Edison Spa · MIL:EDNR

Edison Spa — FY2016 Earnings Presentation

18 slides from Edison Spa's earnings presentation, February 2017

1. Slide 1: Full Year 2016 Results

   FULL YEAR 2016 RESULTS Milan, February 2017 Full Year 2016 results | Feb.’17 | 1

2. Slide 2: Business Environment

   BUSINESS ENVIRONMENT € bing EDISON

3. Slide 3: Electric Power Availability Mix in Italy

   ELECTRIC POWER AVAILABILITY MIX IN ITALY 316,9 -2.1% 310,3 46,4 (20.2%) 37,0 28,4 = 28,4 Pumping 14,7 +18.7% 17,5 Net import 46,4 (8.9%) 42,3 Other renewable production Wind production National Generation Hydroelectric production +2.5% 182,9 187,5 Thermoelectric production -1,9 -2,4 2015 2016 Power

4. Slide 4: Gas Demand in Italy

   GAS DEMAND IN ITALY +5.2% 70,4 66,9 2,1 1,9 20,8 +12.4% 23,3 System uses and losses Thermoelectric users +4.9% Industrial users 15,9 16,7 Services and residential users (0.1%) 28,3 28,3 2015 2016 Gas demand remained weak, despite the 5.2% increase due to: - higher thermal generation, linked to lower

5. Slide 5: Market Reference Scenario

   MARKET REFERENCE SCENARIO Avg 2016: 45.1 $/bbl BRENT 40.8 €/bbl Avg 2015: 53.7 $/bbl PSV Avg 2016: 165 Avg 2015: 233 (€/000scm) 48.4 €/bbl Avg 2016: 42.7 Avg 2016: 2.7 PUN TWA Avg 2015: 52.3 CSS1 Avg 2015: -0.6 (€/MWh) (€/MWh) Full Year 2016 results | Feb.’17 | 5 1. Clean Spark Spread Source: Edison

6. Slide 6: Full Year 2016 Results

   FULL YEAR 2016 RESULTS • Electric power and hydrocarbons sources and uses • Consolidated financial highlights and capital expenditures • Operating performance • Net financial debt and cash flow | 6

7. Slide 7: Electric Power Volumes in Italy

   ELECTRIC POWER VOLUMES IN ITALY SOURCES USES (TWh) (TWh) 89,4 +2.0% 91,2 89,4 +2.0% 91,2 1,0 3,4 +11.7% 1,1 2,5 (26.3%) (32.3%) 11,6 16,8 17,1 14,1 +18.8% 70,9 (0.2%) 70,8 72,3 +10,1% 79,6 FY2015 FY2016 FY2015 FY2016 Wind & other renewable production Other sales (b) (wholesalers, IPEX, etc.) End cus

8. Slide 8: Hydrocarbons Volumes: Gas Portfolio in Italy

   HYDROCARBONS VOLUMES GAS PORTFOLIO IN ITALY SOURCES USES (bcm) (bcm) 21,9 +24.5% +24.5% 21,9 17,6 6,8 17,6 0,2 61.7% 8,0 4,2 +36.7% 5,9 +14.9% 7,3 5,7 +29.1% 14,6 12,7 3,4 +17.3% 4,0 +7.4% 2,6 (3.3%) 2,6 0,5 0,5 FY2015 FY2016 FY2015 FY2016 Production (a) Imports (pipeline + LNG) Residential uses Ind

9. Slide 9: Hydrocarbons Volumes: E&P Operations

   HYDROCARBONS VOLUMES E&P OPERATIONS GAS PRODUCTION OIL PRODUCTION (mcm) (kbbl) 4.354 (4.9%) 1.993 4.143 (3.5%) 1.924 485 +7.4% 521 (15.0%) 2.546 2.163 1.508 1.403 (7.0%) +9.5% 1.808 1.980 FY2015 FY2016 FY2015 FY2016 International production (a) Domestic production (b) International production (a) Do

