Gas Plus

Investor Presentation • Sep 10, 2021

Gas Plus Group

Analyst Presentation IH 2021 Financial Results

September 10th, 2021*

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

Market Scenario

2

(*) source: BRM; in July 2020 the legal market framework in Romania routed towards a liberalization of the market

Agenda

Highlights

E&P Italian Activities

• ✓ EBITDA growth (EBITDA +5.3 M€ in IH 2021 vs -1.4 M€ in IH 2020), thanks to the substantial increase in gas (+138%) and oil (+63%) prices, with production nearly stable (-4%).
• ✓ "Longanesi" project: in the first half of 2021, preliminary activities related to the civil works of the well locations that will host the drilling rigs for Longanesi project were completed.

E&P International Activities

✓ Romania: the development of the MGD (Midia Gas Development) gas project in the Romanian Black Sea has now reached twothirds of the work programme and the gas-in is expected by the first half of 2022.

Retail

✓ The apparent contraction in the Business Unit's overall margin still derives from non-recurring components (€ -0.5 M in 1H21). The effects of Covid-19 pandemic on the consumption of certain types of customers and the gas price fluctuations on fixedprice contracts continue, however, to determine an atypical performance of certain sales segments both in terms of volumes and margins.

Network & Transportation

✓ Stable EBITDA despite the decrease in regulatory revenue cap

Agenda

Financial Results: E&P

IH 2021 P&L - E&P contribution
E&P (MScme)	IH21	IH20	∆ (%)
Hydrocarbon Production	67.2	70.2	(4.3%)
of which natural gas of which oil and condensate	49.5 17.7	51.1 19.1	(3.1%) (7.3%)
EBITDA (M€)	5.1	(1.7)	n.a
Exploration Capex	0.1	0.2	(50%)
Development Capex	5.7	6.2	-8.1%

	E&P Reserves
E&P (MScme)	Jun 30, 2021	Dec 31, 2020	∆ (%)
Hydrocarbon Reserves	4,423.7	4,490.8	(1.5%)
of which domestic	3,698.7	3,765.8*	(1.8%)
of which international	725.0	725.0	0%

▪ Increase in EBITDA due to:

• ✓the recovery of macroeconomic scenarios, in particularly hydrocarbon prices. Significant increase in revenues (+20%), with the production remaining substantially unchanged
• ✓cost containment

▪ Domestic activities:

• ― "Longanesi" project:
• ― concluded preliminary activities for the future drilling phase
• ― continuation of procurement and engineering activities for treatment plant revamping and surface facilities
• ― nonperformance by the non-operating partner, which does not currently affect the timing of the work programme
• International activities in Romania - Offshore concession "Midia Shallow XV ":
• ― Continuation of development phase which has now reached two-thirds of its schedule and whose gas-in is expected to be in the first half of 2022
• ― Due to the pandemic, the General Contractor has been requested price revisions, currently under negotiation. On the other side, Romanian market prices are aligning with the ones of the other European hubs and are significantly higher than the initial projections estimated in the evaluation phase of the project

Retail	IH21	IH20	∆ (%)
Sales (MScm)	43.6	43.2	1.1%
Residential	35.1	34.9	0.7%
Small Business/Multipod	4.6	4.3	7.0%
Industrial	3.9	4.0	(2.0%)
EBITDA (M€)	2.1	2.7	(21.8%)

• The first semester of 2021 has been characterized by the following events:
• ‐ Sharp recovery of gas prices between 2020 and 2021
• ‐ Drops in temperatures registered, in particular in the last part of the first semester, compared to last year.
• Limited impact of Covid-19 on Retail results thanks to the portfolio mix (~80% of residential customers) with limited impact on sales and on creditworthiness
• Decrease in EBITDA mainly due to a nonrecurring component (€ 0.5 M); net of this effect, the overall unit margin would be in line with IH20
• Constant attention to limit the switch rate providing customized offers to reliable customers (Residential and Small Business). Further commercial analysis will be assessed considering the planned ending of "Mercato Tutelato" on the 1st of January 2023

TTF Gas Price – Quarter Ahead IH 2021 P&L – Network Contribution (GP Infrastrutture – Rete Gas Fidenza)

