ERG S.p.A. “Fourth Quarter 2012 Results”

March 8, 2013

MODERATORS: LUCA BETTONTE, GROUP CEO PAOLO MERLI, FINANCE DIRECTOR

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Operator: Good afternoon. This is the Chorus Call Conference operator. Welcome and thank you for joining the ERG Fourth Quarter 2012 Results Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing “*” and “0” on their telephone. At this time, I would like to turn the conference over to Mr. Luca Bettonte, CEO of ERG. Please go ahead, sir. Luca Bettonte:

Thanks. Good afternoon everybody. Thanks for coming to this conference call. Along with me is Paolo Merli, who later will take you through the figures in details, as usual.. I would start asking you to go directly to the slide no. 4, where we have summarized our key figures: it is easy to say that in 2012 we have posted very, very good results. In terms of EBITDA: year-on-year up 61%, and Q-on-Q, plus 132%. I want to just underline that we have been able to achieve these strong results thanks mainly to the performance in Renewables and in Power. But I would like also to underline that we have posted better results in all our business lines, and also in cost-cutting: the corporate costs have been in fact reduced by 10% on annual basis, thanks for sure - as I like to repeat - to the very high quality assets we have. For example, let me underline that the average wind farm load factors range between 25% and 30%. Very high operating performance, both in terms of O&M, and fast building of Amaroni wind farm: we have finalized the construction of this wind farm well ahead of the schedule. Again, continuous reduction of our exposure to the loss-making refining industry. Two main items to be underlined are in fact a reduction in our stake in ISAB, and - even more important - the closure of Rome Refinery and its transformation into a logistic hub. And last but not least, resilience to the downstream consumption fall and to the current serious competition in that industry. These facts confirm that we are operating upon a very strong, solid and well managed asset base. Net profit: we went back to profit, thanks to the operating results, but also to the increasing profitability of the fully-owned businesses, in particular CCGT (i.e. ERG Power) and Renew. My last comment on this slide has to do with the net financial position: again, a very strong reduction. I would like to comment with reference to the numbers without derivatives: if you consider the two numbers - at the end of the previous year and at the end of last year - you see we reduced the net debt by €487 million. At a first glance, this seems a result of the exercise of the put option on the 20% stake of ISAB, when we cashed some €480 million. But you should also consider - and let me highlight them - a couple of specific items affecting the remaining €638 million net debt at year end. They are the €26 million we invested in the buyback, successfully executed, if you consider that now the average price of our treasury stock per share in the market is €6.9: you know better than I do what the price of the share is today. And the other €53

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million are a result of a different accounting presentation and booking of the liquidity pertaining to us but today allocated in ISAB Refinery. From accounting purposes, we cannot take into consideration this liquidity, but from my substantial viewpoint, they are our money for sure. It means that these two amounts (some €80 million), represents the capability of the Group to deleverage even further the amount that we had cashed by exercising the put option. So in conclusion: very good results and - last but not least - a very important capability to deleverage. In the next slide let me go back a bit on the comparison between the guidance we gave you at the beginning of the year. We exceeded our and maybe also your expectations: plus 15% EBITDA, thanks to Power and Renewables. CapEx have been a bit lower: it is very important to pay a lot of attention to the investment you are going to make in the refining and marketing industries, because of the crisis, because of the transformation process of TotalERG. So, minus €10 million over €175 million, in the end a small, amount; but the important is the development and the CapEx we spent to grow at this point. The last figures represent the very strong performance we have obtained, the results we achieved in terms of net financial position. The guidance was €900 million, the actual figure was €722 million: for sure, high cash generation, lower CapEx, improvement in net working capital. In particular it is important to underline that today we have much more flexibility in managing our net working capital. Let me give you an example: in the past TotalERG had Rome Refinery, today they do not have it anymore, and they are an importer of finished oil products. It means that they can have and achieve better conditions in terms of delay in paying suppliers, and this is a result that we can appreciate this year. But at the same time, let me also tell you that I do not consider this result as a consolidated result for our net indebtedness. In fact - also in terms of net working capital management - we should consider that the larger power production (both for Renew and for our plants in Sicily) is increasing as a result of the increase in the amount of working capital that they generate, also thanks to the different regulation introduced last year, in particular for cashing the green certificates and the energy sold to the Authority. I am very happy my people brought at home such a good result; but today I am not really confident to say that it is something that is already consolidated: wait and see at least this first quarter to confirm it. And finally, before allowing Paolo to do his job, I think that on the slide no. 6 it is important to underline what we achieved this year. For the results already commented, even though in general terms, let me tell you that 2012 has been another very important year of changes for the Group, and in line with the strategy that we shared with you in Milan last December. In Renewables, we keep growing: In Italy through a selected growth, and the completion of Amaroni. We have taken part to the first auction in Italy and we have been assigned 34MW (Palazzo San Gervasio) with a very high load factor and - what is important - by offering the best price, so the highest reduction to the auction base price among the competitors.

