ERG Third Quarter 2013 Results

THIRD QUARTER 2013 RESULTS13 NOVEMBER 2013

LUCA BETTONTE, CEO

2

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.

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AGENDA

3Q 2013 Highlights✓ Key Figures✓ Recent Developments

Results Review✓ Business Environment✓ 3Q 2013 Group EBITDA✓ Results by Segments

Key Financials✓ Profit & Loss✓ Investments ✓ Cash Flow Statement

2013 Guidance and ConclusionsAppendix

4

RC Ebitda Adj (€mn)

HIGHLIGHTS: KEY FIGURES

27%

44%

Leverage

RC Net Profit (€ mn)

Strong Renewables and Power, weak R&M

POWER & GAS

RENEWABLES

REFINING & MARKETING

CORPORATE

722

1,565

030/09/2013

DERIVATIVESNFP EXCL. DERIVATIVES1,398

(1) Adjusted Net Financial Position does not include NFP of ISAB Srl

167

638

84

31/12/2012

(1)

330

437

0

239

100

10(19)

2624(5)

9M 20123Q 2013

9M 2013 3Q 2012

125 143

275

186

(22)(2)

80100

3613(6)

9M 20123Q 2013

3

0

36

12 11

9M 2013 3Q 2012

Highlights

5

RECENT DEVELOPMENTS

• Gebeleisis wind farm (70MW) in Romania consolidated as of July 1, 2013

• On September 5, 2013: closing for Hrabrovo wind farm (14MW) in Bulgaria (EV: €17.6mn)

• On October 31, 2013: closing for acquisition of ERG Wind O&M activities (EV: €10mn)

• On October 9, 2013 ERG approved the exercise of the PUT option on the remaining 20% of ISAB Refinery

• Asset value: €400mn excluding inventories

• Closing expected by end of 2013

Refining

Highlights

Renewables

Further step in geographical diversification and integration of O&M activities to manage wind farms

Invested capital reallocated towards less volatile sectors with visible cash flows

6

RESULTS REVIEW

FINANCE DIRECTOR

PAOLO MERLI

FRANCE ITALY BULGARIA GERMANY ROMANIA(1)

7

BUSINESS ENVIRONMENT

3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013

ITALIAN PRICE ZONAL PRICE SICILY CIP6

Electricity Prices (€/Mwh)

119116

105103

82

66

3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013

EMC Margin ($/bbl)

2.29

(3.45)

3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013

Industry Retail Fuels Volumes (M tons)

6.13

5.89

Results Review

3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013

Renewables: Electricity Prices (€/Mwh)159

155

8990

96 96

(1) Italian price is theoretical price based on National Average Electricity Price (PUN) + GC(2) Price in Romania is based on ERG Renew average price which includes two GCs. Second GC will be cashed in from 2018 onwards

95

9495

(2)

8

1,292

3Q 2012

0

12510

(11)20(1)

Power & GasRenewables Refining & Marketing Corporate 3Q 2013

143

3Q 2013 GROUP EBITDA

Ebitda growth driven by Renewables and Power

Results Review

9

RC Ebitda (€ mn)

RENEWABLES RESULTS

1,809

243

Volumes (Gwh)

Strong growth driven by ERG Wind

100

26

4

170

0

0

Results Review

3Q 2012

9M 2012

5

23

(1) LUKERG: ERG ‘s stake = 50% in Bulgaria and Romania

60

7

94

585

ERG Wind

14

870ERG Wind

3Q 2013

409

20

873

84

9M 2013

779

1,561

211330

170ERG Wind

3Q 2012

9M 2012

3Q 2013

9M 2013

186

36

25 31

11

2

ERG Wind

92

0.6

0.6

ITALY FRANCE LUKERG(1)GERMANY

9

9

32

103

27

2

10

RC Ebitda (€ mn)

POWER RESULTS

Volumes (Gwh)

Strong figures in Power

Results Review

63 80

16 27

177195

6473

ERG POWERISAB ENERGY

239

100

0

9M 2012

3Q 2012

9M 2013

3Q 2013

275

80

5,231

9M 2012

3Q 2012

0

5,213

1,8341,790

9M 2013

3Q 2013

3,039

2,192

3,219

1,994 1,061

773

1,109

681

115

3 3

31 39

8

18

11

RC Ebitda (€ mn)

MARKETING RESULTS

2Q 2013

EOS TOTALERG

Market Share (%)

