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SET DISTRIBUZIONEFinancial Statements 2015
f i n a n c i a l s t a t e m e n t s 2 0 1 5
On the cover:Electric Landscape, Archive Gruppo Dolomiti Energia
Board of Directors
chairman PeROni aGOstinO
Deputy chairman cescHi alessanDRO
Directors naDalini GiOVanna cReaZZi maRinO seRRaGliO fORti manUela cOnt DeBORa DalmOneGO lUiGi
chief executive Officer QUaGlinO stefanO
Board of Statutory auditors
chairman laneR alDO
statutory auditors BOnOmi William camanini cRistina
independent auditors Pricewaterhousecoopers spa
Set Distribuzione SpA
fully paid-up share capital 112,241,777 euroVia manzoni 24 - Rovereto (tn)trento Register of companies no. – taxpayer iD and Vat no. 01932800228
management and coordination by Dolomiti energia spa
SET DISTRIBUZIONEFinancial Statements2015
f i n a n c i a l s t a t e m e n t s 2 0 1 5
REPORT ON OPERATIONS siGnificant eVents anD BUsiness cOnDUcteD, sUmmaRY Of ecOnOmic, eQUitY anD financial POsitiOns 9
tHe UnBUnDlinG ReGUlatiOn 10
inDePenDent OPeRatOR’s actiVities 11
ORGanisatiOnal stRUctURe 12
HUman ResOURces 12
assessment BY tHe italian inlanD ReVenUe 13
ResUlts Of OPeRatiOns 13
seRVices QUalitY anD cOntinUitY 14
inVestiments 15
i sYstems 16
meteRinG anD RemOte manaGement seRVice 17
ReseaRcH anD DeVelOPment 18
KeY ecOnOmic anD financial ResUlt inDicatORs - financial anD eQUitY inDicatORs 19
analisi flUssi finanZiaRi 20
analYsis Of casH flOWs - RisK analYsis - cORPORate OBJectiVes anD POlicies On RisK manaGement 20
RelatiOns WitH tHe PaRent cOmPanY anD sHaReHOlDeRs 21
tHeasURY sHaRes 23
siGnificant eVents OccURReD afteR YeaR-enD 23
BUsiness OUtlOOK 23
BOaRD Of DiRectORs’ PROPOsals tO tHe ORDinaRY sHaReHOlDeRs’ meetinG 25
fINANcIAl STATEmENTSBalance sHeet 28
incOme statement 30
NOTES TO ThE fINANcIAl STATEmENTSPRePaRatiOn cRiteRia 32
intanGiBle assets anD PROPeRtY, Plant anD eQUiPment 37
cURRent assets 41
accOUnts ReceiVaBle Of tHe cURRent assets 42
casH anD casH eQUiValents 45
PRePaYments anD accRUeD incOme 45
sHaReHOlDeRs’ eQUitY anD liaBilities 46
incOme statement 56
REPORTBOaRD Of statUtORY aUDitORs’ RePORt 73
inDePenDent aUDitORs’ RePORt 76
INDEX
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R E P O R T O N O P E R A T I O N S 98 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
Significant events and business conducted,summary of economic, equity and financial positionsDear Shareholders,
financial year 2015 is the tenth full year of operation of set Distribuzione which, as you know, began operating on 1
July 2005, following the finalisation of the purchase of the business unit relating to electricity distribution activities
and plants of enel existing in the province of trento.
set Distribuzione’s operations continued regularly also in 2015 and, as a result of the structural effects of the new
tariffs, along with the ongoing focus on aspects of operations, net of extraordinary components, profit was in line
with that of 2014. even net of the extraordinary components, this was your company’s best result ever. this con-
firms that the improvements in the revenue structure and the ongoing attention to costs have been definitively
consolidated and lead to the forecast of positive results also in the coming years.
Your company also fully confirms its place among companies of excellence in electricity distribution at national
level, as testified by the recognitions that we received again this year, as every year since 2005, from the italian
Regulatory authority for electricity, Gas and the Water system (aeeGsi) for the quality and continuity of service.
at european level, the phase of legislative changes is continuing, with the goal of redesigning tomorrow’s electricity
markets and further stimulating the development of a competitive market. these changes will be implemented
REPORTON OPERATIONS
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shortly into national regulations, and will radically transform the role of the electricity distributor from what we
have traditionally been used to considering it to be. those changes will demand your company’s ability to face a
phase of structural change, by innovating operational models and integrating new skills in addition to those tradi-
tionally available.
lastly, we deem it important, at this time, to thank the structures of your company and the Parent company Do-
lomiti energia which, through their day-to-day commitment and professionalism, have made it possible to achieve
these excellent results.
The Unbundling regulationOn 23 June 2015, at the end of a long consultation process, started on 17 July 2014 with DcO 346/2014/R/com and
ended on 26 february 2015 with DcO 77/2015/R/, the authority for electricity, Gas and the Water system with
resolution no. 296/2015, approved the new integrated text of the provisions pertaining to functional separation
obligations for companies operating in the sectors of electricity and gas (tiUf), replacing the old tiU per previous
resolution no. 11/07. While the new consolidated text maintained the rules for functional separation in its original
meaning, mainly based on taxation to companies that are the addressees of the rule of specific structural and orga-
nisational restrictions, it introduced the possible adoption of a different, new approach to the problem of structural
restrictions and audits, by promoting the development of self-auditing forms, alternative to the institutional system
of audits.
for this purpose, with resolution no. 507/2015, the authority started an experimental phase, allowing interesting
companies to submit, on a voluntary basis, a draft strengthened self-auditing form, in order to obtain a reorganisa-
tion and rationalisation of the current set-up of the structural functional separation restrictions.
this alternative solution, if it is evaluated positively at the end of the experimental phase, would provide companies
with the advance of having the structural and organisational restrictions prescribed by the tiUf markedly reduced.
Within this experimental phase, which should be completed in the summer of 2016, the Dolomiti energia Group,
through the subsidiaries set Distribuzione s.p.a. and Dolomiti Reti s.p.a. submitted to the aeeGsi, in nearly mirror-
like form, two distinct draft self-auditing procedures, both accepted by the authority and being implemented.
note that the unbundling rules tend toward introducing competition in energy sectors, deeming that “this can be
ensured only through the separation of management of both the infrastructures and information deriving from
metering services”.
in particular, the content of the obligation of functional separation is specified in art. 7, paragraph 1 of said tiUf, by
virtue of which a vertically integrated enterprise is required to grant decision-making and organisational autonomy
to each of the activities listed therein (including energy distribution and sale), separating them administratively
from all the other activities.
to that end, as already known and set out in the relevant eU directives, the company assigns the administration of
each business segment to an independent Operator (Gi).
the Dolomiti energia Group, which your company is a part of, is bound by the obligations of functional separation
pursuant to the tiUf as a Vertically integrated enterprise which, through its subsidiaries, conducts distribution,
metering and sales of electricity and natural gas [art. 8, paragraph 1 of the tiUf]. therefore, it implemented a de-
tailed plan of organisational and corporate actions for the purpose of complying with the obligations set out in the
regulations.
the current corporate structure of the Dolomiti energia Group, adopted specifically due to the need that arose regar-
ding the unbundling regulations, envisages that grid activities and electricity and gas metering be carried out by spe-
cial purpose vehicles. in particular, set Distribuzione is assigned all the activities of management of the distribution
grid and metering of electricity and natural gas, while Dolomiti Reti comprises the management of the gas network.
availing of the possibility offered by the regulations, the independent Operator of set Distribuzione has the nature
of a single-member body, located in the Board of Directors, along with directors that are not functionally indepen-
dent and, for the purpose of guaranteeing the necessary independence and separation of his action in administering
the grid infrastructures, he was assigned the powers contemplated in art. 12 of the tiUf, i.e.:
• decision-makingandorganisationalautonomy;
• congruentassignmentofresourcestocarryouthisdutiesand,specifically,toimplementtheannualandlong-
termdevelopmentplansfortheassignedinfrastructures;
• autonomyintheprocurementofgoodsandservices;
• independencefromthepartiesthatadministerotherregulatedandnon-regulatedactivities,withspecificrefe-
rence to unregulated activities – such as sales – that use grid infrastructure.
at the same time, the independent Operator has a series of obligations (art. 14 of the tiU), including:
• ensuring that the activities that it administers are managed according to criteria of efficiency, cost-effectiveness,
neutralityandnon-discrimination;
• setting up and updating a fulfilment plan containing the measures for pursing the competition purposes pur-
suant to art. 3, paragraph 1 of the tiU and, in particular, for avoiding discriminatory conduct.
Independent operator’s activities for 2015 pursuant to AEEG Resolution 11/07 (TIU) and AEEGSI Resolution 296/2015/R/COM (TIUF)the main activities and duties of the independent Operator were updated with art. 14, annex a to aeeGsi Reso-
lution 296/2015/R/cOm (tiUf).
in that regard, the independent Operator ensured that the activities administered in 2015 were managed according to
criteriaofefficiency,cost-effectiveness,neutralityandnon-discrimination;theIndependentOperatorwasprovided
with suitable resources to carry out its operations and, in particular, for the obligations of the distribution and mete-
ring service as well as to implement the annual investment plan, which was achieved based on its targets and content.
in compliance with the internal self-regulations procedures and the indications provided in that regard by the au-
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thority for electricity, Gas and the Water system, set’s independent Operator send the authority - through a speci-
fic internet site, and before the Board of Directors approved the 2016 Budget - the annual and long-term investment
plans for the period 2016-2018.
On 21 December 2015, the independent Operator sent the authority said plans, approved without any changes by
the Board of Directors on 18 December 2015.
lastly, with regard to the activities carried out by the independent Operator during the year, we note the updating
of the procedures of the Group and of set and the sending to the authority, on 22 June 2015, of the “annual Report
on measures adopted, calendar Year 2014” based on art. 14 of the tiUf.
Organisational structurethe main activities and duties of the independent Operator, originally defined in art. 11 of aeeG Resolution 11/07
(tiU) are now governed by art. 12 of aeeGsi Resolution no. 296/2015 (tiUf).
also in 2015 the ongoing process of rationalisation and development of set Distribuzione’s activities continued,
with the goal of strengthening your company’s role as a leading operator in electricity distribution in the entire
Province of trento, also following the approval of the Distribution Plan in 2013 by the autonomous Province of
trento.
in particular, during 2015 set Distribuzione completed and put into operation the activities linked to the
corporate transactions concluded at the end of 2014, meaning the takeover of management of the electricity
distribution service in the municipality of Palù del fersina.
this takeover, which took effect on 1 January 2015, occurred following the rental to set Distribuzione of the
azienda elettrica comunale business unit regarding electricity distribution, previously managed by stet s.p.a. of
Pergine Valsugana.
Human resourcesas at 31 December 2014, the company workforce was composed of: 1 executive, 7 managers, 178 office workers and
111 manual workers for a total of 297 resources.
in 2015, 7 increases were recorded: 3 manual workers and 4 office workers to replace personnel that retired.
there were 21 decreases: 14 office workers and 7 manual workers, all of whom retired.
therefore, as at 31 December 2015 the workforce was comprised as follows: 1 executive, 7 managers, 168 office wor-
kers and 107 manual workers for a total of 283 resources, a decrease of 14 on 31 December 2014.
the year 2015 was characterised by a decrease in accidents compared to the previous year (6 compared to 7 in
2014). Only two resulted in a prognosis exceeding 40 days and were not due to electrocution or commuting.
there were no injuries resulting from traffic accidents.
Assessment by the Italian Inland Revenuein 2008 the Guardia di finanza (finance Police) conducted a tax inspection in the company, after which an asses-
sment was conducted by the italian inland Revenue. this assessment charged the company with failing to apply
registration tax to the acquisition of a business unit for electricity distribution management in the trentino area
from enel Distribuzione s.p.a.
note that the transfer of the business unit was carried out through the following steps:
a) establishmentofanewCo(SETDistribuzionesrl)byENELDistribuzione;
b) contributionoftheabovebusinessunitbyENELtothenewCoestablished;
c) purchasebySETHoldingof100%oftheunitsofthenewCo;
d) transformationofthenewCofromalimitedliabilitycompany(Srl)toajoint-stockcompany(SpA);
e) reverse merger of set Holding into set Distribuzione spa.
in October 2008 set lodged an appeal against the assessment, with the first instance tax commission of trento,
which rejected it by sentence of 26 march 2009. subsequently, in february 2009 the payment order was received
in relation to the aforementioned assessment, showing taxes including sanctions, of 8,159 thousand euro. On 29
June 2009 the appointed legal advisor of the company filed an appeal with the second instance tax commission of
trento against the first instance decision.
Pending the sentence the company agreed with the trento tax authority on settlement of the amount of the
payment order (8,566 thousand euro) based on the assessment. for set, settlement of the payment order is still
offering a saving in terms of interest that the tax authority would calculate on the amounts due. the rate of interest
applied by the tax authority is 8.52% per year, significantly higher than current market interest rates. the payment
did not however preclude or affect the option of your company bringing action before the various tax tribunals at
alllevels;iftheTaxAuthorityshouldlosesuchactionitwouldberequiredtoreimbursetheentiresum,including
interest. By sentence of 21 June 2011 the second instance tax commission also rejected the appeal. convinced of
the correct nature of its operations, the company appealed against the decision before the court of cassation. for
more in-depth accounting details of that event, refer to the notes to the financial statements.
Results of operationsin 2015 operations generated positive income statement results, even though they were inevitably lower than in
the previous year, as they did not include the extraordinary asset items relating to the recovery of tariffs in arrears
present in the previous year. in particular, it is noted that:
• Theproductionvaluecameto98,105thousandeuro,comparedto113,845thousandeuroin2014,adecreaseof
13.83%;
• Thegrossoperatingmargincameto42,009thousandeuro,adecreaseofalmost30.14%comparedto60,129
thousandeurorecordedin2014;
• Consideringamortisation/depreciationof17,712thousandeuro(upbyaround311thousandeurocomparedto
2014), financial charges of 4,905 thousand euro (up by around 30 thousand euro compared to 2014) and extra-
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ordinary income of 141 thousand euro, profit before tax of 19,373 thousand euro was achieved, with a negative
differenceof18,557thousandeurocomparedto2014(+48.9%);
• Netprofitfortheyearcameto12,080thousandeuro(comparedto21,742thousandeuroin2014),adecrease
on 2014 nearing 44.44%.
also regarding the financial aspects, 2015 recorded an additional improvement on the previous year: the short-term
net financial position (thus, net of the bond loan, which matures in 2029) was a positive 44 million euro, improving
by around 4.3 million euro on 2014, though the company financed a significant investment plan required by the in-
dependent Operator, using its own equity.
the total net financial position of your company, including 110 million euro of the bond loan, therefore amounted to
a negative 65,827 thousand euro, and guarantees extremely comforting financial stability indicators (ratio of nfP to
eBitDa, in particular).
