ERG - Third Quarter 2014 Results

THIRD QUARTER 2014 RESULTS13 NOVEMBER 2014

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 2014 Highlights✓ Key Figures

Results Review✓ Business Environment✓ 3Q 2014 Group EBITDA✓ Results by Segments

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

2014 Guidance and ConclusionsAppendix

4

RC Ebitda Adj (€ mn)

HIGHLIGHTS: KEY FIGURESRC Net Profit (€ mn)

Strong bottom line and reduction in NFP

POWER

RENEWABLES

INTEGRATED DOWNSTREAM

CORPORATE

437

275

201

(2) (22)3613(6)

9M 20133Q 2014

9M 2014 3Q 2013

143

183

186

(19)35

35100

5218(5)

9M 20133Q 2014

36

11

9M 2014 3Q 2013

Highlights

Leverage

DERIVATIVES

ADJ. NFP EXCL. DERIVATIVES

34%

26%

640

30/09/2014

446

194

868

147

31/12/2013

1,015

400

100

75

12

Adj NFP (€ mn)

5

RESULTS REVIEW

CFO

PAOLO MERLI

6

BUSINESS ENVIRONMENT

3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014

ITALIAN PRICE ZONAL PRICE SICILY CIP6

Electricity Prices (€/MWh)

116

100103

66

Results Review

3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014

Renewables: Electricity Prices (€/MWh)

155

148

90 91

97 96

(1) Italian price is theoretical price based on National Average Electricity Price (PUN) + GC

94

80

FRANCE ITALY BULGARIA GERMANY ROMANIA(1)

95

50 95

3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014

Industry Retail Fuels Volumes (M tons)

5.935.82

3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014

EMC Margin ($/bbl)

(3.45)

(0.5)

97

7

1,292

3Q 2013

14316

4

(65)

1

Power(1)Renewables Integrated Downstream Corporate 3Q 2014

100

3Q 2014 GROUP EBITDA

Improved results in Renewables

Decrease in Power figures due to ISAB Energy plant disposal

Results Review

(1) ISAB Energy EBITDA in 3Q13 was at €73mn, while in 3Q14 it is at €2mn (related to price adjustements in 1H14 productions)

8

RC Ebitda (€ mn)

RENEWABLES RESULTS

1,809

Volumes (GWh)

5

170

Results Review

4

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

7

ERG Wind

14

870

ERG Wind

409

60

330

27170

ERG Wind

186

36

31

2

ERG Wind

92

ITALY FRANCE LUKERG(1)GERMANY

84

32

103

20

21

1,561

3Q 2013

9M 2013

3Q 2014

9M 2014

3Q 2013

9M 2013

3Q 2014

9M 2014

Higher production both in Italy and abroad

1,948

1,570

187

90102

443

18 5625

542

90

ERG Wind

214

ERG Wind

201

52

6

178

10

8

47

13

1

837

ERG Wind

21

ERG Wind

9

RC Ebitda (€ mn)

POWER RESULTS

Volumes (GWh)

Strong ERG Power results

ISAB Energy plant disposal effective as of July, 1Results Review

80 80

27 33

195

102

73

2

ERG POWERISAB ENERGY

183

100

9M 2013

3Q 2013

9M 2014

3Q 2014

275

35

3,963

9M 2013

3Q 2013

5,213

736

1,790

9M 2014

3Q 2014

2,042

1,921

736

3,219

1,9941,109

681

(10) (6)2 3

5 4

3 2

(2)

35

1318

(37)

(10)

3936

18

15

10

RC Ebitda (€ mn)

INTEGRATED DOWNSTREAM RESULTS

TOTALERG Market Share (%)

Still tough environment in Marketing

11.2%

10.4%

Results Review

RC Ebitda (€ mn)

1Q 20143Q 2013 4Q 2013 2Q 2014 3Q 2014

Refining: processed Volumes(2) (k tons)

1,009 1,071340 389

1,668

640

2,677

980

(1) TOTALERG Refining EBITDA includes Logistics(2) Volumes relate to 100% of TOTALERG stake in Sarpom (24%)

TOTALERG REFININGCOASTAL REFINING

TOTAL INTEGRATED DOWNSTREAMTOTALERG REFININGTOTALERG MARKETINGEOSERG SUPPLY & TRADINGCOASTAL REFINING

(1)

9M 20133Q 2013

9M 20143Q 2014

9M 20133Q 20139M 2014

3Q 2014

389

1,071

0.7

(1.4)

11

KEY FINANCIALS

12

PRO-FORMA REPLACEMENT COST P&L

Note: figures based on NO GAAP measures

Key Financials

9M 2014 9M 2013 Euro millions 3Q 2014 3Q 2013

400 437 RC Adjusted EBITDA 100 143

(182) (215) Amortization and depreciation (52) (72)

218 221 RC Adjusted EBIT 48 71

(60) (64) Net financial income (expenses) (25) (17)

3 4 Net income (loss) from equity investments (0) 1

161 161 RC Results before taxes 23 55

(61) (82) Income taxes (10) (28)

100 79 RC Results for the period 12 27

(25) (43) Minority interests (0) (17)

75 36 RC Net profit 12 11

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ADJUSTED INVESTMENTS

Key Financials

CORPORATEINTEGRATED DOWNSTREAMRENEWABLESPOWER

(2)(1)

27 2310 7

119

2945

16

15

10 5

3

64

9M 20133Q 2013

(€ mn)

9M 20143Q 2014

162

60

1 2

(3)

(4)

