Gas Plus

Investor Presentation • Sep 11, 2024

Gas Plus Group

Analyst Presentation IH 2024 Financial Results

September 11th, 2024*

0 * This document is updated on 6 months basis, occurring after 31 December and 30 June closing

Market Scenario

Highlights

Considering the IH 2024 market scenarios, satisfactory economic results vs IH 2023 adjusted excluding the benefit of the tax relief for the 2022 Romanian Solidarity Contribution amount (21.6 €M), due to:

• ❑ E&P gas prices and production negative trend, as per breakdown below
  • ✓ Lower market gas prices (-34% vs IH 2023)
  • ✓ Decrease of production (-7% vs IH 2023) mainly due to natural depletion of Italian fields
• ❑ Downstream positive contribution
  • ✓ Increased profitability of Retail
  • ✓ Improved EBITDA margin of Network

Longanesi development update: LPT scheduled to be operational in the first months of IH 2025 and tenders for surface facilities currently ongoing

Outlook FY 2024:

Thanks to the gas price improvement of summer 2024 and assuming current scenarios for the remaining months of 2024, expected in IIH 2024 an increased E&P marginality vs IH 2024 and a positive and stable trend of Downstream activities. Excluding non-recurring events, we envisage a 2024 Net Profit consistent with the same dividend level of the previous financial year and a low level end 2024 Net Financial Position, only slightly increasing compared to the end of 2023, as a result of the ongoing Longanesi investments

Financial Results: E&P

EMARKET S SDIR NM CERTIFIED
-----------------------------------------

▪
	EBITDA

• ➢ IH 2024 EBITDA 53.5% vs IH 2023, mainly due to:
  • On average lower E&P gas prices in Italy and Romania vs IH 2023 (-38%)
  • Decrease in gas net production volumes from E&P Italy vs IH 2023 (-13%) mainly due to a non-operated concession (maintenance under study) and to an operated concession (maintenance in progress with benefit expected in the first months of 2025)

▪ Domestic activities

• ➢ Longanesi project
  • LPT is scheduled to be operational in the first months of IH 2025
  • Tenders for surface facilities are currently ongoing. Once completed, Development Capex expected to increase in IIH 2024 vs IH 2024
  • Laying of flowlines from wells to treatment plant completed
• International activities
  • ➢ Romania
    • IH 2024 slight production increase vs IH 2023 (+1.5%)
    • Permitting phase ongoing for a power corridor in the Romanian Black Sea, along the existing MGD Project infrastructure, ideal for connecting future offshore wind parks to the national grid (SEN)

IH 2024 P&L - E&P contribution
E&P (MScme)	IH24	IH23	∆ (%)
Hydrocarbon Production	110.0	118.5	(7.2%)
of which natural gas of which oil and condensate	100.3 9.7	107.0 11.5	(6.3%) (15.7%)
EBITDA (M€)	17.2	37.0	(53.5%)
Exploration Capex	0.1	0.2	(50.0%)
Development Capex	4.9	12.8	(61.7%)

E&P Reserves
E&P (MScme)	Jun 30, 2024	Dec 31, 2023	∆ (%)
Hydrocarbon Reserves	3,829.3	3,938.6	(2.8%)
of which domestic	3,196.9	3,250.6	(1.7%)
of which international	632.4	688.0	(8.1%)

Retail	IH24	IH23	∆ (%)
Sales (MScm)	27.1	29.8	(9.1%)
Residential	21.6	23.3	(7.3%)
Small Business/Multipod	3.3	3.5	(5.7%)
Industrial	2.2	3.0	(26.7%)
EBITDA (M€)	3.2	2.0	60.0%

• EBITDA recovery in IH 2024 vs IH 2023 (+1.2 M€) is mainly the outcome of the supply and sales strategy implemented after overcoming the turbulent energy market conditions of 2022, achieving higher marginality of the customer mixed portfolio
• Volumes sold in IH 2024 posted a decrease vs IH 2023 (-9.1%) due to reduction of residential customers' consumption and reduction of customers ensued by the end of the gas protection market (regime di tutela)

• The increase in gas consumption of industrial customers during IH 2024 vs IH 2023 led to an increase in the distributed gas volumes vs IH 2023 (+3.8%)
• EBITDA results higher vs IH 2023 (+17.1%) due to:
• ➢ Improvement in revenues constraint from gas distribution, due to:
  • I. RAB's increase as a result of higher investments
  • II. Increase in recognized operating costs
• ➢ Opex optimization
• Installation of the new G4-G6 smart meters completed: 85% of the total was installed as of 31/12/2023, in line with the deadline set by the Authority (85% by 31/12/2023). Now the company goal is to reach 90%
• No ATEM tenders involving Group concession have been launched to date. The Group intends to evaluate the new ATEM tenders in order to maintain the same perimeter of activities as a minimum