Service quality and continuityset Distribuzione continues to maintain a high standard regarding the quality and continuity of the service of supply
of electricity to users. for several years the authority for electricity, Gas and the Water system has established an
adequate level of technical and commercial quality, through a set of indicators which electricity distribution com-
panies must guarantee to their active and passive users. if said parameters, which are accurately verified by the
authority based on the information that companies are required to provide, are not met, a penalty is envisaged for
non-performing companies or compensation to users.
for service continuity, in particular, the authority divided the territory of trentino, as well as the rest of italy, into
three areas (high, medium and low concentration) based on the number of inhabitants in the municipalities. the
Quality standards and related bonuses or penalties to Distributors are set at the level of each area.
With the 2008-2011 regulatory cycle, confirmed with the 2012-2015 regulatory cycle, the aeeGsi introduced addi-
tional indicators to measure service continuity. thus, in addition to the indicator of the average minutes of outages
per low voltage user (present since the start of regulation in 2000) it added, for each area, the indicator of maximum
number of long-lasting outages (> 3 minutes) and short outages (> 1 sec), also per low voltage customer.
moreover, the authority provided for compensation to individual medium voltage and low voltage users for long-
lasting, widespread outages.
the results reported to the authority in march 2015, regarding 2014, confirm that set Distribuzione is among the best
companies in the electricity distribution sector at national level, which enabled your company to obtain a bonus of
1.56 million euro as recognition for its excellent results achieved. in detail, in each of the areas of responsibility (high,
medium and low concentration of customers), the average duration of outages in 2014 was better than the targets
that the authority assigned set based on the best service quality standards requested at national level (high concen-
tration:standard-28minutes,result-8minutes;mediumconcentration:standard-45minutes,result19minutes;low
concentration: standard - 68 minutes, result - 28 minutes).
also with regard to the number of outages, the results were better than the standards in each of the areas (high
concentration:standard-1.2,result-0.43;mediumconcentration:standard-2.25,result-1.55;lowconcentration:
standard - 4.30, result - 2.62).
as regards 2015, the data concerning service continuity confirmed the positive trend of the previous years for all areas,
with all six reference indicators performing better than the standards set by the aeeGsi and improving on 2014. as
regards commercial quality, in 2015, set Distribuzione maintained the previous years’ positive results in compliance
with the standards set by the authority for the execution times for the various services (cost estimates and simple
works on the lV grid, activation and deactivation of metering units, replacements of defective metering units, etc.).
compensation was paid to 38 users out of a total of 33,600 services executed at the specific level of commercial
Quality, thus, compliant with timeframes in 99.9% of cases.
During 2015 set actively participated in the public consultation phase launched by the aeeGsi for the purpose of
developing rules to be applied in the new regulatory period 2016-2023.
lastly, with Resolution 646/2015, the aeeGsi resolved on the new integrated text on the Quality of electrical ser-
vices (tiQe), adding the following changes on the previous regulatory period:
• Durationoftheperiodextendedfrom4to8years
• Decreaseoftheincentivelinkedtotheindicatorofdurationofoutages,partlyoffsetbypostponingtheendof
the incentive from 2020 to 2023
• Reductioninthemaximumexecutiontimesforseveralcommercialqualityservices
• Incentivesforseveralinterventionsforinnovativemanagementofthegrid.
Investimentsin addition to the works on the mV and lV grids to fulfil the connection requests from passive users (which reco-
vered slightly on the previous years) during 2015 activities continued for the purpose of connecting photovoltaic
plants (around 500) and other plants with hydroelectric generation, for total power of 37 mVa, to the grid.
conversely, as regards works on set’s initiative relating to expanding the grids, improving service and adjusting
plants to legal regulations, the volume of activities was in line with the previous years, amounting to around 4.9
million euro.
these are highly profitable works, mainly on the mV grids and secondary stations (meaning those characterised
by high returns in terms of improving the quality of service), implemented based on a plan that identified these
works in great detail.
the main investments realised by your company in 2015 can be summarised as follows:
• completionofthe“Petersen”Project,withtheinstallationof2coilsinthePrimaryStationofRoveretoPista.All
46MVhalfbusbarsofthePrimaryStationsarenowcompensatedneutral;
• numerousworkstoreplacebareconductorswithoverheadcable,foratotalof54kmofMVlines,inwooded
areaslocatedin48differentmountaindistrictsintheProvince;
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• expansionofseveralMVlinesandplantsinValdiFassaandAltaValsugana,workstoimproveserviceandin-
tegration with the set grids in the municipalities of cles and Palù del fersina, after management of plants was
takenoverfromthelocalpowercompany;
• completionoftherenovationoftheLVgridsandcentralisedswitchboards,aspartofchangingvoltage230-400
V, in the municipalities of fai della Paganella and Palù del fersina. at the end of 2015, all of set’s lV grids were
managed through a unified distribution system named tt at 230-400 V and electronic meters managed remo-
telyatallusers’premises;
• requalification of numerous obsolete secondary stations with open outfitting, with protected switchboards,
either motorised or equipped with switches, to improve service continuity and the selectivity of faults on the
medium voltage grid and to enable remote control by the trento integrated Remote control centre.
it is important to note that your company’s technical structures have drawn up a long-term plan of the need for
investment in the grid. through targeted works that have already been identified in detail, this plan covers a
time horizon up to 2020 and forms the reference foundation for the communications envisaged by the authority
in the integrated text on unbundling.
the plan was shared with the development business lines by your company’s directors and will continue, as in
recent years, to be concretely defined in the annual budgets of the next few years.
It systemsUnder the service agreement in force, the parent company Dolomiti energia develops and makes available to set
Distribuzione all the it infrastructure and systems required for company operations and to suitably fulfil the
obligations required by the authority for electricity, Gas and the Water system.
During 2015, the analysis, design and implementation of the future structure of the it system in the area of
unbundling continued. specifically, activities were completed to put into production the company processes
managed in full compliance, also in it terms, with the authority’s resolutions.
as regards applications, which have been covered by the service agreement with the Parent company for some
time, it is noted that the system of remote management of electronic meters (named “tmm”), developed by
Dolomiti energia is available in its now definitive version, both to set and to a further ten distributors in the
Province of trento, as well as siR (Grid it system).
note that the siR system was developed specifically to manage the grids of the Dolomiti energia Group and acts
as the centre of gravity for the main company flows, specifically between the commercial management area, the
remote manager tmm and the remote control of the grids, incorporating the distribution data structures and
work processes and unifying all the it management logics of technical data.
the functions make available through siR which are of interest to the company include the simulation of me-
dium and low voltage electrical grids and control of periodic summary data regarding service quality, in complian-
ce with the principles promoted by the aeeGsi resolutions, in addition to other applications to improve, monitor
and automate several company operating processes.
During 2015 numerous functionalities of the siR system were further improved and fine-tuned, also in line with
the provisions of the aeeGsi, and are now extensively used by all of the Group’s technical structures.
During 2015 a tender was held that assigned the development of m-siR (mobile siR), i.e. a project that will
provide technical-plant information through mobile devices for technicians and operational teams, guaranteeing
viewing and searching for data both online and offline. this project will be developed in the first half of 2016
and is included in the mobile project for company data and workforce management, named Wfm (Work force
management).
it development activities also involved the following:
• DevelopmentofintegrationwiththeIntegratedITSystem,accordingtotheprovisionsofResolution398/2014,
for managing the electricity transfer process.
• Adjustmentoftheequipmentforobtainingprofile-basedmeasurementsforpublicationoftheflowsonthe
integrated it system, as envisaged by Resolution 640/2014.
• FirstlotofworkstoadjustthesystemstothenewElectricityGridCode(Resolution268/2015),andinparti-
cular, the optimisation of equipment for taking non-hourly periodic measurements and controls on publication
of the same for the purpose of monitoring the timeframes for making them available to sellers. During 2016 the
works will be implemented for the complete adjustment of the systems to the Grid Distribution code (caDe),
as regards the periodic adjustment of the guarantees required from sellers by set, and the new methods for
invoicing sellers (pending the publication by the aeeGsi of communication standards for invoicing documents
and annexes).
• AdjustmentofthenewcommunicationflowsandrelatedstandardsdefinedbytheIntegratedTextonEnergy
and Gas Bonuses (tiBeG).
• UpgradingoftheIntegratedTextonActiveConnections(TICA)forelectricityproducers.
• Otherminorupgradesofthedistributionsystems.
On the infrastructure front, we note the realisation of the fibre optic connection with the offices in tuenno.
Metering and remote management servicein 2015, set Distribuzione worked on the optimisation of the remote control operation technique, obtaining excel-
lent quality results, among the best in italy.
the in-depth studies carried out at withdrawal points that could not be reached by the remote management system
nonetheless confirmed the increase in interference with the propagation of the waves conveyed on the low voltage
grid, caused by user devices owned by the end customers. important resources were dedicated to the search and eli-
mination of interference sources, with the goal of avoiding the rapid degradation of the performance levels reached,
considering that the new Grid code (caDe) prescribes, from the end of 2015 onwards, automatic indemnities which
the distributor must pay to sellers in the event of missing readings under a certain threshold.
also in the area of electricity, the procedures for reading and validating measurement data were fine-tuned for
points of delivery with hourly treatment. the new procedures for acquiring hourly measurements using PDas for
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POD points not reached through remote connection made it possible to achieve the goal of 100% availability of
hourly data, despite the increasingly short timeframes imposed by regulations for making the data available to the
sales companies.
instead, as regards the metering service for the natural gas provided to Dolomiti Reti, we note the finalisation of
the remote reading of class G16 meters, using the centralised system that is now in its definitive version as regards
point-point technique, as well as the optimisation of the management and provision of the daily consumption data
for the over one thousand redelivery points that envisage such treatment.
the field tests for mass-market utilities (classes G4-G6) continued through demonstrative remote management
system based on point-multipoint technique via radio at 169 mHz.
Research and developmentin 2015, activities with high innovation content continued, on one hand with the reservation of strategic rela-
tionships and on the other with the implementation of real solutions in support of corporate processes, of the ope-
ration and advanced management of the grid of the near future, also in compliance with the indications of aeeGsi.
the activities of the sunshine Project - cofunded by the european Union - continued, including participation in
several public presentations of results, and involving the implementation of real time programming and diagnostic
systems for a number of public lighting systems in the municipality of Rovereto.
During the year, the experience of using certain electric vehicles issued to your company’s personnel was confirmed
to be positive and the necessary initiatives were started to assure, in 2016, the more generalised availability of cer-
tain public recharging stations for electric vehicle throughout the served territory.
During the year, the initial analysis phase of the Wfm project concluded. in the years to come, this project will im-
prove your company’s efficiency by making mobile it tools available, on which apps will be issued dedicated to the
various activities. in particular, at the end of 2015 the tender for the provision of the first app was assigned, which
will make available configuration layouts and technical data of all grids and networks managed.
Personnel continued in their commitment to guarantee participation in technical committees and strategic work
groups, both in italy and europe.
Key economic and financial result indicatorsecOnOmic inDicatORs
Indice Formula 2015 2014 differenza
ROe net Profit/equity 8.3% 16.7% -8.4%
ROi eBit/invested capital 6.0% 10.8% -4.8%
ROs eBit/turnover 24.6% 37.4% -12.8%
eBitDa Gross operating margin 42,009,149 60,129,012 (18,119,863)
eBit net operating margin 24,137,579 42,576,533 (18,438,954)
all economic indicators were lower than the previous year.
financial anD eQUitY inDicatORs
Index Formula 2015 2014 difference
Hedging of fixed net assetsequity+medium/long-term liabilities/fixednet assets
1.10 1.08 0.02
Debt ratio liabilities/equity 1.57 1.60 (0.02)
Degree of amortisation amortisation provision/gross fixed assets 0.55 0.55 0.01
secondary liquidity ratio short-term assets/short-term liabilities 1.45 1.38 0.07
the financial and equity indicators are in line with values from the previous year. also note that the liquidity
ratio improved further as a result of the profit for the year 2015.
R E P O R T O N O P E R A T I O N S 2120 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
Analysis of cash flowscasH flOW statement Of casH flOWs 2015
OPeninG casH anD casH eQUiValents 39,858,748
casH flOW 28,619,356
cHanGes in net WORKinG caPital 399,362
OPeRatinG casH flOW 29,018,718
ecOnOmic inVestment actiVitY (18,314,934)
sale Of assets 326,067
financial inVestment actiVitY -
net cHanGe in sHORt anD meDiUm-lOnG teRm lOans -
OtHeR 18,527
fRee casH flOW 11,048,378
cHanGe in eQUitY -
DiViDents (6,734,506)
net casH flOW 4,313,872
clOsinG casH anD casH eQUiValents 44,172,620
OPeninG net financial POsitiOn (70,141,252)
incRease/DecRease Of net financial POsitiOn 4,313,872
clOsinG net financial POsitiOn (65,827,380)
as regards the analysis of cash flows, centralised treasury balances were reclassified from the items regarding
accounts payable to/receivable from the parent company to those relating to bank amounts payable/receivable
in order to better illustrate the trend in the cash flows.
Risk analysis – Corporate objectives and policies on risk managementCredit riskthe company’s clients are mainly electricity wholesalers and, among these, the largest is the associated company trenta
s.p.a.
credit is monitored constantly during the year to ensure that the total always expresses its estimated realisable value.
Liquidity riskthe main liquidity risk that the company is exposed to is the potential difficulty of promptly obtaining funds to support
its normal business activities. to ensure the company has the necessary financial means for carrying out ordinary busi-
ness, it has stipulated a service agreement for finance management with the parent company Dolomiti energia, which
makes provision for treasury management under a “cash pooling” arrangement and surety management activities.
the company’s financial position is constantly monitored by the specifically-assigned office and does not exhibit any
problems. the financial position includes a bullet, fixed-rate bond loan of 110 million euro, maturing in 2029, issued on
acquiring the electricity distribution business unit from enel Distribuzione spa.
