GORI S.p.A.

GORI provides integrated water services in 76 municipalities in the provinces of Naples and Salerno, on the basis of a thirty-year agreement signed on 30 September 2002 by the company and the Sarnese Vesuviano Area Authority. The perimeter managed has remained unchanged compared to the previous year, since the process of acquiring management is, by now, complete. In fact, there are 76 municipalities managed, and that is, all of those falling within ATO no. 3 of the Campania Region.

With regard to the tariffs issue, on 27 October 2012, the General Meeting of the Area Authority approved the tariffs for 2012 and the corrective measures to be implemented to ensure the economic and financial stability of the service with reference to 2003-2011, to the extent determined in the preliminary report of 8 October 2012 prepared by that same Authority’s Planning Department. Following the aforementioned measure, the revenues recorded until 2008 were confirmed on the basis of those expected in the area plan, products of the real average tariff set forth for the various years and the water volumes actually supplied. For the years 2009, 2010 and 2011, the Authority conducted a precise analysis of the data transmitted by the Operator to verify the eligibility of the individual cost items for inclusion in the tariff, taking into consideration the criteria laid out by AEEG. The aforementioned enquiry resulted in the recognition of higher adjustments to be recovered totalling approximately 13 million euros.

Please also note that within the scope of the aforementioned preliminary enquiry, in compliance with the criteria adopted by AEEG, the I.I.S. loan instalments were reclassified from the item “Intangible assets” and considered to be operating costs for the purpose of determining the 2012 tariff and the adjustments for the years 2009-2011.

On the topic of tariffs, at its meeting of 27/10 the General Meeting of the Sarnese Vesuviano Area Authority issued resolution no. 5 which set the tariff system for the year 2012, by concluding the process of convergence of all municipalities included within ATO no. 3 in Campania within a single tariff area, and updated the basic tariff to the extent of Tb = 1.2600 €/m3, without prejudice to the tariff breakdown approved with resolution no. 9 of 10 July 2009, as amended by resolution no. 5 of 2 August 2011.

The Resolution referred to above also set the value of total costs recognised in the tariff for the year 2012; in particular, for 2012 it established a value of 127 million euros for total tariff costs and therefore for guaranteed revenues.

Please note that for 2012, the company estimated revenues applying the provision contained in AEEG Resolution no. 585 of 28 December 2012 and revenues from the tariff were estimated at 127 million euros.

Details on the impacts of AEEG resolution 585/2012 are provided in the section “Service concession arrangements”.