Erg S.p.a. · MIL:ERG
Erg — Infrastructure, Energy & Defense Day 2025
30 slides from Erg's conference presentation, Sep 4, 2025
Slide 1: ERG Company Overview
ERG COMPANY OVERVIEW Infrastructure, Energy & Defense Day 2025 4 September 2025
Slide 2: Disclaimer
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
Slide 3: Agenda
AGENDA ❑ ERG Today ❑ Recent Developments, 2Q 2025 Results and 2025 Guidance ❑ ERG 2024-2026 Strategy ❑ Financials & Capital Structure ❑ Management Profiles
Slide 4: ERG Today
ERG TODAY Teleborsa: distribution and commercial use strictly prohi emarket Sie eocoge
Slide 5: A Long History…
A LONG HISTORY… ERG a pure renewable Entry into the solar player after the sale power sector: 30 of the thermoelectric photovoltaic plants Solar: entry in France business. acquired in Italy (79MW). Wind: start-up of the Start-up of ERG Power's Sale of the ISAB (89MW, in operation). Wind: entry in fi
Slide 6: Group's Structure and Corporate Governance
GROUP'S STRUCTURE AND CORPORATE GOVERNANCE A new Shareholders' structure(1) ERG’s Governance Model SQ Renewables S.p.A. SHAREHOLDERS’ MEETING San Quirico S.p.A. IFM Investors SQ Renewables S.p.A. Treasury shares 35% 49% 34% Free Float 65% BOARD OF DIRECTORS BOARD OF STATUTORY 63% AUDITORS 51% 3% @ S
Slide 7: ERG as of Today: A Solid and International Platform
ERG AS OF TODAY: A SOLID AND INTERNATIONAL PLATFORM Sweden: Installed Capacity (MW) 62MW O&M Wind 17% Solar Operating centres 3,962 U.K.: 340MW(1) 83% Iowa: 224.4MW Illinois: Germany: 92.4MW 42% 50% 8% 330MW(2) 11% 20% 29% Poland: 1,649 1,996 317 142MW 89% 80% 71% Romania: 70MW Pipeline (MW) 3% Wind
Slide 8: Solid Track-Record in Delivering on Our Strategy
SOLID TRACK-RECORD IN DELIVERING ON OUR STRATEGY 117 3,962 Total Shareholder Remuneration(1) 579 3,845 in 2021-2025 period: ~€850mn 322 3,266 526 2,944 Solar Wind 309 2,418 2,109 First 8 2020 2021 2022 2023 2024 months @as of Today of 2025(2) Keep delivering on our growth strategy with a mix of inte
Slide 9: Pioneer in Repowering: First 270MW Fully in Operation
PIONEER IN REPOWERING: FIRST 270MW FULLY IN OPERATION Partinico-Monreale Camporeale Mineo-Militello-Vizzini Salemi-Castelvetrano Gross capacity: 42MW COD: 14.6.2023 Gross capacity: 50MW COD: 29.9.2023 Gross capacity: 101MW COD: 24.4.2024 Gross capacity: 76MW COD: 2.12.2024 PPA: 12 years, with PPA: 1
Slide 10: Pro-Active Route to Market Approach
PRO-ACTIVE ROUTE TO MARKET APPROACH Tech Companies Utilities/Energy Corporates ~2.1TWh/Y ~1.3TWh/Y ~0.3TWh/Y By company ~3.7TWh/Y(1) of PPAs signed during the By duration → 5 Years 6 → 15 Years 16 → 20 Years last 4 years ~0.5TWh/Y ~3.1TWh/Y ~0.1TWh/Y By geography ~1.5TWh/Y ~0.2TWh/Y ~0.8TWh/Y ~0.2TW
Slide 11: Recent Developments, 2Q 2025 Results & 2025 Guidance
RECENT DEVELOPMENTS, 2Q 2025 RESULTS & 2025 GUIDANCE
Slide 12: Highlights: Key Figures
HIGHLIGHTS: KEY FIGURES EBITDA (€ mn) CAPEX (€ mn) 281 274 444 EBITDA Margin 290 International 116 128 Italy 143 Corporate 28 1H 2024 1H 2025 2Q 2024 2Q 2025 1H 2024 1H 2025 2Q 2024 2Q 2025 Net Profit(1) (€ mn) NFP(2) (€ mn) 106 1,949 1,793 83 34 28 1H 2024 1H 2025 2Q 2024 2Q 2025 31/12/2024 30/06/2
Slide 13: Wind Drought Since October Continuing in 1H 2025
WIND DROUGHT SINCE OCTOBER CONTINUING IN 1H 2025 Bureau Veritas Wind Index - 2Q 2025 map(1) Wind Production in Italy (GWh)(4) ERG’s country 12,584 -17% 10,460 Wind Speed Departure from Normal (%) Severe Weather Europe(2): “It’s evident a dominant high-pressure anomaly over northwestern Europe. The l
Slide 14: Delivering on Our Strategy
DELIVERING ON OUR STRATEGY ✓ Completed construction and energization of the first BESS plant in Vicari for 12.5MW ✓ Italian Solar: 23MW of Revamping and 5MW of Repowering Execution ✓ 50MW of Wind & Solar permitted in France, Germany & Italy ✓ Corlacky wind farm started up in Northern Ireland for 47M
Slide 15: 2025 Guidance Confirmed
2025 GUIDANCE CONFIRMED Adjusted EBITDA (€ mn) CAPEX (€ mn) Adjusted NFP (€ mn) Actual Guidance Guidance range 540-600 1,949 1,850-1,950 190-240 274 143 1H 2025 2025 1H 2025 2025 1H 2025 2025 Actual Guidance Actual Guidance Actual Guidance 15
Slide 16: ERG 2024-2026 Strategy
3 stk ots ; ERG 2024-2026 STRATEGY
