ERG — Investor Presentation 2024

Sep 11, 2024

ERG COMPANY OVERVIEW

Italian Infrastructure Day

12 September 2024

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 no 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

❑ ERG Today

• ❑ Recent Developments, 2Q 2024 Results and 2024 Guidance
• ❑ Financials & Capital Structure
• ❑ Abstract of ERG's 2024-2026 Business Plan
• ❑ Management Profiles

ERG TODAY

in Europe is 2,198MW. On August 2, ERG signs an agreement with ENEL for the sale of ERG Hydro S.r.l.(1)

Wind: ERG grows (+86MW) in France and Germany.

ERG enters the solar market and Spain (92MW)(2)

ERG enters the solar market in Germany: co-development agreement with AREAM (600MW).

2020

in France (79MW) .

2021 in Spain (+149MW).

.

2023

ERG starts up the first two repowered wind farms in Sicily, and increases its solar assets

On October 17 ERG sells the CCGT, becoming a pure renewable player.

2022

Wind: ERG acquires 172MW in Italy, and starts up ~230MW in Europe.

With a 35% share in SQ Renewables SpA, IFM NZFI becomes ERG's indirect shareholder, alongside Garrone-Mondini Family.

Wind: ERG enters the Sweden market, and starts operation in U.K.. At year-end installed wind capacity

With the acquisition of Andromeda assets (51MW), ERG increases its PV total capacity up to 141MW.

in the United Kingdom with a 47.5MW project. At the end of 2016, installed wind capacity is 1,720MW.

ERG enters the wind market

2014

Italy (527MW).

Wind: ERG continues its growth (+146MW) in France and Poland.

2019

(1) The closing for the sale of the Hydro portfolio to Enel took place on January 3, 2022

1997

2006

2008

TotalERG is established, a joint venture for the sale of oil products.

2010

ERG Power's combined cycle power plant (480MW) fuelled by natural gas enters operation.

2013

ERG is the leading wind operator in Italy (1,087MW) and among the top ten in Europe (1,340MW), and acquires a company for wind farm O&M activities.

ERG transfers the ISAB Energy plant and the fuel network of ERG Oil Sicily.

ERG completes its exit

from refining.

ERG sells 49% of the ISAB Refinery to LUKOIL.

Through ISAB Energy, ERG starts producing and selling electricity from gasification of the heavy residues from refinement.

2000

ERG enters the renewables sector with the acquisition of EnerTAD.

The ERG share is listed on the Stock Exchange.

(2) The closing of the solar acquisition in Spain (92MW) took place on January 31, 2022

A LONG HISTORY…

Production commences at the San Quirico Refinery

in Genoa.

1947

1975

GROUP'S STRUCTURE AND BEST-IN-CLASS GOVERNANCE MODEL

(1) Data as at May 23, 2024

Managers Committees to oversee strategy

ERG AS OF TODAY: A SOLID AND INTERNATIONAL PLATFORM

TOP TIER ESG RECOGNITION

8 ERG best-in-class in ESG: 28th worldwide and 1st in Italy in the Corporate Knights Global 100

RECENT DEVELOPMENTS, 2Q 2024 RESULTS & 2024 GUIDANCE

HIGHLIGHTS: KEY FIGURES(1)

Net Profit(3) (€ mn)

CAPEX (€ mn)

(1) Adjusted figures on continuing operations (excluding CCGT for 1H 2023) (2) It refers to figures net of clawback measures (including IFRS 16 effect)

(3) Net Profit post-Minorities, and net of clawback measures and windfall taxes

(4) It does not include IFRS 16 liability, respectively for €172mn as at 31.12.23, and €213mn as at 30.6.24

RECENT ACHIEVEMENTS

EXECUTION WELL ON TRACK

A secured and international mix of organic projects and M&A

(1) Mineo-Militello-Vizzini (50.9MW on a differential basis; gross capacity post-repowering = 101MW) entered into operation on April 24, 2024 after completion of repowering activities (2) Closing on April 24, 2024

(3) It refers to Limousin 1 (Saint Maurice La Clouère, 9.2MW) and Bourgogne 1 (Moulins du Bois, 32.4MW) wind farms, entered into operation respectively on July 24, and on August 20, 2024

(4) Of which, Wind: Salemi-Castelvetrano + Reinsdorf (50.4MW + 3MW on a differential basis; gross capacity post-repowering = 76MW + 6MW), and Solar: Siena (gross capacity post-repowering = 29MW)

