Ascopiave

Investor Presentation • Mar 14, 2018

FY 2017CONSOLIDATED RESULTS

Conference Call

Pieve di Soligo, 15th March 2018

Financial highlights

• →Ascopiave Group structure as of 31st December 2017
• →FY 2017 consolidated income statement
• →Consolidated balance sheet as of 31st December 2017

Operating data

Revenues and EBITDA

Gross margin on gas and electricity sales and other net operating costs

Personnel

Capex

Net financial position and cash flow

Dividend proposal

Disclaimer

FY 2017

consolidated results

CONFERENCE CALL

FY 2017 consolidated income statement

d f Eu ) us an o ro	M 1 2 2 0 1 7	M 1 2 2 0 1 6	C hg	C hg %
Re ve nu es	5 3 2. 7 9 2	4 9 7. 6 8 9	3 5. 1 0 3	7, 1 % +
( Co f ra ia ls d c b les ) t o te s w ma r an on su ma	( 2 0. ) 7 5 7 7	( 2 4 9. 9 1 6 )	( 2 0. 6 6 2 )	8, 3 % +
( Co f s ice ) t o s erv s	( ) 1 1 3. 4 5 7	( ) 1 0 7. 5 0 3	( ) 5. 9 5 4	5, 5 % +
( Co f p l ) t o s ers on ne	( 2 4. 8 ) 5 5	( 2 4. 2 3 3 )	( 6 2 2 )	2, 6 % +
( O he ing ) t t ts r o p era co s	( 4 0. 2 2 4 )	( 2 1. 3 ) 7 7	( 1 8. 8 4 6 )	8 8, 2 % +
O he ing inc t t r o p era om e	3 1 7	9 6 5	1 3 6	2 2, % 7 +
E B I T D A	8 4. 4 0 9	5. 5 5 9 2	( ) 1 0. 8 4 6	-1 1, 4 %
( De ia ion d a iza ion ) t t t p rec s a n mo r s	( 2 2. 8 ) 5 5	( 2 0. 2 2 ) 7	( 2. 3 8 ) 5	1 1, % 7 +
( Pr is ion ) ov s	( 1. 8 8 5 )	( 2. 8 9 1 )	1. 0 0 6	3 4, 8 % -
E B I T	5 9. 9 3 9	2. 1 3 7 7	( 1 2. 1 9 ) 7	-1 6, 9 %
/ ( ) F ina ia l inc nc om e ex p en se s	( ) 4 6 8	( ) 5 4 4	7 6	1 3, 9 % -
( *) Ev lua ion f c ies i h n ho d t t t a ts t a o om p an w e ss e me	7. 3 9 8	7. 7 5 0	( ) 3 5 2	4, 5 % -
E B T	6 6. 8 6 9	9. 3 4 3 7	( 1 2. 4 3 ) 7	-1 5, % 7
( ) Inc tax om e es	( ) 1 7. 6 1 7	( ) 2 2. 4 0 1	4. 7 8 4	2 1, 4 % -
Ne inc t om e	4 9. 2 5 2	5 6. 9 4 2	( 7. 6 9 0 )	-1 3, 5 %
( Ne inc f m ino i ies ) t t om e o r	( ) 2. 1 1 7	( ) 3. 3 0 7	1. 1 9 0	3 6, 0 % -
Ne inc f he Gr t t om e o ou p	4 7. 1 3 5	5 3. 6 3 5	( 6. 5 0 0 )	-1 2, 1 %

(*) Result of the companies consolidated with net equity consolidation method (data are considered pro-rata): sale companies, Euro 5,9 mln (Euro 5,4 mln in2016); distribution companies, Euro 1,0 mln (Euro 1,2 mln in2016); Sinergie Italiane, Euro 0,6 mln (Euro 1,2 mln in 2016).

