DIGITAL PAN EUROPEANESG CONFERENCE

4 JUNE 2020

DISCLAIMER

This document contains certain forward-looking information that is subject to ^a number of factors that may influence the accuracy of the statements and the projections upon which the statements are based.

There can be non assurance that the projections or forecasts will ultimately prove to be accurate; accordingly, the Company makes no representation or warranty as to the accuracy of such information or the likelihood that the Company will perform as projected.

AGENDA

A successful industrial transformation
2018-2022 Business Plan and ESG Strategy
A focus on Sustainability
ERG Green Bond
ERG in a nutshell at 31.12.2019

A SUCCESSFUL INDUSTRIAL TRANSFORMATION

A LONG HISTORY…

A RAPID TRANSFORMATIONAND…

… A SUSTAINABLE EVOLUTION

Decarbonising ERG's electricity production

• ERG's business transformation: increasing production of electricity from renewable sources
• In this way, by the end of 2019 ERG had reduced the carbon intensity of its production by 90% since it entered the renewable energies sector and by 37% in the last 4 years

ERG's Sustainability numbers

Source: non financial information statements

The Carbon index drop in 2010 was due to the entrance into operation of the ERG Power plant which replaced the existing oil fed power plants.

(2) The Carbon index drop in 2014 was due to the sale of the ISAB Energy plant.

STEADY AND WELL BALANCEDPORTFOLIO

•70% of EBITDA from incentives
•EBITDA well balanced across different generation assets
•Geographical and seasonal diversification, allowing for complementarity of the different energy sources
•Earnings stability sustained by priority of dispachtment

(2) Wind EBITDA with incentive, Hydro EBITDA with incentive, 100% Solar EBITDA

BALANCED GROUP STRUCTURE SERVING INTERESTS OF ALL STAKEHOLDERS

Fully independent and experienced management team paired with a constructive involvement by majority shareholder

•San Quirico S.p.A. and Polcevera S.A. are controlled by ERG founding family
• The Garrone family holds key positions in ERG (Chairman and Executive Deputy Chairman) and defines ERG long-term strategy along with the Top Management through the Strategic Committee, whilst the Board of Directors is composed mainly (6 out of 12) of independent directors and it is fully committed to the interests of every stakeholder
•The top management operates within a strict financial discipline, while following ^astrong risk management policy

ESGRATINGS

2018-2022 BUSINESS PLAN AND ESG STRATEGY

ERG KEEPS GROWING ON TRACK WITH BP TARGETS STRONG EXECUTION FROM 2018 TO DATE

2018-2022 ESG TARGETS AND 2019 KPI

The 2018–2022 Business Plan is focused on a continuous development of plants producing energy from renewable sources and sets targets on three main priority areas:

Tackling climate change	Avoided CO ₂ : 15 m tons Carbon Index ⁽¹⁾ : down 14% to 2022	More than 6 million tons of avoided CO. [3.086kt in 2019] Carbon index -7,4% (0,14 kgCO,/kWh as at end 2019)
	Continous efforts on extracting value from our technology	64,04% CCGT plant CAR performance index 89% of indirect consumption supplied by "green" energy	12
	Enhancing our integrated generation portfolio	2.597 MW installed capacity in renewable energy plants 91,8% capital invested in renewable energy plants	13 CUMME $\mathbf{\Omega}$

	People nhancing	New leadership model Human Capital Coverage	Human Capital Coverage +3% compared to 2018 More than 46thousand training hours, 7,8 days/man, 84% of training on technical and managerial topics, 98% of our employees	4 QUALITY 5 _equuity
눕	Skills development	Power of Diversity project supported by Valore D	C

Integration of HSE certifications according to ONE Company Model	100% ISO 14001 and/or OHSAS 18001-ISO 450001 certified italian companies consistent with their activities
Technological development	Repowering & reblading projects for our Italian wind farms
	CDP Climate Change - Rating B
CDP reporting	ESG rating & indexes
Consolidating relations with communities	Sustainable Procurement and Suppliers Code of Conducts
	More than 10,500 students involved in our local activities

(1) Carbon index (gCO2/kWh) reveals the quantity of CO²included in every kWh produced