BUILDING UP A LARGER AND WELL DIVERSIFIED PORTFOLIO IN EUROPE

~170MW(1) currently under construction ~500MW(2) of further projects fully authorized

Adding visibility to our growth prospects in IT, FR, UK and DE. First move in Storage

A PLATFORM OF PPA WITH TIER 1 OFF-TAKERS TO STABILIZE REVENUES

Country & Asset Type			Plants & Capacity	Price Structure	Tenor / Start Date	Counterparty	Volume
		Greenfield	Evishagaran / Craiggore tot. 70MW	Fixed Price	6 years Jan '22		~250GWh/Y Pay as Produced
		Asset Based FiP expired	Bois Bigot, Bois de l'Arche/Theta PTF 72MW	Fixed Price	5 years Sept – Dec '21		~150GWh/Y Pay as Produced
		Greenfield	Mulligan 70W	Fixed Price	12 years Jan '23		~Avg. 133GWh/Y Fixed Shape
		Greenfield	Great Pathfinder 224W	Fixed Price	12 years Apr '23		~831GWh/Y Pay as produced
		Greenfield	Sandy Knowe / Creag Riabhach tot. 179W	Fixed Price	10 years Jan '23		~400GWh/Y Baseload
		Greenfield	Garnacha 149MW	Discount to Mkt with Floor	12 years from COD (exp. Apr '24)		~190GWh/Y Pay as Produced
		Repowering	Partinico-Monreale 42MW	Fixed Price	12 years Jan '23		~70GWh/Y Baseload
		Greenfield	Chaume Solar 29MW	Fixed Price	15 years Jan '25		~35GWh/Y Pay as Produced
		Asset Based FiP expired	Wind Portafolio 160MW equiv.	Collar Structure	9 years Jan '23		~420GWh/Y Baseload + ~120GWh/Y Pay as Produced
		Repowering	Camporeale + Mineo-Militello- Vizzini tot. 150MW	Fixed Price	15 years Jan '24		~260GWh/Y Baseload
		Greenfield	Roccapalumba 47MW	Fixed Price	20 years from COD (exp. Apr '24)		~100GWh/Y Pay as Produced

TOT: ~2.9TWh/Y(1)

Pro-active route to market approach through volatile years

(1) Corresponding to ca. 30% of full-year production

CONFIRMING 2024 GUIDANCE

(1) EBITDA guidance net of clawbacks. It includes IFRS 16 effect for €15mn

(2) It does not include IFRS16 liability, amounting respectively to €213mn (actual 1H 2024) and ~€210mn (2024 guidance) 15

FINANCIALS & CAPITAL STRUCTURE

EBITDA EVOLUTION IN THE PLAN PERIOD

Still a solid, visible and secured EBITDA

640MW OUT OF INCENTIVES IN THE BP PERIOD

PPA as route to market to stabilize revenues after the end of incentives

(1) Of which ca. 1.1TWh (in 2024) and ca. 0.8TWh (in 2026) under GRIN scheme in Italy

A SOLID FINANCIAL STRUCTURE

Gross debt at 30/06/2024

Repayment Schedule based on stock as of June 2024 (€ bn)

A strong and efficient balance sheet to support growth and a sustainable dividend policy

June 2024 Issuer Default Rating: BBB- Stable

and contracted clean onshore

Note: figures do not include the €500mn 6yrs fixed-rate Green Bond settled on July 2024

STILL HEADROOM TO CREATE VALUE…

Net debt & leverage over BP horizon

Still head-room to re-leverage with commitment to remaining Investment Grade rated

(1) It does not include IFRS 16 liability, amounting respectively to €172mn (FY 2023), ~€210mn (2024 guidance) and ~€200mn (2026 BP)

(2) As per 2024 guidance

(3) Annual All-in-cost: Rate + Credit Spread

(4) Annual Average

… THANKS TO HIGHLY COMPETITIVE FINANCING COSTS

ERG with the lowest cost of debt and the highest share of sustainable sources

Source: internal elaboration of publicly disclosed data as of December 31, 2023

(1) Sustainable Debt of Enel as of 30 September 30, 2023

(2) Internal estimation based on latest publicly available data

A NEW SUCCESSFUL GREEN BOND ISSUANCE

• On June 26 ERG issued its 4th Green Bond (settled on July 3, 2024)
• Very well received by the market: demand peaking >5x
• Significant participation of international investors and national institutions