Q3 improved despite a still tough environment

3Q 2012 4Q 2012 1Q 2013

10.1%11.2%

1.0% 0.8%

Results Review

RC Ebitda (€ mn)

4442

0

3Q 2013

EOSTOTALERG

9M 20123Q 20129M 2013

3Q 2013

20

11

12

RC Ebitda (€ mn)

REFINING RESULTS: COASTAL AND INLAND

3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013

Margins ($/bbl)

3.00

4.14

(3.45)

1.82

Volumes(2) (k tons)

Worsened and negative Refining(1) Inland Refining EBITDA includes Logistics(2) Volumes relate to 100% of TOTALERG stake in Rome (100%) and Sarpom (24%)

Results Review

EMC MARGIN

COASTAL REFINING MARGIN

INLAND REFINING MARGIN

0.52

2.29

3,469

1,009 1,153340

3,801

1,668 1,147

640

7,270

2,677

9M 2012 9M 20130

3Q 2012 3Q 2013

2,300

980

INLAND REFININGCOASTAL REFINING

(32)

(47)

(10)

(37)

9

5

0

9M 20123Q 2012

9M 20133Q 2013

0.3

(32)

2

(9)

13

(7)

(1)

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KEY FINANCIALS

14

PRO-FORMA REPLACEMENT COST P&L

Note: figures based on NO GAAP measures

Key Financials

9M 2013 9M 2012 Euro millions 3Q 2013 3Q 2012

437 330 RC Adjusted EBITDA 143 125

(215) (184) Amortization and depreciation (72) (61)

221 146 RC Adjusted EBIT 71 64

(64) (51) Net financial income (expenses) (17) (15)

4 (1) Net income (loss) from equity investments 1 (1)

161 94 RC Results before taxes 55 47

(82) (54) Income taxes (28) (22)

79 40 RC Results for the period 27 26

(43) (38) Minority interests (17) (14)

36 3 RC Net profit 11 12

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ADJUSTED INVESTMENTS

(1) Renewables adjusted for LUKERG Renew (50%). (2) R&M adjusted for TOTALERG (51%). It does not include ISAB Srl as of September 2012(3) It includes investment for the acquisition of Tcherga (ca. €26mn)(4) It includes investment for the acquisition of Gebeleisis (ca. €55mn) and Hrabrovo (ca. €9mn)(5) It includes investment for the acquisition of Hrabrovo (ca. €9mn)

Key Financials

CORPORATEREFINING & MARKETINGRENEWABLESPOWER & GAS

(2)(1)

3827

13 10

54

119

7

45

20

15

9

5

CORPORATEREFINING & MARKETINGRENEWABLESPOWER & GAS

113

29

9M 20123Q 2012

(€ mn)

0

9M 20133Q 2013

162

60

0.7 1 0.2 0.3

(3)

(5)

(4)

16

1,510

27%

44%

39%

Adj. Net Debt

31/12/2012

Cash Flowfrom operation

WorkingCapital

CAPEX Financial Charges

Adj. Net Debt

30/09/2013

NFP 51% TotalErg and

50% LUKERG Renew

Net Debt30/09/2013reported

Leverage

9M 2013 ADJUSTED CASH FLOW STATEMENT

(276)

0

Taxesand Other

800

Dividends ERG Wind Acquisition

(373)

1,799

722

132

64

68

Gebeleisis & Hrabrovo

Acquisition

1,565

1,289

98

(6)63

722

Eolo Disposal

(4)

Key Financials

17

2013 GUIDANCE AND CONCLUSIONS

CEO

LUCA BETTONTE

18

437

9M 2013

2013 GUIDANCE AND CONCLUSIONS

2013 FCST

162

2013 FCST(2)

9M 2013 2013 FCST(3)

LIQUIDITY PF OTHER AT MLT

1,565 ≈1,300

EBITDA:

CAPEX:

NFP:

Strong growth consistent with new business model

RENEWABLES CORPORATER&MP&G

0

0

0

✓Economic guidance confirmed after 9M results

✓FY Capex guidance confirmed

✓For 3M focus will be in Renewables: advancement in Romania

and in Palazzo San Gervasio wind farm construction

✓Guidance confirmed

9M 2013(1)

≈220

(1) It does not include 20% ISAB investments (ca. €16mn); it includes €55mn for Gebeleisis in Romania, and €9mn for Hrabrovo in Bulgaria (2) It includes M&A investments in Renewables: €55mn for Gebeleisis in Romania, €9mn for Hrabrovo in Bulgaria and €10mn for ERG Wind O&M activities (3) It assumes closing of put on ISAB refinery within 31.12.2013