IMMEDIATE REACTION TOWARDS COVID-19

•No reduction in staff and no mandatory temporary leaves
• Collective bargaining on:
adoptionof appropriate safety measures for employeesin the production sites
reorganization of O&Mactivities, production plant & Control room
smart working extended to over 70% of corporate population, nearly 100% of office staff
crisis management scheme in event of mutual infection between employees into ^a shift
•Enchanced IT resources: 10X rise in remote meetings thanks to most advanced platforms
•Covid-19 health insurance for all the employees
• ERG allocated €2mn to support the healthcare systemwhere its production sites operate
• ERG's people donated2,300 hours of their work to the Civil Protection Department
• ERG's majority shareholder, allocated€1mn in favour of Genoa's front-line hospitals
• ERG supports ² projects of the Fondation des Hopitaux de France in favour of healthcare professionals and of rest homes for the elderly
Set a Daily WAR-cabinet meeting with top-mgmt to ensuring business continuity
•Electricity supply among the essential services in this period of emergency
•Put in place a set of measures to guarantee the best-in-class H&S standards for ERG people
•Some delays in construction investment program and authorization process
Tough trading environment, although most of the electricity production already hedged

ERG's

Local Communities

Operations

•

A STRONG ACTION TO FACE CLIMATE CHANGE

Strategy for Climate Change

•April 2019: ERG signed the Committment Letter
• May 2019: ERG submitted its targets for validation according to BP ratios
•Full disclosure on climate change approach
- Governance divided between the Board (strategic view) and Management (operations)

A SOLIDPIPELINE TO BOOST FUTURE GROWTH

REPOWERING& REBLADING IN PROGRESS

Repowering Project Portfolio in Italy

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Reblading Project Portfolio

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Possible 3-6 months delay due to Covid-19 lockdown

(1) Waiting for TSO confirmation

A FOCUS ON SUSTAINABILITY

ERG SUSTAINABILITY GOVERNANCE MODEL

The CEO is responsible for CSR.

Our Principles:

-Code of Ethics
Sustainability policy
-Human rights policy

Sustainability Committee(1)

•composed by:
Chairman
-Executive Deputy Chairman
CEO
-Top management
•duties:
defining the Group's sustainability guidelines
approving and evaluating sustainability objectives
approving the CSR initiatives and DNF contents

ERG'S ESG COMMITMENTS 2018-2022 (1/3)

In alignment with the 2018-2022 Business Plan and with the UN SDG's, ERG had set up ERG's Sustainability Commitments for the same period. Some of them are presented below:

UN SDGs		Areas of commitment - 2018-2022 period	Status at 31/12/2019
5 SENDER	8 DECENT WORK AND	GOVERNANCE, ETHICS E SUSTAINABILITY APPROACH
$\mathbf{\Theta}$	11	Pursue the internal and external dissemination of the Group's principles expressed in the Code	Code of Ethics and Sustainability Policy updated. New Human Rights Policy approved.
13 SUMMIE	16 PEAGE ASTICE Y,	of Ethics, the Sustainability Policy and the new Leadership Model	Training on sustainability issues continued at schools in the areas where the Group operates.
O.		Update the Enterprise Risk Management [ERM] risk catalogue with the analysis of the new 2018- 2022 Business Plan.	Group Risk Catalogue updated following 2018-2022 Business Plan risk assessment, mplemented the assessment of the risks and opportunities generated by Climate Change according to the
		Implement an ERM risk dashboard with specific	TCFD approach.
		Key Risk Indicators (KRI) for their ongoing monitoring.	ERM risk dashboard implemented to monitor any changes in the risk profiles set out in the Risk Catalogue.
		Keep the 231 Models of Italian companies updated.	Risk assessment on regulatory changes that occurred during
		Implement an Anti-corruption Policy within	the year.
		the Group, by making the control system fully operational and continuously monitoring and	An "Integrated Anti-Corruption Model" was adopted for all Italian and foreign companies in line with best practices.
		training employees.	Anti-corruption policy and key third-party due diligence" procedure approved.
		Implement the Environment - Safety certification for existing all Italian and foreign operating	Implementation of the project for integrating/updating existing certifications held by Italian companies.
		companies, in line with the "ONE Company" organisational structure.	Health and safety certification of ERG S.p.A, in accordance with ISO 45001.