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The expansion continues in Eastern Europe: Bulgaria 40MW, but in particular we are building 84MW in Romania, through LUKErg Renew. And last but not least, let me simply remind the acquisition of Maestrale, even if I do not think that it deserves to go through this transaction again. Power: we made two very important decisions and exited two very important projects that characterized the life of the Group over the past seven years. First of all, we exited the regasifying project Ionio Gas, and then the Rivara Storage project. It is in line with our strategy, with the way the Group is changing. And it is due to the different scenario we have got in front of us today compared to the one we had seven years ago, when we started investing in the gas business. And it is also very important to underline the operating excellence we are achieving: the contribution - some €10 million of the EBITDA - from the Second Dispatching Market, thanks to the flexibility in managing and running the CCGT plant. In Refining and Marketing, we keep on reducing our exposure to the industry (minus 20%, the exercise of the put option), but let me underline again the closure of the Rome Refinery and then its conversion into a logistic hub, which should allow TotalERG to improve profitability going forward. And last but not least, financials. I think it is important to underline the second bullet point on the ongoing optimization of the Group’s indebtedness allocation among businesses. I mean that by 2014 we will have finalized the reimbursement of all the corporate loans at ERG SpA level, so that day the Company will no longer have any kind of debt, while all the remaining indebtedness is allocated directly to the business cash generating units. And again let me underline that this indebtedness is all non-recourse. So the Group is going to be in a very strong financial position in this very difficult credit and market environment, and maybe we should start thinking to get a public credit rating, allowing the Group to further diversify its sources of funding in the future. The value creation for the shareholders: we keep distributing €0.4 per share, allowing our investors to have an interesting - in my opinion - dividend yield. With the buyback that I have already mentioned, today we have got 5% of own shares. Their average value is €6.9, well below the value that the shares have in the market today. This is my comment to 2012: a very important year for us in terms of transformation of the Group, pursuing our strategy and - why not - doing that by posting very interesting results at the same time. But now, with reference to the latter, Paolo please. Paolo Merli:

Thank you Luca. Good afternoon everyone. I start as usual with a brief overview of the trading environment over the period, starting from Renewables. Here, the price indicator in Italy (which is the sum of the electricity and the green certificate price) was €146/MWh: quite below the price last year, minus 9% year-on-year. This reduction has anyway to be seen as the consequence of the sharp drop in electricity prices during the

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quarter, triggered by the weaker national demand, but also of the gas contract review, which took effect since last October. This was not matched by a similar rise in the green certificate price as, I should remind you, the green certificate prices work out on a full-year basis. In fact, the price indicator for green energy seen on a full-year basis was €156, which is pretty in line with the 2011 figure, and should be taken as a reference for what we are expecting for our assets in the years to come. Abroad, here are reported the feed-in-tariffs in the countries where we are currently operating: France €90 versus €87 in the same period of last year, while Bulgaria - which entered into our scope of consolidation since Q3 - was €94/MWh. Power, now. Again very, very challenging trading conditions over the period, with the average national price gone down from €79 to €66/MWh (minus 16% year-on-year): it is a quite huge drop, of which I have already explained the reasons. The consequence was that generation margins (the so-called spark spread) were squeezed even further over the period, as the drop in gas prices could not fully offset the collapse in electricity prices. Notwithstanding this scenario in the mainland, Sicily once again proved to be a safe haven from this perspective, with the zonal price only marginally down year-on-year from €94 to €91/MWh. This implies a market premium of roughly €25 against the average national price. The CIP6 tariff, which is a key indicator for our ISAB Energy plant, was €123/MWh: 16% higher year-on-year, following the main oil driver entering into the price formula. As far as Marketing is concerned, here again the trading environment outside is very, very challenging. The fuel transportation volumes kept going down quite substantially, with a minus 10% year-on-year. This situation surely is exacerbated by the higher taxes and the absolute price of fuels, which is becoming more and more important for the final consumers. Refining in the end: here the scenario slightly improved year-on-year, but pulled back compared to the bounce experienced in the third quarter, underlining a structural, longer capacity in the European area where we are. That was the summary of the trading environment we have been operating in. Let us move now to slide no. 9, commenting onto the economics. Here, I prefer to focus on the full-year periods, as I think they provide a fair representation of the economic effects, following the reshaping work at our portfolio. I mean what Luca already mentioned in his speech: the progressive exiting from the Refining and the repositioning towards the Renewables segment in the countries where Power assets kept delivering very, very solid performance and economics. Corporate: here improvement was driven by efficiency actions on overheads. So all in all, EBITDA moved from €284 million to €458 million. The main contributors, as I said, were Renewables on one side (driven by the growth of the business), and Power, in