Ahead of its 2025 maturity, the new GB:

• ➢ extends debt avg. duration
• ➢ fits the new maturity schedule

The issuance, due to:

• ➢ ERG high credit standing and supporting demand
• ➢ pre-hedging at very competitive conditions
• ➢ secured generous remuneration on proceeds temporarily placed
• ➢ green format

is consistent with targets of competitive cost of debt and Sustainable Sources >90%

ABSTRACT OF ERG'S 2024-2026 BP

EU & US ARE STILL GROWING MARKET FOR RENEWABLES

RES still at the basis of the global energy transition

IN A CONTEXT OF HIGHER CAPITAL INTENSITY AND COST OF CAPITAL...

• A selective and flexible investment approach
• Targeting a 200-400bps return over WACC
• Framework agreements on ongoing construction
• A proper technological mix

• Fully self-financed business plan
• A strong and fully hedged balance sheet
• An IG rating leads to competitive cost of debt
• Pre-hedge at almost zero rate to partially cover next bond issuance

... ERG can rely on a sound financial structure and on a well diversified portfolio

VOLATILITY IN NATURAL GAS AND ELECTRICITY PRICES

Electricity prices – 2024 daily fwd prices evolution (€/MWh) Volatility remains high even in FWD expectations and main providers scenario (€/MWh)

ERG's ability to react

• 85%-90% quasi-regulated EBITDA through CFDs and PPAs
• Active energy management to hedge short term revenues
• Developing a pipeline of storage facilities
• A technological mix skewed towards wind

REGULATORY FRAMEWORK IN EVOLUTION

CFDs & PPAs

ERG's Policy Asks / What still needs to be defined

• Solid CFDs support schemes in place or expected soon in ERG core countries (FERX in Italy)
• PPAs standardization & derisking

Repowering

• Dedicated schemes/auctions
• Relaxation of tip height limits
• Accelerated permitted

Storage

• Support mechanisms
• Bespoke regulatory framework
• Deployment plan

Grids

• Increase investments
• Better RES integration
• Grid optimisation

ERG's proactive levers

• Leveraging on a large and diversified pipeline in our core countries
• Track record in PPA execution

Geographies

• Battery storage pipeline ready to leverage on new rules

• Building early stage hybridization pipeline in Italy and in France

ERG'S 2024-2026 PLAN: VALUE OVER VOLUME

ERG'S new targets to 2026

Selective growth Ca. 4.5GW (+1.2GW) installed Capacity in 2026 (> 5.0GW in 2028) pursued via a cherry-picking approach from our Pipeline and/or M&A

Investments/EBITDA CAPEX: €1.2bn 2024-2026; EBITDA: €600-€650mn @2026

Route to market Confirmed target 85%-90% regulated on total EBITDA through CFD & PPA

Value creation Unlevered IRR targeted 200-400bps over WACC

~10 countries in 2024: Selective Prioritization of geographies Assessing asset rotation opportunities Targeting 0.5-0.7GW in the US

Storage, hybridization & digitilisation Storage and hybridization under development to increase Asset PTF Flexibility Digitalization to optimize the performance of assets

ESG Leveraging on ESG 2021-2023 track record to pursue new targets in all the pillars

Enhanced Shareholder Remuneration Annual shareholder remuneration with a floor at €1ps as dividend and a cap at €1.3ps based on yearly performance and perspectives (upside payable also through buyback)

Geographical diversification

ERG IS AIMING AT CREATING VALUE IN A COMPLEX SCENARIO

• ❑ Targeting 200-400bps over WACC
• ❑ Visible growth
• ❑ Solid pipeline underpinning the target
• ❑ Assessing asset rotation to maximise value

❑ EBITDA range at €600-650mn

• •Still 85%-90% quasi regulated, to face volatility
• Evolving towards a more international business model
• Financial Policy ❑ Further room for re-leverage and accelerate growth
  • ❑ Maintaining an IG rating ❑ Competitive cost of financing

❑ Annual shareholder remuneration with a floor at €1ps as dividend and a cap at €1.3ps based on yearly performance and perspectives, with upside payable also through buyback

PURSUING GROWTH WITH A "VALUE OVER VOLUME" APPROACH

Value over Volume strategy based on a stricter financial discipline M&A still a selective and flexible option to accelerate growth

