A2A STRATEGIC PLAN 2016 RESULTS & BUSINESS PLAN UPDATE H1 - - PowerPoint PPT Presentation

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A2A STRATEGIC PLAN 2016 RESULTS & BUSINESS PLAN UPDATE H1 - - PowerPoint PPT Presentation

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September 2017 A2A STRATEGIC PLAN 2016 RESULTS & BUSINESS PLAN UPDATE H1 2017 RESULTS 2016 CONSOLIDATED RESULTS 2014-16, HOW WE DID IT STRATEGIC PLAN 2017-2021 H1 2017 RESULTS This document gathers the most relevant slides of

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SLIDE 1

A2A STRATEGIC PLAN

  • 2016 RESULTS & BUSINESS PLAN UPDATE
  • H1 2017 RESULTS

September 2017

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SLIDE 2

2

2016 CONSOLIDATED RESULTS 2014-16, HOW WE DID IT STRATEGIC PLAN 2017-2021 H1 2017 RESULTS

This document gathers the most relevant slides of the following presentations:

  • A2A STRATEGIC PLAN - 2016 RESULTS & BUSINESS PLAN UPDATE
  • A2A H1 2017 CONSOLIDATED RESULTS

The full presentations, together with the conference calls mp3 files, are available on A2A website at the following link: https://www.a2a.eu/en/investors/presentations-conference

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SLIDE 3

3

* Excluding extraordinary items equal to 205 €M in 2015 and 153 €M in 2016

2.8x 2.5x

NFP / EBITDA 2015

73

2016

224

5,093 EBITDA REVENUES GROUP NET INCOME GROUP ORDINARY NET INCOME * NET FINANCIAL POSITION

2015

4,921

2016

5,093

2015

1,048

2016

1,231 +3% +17% +151

2015

278

2016

377 +36%

2015

2,897

2016 Adjusted

2,667

LGH price and NFP at closing

469

2016

3,136

  • 230

+239

FY 2016 vs. FY 2015 Results

2016 Consolidated Results

2014-16, how we did it Strategic plan 2017-2021 Financials H1 2017 Results

€M San Filippo del Mela “Merchant”

+

Retail Regulated Components LGH acquisition Fixed Costs reduction Non-recurring items Positive CCGT Ebitda Energy Scenario San Filippo del Mela “Must Run” Trading portfolio Gas and Electricity allowed revenues

slide-4
SLIDE 4

4

2015

1,048

  • 26

2015 Ordinary

1,022

Waste

25 30

Networks and District Heating

  • 5

19

Smart City

1 11

2016 Ordinary

1,103 128

2016

1,231

2015 Non-recurring Items Energy Retail Generation & trading EPCG and other 2016 Non-recurring Items

+81 +183

€M

FY 2016 vs. FY 2015 Results

Group EBITDA

2016 Consolidated Results

2014-16, how we did it Strategic plan 2017-2021 Financials H1 2017 Results

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SLIDE 5

5 +153 +36%

46 145

  • 38

FY 2016 vs. FY 2015 Results

2016 Consolidated Results

2014-16, how we did it Strategic plan 2017-2021 Financials H1 2017 Results

From Group Net Income to Group Net Ordinary Income

Group Net Income Reported Impairment

  • f assets and

shareholdings Monfalcone write-off Net effect Edipower non- proportional demerger Group Net Ordinary Income 2015 Group Net Ordinary Income 2016

€M From Group EBITDA to Group Net Income

2016 EBITDA D&A Write-off Of Assets Risk Provisions Non-recurr. transactions Net Financial Expenses EBT Net Income Taxes

Net result from discontinued

  • perations

Minorities Equity 1,231

  • 434
  • 256
  • 85

56

  • 4
  • 154

354

  • 117
  • 15

224 2 1,048

  • 404
  • 350
  • 79
  • 1
  • 4
  • 134

76

  • 133

130 73

  • 2015 A
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SLIDE 6

6

BREAKDOWN BY NATURE BREAKDOWN BY BUSINESS

2015 57 133 154

344

2016 48 46 159 171

424

Maintenance Development Mandatory M&A*

2015 59 52 64 129

344

2016 102 61

36

167

424

4 2 27 7 8 6 27 17

Generation & trading Energy retail Waste District heating Networks Corporate Smart city Epcg

+80 +80

€M

*M&A Capex related to LGH not included

FY 2016 vs. FY 2015 Results

CAPEX

2016 Consolidated Results

2014-16, how we did it Strategic plan 2017-2021 Financials H1 2017 Results

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SLIDE 7

7

(1) Funds from operations after change in working capital

€M

FY 2016 vs. FY 2015 Results

Net Free Cash Flow

2016 Consolidated Results

2014-16, how we did it Strategic plan 2017-2021 Financials H1 2017 Results

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SLIDE 8

8

* From the appointment of the new Board of Directors, 17/06/2014, to 28/3/2017

VISION/STRATEGY

Achievements on key R3D points:

RESTRUCTURE

Cost reduction, company simplification, flexibilization, capacity optimization

RELAUNCH

Consistent industrial growth Selective external growth

RESHAPE

Public lighting, smart city, energy efficiency

RESULTS

3 years of growing results exceeding plan 12 quarters with continuous debt reduction Dividend (+50%) and stock price growth (+61%)* 82 €M savings

  • vs. 2014 cost base

RESULTS AND STRATEGIC GOALS DELIVERED

2014-2016, how we did it

2016 Consolidated Results

2014-16, how we did it

Strategic plan 2017-2021 Financials H1 2017 Results

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SLIDE 9

9

DISCIPLINE DIALOGUE DIGITAL

3Rs & 3Ds 2014-2016 achievements

GENERATION & TRADING

  • 20 €M cost savings in

CCGT plants in 2 years

  • Market/seasonal opportunities
  • Leadership in ancillary services
  • Chivasso already best in class,
  • ther plants under way
  • A2A Energiefuture, thermal plant

re-conversion

  • A2A gencogas, single vehicle

for A2A CCGTs

RESHAPE RELAUNCH RESTRUCTURE

ENVIRONMENT +8% waste treated (2,800 ktons in 2016) +26% inhabitants served (3.4 M in 2016) ENERGY RETAIL +117% free market customers (694,000 POD in 2016) NETWORKS & HEAT +13% District Heating network expansion in Milan (299 km in 2016) Selective external growth 9 deals completed in 2 years

  • industrial partnership (51%) signed with LGH
  • +50% of DPS increase

in three years

  • FFO/Debt, key rating indicator,

improved up to 24%

  • Implementation of Enterprise Risk

Management structure

  • 15 Lean Thinking pilot projects
  • A2A's first sustainability plan

& integrated report

  • 4 multi-stakeholder forum and territorial

sustainability reports

  • People and organization:

Smart working, Organizational Compass Project, Futura2a, ABC Project, Melograno, ...