(1) Renewables adjusted for LUKERG Renew (50%)(2) Integrated Downstream adjusted for TOTALERG (51%)(3) It includes investment for the acquisition of Gebeleisis (ca. €55mn) and Hrabrovo (ca. €9mn)(4) It includes investment for the acquisition of Hrabrovo (ca. €9mn)

28

0.31

14

41%

26%

18%

Adj. Net Debt

30/06/2014

Cash Flowfrom operation

WorkingCapital

CAPEX Financial Charges

Adj. Net Debt

30/09/2014

NFP 51% TotalErg and

50% LUKERG Renew

Net Debt30/09/2014reported

Leverage

3Q 2014 ADJUSTED CASH FLOW STATEMENT

(253)

Taxesand Other

Key Financials

(100)

387

1,234

18

25

(515)

Cash-in from CIP6

early termination

640

(50) 28

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2014 GUIDANCE AND CONCLUSIONS

CEO

LUCA BETTONTE

16

400

9M 2014

2014 GUIDANCE AND CONCLUSIONS

2014 FCST

64

LIQUIDITY PF OTHER AT MLT

640

RENEWABLES CORPORATEIDPOWER

9M 20142014 FCST

9M 20142014 FCST

EBITDA:

CAPEX:

NFP:

✓Like-for-like growth driven by Renewables and exit from

Coastal Refining

✓Guidance revised downward for optimization in the

Downstream segment

✓CAPEX consistent with 2013-2015 Business Plan

✓New Business Plan under definition

Group’s transformation still ongoing

≈470

≈100

≈700

✓Guidance updated from ≈800 to ≈700

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APPENDIX

18

1,292

9M 2013

43715 (93)

37 4

PowerRenewables Corporate 9M 2014

400

9M 2014 GROUP EBITDA

Appendix

Integrated Downstream

19

640

34%

26%

18%

Adj. Net Debt

31/12/2013

Cash Flowfrom

operation

WorkingCapital

CAPEX Financial Charges

Adj. Net Debt

30/09/2014

NFP 51% TotalErg and

50% LUKERG Renew

Net Debt30/09/2014reported

Leverage

9M 2014 ADJUSTED CASH FLOW STATEMENT

(253)

Capital Increase

Dividends Acquisition 49% IE/IES

(358)

1,799

1,015

143

Disposal IE plant to

ISAB

1,234

1,041

72

153

Appendix

(515)

Dividends to

minorities

Taxesand Other

22

(26)

Cash-in from CIP6

early termination

6460

387

(50) 60

20

9M AND 3Q 2014 RESULTS

Appendix


3,411 7,525 Adjusted Revenues 1,081 2,762

400 437 RC EBITDA Adjusted 100 143

201 186 - Renewables 52 36

183 275 - Power 35 100

35 (2) - Integrated Downstream 18 13

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

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9M 2014 9M 2013 3Q 2014 3Q 2013

1,341 1,265 Installed capacity (end-period, MW) 1,341 1,265

of which:

1,087 1,053 - Italy 1,087 1,053

86 86 - Germany 86 86

64 64 - France 64 64

27 27 - Bulgaria (1) 27 27

77 35 - Romania (1) 77 35

1,948 1,809 Electricity Production (GWh) 542 409

of which:

1,570 1,561 - Italy 443 330

102 103 - Germany 25 27

90 84 - France 18 20

45 40 - Bulgaria (1) 14 12

141 21 - Romania (1) 43 21

RENEWABLES: KEY FIGURES (1/2)

Appendix(1) ERG ‘s stake = 50%

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RC EBITDA:

178 170 Italy 47 31

8 7 Germany 1 2

6 5 France 1 1

10 4 LUKERG (1) 3 2

of which:

3 3 - Bulgaria (1) 1 1

7 1 - Romania (1) 2 1

201 186 Total RC EBITDA 52 36

(97) (94) Depreciation (32) (31)

104 92 RC EBIT 19 5

Appendix(1) ERG ‘s stake = 50%

RENEWABLES: KEY FIGURES (2/2)

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ISAB ENERGY: KEY FIGURES

Appendix

9M 2014 9M 2013 3Q 2014 3Q 2013

2,042 3,219 Sales (GWh) 0 1,109

250 481 Sales (€ mn) 5 169

102 195 RC EBITDA (€ mn) 2 73

77 158 RC EBIT (€ mn) 2 61

100 116 CIP6 tariffs (€/MWh) 100 116

60 128 EBITDA IT GAAP (€ mn) 2 49

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ERG POWER: KEY FIGURES

Appendix


1,921 1,994 Electricity Production (GWh) 736 681

80 80 RC EBITDA 33 27

(22) (21) Depreciation (7) (7)

59 59 RC EBIT 26 20

25

INTEGRATED DOWNSTREAM: KEY FIGURES

Appendix

(1) Estimated market share referring to 100% of TOTALERG


35 (2) Adjusted RC EBITDA 18 13

30 29 - TOTALERG (51%) 17 20

4 5 - ERG Oil Sicilia 2 3

1 n.a. - ERG Supply & Trading (1) n.a.

n.a. (37) - Coastal Refining n.a. (10)

(36) (61) Adjusted Depreciation (12) (20)

(1) (63) Adjusted RC EBIT 6 (7)

23 27 Investments 7 10

10.7% 11.3% TOTALERG retail market share(1) 10.4% 11.2%

26


29 119 Renewables 16 45

10 15 Power 3 5

23 27 Integrated Downstream(3) 7 10

2 1 Corporate 1 0

64 162 Adjusted Total 28 60

INVESTMENTS

(1) It includes investment for the acquisition of Gebeleisis (ca. €55mn)(2) It includes ERG quota of investments made by LUKERG Renew(3) It includes ERG quota of investments made by TOTALERG

(1) (2)

Appendix

(1)