>500

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APPENDIX

20

1,292

9M 2012

0

330

8636 (13)

(3)

Power & GasRenewables Refining & Marketing Corporate 9M 2013

437

9M 2013 GROUP EBITDA

Ebitda growth driven by Renewables and improvement in R&M

Appendix

9

21

1,28943%

44%

39%

Adj. Net Debt

30/06/2013

Cash Flowfrom operation

WorkingCapital

CAPEX Financial Charges

Adj. Net Debt

30/09/2013

NFP 51% TotalErg and

50% LUKERG Renew

Net Debt30/09/2013reported

Leverage

3Q 2013 ADJUSTED CASH FLOW STATEMENT

(276)

0

Taxesand Other

141

Eolo Disposal

(121)

1,565

1,462

51

Hrabrovo Acquisition

1,462

1,233

17 (6) 11

Appendix

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3Q AND 9M 2013 RESULTS

Appendix


7,525 9,811 Adjusted Revenues 2,762 3,184

437 330 RC EBITDA Adjusted 143 125

186 100 - Renewables 36 26

275 239 - Power & Gas 100 80

(2) 10 - Refining & Marketing 13 24

(22) (19) - Corporate (6) (5)

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9M 2013 9M 2012 3Q 2013 3Q 2012

1,265 572 Installed capacity (end-period, MW) 1,265 572

of which:

1,053 487 - Italy 1,053 487

86 n.a. - Germany 86 n.a.

64 64 - France 64 64

27 20 - Bulgaria (1) 27 20

35 n.a. - Romania (1) 35 n.a.

1,809 873 Electricity Production (GWh) 409 243

of which:

1,561 779 - Italy 330 211

103 n.a. - Germany 27 n.a.

84 85 - France 20 23

40 9 - Bulgaria (1) 12 9

21 n.a. - Romania (1) 21 n.a.

RENEWABLES: KEY FIGURES (1/2)

Appendix(1) ERG ‘s stake = 50%

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RC EBITDA:

170 94 Italy 31 25

7 n.a. Germany 2 n.a.

5 5 France 1 1

4 1 LUKERG (1) 2 1

of which:

3 1 - Bulgaria (1) 1 1

1 n.a. - Romania (1) 1 n.a.

186 100 Total RC EBITDA 36 26

(94) (48) Depreciation (31) (17)

92 52 RC EBIT 5 10

Appendix(1) ERG ‘s stake = 50%

RENEWABLES: KEY FIGURES (2/2)

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ISAB ENERGY: KEY FIGURES

Appendix

9M 2013 9M 2012 3Q 2013 3Q 2012

3,219 3,039 Sales (Gwh) 1,109 1,061

481 468 Sales (€ mn) 169 166

195 177 RC EBITDA (Eu mn) 73 64

158 140 RC EBIT (Eu mn) 61 52

92% 88% Net capacity utilization (%) 95% 91%

116 119 CIP6 tariffs (Eu/MWh) 116 119

128 106 EBITDA IT GAAP (Eu mn) 49 41

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ERG POWER: KEY FIGURES

Appendix


1,994 2,192 Electricity Production (GWh) 681 773

80 63 RC EBITDA 27 16

(21) (20) Depreciation (7) (7)

59 43 RC EBIT 20 9

27

INTEGRATED DOWNSTREAM: KEY FIGURES(1)

Appendix

(1) Figures include 51% stake inTOTALERG and 100% EOS(2) Estimated market share referring to 100% of TOTALERG


34 42 Adjusted RC EBITDA 23 19

44 42 - Marketing 20 10

(10) 0 - Inland refining and logistics 2 9

(44) (46) Adjusted Depreciation (15) (15)

(10) (4) Adjusted RC EBIT 8 4

27 25 Investments 10 10

11.3% 10.9% TOTALERG retail market share(2) 11.2% 10.1%

0.9% 1.0% EOS retail market share 0.8% 1.0%

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COASTAL REFINING: KEY FIGURES(1)

Appendix

(1) Figures are adjusted for ERG’s stake in ISAB Srl (40% from January to August 2012, 20% afterwards)(2) Investments do not include 20% ISAB investments


25 86 Gross refining margin 13 41

(37) (32) Adjusted RC EBITDA (9) 5

(17) (32) Adjusted Depreciation (6) (10)

(54) (64) Adjusted RC EBIT (15) (5)

0 14 Investments(2) 0 3