  • New digital platform for customer base
  • Digitalization of networks processes

(WFM, IDMS, …)

  • Digitalization of CCGT Chivasso plant
  • New solar thermodynamic plant at San

Filippo del Mela site PUBLIC LIGHTING +125% LED relamping (196k lighting points in 2016) ENERGY EFFICIENCY 1st Italian independent ESCo acquired (Consul System) SMART CITY A2A Smart City company: set-up completed and first pilot projects E-MOBILITY 1st Italian Fast Charge public network (90k recharges in 2016)

completed

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SLIDE 10

10

STRATEGIC PLAN 2017-2021

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SLIDE 11

11

STRATEGY UPDATE REGENERATION RESHAPE

Active role in the energy market transformation Flexible fleet to serve shortening EU markets Re-alignment with EU Winter Package Development by adjacencies Buying options in smart city and green economy From pilot projects to market solutions

RELAUNCH

Growth in environment, smart networks and energy services Focus on low-risk businesses

FOCUS TRANSFORM ACCELERATE

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SLIDE 12

12

ASSET DEVELOPMENT Additional investments (+600 €M vs. previous plan) in core, growing, low-risk businesses REGULATED BUSINESS WASTE TREATMENT DEVELOPMENT COST REDUCTION EFFICIENCY AND OPTIMIZATION En&A project on track and launch of a new operational excellence program MARKET GROWTH Consistent growth in retail, waste collection and DH ORGANIC DEVELOPMENT M&A AND SYNERGIES Prudent M&A targets Conservative targeted synergies

Relaunch

2016 Consolidated Results 2014-16, how we did it

Strategic plan 2017-2021

Relaunch Re-generation Reshape Financials H1 2017 Results

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SLIDE 13

13

(1) Including M&A and gas distribution tenders

20 40 60 80 100%

+50% CAPEX per year vs. average 2014-2016(1) Almost 90% CAPEX in regulated/quasi-regulated markets ~70% of net invested capital in 2021 related to Regulated/ Quasi-Regulated assets

€M

Regulated business

Higher Capex in regulated/quasi-regulated

Strategic plan 2017-2021

Relaunch Re-generation Reshape Asset Development

Market Growth Cost reduction 40% CAPEX

in sustainability

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SLIDE 14

14

Increase in Gas and Electricity distribution RAB Gas and Electricity distribution tariffs stable over the period 2017–2021 Water distribution tariffs increase by 8.5% YoY according to Regulatory Framework 2016-2019

€B

Regulated business

RAB increase

Strategic plan 2017-2021

Relaunch Re-generation Reshape Asset Development

Market Growth Cost reduction EE & GAS RAB 2017 EE & GAS RAB 2021

2.0 1.8

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SLIDE 15

15

Limited volume risk, mostly internal waste flows integration Focus on A2A industrial sites in Northern Italy

* LGH, Rieco, Bedizzole full year contribution; public tenders excluded

860 Ktons/year

waste material recycling

Ktons treated

Waste treatment development

Strategic plan 2017-2021

Relaunch Re-generation Reshape Asset Development

Market Growth Cost reduction

2014 2015 TARGET 2015 ACTUAL 2016 TARGET 2016 ACTUAL FULL YEAR CONSOLI- DATION* NEW PLANTS 2021 2,594 2,626 2,558 2,634 2,800 687 500 155 4,249

Authorized/ authorizations in progress Authorizations to be requested

ACHIEVABLE TARGET ACHIEVED EXISTING PLANTS UPGRADE 107

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SLIDE 16

16

Note: Includes LGH

2021 target consistent with 2014-16 average organic growth

67% avg. sorted collection

M inhabitants

Organic development

Waste collection

Strategic plan 2017-2021

Relaunch Re-generation Reshape Market Growth

Cost reduction

2014 2015 TARGET 2015 ACTUAL 2016 TARGET 2016 ACTUAL 2021 BP 2.70 2.81 2.80 2.90 3.38 3.94

~ +100K inhab./year ~ +300K inhab./year

ACHIEVABLE TARGET ACHIEVED

slide-17
SLIDE 17

17

Growth planned in core geographical areas Free market customer base in 2019 4x vs. 2014

Note: Includes LGH * Free market **Electricity mass market

Organic development

Energy and gas retail

Strategic plan 2017-2021

Relaunch Re-generation Reshape Market Growth

Cost reduction

2014 2015 TARGET 2015 ACTUAL 2016 TARGET 2016 ACTUAL 2021 TARGET 320 419 444 577 694 1,438

~ +180K POD/year

90% EE customers

with green energy sold** POD* ‘000 ACHIEVABLE TARGET ACHIEVED

~ +150K POD/year

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SLIDE 18

18

>60% of M&A contribution to business plan already completed Only new M&A deals in advanced stage included

M&A and synergies

M&A

Strategic plan 2017-2021

Relaunch Re-generation Reshape Market Growth

Cost reduction

Note: LGH not included

2016 EBITDA OF ALREADY CLOSED DEALS ALREADY CLOSED DEALS FULL POTENTIAL NEW M&A DEALS UNDER NEGOTIATION SYNERGIES TOTAL INCREMENTAL EBITDA

2 4 15 10 31

SYNERGIES ENERGY EFFICIENCY NETWORKS WASTE ACHIEVABLE TARGET ACHIEVED EBITDA €M

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SLIDE 19

19

EBITDA synergies 12 €M (~16% of 2016 LGH EBITDA) Further savings under assessment

€M

M&A and synergies

LGH synergies

Strategic plan 2017-2021

Relaunch Re-generation Reshape Market Growth

Cost reduction EBITDA SAVINGS FINANCIAL SAVINGS CAPEX SAVINGS TOTAL SAVINGS @2020

12 7 2 21

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SLIDE 20

20 EBITDA €M

Lean and 6 sigma initiatives, Business Process Modeling Change management Creation of an internal competence center devoted to continuous performance improvement Plan impacts not included in the business plan (additional projects)

2017 NEW OPERATIONAL EXCELLENCE PROGRAM

EN&A

2015-2021

Operating efficiency continuous journey

Cost reduction

Market Growth

12

2016 2021

82

+108

LGH A2A 178 12

190

Strategic plan 2017-2021

Relaunch Re-generation Reshape

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SLIDE 21

21

Traditional thermal plant reconversions Organic and inorganic growth in RES and in new market opportunities VALUE FROM DIVERSIFICATION 5-year SFM plant must-run Hydro and baseload stable production MEDIUM TERM STABILITY ACTIVE MANAGEMENT OF CCGT GROWING OPTIONS RES/DERs NEW SOURCES OF GROWTH

Re-generation

2016 Consolidated Results 2014-16, how we did it

Strategic plan 2017-2021

Relaunch Re-generation Reshape Financials H1 2017 Results Short-term market opportunities Additional medium-term market space from European trends Capacity market and generation margins upside Possible moderate addressable demand increase

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SLIDE 22

22 '13 532 '14 500 '15 469 '16 494 Avg. 13-16 499 Avg. 17-21 459

33

  • 40

1

  • 30
  • 5

Delta vs. avg. 7%

  • 8%

0%

  • 6%
  • 1%

Delta % vs. avg. Thermal Hydro incentives Hydro market

PLANTS CONTRIBUTION MARGIN DELTA

  • vs. 13-16 AVG.