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particular ISAB Energy, which - I should remind - last year was affected by the general turnaround of the plant in the fourth quarter. Let us turn to slide no. 10, now commenting business by business, and focusing my comments on the quarter. For Renewables, EBITDA was €37 million, up 28% year-on-year. The growth of the EBITDA was due to the full contribution of Fossa del Lupo, (which last year suffered some initial and physiological disruptions), the entering in service of Amaroni (which was completed at the beginning of the quarter, and fully on stream during the period) and Tcherga wind farm in Bulgaria, which - as you know - entered our scope of consolidation accounts since Q3, 2012. All in all, Renewables productions were 350MWh over the quarter, plus 29% year-on-year. Even though Luca already mentioned this figure, it is important to say that the average load factor was almost 30% in the quarter and about 25% over the year, which means roughly 2,200 hours per annum, which I think definitely confirms the excellence of ERG Renew’s asset base. I remind - even if it is quite obvious - that Maestrale figures are not included here, as they will be consolidated as of January 1, 2013. Turning to slide no. 11 you see Power results: here EBITDA was €89 million, more than two times year-on-year. This performance was driven by ISAB Energy, whose EBITDA was €64 million, more than triple compared to the same period of 2011, and this was thanks to the volumes, which were up 46% (as in 2011 the plant was shutdown for 40 days for its general turnaround), and thanks to a context of more favorable price scenarios for CIP6. It is important to notice anyway that ISAB Energy load factor was 89%, which I think is an outstanding figure in absolute terms, and surely much better compared to the 61% of last year. Notwithstanding the growth was driven by ISAB Energy, I would like to underline that there is still a solid performance of our CCGT, which delivered €25 million of EBITDA in the quarter - slightly up year-on-year - driven by the Sicilian premium, which more than offset the lower spark spreads in the Mainland, as already commented. Let me also remind you that this plant supplies electricity and steam to the refinery and petrochemical site nearby, and sells roughly 2 TWh through a PPA to IREN. All these actions provide the plant with a much better profitability on top of the location, compared to other traditional merchant CCGT in the country. Let me also say that the trend of price in Sicily continues in the first couple of months of this year, as I saw this morning some of you wrote in their reports. Turning to slide no. 12, I am commenting now on Marketing, which I remind you includes 51% of TotalERG and 100% of ERG Oil Sicilia operations. Here I should remind that the scenario was characterized by lower volumes (minus 10%) and a tougher competitive landscape, where discounts at pumps are becoming more and more the key driver of award for market share. In this context, Q4 2012 marketing EBITDA declined from €26 million last year to €14 million.

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Here, it is important to briefly explain that ERG Oil Sicilia results (moved from plus €5 million to minus €1 million) were significantly affected by €3 million of one-off items related to the compulsory stock and biodiesel costs. Those costs were due to the change in its business perimeter, following the new shareholder structure of ISAB Refinery since September, with ERG now as a minority shareholder. According to the shareholders agreement with LUKOIL in fact, this event triggered the loss by ERG Oil Sicilia of the exclusivity of the cargo by land facility in the refinery, with significantly lower traded volumes in the wholesale business. Given that compulsory stock and biodiesel costs are based on volumes traded in the previous year, this event resulted in additional charges, not matched by revenues. This trend should continue in the first half of 2013, while normalizing afterwards. The ERG Oil Sicilia market share basically declined for the same reason. So the loss of exclusivity of cargo by land facility in the refinery triggers lower volumes through the so-called free-on-track service station, which are those directly supplied by the refinery. Let me also add that those service stations have very, very low margin. Therefore, Q4 market share should be taken as a reference going forward. Finally TotalERG: its market share recovered quite substantially compared to the previous quarter, touching 12.1% compared to the 10.1% in Q3, 2012 when it was severely affected by the ENI campaign, which was followed then by those of other competitors. The market share in the quarter was pretty in line with that of last year. Lastly, let me comment on Refining, going to slide no. 13: Refining results here includes both coastal and inland operations. The EBITDA was minus €4 million (I am talking about EBITDA at replacement costs, which does not include gain and loss on inventories) compared to the minus €36 million last year. In particular, the Coastal Refining was minus €1 million compared to the minus €30 million last year. It is important to underline also the Inland Refining EBITDA, which was minus €3 million, practically half compared to last year. And I think the main takeaway from this slide is the fact that the Group continues to reduce the losses from this segment, following the action taken by disposing part of the ISAB Refinery - we have now just 20%, compared to 40% last year - and the shutdown of Rome Refinery at the end of September, which is currently undergoing a re-conversion plan into a logistic hub. Let us now move to key financials: I am at slide no. 15 commenting on the pro forma P&L statement at replacement cost, which includes line-by-line our JVs. Going down from EBITDA, depreciation reduced from €71 million to €57 million for essentially three main reasons: lower stake in ISAB Refinery from 40% to 20%, lower book value for ERG Power following the write-offs done in 2011, and lower depreciation of ERG Renew due more to some accounting items and some restatements done last year in Q4, 2011. Net financial expenses went down: minus €13 million compared to minus €12 million last year. This figure actually does not well represent the true cost of debt for the Group. As a matter of fact, net interest declined by roughly 30% from €16 million to €11 million on an adjusted basis (so including TotalERG) due to the debt reduction following the