A FLEXIBLE AND SELECTIVE APPROACH TO GROWTH

• Focus on key core countries to consolidate ERG's presence
• Supportive regulatory framework as a key driver
• US as a priority with a "learn & grow" approach
• Assessing asset rotation opportunities

M&A/Asset rotation as option to accelerate growth, optimizing geo-footprint and enhance returns

OUR REPOWERING PROJECTS IN EUROPE ARE GAINING VISIBILITY

32 A solid pipeline in Repowering to be activated opportunistically based on market dynamics

ESG STRATEGY 2024-2028

MANAGEMENT PROFILES

PAOLO MERLI – CHIEF EXECUTIVE OFFICER

Born in Milan on 24th June 1971, he graduated in Electrical Engineering from the University of Pavia in March 1996. After doing his national service at the Italian Red Cross, in June 1998 he was awarded an MBA in Finance from the Eni "Scuola Superiore Enrico Mattei".

Currently he is Chief Executive Officer of the ERG Group, which he joined in 2006 and where he has held various positions such as Corporate General Manager and Chief Financial Officer, with responsibility for Investor Relations & CSR, Group Administration, Finance, Planning, Control & Reporting, Group Risk Management & Corporate Finance, Procurement, Human Capital & ICT and Communication.

He is member of the Strategic Committee, a Board Director of ERG S.p.A. and ERG Power Generation S.p.A., beside being member of other internal committees such as Management Committee, ESG Committee, Investment Committee, Risk Committee and Human Capital Committee. From 2014 to April 2021 he was CFO and Manager Responsible for preparing the Company's financial reports.

Other positions held in the past:

From October 2015 to January 2018 he was a member of the Board of Directors of TotalErg S.p.A.

He previously worked for around 7 years as a financial analyst covering the European Energy and Motorways sectors at Intermonte, a leading brokerage firm owned by the Monte dei Paschi Banking Group. At Intermonte he was also a "specialist" in ERG stock when ERG joined the STAR segment.

From 1998 to 2000 he worked in the sales department at Snam S.p.A. (current Gas & Power division of Eni Group).

Outside of work, his biggest passion is sport, particularly cycling (racing and mountain biking), running and skiing (alpine and cross-country). Over ten participations in the Maratona dles Dolomites, the NY and Valencia marathons, and the climb up Monte Rosa are among his best experiences. He is married, with two children.

MICHELE PEDEMONTE – CHIEF FINANCIAL OFFICER

Born in Genoa on 2nd March 1975, he graduated in Economics from the University of Genoa.

He joined the ERG Group in 2006 where he is currently Chief Financial Officer with the responsibility of Group Administration, Finance & Group Risk Management, Planning, Control & Reporting, and Procurement.

He is also Manager Responsible for preparing the Company's financial reports. Member of Management Committee, Investment Committee, Risk Committee, ESG Committee and Human Capital Committee, he is also Board Director of ERG Power Generation Spa. He is secretary of the Strategic Committee of the ERG Group.

Other positions held in the past:

He previously worked for 6 years in the investment banking for Andersen Corporate Finance, Meliorbanca and Centrobanca, as advisor in M&A, corporate and project finance deals.

Between 2000 and 2001 he worked for Marconi Communications as business development analyst.

Out of the office, his main passions are sport (running, ski and rugby), mountain and reading.

He is married with three children.

EMANUELA DELUCCHI – CHIEF ESG, IR & COMMUNICATION OFFICER

Born in Genoa on 18th December 1975, she graduated in Economics from the University of Genoa in March 1999.

She joined the ERG Group in February 2008 where she is currently Chief ESG, IR & Communication Officer, with the mission to develop and monitor the implementation of the ESG (Environment, Social and Governance) Plan and to ensure the development of integrated communication strategies and solutions to guarantee the extensive promotion of the Group with the financial community and all stakeholders, maximizing the value of its reputation and protect ERG's company image.

Other positions held in the past:

From June 2020 to April 2021 she was Head of IR and CSR, reporting directly to the Corporate General Manager & CFO, and from February 2011 to June 2020 she was Investor Relations Manager.

From February 2008 to January 2011 she was Head of IR and Planning & Control at ERG Renew.

She previously worked for 3 years as a financial analyst covering the Italian Utilities & Motorways sectors at Intermonte, a leading brokerage firm owned by the Monte dei Paschi Banking Group.

Prior to that she was a financial analyst covering European Utilities & Motorways sector at Lehman Brothers. She is married, with three children.

INSPIRING CHANGE TO POWER THE FUTURE