Market riskthe company exclusively operates on the national market and is thus not exposed to floating currency exchange rates.
the tariffs determining the consideration for electricity distribution are instead decided by the aeeG and are therefore
unlikely to change except in regulatory terms.
the risk of fluctuations in interest rates is limited, as financial exposure is represented by the fixed-rate bond loan
mentioned above, with duration until the concession ends. changes in interest rates could influence the index-linked
floating rate short-term deposit.
Relations with the parent company and shareholdersRelations with Dolomiti energia are governed by a service agreement which, during the year, made provision for equal
remuneration for the services performed by shareholders to set Distribuzione or by the company to its shareholders.
set Distribuzione’s decision not to set up its own operational structure to manage the various technical-administrative
activities resulted in significant management economies.
the activities carried out for set Distribuzione mainly regard administrative-management activities, and specifically
refer to general services (premises, logistics, cleaning, security, etc.), the outsourced set up and provision of it systems
(regarding the components of hardware, software and communications and network infrastructure), administration in
the strict sense, personnel administration and procurement of products and services.
a cash pooling agreement is also in place with cash pooling which is used to implement the cash pooling service. set Di-
stribuzione also participates in the national tax consolidation regime with its direct parent company Dolomiti energia.
the profit and loss items relating to those relationships are illustrated in detail in the notes to the financial statements.
R E P O R T O N O P E R A T I O N S 2322 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
RelatiOns WitH DOlOmiti eneRGia GROUP cOmPanies
the tables below summarise the economic and financial relations with the companies in the Dolomiti energia Group.(amount in euro)
Tradereceivables
Financial receivables
Trade payables
Loanspayables
Dolomiti energia spa 89,726 49,215,117 850,166 975,001
trenta spa 21,804,740 - 21,440,481 -
Dolomiti energia Rinnovabili srl 732 - 38,503 -
Dolomiti Reti spa 276,569 - 112,941 -
multiutility spa 21,464 - 37,701 -
Dolomiti ambienti srl - - 12,500 -
total 22,193,231 49,215,117 22,492,293 975,001
(amount in euro)
Revenue PurchasesFinancial
income
Financial
chargesGoods Services Other Goods Services Other
Dolomiti
energia spa- 420,283 - 349,804 3,509,040 192,000 87,524 -
trenta spa - 51,995,267 - - 157,870 127,315 - 349
Dolomiti energia
Rinnovabili srl- 1,380 - - 82,771 - - -
Dolomiti Reti spa - 1,140,249 - 400 505,852 - - -
Hydro Dolomiti
enel srl- - - - - 2,535 - -
multiutility spa - 23,772 - - - - - -
Dolomiti ambiente
srl- - - - 50,180 - - -
total - 53,580,951 - 350,204 4,305,713 321,850 87,524 349
Theasury sharesas at 31 December 2015, set Distribuzione spa did not hold treasury shares, nor did it carry out directly, indirectly
through subsidiaries or associates, through trust companies or third parties, purchases or sales of such shares in 2015.
as at 31 December 2015, the subsidiaries, associates and related parties did not hold shares of set Distribuzione, nor
did they carry out purchases or sales of such shares in 2015.
During the year, no shares with dividend entitlement, bonds convertible in shares or other securities or similar instru-
ments were issued.
Significant events occurred after year-endthere were no significant events after year-end.
Business outlooktariff regulations relating to the distribution service and the electricity metering service were governed by the
aeeGsi (hereinafter, the “authority”) for the regulatory period 2016-2019 through Resolution aRG/elt no. 654/15
of 23 December 2015.
therefore, the authority determined, separately for each service - transmission, distribution and metering - the tariff
levels for 2016-2019 based on the cost recognised, which includes:
a) operatingcostsrecognised;
b) amortisationanddepreciationoffixedassets;
c) remuneration of invested capital recognised.
the value of invested capital recognised was obtained by applying the criterion of historical cost revalued in con-
tinuity with the previous regulatory period, with the exception of net invested capital recognised relating to mV/
lV infrastructure prior to 2008, taken from revenues from tariffs for 2010, current and adjusted. the calculation of
assets for which the accumulated economic-technical amortisation/depreciation as at 31 December 2015 did not
fully cover the gross value of the assets net of subsequent revaluations were included. as a change on the previous
regulatory period, investments of year t-1 were also calculated, analogous to that envisaged in the gas distribution
sector (previously, investments made up to year t-2 were considered).
amortisation and depreciation recognised in the tariff was determined on a straight-line basis, starting with the va-
lues of the conventional durations of the assets defined by the authority based on the residual economic-technical
life of the assets. starting in 2016 the authority redefined the useful lives of mV and lV grids that entered into force
after 2007, bringing them from 30 to 35 years.
R E P O R T O N O P E R A T I O N S 2524 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
the real pre-tax rate of return on invested capital was determined as the weighted average of the rate of return
on risk capital and the cost of debt (Weighted average cost of capital, Wacc). compared to the previous regu-
latory period, the variable country Risk Premium was added to take account of the country risk associated with
investments in risk capital in countries with low ratings.
the authority set the real pre-tax Wacc for distribution and metering services at 5.6% compared to 6.4% in the
previous regulatory period. said reduction is the result of the trend in interest rates of public debt securities in the
recent past. it must be observed that the reduction would have been greater if the authority had not attenuated
the impact of the decrease in yields on said securities, by adopting certain shortcuts, including that referred to above
relating to the country Risk Premium.
With Resolution no. 268/R/eel of 2015, the aeeGsi also eliminated the possibility of withholding 0.5% of the
levies on system charges starting from 2016.
this change in tariffs should result in a reduction in revenues from tariffs, with the resulting reduction in the opera-
ting margin of around 3 million euro.
Board of Directors’ proposals to the ordinary Shareholders’ meetingWith the approval of these financial statements, the term of the Board of Directors expires. thus, we take this op-
portunity to thank the shareholders for the trust they have shown in us and for the active cooperation of the Board
of statutory auditors and all employees.
We wish the new board all the best in its work and invite you to approve the financial statements that we hereby
submit, confirming that:
thefinancialstatementsarebasedonaccountingrecordsheldinstrictcompliancewithactualbusinessoperations;
all costs and revenues were regularly counted.
therefore, we propose that you:
- approvetheBoardofDirectors’ReportonOperations;
- approvethefinancialstatementsfortheyearendedasat31December2015,assubmittedtoyou;
- allocate the profit for the year of 12,080,108 euro as follows:
• 604,005euro,i.e.5%,tothelegalreserve;
• 6,734,507euroasordinarydividendtoshareholders,correspondingto0.06europershare,andalsopropo-
singthatthedividendbepaidfrom1June2016;
• 4,741,596eurototheextraordinaryreserve.
Rovereto, 11 march 2016 SET Distribuzione SpA
the chairman
agostino Peroni
SET DISTRIBUZIONE SPAFinancial Statements2015
B A L A N C E S H E E T - f i N A N C i A L S T A T E M E N T S 2928 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
(amount in euro)
BALANCE SHEET - ASSETS 31/12/2015 31/12/2014
a) sUBscRiBeD caPital UnPaiD
B) fiXeD assets
i. immobilizzazioni immateriali
1) staRt-UP anD eXPansiOn cOsts 5,555
2) ReseaRcH, DeVelOPment anD aDVeRtisinG cOsts 5,961 3,086
5) GOODWill 28,513,850 30,414,773
7) OtHeR intanGiBle assets 384,044 384,664
total 28,903,855 30,808,078
ii. PROPeRtY, Plant anD eQUiPment
1) lanD anD BUilDinGs 22,278,418 22,468,246
2) Plants anD eQUiPment 224,782,271 220,396,907
3) inDUstRial anD cOmmeRcial fittinGs 19,252,449 20,876,624
4) OtHeR assets 766,236 895,638
5) WORK in PROGRess anD aDVance PaYments 5,000 266,191
total 267,084,374 264,903,606
iii. financial fiXeD assets
2) accOUnts ReceiVaBle WHicH aRe fiXeD assets
d) Others 38,774 57,301
total 38,774 57,301
total fixed assets 296,027,003 295,768,986
c) cURRent assets
i. inVentORies
1) RaW mateRials anD cOnsUmaBles 2,840,337 2,632,446
total 2,840,337 2,632,446
ii. accOUnts ReceiVaBle Of tHe cURRent assets
1) accOUnts ReceiVaBle - UseRs anD cUstOmeRs 9,253,110 10,143,338
4) accOUnts ReceiVaBle - PaRent cOmPanies 49,304,843 40,642,281
4)bis taX cReDits 1,139,044 703,475
4)ter PRePaiD taXes 7,438,085 8,256,748
5) accOUnts ReceiVaBle - OtHeRs, sHORt-teRm 38,148,587 35,740,803
total 105,283,669 95,486,646
iii. sHORt-teRm inVestments
total - -
iV. casH anD casH eQUiValents
1) BanK anD POstal cURRent accOUnts 20,522 4,508
3) casH On HanD 1,479 1,776
total 22,001 6,284
total current assets 108,146,007 98,125,376
D) accRUals anD DefeRRals
PRePaYments 69,221 81,355
total Prepayments and accrued income 69,221 81,355
tOtal assets 404,242,231 393,975,716
(amount in euro)
BALANCE SHEET - LIABILITIES 31/12/2015 31/12/2014
a) sHaReHOlDeRs’ eQUitY
i. sHaRe caPital 112,241,777 112,241,777
ii. sHaRe PRemiUm ReseRVe 2,517,012 2,517,012
iV. leGal ReseRVe 2,428,086 1,341,007
Vii. OtHeR ReseRVes
eXtRaORDinaRY ReseRVe 27,807,057 13,887,068
- rounding reserves (3)
iX. PROfit OR lOss fOR tHe YeaR 12,080,108 21,741,574
total shareholders’ equity 157,074,040 151,728,435
B) PROVisiOn fOR RisKs anD cHaRGes
2) PROVisiOn fOR incOme taXes (inclUDinG DefeRReD taXes) 3,055,738 3,625,259
total 3,055,738 3,625,259
c) emPlOYee teRminatiOn Benefits 3,862,017 4,465,571
D) accOUnts PaYaBle
1) BOnDs
- after 12 months 110,000,000 110,000,000
4) accOUnts PaYaBle - BanKs
- within 12 months 699 757
7) tRaDe PaYaBles
- within 12 months 41,735,103 35,570,525
11) accOUnts PaYaBle - PaRent cOmPanies
- OtHeR 1,825,168 4,557,355
12) taX PaYaBles
- within 12 months 479,590 533,974
13) sOcial secURitY PaYaBles
- within 12 months 789,723 795,579
14) OtHeR accOUnts PaYaBle
- within 12 months 2,372,657 1,823,625
- after 12 months 22,140,985 21,920,560
total 179,343,925 175,202,375
e) accRUeD liaBilities anD DefeRReD incOme
accRUeD liaBilities 2,155,214 2,155,002
DefeRReD incOme 58,751,297 56,799,074
total 60,906,511 58,954,076
tOtal sHaReHOlDeRs’ eQUitY anD liaBilities 404,242,231 393,975,716
B A L A N C E S H E E T - f i N A N C i A L S T A T E M E N T S 3130 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
(amount in euro)
INCOME STATEMENT 31/12/2015 31/12/2014
a) PRODUctiOn ValUe
1) ReVenUe fROm sales anD seRVices 80,329,364 78,697,835
4) incReases in fiXeD assets fOR in-HOUse PROJects 7,083,044 6,374,742
5) OtHeR ReVenUe anD incOme (nO sale/seRV.)
Other revenue 10,628,660 28,688,261
Plant-related grants and portion of operating grants 64,161 84,234
tOtal PRODUctiOn ValUe 98,105,229 113,845,072
B) PRODUctiOn cOsts
6) eXteRnal PURcHases Of RaW mateRials, cOnsUmaBles anD meRcHanDise (4,817,942) (3,974,764)
7) eXteRnal PURcHases Of seRVices (25,942,179) (24,218,384)
8) cOsts fOR Use Of tHiRD PaRtY assets (2,144,125) (2,126,792)
9) PeRsOnnel cOsts
a) Wages and salaries (12,221,879) (12,259,303)
b) social security costs (3,855,710) (3,925,217)
c) employee termination benefits (813,274) (830,320)
e) Other costs (545,784) (548,542)
10) amORtisatiOn, DePReciatiOn anD WRite-DOWns
a) amortisation of intangible assets (1,954,276) (1,950,219)
b) Depreciation of property, plant and equipment (15,758,047) (15,451,369)
d) Write-down of accounts receivable recognised to current assets (159,247) (150,891)
11) cHanGe in inVentORies Of RaW mateRials, cOnsUmaBles anD meRcHanDise 207,890 (427,277)
14) OtHeR OPeRatinG cOsts (5,963,077) (5,405,462)
tOtal PRODUctiOn cOsts (73,967,650) (71,268,540)
DiffeRence BetWeen PRODUctiOn ValUe anD cOsts 24,137,579 42,576,532
c) financial incOme anD cHaRGes
15) incOme fROm inVestments
Parent companies 87,524 129,040
Other 66,764 67,285
17) inteRest anD OtHeR financial cHaRGes
- PaRent cOmPanies
- OtHeR (5,059,594) (5,070,787)
tOtal financial incOme anD cHaRGes (4,905,306) (4,874,462)
(amount in euro)
31/12/2015 31/12/2014
D) ValUe aDJUstments Of inVestments
18) ReValUatiOns Of inVestments
19) WRite-DOWns Of inVestments
tOtal ValUe aDJUstments Of inVestments - -
e) eXtRaORDinaRY incOme anD cHaRGes
20) eXtRaORDinaRY incOme
- cOntinGent assets anD nOn-eXistent assets 143,114 150,816
- OtHeR eXtRaORDinaRY incOme 85,353
21) eXtRaORDinaRY cHaRGes
- taXes RelatinG tO PRiOR PeRiODs (2,301) (329)
- cOntinGent liaBilities anD nOn-eXistent liaBilities (7,549)
tOtal eXtRaORDinaRY items 140,813 228,291
PROfit BefORe taX 19,373,086 37,930,361
22) incOme taXes fOR tHe YeaR
- current taxes (7,043,836) (16,123,637)
- Deferred taxes 569,521 1,196,737
- Prepaid taxes (818,663) (1,261,887)
23) Profit (loss) for the year 12,080,108 21,741,574
these financial statements are truthful, actual and conform to the accounting records.
set Distribuzione spa
the chairman
agostino Peroni
Rovereto, 11 march 2016
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 33
Preparation criteriathe financial statements were prepared on the basis of the provisions set forth in articles 2423 et seq. of the ita-
lian civil code, supplemented by the accounting standards issued by the italian accounting standard authority
(Oic), which also updated the standards originally prepared by the italian accounting profession.
these financial statements are expressed in euro.
furthermore:
a) thevaluationcriteriaarethosesetforthinArticle2426oftheItalianCivilCode;exceptionalcaseswhich
would make it necessary to not apply the valuation criteria set forth, since incompatible with the “true and
fair view” of the equity and financial situation as well as the economic result of the company, pursuant to
Article2423,4thparagraph,werenotidentified;
b) theitemsoftheBalanceSheetandtheIncomeStatementwerenotgrouped;
c) there are no asset and liability items that fall under more than one item in the statement.
the financial statements items are comparable with those from the previous year.
Principles applied in the valuation of Financial Statements itemsthe financial statement items were measured on the basis of general criteria of prudence and accrual under the
assumption that the company is a going concern, as well as taking into consideration the economic function of
the asset and liability item considered.
NOTES TO ThEfINANcIAlSTATEmENTS
the application of the principle of prudence entailed individually measuring the elements making up the indivi-
dual asset and liability entries or items, in order to avoid offsetting items that should be recognised and profits
that should not be recognised because not realised.
in compliance with the accrual principle, the effect of transactions and other events was stated for accounting
purposes and attributed to the year to which those transactions and events refer, and not to that in which the
relative cash movements actually take place (collections and payments).
the measurement criteria adopted in preparing the financial statements are described below.
INTANGIBLE ASSETS
intangible assets, characterised by a lack of tangibility, are represented by costs which do not terminate their
utility in the period they are incurred, but rather manifest economic benefits over several years. they are sta-
ted at the purchase cost effectively incurred inclusive of related charges, and/or at production cost if created
internally, which includes all the costs directly attributable and also the portion of the indirect costs reasonably
attributable to the asset.
they are stated net of the portions of amortisation, calculated systematically on a straight-line basis in relation
to their residual useful life.
in the event of impairment, regardless of the depreciation already accounted for, the asset is correspondingly
writtendown;iftheassumptionsonwhichthewrite-downisbasedarenolongervalidinsubsequentyears,the
original value is written back, only adjusted by depreciation.
start-up and expansion costs (amortised over a period of 5 years) and research, development and advertising
costs (amortised over 3 years) are recognised under the balance sheet assets with the consent of the Board
of statutory auditors. the goodwill generated by acquisitions of businesses and mergers are amortised over a
period corresponding to its useful life, determined in relation to the type of business to which it refers. Other
multi-year costs are amortised based on the duration of the contracts to which they refer.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment include assets held for long-term use whose economic utility extends beyond the
limits of one year, acquired from third parties or produced internally. the cost effectively incurred for the acqui-
sition of the asset also includes the related costs, incurred so that the fixed assets can be used. the production
costs include all the costs directly attributable to the asset (typically materials and direct labour) and the portion
of other general production costs reasonably attributable to the fixed asset. there were assets subject to reva-
luation pursuant to law no. 266 of 23 December 2005.
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3534 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
they are stated net of the portions of depreciation, calculated systematically on a straight-line basis in relation
to their residual useful life. the depreciation period begins from the year in which the asset is available and ready
for use, and for assets acquired during the year the rate is halved, to take into account the minor use. in particu-
lar, depreciation is mainly calculated according to the rates shown below:
- primary and secondary substations, satellite centres, transformers, lV/mV grids, connections 2,9%
- electronic metering units 6,7%
- furniture and office machines 5,6%
- electronic office machines 16,7%
- motor vehicles 12,5%
in the event of impairment, regardless of the depreciation already accounted for, the asset is correspondingly
writtendown;iftheassumptionsonwhichthewrite-downisbasedarenolongervalidinsubsequentyears,the
original value is written back, only adjusted by depreciation.
extraordinary maintenance charges increase the book value of the fixed assets to which they refer, since they in-
creasetheproductioncapacityortheusefullifeattributabletotheexistingasset;ordinarymaintenancecharges
are booked to the income statement.
no financial charges relating to loans possibly obtained for the construction and manufacture of assets, have
been capitalised.
ACCOUNTS RECEIVABLE
Receivables are stated at face value under financial fixed assets or under current assets depending on their nature
and intended use. they are stated net of the related allowance for doubtful receivables, established to estimate
the possible losses deriving from non-collectability which, as of the date these financial statements were drawn
up, are foreseeable and intrinsic, so as to reduce them to the estimated realisable value.
INVENTORIES
inventories represent assets destined for sale or which contribute to their realisation in the normal activities
of the company and mainly include raw, ancillary and consumable materials. the assets in inventories are re-
cognised at purchase cost, inclusive of related charges. the inventories are valued in the financial statements
atthelowerbetweencostandtherealisablevaluebasedonthemarketasoftheyear-enddate;thecostofthe
replaceable assets is determined using the weighted average cost method, since the quantities purchased are not
individually identifiable, but are included in a series of assets equally available.
ACCRUALS AND DEFERRALS
these represent the costs and income common to two or more accounting periods, the amount of which varies
over time. the amount of the accruals and deferrals is determined by means of the breakdown of the revenue or
the cost, for the purpose of allocating just the pertinent portion to the current period.
for multi-year accruals and deferrals, the conditions that led to the initial posting were verified, making suitable
changes where necessary.
ACCOUNTS PAYABLE
Payables include specific and certain liabilities, which represent obligations to pay a determinate amount usually
on an established date. they are recognised at their face value, adjusted by returns or invoicing adjustments.
PROVISIONS FOR RISKS AND CHARGES
Provisions for risks and charges include costs and liabilities of a specific nature whose existence is certain or
probable, but whose timing and extent are unknown as of the year end date. the provisions represent a realistic
estimate of the liability to be incurred on the basis of the information available. When evaluating these provi-
sions, the general principles of prudence and accruals are observed and steps are not taken to establish generic
provisions lacking economic justification.
EMPLOYEE TERMINATION BENEFITS
the employee termination benefits are provided on an accruals basis in compliance with the law and employment
contracts in force, considering all types of continuous wages and salaries. the amount recorded in the financial
statements reflects the effective liability accrued in favour of employees as at the year-end date, net of advances
paid out, and equals that which would be due to employees if their employment were to end on that date.
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3736 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
OPERATING REVENUES AND COSTS
the positive and negative components of income are established and recorded on an accruals basis with appro-
priate recognition of the accruals and deferrals and in accordance with the matching between costs and revenues.
sales revenues and purchase costs are recorded net of returns, discounts, allowances and premiums, as well as the
taxes directly associated with the sale or the purchase of products and services.
INCOME TAXES FOR THE YEAR
the current taxes for the year are established on the basis of a realistic forecast of the taxable income pertaining
to the year, in accordance with current tax legislation and are stated, net of the advances paid and the withhol-
dings made, in the item tax payables (in the event a net payable emerges) and in the item tax receivables (in the
event a net credit emerges).
Prepaid and deferred taxes are provided for on the timing differences between the value assigned to an asset
or liability on the basis of statutory criteria and the corresponding value for tax purposes. in observance of the
prudent principle, prepaid taxes are recognised if their future recovery is reasonably certain.
any estimation variations (including rate variations) are allocated to the taxes for the year.
MEMORANDUM ACCOUNTS
these include the guarantees provided by the company, both secured and unsecured, the commitments un-
dertaken vis-à-vis third parties and the value of third party assets lodged with the company. the guarantees
given are recorded at the value of said guarantee or, if this cannot be determined, at the best estimate of the
riskundertaken;thecommitmentsarerecognisedatfacevalue;thirdpartyassetslodgedwiththeCompanyare
recorded at face value for unlisted fixed income securities, at current market value for listed securities and assets
and residually at the value taken from existing documentation. these values are subject to systematic review
and possible adjustment as of the year-end date. specific information is provided in the notes for guarantees
received from third parties.
the content and significance of the main financial statements items are illustrated below.
Assets
INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT
the changes in historic costs during the year, including any revaluation, were as follows:(amount in euro)
intanGiBle assets anD PROPeRtY, Plant anD eQUiPment
Opening balance
Increases Decreases
"Reclassi-fications
asset startups"
Closing balance
i) intanGiBle assets
staRt-UP anD eXPansiOn cOsts 1,651,919 - - - 1,651,919
ReseaRcH, DeVelOP. anD aDVeRt. cOsts 2,009,916 4,559 - - 2,014,475
inDUstRial Pat. anD int. PROP. RiGHts 1,292,285 - - - 1,292,285
GOODWill 47,550,507 - - - 47,550,507
OtHeR intanGiBle assets 558,069 45,494 - - 603,563
i) intanGiBle assets 53,062,696 50,053 - - 53,112,749
ii) PROPeRtY, Plant anD eQUiPment
1) lanD anD BUilDinGs
lanD 3,418,805 31,747 (4,500) - 3,446,052
inDUstRial BUilDinGs 34,896,770 556,780 (17,712) - 35,435,838
Office BUilDinGs 707,566 16,842 - - 724,408
39,023,141 605,369 (22,212) - 39,606,298
2) Plants anD eQUiPment
electRicitY sUBstatiOns 109,262,850 2,757,736 (170,642) 28,505 111,878,449
elec. DistRiBUtiOn GRiDs 415,863,469 13,921,390 - 172,686 429,957,545
525,126,319 16,679,126 (170,642) 201,191 541,835,994
3) inDUstRial anD cOmm. fittinGs
fittinGs 3,355,424 81,251 - - 3,436,675
RemOte cOntROl 9,766,629 246,354 - 60,000 10,072,983
meteRs 29,206,537 479,610 (462,496) - 29,223,651
42,328,590 807,215 (462,496) 60,000 42,733,309
4) OtHeR assets
fURnitURe anD Office macHines 329,149 7,153 - - 336,302
electROnic Office macHines 1,097,169 (319,743) - 777,426
DeDUctiBle VeHicles 1,851,226 166,020 (7,085) - 2,010,161
3,277,544 173,173 (326,828) - 3,123,889
5) WORK in PROGRess anD aD. PaYments
WORK in PROGRess anD aD. PaYments 266,191 - - (261,191) 5,000
ii) PROPeRtY, Plant anD eQUiPment 610,021,785 18,264,883 (982,178) - 627,304,490
tOtal Bi) + Bii) 663,084,481 18,314,936 (982,178) - 680,417,239
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3938 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
start-up and expansion costs are connected with the incorporation of the company, with extraordinary corporate
transactions relating to the acquisition of the distribution grids from enel spa and the merger by absorption of
set Holding spa.
Research, development and advertising costs regard the provision by the parent company Dolomiti energia spa
of the equipment and licences to initiate management of the “electronic metering” project. that cost is appor-
tioned over the duration of the service agreement entered into with that company and, thus, for a period of 3
financial years.
industrial patent and intellectual property rights relate to the purchase cost of software licences (saP R3).
Goodwill derives mainly from the following transactions:
- the acquisition of the former enel business unit and the resulting merger with set Holding spa for an original
amountof47,498,618euro;
• theacquisitionofthepowercompanyofTerlagoforanoriginalamountof20,000euro;
• theacquisitionofthepowercompanyofVervòforanoriginalamountof2,000euro;
• theacquisitionofthepowercompanyofTresforanoriginalamountof2,000euro.
the value of goodwill pursuant to the first transaction indicated is equal to the higher price settled to purchase
the business unit as compared to its shareholders’ equity, not allocated to the asset acquired (already revalued
during 2005 in compliance with law no. 266 of 23 December 2005).
TheotheramountsderivefromthedifferenceintheconsiderationsettledbytheMunicipalitiesofTerlago,Vervò
and tres for the purchase of the respective municipal power companies and the value of the assets transferred.
Goodwill is amortised based on the duration of the concession, which is currently set to expire on 31 December
2030.
Other intangible assets refer to the commissions charged by the Royal Bank of scotland for the issue of the bond
loan, and are amortised over a period equal to the duration of the bond loan.
for property, plant and equipment, it is noted that, in compliance with a.e.e.G. Resolution no. 292/06, as at 31
December 2015, the percentage of analogue meters replaced with electronic meters was 99.93%.
Ordinary amortisation of intangible assets and depreciation of property, plant and equipment resulted in the
allocation of the following amounts, respectively, to the provisions set up in the accounts: 1,954,276 euro and
15,758,047 euro. the movements in the accumulated amortisation and depreciation for intangible fixed assets
and property, plant and equipment for the year 2015 are shown in the following table.
(amount in euro)
intanGiBle assets anD PROPeRtY, Plant anD eQUiPment
Opening balance
DecreasesAmortisation/ Depreciation
Closing balance
i) intanGiBle assets
staRt-UP anD eXPansiOn cOsts (1,646,364) - (5,555) (1,651,919)
ReseaRcH, DeVelOP. anD aDVeRt, cOsts (2,006,830) - (1,684) (2,008,514)
inDUstRial Pat. anD int. PROP. RiGHts (1,292,285) - - (1,292,285)
GOODWill (17,135,734) - (1,900,923) (19,036,657)
OtHeR intanGiBle assets (173,405) - (46,114) (219,519)
i) intanGiBle assets (22,254,618) - (1,954,276) (24,208,894)
ii) PROPeRtY, Plant anD eQUiPment
1) lanD anD BUilDinGs
lanD (334,624) - - (334,624)
inDUstRial BUilDinGs (16,139,424) 8,542 (764,638) (16,895,520)
Office BUilDinGs (80,847) - (16,889) (97,736)
(16,554,895) 8,542 (781,527) (17,327,880)
2) Plant anD eQUiPment
electRicitY sUBstatiOns (58,590,217) 152,887 (2,714,486) (61,151,816)
elec. DistRiBUtiOn GRiDs (246,139,195) - (9,762,712) (255,901,907)
(304,729,412) 152,887 (12,477,198) (317,053,723)
3) inDUstRial anD cOmm. fittinGs
fittinGs (2,466,296) - (130,121) (2,596,417)
RemOte cOntROl (7,791,977) - (187,482) (7,979,459)
meteRs (11,193,693) 229,563 (1,940,854) (12,904,984)
(21,451,966) 229,563 (2,258,457) (23,480,860)
4) OtHeR assets
fURnitURe anD Office macHines (107,422) - (18,684) (126,106)
electROnic Office macHines (1,023,708) 261,831 (11,479) (773,356)
DeDUctiBle VeHicles (1,250,776) 3,287 (210,702) (1,458,191)
(2,381,906) 265,118 (240,865) (2,357,653)
5) WORK in PROGRess anD aD. PaYments
WORK in PROGRess anD aD. PaYments - - - -
ii) PROPeRtY, Plant anD eQUiPment (345,118,179) 656,110 (15,758,047) (360,220,116)
tOtal Bi) +Bii) (367,372,797) 656,110 (17,712,323) (384,429,010)
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 4140 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
the following table shows the change in the intangible fixed assets and property, plant and equipment at net
book value during the year.
