ERG — Investor Presentation 2021

Jul 30, 2021

2Q AND 1H 2021 RESULTS

Paolo Merli - CEO

30 July 2021

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 2021 Highlights

- Key Figures

• Recent Developments
• ❑ Results Review
  • Business Environment
  • 1H 2021 Group EBITDA
  • Results by Segments

❑ Key Financials

• Profit & Loss
• Investments
• Cash Flow Statement
• ❑ 2021 Guidance and Conclusions
• ❑ Appendix

HIGHLIGHTS: KEY FIGURES

EBITDA (€ mn)

CAPEX (€ mn)

CCGT

Hydro

Wind

Solar

(1) Adjusted means net of special items and IFRS16/IFRS9 effects.

RECENT DEVELOPMENTS

• Advancements in M&A and Proprietary Greenfield:
  • ✓ M&A in France: +80MW Wind and Solar
  • ✓ +47MW: acceleration on organic Wind project in Italy
• Advancements in Repowering:
  • ✓ +143MW Gross (77MW net) fully permitted attended to the GSE 6th RES auction in June
• Construction:
  • ✓ 77MW (UK and France) expected on stream by year-end
• Route to Market:
  • ✓ Signed first 2 PPAs in Northern Ireland for 250GWh

RESULTS REVIEW

Michele Pedemonte - CFO

BUSINESS ENVIRONMENT

Italy: Electricity Production vs Demand (TWh)		Clean Spark Spread Indicator (€/MWh)
-----------------------------------------------	--	--------------------------------------

	2Q 2020	2Q 2021	Delta %
Italian Electricity Demand	67	76	14%
Italian Electricity Production	65	67	4%
of which:
- Thermo	36	39	9%
- Hydro	14	13	-6%
- Solar	8	8	0%
- Wind	5	5	0%
- Other Sources	1	1	-1%

1H 2021 GROUP EBITDA EVOLUTION

Strong recovery in Hydro volumes and weaker CCGT Wind abroad down vs extraordinary 1H 2020

WIND RESULTS

In 2Q 2021 better results both in Italy and abroad thanks to a generalized better scenario

SOLAR RESULTS

Results in line YoY, in a context of lower volumes and better scenario

HYDRO RESULTS

Strong increase of Hydro volumes EBITDA doubles YoY ¹¹

THERMO RESULTS

End of White Certificates and tough market conditions for CCGT

INVESTMENTS

Investments increase: M&A and UK constructions

• (1) M&A CAPEX related to the closing of Trinity acquisition (which took place on February 24, 2020 for an amount of €42mn), and of Laszki acquisition (which took place on March 5, 2020) amounting to €2mn
• (2) M&A CAPEX related to the closing of the recent Wind acquisition in Sweden (which took place on May 10, 2021 for an amount of €41mn), and of Joran Wind and Solar acquisition in France (which took place on June 24, 2021) amounting to €147mn

KEY FINANCIALS

Note: figures based on NO GAAP measures 15

(135)	(149)

ADJUSTED P&L

281	263	Adjusted EBITDA	121	107
(135)	(149)	Amortization and depreciation	(67)	(75)
147	114	Adjusted EBIT	54	32
(16)	(25)	financial Net income (expenses)	(8)	(12)
0	0	Net income (loss) from equity investments	0	0
131	88	Adjusted Results before taxes	46	20
(31)	(17)	Income taxes	(10)	(2)
100	71	Adjusted Results for the period	35	18
(1)	(1)	Minority interests	(1)	(1)
100	70	Adjusted Net Profit	35	16
24%	19%	Tax Rate	23%	12%

1H 2021 1H 2020 Euro millions 2Q 2021 2Q 2020

1H 2021 CASH FLOW STATEMENT

2021 GUIDANCE

Paolo Merli - CEO

2021 GUIDANCE

Revised upwards to reflect stronger business environment and investments

APPENDIX

2Q 2021 GROUP EBITDA EVOLUTION

Better wind in Italy, poor wind conditions abroad, strong recovery in Hydro volumes and weaker CCGT

2Q 2021 CASH FLOW STATEMENT

ENERGY PORTFOLIO

Total 1H 2021 Production: 4.2TWh Total Energy Portfolio including hedging & other sales: 7.5TWh ²²

WIND KEY FIGURES (1/2)

1H 2021	1H 2020		2Q 2021	2Q 2020
2,025	1,967	Installed capacity (end-period, MW)	2,025	1,967
		of which:
1 093 ,	1 093 ,	- Italy	1 093 ,	1 093 ,
455	397	- France	455	397
272	272	- Germany	272	272
82	82	- Poland	82	82
70	70	- Romania	70	70
54	54	- Bulgaria	54	54
1,994	2,208	Electricity Production (GWh)	839	842
		of which:
1 070 ,	1 062 ,	- Italy	454	464
435	533	- France	173	162
208	274	- Germany	88	86
106	142	- Poland	49	52
98	110	- Romania	47	46
77	88	- Bulgaria	28	33

WIND KEY FIGURES (2/2)

1H 2021	1H 2020	Euro millions	2Q 2021	2Q 2020
		Unitary Revenues (€/MWh):
123	119	- Italy	129	117
89	90	- France	88	89
97	97	- Germany	102	96
84	72	- Poland	84	72
81	52	- Romania	86	42
78	61	- Bulgaria	79	51
		Adjusted EBITDA:
105	97	- Italy	44	40
24	35	- France	8	8
12	18	- Germany	5	5
6	8	- Poland	3	3
6	4	- Romania	3	1
5	4	- Bulgaria	2	1
(1)	(1)	- UK	(1)	(0)
157	166	Total Adjusted EBITDA	63	57
(76)	(84)	Depreciation	(38)	(41)
81	83	Adjusted EBIT	25	16

SOLAR KEY FIGURES

1H 2021	1H 2020	Euro millions	2Q 2021	2Q 2020
115	120	Electricity Prodution (GWh)	74	76
326	311	Unitary Revenues (€/MWh)	328	311
34	35	Adjusted EBITDA	22	22
(20)	(21)	Depreciation	(10)	(10)
13	14	Adjusted EBIT	12	12

HYDRO KEY FIGURES

1H 2021	1H 2020	Euro millions	2Q 2021	2Q 2020
998	553	Electricity Prodution (GWh)	331	229
104	107	Unitary Revenues (€/MWh)	122	115
84	40	Adjusted EBITDA	30	16
(22)	(29)	Depreciation	(11)	(14)
62	11	Adjusted EBIT	19	2

THERMO KEY FIGURES

1H 2021	1H 2020	Euro millions	2Q 2021	2Q 2020
1,050	1,131	Electricity Prodution (GWh)	525	504
29	30	Unitary Revenues (€/MWh)	33	33
15	30	Adjusted EBITDA	9	15
(15)	(15)	Depreciation	(7)	(7)
0	15	Adjusted EBIT	2	7

(1) M&A CAPEX related to the closing of the recent Wind acquisition in Sweden (which took place on May 10, 2021 for an amount of €41mn), and of Joran Wind acquisition in France

(3) M&A CAPEX related to the closing of the recent Joran Solar acquisition in France (which took place on June 24, 2021) amounting to €23mn

INVESTMENTS

amounting to €2mn

1H 2021	1H 2020	Euro millions	2Q 2021	2Q 2020
(1) 277	(2) 71	Wind	(1) 250	17
(3) 24	1	Solar	23	0
3	2	Hydro	2	1
7	12	CCGT	2	6
1	1	Corporate	0	0
311	86	Total	278	25