10. Slide 10: Group Consolidated Highlights

    GROUP CONSOLIDATED HIGHLIGHTS (€ mln) FY2015 FY2016a  Net capex & net financial investmentsb) Sales revenues 11.313 11.034 (2,5%) EBITDA 1.261 653 (48,2%) 541 EBIT (795) (260) 67,3% 6 Profit (loss) before taxes (862) (347) 59,7% 139 88 Group net income (loss) (980) (389) 60,3% 379 6 68 Net capex &

11. Slide 11: Operating Performance Breakdown

    OPERATING PERFORMANCE BREAKDOWN Electric Power Hydrocarbons Corporate and other Total Edison Group (€ mln) FY2015 FY2016 ∆ FY2015 FY2016 ∆ FY2015 FY2016 ∆ FY2015 FY2016 ∆ Sales revenues 6.529 5.682 (13,0%) 5.512 6.031 9,4% (728) (679) 6,7% 11.313 11.034 (2,5%) Adjusted EBITDA (*) 276 242 (12,3%) 1.0

12. Slide 12: From Consolidated EBITDA to Net Result

    FROM CONSOLIDATED EBITDA TO NET RESULT (€ mln) FY2015 FY2016  EBITDA 1.261 653 (608) Depreciation, amortization and writedowns (2.194) (734) 1.460 a) Group loss to €389mln from €980mln of which: Writedowns (1.534) (256) 1.278 Exploration costs (139) (68) 71 as a result of: Net change in fair value

13. Slide 13: Net Financial Debt and Cash Flow

    NET FINANCIAL DEBT AND CASH FLOW (€ mln) 85 243 (84) FURTHER (74) NFP/EBITDA REDUCTION OF (1.147) (1.062) 1.6X (904) NET FINANCIAL IN 2016 DEBT Dec 31, 2015 Dec 31, 2016 @ Elpedison Fenice NFP b) Dec 31, 2016 same perimeter receivable Reported reclassification a) +472 -196 POSITIVE CASH FLOWS -55 -5

14. Slide 14: Annexes

    ANNEXES € 3 TEDISON

15. Slide 15: Market Reference Scenario

    MARKET REFERENCE SCENARIO 9M2015 9M2016  4Q2015 4Q2016  FY2015 FY2016  ICE Brent swap ($/bbl) 56,7 43,0 (24%) 44,7 51,2 14% 53,7 45,1 (16%) Exchange rate (€/$) 1,11 1,12 0% 1,09 1,08 (1%) 1,11 1,11 (0,3%) ICE Brent swap (€/bbl) 50,9 38,5 (24%) 40,8 47,5 16% 48,4 40,8 (16%) Gas Release 2 (€/000 sc

16. Slide 16: Electric Power Availability Mix in Italy

    ELECTRIC POWER AVAILABILITY MIX IN ITALY 9M15 9M16  4Q15 4Q16  FY15 FY16  Thermoelectric production 134,6 132,1 (1,9%) 48,2 55,5 15,0% 182,9 187,5 2,5% Hydroelectric production 37,3 33,8 (9,5%) 9,2 8,5 (6,5%) 46,4 42,3 (8,9%) Other renewable production 35,2 36,6 4,0% 7,9 9,1 15,2% 43,1 45,9 6,3%

17. Slide 17: Gas Demand in Italy

    GAS DEMAND IN ITALY 9M15 9M16  4Q15 4Q16  FY15 FY16  Services & residential users 18,8 18,1 (3,7%) 9,5 10,2 7,1% 28,3 28,3 (0,1%) Industrial users 11,9 12,3 2,7% 4,0 4,5 11,3% 15,9 16,7 4,9% Thermoelectric users 15,2 16,2 6,8% 5,6 7,1 27,6% 20,8 23,3 12,4% System uses and losses 1,4 1,4 2,5% 0,6

18. Slide 18: Statement

    STATEMENT As required by Article 154-bis, Section 2, of the Uniform Finance Law (Legislative Decree No 58/1998), Didier Calvez and Roberto Buccelli, in their capacity as “Dirigenti preposti alla redazione dei documenti contabili societari” of Edison S.p.A., attest that the accounting information con

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