACEA Distribuzione’s receivables rose by 15.0 million euros. Non-recourse factoring operations were completed during the year for a total of 184.8 million euros, and receivables deemed uncollectible amounting to 0.3 million euros were written off;
  • with regard to the Energy Area, please note that there was a 29.7 million euro decrease compared to 31 December 2011. Acea Energia contributed to the decrease for a total of 40.1 million euros, while Acea Energia Holding increased receivables by 18.4 million euros, relating to receivables for invoices issued and to be issued to third parties or other institutional operators.

In 2012, Acea Energia carried out the non-recourse factoring of receivables for a total of 708.7 million euros (of which 188.9 million euros relative to amounts due from the Public Administration), and wrote off uncollectible receivables, which are fully covered by the Provision for the impairment of receivables, for 47.8 million euros.

  • the companies of the Water Area grew in total by 92.4 million euros, basically because of ACEA Ato5 (+43.4 million euros), ACEA Ato2 (+48.3 million euros) and GORI (+9.5 million euros); and because of a total decrease of 9.4 million euros relating to the Tuscan and Umbrian companies. The year’s performance was affected by the recognition of the spread relative to prior tariff adjustments recognised to ACEA Ato2 during the tariff review, net of the portion relative to 2012: receivables amount to a total of 29.6 million euros. The increase is also influenced by the methods for determining revenues based on resolution 585/2012.

In the January – December period, ACEA Ato2 carried out the non-recourse factoring of receivables for a total of 244.4 million euros (of which 45.8 million euros relative to amounts due from the Public Administration) and wrote off receivables totalling 8.9 million euros.

  • the Environment Area companies contribute a total of 16.4 million euros to the decrease in Group receivables; that change is essentially influenced by ARIA (-9.8 million euros) - which subsequent to signing the CIP6 Agreement collected all receivables posted at the end of last year - and by SAO (-5.9 million euros) for the regularisation of relations with ASM Terni.
  • the Parent Company contributed 7 million euros to the increase in amounts due from customers. The increase largely regards (i) the activities carried out during the period for the public lighting service in the municipality of Naples (+9.3 million euros) and (ii) the two transactions for the acquisition of receivables due to Acea Energia by ATAC, totalling 7.3 million euros, completed in March and September, of which 3.3 million euros has already been collected.

Note that during the year ACEA uncollectible receivables for a total of 17.4 million euros were fully written down.

Finally, in December, as part of the survey of relations with Roma Capitale and subsidiaries, 5.3 million euros and 5.4 million euros were collected from AMA and ATAC, respectively.

As regards amounts due from and to Roma Capitale (including financial items) net receivables of 126.9 million euros due to the Group from Roma Capitale were recorded, which stood at 144.0 million euros at the end of the previous year.

The following table presents an analysis of the ACEA Group’s relations with Roma Capitale regarding both receivables and payables, including those of a financial nature.

Amounts due from Roma Capitale 31/12/2012 31/12/2011  Increase/ (Decrease)
  A) B) A) - B)
Utility receivables 53.1 70.1 (17.0)
Contract work 17.6 44.4 (26.8)
Receivables for services 6.6 9.1 (2.6)
Other receivables 0.1 0.9 (0.7)
Total services billed 77.4 124.5 (47.1)
       
Grants due 2.4 14.1 (11.7)
Surcharges 0.0 0.0 0.0
Total services requested 79.8 138.6 (58.8)
       
Total services to be billed 13.9 17.4 (3.5)
Advances 2.1 2.1 0.0
       
Total trade receivables 95.8 158.1 (62.3)
       
Financial receivables for the public lighting service 63.3 114.7 (51.4)
       
Total receivables due within one year (A) 159.1 272.8 (113.6)
       
       
Amounts due to Roma Capitale 31/12/2012 31/12/2011 Increase/ (Decrease)
       
Sewerage and water treatment payables: collectible 0.0 (32.7) 32.7
Electricity surtax (14.5) (52.8) 38.2
Charges for rental of company offices 0.0 (0.0) 0.0
Concession fees payable (23.9) (24.1) 0.2
Total trade payables (38.5) (109.6) 71.1
       
Total payables due within one year (B) (38.5) (109.6) 71.1
       
Total (A) - (B) 120.7 163.2 (42.5)
Other financial loans and receivables/(borrowings) 30.0 2.0 28.0
including: Financial liabilities (including dividends) (0.9) (16.0) 15.1
including: medium/long-term loans and receivables for public lighting 30.9 18.0 12.9
 
Other trade receivables/(payables) (23.8) (21.3) (2.5)
including: disputed payables - Vatican City water treatment and sewerage (20.5) (20.5) 0.0
 
Net balance 126.9 144.0 (17.0)

2012 was characterised by extraordinary activities aimed at surveying entries in order to, inter alia, achieve a relevant amount of collections.

