ERG S p A : The Board of Directors approves the I...

Consolidated adjusted¹ EBITDA: €162 million, restated €151 million² in the first quarter of 2017

Adjusted¹ Group net result: €56 million, restated €54 million² in the first quarter of 2017

Genoa, 15 May 2018 - At its meeting held yesterday, the Board of Directors of ERG S.p.A. approved the Interim Report on Operations as at 31 March 2018

Consolidated adjusted¹ financial results

Performance highlights (million Euro)	First Quarter
	2018	2017 restated2	Var. %
EBITDA	162	151	+7%
EBIT	94	90	+5%
Group net result	56	54	+3%

	31.03.18	31.12.17	Variation
Net financial debt (million Euro)	1,229	1,233	-4
Leverage3	38%	40%

Luca Bettonte, ERG's Chief Executive Officer, commented: 'The first quarter results are very good and show an upturn compared to a year ago. The growth in hydroelectric and wind power output - given the same scope - together with the contribution from the new solar power assets and from the increased installed wind power capacity in France, Germany as well as, albeit temporarily, in

UK, allowed us to offset both the poorer price and incentive scenario and the reduction in incentivised wind power capacity. A good performance was also reported by the thermoelectric power sector which, thanks to the flexibility of its plant and to the Energy Management business, was able to improve its profitability in the course of the period, also benefiting during the quarter from the higher prices as regards the Energy Efficiency Certificates generated. In view of these results, we are certainly confident about confirming the EBITDA guidance figure of Euro 475 million forecast for the end of the year. Lastly, in order to reflect our recent acquisition of Epuron, in France, for which the closing is scheduled to take place shortly and which effectively represents an anticipation and acceleration of investments included in the Plan, we have increased our year-end investment forecast from the previous Euro 450 million to around Euro 500 million, and net debt from the previous figure of Euro 1,260 million to approximately Euro 1,300 million, including the imminent distribution of dividends amounting to Euro 172 million.'

¹ In order to facilitate the understanding of business performance, the financial results are shown excluding significant income components of a non-recurring nature (special items): these results are indicated using the term 'adjusted'.

For a definition of the indicators and reconciliation of the amounts in question, reference is made to the specific section of this Press Release 'Alternative Performance Indicators'

² For a definition and reconciliation of restated amounts reference is made to the Preliminary Remarks section of this Press Release

³ The ratio of total net financial debt (including project financing) to net invested capital