Historical ‘13- ‘16 volatility maximum +/-7% Natural hedging between hydro and thermal €M

33 33

Value from diversification

Strategic plan 2017-2021

Relaunch Re-generation Reshape Value from diversification

Medium-term stability Active mgmt of CCGT RES/DERs sources of growth

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SLIDE 23

23 14 15 16 17 18 19 20 21 49 2,9 14 15 16 17 18 19 20 21 14 15 16 17 18 19 20 21 55

Conservative scenario assumptions, lower than previous plan

14 15 16 17 18 19 20 21 12,2

Clean spark spread Clean dark spread PUN Baseload PUN Peak Load

16-20 BP 17-21 BP

€/ MWh

Medium-term stability

Strategic plan 2017-2021

Relaunch Re-generation Reshape

Medium-term stability Active mgmt of CCGT RES/DERs sources of growth

2.9 12.2

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SLIDE 24

24

  • Pl. 1

63%

  • Pl. 2

57%

  • Pl. 3

45%

  • Pl. 4

42%

  • Pl. 5

42%

  • Pl. 6

32% A2A 25%

  • Pl. 7

17% 3.1 0.8 3.1 0.8 1.1 2.2 0.8 0.8 GW

Slow growth in market demand

  • 30 baseload GW in Europe by ’21*

New RES not covering entire additional net demand A2A CCGTs positioned to catch market

  • pportunities

GROWING MARKET SPACE FOR A2A CCGTs CAPACITY MARKET REVIEWED CONSERVATIVELY

* A2A elaboration based on GER, FRA, SPA, UK, SWI, BEL, AUT nuke/coal phase-out plans ** MGP load factor of Northern zone CCGTs in peak hours (2016)

K€/ MW LF

%**

Active management

  • f CCGT growing
  • ptions

Capacity market and growing market space

Strategic plan 2017-2021

Relaunch Re-generation Reshape Active mgmt of CCGT

RES/DERs sources of growth

2 YEARS AGO FCST

23.5 15.7 13.3

1 YEARS AGO FCST TODAY’S FCST

START-UP

2017 2018 2018

Average on A2A total generation portfolio

Capacity auctions expected to set premium in a 18-20 k€ range

slide-25
SLIDE 25

25

0.8 2.3 2.0 1.9 0.5 1.0

2021

0.8 3.6 1.9 0.5 1.0

Today

8.4 7.6

Must-run Baseload RES Flexible CCGT Standard CCGT Demothballed (TSO request) Mothballing Shut down/sold

Must run, baseload and hydro stable ~4 GW CCGTs running, 90% of which planned to be flexible

A2A CAPACITY

GW

Active management

  • f CCGT growing
  • ptions

A2A installed capacity evolution

Strategic plan 2017-2021

Relaunch Re-generation Reshape Active mgmt of CCGT

RES/DERs sources of growth

slide-26
SLIDE 26

26 THERMAL PLANTS RE- CONVERSION

Evolution into “integrated renewable poles” Projects design in SFM, BR and Monfalcone Solutions for environment/renewable synergies Exploration of potential inorganic growth in PV/Wind Potential new greenfield/brownfield developments

New developments as additional projects

DEVELOPMENT ON A2A SITES RES

PV development in Group industrial sites (SEU/SSP) Hydro developments in Calabria

MARKET DEVELOPMENT RES M&A and GREENFIELD/ BROWNFIELD

Storage systems development Demand Response Management System Innovative distributed energy services

DISTRIBUTED ENERGY RESOURCES

RES/DERs new sources of growth

Strategic plan 2017-2021

Relaunch Re-generation Reshape RES/DERs sources of growth

slide-27
SLIDE 27

27

SMART CITY Strong pipeline of business development agreements A2A SMART CITY MOBILITY SOLUTIONS Catching the key trends in the mobility evolution: green, shared and connected ENERGY EFFICIENCY Higher targets also thanks to selective M&A deals already

  • ngoing

PUBLIC LIGHTING ESCo PROJECTS New M&A deals in pipeline

Reshape

2016 Consolidated Results 2014-16, how we did it

Strategic plan 2017-2021

Relaunch Re-generation Reshape Financials H1 2017 Results

slide-28
SLIDE 28

28 E.E. Certificates (TEE)

LED relamping almost completed Growth achieved with a mix of organic growth and selective M&A

Energy Efficiency

Analysis of M&A

  • pportunities

in complementary segments

Palazzo della Loggia Brescia

REGULATED /QUASI-REGULATED FREE MARKET

Lighting points

District cooling plants

Led public lighting and ESCo projects

Strategic plan 2017-2021

Relaunch Re-generation Reshape

Energy Efficiency

~2x 209 418 2016 2021 196

OTHER LED

Consultancy TEE Energy consumption analysis Industrial Design & installation Monitoring Combined Heat & Power EPC Horizon 2020 projects, Demand Side Management & Demand Response Metering

slide-29
SLIDE 29

29

DISCIPLINE DIALOGUE DIGITAL

Operational excellence project adoption Further deleveraging, with higher Capex and DPS Dividend target of 7.5 €cent in 2019 confirmed Extension

  • f multi-stakeholder forum and

territorial sustainability reports Sustainability target in management MBO People: ageing policy, welfare, managerial development, talent management, employer branding Further Business Units process digitalization New HR ERP Strong fiber development New IT and digital services to municipality Strong investments in automation

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SLIDE 30

30

30 actions by 2020

Piano Industriale 2015-2019 Piano di Sostenibilità 2014

GOALS and TARGETS 2030 ACTION and ENABLING DRIVERS - 2020

2030 10/17 goals The sustainability policy and the 2030 commitments

SDG vs. VALUE CHAIN

CIRCULAR ECONOMY DECARBONIZATION SMART GRID AND SERVICES PEOPLE INNOVATION

OUR

2030

PATH

FROM TO

2016 Consolidated Results 2014-16, how we did it Strategic plan 2017-2021

People & Sustainability

Financials H1 2017 Results

A2A 2030 sustainability policy

Develop a sustainable waste management approach for the entire life cycle Contribute to the achievement of the national and European

  • bjectives to reduce

GHG emissions Increase the reliability of grids and services by increasing the investments in technological innovation Actively contributing to community welfare and improved working conditions