Consolidated balance sheet as of 31st December 2017

T ho d f Eu ) us an o ro	3 1 / 1 2 / 2 0 1 7	3 1 / 1 2 / 2 0 1 6	C h g	C h % g
T i b l t ( *) a n g e a s s e s	3 2. 3 3 4	3 2. 3 6 4	( ) 3 1	-0 1 % ,
N i b l t t ( *) o n a n g e a s s e s	4 2 6 9 2 7.	3 9 6 6 4 7.	3 0. 0 2 9	6 % 7, +
I i i t t t ( **) n v e s m e n s n a s s o c a e s	6 8. 8 7 8	6 8. 7 3 8	1 4 0	0, 2 % +
O f h i d t t e r x e a s s e s	2 4. 4 9 4	2 3. 8 0 8	6 8 6	2, 9 % +
F i d t e a s s e s x	5 5 3. 3 9 7	5 2 2. 5 4 7	3 0. 8 2 3	5, 9 % +
O i t t t p e r a n g c r r e n a s s e s u	2 2 2. 9 7 7	2 0 1. 9 0 8	2 1. 0 6 9	1 0, 4 % +
( O i l i b i l i i ) t t t p e r a n g c u r r e n a e s	( ) 1 6. 9 5 5 7	( ) 1 3 8. 0 0 3	( ) 1 8. 9 4 5	1 3, % 5 +
O ( i l i b i l i i ) t t t p e r a n g n o n c r r e n a e s u	( ) 4 9. 4 1 1	( ) 4 8. 1 5 1	( ) 1. 2 6 0	2, 6 % +
N k i i l t t e w o r n g c a p a	1 6. 9 6 9	5. 5 1 7 4	1. 2 1 6	7, 7 % +
T l i l l d t t o a c a p a e m p o y e	5 7 0. 3 6 7	5 3 8. 3 2 8	3 2. 0 3 9	6, 0 % +
G h h l d i t r o p s a r e o e r s e q u u y	4 4 5. 5 1 1	4 3 8. 0 5 5	4 5 6 7.	1, % 7 +
M i i i t n o r e s	4. 9 8 9	5 6. 1 4	( 5 ) 1. 1 6	-1 8, 9 %
N f i i l i i t t e n a n c a p o s o n	1 1 9. 8 6 7	9 4. 1 1 9	2 5. 7 4 8	2 7, 4 % +
T l t o a s o u r c e s	5 0. 3 6 7 7	5 3 8. 3 2 8	3 2. 0 3 9	6, 0 % +

(*) Applying IFRIC ¹² involves categorising the infrastructures under concession from tangible to intangible assets; (**) Value of the associated companiesconsolidated with net equity consolidation method: sale companies, Euro 48,0 mln (Euro 48,0 mln as of 31st December 2016); distribution companies, Euro 20,8mln (Euro 20,7 mln as of 31st December 2016).

FY 2017 CONFERENCE CALLconsolidated results Pieve di Soligo, 15th March 2018

Financial highlights

Operating data

• →Volumes of gas distributed
• →Volumes of gas sold
• →Volumes of electricity sold

Revenues and EBITDA

Gross margin on gas and electricity sales and other operating costs

Personnel

Capex

Net financial position and cash flow

Dividend proposal

Disclaimer

FY 2017 CONFERENCE CALLconsolidated results Pieve di Soligo, 15th March 2018

7

(*) Data are considered pro-rata.

(*) Data are considered pro-rata.

Financial highlights

Operating data

Revenues and EBITDA

• →Revenues bridge
• →EBITDA bridge
• →EBITDA breakdown

Gross margin on gas and electricity sales and other net operating costs

Personnel

Capex

Net financial position and cash flow

Dividend proposal

Disclaimer

FY 2017 CONFERENCE CALLconsolidated results Pieve di Soligo, 15th March 2018

11

(*) Sinergie Italiane excluded. Data are considered pro-rata.

