Gas Plus

Investor Presentation • Apr 12, 2024

Gas Plus Group

Analyst Presentation FY 2023 Financial Results

April 12th, 2024*

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

Market Scenario

Brent Price – Month €/\$ Exchange Rate - Spot

Highlights

FY 23 results well within guidance previously communicated:

• ✓ EBITDA 70.5 M€ close to 2022 levels 76.1 M€ (-7.4%)
• ✓ Same trend for EBIT and Net Result adjusted
• ✓ Higher E&P EBITDA decrease (-27.5%) but lower than gas price drop thanks to full year Romanian production
• ✓ EBITDA progress for downstream BUs (Network +17.1% and Retail back to a positive EBITDA margin)
• ✓ Progression of Longanesi work programme all subsurface activities completed
• ✓ Dividend increase up to 15 €/cent per share from previous 5 €/cent taking into account financial needs linked to further investments

Outlook 2024

2024 results are expected substantially lower - being the E&P production mix focussed on gas (90.4%) assuming present lower gas price scenario

Longanesi's gas in - main driver for boosting growth, also in challenging gas price scenarios - expected for Q1 26 (or for Q1 25 in the hypothesis of Long Production Test)

▪ EBITDA key factors:

• ➢ Decreasing gas prices (-66%)
• ➢ Production (+26.2%):
• Domestic: gas production confirmed year-to-date increase (+1.4 MSmc) despite extraordinary maintenance in IIH 2023; on the only oil field (Cavone) reduction due to natural depletion (-4.6 MSmce)
• International : Romanian full year gas production in 2023 compared to approximately half year of 2022 (+50.7 MSmc)
• ➢ Positive effects of hedging policy
• Domestic activities – Longanesi project
  • ➢ Drilling and completion activities of the 3 existing wells completed and workover of one of the existing wells finalized
  • ➢ Laying of flowlines from wells to treatment plant ongoing
  • ➢ Underway the procedures for the award of the contracts for the treatment plant and associated works
• Domestic activities – Development Capex
  • ➢ Increase confirmed year-to-date (17.5 M€ vs 13.6 M€)
• International activities
  • ➢ Romania
  • Stable daily basis production
  • Permitting is underway for a power corridor in the Romanian Black Sea, along the existing MGD Project infrastructure, connecting future offshore wind parks to the national grid (SEN)
  • ➢ Netherlands
  • Negative result of the exploration well E-15-1 in the Dutch North Sea

FY 2023 P&L - E&P contribution
E&P (MScme)	FY23	FY22	∆ (%)
Hydrocarbon Production	229.2	181.6	26.2%
of which natural gas	207.3	155.2	33.6%
of which oil and condensate	21.9	26.4	(17.0%)
EBITDA (M€)	60.5	83.5	(27.5%)
Exploration Capex	1.5	0.2	650%
Development Capex	18.8	24.3	(22.6%)

E&P Reserves
E&P (MScme)	Dec 31, 2023	Dec 31, 2022	∆ (%)
Hydrocarbon Reserves	3,938.6	4,096.8	(3.9%)
of which domestic	3,250.6	3,394.3	(4.2%)
of which international	688.0	702.5	(2.1%)

Retail	FY23	FY22	∆ (%)
Sales (MScm)	49.8	61.8	(19.4%)
Residential	38.5	47.5	(18.9%)
Small Business/Multipod	5.8	6.8	(14.7%)
Industrial	5.5	7.6	(27.6%)
EBITDA (M€)	4.2	(11.8)	n.a.

• EBITDA: significant margin recovery (+16.0 M€) confirmed year-to-date, as outcome of the supply and sales strategy implemented after overcoming the turbulent energy market conditions of 2022
• Decrease of sold volumes (-19.4%) due to:
• ➢ Warmer temperatures (-13.0%)
• ➢ Reduction of number of the customers (-6.4%) centred in IIH23 ensued by the end of the gas protection market (regime di tutela)
• Recovery of marginality in all customer's segments

TTF Gas Price – Quarter Ahead FY 2023 P&L – Network Contribution

	FY23	FY22	∆ (%)
Distributed Volumes (MScm)	182.7	200.9	(9.1%)
Direct end users (#K)	108.9	109.0	(0.1%)
Pipeline (Km)	1,830.0	1,827.0	0.2%
EBITDA (M€)	8.2	7.0	17.1%
Capex (M€)	3.9	2.7	44.4%

• The warmer temperatures registered during 2023 led to a decrease in the distributed volumes of gas (-9.1%)
• EBITDA results higher (+17.1%). The key factors are:
• ➢ Slight improvement in revenues cap from gas distribution, due to RAB's increase as a result of higher investments
• ➢ Optimization of Opex
• ➢ The growth of Capex, with an increase of capitalized costs
• The installation of the new G4-G6 smart meters has been completed: 85% of the total was installed as of December 31st 2023, in line with the deadline set by the Authority (85% by 31/12/2023)
• 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 target

Financial Results

Group (M€)	FY 23	FY 22	∆ (%)
Revenues	160.8	235.4	(31.7%)
Operating Costs	90.3	159.2	(43.3%)
EBITDA	70.5	76.1	(7.4%)
EBIT	44.5	61.4	(27.5%)
EBT	36.7	55.8	(34.2%)
Net Result	49.2	3.4	n.a.
EPS (€)	1.13	0.08	n.a.

• Decrease in Revenues (-31.7%) as effect of lower gas prices. Decrease in Operating costs due to the lower gas purchase costs and lower taxes (royalty and windfall tax) on gas production
• Decline in EBITDA (-7.4%) compared to a drop in gas prices of 66%: positive economic performance of all Group activities
• Amortization and depreciation in line with 2022 values
• Following impairment tests, devaluations(6.6 M€) and revaluations of some previously devalued assets(4.0 M€)
• Strong growth in net profit also thanks to the non-recurring income (21.6 M€) following the nonpayment of the extraordinary solidarity contribution in Romania

Financial Results

Financial Results

December 31, 2023 TTF Gas Price –– Quarter Group Balance Sheet Ahead

Group (M€)	Dec 31, 2023	Dec 31, 2022	∆ (%)
Inventories	4.1	3.4	20.6%
Receivables	31.2	50.7	(38.5%)
Payables	(25.4)	(51.8)	(51.0%)
Other Working Credits/Debits	4.4	(43.9)	n.a.
Non Current Assets	391.6	399.7	(2.0%)
Taxes, Abandonment, Severance and
Other provision	(126.4)	(122.5)	3.2%
Net invested capital	279.5	235.5	18.7%
Net Financial Debt	50.5	49.0	3.1%
of which long term	11.5	53.1	(78.3%)
of which short term	39.0	(4.1)	n.a.
Equity	229.0	186.5	22.8%
Total Sources	279.5	235.5	18.7%

• Working capital positive again after the reduction of tax debts (royalties, Windfalltax, extra-profit tax)
• Decrease in Non Current Assets after investments for 24.5 M€ as effect of amortization and depreciation (23.4 M€) and the sale of the shareholding in a related company (7.5 M€)
• Despite the investments slight increase in Net Financial Debt as effect of positive cash flows of all activities
• Debt/equity ratio at 0.22 (vs 0.26 at 31/12/2022)

• NFP remains close to its lowest levels since 2010 and also includes the effects of IFRS 16 on leasing contracts equal to 3.6 M€
• The operating cash flows exceeded expenditure on net investments

Company Profile

Share price performance

Group structure* Management

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

(*) Gas Plus Group Structure as of 31 december 2023

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.