(amount in euro)
intanGiBle assets anD PROPeRtY, Plant anD eQUiPment
Opening balance
IncreasesAmortisa-
tion/Depre-ciation
"Net value of assets
sold"
"Reclassi-fications
asset startups"
Closing balance
i) intanGiBle assets
staRt-UP anD eXPansiOn cOsts 5.555 - (5.555) - - -
ReseaRcH, DeV. anD aDVeRtisinG cOsts 3.086 4.559 (1.684) - - 5.961
inDUstRial Pat. anD int. PROP. RiGHts - - - - - -
GOODWill 30.414.773 - (1.900.923) - - 28.513.850
OtHeR intanGiBle assets 384.664 45.494 (46.114) - - 384.044
i) intanGiBle assets 30.808.078 50.053 (1.954.276) - - 28.903.855
ii) PROPeRtY, Plant anD eQUiPment
1) lanD anD BUilDinGs
lanD 3.084.181 31.747 - (4.500) - 3.111.428
inDUstRial BUilDinGs 18.757.346 556.780 (764.638) (9.170) - 18.540.318
Office BUilDinGs 626.719 16.842 (16.889) - - 626.672
22.468.246 605.369 (781.527) (13.670) - 22.278.418
2) Plant anD eQUiPment
electRicitY sUBstatiOns 50.672.633 2.757.736 (2.714.486) (17.755) 28.505 50.726.633
elec. DistRiBUtiOn GRiDs 169.724.274 13.921.390 (9.762.712) - 172.686 174.055.638
220.396.907 16.679.126 (12.477.198) (17.755) 201.191 224.782.271
3) inDUstRial anD cOmmeRcial fittinGs
fittinGs 889.128 81.251 (130.121) - - 840.258
RemOte cOntROl 1.974.652 246.354 (187.482) - 60.000 2.093.524
meteRs 18.012.844 479.610 (1.940.854) (232.933) - 16.318.667
20.876.624 807.215 (2.258.457) (232.933) 60.000 19.252.449
4) OtHeR assets
fURnitURe anD Office macHines 221.727 7.153 (18.684) - - 210.196
electROnic Office macHines 73.461 - (11.479) (57.912) - 4.070
DeDUctiBle VeHicles 600.450 166.020 (210.702) (3.798) - 551.970
895.638 173.173 (240.865) (61.710) - 766.236
5) WORK in PROGRess anD aD. PaYments
WORK in PROGRess anD aD. PaYments 266.191 - - - (261.191) 5.000
ii) PROPeRtY, Plant anD eQUiPment 264.903.606 18.264.883 (15.758.047) (326.068) - 267.084.374
tOtal Bi) + Bii) 295.711.684 18.314.936 (17.712.323) (326.068) - 295.988.229
Financial fixed assets
(amount in euro)
MISC. ACCOUNTS REC. - OTHER 31/12/2015 31/12/2014 Difference
from others 38,774 57,301 (18,527)
the decrease derives from the return of a guarantee deposit from Gme.
CURRENT ASSETS
Inventories
the movements during the year in the stock of materials in inventory are shown in the table below.
(amount in euro)
inVentORies Opening balance
PurchasesUsages for capitalised materials
Usages for year
Closing balance
RaW mateRials anD cOnsUmaBles 2,632,446 4,038,068 (3,374,638) (455,539) 2,840,337
tOtal inVentORies 2,632,446 4,038,068 (3,374,638) (455,539) 2,840,337
closing inventories include the stock of meters (604,668 euro), electrical cables (556,262 euro) and other ma-
terials used in the construction of electrical grids (1,679,407 euro). these are held in stock by third parties for a
total of 406,772 euro.
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 4342 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
ACCOUNTS RECEIVABLE OF THE CURRENT ASSETS
Accounts receivable - Users, net of the provisions for write-downs(amount in euro)
acc. Rec. - UseRs anD cUstOmeRs 31/12/2015 31/12/2014 Difference
inVOices/Bills issUeD 8,131,450 8,739,924 (608,474)
electricity service 7,838,739 8,365,464 (526,725)
OtHeR seRVices 292,711 374,459 (81,749)
inVOices/Bills tO Be issUeD 1,522,716 1,691,142 (168,426)
electricity service 1,511,130 1,723,693 (212,563)
OtHeR seRVices 11,586 (32,551) 44,137
PROVisiOn fOR WRite-DOWns (401,056) (287,727) (113,329)
acc. Rec. - UseRs anD cUstOmeRs 9,253,110 10,143,338 (890,228)
accounts receivable - users and customers in 2015 were in line with those of the previous year.
changes in the provision for write-downs during the year were as follows:
(amount in euro)
PROVISION FOR WRITE-DOWNS 31/12/2015 31/12/2014 Difference
PROVisiOn fOR WRite-DOWns (287,727) (1,013,134) 725,407
Provision (159,247) (150,891) (8,356)
Usage 45,918 876,298 (830,380)
PROVisiOn fOR WRite-DOWns (401,056) (287,727) (113,329)
Accounts receivable - Parent companies(amount in euro)
ACC. REC. - PARENT COMPANIES 31/12/2015 31/12/2014 Difference
inVOices/Bills issUeD 89,726 28,724 61,002
OtHeR accOUnts ReceiVaBle 49,215,117 40,613,557 8,601,560
acc. Rec. - PaRent cOmPanies 49,304,843 40,642,281 8,662,562
Of WHicH
acc. rec. - parent companies for cash pooling 44,151,317 39,853,221 4,298,096
acc. rec. - parent comp. for taxes/interest 5,063,800 733,706 4,330,094
the receivable due from parent companies was primarily due to the positive balance of cash pooling (44,151,317
euro), and the remainder was mainly due to an iRes (corporate tax) credit for surplus advances on the balance due
(4,392,742 euro) and an iRes 2012 credit (641,578 euro) as a result of the application for refund for the failure to
deduct iRaP (productivity tax) on personnel costs (art. 4, paragraph 12 of law Decree no. 16 of 2 march 2012).
taX cO n sOli Dat i O n
Detailed below are the main characteristics of the contract governing relations between set and Dolomiti ener-
gia spa as part of the “national tax consolidation”:
- term of the transaction: from financial year 2013 to 2015
- transfer of taxable income: if the consolidated company records positive taxable income, it must pay the tax
to the consolidating company with a settlement date no later than the deadline for payments to the tax au-
thorities;
- transfer of tax losses: if a negative taxable income is recorded (tax loss), the consolidating company agrees
to recognise a final amount equal to the amount of the loss less 3% for discounting purposes.
Tax credits(amount in euro)
TAX CREDITS 31/12/2015 31/12/2014 Difference
OtHeR taX cReDits 8,919 6,313 2,606
iRes cReDit (corporate tax) 72,703 697,162 (624,459)
iRaP cReDit (productivity tax) 1,051,512 - 1,051,512
ViRtUal stamP DUtY 5,910 - 5,910
taX cReDits 1,139,044 703,475 435,569
after the additional iRes tax for the energy sector (known as the Robin Hood tax) was declared constitutionally
illegitimate, in 2015 the company used the credit resulting from this declaration for the year 2014 as “horizontal”
offsetting. at the end of 2015 a credit of 72,703 euro remained.
the iRaP credit (1,051,512 euro) derives from a higher advance paid with respect to the balance due.
Prepaid tax credits(amount in euro)
PREPAID TAXES 31/12/2015 31/12/2014 Difference
PRePaiD taXes 7,438,085 8,256,748 (818,663)
for details of prepaid tax credits please see the statements of temporary differences that led to the recognition
of deferred tax assets and liabilities.
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 4544 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
Accounts receivable - Others(amount in euro)
ACCOUNTS RECEIVABLE - OTHERS 31/12/2015 31/12/2014 Difference
OtHeR cReDits 226,279 157,212 69,067
acc. Rec. - electRicitY cOmP. fUnD 14,719,745 14,906,839 (187,094)
ReneWaBle sOURce ceRtificates 743,674 893,770 (150,096)
aDVances/DePOsits 330,008 26,187 303,821
acc. Rec. - sOcial sec. institUtiOns 25,377 17,631 7,746
accOUnts ReceiVaBle - affiliates 22,103,504 19,739,164 2,364,340
acc. Rec. - OtHeRs, sHORt-teRm 38,148,587 35,740,803 2,407,785
the most important items are: amounts due from the ccse (electricity compensation fund), primarily deriving
from the 2015 transport adjustment (distribution and measurement) (9,053,784 euro), the 2011 measurement
adjustment (still pending the finalisation thereof, estimate at 1,000,000 euro), energy efficiency certificates
(3,741,899 euro) and amounts due from affiliates, primarily due to the electricity transport service.
Breakdown of receivables by maturity31/12/2015 (amount in euro)
BREAKDOWN OF RECEIVABLES BY MATURITY
Book value (2+3+4)
Mat. value - subsequent
year
Mat. value - subsequent 4
years
Beyond 5 years
1 2 3 4
acc, Rec, WHicH aRe fiXeD assets
from others 38,774 - - 38,774
acc, Rec, Of tHe cURRent assets
acc. Rec. - UseRs anD cUstOmeRs 9,253,110 9,253,110 - -
acc. Rec. - PaRent cOmPanies 49,304,843 49,304,843 - -
taX cReDits 1,139,044 1,139,044 - -
PRePaiD taXes 7,438,085 7,438,085 - -
acc. Rec. - OtHeRs, sHORt-teRm 38,148,587 38,148,587 - -
tOtal 105,322,443 105,283,669 - 38,774
the company has no accounts receivable positions outstanding with foreign entities.
Cash and cash equivalents(amount in euro)
CASH AND CASH EQUIVALENTS 31/12/2015 31/12/2014 Difference
BanK anD POstal cURRent accOUnts 20,522 4,508 16,014
casH On HanD 1,479 1,776 (297)
tOtal casH anD casH eQUiValents 22,001 6,284 15,717
PREPAYMENTS AND ACCRUED INCOME(amount in euro)
PREPAYM. AND ACCRUED INCOME 31/12/2015 31/12/2014 Difference
annUal PRePaYments 48,603 60,111 (11,508)
mUlti-YeaR PRePaYments 20,618 21,244 (626)
tOtal PRePaYm. anD accRUeD incOme 69,221 81,355 (12,134)
these refer to maintenance expense, lease payments, concession fees, licences and policies, whose accrual over-
laps several financial years.
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 4746 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
Shareholders’ equity and liabilities
SHAREHOLDERS’ EQUITY
as at 31 December 2015 the shareholding structure was as follows:(amount in euro)
SHAREHOLDERS Number of shares %
DOlOmiti eneRGia s.P.a. 83,645,346 74.52%
aUtOnOmOUs PROVince Of tRentO 16,913,335 15.07%
cles mUniciPal aUtHORitY 3,506,412 3.12%
a.G.s. spa RiVa Del GaRDa 2,400,358 2.14%
stet spa 2,253,691 2.01%
aiR spa 1,430,000 1.27%
fai Della PaGanella mUnic. aUtHORitY 709,398 0.63%
mOnclassicO mUniciPal aUtHORitY 542,184 0.48%
VaRena mUniciPal aUtHORitY 227,723 0.20%
cOns. elettRicO stORO 155,833 0.14%
cOns. elettRicO inDUstRiale Di stenicO 146,667 0.13%
cOns. elettRicO Di POZZa Di fassa 100,832 0.09%
a.s.m. tiOne 82,499 0.07%
a.c.s.m. fieRa Di PRimieRO 72,499 0.06%
cOnsORZiO Dei cOmUni 55,000 0.05%
tOtal 112,241,777 100.00%
On 24 may 2005 enel Distribuzione spa established set Distribuzione srl, which conferred its business unit
(goods and personnel) in the province of trento, effective from 12:00 a.m. of 30 June 2005. set Holding spa
(subsidiary of Dolomiti energia spa, invested in by the autonomous Province, local entities of trentino and/
or their companies) acquired 100% of the share capital of set Distribuzione srl (transformed into a joint-
stock company (società per azioni) on 4 July 2005). effective 1 January 2011 Dolomiti energia conferred to
set Distribuzione its electricity distribution business unit, increasing its investment by 53,161,209 euro.
the shareholding structure in 2015 remained unchanged on 31 December 2014.
changes in shareholders’ equity accounts in the last two years were as follows:
(amount in euro)
BALANCE SHEET - LIABILITIESI) SHARE CAPITAL
II) SHARE PREMIUM RESERVE
IV) LEGAL RESERVE
VII) OTHER
RESERVES
IX) PROFIT OR LOSS FOR THE
YEARTOTAL
ValUe as at 31/12/2013 108,193,181 2,178,028 599,066 6,281,786 14,838,814 132,090,875
allOc. Of PROfit fOR tHe YeaR - - 741,941 7,605,282 (14,838,814) (6,491,591)
sHaRe caP. incRease/DecRease 4,048,596 338,984 - - - 4,387,580
OtHeR cHanGes - roundings - - - (3) - (3)
PROfit/lOss fOR tHe YeaR - - - 21,741,574 21,741,574
ValUe as at 31/12/2014 112,241,777 2,517,012 1,341,007 13,887,065 21,741,574 151,728,435
allOc. Of PROfit fOR tHe YeaR - 1,087,079 13,919,989 (21,741,574) (6,734,506)
sHaRe caP. incRease/DecRease
OtHeR cHanGes - roundings - 3 3
PROfit/lOss fOR tHe YeaR - 12,080,108 12,080,108
ValUe as at 31/12/2015 112,241,777 2,517,012 2,428,086 27,807,057 12,080,108 157,074,040
in 2013 and 2014 dividends were distributed for 6,491,591 euro and 6,734,506 euro, respectively.(amount in euro)
A) SHAREHOLDERS’ EQUITY 31/12/2015 31/12/2014 Difference
i) sHaRe caPital 112,241,777 112,241,777 -
ii) sHaRe PRemiUm ReseRVe 2,517,012 2,517,012 -
iV) leGal ReseRVe 2,428,086 1,341,007 1,087,079
Vii) OtHeR ReseRVes
- eXtRaORDinaRY ReseRVe 27,807,057 13,887,068 13,919,989
- rounding reserves - (3) 3
iX) PROfit OR lOss fOR tHe YeaR 12,080,108 21,741,574 (9,661,466)
tOtal sHaReH. eQUitY anD ReseRVes 157,074,040 151,728,435 5,345,605
the table below analyses shareholders’ equity in terms of availability and distribution options.