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SLIDE 31

31

CIRCULAR ECONOMY DECARBONIZATION SMART GRID AND SERVICES PEOPLE INNOVATION

2016 results 2020 goals

99.0% 67.0% 80.0% 56.2% 84% 98.86%

Urban waste sent for recycling or energy recovery Separated waste collection in the communities served Impact of the recovery capacity of the material in the Group's plants on the urban waste collected

392.5

  • 234

1,260

Carbon intensity in electricity generation (gCO2/kWh) CO2 avoided thanks to the extension of the district heating network (ktonnes/year) Green electricity sold (GWh)

417 769

  • 161

The CSI Total in “multi-client of reference” surveys (CERVED DataBank) with a value never below

90%

customers with online A2A Energia services

400,000

Million euro invested in the Smart City area

10 268,818 1.9 92.4%

regional workshops with 30 actions to be implemented inspections/year at the roadwork sites of the A2A Group Target employees involved in Smart Working projects

15 4,000 20% 2 workshop

(11 actions)

1,406 5%

A2A 2020 sustainability plan goals

2016 Consolidated Results 2014-16, how we did it Strategic plan 2017-2021

People & Sustainability

Financials H1 2017 Results

2020 goal already achieved

slide-32
SLIDE 32

32 1,103

Waste 31 15 Networks & District Heating 46

  • 88

Smart City 2

  • 3

2017 Ordinary

1,106 29

2017 2016 Ordinary

Energy retail Generation & Trading EPCG &

  • ther

Non Recurring Items

1,135* 1,120 – 1,150 ~300 ~0 – 100 EBITDA 2017F NET INCOME CAPEX CASH FLOW ~550 – 600

1,120 – 1,150

~ +3%

€M

EBITDA

2016 – 2017

2016 Consolidated Results 2014-16, how we did it Strategic plan 2017-2021

Financials

H1 2017 Results

1,165 – 1,185 EBITDA NEW 2017 OUTLOOK, REVISED UPWARD AFTER Q1’17 RESULTS AND CONFIRMED AFTER H1’17 CASH FLOW ~100

* Central value of the range 1,120 €M – 1,150 €M considered as the reference value for EBITDA 2017. The range was revised upward to 1,165 €M – 1,185 €M after H1’17 Results presentation (for further information go to slide 64): one-

  • ffs amount to 60 €M.
slide-33
SLIDE 33

33

1,135* 1,380 1,380

66 422 263 141 268 78 51 34 34 6 31 12 97 457 341 192 301 22% 13% 2017

WASTE ENERGY RETAIL NETWORKS AND DISTRICT HEATING GENERATION & TRADING SMART CITY EPCG OTHER

2021 2021

REGULATED / FREE MKT MIX REGULATED QUASI REGULATED MERCHANT LOW VOLATILITY MERCHANT HIGH VOLATILITY OTHER EPCG NETWORKS GENERATION & TRADING WASTE ENERGY RETAIL SMART CITY BY BU BY MIX

+245

  • 34
  • 22

8 14

* New central value of the range, excluding one-offs, is equal to 1,115 €M. ** Moreover, put option on EPCG was exercised last July.

€M

EBITDA

2017 – 2021

30% 35%

2016 Consolidated Results 2014-16, how we did it Strategic plan 2017-2021

Financials

H1 2017 Results

** **

slide-34
SLIDE 34

34

317*

245

  • 48

24 41

  • 80
  • 29

470

EBITDA D&A PROVISIONS NET FINANCIAL EXPENSES TAXES MINORITIES

2017 GROUP NET INCOME 2021 GROUP NET INCOME

+153

€M

Net Income

2017 – 2021

2016 Consolidated Results 2014-16, how we did it Strategic plan 2017-2021

Financials

H1 2017 Results

* This number does not take into account the changes in EBITDA guidance and the exercise of put option on EPCG - more info on slide 63.

slide-35
SLIDE 35

35

M&A DEVELOPMENT MAINTENANCE MANDATORY

2017 - 2021

TOTAL CAPEX

2,750

3% 57% 36% 5% 2017 - 2021

TOTAL CAPEX

2,750

9% 47% 25% 8% 6% 1% 2%

GEN. & TRADING RETAIL WASTE DISTRICT HEATING NETWORKS CORPORATE EPCG*

1%

SMART CITY

2017 - 2021

TOTAL CAPEX

2,750

12% 34% 1% 53%

MERCHANT MERCHANT LOW VOLATILITY QUASI REGULATED REGULATED

€M

CAPEX

2017 – 2021

2016 Consolidated Results 2014-16, how we did it Strategic plan 2017-2021

Financials

H1 2017 Results

* Please note, put option on EPCG was exercised last July.

slide-36
SLIDE 36

36

NFP 2016

3.1

Ebitda

  • 6.3

Change in NWC & other asset/liab.

0.3

Use of Funds

0.2

Tax

1.0

Net Financial Expenses

0.5

CAPEX

2.8

Dividends & Other

0.9

NFP 2021

2.5

2.5x 1.8x * Cash flow waterfall does not take into account the effects of the put option exercised on EPCG – more info on slides 34, 63 ** Inclusive of net write-offs (256 €M). By excluding net write-offs, Return on Investments is equal to 11%

  • 0.6

€B ~7,1%**

RETURN ON INVESTMENTS

~12%

Cash flow generation

2017 – 2021

2016 Consolidated Results 2014-16, how we did it Strategic plan 2017-2021

Financials

H1 2017 Results

*

slide-37
SLIDE 37

37

(1) FFO = Ebitda – provisions for bad debt - net interest expense - current tax expense + dividends received

Debt = gross financial debt net of surplus cash + employee benefits + liabilities for landfills

DPS and FFO/Debt

2017 – 2021

2013 2014 2015 2016 … 2019 2021

A2A DIVIDEND PER SHARE (€c)

3.3 3.6 4.1 4.92 ~ 7.5 Min 60% pay-out ratio

FFO / DEBT 1

17% 18% ~21% ~24% > 25% > 25%

CONFIRMED CONFIRMED

~ +50%

2016 Consolidated Results 2014-16, how we did it Strategic plan 2017-2021

Financials

H1 2017 Results

slide-38
SLIDE 38

38

(1) Electrical connection from road level to user’s individual apartment

LOCAL AGGREGATIONS HEAT TRANSPORTATION BACKBONE CASSANO-MILANO POTENTIAL DEVELOPMENT ABROAD DISTRIBUTED ENERGY RESOURCES (DER) PLANT RECONVERSIONS GAS NETWORKS: FURTHER GROWTH THROUGH GAS TENDER OPERATIONAL EXCELLENCE REHABILITATION OF “COLONNE MONTANTI” (1) EPCG EXIT OPTION

FEASIBILITY

Exercised in July 2017

EBITDA IMPACT 10-20 50-75 10-20 50-60 5-8 5-20 5-10 tbd PROJECT LIST

135- 210

Additional projects

€M

2016 Consolidated Results 2014-16, how we did it Strategic plan 2017-2021

Financials

H1 2017 Results

MoU with “Utilities

  • f Lombardy”

signed in April 2017 «Mistral» project launched in July 2017

slide-39
SLIDE 39

39

Waste, Retail and Networks to lead the growth More options for generation and a more conservative energy scenario Resilience of net income growth to commodity prices Dividend target of 7.5 €cent in 2019 confirmed Positive free cash flow generation with increasing Capex and dividends

Key takeaways

2017 – 2021

NO LONGER A GEN.CO.