ERG'S ESG COMMITMENTS 2018-2022 (2/3)

UN SDGs		Areas of commitment - 2018-2022 period	Status at 31/12/2019
GENERALY	8 DECENT WORK AND	BUSINESS STRATEGY
$\bullet$	葡	Consolidate the Group's business leadership in the production of electricity from renewable sources and increase the efficiency of all of its plants according to the development lines of the 2018- 2022 Business Plan.	The increase in installed power continues thanks to the start-up of new plants in France (52 MW), Germany (56 MW) and the acquisition of photovoltaic plants (51 MW).
		Support the Group's strategies through scouting activities by identifying and assessing innovative technologies, and developing partnerships with Universities and Research Institutes.	Avigliano wind farm Reblading project; the repowering project for the Italian wind farms is in progress.
17 PARTNERSHIP		SUPPLIERS
		Consolidate a supplier qualification and assessment system, with particular attention to	Approximately 46% of new suppliers qualified according to HSE parameters.
		Health, Safety, Environment and Sustainability.	Project for the qualification of suppliers according to sustainability parameters started.
UN SDGs		Areas of commitment - 2018-2022 period	Status at 31/12/2019

6 GLEANWATER	AFRICA ASCENA	EMISSIONS AND WASTE
Ģ	$\circ$	Group decarbonisation: - Avoid CO, emissions for a total of 15 Mtons	Buring 2019 3,086 kt of emissions were avoided (more than 6 million tonnes since 2018).
12 RESPONSIBLE	15 WEB	during the plan period; - reduce carbon index of electricity production by	Reduction in the Group's energy production carbonisation factor: -37% in the last four years, -74% since 2018
$\infty$		14% - cover energy requirements with energy from renewable sources.	89% of energy requirements covered with energy produced from renewable sources.
		Implement activities to protect biodiversity in the	Bird monitoring in our wind farms.
		areas where our plants are located.	Support to the activities of the WWF Oasis of Alviano and of the Marmore Falls natural park.

ERG'S ESG COMMITMENTS 2018-2022 (3/3)

UN SDGs	Areas of commitment - 2018-2022 period	Status at 31/12/2019
8 DECENT WORK AND	SAFETY
	Consolidate the safety culture inside and outside	The Evolving Safety Project.
	the company, pursuing the goal for zero accidents caused by safety deficits in plants and offices.	Following the injuries in 2019, corrective actions were implemented to prevent the recurrence of similar events.
		A near-miss reporting system was promoted to increase prevention levels.
GENDER EQUALITY QUALITY EDUCATION 5	PEOPLE
Ģ	Define and implement training and development	Human Capital Coverage +3% compared to 2018.
	plans to increase the value of Human Capital Coverage [+3% at the end of the plan period].	In 2019, around 46,000 hours of training provided at an average of approximately 8 days per employee.
		98% of company staff took part in training courses.
		Around 84% of training concerned technical and managerial topics.
	improve working environments and the employee.	"One Health" Project.
	welfare system.	Opening of a gym for Group employees.
16 PEACE, JUSTICE MSTITUTIONS	COMMUNICATION
	Make contact with and inform the Group's	ERG received B rating from CDP.
	stakeholders in a complete, transparent and timely manner.	ERG is listed on various sustainability indices.
7 AFFORMATIC ORD 8 DECENT WORK AND	COMMUNITY
଼ହ M	Contribute to the development of communities. through training activities at schools and	Activities were developed in local communities in keeping with the principles of the Sustainability Policy.
	universities and social responsibility initiatives at local level.	"A tutta acqual" and "Vai col vento!" were our leading projects for students living in the communities where our plants are located.