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 4948 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
(amount in euro)
AVAILABILITY AND DISTRIBUTION OPTIONS FOR SHAREHOLDERS’ EQUITY
31/12/2015
Amount
Usage options
Available portion
Usage summary for past three years
to cover losses for other reasons
i) sHaRe caPital 112,241,777
eQUitY ReseRVes
ii) sHaRe PRemiUm ReseRVe 2,517,012 a,B 2,517,012 - -
PROfit ReseRVes
iV) leGal ReseRVe 2,428,086 B - -
eXtRaORDinaRY ReseRVe 27,807,057 a,B,c 27,807,057 - -
tOtal 144,993,932 30,324,069
nOn-DistRiBUtaBle PORtiOn 2,522,973
ResiDUal DistR. PORtiOn 27,801,096
* a: for share capital increase
* B: to cover losses
* c: for distribution to shareholders
the share premium reserve cannot be distributed until such time as the legal reserve reaches 20% of the share
capital (art. 2431 of the italian civil code).
in total, non-distributable reserves as at 31 December 2015 amounted to 2,522,973 euro, as 2,517,012 euro are
related to the share premium reserve and 5,961 euro to coverage of the amount of research, development and
advertising costs not yet amortised at the end of the year, pursuant to art. 2426, no. 5 of the italian civil code.
PROVISIONS FOR RISKS AND CHARGES
Deferred tax provision(amount in euro)
PROVISION FOR INCOME TAXES (INCLUDING DEFERRED TAXES)
31/12/2015 31/12/2014 Difference
DefeRReD taX PROVisiOn 3,055,738 3,625,259 (569,521)
tOtal PROVisiOn fOR incOme taXes 3,055,738 3,625,259 (569,521)
for details of deferred taxes please see the statements of temporary differences that led to the recognition of
deferred tax assets and liabilities, indicated at the end of the notes.
Assessment by the Italian Inland Revenue
as previously mentioned in the Directors’ Report, note that in 2008, the company was subject to a tax inspection
conducted by the Guardia di finanza which resulted in findings of a single charge relating to failure to apply regi-
stration tax to the acquisition of a business unit for electricity distribution management in the trentino area from
enel Distribuzione s.p.a.
in October 2008 set lodged an appeal with the first instance tax commission of trento against the finding, which
the commission rejected by sentence of 26 march 2009.
in february 2009 the payment order was received in relation to the aforementioned inspection. the order indicates
charges, including sanctions, of 8,158,586.28 euro. On 29 June 2009 the appointed legal advisor filed an appeal with
the second instance tax commission of trento against the first instance decision.
in relation to the sentence the company agreed with the trento tax authority on settlement of the amount of the
payment order (8,566,222 euro) based on the findings. settlement of the order resulted in a significant savings for
set in terms of interest due to the tax authorities.
By sentence of 21 June 2010 the second instance tax commission rejected the appeal. convinced of the correct
nature of its operations, the company appealed against the decision before the court of cassation and the supreme
court’s ruling is pending.
With regard to accounting recognition of this event, during 2010 the company recorded the entire amount mentio-
ned above as extraordinary charges and as a balancing entry for the provision for income taxes, which in turn offset
the credit of the same nature generated by virtue of the payments made.
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 5150 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
EMPLOYEE TERMINATION BENEFITS
this provision relates to accounts payable by the company to employees in service as at year-end in accordance
with article 2120 of the italian civil code, employment contracts and corporate relations. the amount as at 31
December 2015 came to 3,862,017 euro.
the movements in employee termination benefits during the year were as follows:
(amount in euro)
EMPLOYEE TERMINATION BENEFITS 31/12/2015 31/12/2014 Difference
Opening balance 4,465,571 4,545,594 (80,023)
allocated during the year 813,274 830,320 (17,046)
Decreases (783,317) (159,079) (624,238)
Other changes (633,511) (751,264) 117,753
emPlOYee teRminatiOn Benefits 3,862,017 4,465,571 (603,554)
the significant decrease in the provisions was due to the fact that during the year, 22 employees retired.
ACCOUNTS PAYABLE
Bonds(amount in euro)
BONDS 31/12/2015 31/12/2014 Difference
110,000,000 110,000,000 -
the bond loan is issued by set Distribuzione spa, by virtue of the resolution of the Board of Directors of 21 July 2006,
pursuant to art. 2412, paragraph 1 of the italian civil code, for a nominal value of 110,000,000 euro, at a fixed rate of
4.60%, guaranteed by an irrevocable first demand surety issued by the trento autonomous Province.
the bond has a duration of 23 years as from 1 august 2006 and therefore until 1 august 2029, and shall be repaid at
par in a single solution on the maturity date (1 august 2029).
Accounts payable - Banks(amount in euro)
ACCOUNTS PAYABLE - BANKS 31/12/2015 31/12/2014 Difference
due to banks 699 757 (58)
accOUnts PaYaBle - BanKs 699 757 (58)
Trade payables(amount in euro)
TRADE PAYABLES 31/12/2015 31/12/2014 Difference
PaYaBles fOR inVOices ReceiVeD 17,580,762 15,113,205 2,467,557
electRicitY seRVice 16,583,435 14,727,060 1,856,375
OtHeR seRVices 997,327 386,145 611,182
PaYaBles fOR inVOices tO Be ReceiVeD 24,154,341 20,457,320 3,697,021
electRicitY seRVice 22,973,012 18,898,114 4,074,898
OtHeR seRVices 1,181,329 1,559,206 (377,877)
tRaDe PaYaBles 41,735,103 35,570,525 6,164,578
trade payables increased slightly in 2015 on the previous year, mainly due to the payable due to G.s.e. spa, to
which the company must pay a component of the tariff to cover promotional expenses for the production of
energy from renewable and similar sources.
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 5352 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
Accounts payable - Parent companies(amount in euro)
ACCOUNTS PAY. - PARENT COMPANIES 31/12/2015 31/12/2014 Difference
PaYaBles fOR inVOices ReceiVeD 744,474 348,932 395,542
OtHeR seRVices 744,474 348,932 395,542
PaYaBles fOR inVOices tO Be ReceiVeD 1,080,694 4,208,423 (3,127,729)
electricity service 11,833 11,833
OtHeR seRVices 1,068,861 4,208,423 (3,139,562)
accOUnts PaY. - PaRent cOmPanies 1,825,168 4,557,355 (2,732,187)
Of WHicH
accounts pay. - parent comp. for cash pooling - - -
acc. pay. - parent comp. for taxes/interest 975,001 3,791,682 (2,816,681)
as at 31 December 2015 the company had no accounts payable due to Dolomiti energia for iRes (2,553,314 euro
as at 31 December 2014), resulting in a significant reduction in accounts payable - parent companies. the payable
at the end of 2015 was comprised of 972,939 euro for the December Vat, as a result of the company’s participa-
tion in Group Vat (1,236,232 euro at the end of 2014).
Payables for iRPef, substantially in line with 31 December 2014, mainly refer to the withholdings on employees’
income accrued as of December 2015, which the company shall pay in June 2016, as the withholding agent.
Tax payables(amount in euro)
TAX PAYABLES 31/12/2015 31/12/2014 Difference
iRaP - 32,525 (32,525)
iRPef 472,380 495,310 (22,929)
stamP DUtY 7,210 6,139 1,071
taX PaYaBles 479,590 533,974 (54,384)
Payables for iRPef, substantially in line with 31 December 2014, mainly refer to the withholdings on employees’
income accrued as of December 2015, which the company shall pay in January 2016, as the withholding agent.
Social security payables(amount in euro)
SOCIAL SECURITY PAYABLES 31/12/2015 31/12/2014 Difference
accOUnts PaYaBle - inPs 516,617 522,665 (6,048)
accOUnts PaYaBle - inPDaP 124,877 129,495 (4,618)
accOUnts PaYaBle - inail 795 310 485
sUPPlementaRY PensiOn fUnDs 147,434 143,109 4,325
sOcial secURitY PaYaBles 789,723 795,579 (5,856)
Other accounts payable(amount in euro)
OTHER ACCOUNTS PAYABLE 31/12/2015 31/12/2014 Difference
OtHeR accOUnts PaYaBle 871,731 375,695 496,036
accOUnts PaYaBle - emPlOYees 1,273,500 1,296,612 (23,112)
accOUnts PaYaBle - affiliates 227,426 151,318 76,108
- within 12 months 2,372,657 1,823,625 549,032
GUaRantee DeP. fROm tHiRD PaRties 726,285 505,860 220,425
GUaRantee DePOsits fROm affiliates 21,414,700 21,414,700 -
- after 12 months 22,140,985 21,920,560 220,425
OtHeR accOUnts PaYaBle 24,513,642 23,744,185 769,457
During the year, the value of guarantee deposits for the transport service remained substantially unchanged. the
amount relates to the payable due to the related parties trenta spa and multiutility spa.
accounts payable - employees relate to bonuses accrued to be paid and to amounts accrued and not yet paid
(unused holidays and leave, gross of the related charges for contributions).
Breakdown of accounts payable by maturity(amount in euro)
BREAKDOWN OF ACCOUNTS PAYABLE BY MATURITY
31/12/2015Book value (2+3+4)
Mat. value - subsequent year
Mat. value - subsequent
4 yearsBeyond 5 years
1 2 3 4
D) PaYaBles
BOnDs 110,000,000 - - 110,000,000
accOUnts PaYaBle - BanKs 699 699 - -
tRaDe PaYaBles 41,735,103 41,735,103 - -
acc. PaY. - PaRent cOmPanies 1,825,168 1,825,168 - -
taX PaYaBles 479,590 479,590 - -
sOcial secURitY PaYaBles 789,723 789,723 - -
OtHeR accOUnts PaYaBle 24,513,642 2,372,657 22,140,985 -
tOtal 179,343,925 47,202,940 22,140,985 110,000,000
the company has no accounts payable positions outstanding with foreign entities.
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 5554 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
ACCRUED LIABILITIES AND DEFERRED INCOME(amount in euro)
ACCRUED LIAB. AND DEFERRED INCOME 31/12/2015 31/12/2014 Difference
accRUeD liaBilities 2,155,214 2,155,002 212
DefeRReD incOme 58,232,797 56,250,407 1,982,390
DefeRReD inc. - Plant-RelateD GRants 518,500 548,667 (30,167)
accRUeD liaB. anD DefeRReD incOme 60,906,511 58,954,076 1,952,435
accrued liabilities mainly derive from the coupon of the bond loan (2,106,218 euro) and the fees on the surety
issued by the trento autonomous Province (47,707 euro).
Deferred income derives from the method of charging connection revenues invoiced to users in relation to the
useful life of the investment. these are determined as follows:
(amount in euro)
Gross chargesCharged to
income statement
Discounted as at
31.12.2015
To be discounted as at 31.12.2015
former enel connections 5,184,673 160,836 1,732,306 3,452,367
2005 connections 2,884,777 80,192 960,163 1,924,614
2006 connections 5,744,222 164,121 1,641,206 4,103,016
2007 connections 4,952,250 141,493 1,273,436 3,678,814
2008 connections 4,770,256 136,293 1,090,344 3,679,912
2009 connections 5,899,275 168,551 1,179,855 4,719,420
2010 connections 5,407,674 154,505 927,030 4,480,644
2011 connections 20,591,712 618,042 7,868,680 12,723,032
- connect. D.e. spa contribution 12,759,501 394,264 6,749,792 6,009,709
2012 connections 7,774,991 222,143 888,570 6,886,421
2013 connections 4,609,357 131,696 395,088 4,214,269
2014 connections 4,522,270 129,208 258,415 4,263,855
2015 connections 4,227,211 120,777 120,777 4,106,434
tOtal 76,568,668 2,227,856 18,335,870 58,232,798
the remaining deferred income, amounting to 518,500 euro, is due to plant-related grants.
Other third party guaranteesthe guarantees obtained by the Parent company in favour of third parties are broken down below:
(amount in euro)
31/12/2015 31/12/2014 Difference
Guarantees received by third parties in favour of banks for loans
115,500,000 115,500,000 -
Guarantees issued by the parent company to third parties in the interest of the company
2,683,688 2,795,283 (111,595)
Bank/insurance guarantees issued in the interest of the company
2,633,688 2,731,404 (97,716)
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 5756 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
Income StatementPRODUCTION VALUE
Revenue from sales and services(amount in euro)
REVENUE FROM SALES AND SERVICES 31/12/2015 31/12/2014 Difference
electRicitY ReVenUe 76,002,830 74,553,431 1,449,399
OtHeR ReVenUe 4,088,016 3,910,326 177,690
PUBlic liGHtinG ReVenUe 238,518 234,078 4,440
ReVenUe fROm sales anD seRVices 80,329,364 78,697,835 1,631,529
During the year, the company applied the new regulations pursuant to resolution 154/2015/R/eel of 3 april
2015 “determination of reference tariffs for the electricity distribution service”. item a1 includes the positive
equalisation of 14,005,000 euro for the protected market, and negative equalisation of 3,335,000 euro for the
unregulated market. the positive item of 707,000 euro relating to grid efficiency (difference between the losses
set out in agreements and the real losses) was also considered.
Revenues included connection contributions invoiced to users for 2,739,026 euro (2,448,647 euro in the previous
year).
Capitalised improvements(amount in euro)
INCREASES IN FIXED ASSETS FOR IN-HOUSE PROJECTS
31/12/2015 31/12/2014 Difference
caPitalisatiOns fROm inVentORies 3,374,638 3,007,457 367,181
caPitalisatiOns Of PeRsOnnel cOsts 3,708,406 3,367,285 341,121
incR. in fiXeD ass. fOR in-HOUse PR. 7,083,044 6,374,742 708,302
the company capitalises internal costs for materials and labour used in the construction of electricity distribution
grids.
