Gas Plus

Investor Presentation • Aug 4, 2017

Analyst Presentation 1H 2017 Financial Results August 4th , 2017

www.gasplus.it

INDEX

• HIGHLIGHTS
• FINANCIAL RESULTS

MARKET SCENARIO

Market

HIGHLIGHTS

Highlights

• E&P: new progresses in development projects:
• the first new gas-in (Mezzocolle) started after the end of 1H 2017;
• further progress in Longanesi project authorization (local municipalities resolutions issued).
• E&P: results positively influenced by the improvement of the hydrocarbon price scenario and the constant control of the operating costs: increase in Ebitda despite the production being consistently interrupted in one of E&P's main concession, which is not operated by the Group, and the lack of contribution of the new gas-in during the period.
• Commercial activities: confirmed the good marginality of the latest periods.
• Network & Transportation: increment in the profitability and the distributed volumes mainly thanks to the two new distribution concessions, acquired last year
• Strong reduction in NFP

FINANCIAL RESULTS: E&P E&P

SOCIETA' PADANA ENERGIA MAJOR PROJECTS UPDATE

Longanesi • Hydrocarbons: Gas • Reserves: ~ 1.1 BScm • Peak production: 230 MScm/year	Gas-in Mezzocolle in July 2017 • Hydrocarbons: Gas • Reserves: ~ 300 MScm • Peak production: 40 MScm/year
Other projects	R&D

• Hydrocarbons: Gas
• Reserves: ~ 300 MScm

• Peak production: 40 MScm/year

• Lab Cavone: first O&G site for testing and monitoring

• Exploration & Reasearch: several exploration project

SOCIETA' PADANA ENERGIA KEY FACTORS

FINANCIAL RESULTS: E&P E&P

1H 2017 P&L - E&P contribution
E&P (M€)	1H17	1H16	% Change
Hydrocarbon Production
(MScme)	57.6	76.1	-24.3%
of which natural gas	46.8	63.0	-25.7%
of which oil and condensate	10.8	13.1	-17.5%
EBITDA	3.1	2.0	55%
Exploration Capex	0.7	1.1	-36.4%
Development Capex	3.7	5.4	-31.5%

Exploration & Development:

• Domestic activity:
• "Longanesi" project: EIA and local municipalities resolution issued. Detail engineering ongoing.
• Mezzocolle: construction activities finished in 1H 2017. Gas-in in July 2017. Production build-up ongoing.

International activity :

• Activities in offshore concession "Midia Shallow and Pelican" ongoing:
• Exploration: two new wells expected between November 2017 and April 2018;
• Development: FEED study completed for the development of the already discovered reserves (1.4 BScm).
• Production decline due to (i) temporarily production suspension of some mining sites and the missed contribution of Garaguso concession (-14.9%) and (ii) natural depletion (-9.4%).
• EBITDA increase, despite a significant production decline, was driven by a improvement of hydrocarbon prices and the constant control of operating costs.
• As of June 30th , 2017 2P hydrocarbon reserves: 4.45 BScme.

Gas Assets

1H 2017 P&L - Commercial Gas Assets Contribution

Retail Gas Assets (MScm)	1H17	1H16	% Change
Sales (MScm)	52.1	52.5	-0.8%
Residential	41.2	41.2	0.0%
Small Business/Multipod	7.0	7.5	-6.7%
Industrial	3.9	3.8	+2.6%
EBITDA	3.7	3.7	-

• Stable level of sales and Ebitda compared to a very favorable half in 2016.
• In the second half the aim will be to limit the client number reduction starting a modular proposal to meet the needs of the customers (both Residential and Small Business), focusing on the most interesting areas.
• Introduction of the new customer management software (ERP).