TTF Gas Price – Quarter Ahead IH 2024 P&L – Network Contribution

	IH 24	IH 23	∆ (%)
Distributed Volumes (MScm)	104.6	100.8	3.8%
Direct end users (#K)	108.7	109.0	(0.3%)
Pipeline (Km)	1,830.5	1,829.7	0.05%
EBITDA (M€)	4.8	4.1	17.1%
Capex (M€)	1.1	2.3	(52.2%)

Financial Results

Group (M€)	IH 24	IH 23	∆ (%)
Revenues	65.7	90.8	(27.6%)
Operating Costs	41.8	48.9	(14.5%)
EBITDA	23.9	41.9	(43.0%)
EBIT	13.2	30.3	(56.4%)
EBT	8.0	25.1	(68.1%)
Net Result	5.3	39.8	(86.7%)
EPS (€)	0.12	0.91	(86.8%)

• Decrease in Revenues (-27.6%) as effect of lower gas prices. Decrease in Operating costs due to the lower gas purchase costs and lower taxes on gas production (royalty and windfall tax)
• Positive economic performance of all Group activities but decline in EBITDA mainly attributable to a drop in both market gas prices and productions
• Amortization and depreciation and financial charges slightly down
• Sharp decline in net profit. The net result IH 2023 included non-recurring income (21.6 M€) following the nonpayment of the extraordinary solidarity contribution in Romania

Financial Results

Financial Results

June 30, 2024 TTF Gas Price – Group Balance Sheet – Quarter Ahead

Group (M€)	Jun 30, 2024	Dec 31, 2023	∆ (%)
Inventories	3.9	4.1	(4.9%)
Receivables	23.5	31.2	(24.7%)
Payables	(18.7)	(25.4)	(26.4%)
Other Working Credits/Debits	(10.7)	4.4	n.a.
Non Current Assets	384.5	391.6	(1.8%)
Taxes, Abandonment, Severance and
Other provision	(125.2)	(126.4)	(0.9%)
Net Invested Capital	257.3	279.5	(7.9%)
Net Financial Debt	30.1	50.5	(40.4%)
of which long term	9.3	11.5	(19.1%)
of which short term	20.8	39.0	(46.7%)
Equity	227.2	229.0	(0.8%)
Total Sources	257.3	279.5	(7.9%)

▪ Non Current Assets down after 10.7 M€ in amortization and depreciation and 6.3 M€ in investments

▪ Negative amount of net working capital due to dividends and tax charges being paid after the end of the half-year

• Strong reduction in net financial debt thanks to positive cash flows from all group activities
• Debt/equity ratio at 0.13 (vs 0.22 at 31/12/2023)

• The NFP confirms significant reduction despite investments and reached the lowest level since 2010, despite also including the effects of IFRS 16 on leasing contracts equal to 3.3 M€
• The strong reduction in net financial position is attributable to the significant cash flows from operating activities which are higher than investments of the period

Company Profile

Group structure*

Stefano Cao	Chairman – Gas Plus S.p.A.
Davide Usberti	CEO Gas Plus S.p.A.
Cinzia Triunfo	Group General Manager and Director of Gas Plus S.p.A.
Germano Rossi	Group CFO
Massimo Nicolazzi	Executive Director Gas Plus Dacia S.r.L.
Regulated Activity - Network
Leonardo Dabrassi	Chairman – GP Infrastrutture S.r.l
Achille Capelli	Network Manager

Management

(*) Gas Plus Group Structure as of 30 June 2024

Disclaimer

This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Gas Plus. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Gas Plus to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'', ''intend'', ''may'', ''plan'', ''objectives'', ''outlook'', ''probably'', ''project'', ''will'', ''seek'', ''target'', ''risks'', ''goals'', ''should'' and similar terms and phrases. There are a number of factors that could affect the future operations of Gas Plus and could cause those results to differ materially from those expressed in the forward-looking statements included in this Report, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Group's products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from re-categorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, project delay or advancement, approvals and cost estimates; and (m) changes in trading conditions.

All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Each forwardlooking statement speaks only as of the date of this presentation. Neither Gas Plus nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation.