ERG — Investor Presentation 2024

Mar 13, 2024

4Q AND FY 2023 RESULTS

Paolo Merli - 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

❑ 2023: Execution and Completion of Energy Transition

• Key Figures
• Recent Developments

❑ Results Review

• Business Environment
• FY 2023 Production & EBITDA
• Investments

❑ Key Financials

• Profit & Loss
• Cash Flow Statement
• ❑ 2024 Guidance and Conclusions

2023: EXECUTION AND COMPLETION OF ENERGY TRANSITION

Paolo Merli - CEO

A STRONG SET OF RESULTS IN 2023

5 Strong results driven by larger installed capacity coupled with an efficient financial structure

COMPLETION OF OUR ENERGY TRANSITION

(1) Figures as of today do not include CCGT, which is accounted in FY 2023 under IFRS5 amongst the assets under disposal

ACHIEVEMENTS IN 2023/EARLY 2024

ENTERING THE US WIND & SOLAR MARKET

Transaction Overview Rationale

• Agreement with Apex Clean Energy Holdings for a strategic partnership (75% ERG's stake) to manage an operating Wind & Solar portfolio (for a total of 317MW)
• Apex will continue the operational management of the assets
• Cooperation agreement for additional 1GW solar and onshore wind projects under development
• Closing expected within 1H 2024

Location (within the MISO)

• First investment in the US renewable market boosting ERG's geographical diversification
• US to become one of the largest ERG's market abroad
• Plants located in highly attractive wind / solar resource zones
• Equipment provided by best-in-class O&Ms / EPCs
• Stable revenues ensured through long-term power purchase agreements
• Assets benefitting from tax equity investments with marketleading counterparts
• Stable investment return in a favorable regulatory environment

Wind & Solar Plants Overview
Total Capacity:	317 MW (224MW Wind + 92MW Solar)
Energy Production:	~1TWh (~ 35% average load factor)
Enterprise Value:	\$270mn
COD/commissioning:	Feb. 2023 (Wind), July 2022 (Solar)
Route to Market:	12-year Corporate PPA for each plant with primary off-takers

SIGNIFICANT EXECUTION FROM 2020 TO FY 2023

Keep delivering on our growth strategy with a mix of internal projects and M&A

(2) Fregenal (25MW) + Garnacha (149MW)

⁽¹⁾ Partinico-Monreale + Camporeale: gross capacity post-repowering = 42MW + 50MW

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

Country & size	Plants & Capacity	Price structure	Tenor/ start date	Counterparty	Volume	Signing Date
Asset Based FiP expired	110MW equiv. + Avigliano/Lacedonia 53MW	Collar Structure	10 years Jan '22		~220GWh/Y Baseload +~120GWh/Y Pay as Produced	May '21
Asset Based FiT expired	Bois Bigot, Bois de l'Arche/Theta PTF 72MW	Fixed Price	5 years Sept – Dec '21		~150GWh/Y Pay as Produced	Oct '21
Greenfield	Evishagaran/ Craiggore tot. 70MW	Fixed Price	5 years Jan '22		250GWh/Y Pay as Produced	Jul '21
Greenfield	Sandy Knowe/Creag Riabhach tot. 179W	Fixed Price	10 years Jan '23		400GWh/Y Baseload	Mar '22
Greenfield	Garnacha 149MW	Discount to Mkt with Floor	12 years From COD (exp. Apr '24)		~190GWh/Y Pay as Produced	Aug '22
Repowering	Partinico-Monreale 42MW	Fixed Price	12 years Jan '23		~70GWh/Y Baseload	Mar '23
Greenfield	Chaume Solar 29MW	Fixed Price	15 years Jan '25		~35GWh/Y Pay as Produced	Apr '23
Asset Based FiP expired	Wind Portafolio 100MW equiv.	Collar Structure	10 years Jan '23		~200GWh/Y Baseload	May '23
Repowering	Camporeale + Mineo-Militello Vizzini, tot. 150MW	Fixed Price	15 years Jan '24		~260GWh/Y Baseload	Nov '23
Roccapalumba Greenfield Fixed Price 47MW		20 years From COD (exp. Apr '24)		~100GWh/Y Pay as Produced	Feb '24
					TOT: ca. 2.0TWh/Y

A SOLID FINANCIAL STRUCTURE

Repayment Schedule based on stock as of December 2023 (€ bn)

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

RESULTS REVIEW

Michele Pedemonte - CFO

BUSINESS ENVIRONMENT

(2) UK prices net of balancing revenues

A SNAPSHOT OF FY AND 4Q 2023 RESULTS: PRODUCTION

2023	2022	Δ	Energy Production (GWh):	4Q 2023	4Q 2022	Δ	2023		2022
2,784	2,312	472	Italy:	851	567	284
2 528 ,	2 062 ,	466	• Wind	812	529	283	55%		53%
256	250	7	• Solar	39	38	1	6,139		4,956
1,315	1,076	239	France:	435	343	9 2	GWh		GWh
219 1 ,	982	237	• Wind	422	331	90	45%
96	94	1	• Solar	14	11	2
629	556	7 3	Germany - Wind:	217	153	6 4		Italy Europe
742	615	128	East Europe - Wind:	236	160	7 5	4Q 2023		4Q 2022
455	226	229	UK & Nordics - Wind:	129	8 1	4 8
213	171	4 2	Spain - Solar:	5 7	2 6	3 1	56%		57%
6,139	4,956	1,183	Total Energy Production	1,925	1,331	594	1,925		1,331
638		638	of which, Perimeter effect:	110		110	GWh		GWh
579		579	• Wind	82		82	44%
59		59	• Solar	27		27

