ERG — Investor Presentation 2018

Aug 3, 2018

SECOND QUARTER 2018 RESULTS

3 AUGUST 2018LUCA 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 2018 Highlights

-Key Figures

-Recent Developments

Results Review

-Business Environment

• -1H 2018 Group EBITDA
• -Results by Segments

Key Financials

-Profit & Loss

-Investments

-Cash Flow Statement

2018 Guidance and Conclusions

Appendix

HIGHLIGHTS: KEY FIGURES

Good results thanks to ERG generation mix

(1) It excludes TE contribution for €8.6mn in 2Q 2017 and €14.8mn in 1H 2017(2) It includes Vendor Loan to api for €36mn.

LIABILITY MANAGEMENT IN 1H 2018

Liability Management for about €500mn in 1H 2018

BOOSTED GROWTH IN UK

Deal description

On August 2, 2018 ERG acquired 100% of Creag RiabhachWind Farm

• •79.2MW authorized project in Scotland
• •Construction to start in 2020
• •Entry into operation by March 2022
• •Expected production: 250GWh, more than 3,000 heq per year
• •Total Capex: 89mn GBP (€98mn)

Strategic rationale

• •Boosting ERG growth strategy in UK
• •Secured pipeline in UK to increase from 84MW to 163MW
• • The project will enable to accelerate the path towards the 2018-2022 BP targets

GREENFIELDDEVELOPMENT WELL ON TRACK

REPOWERING& REBLADING IN PROGRESS

• •4 projects entered into the permitting phase
• •1 project to apply for authorization by 3Q 2018
• •Engineering in course for 1 project, to start permitting by year end
• •1 project under construction
• •2 projects in the permitting phase
• •1 project in the engineering phase

NEWCOWITH QUERCUS IN THE SOLAR IN ITALY

Deal description

On August 3, 2018 ERG and Quercus Assets Selection Sarl signed an agreement for the constitution of

• • ERG Q Solar1 (60% ERG, 40% Quercus) active in the solar sector in Italy
• focus on acquisition of small solar plants (below 1MW) for a total target up to 150MW by 2021
• total expected CAPEX up to €350mn

•Investment Approval based on predefined guidelines

(1) With casting vote

Low Double Digit target return on Equity (at premium vs traditional M&A)

NEWCO: STRATEGIC RATIONALE AND TARGETS

Approach & Strategic rationale

Potential targets: 0.2-1.0MW plants

• Dedicated M&A team, based on a standardized business model
• Quick & Efficient decision making process
• •Focus on medium small plants sector, with low liquidity
• •Competitive returns vs. large scale M&A
• Way out clause exercisable in 18 months
• Target up to 150MW

RESULTS REVIEW

PAOLO MERLI, CFO

BUSINESS ENVIRONMENT

( ) ly lec du d h I E ic i Pr io De T W ta tr ty t o c n v s m an :
	2 Q 2 0 1 7	2 Q 2 0 8 1	l % De ta
l ian lec ic i d I E De ta tr ty ma n	7 7	7 7	% 0
l lec du I ian E ic i Pr io ta tr ty t o c n	6 9	6 7	-2 %
f h h: ic o w
he T rm o -	4 4	3 7	-1 6 %
dr Hy o -	1 1	1 7	5 4 %
lar So -	8	8	% -6
in d W -	4	4	0 %

All-in Wind Prices abroad (€/MWh)

1H 2018 GROUP EBITDA EVOLUTION

ENERGY PORTFOLIO

Total 1H 2018 Production: 4.0TWhTotal Energy Portfolio including hedging & other sales: 7.1TWh

WIND RESULTS

Generalized weak wind conditions, coupled with end of incentives in Italy

SOLAR RESULTS

Solar consolidated as of 01/01/2018

HYDRO RESULTS

531

Strong hydro conditions

CCGT RESULTS

Tough trading environment

INVESTMENTS

(1) M&A CAPEX include: Vent d'Est acquisition for €12mn, Epuron acquisition for €67.3mn, Valle de l'AA extension acquisitionfor €1mn and ForVEI consolidation for €345mn

