ERG — Investor Presentation 2017

Nov 10, 2017

THIRD QUARTER 2017 RESULTS

10 NOVEMBER 2017

LUCA BETTONTE, CEO

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

3Q 2017 Highlights

• ✓ Key Figures
• ✓ TotalERG Disposal
• Results Review
• ✓ Business Environment
• ✓ 3Q 2017 Group EBITDA
• ✓ Results by Segments
• Key Financials
• ✓ Profit & Loss
• ✓ Investments
• ✓ Cash Flow Statement
• 2017 Guidance and Conclusions
• Appendix

HIGHLIGHTS: KEY FIGURES

Strong results and continuous deleverage

Highlights

5

TotalERG disposal process:

• ✓ On August 10, 2017 TotalERG finalized the sale of Restiani to Ambienta SGR
• ✓ On October 5, 2017 TotalERG disposed its subsidiary Totalgaz to Ugi
• ✓ On November 3, 2017 TotalERG approved the spin-off of its lubrificants business unit in favour of Total Italia: ERG agreed to sell to Total its 51% stake in this company
• ✓ On November 3, 2017 ERG and Total signed a binding agreement with API to sell 100% of TotalERG
• ✓ Total equity value for ERG 51% stake disposal: €273mn, including extraordinary dividends distributed by TotalERG for €71mn and a deferred component of €36mn

Strategic rationales:

• ✓ Disposal of TotalERG represents the definitive exit from the Oil industry
• ✓ Deal structure allows to maximize the value of our equity investment
• ✓ Further strengthening our financial structure, sustaining our growth path in the Renewables

RESULTS REVIEW

PAOLO MERLI, CFO

BUSINESS ENVIRONMENT

3Q 2017 GROUP EBITDA

Solid performance across all segments

ENERGY PORTFOLIO

9M 2016 vs 9M 2017 (TWh)

3Q 2016 vs 3Q 2017 (TWh)

An enlarged and diversified electricity portfolio

Results Review

9

NON-PROGRAMMABLE RESULTS

Improved wind conditions in Italy and abroad

Results Review

PROGRAMMABLE RESULTS

Weaker hydro production more than offset by better trading environment

INVESTMENTS

• (1) M&A CAPEX related to the closing of IMPAX acquisition (which took place on February 2, 2016, amounting to €292mn) and Brockaghboy acquisition (€14mn)
• (2) M&A CAPEX related to the closing of DIF acquisition in Germany (€39.5mn), which took place on May 2, 2017.

12

TOTALERG: KEY FIGURES(1)

Results Review

KEY FINANCIALS

PRO-FORMA RECURRING COST P&L

9M 2017	9M 2016	Euro millions	3Q 2017	3Q 2016
356	351	Recurring EBITDA	98	78
(188)	(193)	Amortization and depreciation	(62)	(65)
168	158	Recurring EBIT	36	13
(49)	(56)	Net financial income (expenses)	(15)	(18)
25	11	Net income (loss) from equity investments	10	9
144	113	Recurring Results before taxes	31	4
(31)	(27)	Income taxes	(5)	4
113	86	Recurring Results for the period	26	8
	(3)	Minority interests		1
113	83	Recurring Net profit	26	9
21%	24%	Tax Rate	16%	(100%)

Note: figures based on NO GAAP measures

Key Financials

3Q 2017 CASHFLOW STATEMENT

2017 GUIDANCE AND CONCLUSIONS

LUCA BETTONTE, CEO

2017 GUIDANCE

EBITDA:

• ✓Guidance increased to €455mn (previous at €430mn) due to:
• more favourable pricing scenario
• stronger contribution from Energy Management

CAPEX:

✓ New guidance at €100mn (previous at €140mn)

NFP:

• ✓Guidance improved at €1.3bn (previous at €1.45bn) due to:
• higher cash generation
• €50mn extraordinary dividends received from TotalERG

Due to recent transactions, Business Plan presentation to be postponed to the first months of 2018

(1) It includes €39.5mn referred to the closing of DIF acquisition in Germany, which took place on May 2, 2017.

APPENDIX

9M 2017 GROUP EBITDA

Generalized slowdown in production, offset by rising prices

Appendix

9M 2017 CASHFLOW STATEMENT

(1) Equity consideration for DIF acquisition (€39.5mn) in Germany

Appendix

9M AND 3Q 2017 RESULTS

9M 2017	9M 2016	Euro millions	3Q 2017	3Q 2016
765	757	Revenues	227	227
356	351	Recurring EBITDA	98	78
227	230	- Non-Programmable	57	43
		of which:
178	179	- Italy	46	34
49	51	- Abroad	11	10
136	129	- Programmable	42	36
		of which:
63	70	- Thermo	23	19
73	59	- Hydro	19	17
(6)	(8)	- Corporate	(0)	(2)

22

NON-PROGRAMMABLE: KEY FIGURES (1/2)

9M 2017	9M 2016		3Q 2017	3Q 2016
1,768	1,720	Installed capacity (end-period, MW)	1,768	1,720
		of which:
1,094	1,094	- Italy	1,094	1,094
252	252	- France	252	252
216	168	- Germany	216	168
82	82	- Poland	82	82
70	70	- Romania	70	70
54	54	- Bulgaria	54	54
2,532	2,631	Electricity Production (GWh)	723	583
		of which:
1,523	1,711	- Italy	444	368
337	378	- France	93	73
237	175	- Germany	61	43
166	138	- Poland	45	35
153	127	- Romania	42	38
116	102	- Bulgaria	38	26

Appendix

23

NON-PROGRAMMABLE: KEY FIGURES (2/2)

9M 2017	9M 2016	Euro millions	3Q 2017	3Q 2016
		Recurring EBITDA:
178	179	Italy	46	34
20	24	France	5	4
15	12	Germany	3	2
2	3	Poland	1	(0)
6	6	Romania	1	2
5	5	Bulgaria	1	2
227	230	Total Recurring EBITDA	57	43
(119)	(125)	Depreciation	(40)	(42)
108	105	Recurring EBIT	17	2

ERG POWER: KEY FIGURES

9M 2017	9M 2016	Euro millions	3Q 2017	3Q 2016
1,812	2,032	Electricity Production (GWh)	638	740
63	70	Recurring EBITDA	23	19
(23)	(22)	Depreciation	(7)	(7)
39	48	Recurring EBIT	16	11

Appendix

ERG HYDRO: KEY FIGURES

9M 2017	9M 2016	Euro millions	3Q 2017	3Q 2016
884	1,028	Electricity Production (GWh)	232	277
73	59	Recurring EBITDA	19	17
(44)	(44)	Depreciation	(15)	(15)
29	14	Recurring EBIT	4	3

INVESTMENTS

9M 2017	9M 2016	Euro millions	3Q 2017	3Q 2016
66	327	Non-Programmable (1)	7	8
9	8	Programmable	4	3
		of which:
5	6	- Thermo	2	2
4	2	- Hydro	2	1
1	1	Corporate	0	0
77	337	Total	11	12

(1) M&A CAPEX for non-programmable include:

• in 9M 2017: investments related to the closing of DIF acquisition in Germany (€39.5mn), which took place on May 2, 2017

• in 9M 2016: investments related to the closing of IMPAX acquisition (which took place on February 2, 2016, amounting to €293mn) and Brockaghboy acquisition (€13mn)

Appendix