Growth mainly driven by non-generation businesses Higher option value from generation assets and Winter Package Strong CAPEX increase in regulated/ quasi-regulated markets Annual investments 50% higher than past three years’ average Further optimization from operational excellence Local aggregations, M&A, RES/DER and other projects to strengthen A2A positioning and to mitigate risk Updated Project Pot

BOOST IN BUSINESSES WITH PROVEN TRACK RECORD ROOM FOR UPSIDES OUR FUTURE IS SUSTAINABLE, GREEN, OPEN, SMART

A2A: what kind of company going forward?

slide-40
SLIDE 40

40 40

ANNEXES

FY 2016 vs. FY 2015 2017B-2021 STRATEGIC PLAN

slide-41
SLIDE 41

41 41

*P&L includes 5 months (August-December 2016) of LGH consolidation

FY 2016 vs FY 2015 RESULTS

CONSOLIDATED RESULTS: P&L*

€M FY 2015 FY 2016 CHANGE %

slide-42
SLIDE 42

42 42 €M

FY 2016 vs FY 2015 RESULTS

CONSOLIDATED RESULTS: BALANCE SHEET

Intangible Assets Shareholdings and Other Non Current Financial Assets Other Non Current Assets/Liabilities Deferred Tax Assets and Liabilities Provisions for Risks, Charges and Liabilities for landfills Employee Benefits NET FIXED CAPITAL Inventories Trade receivables and other current Assets

FY 2015 FY 2016 Restated

%

Tangible Assets

5,129

Current tax Assets/Liabilities WORKING CAPITAL AND OTHER CURRENT ASSETS/LIABILITIES TOTAL CAPITAL EMPLOYED Equity Net Financial Position TOTAL SOURCES

1,704 80 (82) 341 (671) (365) 6,136 159 2,210 37 278 6,415 3,279 3,136 6,415

Trade payables and other current Liabilities

(2,128)

Non current Assets /Liabilities held for sale

1 5,067 1.2% 1,348 26.4% 80 0.0% (66) 24.2% 308 10.7% (576) (332) 9.9% 5,829 5.3% 184

  • 13.6%

1,652 33.8% 28 32.1% 180 54.4% 6,156 4.2% 3,259 +0.6% 2,897 +8.2% 6,156 +4.2% (1,684) 26.4% 16.5% 147 n.s.

slide-43
SLIDE 43

43 43

(1) FY2015 Hydro production includes 269 GWh related to Asta Cellina (2) Net of intermediated Ipex volumes

(1) (2)

FY 2016 vs FY 2015 RESULTS

VOLUMES

slide-44
SLIDE 44

44 44

UM 2015 2016 2017 2018 2019 2020 2021

Exchange rate €/$ €/$ 1.11 1.11 1.06 1.08 1.11 1.13 1.16 ICE Brent €/bbl 48.4 40.7 54.5 56.5 57.7 61.1 60.3 Coal API 2 €/tonn 51.2 54.0 65.0 60.2 56.8 55.8 54.3 CO2 (EUA ETS) €/tonn 7.7 5.4 5.3 5.6 6.4 7.2 8.0 AEEGSI Gas Tariff (Pfor) €c/mc 22.9 15.6 19.6 18.0 17.3 17.2 17.7 PSV €/MWh 22.0 15.6 19.8 18.5 18.4 18.3 18.2 TTF €/MWh 19.8 14.0 18.1 16.8 16.2 16.1 16.5 PUN Base Load €/MWh 52.3 42.7 46.9 47.6 48.2 49.2 49.2 PUN Peak Load €/MWh 58.7 48.2 50.9 53.6 54.2 55.2 55.2 CCGT Gas Cost (PSV) €/MWh 49.8 37.6 46.8 43.9 43.7 43.5 43.3 Peak Spark Spread €/MWh 8.9 10.5 4.1 9.7 10.5 11.7 11.9 Spark Spread (PSV) €/MWh 2.5 5.1 0.1 3.7 4.5 5.7 5.9 Clean Spark Spread (PSV) €/MWh

  • 0.4

3.1

  • 1.8

1.6 2.1 3.0 2.9 Dark Spread €/MWh 23.3 12.5 13.1 15.8 17.9 19.3 20.0 White Certificates €/Toe 104.2 145.5 130.0 150.0 150.0 150.0 150.0

2017B-2021 STRATEGIC PLAN

SCENARIO AND MAIN ASSUMPTIONS

slide-45
SLIDE 45

45 45

2016 Ordinary 231 2017 262

Urban waste treatment

72

Other treatment and collection

7 2021 341

* 2016 excluding one-off equal to 9€M and including LGH consolidated only for 5 months ** 2017 excluding one-off equal to 1€M

2016 Ordinary 231 2017 262

Collection

5

Existing treatment plants (price and efficiency)

24

Volumes

  • f new

treatment plants

61

Costs (mainly Labour)

  • 11

2021 341

* ** * **

CAGR +6.8% CAGR +8.1%

Breakdown by BU sub-segment Breakdown by growth driver

2017B-2021 STRATEGIC PLAN

BU ENVIRONMENT

Urban waste treatment Other treatment and collection Collection Existing treatment plants (price and efficiency) Costs (mainly labour) Volumes

  • f new

treatment plants

slide-46
SLIDE 46

46 46

Existing treatment plants

  • Limited volume increase, cost efficiencies and better flow management
  • Full exploitation of 2016 acquisition
  • About +0.5% p.a. of price increases due to Italian lack of availability of

landfills

New treatment plants Business Plan assumptions Driver

  • ~0.7 ktons of growing capacity on new sites, mainly related to organic and

plastic treatment

  • Administrative authorization on 500/700 ktons in progress
  • Plant roll-outs spread through plan timespan
  • Most of economic benefits from internal waste flows integration

2017B-2021 STRATEGIC PLAN

BU ENVIRONMENT – Drivers & Assumptions

slide-47
SLIDE 47

47 47

2016 Ordinary 120 2017 135 Power Market 44 Gas Market 33 Fixed costs

  • 27

Value Added Services 7 2021 192 *2016 excluding one-off equal to 24€M and including LGH consolidated only for 5 months ** 2017 excluding one-off equal to 6€M

