Gas Plus

Investor Presentation • Sep 8, 2023

Gas Plus Group

Analyst Presentation IH 2023 Financial Results

September 8th, 2023*

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

Market Scenario

(*) source: BRM

Agenda

Highlights

Remarkable first half of the year results thanks to:

E&P production:

• ✓ stable contribution from the Romanian fields after the gas-in of June 2022
• ✓ positive performance of the domestic fields (+4.5%), which more than balanced natural depletion

Downstream results:

• ✓ return to profitability of Retail
• ✓ growth in the EBITDA margin of the Network as an effect of a cost containment policy

In addition, as previously communicated, in May 2023 Romanian Law no. 119 amended the provisions concerning the Solidarity Contribution for the financial years 2022 and 2023 providing an exclusion from these contributions for the companies – such as Gas Plus Romanian subsidiary – that did not produce hydrocarbons in the 2018-2021 period. Subsequently, IH 2023 results benefit of a tax relief for the amount of the 2022 Romanian Solidarity Contribution reported in the 2022 Consolidated Financial Statement (€ 21.6 M€) and of no additional charges of Solidarity Contribution on 2023 incomes.

Outlook FY 2023:

Assuming stable production levels, and with current declining gas price scenarios, we expect a EBITDA FY 2023 in line with 2022, or slightly lower, depending on the gas price trends with the beginning of the winter season.

Agenda

IH 2023 P&L - E&P contribution
E&P (MScme)	IH23	IH22	∆ (%)
Hydrocarbon Production	118.5	64.1	84.9%
of which natural gas of which oil and condensate	107.0 11.5	49.7 14.4	115.3% (20.1%)
EBITDA (M€)	37.0	13.1	182.4%
Exploration Capex	0.2	0.0	n.a.
Development Capex	12.8	18.2	(29.7%)

E&P Reserves
E&P (MScme)	Jun 30, 2023	Dec 31, 2022	∆ (%)
Hydrocarbon Reserves	3,978.1	4,096.6	(2.9%)
of which domestic	3,331.1	3,394.2	(1.9%)
of which international	647.0	702.4	(7.9%)

▪ EBITDA:

	➢	Excellent performance of the E&P activities led to a
		strong growth in EBITDA due mainly to:
		significant increase of natural gas production • (+115.3%) thanks to the Romanian activities
		(full IH 2023 of production vs only fifteen days in June 2022) and to the Italian activities (+12%);
		positive effects of hedging policy. •
▪		Domestic activities:
	➢	Longanesi project:
		drilling of three new development wells completed, • as well as workover of the pre-existing well;
		tenders for surface facilities launched. •
	➢	development CAPEX increase (12.8 M€ vs 11.1 M€).
▪		International activities:
	➢	Romania:
		development project completed; •
		start of development of renewable generation: • after end IH 2023, the permitting process of a power corridor in the Black Sea has started along the existing MGD Project infrastructure to connect future offshore wind farms to the Transelectrica national power grid (SEN).
	➢	Netherlands: at the beginning of August the exploration
		well E-15-1 in the Dutch North Sea had a negative result.

Retail	IH23	IH22	∆ (%)
Sales (MScm)	29.8	40.5	(26.4%)
Residential	23.3	31.7	(26.5%)
Small Business/Multipod	3.5	4.4	(20.5%)
Industrial	3.0	4.4	(31.8%)
EBITDA (M€)	2.0	(6.1)	n.a.

• EBITDA: the significant margin recovery (approximately +8.1 M€) in the first half of the year is the outcome of the procurement and customer sales strategy implemented after overcoming the turbulent energy market conditions, which had significantly impacted procurement conditions of the previous year.
• Volumes sold in IH 2023 posted a decrease versus the previous year due to warmer temperatures and reduction of consumption in all market segments.
• Market provisions: ARERA regulated the modalities by which natural gas sellers will have to manage the removal of the protected price scheduled on January 1, 2024 for the end of gas protection market (regime di tutela) and for the identification of vulnerable gas customers with Resolutions 100/2023/R/GAS and 102/2023/R/GAS.

TTF Gas Price – Quarter Ahead IH 2023 P&L – Network Contribution
	IH 23	IH 22	∆ (%)

Distributed Volumes (MScm)	100.8	120.2	(16.1%)
Direct end users (#K)	109.0	109.0	0.0%
Pipeline (Km)	1,829.7	1,823.5	0.3%
EBITDA (M€)	4.1	3.3	24.2%
Capex (M€)	2.3	1.5	53.3%

• The warmer temperatures registered during IH 2023 have led to a decrease in the distributed volumes of gas (-16.1%) compared to last year.
• EBITDA results higher than last year (+24.2%) due to:
  • strong decrease of Opex, mainly due to reduction of energy related costs;
  • improvement in revenues cap from gas distribution, motivated by RAB's increase as a result of higher investments.
• The installation of the new G4-G6 smart meters is ongoing: 75% of the total was installed as of June 30st 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.

Group (M€)	IH 23	IH 22	∆ (%)
Revenues	90.8	77.1	17.8%
Operating Costs	48.9	68.0	(28.1%)
EBITDA	41.9	9.1	360.4%
EBIT	30.3	0.8	3,687.5%
EBT	25.1	1.5	1,573.3%
Net Result	39.8	(6.9)	n.a.
EPS (€)	0.91	(0.16)	n.a.

• Increase in Revenues as effect of higher gas productions (+115.3%). Decrease in Operating costs due to the lower gas purchase costs (-18.5 M€).
• Strong growth in EBITDA thanks to the positive economic performance of all Group activities and, in particular, of the B.U. E&P.
• Amortization and depreciation growing for the increase in E&P productions.
• Strong growth in net profit thanks to the increase in EBITDA and nonrecurring income (21.6 M€) following the non-payment of the extraordinary solidarity contribution in Romania.

Financial Results

June 30, 2023 TTF Gas Price – Group Balance Sheet – Quarter Ahead

Group (M€)	Jun 30, 2023	Dec 31, 2022	∆ (%)
Inventories	4.4	3.4	29.4%
Receivables	18.1	50.6	(64.2%)
Payables	(26.9)	(51.8)	(48.1%)
Other Working Credits/Debits	(2.2)	(43.9)	(94.9%)
Non Current Assets	399.5	399.7	(0.0%)
Taxes, Abandonment, Severance and Other provision	(120.9)	(122.5)	(1.3%)
Net Invested Capital	272.0	235.5	15.5%
Net Financial Debt	49.5	49.0	1.0%
of which long term	43.2	53.1	(18.8%)
of which short term	6.3	(4.1)	n.a.
Equity	222.5	186.5	19.3%
Total Sources	272.0	235.5	15.5%

• Non Current Assets in line with FY22 after investmentsfor 15.4 M€.
• Decrease in negative amount of Working Capital due to the payment of tax debts (royalties, Windfalltax).
• 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).

• The NFP confirms a significant reduction despite the investments.
• NFP is close to its lowest levels since 2010 and also includesthe effects of IFRS 16 on leasing contracts equal to 3.5 M€.
• The operating cash flows exceeded expenditure on investments.

Company Profile

Shareholding as at 30 June 2023 Share information Share price performance 73,94% 9,61% 2,98% 13,47% Us.Fin. Srl Findim S.A. Treasury Shares Floating N. of share: 44,909,620 Share price as of 30.06.2023: € 2,57 Share price as of 07.09.2023: € 2,73 Mkt cap 30.06.2023: € 115,4 million Italian Stock Exchange – segment MTA Own shares as of 30.06.2023: 1,336,677

Management

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

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