ERG — Investor Presentation 2021

Mar 12, 2021

Full Year 2020 Results

12 MARCH 2021 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

❑ 4Q 2020 Highlights

• ✓ Key Figures
• ✓ 2020 Main Takeaways & Business Plan Deployment

❑ Results Review

• ✓ Business Environment
• ✓ 2020 Group EBITDA
• ✓ Results by Segments
• ❑ Key Financials
• ✓ Profit & Loss
• ✓ Investments
• ✓ Cash Flow Statement
• ❑ 2021 Guidance and Conclusions
• ❑ Appendix

HIGHLIGHTS: KEY FIGURES

Lower Ebitda driven by poorer Wind/Hydro production in Italy as well as tougher price scenario exacerbated by Covid-19 Bottom line up YoY thanks to lower financial charges and taxes

FY 2020 RESULTS VS GUIDANCE

Results at bottom-end of the guidance due to poorer than expected wind conditions in Q4

2020 MAIN TAKEAWAYS & BUSINESS PLAN DEPLOYMENT

EU STRONG PUSH TOWARDS RENEWABLES…

EU Green Deal: EU carbon zero by 2050 Next Generation EU for a greener, more digital and resilient EU

EU Green Deal and EU Recovery Fund to boost RES growth and Sustainability

… DIDN'T TRANSLATE INTO REALITY

• ✓ Tough and long permitting processes, exacerbated by low acceptance at local level and a high amount of litigation
• ✓ Covid-19 implications: delays in authorization and construction
• ✓ Infrastructural contraints involving the grids
• ✓ Complex permitting even for the RPW: only 345MW of 2020 capacity additions came from RPW, and 388MW were decommissioned

Bottleneck in Permitting is slowing down new capacity installations (far from PNIECs targets)

Source: WindEurope

ERG ON TRACK WITH 2022 BP TARGETS ALTHOUGH WITH SOME DELAYS

Some delays due to bottlenecks in authorization and Covid-19

PROJECTS UNDER CONSTRUCTION AND/OR RTB

Evishagaran		Sandy Knowe		Craiggore		Creag Riabhach
	47MW			86MW			24MW			92MW
• Construction started in January 2020		• Construction started in 4Q 2020		•	Construction started in 4Q 2019		• Construction started in 4Q 2020
COD: 4Q 2021		COD: 1Q 2022 (50MW); 2H 2023 (36MW)		COD: 4Q 2021			COD: 2H 2022
Producibility: 3,700 heq		Producibility: 3,100 heq		Producibility: 3,400 heq		Producibility: 2,900 heq

Laszki		Piotrkow		Champagne I		Vaa2 ext.
	36MW			24.5MW			20MW			7MW
• Construction to start in 2Q 2021		• Construction started in 4Q 2020		• Construction to start in 3Q 2021		• Construction to start in 3Q 2021
COD: 1H 2022		COD: 1H 2022		COD: 1H 2022		COD: 4Q 2021
Producibility: 2,500 heq		Producibility: 3,100 heq		Producibility: 2,300 heq		Producibility: 2,100 heq

Under Construction/RTB: 336MW

UPDATE ON REPOWERING

Repowering Project Portfolio in Italy (MW differentials)

• Gross RPW by 2022-23: from 410MW to 311MW
• Longer than expected complex authorisation processes, also exacerbated by Covid 19
• High degree of litigation: 205MW under recourse, with no visibility on timing
• Still working on 498MW RPW pipeline at different stages of development with COD beyond 2024

Delay in RPW but better quality of investments thanks to possibility to take part to the auctions

A SOLID PIPELINE TO BOOST FUTURE GROWTH

RESULTS REVIEW

PAOLO MERLI, CORPORATE GENERAL MANAGER & CFO

BUSINESS ENVIRONMENT

Italy: Electricity Production vs Demand (TWh)
	4Q 2019	4Q 2020	Delta %
Italian Electricity Demand	78	78	0%
Italian Electricity Production	68	67	-3%
of which:
- Thermo	46	45	-1%
- Hydro	12	12	-7%
- Solar	3	4	10%
- Wind	6	5	-17%
- Other Sources	1	1	0%

2020 GROUP EBITDA EVOLUTION

Weaker Wind in Italy but greater overseas, Hydro lower vs historical avg Period characterized by a poor price environment, exacerbated by Covid-19

WIND RESULTS

4Q penalized by a generalized worse wind availability in Italy and abroad

SOLAR RESULTS

Results better YoY thanks to greater volumes

HYDRO RESULTS

Results penalized by weaker volumes YoY due to a persistent dry season

CCGT RESULTS

Tough trading environment coupled with end of white certificates

INVESTMENTS

(1) M&A CAPEX related to the closing of Andromeda acquisition amounting to €220mn, Polaris acquisition for €52mn, Craiggore and Windwarts acquisitions (respectively for €6mn and €2mn,) and Barkow acquisition for €84mn