* **

CAGR +9.9% CAGR +9.2%

* **

Breakdown by BU sub-segment Breakdown by growth driver

2017B-2021 STRATEGIC PLAN

BU RETAIL

Regulated market

slide-48
SLIDE 48

48 48

Customer Base

  • Free market customer base +150K avg p.a.(1) leveraging upon:
  • Gradual territory expansion
  • SME segment development (new dedicated sales force)
  • Brand equity
  • Proven track record (average past 2 yrs growth +120K. Incl. M&A: +180K)
  • No growth from M&A in the plan

Unitary Margin

  • Expected to reduce ~3% avg p.a. on growing competition(2)

Fixed costs

  • Cost-to-Acquire, per unit, planned to grow ~5% avg p.a. on growing competition
  • Steady Cost-to-Serve, per unit, thanks to strong focus on operating performance

Business Plan Assumptions Driver

(1) Assuming current regulatory and market structure continuity (2) Mass market unitary margin – Residential and small business customers – excluding regulated components

2017B-2021 STRATEGIC PLAN

BU RETAIL – Drivers & assumptions

slide-49
SLIDE 49

49 49

2016 Ordinary 117 124 33 69

354

2017 Ordinary 126 126 40 90 17

399

EE

  • 4

GAS 22 IWC 22 DH 10 PL 8 2021P 148 122 62 100 25

457

.

11

BU NETWORKS & HEATING

2016 Ordinary 285 69 354 2017 Ordinary 309 90 399

Tariffs (Gas/El./Water)

10

Gas tender

30

Public Lighting

8

Commercial Development

9

Energy Efficiency

3

Scenario

  • 2

2021 P 357 100 457

Networks District Heating

* CAGR +6.6% CAGR +5.2% * 2016 excluding one-off equal to 43€M and including LGH consolidated only for 5 months ** 2017 excluding one-off equal to 23€M **

Heating Networks

* **

Breakdown by BU sub- segment Breakdown by growth driver

2017B-2021 STRATEGIC PLAN

slide-50
SLIDE 50

50 50

Gas tenders Public Lighting

  • #PoD: +180k (+12%)
  • RAB: +200€M
  • #ATEMs: 10-15 (target @ 2021)
  • Capex: +320€M
  • Lighting points 2x (over 400K)
  • New Tenders
  • 1 M&A transaction (H2 2017)

Commercial development

  • DH development mainly in eastern Milan area (saturation of Silla 2 WTE plant thermal

capacity)

  • New connections: 44 MW/Yr (vs. 60 MW/Yr average past 3 yrs)

Energy Efficiency

  • Full potential exploitation of 2016 acquisition
  • Synergies between A2A technical skills and Consul System market leadership in “white

certificate” origination

Business Plan Assumptions Driver

2017B-2021 STRATEGIC PLAN

BU NETWORKS & HEATING – Drivers & Assumptions

slide-51
SLIDE 51

51 51

* 2016 excluding one-off equal to 52€M and including LGH consolidated only for 5 months ** 2017 excluding one-off equal to 5€M * ** * CAGR -3% CAGR +2.8% **

Ordinary

Breakdown by BU sub-segment Breakdown by growth driver

2017B-2021 STRATEGIC PLAN

BU GENERATION & TRADING

slide-52
SLIDE 52

52 52

Hydro & Coal

  • Production in line with 10-year average
  • PUN baseload 2021: 49 €/MWh
  • Achieved price vs. PUN BL same as historical average (6 €/MWh)
  • Higher Dark Spread to 12 €/MWh

CCGT plants

  • 2 TWh Increase in MGP production due to:

‒ Expected increase of “thermal” demand of ~10 TWh, to be supplied by CCGT ‒ Best positioned CCGT : ‒ Located in the North ‒ With spare capacity

Capacity & Ancillary Markets

  • MSD in line with average historical margins
  • Capacity market reduced to 13 €K/MW due to elimination of flexibility segment by

EU

Business Plan Assumptions Driver

SFM

  • Contractualized as “must run” up to 2021

2017B-2021 STRATEGIC PLAN

BU GENERATION & TRADING– Drivers & Assumptions

slide-53
SLIDE 53

53 53

H1 2017 CONSOLIDATED RESULTS

slide-54
SLIDE 54

54 54

1H 2016

614

1H 2017

649

1H 2016

2,323

1H 2017

2,918

FY 2016

3,136

1H 2017

3,047

1H 2016

254

1H 2017

157

1H 2016

212

1H 2017

252

REVENUES EBITDA GROUP NET INCOME NET FINANCIAL POSITION

€M

+26%

  • 38%

+6% GROUP ORDINARY NET INCOME* +19%

  • 89€M

* Excluding extraordinary items

1H 2017 HIGHLIGHTS AND KEY FINANCIAL INDICATORS

+

  • Hydro volumes

CCGT performance, MGP and MSD LGH: standalone growth and FY consolidation Non recurring YoY comparison Organic growth in DH, Networks and Waste EPCG put option exercise effects 1st Plastic Treatment Plant in construction ASVT and Patavina Tech acquisitions MoU with “Utilities

  • f Lombardy”

extended to September Project Mistral on

  • perating excellence

Kicked off

With impact on 2017 1H economics

2nd Plastic Treatment Plant construction authorisation granted

slide-55
SLIDE 55

55 55

2016

614

  • 80

2016 Ordinary

534 29 6 22 34 2

  • 23

604 45

2017

649

2016 Non Recurring Items/ redundancy schemes Gener & Trading Energy Retail Waste Networks & District Heating Smart City Corporate EPCG 2017 Ordinary 2017 Non Recurring Items/ redundancy schemes

€M

+35 +70

1H CONSOLIDATED RESULTS

GROUP EBITDA

slide-56
SLIDE 56

56 56

2016

170

2016 Non Recurring Items

  • 14

2016 Ordinary

156

  • 17

27 4 2 3

  • 9

13

LGH

4

2017 Ordinary

185 1

2017

186

Environ. Market Plants' Hedging and Dispatching Trading Portfolio Other Fixed costs SFM EBITDA Gas Margin 2017 Non Recurring Items

+16 +29

1H CONSOLIDATED RESULTS

GENERATION & TRADING EBITDA

€M

  • CCGT performance more than offsetting low hydro production
  • Excellent results on Gas optimization
  • Lower environmental markets margin
slide-57
SLIDE 57

57 57 2016 73

  • 7

2016 Ordinary 66 Power Market

  • 3

Gas Market 2 Fixed Costs

  • 2

Other LGH 9 2017 Ordinary 72 5 2017 77 2016 Non Recurring Items 2017 Non Recurring Items

+4 +6

  • Free market customer base more than 100K
  • Reduction in Unitary Margins mainly due to higher

unbalancing costs (price effect)

1H CONSOLIDATED RESULTS

ENERGY RETAIL EBITDA

€M

slide-58
SLIDE 58

58 58

2016 36 80 119 2016 Non Recurring Items

  • 8

2016 Ordinary 36 72 111 Collection

  • 3

Urban Waste Treatment Plants 5 Other Treatment Plants 3 International Projects LGH 17 2017 Ordinary 17 77 33 133 4 2017 18 80 33 137 2 1 2 1 1 5 2017 Non Recurring Items 1 5