EBITDA breakdownCompanies consolidated with full consolidation method(Thousand of Euro)

T ho d f Eu ) us an o ro	1 2 M 2 0 1 7	1 2 M 2 0 1 6	Va r	Va % r
E B I T D A	8 4. 4 0 9	9 5. 2 5 5	( 1 0. 8 4 6 )	-1 1, 4 %
Sa E B I T D A le -	4 1. 0 1 5	6 0. 2 3 5	( 1 9. 1 8 4 )	-3 1, 8 %
E B I T D A D is i bu tr t -	ion 4 7. 7 5 5	3 0 2 0 5.	1 2. 3 7 5	3 6, 4 % +
E B I T D A As iav co p -	( ) 4. 3 9 6 ( *) e	-	( ) 4. 3 9 6	n.a
E B I T	5 9. 9 3 9	7 2. 1 3 7	( ) 1 2. 1 9 7	-1 6, 9 %
E B I T Sa le -	3 5. 9 1 3	5 4. 9 4 0	( ) 1 9. 0 2 8	-3 4, 6 %
E B I T D is i bu ion tr t -	3 0. 2 3 2	1 7. 1 9 6	1 3. 0 3 5	7 5, 8 % +
E B I T As iav co p e -	( ) ( *) 6. 2 0 5	-	( ) 6. 2 0 5	n.a

(*) In 2016 Ascopiave contributes to the formation of the results of the distribution SBU.

EBITDA breakdownCompanies consolidated with net equity consolidation method (*)(Thousand of Euro)

FY 2017 CONFERENCE CALLconsolidated results Pieve di Soligo, 15th March 2018

(*) Sinergie Italiane excluded. Data are considered pro-rata.

Financial highlightsOperating dataRevenues and EBITDA

Gross margin on gas and electricity sales and other net operating costs

• →Gross margin on gas sales
• →Gross margin on trading gas sales
• →Gross margin on electricity sales
• →Gas distribution tariff revenues
• →Other net operating costs

Personnel

Capex

Net fincancial position and cash flow

Dividend proposal

Disclaimer

FY 2017 CONFERENCE CALLconsolidated results Pieve di Soligo, 15th March 2018

T ho d f Eu ) ( *) us an o ro	1 2 M 2 0 1 7	1 2 M 2 0 1 6	C hg	C hg %
Re fro les ve nu es m g as sa	3 3 8. 6 3 4	3 4 3. 1 2 7	( ) 4. 4 9 3	-1 3 % ,
( Ga ha ) ts s p urc se co s	( 1 9 1. 4 9 ) 7	( 1 8 2. 0 9 ) 7	( 9. 4 1 8 )	2 % 5, +
( Ga d is i bu ion ) tr t ts s co s	( 8 6. 3 8 9 )	( 8 2. 3 1 ) 5	( 3. 8 8 ) 5	4, % 7 +
Gr in les ( A ) os s ma rg on g as s a
Co l i da d i h fu l l te t mp an y co ns o w	6 0. 7 4 8	7 8. 5 1 7	( 1 7. 7 6 9 )	-2 2, 6 %
l i da ion ho d t t co ns o m e

The decrease of gross margin on gas sales of the companies consolidated with full consolidation method, equal to - Euro 17,8 mln, is due to:

• 1) increase of the gas purchase cost due to the accounting in the ²⁰¹⁶ of the compensation entitled to the Group for the adhesion to the mechanism for the renegotiation of the longterm gas procurement agreements in the years 2014-2016 according to the ARERA Res. 447/2013/R/gas (+ Euro 11,1 mln);
• 2)lower unit profit margins, in spite of higher volumes of gas sold.

