LETTER FROM THE CEO

ENERGETIC SOURCE GROUP SHOWS STRONG COMMITMENT NOT ONLY TOWARDS AN IMPROVEMENT IN PROFITABILITY BUT ALSO IN THE IMPLEMENTATION OF ITS CORPORATE SOCIAL RESPONSIBILITY.

Dear Friends, the macroeconomic scenario of the last two years was unfortunately characterized by a strongly negative economic cycle in Italy and, in general, in all mature markets.
The recession also affected the energy utilities sector, which suffered both the decrease in demand, the overcapacity in electricity generation, and the considerable tightening of credit conditions.

In this challenging environment, Energetic Source Group has been able to follow the path set with the approval of the Strategic Plan 2013-2015, which led, as planned, to a satisfactory financial performance and to both the implementation of renovation policies and the consolidation of an integrated, flexible and efficient structure.

Energetic Source is investing significant resources in its expansion in the key European energy markets and in the opening of commercial and industrial relations with major international operators. As for the commercial activities, the group has focused on maximizing the creation of added-value enriching its range of services offered to large industrial customers and developing proposals dedicated to the small and medium sized company through a dual fuel offer and the provision of business support services. This strategic mix has allowed the Group to enhance the policy of electricity and gas supplies and to transfer the overall economic benefits to end users. On the basis of these results, Group's actions and goals have also affected its subsidiaries that managed to consolidate their efficiency and overall profitability.

Flyenergia S.p.A., supplier of gas and electricity for domestic use and small businesses, has successfully managed to become a reliable and trustworthy partner for its customers. It is present throughout the national territorywhile keeping environmental protection, transparency and fairness on track.

Geogastock S.p.A. is developing a natural gas storage facility project in the south of Italy (Basilicata); in 2013, the acquisition of the areas where the compressor station will be built was finalized as well as the ‘due diligence’ to finance the project.

As an independent "vertically integrated" company in the Italian market, Energetic Source is also active in the production of electricity from traditional sources:

En.Plus, a gas-fired, combined cycle power station with an electrical capacity of 400 megawatts and a thermal capacity of around 700 megawatts;
Ecowatt Srl a hydroelectric power plant with a power of 5 MW and a production of 12Gwh;
Wind Energy S.r.l. a wind power plant with a nominal power of 7.5 MW.

The Group is committed to improve the profitability but also to implement its Corporate Social Responsibility, as proven by a Framework Agreement signed with the most important Italian Consumers' Associations that protects consumers against any form of violation of their rights.

The Group believes that the continued commitment to an ethical approach to the market and a creation of a relationship based on mutual trust between suppliers and consumers are the main elements for the competitiveness and success of its business.

The Group is proud of the new financial indicators (revenues, EBITDA, EBIT) which are the result of the combined effort the Board of Directors, Management and the employees, daily engaged in the development of the business and in the affirmation of the values on which the company believes.

We believe that all these elements, even in a weak macroeconomic environment, will allow the Group to confidently face the challenges ahead and seize all opportunities with the goal of creating value and satisfaction for all those who work with us.