	IH21	IH20	∆ (%)
Distributed Volumes (MScm)	123.3	112.8	9.3%
Direct end users (#K)	108.9	108.7	0.2%
Pipeline (Km)	1,778.2	1,773.2	0.3%
EBITDA (M€)	4.1	4.1	0.8%
Capex (M€)	1.4	1.0	41.0%

TTF Gas Price – Quarter Ahead IH 2021 P&L – Transportation Contribution (GP Infrastrutture Trasporto)

	IH21	IH20	∆ (%)
Transported Volumes (MScm)	6.0	5.0	19.0%
Direct end users (#K)	0.1	0.1	0.9%
Pipeline (Km)	41.8	41.8	0%
EBITDA (M€)	0.03	0.03	(3.6%)

• The lower temperature registered during the first semester of 2021 have led to an increase in the distributed volumes of gas (+9.3%) compared to the last year.
• Notwithstanding the additional restrictions on revenues cap from gas distribution, EBITDA results in line with IH20.
• Significant capex increase (+41%)
• Limited impact of Covid-19 on BU Network: secured the essential activities during lockdown period with a recovery of other activities from May 5th ,2020. No significant impact on collection from customers
• The installation of the new G4-G6 smart meters is ongoing: ~40% of the total was installed as of June 30th 2021, 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 21	IH 20	∆ (%)
Revenues	41.0	41.3	(0.7)
Operating Costs	30.9	36.6	(15.5)
EBITDA	10.1	4.7	114.0
EBIT	1.9	(4.2)	145.9
EBT	(0.6)	(6.8)	90.5
Net Result	(0.3)	(4.5)	93.3
EPS (€)	(0.01)	(0.10)	n.a.

• Overall Revenues are in line with IH20; strong decrease in Operating Costs compared to the previous year (-15.5%) which was influenced by the presence of non-recurring items related to the BU E&P (€ 2.4 M)
• Significant EBITDA growth thanks to the recovery of energy scenarios and margins related to E&P activities
• Strong increase in EBIT due to lower depreciation
• Increase in Financial charges due to the progressive use of credit lines available for investments
• Net Result of the first half of the year in substantial economic breakeven

Financial Results

June 30, 2021 TTF Gas Price – Group Balance Sheet – Quarter Ahead

Group (M€)	Jun 30, 2021	Dec 31, 2020	∆ (%)
Inventories	3.7	3.1	19.3%
Receivables	17.2	24.0	(28.3%)
Payables	(17.7)	(25.6)	(30.9%)
Other Working Credits/Debits	(16.9)	4.9	n.a.
Non Current Assets	363.1	360.7	0.7%
Taxes, Abandonment, Severance and Other provision	(102.9)	(104.0)	(1,1%)
Net Invested Capital	246.5	263,1	(6.3%)
Net Financial Debt	75.6	85.2	(11.3%)
of which long term	75.9	55.3	37.2%
of which short term	(0.3)	29.9	n.a.
Equity	170.9	177.9	(3.9%)
Total Sources	246.5	263,1	(6.3%)

• Strong reduction in Working Capital due to the effect of negative value of hedging derivatives on commodities
• Slight increase of Non Current Asset considering investmentsfor € 7.4 M
• Decrease in Net Financial Debt as effect of the positive cash flows deriving from the main Business Units. At the beginning of the year, the Group obtained additional loans of € 20 M from its lending banks

• Debt/equity ratio at 0.44 (vs 0.48 at 31/12/2020)

• NFP remains at low levels, with a decrease in IH21 despite of investments (from FY2019 onwards it also includes also the effects of IFRS 16 on leasing contracts amounting to €-4,6 M at June 2021)

• Positive cash flow from operating activities in IH21 (€ 16.4M), despite the Covid-19 pandemic

Company Profile

Davide Usberti	CEO Gas Plus S.p.A.
Lino Gilioli	VP and Lead Independent Director 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 (E&P Int. Activities)
Regulated Activity - Network
Leonardo Dabrassi	Chairman – GP Infrastrutture S.r.l
Achille Capelli	Network Manager

(*) Gas Plus Group Structure as of 30 June 2021

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.