ERG S p A : Repowering & Energy Transition Press Conference

REPOWERING & ENERGY TRANSITION

PRESS CONFERENCE

October 24-25, 2023

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
• Delivering on our Strategy
• A focus on Repowering and on Sicily
• M/LT Outlook and Business Plan

ERG AS OF TODAY: A SOLID PLATFORM PIVOTED ON FUTURE GROWTH

Total installed Capacity

Wind, Solar & Storage Pipeline

Wind

12% 9% 2%

19% 2,747 10%

MW

48%

3,117MW

Solar

21%

370

47% MW

32%

3029%

Wind Farm in operation

Wind Pipeline

Solar Plant in operation

Solar Pipeline

(1)	70	178
MW

MW

(2)	102
MW

448

MW

79 MW

117(3)

MW

1,272

(3)MW

180

MW

522

MW

62

MW

66	288
MW	142
MW
	MW

327

MW

175

MW

272

MW

1,321(2) 964 MW MW

70 MW

54 MW

Storage Italy

Storage Europe

Wind Pipeline

Solar Pipeline

Under construction

~3,700MW

9%

29% 628

MW

62%

46% 102

MW

54%

19%

354

MW

81%

19%

1,186(4)

23% MW58%

1,272

MW

100%

43%

150 MW 57%

1. It refers to Poland, Romania and Bulgaria
2. It includes additional capacity for Monreale-Partinico (26MW) and Camporeale (30MW) wind farms after completion of repowering operations, respectively on June 14, 2023 and September 29, 2023

(3)	It includes Fregenal photovoltaic plant (25MW), commissioned at closing date on June 30, 2023	4
(4)	Repowering is on a gross basis

A SOLID FINANCIAL STRUCTURE

Gross debt at 30/06/2023

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

Corporate Loans	9%
Green Bonds	16%

Project Finance

~€2.1

bn

Fully hedged and not

exposed to market

volatility76%

Sustainable vs Traditional Finance

9%

Sustainable Sources	~€2.1
Traditional Sources	bn

Issuer Default Rating:

BBB- Stable

"ERG's 'BBB-' IDR affirmation reflects visible cash flow generation from its largely long-term incentivised and contracted clean-energy production, its progressive diversification in mature EU markets, including UK, and solar technology...."

~1.5 ~2.1

New Corporate Loans signed in 1H23 at very competitive cost thanks to pre-hedge

1.1

~0.5 ~0.03

	~0.01	~0.02
Liquidity	2H 2023	2024	2025	2026	>2026	Total
Undrawn committed RCF	Corporate Loans	Green Bonds

91%

Liquidity

Project Finance

One of the most solid balance sheet among peers with limited refinancing needs until 2025 5

DELIVERING ON OUR STRATEGY

ASSET ROTATION TO ACCELERATE ERG'S WAY TO NET ZERO

Transaction Overview

• Agreement with Achernar Assets AG, a swiss private investor backed by two prestigious Italian family, for the sale of the CCGT
• EV: €191.5mn (including earn-outs and permitted leakages up to €205.5mn)
• Closed on October 17, 2023 following completion of golden power procedure

Rationale

• Completing our transformation to a "Pure RES Player"
• Crucial step towards achieving the 'net zero' target
• Buyer's commitment in maintaining important protection clauses for 144 people involved in the management of the plant

CCGT divestment crucial to achieve 'Net Zero' Target

Carbon Index % [g CO2 e/KWh] (Scope 1+2+3)

					Carbon Index with CCGT
100%					Carbon Index with CCGT exit@2023
				BP case @2023+
(Δ vs	90%
Base year)
(-10%)
					-72%
		10%			-96%
		(-90%)
					5%	1%
					(-95%)
					(-99%)
2020	2022	2023		2027	2040
(Base year)		Asset Rotation	SBTi Near	SBTi Long
		CCGT	Term Target(1)	Term Target(2)

NET ZERO target approved by SBTI, ranking ERG among the top 15 Companies worldwide

(1) By 2027 (from a 2020 base year), ERG commits to reduce: scope 1 and 2 GHG emissions by 72% per MWh; scope 1 and 3 GHG emissions from all sold electricity by 70.4% per MWh.

7

1. By 2040 (from a 2020 base year), ERG commits to reduce: scope 1 and 2 GHG emissions by 94.8% per MWh; Scope 1 and 3 GHG emissions from all sold electricity by 95.3% per MWh.

INSTALLED CAPACITY EVOLUTION TO DATE

				Net capacity = +369MW
	Solar				✓		✓ 149 (36) 3,313
	Wind		✓	✓
✓Already in operation
			42	50	47	25
			92
		2,944
526

309	2,418	Gross capacity = +405MW

2,109

		Creag	Partinico	Camporeale	Greenfield	Fregenal Garnacha	Dismantled Expected
2020	2021	2022 Riabhach	Monreale	repowered	WTGs	2023
			repowered

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

8

A FOCUS ON REPOWERING

AND ON SICILY

OUR REPOWERING PROJECTS IN ITALY ARE GAINING VISIBILITY

N. WTG

0.5X

MW	2.0X ÷ 2.5X

AVG. PRODUCTION 3.0X

	200m
180m	81m
68m	125m
	45m

76m

26m

Repowering «kW»

Repowering «multiMW»

RPW: Capacity (MW)

RPW: Production (GWh)

	438		850					1,305
412					728
			~200		Under construction
			~100
		//		In operation(1)			//
RPW as-is	RPW	RPW to be			RPW as-is	RPW
2022-26 BP Update	differential		2022-26 BP Update			2022-26 BP update	differential

2,033

Under construction

In operation(1)

RPW to be
2022-26 BP update	10

1. It refers to Partinico-Monreale (42MW) and Camporeale (50MW) wind farms, in operation since June 14 and September 29, 2023 respectively, after completion of repowering activities