(2) M&A CAPEX include: Epuron acquisition for €67.3mn and Valle de l'AA extension acquisition for €1mn

KEY FINANCIALS

ADJUSTED COSTS P&L

1 H 2 0 1 8	d Re ta te s 1 H 2 0 1 7	l l Eu i io ro m ns	2 Q 2 0 1 8	d Re ta te s 2 Q 2 0 1 7
2 7 7	2 5 8	d d A j E B I T D A te us	1 1 4	1 0 7
( ) 1 3 6	( ) 1 2 6	d de Am iza ion iat ion t t or an p rec	( ) 6 8	( ) 6 4
1 4 0	1 3 3	d d A j E B I T te us	4 7	4 3
( ) 3 8	( ) 3 4	( ) f ina ia l inc Ne t nc om e ex p en se s	( ) 2 0	( ) 8 1
0	( ) 0	( ) f inc los ity inv Ne t tm ts om e s ro m eq u es en	( ) 0	( ) 0
1 0 3	9 9	d d l be fo A j Re te ts ta us su re xe s	2 7	2 5
( ) 2 7	( ) 2 6	Inc e t om ax es	( ) 8	( ) 7
6 7	2 7	fo d j d l he io d A Re te ts t us su r p er	9 1	8 1
( ) 0	0	M ino ity int sts r ere	( ) 0	0
7 6	7 2	d d f A j Ne Pr i te t t us o	1 9	1 8
2 6 %	2 6 %	Ta Ra te x	2 8 %	2 8 %

Note: figures based on NO GAAP measures

1H 2018 CASH FLOW STATEMENT

(1) Acquisitions include: Vent d'Est for €12mn, Vaa2 extension for €1mn, Epuron for €67.3mn and ForVEI consolidation for €345mn(2) It includes €179mn referred to TotalERG disposal (on January 10, 2018), and €106mn referred to Brockaghboy disposal (on March 8, 2018)

2018 GUIDANCE AND CONCLUSIONS

LUCA BETTONTE, CEO

2018 GUIDANCE

Adj. EBITDA: Guidance raised from €475mn to €490-500mn range

Guidance increased to €520-540mn range to include recent agreement for further development in the solar business

Guidance increased to €1.35bn

(1) CAPEX include the closing of Vent d'Est acquisition (which took place on March 22, 2018 amounting to €12mn), and ForVEI consolidation (whose acquisition took place onJanuary 12, 2018) for €345mn

(2) It includes Vendor Loan to api for €36mn

2018 FCST

1H 2018

APPENDIX

2Q 2018 GROUP EBITDA EVOLUTION

(1) Acquisitions related to the closing of Vent d'Est (which took place on March 22, 2018 amounting to €12mn) and ForVEI consolidation (whose acquisition took place on January 12, 2018) for €345mn.

WIND: KEY FIGURES (1/2)

1 H 2 0 1 8	1 H 2 0 1 7	l l Eu i ion ro m s	2 Q 2 0 1 8	2 Q 2 0 1 7
1, 8 3 9	1, 7 6 8	l le d c ( d- d, ) Ins ity io M W ta ap ac en p er	1, 7 9 1	1, 7 6 8
		f w hic h: o
09 3 1,	09 1, 4	aly - It	09 3 1,	09 1, 4
27 6	25 2	- F ran ce	27 6	25 2
21 6	21 6	- G erm an y	21 6	21 6
82	82	ola nd - P	82	82
70	70	- R ia om an	70	70
54	54	ulg ari - B a	54	54
48	0	- U K	0	0
1, 9 3 1	1, 8 0 9	lec du ( h ) E ic ity Pro ion G W tr ct	7 1 1	7 4 6
		f w hic h: o
1, 15 1	1, 07 8	aly - It	41 9	42 1
29 6	24 4	- F ran ce	96	88
8 17	6 17	- G erm an y	71	98
11 2	12 1	ola nd - P	51	58
91	11 2	- R ia om an	43	52
74	78	ulg - B ari a	31	29
29	0	- U K	0	0