• A strict financial discipline on investments (organic and M&A) through:
Strategic Committee (EVP, VP, CEO, CGM&CFO, 2 Board Members(1)
Investment Committee (CEO, CGM&CFO, Management Team)
• Strong risk management policy:
Best practice risk policy to ensure the hedging policy of the generation portfolio
• Full Alignment of interests between Top Management and shareholders through:
Launch in 2018 of a 3 year LTI compensation scheme fully based on shares

(2) Committee composed of 3 independent Board Members, of which 2 Independent referring to the Corporate Governance Code set out by the Italian Stock Exchange, and 1 Independent referring only to the Consolidated Finance Act.

)

(3) Committee composed of 2 independent Board Members referring to the Corporate Governance Code set out by the Italian Stock Exchange, and 1 non-executive Board Member

⁽¹⁾ 1 non-executive and 1 independent referring to the Corporate Governance Code set out by the Italian Stock Exchange

REMUNERATION POLICY

( ) h i l S I P M B O t- t t o r e r m n c e n v e a n s S ho ive la In P t- te t r rm ce n ns Bo Ca nu s p		( ) i l L I P L T I P -t t o n g e r m n c e n v e a n s la Lo In ive P -te t ng rm ce n ns Ca Bo nu s p / f f la On O C us e
h l O i M B V e c e s h Ca s		h l i L T I V e c e s fo ha S Pe r rm an ce re
M B O P t a r a m e e r s ( 1) Gr E B T ou p d du l b iv i O j ive O In E B I T D A, N F P, P E X, t tc a ec s e. g. e	i h W t e g % 3 0 0 % 7	L T I P t a r a m e e r s / la d ( f f la Cu E B I T D A 2 0 1 8- 2 0 On O C te m u us e	i h W t e g ) 1 0 0 %

(1) IAS pre-tax profit.

ENTERPRISE RISK MANAGEMENT

Enterprise Risk Management (ERM) is responsible for:

•identifying and assessing the Group's main risks and defining strategies to mitigate them
•providing management dynamic risk mapping evolution
•providing Management with key information to make risk-informed decisions
•spreading over risk-aware culture across the Organization

ESG risks

• Included in the ERM analysis with particular focus on Climate Change (availability of resources and black swan), health & safety, retention of employees and key figures.

SUSTAINABLE PROCUREMENT

• In 2019 ERG launched a "sustainable procurement project" focused on the introduction of new pillars to qualify and monitor the main vendors on:
environmental performance
human rights of the supplier and of his supply chai n
field audit.
•The suppliers assessment will start in June 2020

NEW LEADERSHIP MODEL

The Business Plan shows the direction, Skills help people find the way and Values give us strength, unity and stability

A STRONG FOCUS ON HUMAN CAPITAL DEVELOPMENT

ERG PEOPLE & TRAINING

"We are not looking for Talented People but rather for the Talent hidden in each Person"

ERG Training in a nutshell

i i i K I P T s n o r r a n n g u
Ye a r	f in in Ho Tr u rs o a g i d d p ro v e	f in in Da Tr y s o a g i d d Pe p ro v e p e r rs o n	he ic ip in Pa t t t r a n s c ou rs e s
2 0 1 7	3 7, 9 5 0	6. 6	% 9 7
2 0 1 8	3 4, 3 5 6	5. 9	9 2 %
2 0 1 9	4 6, 7 5 8	7. 8	9 8 %

Every year all of our people are invited to design their own training path.A managerial attitude is required from all the employees.

DATA BREAKDOWN ON PERSONNEL

A DIVERSIFIED GROUP WITH EQUAL OPPORTUNITIES

• Inclusionis a competence of ERG's Leadership Model
• Partnership with ValoreD, the greatest Italian associationpromoting gender balance and an inclusive culture in organisations and across the country:
first assessment of HR processes in D&I effectiveness
survey to verify ERG's and Employees' approach to Inclusion
• Action plan to raise awareness about:
inclusive communication
-Inclusive leadership
women's empowerment

(1)Percentage ratio between the average fixed remuneration for women for each position they belong to and the average fixed remuneration for men for the same position

WELFARE PROJECTS FOR EMPLOYEES

•Medical check up for all the employees
•Specific checks for older employees
•Additional leaves for medical check-ups
• Gym at Genoa office open to all employees with trainer available on site
Running and cycling team and other sport activities
•Corporate volunteering
•Family Day