Other revenue(amount in euro)
OTHER REVENUE AND INCOME 31/12/2015 31/12/2014 Difference
OtHeR ReVenUe 1,070,109 1,115,523 (45,414)
Real estate incOme 124,845 125,174 (329)
Gains fROm stanDaRD OPeRatiOns 61,228 91,078 (29,850)
ReVenUe fROm eXtRaORD. maint. 118,108 129,421 (11,313)
seRVices tO tHiRD PaRties 1,440,319 1,763,086 (322,767)
De GROUP ReVenUe 2,135,181 1,598,729 536,452
eneRGY efficiencY 3,741,899 3,246,908 494,991
stanDaRD cOntinGent assets 1,936,971 20,618,342 (18,681,371)
other revenue 10,628,660 28,688,261 (18,059,601)
cOntRiBUtiOns fOR Plant 64,161 84,234 (20,073)
grants 64,161 84,234 (20,073)
OtHeR ReV. anD inc. (nO sale/seRV.) 10,692,821 28,772,495 (18,079,674)
note that among standard contingent assets, the greatest amount is provided by the continuity bonus for 2014
(1,561,967 euro), paid in 2015. in the previous year, that item included 18,545,330 euro for the equalisation of
electricity distribution for the years 2012-2013.
note that revenues are not broken down by geographical area, as they were all achieved in italy.
PRODUCTION COSTS
Costs for purchases of raw materials(amount in euro)
EXT. PURCHASES OF RAW MATERIALS, CONSUMABLES AND MERCHANDISE
31/12/2015 31/12/2014 Difference
PURcHases Of inVentORies (4,038,068) (3,217,522) (820,546)
PURcHases Of fUels (404,276) (394,523) (9,753)
PURcHases Of VeHicle sPaRe PaRts (8,030) (10,067) 2,037
PURcHase Of mat. nOt in inVentORY (367,568) (352,652) (14,916)
eXt. PURcHases Of RaW mateRials, cOnsUmaBles anD meRcHanDise
(4,817,942) (3,974,764) (843,178)
Purchases for inventories refer to electrical cables (+70% compared to 2014), meters (-3% compared to the
previous year) and other consumables (+7% compared to 2014), used in the construction and maintenance of
distribution grids.
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 5958 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
Service costs(amount in euro)
EXTERNAL PURCHASES OF SERVICES 31/12/2015 31/12/2014 Difference
eXteRnal maintenance seRVices (1,760,900) (2,042,667) 281,767
insUR., BanKinG anD fin. seRVices (917,002) (901,742) (15,260)
OtHeR seRVices (746,946) (809,113) 62,167
cOmmeRcial seRVices (21,522,931) (19,490,746) (2,032,185)
GeneRal seRVices (779,789) (758,650) (21,139)
financial statement ceRtificatiOn (34,998) (36,000) 1,002
BOaRD Of statUtORY aUDitORs (36,400) (41,008) 4,608
DiRectORs (143,213) (138,458) (4,755)
eXteRnal PURcHases Of seRVices (25,942,179) (24,218,384) (1,723,795)
external maintenance services include third parties services on the distribution grid for 1,111,540 euro (1,297,931
euro in 2014).
Other services include services for employees for 544,029 euro (586,894 euro in the previous year).
commercial services of 17,522,769 euro refer to electricity carrier services (15,902,191 euro in 2014) and of
3,987,559 euro to services provided by the parent company Dolomiti energia and other related companies
(3,574,822 euro in 2014).
fees were duly paid during the year to the Board of statutory auditors and the independent auditors in com-
pliance with shareholders’ meeting resolutions. the fees paid to the Board of Directors were decided by the
shareholders’ meeting and the Board of Directors pursuant to art. 2389 of the italian civil code.
Costs for use of third party assets(amount in euro)
COSTS FOR USE OF THIRD PARTY ASSETS 31/12/2015 31/12/2014 Difference
miscellaneOUs cOsts (171,800) (179,667) 7,867
Rental eXPense (1,165,128) (1,175,600) 10,472
Rental fees (568,373) (540,009) (28,364)
easement (19,790) (13,308) (6,482)
seRVice cOntRact cHaRGes (219,034) (218,208) (826)
cOsts fOR Use Of tHiRD PaRtY assets (2,144,125) (2,126,792) (17,333)
the 2015 amount is substantially in line with the previous year.
Personnel costs(amount in euro)
PERSONNEL COSTS 31/12/2015 31/12/2014 Difference
a) Wages and salaries (12,221,879) (12,259,303) 37,424
b) social security costs (3,855,710) (3,925,217) 69,507
c) employee termination benefits (813,274) (830,320) 17,046
e) Other costs (545,784) (548,542) 2,758
PeRsOnnel cOsts (17,436,647) (17,563,382) 126,735
the workforce as at 31 December 2015 numbered 283 staff (297 as at 31 December 2014), broken down by cate-
gory as follows:
INFORMATION ON EMPLOYEES 31/12/2015 31/12/2014 Difference
Personnel
executives 1 1 -
managers 7 7 -
employees 168 178 (10)
Workers 107 111 (4)
total personnel 283 297 (14)
the average number of workers was 282.07.
Amortisation, depreciation and write-downs(amount in euro)
AMORTIS., DEPREC. AND WRITE-DOWNS 31/12/2015 31/12/2014 Difference
a) amortisation of intangible assets (1,954,276) (1,950,219) -4,057
b) Deprec. of property, plant and equipment (15,758,047) (15,451,369) (306,678)
d) Write-down of acc. rec. rec. to current ass. (159,247) (150,891) (8,356)
amORtis., DePRec. anD WRite-DOWns (17,871,570) (17,552,479) (319,091)
amortisation and depreciation for 2015 were in line with that of the previous year.
Changes in inventories(amount in euro)
CHANGE IN INVENTORIES OF RAW MATERIALS, CONSUMABLES AND MERCHANDISE
31/12/2015 31/12/2014 Difference
CHANGE IN INVENTORIES OF RAW MATERIALS, CONSUMABLES AND MERCHANDISE
207,890 (427,277) 635,167
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 6160 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
Other operating costs(amount in euro)
OTHER OPERATING COSTS 31/12/2015 31/12/2014 Difference
miscellaneOUs cOsts (1,459,143) (1,222,560) (236,583)
eneRGY efficiencY cHaRGes (3,701,077) (3,161,610) (539,467)
stanDaRD cOntinGent liaBilities (802,857) (1,021,292) 218,435
OtHeR OPeRatinG cOsts (5,963,077) (5,405,462) (557,615)
Other operating costs include sundry taxes and duties of 722,277 euro, charges for the specific tariff contribution of
293,540 euro and capital losses from disposals of 249,046 euro.
contingent liabilities include 181,417 euro for the 2014 equalisation, and 340,820 euro relating to the penalty from
art. 13 of aeeGsi resolution 570/2012.
FINANCIAL INCOME AND CHARGES
Other financial income(amount in euro)
OTHER FINANCIAL INCOME 31/12/2015 31/12/2014 Difference
d) financial inc. Diff. fROm aBOVe 154,288 196,325 (42,037)
OtHeR financial incOme 154,288 196,325 (42,037)
financial income included 87,524 euro in interest income accrued on cash pooling, down compared to 2014 (129,040
euro) following the decrease in interest rates for interest income. Default interest invoiced to users was in line with
the previous year.
Interest and other charges(amount in euro)
INT. AND OTHER FINANCIAL CHARGES 31/12/2015 31/12/2014 Difference
d) OtHeRs (5,059,594) (5,070,787) 11,193
int. anD OtHeR financial cHaRGes (5,059,594) (5,070,787) 11,193
interest expense/financial charges due to others mainly relate to the bullet bond loan of 110,000,000 euro maturing
in 2029, more or less unchanged on 2014.
Extraordinary income and charges(amount in euro)
31/12/2015 31/12/2014 Difference
EXTRAORDINARY INCOME AND CHARGES 140,813 228,291 (87,478)
b) cOnt. ass. anD nOn-eXistent ass. 143,114 150,816 (7,702)
d) OtHeR eXtRaORDinaRY incOme 85,353 (85,353)
eXtRaORDinaRY incOme 143,114 236,169 (93,055)
b) taXes RelatinG tO PRiOR PeRiODs (2,301) (329) (1,972)
c) cOnt. liaB. anD nOn-eXistent liaB. (7,549) 7,549
eXtRaORDinaRY cHaRGes (2,301) (7,878) 5,577
the decrease in extraordinary income is due to the iRes refund (85,353 euro) in 2014, following the application
for refund, due to the failure to deduct iRaP relating to the personnel costs incurred for the years 2006 and 2007.
INCOME TAXES FOR THE YEAR
Direct income taxes for financial year 2015 were recognised for a total of 7,292,978 euro.
these can be broken down as follows:(amount in euro)
INCOME TAXES FOR THE YEAR 31/12/2015 31/12/2014 Difference
a) current taxes (7,043,836) (16,123,637) 9,079,801
b) Deferred tax 569,521 1,196,737 (627,216)
c) Prepaid taxes (818,663) (1,261,887) 443,224
incOme taXes fOR tHe YeaR (7,292,978) (16,188,787) 8,895,809
current taxes are assessed on the basis of a realistic forecast of the taxable base for the year.
Deferred taxes are calculated on the timing differences between the economic result before taxation and the taxable
income. Deferred tax liabilities are recognised in the income statement under a specific sub-item of item 22) “income
taxes for the year”, with a matching balance under item B.2 “Provisions for risks and charges: taxation”. Prepaid taxes
are recognised in the income statement with a negative sign in the same item 22) “income tax for the year”, with a
matching balance under item c.ii. 4) ter “Prepaid taxes”:
By means of the publication of sentence no. 10 dated 11 february 2015, the constitutional court declared the con-
stitutional illegitimacy of the so-called Robin Hood tax and, in other words, the additional iRes envisaged for the
oil and energy sector by article 81, paragraphs 16-18 of italian Decree law no. 112/2008, as emerging further to the
amendments ultimately made by italian Decree law no. 69/2013. as a result, the additional iRes, equal to 6.50%
in 2014, was not applied in 2015, significantly reducing direct taxes for the year. the iRaP tax rate was also reduced,
from 3.10% in 2014 to 2.60% in 2015. the reduction in direct taxes was also the result of a reduction in the taxable
amount compared to 2014 by slightly less than 50%.
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 6362 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
R e cOG n i t i O n Of De f e R R e D a nD PR e Pa i D taX es a nD t He R es U lt i n G e f f e ct s :
(amount in euro)
statement Of RecOnciliatiOn BetWeen Balance sHeet anD tHeORetical taX cHaRGe
Description Amount IRES % charge
Profit before tax 19,373,086
theoretical tax charge 5,327,599 27.50%
PeRmanent incReases
motor vehicle costs 119,509
Phone-related costs 27,575
non-deductible amortisation/depreciation 1,958,596
local property tax 150,513
contingent liabilities 475,796
Other 55,715
total Permanent increases 2,787,704
PeRmanent DecReases
supplementary social security 30,497
iRaP personnel/interest deduction 100,210
aid for economic Growth Deduction 1,508,389
contingent assets 106,024
Other 4,080
total Permanent decreases 1,749,200
temPORaRY DiffeRences - incReases
financial statement certification 34,998
Directors’ fees 5,200
Productivity and one-off bonus 986,245
amortisation 2,539,199
Grants - plant and connection 67
credit losses 3,425
total temporary differences - increases 3,569,134
temPORaRY DiffeRences - DecReases
financial statement certification 36,000
Productivity and one-off bonus 958,095
amortisation 288,701
Grants - plant and connection 213,947
total temporary differences - decreases 1,496,743
tax base 22,483,981 6,183,095 31.92%
(amount in euro)
statement Of RecOnciliatiOn BetWeen Balance sHeet anD tHeORetical taX cHaRGe
Description Amount IRAP % charge
net production value 41,733,473
theoretical tax charge 1,085,070 2.60%
PeRmanent incReases
established personnel costs 123,970
non-deductible amortisation/depreciation 1,963,141
Personnel costs 50,201
standard contingent liabilities 562,513
extraordinary contingent assets 37,090
local property tax 188,141
financial charges 115,500
Other increases 4,641
total Permanent increases 3,045,197
PeRmanent DecReases
standard contingent assets 2,923
Deduction of personnel costs 11,460,822
total Permanent decreases 11,463,745
temPORaRY DiffeRences - incReases
Grants - plant and connection 18,102
Other 0
total temporary differences - increases 18,102
temPORaRY DiffeRences - DecReases
amortisation and Depreciation 227,598
total temporary differences - decreases 227,598
tax base 33,105,429 860,741 2.06%
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 6564 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
Statement pursuant to point 14) of art. 2427 of the Italian Civil Code: description of temporary differences resulting in recognition of tax assets and liabilities
no amounts were credited or charged to equity.
(valori in euro)
DESCRIPTION 2014 Prepaid taxes 2015 Reabsorptions Tax rate alignment 2015 IncreasesTaxes
for the year2015 Prepaid taxes
Taxable amount
Tax rateTax (a)
Taxable amount
Tax rateTax(b)
Taxable amount
Tax rateTax(c)
Taxable amount
Tax rateTax(d) e=b+c+d
Taxable amount
Tax rateTax
f=a+e
IRES
Provisions for risks 6,804,274 27.50% 1,871,174 27.50% (6,804,274) 3.50% (238,149) 24.00% (238,149) 6,804,274 24.00% 1,633,026
One-off incentive bonus 958,095 27.50% 263,476 (958,095) 27.50% (263,476) 3.50% 986,245 27.50% 271,217 7,741 986,245 27.50% 271,217
amortisation and Depreciation 11,372,251 27.50% 3,127,369 (75,128) 27.50% (20,660) (11,297,123) 3.50% (395,399) 1,777,201 24.00% 426,528 10,469 13,074,324 24.00% 3,137,838
amort./deprec. of revalued assets 8,421,167 27.50% 2,315,821 (860,773) 27.50% (236,713) (7,560,394) 3.50% (264,614) 24.00% (501,327) 7,560,394 24.00% 1,814,494
am./dep. of reabs. rev. ass. 2016 384,380 27.50% 105,705 27.50% 3.50% 27.50% - 384,380 27.50% 105,705
Grants - connections 96,602 27.50% 26,566 (20,749) 27.50% (5,706) (75,853) 3.50% (2,655) 27.50% (8,361) 75,853 24.00% 18,205
Reabsorbed grants - connect. 2016 19,737 27.50% 5,428 27.50% 3.50% 27.50% - 19,737 27.50% 5,428
Provision for write-downs 634 27.50% 174 (571) 27.50% (157) (63) 3.50% (2) 3,425 24.00% 822 663 3,488 24.00% 837
certification and BoD 36,000 27.50% 9,900 (36,000) 27.50% (9,900) 3.50% 40,198 27.50% 11,054 1,154 40,198 27.50% 11,053
tOtal PRePaiD taXes - iRes 7,725,613 (536,612) (900,819) 709,621 (727,810) 6,997,803
IRAP
Provisions for risks 6,319,738 3.10% 195,912 3.10% (6,319,738) 0.50% (31,599) 2.60% (31,599) 6,319,738 2.60% 164,313
One-off incentive bonus 958,095 3.10% 29,701 (958,095) 3.10% (29,701) 0.50% 986,245 2.60% 25,642 (4,059) 986,245 2.60% 25,642
amortisation and Depreciation 1,479,597 3.10% 45,867 (66) 3.10% (2) (1,479,531) 0.50% (7,398) 2.60% (7,400) 1,479,531 2.60% 38,468
amort./deprec. of revalued assets 8,066,987 3.10% 250,077 (227,532) 3.10% (7,053) (7,839,455) 0.50% (39,197) 2.60% (46,250) 7,839,455 2.60% 203,826
Grants - connections 308,975 3.10% 9,578 3.10% (308,975) 0.50% (1,545) 2.60% (1,545) 308,975 2.60% 8,033
tOtal PRePaiD taXes - iRaP 531,135 (36,756) (79,739) 25,642 (90,853) 440,282
tOtal PRePaiD taXes 8,256,748 (573,368) (980,558) 735,263 (818,663) 7,438,085
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 6766 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
Statement pursuant to point 14) of art. 2427 of the Italian Civil Code: description of temporary differences resulting in recognition of tax assets and liabilities
no amounts were credited or charged to equity.