WIND: KEY FIGURES (2/2)

1 H 2 0 1 8	1 H 2 0 1 7	l l Eu i ion ro m s	2 Q 2 0 1 8	2 Q 2 0 1 7
		/ ( h ) Un ita Re € M W ry ve nu es :
12 3	15 0	ly - It a	11 8	15 8
87	89	- F ran ce	86	89
93	96	- G erm an y	93	95
52	42	lan - P d o	55	41
50	64	- R ia om an	50	63
71	71	- B lga ria u	71	79
10 0	n.a	- U K	n.a	n.a
		d j d A E B I T D A: te us
11 6	13 2	ly - It a	39	51
18	15	- F ran ce	4	5
12	12	- G erm an y	4	6
4	2	lan d - P o	2	0
3	6	- R ia om an	2	3
4	4	lga - B ria u	2	2
3	0	- U K	0	0
1 5 9	1 7 0	l d d To A j E B I T D A ta te us	5 2	6 6
( ) 8 1	( ) 9 7	ia ion De t p re c	( ) 0 4	( ) 1 4
7 8	9 1	d d A j E B I T te us	1 3	2 6

SOLAR: KEY FIGURES

1 H 2 0 1 8	1 H 2 0 1 7	i l l io Eu ro m ns	2 Q 2 0 1 8	2 Q 2 0 1 7
6 4	n. a.	le du ( h ) E ic i Pr io G W tr ty t c o n	4 3	n. a.
2 9 0	n. a.	/ ( h ) Un i € W Re M ta ry ve nu es	2 9 1	n. a.
1 6	n. a.	d j d A E B I T D A te us	1 1	n. a.
( ) 1 0	n. a.	De ia io t p re c n	( ) 5	n. a.
6	n. a.	d d A j E B I T te us	6	n. a.

HYDRO: KEY FIGURES

1 H 2 0 1 8	1 H 2 0 1 7	l l Eu i io ro m ns	2 Q 2 0 1 8	2 Q 2 0 1 7
1, 0 0 1	6 5 2	le du ( h ) E ic i Pr io G W tr ty t c o n	5 3 1	2 6 6
9 9	1 0 1	( / ) h Un i Re € M W ta ry ve nu es	1 0 4	1 1 0
8 0	5 4	d d A j E B I T D A te us	4 5	1 9
( ) 2 9	( ) 2 9	De ia io t p re c n	( ) 1 4	( ) 1 5
5 1	2 5	d j d A E B I T te us	3 1	4

CCGT: KEY FIGURES

1 H 2 0 1 8	1 H 2 0 1 7	l l Eu i io ro m ns	2 Q 2 0 1 8	2 Q 2 0 1 7
1, 0 5 4	1, 1 7 5	le du ( h ) E ic i Pr io G W tr ty t c o n	5 2 8	5 7 4
3 7	4 7	( / ) i h Un Re € M W ta ry ve nu es	2 4	5 1
3 0	4 0	d d A j E B I T D A te us	1 1	2 5
( ) 1 5	( ) 1 6	De ia io t p re c n	( ) 8	( ) 8
1 4	2 4	d j d A E B I T te us	3	1 7

INVESTMENTS

2 0 8 1 H 1	2 0 1 H 1 7	i l l io Eu ro m ns	2 Q 2 0 8 1	2 Q 2 0 1 7
( 1) 9 7	6 0	in d W	( 2) 8 0	5 2
( 3) 3 4 5	n. a.	lar So	( ) 1	n. a.
1	1	dr Hy o	1	1
2	4	C C G T	1	2
1	1	Co te rp or a	0	1
4 4 7	6 6	l To ta	8 1	5 5

(1) It includes: Vent d'Est acquisition for €12mn, Epuron acquisition for €67.3mn and Valle de l'AA extension acquisition for €1mn

(2)It includes: Epuron acquisition for €67.3mn and Valle de l'AA extension acquisition for €1mn

(3)It refers to ForVEI consolidation