Slide 17: Value Over Volume Approach Reinforced
VALUE OVER VOLUME APPROACH REINFORCED Selective growth 4.2GW installed capacity in 2026 (vs 4.5GW); focus on repowering & organic Investments/EBITDA CAPEX: €1.0bn 2024-2026 (-20% vs prev. €1.2bn); EBITDA >€600mn @2026 Route to market Confirmed target 85%-90% quasi-regulated on total EBITDA through C
Slide 18: Relying on a Fully Secured Growth in the Short Term
RELYING ON A FULLY SECURED GROWTH IN THE SHORT TERM Vicari Vicari Aukrug 12.5MW 22MW COD: 2Q 2026 COD: 3Q 2025 Producibility: 2,183 heq Montbeliard (RPW) Brunsbuttel (RPW) 23MW to be 9.6MW to be COD: 3Q 2026 COD: 1Q 2027 Producibility: 2,854 heq Producibility: 2,422 heq Aukrug Montbeliard (RPW) Jegg
Slide 19: Repowering as a Strategic Pillar in Italy and Abroad
REPOWERING AS A STRATEGIC PILLAR IN ITALY AND ABROAD Project MW as is MW to be Delta MW Delta Prod. VIA Decree AU Decree 1 10 30 2x 2x ✓ ✓ N. WTG 0.5X 2 10 20 2x 3x ✓ ✓ 3 50 100 2x 3x ✓ ✓ REPOWERING 4 30 60 2x 3x ✓ ✓ MW 2.0X ÷ 2.5X 5 10 20 2x 3x ✓ ongoing KW 6 30 35 1x 2x ✓ ongoing 7 40 120 3x 4x ✓
Slide 20: ESG: A Strategic Priority
ESG: A STRATEGIC PRIORITY Net Zero target by 2040 to continue decarbonization path Circular Economy: minimizing waste in wind repowering Natural Capital Preservation in our organic RES developments E NG AG ET N EM PLA Sharing Value with Local Communities EN T ERG Academy to engage next generation in
Slide 21: Becoming More Selective in a Complex Scenario
BECOMING MORE SELECTIVE IN A COMPLEX SCENARIO ❑ Value over Volume approach reinforced SELECTIVE GROWTH 2024-2026 ~€1.0bn CAPEX ❑ 2024–2026 CAPEX cut by 20% (-30% on 2025-26), driven by delays of FERX and a cautious stance on US QUASI-REGULATED ❑ EBITDA >€600mn 2026 BUSINESS MODEL >€600mn EBITDA ❑ PP
Slide 22: Financials & Capital Structure
FINANCIALS & CAPITAL STRUCTURE
Slide 23: 640MW Out of Incentives in the BP Period
640MW OUT OF INCENTIVES IN THE BP PERIOD Phasing out of incentives in the period (MW) 2025 Revenues Structure: production hedging (TWh) In 2024-2026 BP = 640MW 8.1 1.3 290 Covered by GRIN incentive and Conto Energia in Italy 1.9 Spot @ Pzon BL(1) 185 CFD 1 way Hedging to close 169 PPA to close 3.1 C
Slide 24: A Solid Financial Structure
A SOLID FINANCIAL STRUCTURE Gross debt at 30/06/2025 Repayment Schedule based on stock as of June 2025 (€ bn) Corporate Loans ~0.5 ~0.1 ~2.2 Green Bonds 4 yrs avg. Project Finance 72% Debt Maturity ~€2.2 ~0.6 22% bn April 2025 ~1.1 ~0.1 Almost entirely ~0.3 fully hedged 6% Issuer Default Rating: BBB
Slide 25: Investment Grade Rating Always a Pillar of ERG Growth Plan
INVESTMENT GRADE RATING ALWAYS A PILLAR OF ERG GROWTH PLAN Net financial position, FFO net leverage & company-defined EBITDA net leverage FFO net leverage(2) 4.5x Net financial position(1) 4.3 Negative Threshold 4.1 4.1(3) FFO net leverage (ERG case) FFO net leverage (Fitch case) ~1.9 ~1.9(4) 3.8(4)
Slide 26: Cost of ERG Sustainable Debt Remains Moderate
COST OF ERG SUSTAINABLE DEBT REMAINS MODERATE ERG having a near-term low cost of debt vs IG utilities… … and vs RES peers with a remarkable dividend yield ERG Avg of a panel of Utilities and Gencos - EU (1) Average cost of Debt (%)(2) ERG IPP/Developer Peers 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% Average Div
Slide 27: Management Profiles
Teleborsa: distribution and commercial use strictly prohibited MANAGEMENT PROFILES emarket Sie eocoge
Slide 28: Emanuela Delucchi – Chief ESG, IR & Communication Officer
EMANUELA DELUCCHI – CHIEF ESG, IR & COMMUNICATION OFFICER Born in Genoa on 18th December 1975, she graduated in Economics from the University of Genoa in March 1999. She joined the ERG Group in February 2008 where she is currently Chief ESG, IR & Communication Officer, with the mission to develop an
Slide 29: Michele Pedemonte – Chief Financial Officer
MICHELE PEDEMONTE – CHIEF FINANCIAL OFFICER Born in Genoa on 2nd March 1975, he graduated in Economics from the University of Genoa. He joined the ERG Group in 2006 where he is currently Chief Financial Officer with the responsibility of Group Administration, Finance & Group Risk Management, Plannin
Slide 30: Inspiring Change to Power the Future
INSPIRING CHANGE TO POWER THE FUTURE