+18

Other Treatment Plants Collection Urban Waste Treatment Plants

+22

  • Positive treatment plants margins thanks to higher

prices and quantities

1H CONSOLIDATED RESULTS

WASTE EBITDA

International Projects

€M

Collection +2.9€M Treatment +14.7€M

slide-59
SLIDE 59

59 59 2016 53 60 66 42 6 227 2016 Ordinary 52 60 14 44 6 176 Electricity Networks 2 Gas Networks 4 Water Cycle 3 District Heating 10 Public Lighting 1 LGH 14 2017 Ordinary 17 56 62 14 54 7 210 2017 16 58 64 15 85 7 245 2016 Non Recurring Items 51 2017 Non Recurring Items 35

+18 +34

Gas Networks Electricity Networks Water Cycle Public Lighting Heating

  • DH benefitting from higher gas prices, commercial development

and temperature effect

  • Positive white certificates margin

1H CONSOLIDATED RESULTS

NETWORKS AND DISTRICT HEATING EBITDA

€M

LGH (Networks & Heating)

slide-60
SLIDE 60

60 60 2016

13 22 35 Generation and Retail

  • 23

Distribution

2017

13

  • 1

12

  • 23

Energy Distribution

Low hydro production (-55%): higher import (at very high prices)

1H CONSOLIDATED RESULTS

EPCG EBITDA

€M

slide-61
SLIDE 61

61 61

1H 2017 EBITDA 649 Change in Net Working Capital

  • 33

Change in

  • ther

assets/ liabilities

  • 139

Use of Funds

  • 10

Tax Paid

  • 1

Net Financial Expenses

  • 53

FFO (1) 413 Capex

  • 171

Dividends

  • 153

Free Cash Flow 89 Share Buyback 89 Net Free Cash Flow 1H 2017 EBITDA 649 D&A

  • 209

Risk Provisions

  • 11

Non rec. transact. 1 4 Net Financial Expenses

  • 61
  • 95

EBT 278 Taxes

  • 119

Net result from discontinued

  • perations

1 Minorities

  • 3

1H 2017 Net Income 157 Investments carried at equity EPCG write-down and put option discount

FROM EBITDA TO GROUP NET INCOME AND TO FREE CASH FLOW

1H CONSOLIDATED RESULTS

€M

(1) -95€M, of which:

  • 60€M D&A (EPCG write-down)
  • 35€M Net Financial Expenses

(1) (2) Funds from operations after working capital change (2)

slide-62
SLIDE 62

62 62

BREAKDOWN BY ACTIVITY BREAKDOWN BY BUSINESS +41 +41

CAPEX

1H CONSOLIDATED RESULTS

€M

2016 8 28 78 1 10 130 2017 11 42 98

9 4 4 171 2 3 3

Generation & Trading Energy Retail Waste Networks and District Heating Corporate A2A Smart City EPCG

2016

61 58 11 130

2017

67 78

13

13 171

Maintenance Development Mandatory M&A

slide-63
SLIDE 63

63 63

  • 30

EPCG Expected 2H EBITDA

Delta EBITDA

  • 1

Fair Value Adj. of the investment in EPCG to the Put Option NPV

  • 95

A2A Share

  • f EPCG

2H expected Net Income

Delta Group Net Income

EPCG Positive NFP as of 30/06/17

  • 206

Delta Net Financial Position

EFFECT OF THE DECONSOLIDATION OF EPCG ON FY 2017 FORECAST

In H1 17 accounts, the new valuation of EPCG led to a total write-down of 95 €M, of which:

  • 60 €M, as the adjustment of the asset

value to the PUT Option value (250 €M);

  • 35 €M, as effect of the discounting of the

seven equivalent annual cash in instalments (starting from May 2018)

slide-64
SLIDE 64

64 64

H1 CONSOLIDATED RESULTS

EBITDA GUIDANCE

  • CONF. CALL

MAY 10, 2017 2H EPCG DECONSOLIDATION EFFECT -30€M HIGHER FULL YEAR NON RECURRING ~+25€M

1.170 1.190 1.140 1.160 1.165 1.185

€M €M €M

FREE CASH FLOW

~100€M

GUIDANCE CONFIRMED

slide-65
SLIDE 65

65 65 EBITDA Ordinary D&A Provisions EBIT Net Financial Expenses Associates & JV EBT Taxes Minorities GROUP NET INCOME 1H 2016 1H 2017 %

+5.7%

  • 5.6%

+69.4%

  • 2.9%
  • 52.4%
  • 25.5%
  • 12.3%

n.s.

REVENUES

+25.6%

CHANGE

  • 11

+25

  • 11
  • 33
  • 95
  • 13

+10 +595 649 (209) (11) 369 (96) 4 278 (119) (3) 614 (198) (36) 380 (63) 4 373 (106) (13) 254 2,918 2,323

Result from non

  • recurr. transactions

n.s.

  • 51

1 52

  • 38.2%
  • 97

157

Net result from discontinued operations

n.s. +1 1

  • +35

EPCG write-off

n.s.

  • 60

(60)

  • 1H CONSOLIDATED RESULTS – P&L

€M H1’17 ANNEXES H1’17 ANNEXES

slide-66
SLIDE 66

66 66

Intangible Assets Shareholdings and Other Non Current Financial Assets Other Non Current Assets/Liabilities Deferred Tax Assets and Liabilities Provisions for Risks, Charges and Liabilities for landfills Employee Benefits NET FIXED CAPITAL Inventories Trade receivables and other current Assets

31.12.2016 Restated 30.06.2017

%

Tangible Assets

5,129

Current tax Assets/Liabilities WORKING CAPITAL AND OTHER CURRENT ASSETS/LIABILITIES TOTAL CAPITAL EMPLOYED Equity Net Financial Position TOTAL SOURCES

1,704 80 (82) 341 (671) (365) 6,136 159 2,210 37 278 6,415 3,279 3,136 6,415

Trade payables and other current Liabilities

(2,128)

Non current Assets /Liabilities held for sale

1 4,979

  • 2.9%

1,709 0.3% 76

  • 5.0%

(76)

  • 7.3%

297

  • 12.9%

(636) (348)

  • 4.7%

6,001

  • 2.2%

168 5.7% 1,878

  • 15.0%

(30) n.s. 356 +28.1% 6,358

  • 0.9%

3,311 +1.0% 3,047

  • 2.8%

6,358

  • 0.9%

(1,660)

  • 22.0%
  • 5.2%

1 n.s.