(valori in euro)
DESCRIPTION 2014 Deferred taxes 2015 Reabsorptions Tax rate alignment 2015 IncreasesTaxes
for the year2015 Deferred taxes
Taxable amount
Tax rateTax (a)
Taxable amount
Tax rateTax(b)
Taxable amount
Tax rateTax(c)
Taxable amount
Tax rateTax(d) e=b+c+d
Taxable amount
Tax rateTax
f=a+e
IRES
iRes am./ dep. surplus (sect. ec) 10,824,824 27.50% 2,976,827 (761,999) 27.50% (209,550) (10,062,825) 3.50% (352,197) 24.00% (561,747) 10,062,825 24.00% 2,415,078
Reabs. am./ dep. s. (sect. ec) 2016 784,733 27.50% 215,802 27.50% 3.50% 27.50% - 784,733 27.50% 215,802
Discounting of plant-rel. grants 2,061 27.50% 567 27.50% (2,061) 3.50% (72) 2,409 24.00% 578 506 4,470 24.00% 1,073
Discounting of connec.-rel. grants 1,508,499 27.50% 414,837 (1,079) 27.50% (297) (1,507,420) 3.50% (52,760) 191,801 24.00% 46,032 (7,025) 1,699,221 24.00% 407,813
Reabs. d. of conn.-rel. grants 2016 44,976 27.50% 12,367 27.50% 3.50% 27.50% - 44,976 27.50% 12,367
tOtal DefeRReD taXes - iRes 3,620,400 (209,847) (405,029) 46,610 (568,267) 3,052,133
IRAP
iRaP disc. of conn.-rel. grants 156,750 3.10% 4,859 (18,102) 3.10% (561) (138,648) 0.50% (693) 2.60% (1,254) 138,648 2.60% 3,605
tOtal DefeRReD taXes - iRaP 4,859 (561) (693) 0 (1,254) 3,605
tOtal DefeRReD taXes 3,625,259 (210,408) (405,722) 46,610 (569,521) 3,055,738
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 6968 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
PROFIT FOR THE YEAR
the profit for 2015 was 12,080,108 euro after tax.
this document, comprising the Balance sheet, income statement and notes to the financial statements provide
a true and fair view of the equity and financial position and of the economic result for the period, and match
compulsory accounting records.
on behalf of the BOaRD Of DiRectORs
the chairman
agostino Peroni
Rovereto, 11 march 2016
summary table pursuant to art. 2497/bis. 4th paragraph
Dolomiti Energia Spa
- BALANCE SHEET -
SUMMARY
ASSETS LIABILITIES
items 31/12/2014 items 31/12/2014
a - sUBscRiBeD caPital UnPaiD a - sHaReHOlDeRs’ eQUitY 631,211,047
B - fiXeD assets B - PROV. fOR RisKs anD cHaRGes 5,127,323
i - intangible assets 15,206,176
ii - Property, plant and equipment 58,685,882
iii - financial fixed assets 703,175,908
777,067,966
c - cURRent assets c - emPlOYee teRm. Benefits 3,976,829
i - inventories 79,258
ii - accounts receivable 178,466,041 D - accOUnts PaYaBle 381,394,642
iii - financial assets 67,706,316
iV - cash and cash equivalents 58,071
246,309,685
D - accRUals anD DefeRRals 1,267,152 e - accRUals anD DefeRRals 2,934,962
tOtal assets 1,024,644,803 tOtal liaBilities 1,024,644,803
- RECLASSIFIED INCOME STATEMENT -
SUMMARY
Descrizione 31.12.2014
a - PRODUctiOn ValUe 89,192,971
B - PRODUctiOn cOsts (80,349,156)
- DiffeRence 8,843,815
c - financial incOme anD cHaRGes 61,785,249
D - ValUe aDJUstments Of inVestments
e - eXtRaORDinaRY incOme anD cHaRGes (2,248,882)
- PROfit BefORe taX 1,991,336
22 - incOme taXes fOR tHe YeaR 70,371,518
23 - PROfit (lOss) fOR tHe YeaR (2,454,360)
67,917,158
the key data of the parent company Dolomiti energia spa shown in the summary table required by article 2497-
bis of the italian civil code were extracted from the relevant financial statements for the year ended as at 31
December 2014. for an adequate and complete understanding of Dolomiti energia spa’s equity and financial
position as at 31 December 2014, as well as the economic result achieved by the company in the year ended as
at said date, please read the financial statements which, accompanied by the independent auditors’ report, are
available in accordance with the forms and methods set forth by law. it should be noted that the parent company
Dolomiti energia spa drafts the report to the consolidated financial statements of the Dolomiti energia Group.
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 7170 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
ANNEXES
CASH FLOW STATEMENT (in thousands of Euro) 2015 2014
Profit (+) / loss (-) for the year 12,080 21,742
income taxes 7,293 16,189
interest income for the period (-) (154) (196)
interest expense for the period (+) 5,060 5,071
capital gains/losses (-/+) deriving from the sale of assets 188 (71)
profit (+) / loss (-) for the year before income taxes, interest, dividends and capital gains/losses from sale
24,467 42,735
allocations/absorptions - provisions for other risks and charges 813 830
Depreciation of fixed assets 17,712 17,402
Other adjustments for non-monetary elements (141) (228)
cash flow before changes in nwc 18,384 18,004
Decrease (+) / increase (-) in inventories (208) 427
Decrease (+) / increase (-) in trade receivables 895 4,270
increase (+) / decrease (-) in trade payables 5,986 682
Decrease (+) / increase (-) in prepayments and accrued income 12 (40)
increase (+) / decrease (-) in accrued liabilities and deferred income 1,953 2,377
Other changes in net working capital (1,533) 9,658
cash flow after changes in nwc 7,105 17,374
interest collected (+) 178 160
interest paid (-) (5,061) (5,077)
income taxes paid (-) (14,449) (20,952)
Usage of provisions (1,417) (910)
cash flow after other adjustments (20,749) (26,779)
cash flow from operations 29,207 51,334
Property, plant and equipment / investments (-) (18,265) (18,129)
Property, plant and equipment / Divestments (+) 138 113
intangible assets / investments (-) (50) (68)
financial fixed assets / investments (-) 19 (20)
cash flow from investing activities (18,158) (18,104)
liabilities / increase in short-term payables to banks - (4)
cash pooling (4,298) (26,733)
liabilities / Dividends paid (6,735) (6,492)
cash flows from financing activities (11,033) (33,229)
increase (+) decrease (-) in cash and cash equivalents 16 1
Opening cash and cash equivalents 6 5
closing cash and cash equivalents 22 6
the centralised treasury agreement in place with the parent company requires financial requirements to be ma-
naged centrally at the pooler company (Dolomiti energia), which operates through the transfer of the credit and
debit balances of set Distribuzione’s current accounts. therefore, due to the cash pooling, the company’s cash
and cash equivalents in the pooling accounts at the end of the day are always zero, since they are transferred
to the parent company, which, in turn, supports the company’s financial requirements, in the event its financial
resources are insufficient.
7372 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5 R e l a Z i O n i
Board of Statutory Auditors’ Report TO THE SHAREHOlDERS’ MEETInG FOR APPROvAl OF THE FInAnCIAl STATEMEnTS
to the shareholders of s.e.t. Distribuzione s.p.a.
the Board of statutory auditors of your company exercises the function of legitimacy control and management
supervision pursuant to art. 2403 of the italian civil code. the independent audit has been assigned, by means
of the resolution of the shareholders’ meeting, to the independent auditors Pricewaterhouse coopers s.p.a.,
based on the provisions of art. 2409-bis of the italian civil code. in 2015, our activities were carried out in com-
pliance with the legal provisions and code of conduct of the Board of statutory auditors issued by the italian
accounting Profession, whose results are reported in the two parts highlighted hereunder pursuant to art. 2429,
paragraph 2 of the italian civil code,
cOntROl anD mOnitORinG actiVities
We monitored compliance with the law, with the articles of association and respect for the principles of sound
administration.
We attended shareholders’ meetings and the meetings of the Board of Directors, conducted in compliance with
the statutory and legislative provisions, in relation to which, based on the information obtained, we did not note
any breaches, nor transactions that were manifestly imprudent, hazardous, involved a potential conflict of inte-
rests or were as such to compromise the integrity of company assets.
During the meetings held, we acquired information from the directors on the performance of company opera-
tions, in respect of which we have no particular comments to make.
During the meetings held, we also obtained information from the chief executive Officer on the general performance
of operations and on the business outlook, as well as details of the more significant transactions in terms of size or
characteristics performed by the company and, based on the information acquired, we have no comments to make.
We acquired knowledge and monitored, for matters within our competence, the adequacy and functioning of
the company’s organisational structure, also through information obtained from department managers, in this
regard, we have no particular comments to make.
REPORT
7574 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5 R e l a Z i O n i
We examined various management aspects in depth and monitored, for matters within our competence, the ade-
quacy and functioning of the administrative and accounting system, and its reliability in correctly representing
operating events, by obtaining information from department managers and from the appointed independent
auditor, also through an examination of corporate documents.
in this regard, we held the necessary meetings with the appointed independent auditor, and no significant data
or information emerged that would warrant mention in this report.
We also held several meetings with the supervisory Body, that provided us with the 2015 reports, including all
the activities carried out during the year, and no critical aspects emerged with respect to the correct implemen-
tation of the organisational model.
We did not receive any reports from shareholders in accordance with art. 2408 of the italian civil code, nor did
weissueanyopinionsorcarryoutanyinvestigations;consequently,noomissions,limitationsorirregularities
emerged which need to be reported.
During the course of our supervision, as described above, no other significant events emerged that would require
mention in this report.
PRePaRatiOn Of tHe financial statements anD tHe assOciateD cOntents
We examined the draft financial statements for the year ended as at 31 December 2015, which were made avai-
lable to us in accordance with the terms set out in art. 2429 of the italian civil code, in regards to which we
report the following,
as we are not responsible for the full audit of the financial statements, we monitored their overall presentation,
general compliance with the law in relation to their format and structure, and in this respect we have no parti-
cular comments to make.
the main financial statement items can be summarised as follows:
(amount in euro)
- BALANCE SHEET -
ASSETS LIABILITIES
fixed assets 296,027,003 shareholders’ equity 157,074,040
current assets 108,146,007 Prov. for risks and charges 3,055,738
accruals and deferrals 69,221 employee termination benefits 3,862,017
accounts payable 179,343,925
accruals and deferrals 60,906,511
total assets 404,242,231 total liabilities 404,242,231
- INCOME STATEMENT -
Production value 98,105,229
Production costs (73,967,650)
Difference 24,137,579
financial management (4,905,306)
extraordinary operations 140,813
Profit before tax 19,373,086
taxes (7,292,978)
net profit (loss) 12,080,108
We verified the observance of the legal provisions regarding the contents of the report on operations and, in this
regard, we have no particular observations to make.
as regards the preparation of the financial statements, we specify, based on our careful assessment, that the no-
tes to the financial statements provide all the information required by art. 2427, paragraph 1 of the italian civil
code on the actions that concerned the main financial statements items, and the other management information,
as well as those entered into with related parties.
it should be noted that no exceptional cases were verified during the year which made it necessary to make use
of the exemptions set forth in art. 2423, paragraph 4 and art. 2423-bis, paragraph 2 of the italian civil code.
We expressed our consent to the recognition in the financial statements of research, development and adverti-
sing costs and we agreed with the Directors on the criteria for the amortisation of such costs.
in closing this report, the Board of statutory auditors deems it important to note, as also highlighted in the
notes to the financial statements, that the significant difference between the profit (loss) for 2014 and that for
2015 (- 9,661,466 euro) is attributable to several factors which resulted in contingent assets in 2014 due to the
equalisation of electricity distribution for the years 2012-2013 for 18,545,330 euro.
it is also important to note that the positive results achieved are the fruit of constant, ongoing improvement in
the efficient running of the grid, which were also achieved due to the investments made and the management
ability of the company as a whole.
cOnclUsiOns
in relation to the above and taking into account the results reported in the audit report provided by Pricewa-
terhouse coopers s.p.a, the Board of statutory auditors proposes that the shareholders’ meeting approve the
financial statements for the year ended as at 31 December 2015, as drafted by the Board of Directors, and agrees
with the proposed allocation of the profit for the year formulated by the Directors.
Rovereto, 25 march 2016.
the Board of statutory auditors
aldo laner (chairman)
William Bonomi (statutory auditor)
camanini cristina (statutory auditor)
R E P O R T 7776 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
Indipendent Auditors’ Report
78 S E T D I S T R I B U Z I O N E S P A f I N A N c I A l S T A T E M E N T S 2 0 1 5
Graphic design: Plus, Trento
Set Distribuzione spa Rovereto, via Manzoni 24 www.set.tn.it