A SNAPSHOT OF FY AND 4Q 2023 RESULTS: EBITDA

2023	2022	Δ	Adjusted EBITDA (€ mn):	4Q 2023	4Q 2022	Δ
294	288	7	Italy:	8 1	5 4	2 7
216	218	(2)	• Wind	70	46	24
79	70	9	• Solar	11	8	2
7 8	5 5	2 3	France:	3 0	1 8	1 1
73	50	23	• Wind	30	18	11
5	5	0	• Solar	0	(0)	0
6 5	7 0	(5)	Germany - Wind:	2 0	2 7	(6)
4 8	7 2	(24)	East Europe - Wind:	1 1	1 2	(1)
3 7	2 4	1 3	UK & Nordics - Wind:	1 6	6	1 0
2 0	1 8	2	Spain - Solar:	3	2	1
(22)	(25)	3	Corporate:	(5)	(8)	2
520	502	1 9	Total Adjusted EBITDA	(1) 155	112	4 4
68		68	of which, Perimeter effect:	17		17
62		62	Wind •	16		16
6		6	Solar •	0		0

(1) M&A CAPEX related to related to Valentia Solar acquisition in Spain (€100mn), plus Siena Solar acquisition (€115mn) and Donatello Wind acquisition (€396mn), both of them in Italy, and Corlacky Wind acquisition in UK (€27mn)

(2) M&A CAPEX related to the closing in Spain of two Solar acquisitions: Garnacha (on June 23, 2023, for about €152mn), and Fregenal (on June 30, 2023 for an amount of €31mn)

(3) M&A CAPEX mailny related to Corlacky Wind acquisition in UK (€27mn)

KEY FINANCIALS

ADJUSTED P&L

2023	2022	Euro millions	4Q 2023	4Q 2022
520	502	(1) Adjusted EBITDA	155	112
(215)	(229)	Amortization and depreciation	(54)	(63)
305	273	Adjusted EBIT	101	49
(6)	(25)	Net financial income (expenses)	(0)	(7)
(0)	0	Net income (loss) from equity investments	(0)	0
299	248	Adjusted Results before taxes	101	42
(71)	(115)	Income taxes	(24)	(29)
228	133	(2) Adjusted Results on continued operations	77	13
(2)	(4)	Minority interests	0	0
226	129	Adjusted Net Profit	77	14
(7)	16	(3) Adjusted Results on discontinued operations	(1)	(1)
219	145	Adjusted Results for the period	76	13
24%	46%	Tax Rate	24%	69%

Note: figures based on NO GAAP measures

(1) EBITDA net of clawback measures.

(2) Net Profit net of clawback measures.

(3) Figures refer to CCGT Results

EXTRAORDINARY CLAWBACK AND WINDFALL TAXES EFFECTS

2023	2022	At EBITDA level (€ mn):	4Q 2023 4Q 2022		2023	2022	(1) At NET PROFIT level (€ mn):	4Q 2023	4Q 2022
532	537	EBITDA gross of clawback measures	158	126	235	212	Net Profit gross of clawback measures/Windfall taxes	7 9	4 3
1 2	3 5	(-) Clawback measures:	3	1 5	9	8 3	(-) Clawback measures/Windfall taxes:	2	3 0
0	7	Italy	-	2	0	61	Italy	-	20
6	7	France	2	7	4	5	France	2	5
-	2	Germany	-	2	-	2	Germany	-	2
0		Spain	0		0		Spain	0
6	19	(2) East Europe	0	4	5	16	(2) East Europe	0	3
520	502	EBITDA net of clawback measures	155	112	226	129	Net Profit net of clawback measures/Windfall taxes	7 7	1 4

(2) In Romania clawbacks measures internalized in price mechanisms as of 2023

2023 CASH FLOW STATEMENT

(1) Figures from continuing operations

• (2) Figure net of clawback measures for €12mn
• (3) Out of which €5mn to Minorities
• (4) It includes prepayment fee for €5mn related to one-off fee related to liability management
• (5) It includes mainly +€28mn fair value IRS, and -€11mn others
• (6) It refers to CCGT disposal whose EV was €191mn

2024 GUIDANCE

Paolo Merli - CEO

EXTREME VOLATILITY IN NATURAL GAS AND ELECTRICITY PRICES

Revenues stabilized thanks to PPA, hedging and CFDs

(1) Of which ca. 1.1TWh under GRIN scheme in Italy, with a reversal correlation with previous year power prices (2) Of which ca. 0.9TWh CFD 1 way

ASSETS UNDER CONSTRUCTION

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

(1) Tot MW under construction: on absolute terms = 359MW, on a differential basis = 257MW

ANOTHER SIGNIFICANT GROWTH EXPECTED IN 2024

A visible and international mix of internal projects and M&A

(1) Of which 29MW Solar in final phase of construction

(2) Wind: Mineo-Militello-Vizzini + Salemi-Castelvetrano + Reinsdorf: gross capacity post-repowering = 101MW + 76MW + 6MW. Solar: Siena gross capacity post-repowering= 29MW

(3) Bourgogne 1 (32MW) + Limousine 1 (9MW)

2024 GUIDANCE

(1) Net of clawback measures in 2023 for €12mn

(2) EBITDA guidance net of clawbacks. It includes IFRS16 for €15mn and US consolidation assumed as of 2H 2024

(3) It does not include IFRS16 liability, amounting respectively to €172mn (actual FY 2023) and €210mn (2024 guidance) 25