(2) 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 acquistion (which took place on March 5, 2020) amounting to €2mn

KEY FINANCIALS

ADJUSTED P&L

2020	2019	Euro millions	4Q 2020	4Q 2019
481	504	Adjusted EBITDA	119	124
(298)	(299)	Amortization and depreciation	(74)	(76)
183	205	Adjusted EBIT	45	48
(47)	(61)	Net financial income (expenses)	(9)	(13)
0	0	Net income (loss) from equity investments	0	0
136	144	Adjusted Results before taxes	36	34
(29)	(39)	Income taxes	(9)	(6)
107	105	Adjusted Results for the period	27	29
(2)	(1)	Minority interests	0	0
106	104	Adjusted Net Profit	27	29
21%	27%	Tax Rate	25%	16%

Note: figures based on NO GAAP measures

2020 CASH FLOW STATEMENT

2021 GUIDANCE

LUCA BETTONTE, CEO

2021 GUIDANCE

Go back to normal after COVID-19: Profitability up, Capex on the rise, Indebtedness under control

APPENDIX

4Q 2020 GROUP EBITDA EVOLUTION

Tough price environment, better wind conditions in Italy, lower volumes in Wind abroad and Hydro

4Q 2020 CASH FLOW STATEMENT

ENERGY PORTFOLIO

Total 2020 Production: 7.7TWh

Total Energy Portfolio including hedging & other sales: 14.9TWh

WIND: KEY FIGURES (1/2)

2020	2019		4Q 2020	4Q 2019
1,967	1,929	Installed capacity (end-period, MW)	1,967	1,929
		of which:
1,093	1,093	- Italy	1,093	1,093
397	359	- France	397	359
272	272	- Germany	272	272
82	82	- Poland	82	82
70	70	- Romania	70	70
54	54	- Bulgaria	54	54
3,911	4,000	Electricity Production (GWh)	1,028	1,155
		of which:
1,902	2,161	- Italy	486	587
952	794	- France	273	267
470	465	- Germany	126	138
244	255	- Poland	64	76
193	190	- Romania	43	52
150	135	- Bulgaria	36	35
0	0	- UK	0	0

WIND: KEY FIGURES (2/2)

2020	2019	Euro millions	4Q 2020	4Q 2019
		Unitary Revenues (€/MWh):
119	118	- Italy	115	115
89	89	- France	89	90
96	96	- Germany	93	92
78	73	- Poland	84	78
56	67	- Romania	65	63
66	79	- Bulgaria	79	90
		Adjusted EBITDA:
165	191	- Italy	41	51
58	47	- France	16	17
28	31	- Germany	8	9
15	15	- Poland	4	5
8	10	- Romania	2	2
9	8	- Bulgaria	4	2
(1)	(1)	- UK	(0)	(0)
282	301	Total Adjusted EBITDA	74	87
(165)	(169)	Depreciation	(40)	(42)
117	132	Adjusted EBIT	35	44

SOLAR: KEY FIGURES

2020	2019	Euro millions	4Q 2020	4Q 2019
228	226	Electricity Prodution (GWh)	32	32
315	314	Unitary Revenues (€/MWh)	318	302
66	63	Adjusted EBITDA	8	7
(42)	(41)	Depreciation	(11)	(11)
24	22	Adjusted EBIT	(3)	(4)

HYDRO: KEY FIGURES

2020	2019	Euro millions	4Q 2020	4Q 2019
1,097	1,229	Electricity Prodution (GWh)	319	361
109	102	Unitary Revenues (€/MWh)	103	94
81	87	Adjusted EBITDA	23	23
(57)	(57)	Depreciation	(14)	(14)
24	30	Adjusted EBIT	9	9

CCGT: KEY FIGURES

2020	2019	Euro millions	4Q 2020	4Q 2019
2,441	2,504	Electricity Prodution (GWh)	617	563
35	40	Unitary Revenues (€/MWh)	39	40
67	69	Adjusted EBITDA	16	11
(30)	(28)	Depreciation	(8)	(7)
37	41	Adjusted EBIT	9	3

INVESTMENTS

2020	2019	Euro millions	4Q 2020	4Q 2019
(1) 127	(2) 189	Wind	37	16
2	(3) 221	Solar	1	1
6	6	Hydro	2	3
18	15	CCGT	6	10
2	2	Corporate	1	1
156	432	Total	46	31

(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 acquistion (which took place on March 5, 2020) amounting to €2mn

(2) M&A CAPEX related to Polaris acquisition for €52mn, plus Craiggore and Windwarts acquisitions (respectively for €6mn and €2mn), and Barkow acquistion for €84mn

(4) M&A CAPEX related to the closing of Andromeda acquisition (which took place on February 12, 2019), amounting to €220mn