FINANCIAL RESULTS: N&T and Storage

Network and Transportation Storage

1H 2017 P&L – N&T Contribution

NETWORK (M€)	1H17	1H16	% Change
Distributed Volumes (MSmc)	108.9	105.9	2.8%
Direct end users (#K)	95.8	95.9	-0.1%
Pipeline (Km)	1,560.0	1,556.4	0.2%
CAPEX	1.1	4.7	-7.7%
EBITDA	3.9	3.8	3.3%

Network

• Positive contribution to Group results with an EBITDA growth of 3.3% over 1H 2016
• In the first months of 2017, two bids for the Milan 1 and Torino 2 ATEM bids were submitted. The Bidding Commissions are still evaluating both the bids.
• Evaluation of the new ATEM tenders in order, at least, to maintain the same perimeter of activities

TRANSPORTATION (M€)	1H17	1H16	% Change
Transported Volumes (MSmc)	5.3	5.1	+3.9%
Pipeline (Km)	41.8	41.9	-0.1%
EBITDA	0.1	0.1	-28%

Storage projects:

All three projects are located in Central Italy, characterized by only a few storage sites, and in the same area allowing for potential operational synergies:

• SAN BENEDETTO (84.7% GPS - Operator): EIA obtained in June 2014. During 2016 the Group increased its interest in this JV from 49% to 84.7%
• POGGIOFIORITO (100%GPS): EIA obtained in June 2014
• SINARCA (60% GPS - Operator): Final authorization obtained. Technical and economic evaluation ongoing

1H 2017– Group P&L

Group (M€)	1H17	1H16	% Change
Revenues	43.7	45.5	(3.96%)
Operating Costs	33.6	36.3	(7.44%)
EBITDA	10.1	9.2	9.78%
EBIT	3.7	(0.6)	716.67%
EBT	1.0	(5.1)	119.61%
Net Result	0.6	(3.5)	117.14%
EPS (€)	0.01	(0.08)	112.5%

1H 17 Financial results

• Revenues decrease as effect of the lower hydrocarbon production
• Strong reduction in Operating Costs
• Overall EBITDA growth due to the increase of Business Unit E&P Ebitda
• Positive value of EBIT
• Net Result of € 0.6 vs. € -3.5 M of 1H16

FINANCIAL RESULTS

Financial Result

FINANCIAL RESULTS

June 30, 2017 – Group Balance Sheet

	June 30, 2017	Dec 31, 2016	% Change
Group (M€)
Inventories	3.4	4.1	-17.07%
Receivables	12.5	19.0	-34.21%
Payables	(18.8)	(22.2)	-15.32%
Other working Credits/Debits	(2.3)	0.6	-483.33%
Non current Assets	449.4	448.2	0.27%
Taxes, Abandonment, Severance and Other provision	(186.2)	(182.4)	2.08%
Net invested capital	258.0	267.3	-3.48%
Net Financial Debt	43.1	53.0	-18.68%
of which long term	28.7	34.8	-17.53%
of which short term	14.4	18.2	-20.88%
Equity	214.9	214.3	0.28%
Total Sources	258.0	267.3	-3.48%

• Decrease in Working Capital thanks to the seasonal reduction of receivables
• Decrease in Net Financial Debt vs. 31 Dec 2016 thanks to the positive cash flows of all business units and the investment postponement.
• D/E ratio moves from 0.25 to 0.20

FINANCIAL RESULTS

• The Group confirmed the low level of NFP, whose amount will increase only with new relevant investments
• The Group has also secured financial resources for future E&P investments thanks to a € 64 M capex line

COMPANY PROFILE

Shareholding as at 30 June 2017 Share information

N. of share: 44,909,620 Share price as of 30/06/2017: € 2.6320 Share price as of 03/08/2017: € 2.6577 Mkt cap 30/06/2017 : € 118.2 million Italian Stock Exchange – segment MTA Own shares as of 30/06/2017: 1,336,677

Share price performance

Group structure Management

Davide Usberti	Chairman and 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 VP Gas Plus International B.V. (E&P Int. Activities)
Regulated Activity - Network
Leonardo Dabrassi	Chairman – GP Infrastrutture Srl
Achille Capelli	Network Manager

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 recategorisation 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 forward-looking 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.