( T ho d f Eu ) ( *) us an o ro	1 2 M 2 0 1 7	1 2 M 2 0 1 6	C hg	C hg %
Gr in les ( B ) os s ma rg on g as sa Co l i da d i h n i te t t e ty mp an y co ns o w e q u l i da ion ho d t t ( **) co ns o m e	1 4. 5 4 8	1 4. 3 0 0	2 4 8	1, 7 % +
Gr in les ( A+ B ) os s ma rg on g as s a	5. 7 2 9 6	9 2. 8 1 7	( 5 ) 1 7. 2 1	-1 8, 9 %

Gross margin on trading gas sales

ho d f Eu ) ( *) us an o ro	M 1 2 2 0 1 7	M 1 2 2 0 1 6	C hg	C hg %
Re fro d ing les tra ve nu es m g as sa	1. 9 4 1	-	1. 9 4 1	n.a
( ) Tr d ing ha ts a g as p urc se co s	( ) 1. 8 9 7	-	( ) 1. 8 9 7	n.a
( Tr d ing / c i ) tra t ty ts a g as ns p or ap ac co s	1 9	-	1 9	n.a
Gr in d in les ( A ) tra os s ma rg on g g as s a Co l i da d i h fu l l te t mp an y co ns o w l i da ion ho d t t co ns o m e	6 3	-	6 3	n.a
d f Eu ) ( *) us an o ro	1 2 M 2 0 1 7	1 2 M 2 0 1 6	C hg	C hg %
ho in d in les ( B ) Gr tra os s ma rg on g g as s a Co l i da d i h n i te t t e ty mp an co ns o e q y w u l i da ion ho d t t ( **) co ns o m e	-	-	-	n.a

FY 2017 CONFERENCE CALLconsolidated results Pieve di Soligo, 15th March 2018

1 2 M 2 0 1 7	1 2 M 2 0 1 6	C hg	C hg %
9 3. 7 4 0	9 0. 5 9 0	3. 1 5 0	3, 5 % +
( ) 5 3. 0 4 4	( ) 4 8. 7 7 9	( ) 4. 2 6 5	8, 7 % +
( ) 3 4. 5 2 1	( ) 3 6. 6 3 3	2. 1 1 1	-5 8 % ,
6. 1 7 5	5. 1 7 8	9 9 7	1 9, 2 % +

The increase of gross margin on electricity sales of the companies consolidated with full consolidation method, equal to ⁺ Euro 1,0 mln, is due to higher unit profit margins and highervolumes of electricity sold.

( T ho d f Eu ) ( *) us an o ro	1 2 M 2 0 1 7	1 2 M 2 0 1 6	C hg	C hg %
Gr in lec ic i les ( B ) tr ty os s ma rg on e sa Co l i da d i h n i te t t e ty mp an y co ns o w e q u l i da ion ho d t t ( **) co ns o m e	1. 3 3 4	1. 1 2 9	2 0 5	1 8, 2 % +
Gr in lec ic i les ( A+ B ) tr ty os s ma rg on e s a	5 7. 0 9	6. 3 0 7	1. 2 0 2	1 9, 1 % +

FY 2017 CONFERENCE CALLconsolidated results Pieve di Soligo, 15th March 2018

		C hg	C hg %
6 9. 8 3 6	6 1. 4 8 8	8. 3 4 8	1 3, 6 % +
6 9. 8 3 6	6 1. 4 8 8	8. 3 4 8	1 3, 6 % +

The increase of gas distribution tariff revenues of the companies consolidated with full consolidation method (+ Euro 8,3 mln) is due to:

• 1) change of the consolidation area (AP Reti Gas Vicenza, 2ndQ+3rdQ+4thQ 2017): ⁺ Euro8,7 mln;
• 2) reduction of gas distribution tariff revenues due to the accounting in the ²⁰¹⁶ of theequalization amount accounted for the positive difference between the definitive and provisional tariffs related to year 2015 (- Euro 1,2 mln).
• 3)change of gas distribution tariff revenues: ⁺ Euro 0,8 mln.