As regards ordinary operations, note that in 2012 a total of 174.9 million euros in receivables was collected and payables of 104.9 million euros were settled through administrative offsets.

The table below provides details on the receivables and payables settled in 2012.

Type of receivable/payable € millions
Utility receivables 78.8
Public lighting contract 84.1
Contract work and services 12.1
Total receivables 174.9
Concession fees payable (25.1)
Electricity surtax (42.4)
Dividends (37.4)
Total payables (104.9)
   
Net balance 70,000

In January 2013, Roma Capitale also paid 9.4 million euros to Acea Energia and 1.2 million euros to ACEA, for a total of 10.6 million euros.

With regard to the Administration established by the Central Government, in December ACEA signed a settlement deed, with the favourable opinion of the Related Parties Committee, which led to the collection of 25 million euros in 2012. Group receivables and payables subject to the aforementioned deed amount to 81.6 million euros and 36.5 million euros respectively, and are shown in the table below.

€ millions Receivables due from the Administration established by the Central Government Payables  due to the Administration established by the Central Government Net balance
ACEA 46.2 12.1 34.1
ACEA Ato2 26.1 24.3 1.8
ACEA Distribuzione 1.2 0.1 1.0
Acea Energia 8.1 0.0 8.1
Totals 81.6 36.5 45.1

That agreement resulted in a total loss of 14.3 million euros.

For more details on the formation and change in the position towards Roma Capitale, please see note no. 22 of the notes to the Statement of Financial Position of the Consolidated Financial Statements 2012.

Inventories, totalling 42.0 million euros, decreased by 24.1 million euros mainly due to the reduction in PV activities, which are carried out by ARSE, with reference to the construction of owned plants and construction under EPC agreements for third parties. There was on the other hand an increase due to the recognition of works in progress related to the installation of Public Lighting plants, carried out by ACEA, which is currently being completed under the service agreement with Roma Capitale.

Other current assets, amounting to 221.3 million euros, decreased by 25.3 million euros and are composed as follows (i) 85.6 million euros for current tax assets (+28.5 million euros) (ii) 124.1 million euros for other receivables (-55.3 million euros), (iii) 8.8 million for accrued income and prepayments (-0.6 million euros) and 2.9 million euros for receivables deriving from the fair value measurement of commodities.

  • Current tax assets increased essentially due to IRES relating to the tax consolidation of ACEA, which closes 2012 with a credit position, as well as the recognition of the IRES refund (15.6 million euros) due with regard to the deduction of IRAP for the years 2006 - 2011.
  • Other receivables changed substantially compared to the end of the previous year, mainly due to the reclassification of part of ACEA Ato5’s receivables, 26.5 million euros of which were reallocated following publication of document F129 by the Commissioner for deeds on 21 June 2012, as well as the 21.7 million euro advance paid by ACEA Distribuzione to the national grid operator for the A3 component for the month of August 2011. Finally, it should be noted that at the end of last year ACEA had deposited an advance of 11.0 million euros for the purchase of the registered office.

Please see note 22 of the Consolidated Financial Statements for the analysis of the other receivables item.

In relation to current payables, standing at 1,267.2 million euros, the decrease of 77.6 million euros reflects:

  • the 8.1 million euro increase in trade payables, which amount to 1,193.1 million euros at the end of 2012, due to the opposing factors which involved both an increase in payables in the Networks Area (+63.5 million euros regarding ACEA Distribuzione and -34.8 million euros regarding ARSE), the Water Area (+19.6 million euros) and the Environment Area (+19.7 million euros) as well as a significant decrease in the Energy Area (-59.3 million euros),
  • the decrease in amounts due to Roma Capitale (72.1 million euros); for more information, please see what has already been commented on above.

Other current liabilities stood at 361.2 million euros at the end of the year, which is a decrease of 27.5 million euros since the end of the previous year (7.1%).