EDISON FULL YEAR 2005 RESULTS. Milan, February 21 st 2006

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1 EDISON FULL YEAR 25 RESULTS Milan, February 21 st 26 1

2 AGENDA Business environment Full year 25 results : Consolidated financial highlights Core business operating performance Capital expenditures Debt evolution 2

3 ELECTRIC POWER AVAILABILITY MIX AND GAS SUPPLY SOURCES IN ITALY Electricity supply mix (TWh) Gas supply mix (bcm) % % 45,6 49,1 7,3 7,5-14.9% 49,9 42, , ,1 +6.9% 1, , ,1 +2.6% 252, ,5-22, Net import Other renewable sources Hydroelectric production Thermoelectric production Ancillary services and pumping Source: GRTN ,4 +8.% 7, % 13, 12, Algeria Algeria Changes in stock Russia Russia Import via LNG Netherlands Netherlands Import via pipe Norway Norway Domestic production Libya 3.1 Libya 4.6 Nigeria & Other 3.1 Nigeria and other 5. Source: MAP and Edison estimates 3

4 FULL YEAR 25 RESULTS 4

5 EDISON GROUP CONSOLIDATED HIGHLIGHTS (mln ) % Sales Revenues 6,65 5, EBITDA 1,36 1,475 (11.5) EBIT (2.4) Group Net Income CAPEX (including exploration) Employees 2,963 4,536 Net Invested Capital 11,37 11,82 Net Borrowings 4,878 4,96 Stockholders Equity 6,429 6,176 of which Group s Interest 6,27 5,77 Debt / Equity Ratio

6 OPERATING PERFORMANCE Electric Power Hydrocarbons Corporate, adj and other (*) Total Edison Group (mln ) % % % Sales Revenues 4,993 4, ,33 2, (1,646) (98) 6,65 5, EBITDA 1,6 1, (53) (65) 1,36 1, Depreciation and writedowns (546) (51) (92) (134) (19) (25) (657) (66) EBIT (72) (9) (*) These figures include Tecnimont and IWH results (EBITDA in 25 amount respectively to 17 and 7 million euro) 6

7 EDISON GROUP EBITDA CHANGE BY ACTIVITY ( mln) , ( 46 ) , ( 239 ) (2) (89) (76) Non core Mkt Power CIP 6, Captive, others E&P, Logistics, others Gas Supply & Sales Corporate 7

8 ELECTRIC POWER OPERATIONS TOTAL SOURCES AND USES Sources (*) (TWh) Uses (TWh) ,3 % ,4 11,3 3,4 8 3,8 3, ,3 5,1 23, % 27, ,9 3, ,9-7.% 2, Edipower production Import and domestic purchases Edison hydroelectric and wind production Edison thermoelectric production Captive and other industrial customers Deregulated market National Grid Operator (CIP6) (*) net of losses 8

9 ELECTRIC POWER OPERATIONS SOURCES/USES ON FREE MARKET Sources (*) (TWh) Uses (TWh) ,3 % ,7, ,1 3,5 1,6 7,1 25 2,4 5,5,2 3,6 2,5,1 15 4,3 3,5 15 2,5 1 15,6 15,7 1 15,2 2, , Import Domestic purchases Hydroelectric and wind production Thermoelectric production Other Losses Export IPEX - Stove Hydro to GRTN Wholesalers Eligible customers (*) gross of losses 9

10 HYDROCARBONS OPERATIONS - TOTAL SOURCES AND USES Sources (bcm) Uses (bcm) ,7 + 19,1 % ,2 3,2, % 13.6,5 4,, , ,6 1,5 4 3,4 5,7 4 6,2 7,3 2,3,3 1,, Imports Domestic purchases and changes in stock Foreign production Domestic production Imports from: Libya 3, bcm Russia 1,8 bcm Norway 1, bcm Spot,9 bcm Foreign sales Wholesalers Residential users Industrial users Thermoelectric users 1

11 EDISON GROUP LABOUR COST AND EMPLOYEES Employees (N.) (mln ) Labour Cost 24 % Corporate (*) (13) (1.3) Electric Power 1,992 1,996 (4) (1.7) Hydrocarbons Edison 2,959 2, (1.3) Edison (average) 2,927 2,943 (16) IWH 4 7 (3) Tecnimont - 1,578 (1,578) (48.3) TOTAL GROUP (year end position) 2,963 4,536 (1,573) (14.3) TOTAL GROUP (average) 4,137 4,513 (376) (*) Corporate Staff & Services to operation activities 11

12 EDISON GROUP FROM EBITDA TO NET INCOME 25 (mln ) 24 EBITDA 1,36 1,475 Depreciation (588) (572) Writedowns net of reversals (69) (88) EBIT Net financial expenses (219) (31) Other income (expense), net 92 5 Taxes (16) (88) Minority (income) loss (6) (68) Group interest in net income

13 CHANGE IN GROUP NET INCOME 87 (169) ( mln) EBITDA Depreciation and writedowns 91 Financial expenses Taxes Minority interest Other income

14 CORE BUSINESS CAPITAL EXPENDITURES ( mln) (633)* (62)* Of which New greenfield plants 345 Edipower Corporate Exploration Hydrocarbons Electric power (*) in parenthesis Group data including non core activities 14

15 CONSOLIDATED NET DEBT EVOLUTION IN 25 ( mln) (4,96) 1,36 EBITDA Financial investments net of disposals (62) Capex and exploration (219) (15) Lawsuits settlements (4,878) Operating working Net capital financial (5,451) expenses (5,315) 33 Gross Borrowings (216) (131) Income taxes paid 25 Other Gross Borrowings 545 (*) cash Dec. 31, 24 Of which - Enichem 54 mln - Oleina/Cereol 68 mln 437 (*) cash Dec. 31, 25 Of which: ( mln) - FINANCIAL INVESTMENTS : Finel 152 Adriatic LNG Terminal 16 -DISPOSALS : sale of AEM shares 161 sale of Sidi Krir 36 Of which about 3 mln related to CIP6 sales Of which - interests and fees on bonds and bank debt 25 mln - derivatives and others 14 mln (*) Current financial assets, cash in hand and equivalent 15

16 EDISON GROUP BALANCE SHEET Dec. 31, 25 (mln ) Dec. 31, 24 Intangibles 3,55 3,57 Other fixed assets 9,261 9,467 Total non current assets 12,766 12,974 Net Working Capital (1,385) (1,84) Employees Severance Indemnities (74) (88) Net Invested Capital 11,37 11,82 Covered by Stockholders Equity 6,27 5,77 Min. Interest Stockholders Equity Total Stockholders Equity 6,429 6,176 Net Borrowings 4,878 4,96 Total coverage sources 11,37 11,82 16

17 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 contract or commitment whatsoever. Some information contained herein and other material discussed at the meetings may include forward looking information based on EDISON s current beliefs and expectations. These statements are based on current plans, estimates, projections, and projects and therefore you should not place undue reliance on them. Forward looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward looking statement. Such factors include, but are not limited to: changes in global economic business, changes in the price of certain commodities including electricity, gas and coal, the competitive market and regulatory factors. Moreover, forward looking statements are current only at the date they are made. 17