ERG — Investor Presentation 2017

May 12, 2017

FIRST QUARTER 2017 RESULTS 12 MAY 2017 LUCA BETTONTE, CEO

FIRST QUARTER 2017 RESULTS

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

1Q 2017 Highlights

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

HIGHLIGHTS: KEY FIGURES

Earnings up despite worse Wind and CCGT, keep deleveraging

Highlights

RESULTS REVIEW

PAOLO MERLI, CFO

BUSINESS ENVIRONMENT

(1) Italian theoretical price based on National Average Electricity Price (PUN) in Italy + feed-in premium

1Q 2017 GROUP EBITDA

Better Hydro, offset by worst wind conditions and by end of Essential Unit Regime in CCGT

ENERGY PORTFOLIO

1Q 2017 vs 1Q 2016 (TWh)

Larger Energy Management portfolio

NON-PROGRAMMABLE RESULTS

Worst wind conditions in Italy and in France

PROGRAMMABLE RESULTS

Good Hydro results offset end of Essential Unit Regime in CCGT

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)

TOTALERG: KEY FIGURES(1)

1Q	2Q	3Q	4Q	1Q
2016	2016	2016	2016	2017

1Q	2Q	3Q	4Q	1Q
2016	2016	2016	2016	2107

4Q 2016	Euro millions	1Q 2017	1Q 2016
38	Recurring EBITDA	41	30
18	Recurring EBIT	23	12
7	Recurring Net Profit	12	5
244	NFP	334	431
10.9%	TOTALERG retail market share	10.9%	11.0%

KEY FINANCIALS

PRO-FORMA RECURRING P&L

4Q 2016	Euro millions	1Q 2017	1Q 2016
104	Recurring EBITDA	151	163
(60)	Amortization and depreciation	(62)	(64)
44	Recurring EBIT	90	99
(20)	Net financial income (expenses)	(16)	(19)
4	Net income (loss) from equity investments	6	2
28	Recurring Results before taxes	80	82
(3)	Income taxes	(19)	(21)
24	Recurring Results for the period	61	61
0	Minority interests		(3)
24	Recurring Net profit	61	57
12%	Tax Rate	24%	26%

Note: figures based on NO GAAP measures

14

1Q 2017 CASHFLOW STATEMENT

Net deleverage of €93mn

2017 GUIDANCE AND CONCLUSIONS

LUCA BETTONTE, CEO

2017 GUIDANCE

11

1Q 2017

EBITDA:

✓Guidance confirmed at €430mn

CAPEX:

✓Guidance confirmed at €140mn

2017 FCST

≈140

NFP:

✓Guidance confirmed at €1.45bn

Business Plan to be presented in December 2017

2017 Guidance and Conclusions

APPENDIX

1Q 2017 RESULTS

4Q 2016	Euro millions	1Q 2017	1Q 2016
268	Revenues	303	295
104	Recurring EBITDA	151	163
78	- Non-Programmable	104	117
	of which:
56	- Italy	81	87
21	- Abroad	23	29
32	- Programmable	50	48
	of which:
7	- Thermo	14	27
25	- Hydro	35	21
(5)	- Corporate	(2)	(2)

NON-PROGRAMMABLE: KEY FIGURES (1/2)

4Q 2016		1Q 2017	1Q 2016
1,720	Installed capacity (end-period, MW)	1,720	1,720
	of which:
1,094	- Italy	1,094	1,094
252	- France	252	252
168	- Germany	168	168
82	- Poland	82	82
70	- Romania	70	70
54	- Bulgaria	54	54
870	Electricity Production (GWh)	1,062	1,226
	of which:
509	- Italy	658	774
121	- France	156	208
66	- Germany	77	81
75	- Poland	63	63
54	- Romania	60	54
46	- Bulgaria	49	46

NON-PROGRAMMABLE: KEY FIGURES (2/2)

4Q 2016	Euro millions	1Q 2017	1Q 2016
	Recurring EBITDA:
56	Italy	81	87
8	France	11	16
6	Germany	6	6
2	Poland	1	3
2	Romania	3	3
3	Bulgaria	3	2
78	Total Recurring EBITDA	104	117
(38)	Depreciation	(38)	(41)
39	Recurring EBIT	65	75

ERG POWER: KEY FIGURES

4Q 2016	Euro millions	1Q 2017	1Q 2016
661	Electricity Production (GWh)	600	695
7	Recurring EBITDA	14	27
(8)	Depreciation	(8)	(7)
(1)	Recurring EBIT	7	20

ERG HYDRO: KEY FIGURES

4Q 2016	Euro millions	1Q 2017	1Q 2016
329	Electricity Production (GWh)	386	384
25	Recurring EBITDA	35	21
(14)	Depreciation	(15)	(15)
11	Recurring EBIT	21	6

4Q 2016	Euro millions	1Q 2017	1Q 2016
23	Non-Programmable	8	(1) 308
5	Programmable	2	2
	of which:
4	- Thermo	2	1
1	- Hydro	1	1
2	Corporate	0	1
29	Total	11	310

(1) In 1Q 2016: M&A CAPEX include investments related to the closing of IMPAX acquisition (which took place on February 2, 2016, amounting to €292mn) and Brockaghboy acquisition (€14mn)