•

•Plant's open Day
•Summer camps for employee's children

•

•Cooperation with schools and universities
"Holiday donation"

REBLADING: A TECHNOLOGICAL INNOVATION PROJECT

Pre-Repowering

Post-Repowering

Reblading in a nutshell Avigliano wind farm reblading: the project in a nutshell

• ²⁰ turbines certified with new blades and controllers;
• ⁶⁰blades replaced;
• ⁶⁰blade bearings replaced;
•full revision of all mechanicalcomponents connectedto the blades;
• 5,800 hours/man for blade and controller assembly;
• ⁴⁰⁰ hours/man for pre-assembly at the blade production factory;
• 0accidents/injuries.

ENGAGING LOCAL COMMUNITIES

ENVIRONMENTAL AND SAFETY CERTIFICATIONS

• Environmental certificationcovering more than 70% of the installed capacity and about 60% of employees
• Health & Safety certificationcovering more than 90% of employees

Source: ERG 2019 non-financial information reporting

REDUCTION OF ENVIRONMENTAL IMPACT OF OPERATIONS

Green Energy for our indirect Consumption(1)

As of 2016, ERG is committed to supply its offices and plants with certified renewable energy

Wood in Corbara: from waste to resource

• Until 2019, the significant accumulation of virgin wood (more than 2,600tonn/year) dragged by Tiber river into Lake Corbara was considered by law as waste.
In 2019 ERG received the authorization by the Umbria Region to manage such woody biomass as reusable material for activities such as energy recovery, wood industry and production of soil improvers.

(1) Figures are not on a like-for-like basis: they include all plants in exercise at each year-end

ERG GREEN BOND

GROUP DEBT STRUCTURE

Corporate LoanProject Finance Bond

•Debt structure mainly composed of medium term loans with 93% fixed rate portion
• ERG's operating assets grant a steady flow of cash upstream to ERG S.p.A.:
Hydro & Natural Gas assets fully unlevered without any external financing constraints
Wind & Solar SPVs financed by long term loans with maturities consistent with incentive life and able to upstream a relevant amount of cash

New financial strategy completed: move from Project Financing to corporate/DCM financing

(1) ERG S.p.A. owns all the operating assets through ERG Power Generation S.p.A., a 100% owned operating subsidiary, free of debt and in cash pooling with ERG S.p.A.

ERG GREEN BOND 2019: ALLOCATIONSUMMARY

RATING AGENCY VIEW

Long-term Issuer Default Rating (IDR): BBB-

Senior unsecured Rating: BBB-

Outlook on the IDR: Stable

Last update: Affirmed 14 May ²⁰²⁰

Key Rating Drivers:

•Manageable Impact from the Pandemic•Strategy Confirmed•Preserving Incentivised Business Key•Broadly Flat EBITDA•Flexible Free Cash Flow•Large Secured Greenfield Pipeline•Increased Repowering•Additional M&A•Additional Capacity Incentivizes •Track Record of Stability•Solid Liquidity•Progress in Centralising Funding Structure Key Considerations:
•"Fitch Ratings has affirmed Italian renewable generation company ERG S.p.A.'s Long-Term Issuer Default Rating (IDR) and senior unsecured rating at 'BBB-'. The Outlook on the IDR is Stable."
•"ERG's 'BBB-' IDR affirmation reflects robust business profile, and a diversified and clean asset base,with quasi-regulated activities averaging 70%-75% of consolidated EBITDA"
•"The business is proving to be resilient in the current tough market environment, due to hedging, predominantly incentivised revenues and the absence of exposure to supply."
•"The ratings also take into account ERG's growth ambitions in the context of a clearly stated financial policy of up to 3.0x net debt/EBITDA"
•"Our forecasts lead to an average funds from operations (FFO) adjusted net leverage of 3.5x over 2020-2024, compared with a negative sensitivity of 3.8x, which we revised upward from 3.5x, due mainly to ERG's business resilience and track record."

ERG IN A NUTSHELL AS AT 31.12.2019

FINANCIAL AND OPERATING PERFORMANCE AS AT 31.12.2019

ERG DISTRIBUTION OF ADDED VALUE

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