ERG — Investor Presentation 2017

Aug 10, 2017

SECOND QUARTER 2017 RESULTS

10 AUGUST 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

2Q 2017 Highlights

• ✓ Key Figures
• Results Review
• ✓ Business Environment
• ✓ 1H 2017 Group EBITDA
• ✓ Results by Segments
• Key Financials
• ✓ Profit & Loss
• ✓ Investments
• ✓ Cash Flow Statement
• 2017 Guidance and Conclusions
• Appendix

HIGHLIGHTS: KEY FIGURES

Good results despite tough hydro and wind conditions

Highlights

RESULTS REVIEW

PAOLO MERLI, CFO

BUSINESS ENVIRONMENT

Italy: Electricity Production vs Demand (TWh)

1H 2017 GROUP EBITDA

Generalized slowdown in production, partly offset by rising prices

ENERGY PORTFOLIO

1H 2016 vs 1H 2017 (TWh)

2Q 2016 vs 2Q 2017 (TWh)

NON-PROGRAMMABLE RESULTS

Tough wind conditions, only partially offset by consolidation of new assets

PROGRAMMABLE RESULTS

Dry season, end of Essential Unit Regime, offset by higher electricity and white certificates prices

Results Review

• (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.

TOTALERG: KEY FIGURES(1)

Results Review

KEY FINANCIALS

PRO-FORMA RECURRING P&L

1H 2017	1H 2016	Euro millions	2Q 2017	2Q 2016
258	273	Recurring EBITDA	107	111
(126)	(129)	Amortization and depreciation	(64)	(65)
133	145	Recurring EBIT	43	46
(34)	(38)	Net financial income (expenses)	(18)	(19)
15	3	Net income (loss) from equity investments	9	0
113	109	Recurring Results before taxes	34	27
(26)	(31)	Income taxes	(7)	(10)
87	78	Recurring Results for the period	27	17
0	(4)	Minority interests	0	(0)
87	74	Recurring Net profit	27	17
23%	28%	Tax Rate	21%	37%

Note: figures based on NO GAAP measures

1H 2017 CASHFLOW STATEMENT

Net deleverage of €157mn

Leverage

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

2017 GUIDANCE AND CONCLUSIONS

LUCA BETTONTE, CEO

2017 GUIDANCE

EBITDA:

✓Guidance confirmed at €430mn

CAPEX:

✓Guidance confirmed at €140mn

NFP:

✓Guidance confirmed at €1.45bn

Business Plan to be presented in December 2017

APPENDIX

2Q 2017 GROUP EBITDA

Generalized slowdown in production, partly offset by rising prices

2Q 2017 CASHFLOW STATEMENT

Leverage

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

Appendix

1H AND 2Q 2017 RESULTS

	1H 2017	1H 2016	Euro millions	2Q 2017	2Q 2016
	538	530	Revenues	236	235
	258	274	Recurring EBITDA	107	111
	170	187	- Non-Programmable	66	70
			of which:
	132	145	- Italy	51	58
	38	41	- Abroad	15	12
	94	93	- Programmable	44	44	=
			of which:
	40	52	- Thermo	25	24
	54	41	- Hydro	19	20
=	(6)	(6)	- Corporate	(4)	(4)	=

21

NON-PROGRAMMABLE: KEY FIGURES (1/2)

1H 2017	1H 2016		2Q 2017	2Q 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
1,809	2,048	Electricity Production (GWh)	725	822
		of which:
1,078	1,343	- Italy	421	569
244	306	- France	88	97
176	132	- Germany	77	51
121	103	- Poland	58	40
112	89	- Romania	52	35
78	76	- Bulgaria	29	30

Appendix

NON-PROGRAMMABLE: KEY FIGURES (2/2)

1H 2017	1H 2016	Euro millions	2Q 2017	2Q 2016
		Recurring EBITDA:
132	145	Italy	51	58
15	21	France	5	5
12	10	Germany	6	4
2	4	Poland	0	1
6	4	Romania	3	1
4	3	Bulgaria	2	1
170	187	Total Recurring EBITDA	66	70
(79)	(83)	Depreciation	(41)	(42)
91	104	Recurring EBIT	25	28

ERG POWER: KEY FIGURES

1H 2017	1H 2016	Euro millions	2Q 2017	2Q 2016
1,175	1,293	Electricity Production (GWh)	574	597
40	52	Recurring EBITDA	25	24
(16)	(15)	Depreciation	(8)	(7)
24	37	Recurring EBIT	17	17

Appendix

ERG HYDRO: KEY FIGURES

1H 2017	1H 2016	Euro millions	2Q 2017	2Q 2016
652	751	Electricity Production (GWh)	266	367
54	41	Recurring EBITDA	19	20
(29)	(29)	Depreciation	(15)	(15)
25	12	Recurring EBIT	4	5

INVESTMENTS

1H 2017	1H 2016	Euro millions	2Q 2017	2Q 2016
(2) 60	(1) 319	Non-Programmable	(2) 52	11
5	5	Programmable	3	4
		of which:
4	4	- Thermo	2	3
1	1	- Hydro	1	1
1	1	Corporate	1	0
66	325	Total	55	15

(1) 1H 2016 figure includes 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.

Appendix