BALANCE SHEET

1H CONSOLIDATED RESULTS

€M H1’17 ANNEXES H1’17 ANNEXES

slide-67
SLIDE 67

67 67

Bond s Loans

GROSS DEBT MATURITIES AS OF 30/06/2017

1H CONSOLIDATED RESULTS

€M

2017 50 50 2018 300 96 396 2019 567 99 666 2020 145 145 2021 430 95 525 2022 500 91 591 2023 300 86 386 2024 300 64 364 2025 300 65 365 2026 47 Beyond 2026 98 180 278 47

H1’17 ANNEXES H1’17 ANNEXES

slide-68
SLIDE 68

68 68

RELAUNCH

  • 1st Plastic treatment plant (Cavaglià): construction phase started
  • 2nd Plastic treatment plant (Muggiano): construction authorisation

granted

  • 1st FORSU plant: VIA presented
  • More than 100,000 new mass-market contracts
  • Increase to 90% of Lumenergia share capital (now fully consolidated)
  • LGH:

‒ waste collection for 160k inhabitants in 49 municipalities in Cremona area ‒ start-up of subsidiary rationalization

REGENERATION RESHAPE

  • Public Lighting: Lainate tender won
  • Acquisition of Patavina Technologies to develop IoT solutions
  • A2A Smart City technological partner in “Oltre la Strada”, an urban

regeneration program

  • Launch of Milan E-HUB with 74 charges points expandable up to 132

electrical setup to serve Unareti EV fleet

  • energy production +3% vs. Q2 2016: CCGT more than offsetting lower

hydraulicity

UPDATE 3R

H1’17 ANNEXES H1’17 ANNEXES

slide-69
SLIDE 69

69 69

DISCIPLINE, DIALOGUE & DIGITAL

  • Lean Project underway, operational efficiencies already achieved; LGH

started the lean roll-out in Q2

  • 860 managers participated in ABC management development project

focus on Listening, Needs and Change

  • New external lighting concept at Vittoriale
  • 2 new territorial sustainability reports presented (Milan and Bergamo)
  • Winner of TopLegal Corporate Counsel Awards 2017 for Corporate

Social Responsibility

  • Company sustainability commitment strengthened: A2A Ambiente

awarded ISO 50001: 2011 – Energy Management System certification for its WTE plants in Brescia, Milan and Corteolona

  • A2A Energia project to identify digital championships, to improve

digital relationships with customers

  • Roll out of Work Force Management in Unareti and A2A Ciclo Idrico
  • Start up of Maximo Refoundation project – new operation&maintenance

system for networks: adoption of mobile technologies to maximize efficiency

ADDITIONAL

  • A2A, ACSM-AGAM, ASPEM, AEVV and Lario Reti Holding – deadline of

MoU extended to the end of September

UPDATE 3D

H1’17 ANNEXES H1’17 ANNEXES

slide-70
SLIDE 70

70 70

(1) Net of intermediated Ipex volumes

( 1 )

VOLUMES

1H CONSOLIDATED RESULTS

H1’17 ANNEXES H1’17 ANNEXES

slide-71
SLIDE 71

71 71

ENERGY SCENARIO

1H CONSOLIDATED RESULTS

(1) Gas at virtual trading point (2) Pfor 162/14 Oct 2014-Mar 2016. (3) hourly average for each month (4) based on gas at virtual trading point with 51% efficiency; includes transport costs (5) 35% efficiency - includes cost spread on API2 and transport cost

Average data 1H 2016 1H 2017 D % vs 2016 Brent $/bbl 41,0 52,8 29% CO2 - EU ETS cost €/Tonn 5,7 5,0

  • 13%

Green Certificates €/MWh 99,6 0,0

  • 100%

€/$ €/$ 1,1 1,1

  • 3%

Brent € €/bbl 36,7 48,9 33% PSV(1) €/MWh 14,6 19,3 32% AEEGSI Gas Tariff (2) c€/mc 16,0 19,1 19% Coal € (API2) €/Tonn 42,0 72,9 74% PUN baseload(3) €/MWh 37,0 51,2 38% PUN peak(3) €/MWh 40,9 57,4 40% PUN off-peak(3) €/MWh 34,9 47,7 37% CCGT gas cost(4) €/MWh 35,3 45,5 29% Spark Spread CCGT_PSV vs Baseload €/MWh 1,7 5,6 n.a. Spark Spread CCGT_PSV vs Peakload €/MWh 5,6 11,8 n.a. Spark Spread CCGT_PSV vs Off-Peak €/MWh

  • 0,4

2,2 n.a. Clean Spark Spread vs Baseload €/MWh

  • 0,4

3,8 n.a. Clean Spark Spread vs Peakload €/MWh 3,4 9,9 n.a. Clean Dark Spread vs Baseload(5) €/MWh 6,2 9,3 50%

H1’17 ANNEXES H1’17 ANNEXES

slide-72
SLIDE 72

72 72

A2A Investor Relations Team Mail: ir@a2a.eu Phone: +39 02 7720 3974 http://www.a2a.eu/en/investor/

CONTACTS AND IR PRODUCTS

a2a 2017 Investor Guidebook Investor Databook (excel file)

Concise and thorough insight in the A2A Group in the form of a long presentation divided into three main parts: Our World, Our Results and Our

  • Responsibilities. The selected contents are all publicly available information,

which you may find spread across a large number of Company documents

  • Historical economic, financial and operational company data as of 2008 –
  • n annual and quarterly basis
  • Economic, financial and operational data useful for building A2A earnings

model – 2015 FY reported and 2016-20 BP forecast

  • Tables of the Investor Guidebook mainly relevant to a quantitative analysis

Periodic update for investors and analysts

  • n the significant steps of A2A Business Plan

– such as relevant investments, new projects, achievements, contracts, agreements. https://www.a2a.eu/en/investors/documen ts#BPN Brief and synthetic document that shows the highlights and the strengths of A2A business model Moreover A2A publishes the following documents in the Investor Library Section on A2A website:

  • Documents prepared by the Market Analysis, Modeling and Pricing Unit of A2A
  • Overview of the Italian Energy Market (yearly basis)
  • Notes on energy and environmental markets (quarterly basis)
  • Documents prepared by Divisional Managers of A2A
  • A2A Environment BU
  • A2A Networks & Heat BU
  • Main Regulatory Issues for Investors

Newsletter Publications

The publications are available at the following link: http://www.a2a.eu/en/investor/guidebook/

a2a 2017 Company Profile

This document has been prepared by A2A solely for investors and analysts. This document does not constitute an offer or invitation to purchase or subscribe any shares or other securities and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Some information contained herein and other material discussed at the meetings may include forward-looking information based

  • n A2A’s current beliefs and expectations. These statements are based on current plans, estimates, projections, and projects and therefore you should not place undue reliance on them. Forward-looking statements involve

inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to changes in global economic business, changes in the price of certain commodities including electricity, gas and coal, the competitive market and regulatory factors. Moreover, forward-looking statements are current only at the date on which they are made.