( T ho d f Eu ) ( *) us an o ro	1 2 M 2 0 1 7	1 2 M 2 0 1 6	C hg	C hg %
( ) Ga d is i bu io i f f r B tr t ta s n r ev en ue s Co l i da d i h n i te t t e ty mp an co ns o e q y w u l i da ion ho d ( **) t t co ns o m e	5. 7 1 0	5. 8 0 3	( ) 9 3	-1 6 % ,
Ga d is i bu io i f f r ( A+ B ) tr t ta s n r ev en ue s	5. 5 4 6 7	6 2 9 0 7.	8. 2 5 5	1 2, 3 % +

1 2 M 2 0 1 7	1 2 M 2 0 1 6	C hg	C hg %
5 8. 9 1 6	3 0. 3 0 0	2 8. 6 1 5	9 4, 4 % +
( ) 8 6. 4 7 3	( ) 5 5. 9 9 5	( ) 3 0. 4 7 8	5 4, 4 % +
( ) 2 4. 8 5 5	( ) 2 4. 2 3 3	( ) 6 2 2	2, 6 % +
( 5 2. 4 1 3 )	( 4 9. 9 2 8 )	( 2. 4 8 5 )	5, 0 % +

Net operating costs referred to the change of the consolidation area: - Euro 6,6 mln

Decrease of other net operating costs of 2016 consolidationarea: ⁺ Euro 4,1 mln

of which:

• increase of cost of personnel: Euro 0,2 mln;
• increase of margin on energy efficiency tasks management: + Euro 3,6 mln;
• decrease of contingent assets: Euro 0,6 mln;
• increase of CCSE contributions for security incentives: + Euro 0,6 mln;
• increase of advertising costs: - Euro 1,1 mln;
• increase of capitalizations: + Euro 1,5 mln;
• other variations: + Euro 0,3 mln.

f ) d Eu an o ro	1 2 M 2 0 1 7	1 2 M 2 0 1 6	C hg	C hg %
he in ( A ) O t t o t ts r n e p er a g co s Co l i da d i h fu l l te t mp an co ns o y w l i da ion ho d t t co ns o m e	( 5 2. 4 1 3 )	( 4 9. 9 2 8 )	( 2. 4 8 5 )	5, 0 % +
O he in ( B ) t t o t ts r n e p er a g co s Co l i da d i h n i te t t e ty mp an y co ns o w e q u l i da ion ho d ( *) t t co ns o m e	( ) 1 1. 0 8 4	( ) 8. 2 2 9	( ) 2. 8 5 5	3 4, 7 % +
he in ( A+ B ) O t t o t ts r n e p er a g co s	( ) 6 3. 4 9 6	( 5 5 ) 8. 1 7	( 5. ) 3 3 9	9, 2 % +

FY 2017

consolidated results

CONFERENCE CALL

(*) Sinergie Italiane excluded. Data are considered pro-rata.

Financial highlights

Operating data

Revenues and EBITDA

Gross margin on gas and electricity sales and other net operating costs

Personnel

• →Number of employees
• →Consolidated cost of personnel

Capex

Net financial position and cash flow

Dividend proposal

Disclaimer

FY 2017 CONFERENCE CALLconsolidated results Pieve di Soligo, 15th March 2018

Number of employees

2017 cost of personnel of the companies consolidated with net equity consolidation method(Sinergie Italiane excluded): Euro 3,1 mln (-3,1%).

CONFERENCE CALL

Financial highlightsOperating dataRevenues and EBITDAGross margin on gas and electricity sales and other net operating costsPersonnel

Capex

Net financial position and cash flow

Dividend proposal

Disclaimer

FY 2017 CONFERENCE CALLconsolidated results Pieve di Soligo, 15th March 2018

2017 investments of the companies consolidated with net equity consolidation method(Sinergie Italiane excluded): Euro 1,6 mln (+49,0%).

(*) Excluding network extension in new urbanized areas that according to IAS are considerated as operating costs and not investments;.(**) Investments intangible assets: Euro 1,1 mln; investments in intangible assets: Euro 22,5 mln (excluded realizations of tangible and intangible assets and investments inassociated); (***) AP Reti Gas Vicenza: 2ndQ+3rdQ+4thQ 2017.

Financial highlightsOperating dataRevenues and EBITDAGross margin on gas and electricity sales and other net operating costsPersonnelCapex

Net financial position and cash flow

Dividend proposal

Disclaimer

Net financial position and cash flow (1)

30

Net financial position and cash flow (2)

( T ho d f Eu ) ( *) us an o ro	3 1 / 1 2 / 2 0 1 7	3 1 / 1 2 / 2 0 1 6	Va r	Va % r
f ( ) Lo ina ia l bo ing 1 2 hs te t ng rm nc rro w s mo n > Cu i ion f lon f ina ia l bo ing t p t te rre n os o g rm nc rro w s S ho f ina ia l bo ing ( hs ) t te 1 2 t r rm nc rro w s mo n <	5 4. 3 6 0 1 0. 1 8 1 5 4. 5 6 8	3 4. 5 4 1 9. 2 8 7 4 6. 2 8 8	1 9. 8 1 9 8 9 4 8. 2 8 0	5 7, 4 % + 9, 6 % + 1 7, 9 % +
f in ia To l l de b ta t an c	1 1 9. 1 0 9	9 0. 1 1 6	2 8. 9 9 3	3 2, 2 % +
F ixe d bo ing te ra rro w s F loa ing bo ing t te ra rro w s	3 0. 0 0 0 8 9. 1 0 9	- 9 0. 1 1 6	3 0. 0 0 0 ( 1. 0 0 ) 7	n.a -1 1 % ,

2017 average cost of debt: 0,38% (vs 2016 rate: 0,57%)

32

Financial highlightsOperating dataRevenues and EBITDAGross margin on gas and electricity sales and other net operating costsPersonnelCapexNet financial position and cash flow

Dividend proposal

Disclaimer

h d h M 2 0 1 t t t 7 t e a c m e n a e a : y d d h M 8 2 0 1 8 t t e c o r a e a : y	8
d h M 9 2 0 1 8 t t t a y m e n a e : a y
	2 0 1 7	2 0 1 6	2 0 1 5	2 0 1 4	2 0 1 3	2 0 1 2
	( Pro al) pos
D iv i de ds i d T ho d o f Eu (*) n a us an ro	4 0. 0 1 6	4 0. 0 1 6	3 3. 3 4 7	3 3. 3 3 2	2 6. 6 6 6	2 4. 4 8
( ) p Gr Ne Inc ( T ho d o f Eu ) t ou p om e us an ro	4 1 3 7. 5	3. 6 3 5 5	4 3. 0 1 4	3 8 3 5. 5	3 8. 6 8 7	5 2 8 6 7. 5
Pa io t r t y ou a	8 5 %	7 5 %	7 8 %	9 4 %	6 9 %	8 8 %
D iv i de ds ha ( Eu ) n p er s re ro	0, 1 8 0	0, 1 8 0	0, 1 5 0	0, 1 5 0	0, 1 2 0	0, 1 1 0

(*) Dividends to be paid estimated on the base of the outstanding shares at the end of the financial year; (**) Dividend yield ⁼ dividends per share / average priceper share in the year.

Financial highlightsOperating dataRevenues and EBITDAGross margin on gas and electricity activities and other net operating costsPersonnelCapexNet Financial Position and cash flowDividend proposal

Disclaimer

• • This presentation has been prepared by Ascopiave S.p.A. for information purposes only and for use in presentations of the Group's results and strategies.
• • For further details on the Ascopiave Group, reference should be made to publicly available information, including the Quarterly Reports and the Annual reports.
• • Statements contained in this presentation, particularly the ones regarding any Ascopiave Group possible or assumed future performance, are or may be forwardlooking statements and in this respect they involve some risks and uncertainties. Anumber of important factors could cause actual results to differ materially from thosecontained in any forward looking statement. Such factors include, but are not limitedto: changes in global economic business, changes in the price of certain commoditiesincluding electricity and gas, the competitive market and regulatory factors. Moreover, forward looking statements are currently only at the date they are made.
• • Any reference to past performance of the Ascopiave Group shall not be taken as an indication of the future performance.
• • This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
• -By attending the presentation you agree to be bound by the foregoing terms.