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proceeds coming from the sale of the refinery. This positive was anyway more than offset by negative mark-to-market of fair value on derivatives, which weighted roughly €6 million on a year-on-year comparison. Taxes: minus €34 million versus a tax shield of €13 million last year. You can notice that our adjusted tax rate was 59%: still very, very high and penalized by the distortions provoked by the regional tax (so-called IRAP), by the new real estate tax (the so-called IMU), and other non-deductible items, as well as the Robin Tax at which all our businesses are subject. Going forward, we expect tax rate to decline, as pretax is expected to rise (according to what we presented in December to the financial Community), and because as of 2014 Robin Tax is expected to step down from the current 10.5% to 6.5%. Minorities were minus €14 million - well above the minus €2 million last year - thanks to the better results of ISAB Energy. Replacement cost net profit over the period was positive at plus €10 million versus minus €17 million last year, reinforcing the trend we had already seen in Q3. This allows the Group to get back to a positive net result for the full year of €12 million versus the minus €49 million last year. A quick comment on a reported full year results, which are not reported here in the slide anymore: the full year net reported was €151 million versus plus €65 million last year. This figure was mainly influenced by two non-recurring items: the capital gain net of relevant fiscal items of €214 million related to the sale of 20% of the refinery, and €71-€72 million of negative items related to write-offs and provisions in TotalERG, following the shutdown of Rome Refinery and the future re-conversion into a logistic hub. Investments, shown on slide no. 16: full year figures were €165 million, slightly up compared to €156 million last year. It is important here to underline that 43% of the investments over the year were destined to Renewables, plus 34% compared to last year, 21% were in the Power business unit (plus 59%), as in this business unit we are performing some investments related to the construction of minor facilities such as the demineralization water system, and some mandatory investments (for instance the Acid Torch in ISAB Energy) to comply with the new environmental restrictions in place since January 1st, 2013. The investments in Renewables vice versa relate to the growth of the Company, and again are a quite well balanced mix of M&A (the acquisition in Bulgaria and Romania), and the organic investments for the construction and the completion of Amaroni wind farm. In R&M, the investments are mainly related to maintenance (when talking about ISAB Refinery) whilst those for TotalERG are related partially to maintenance and partially to the restructuring plan of the network. In particular, in 2012, TotalERG converted roughly 30 service stations to ghost format fully automatized in line with the medium-term objective of the Company to increase the automation of its retail network. Now, the last slide commenting the cash flow statement over the year, as I think it is more representative of the picture of the Group. Anyway, in the appendix you will find the cash flow statement on a quarterly basis for your analysis.

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Moving from left to right, cash flow from operation was €378 million underpinned by the very solid performance of Power and the Renewables, as already commented; a positive dynamic of working capital for about €85 million should be seen as the effort of the management at the Company to optimize the capital structure of the Group. Altogether, these two items lead to€463 million of cash generation from operation, which fully covers the investments done in the period (€126 million), the financial charges (€64 million), the taxes and other (for €126 million), and the M&A done in the period (I mean Bulgaria and Romania). And also the fact that last year in our net financial position, ISAB Refinery - which is cash positive - was included in our accounts. This left space to use the cash flow from operation to remunerate our shareholders with €88 million via both dividends and buybacks. So, the proceeds from the sale of the refinery - the €485 million - went all to deleverage the Group with the net financial position on adjusted basis moving from €1.179 billion down to €722 million at the end of the period, with the leverage coherently going down from 39% to 27%. It is important to repeat what Luca already touched: the proceeds have been used to repay our corporate loans. Over the year, we re-paid roughly €165 million of corporate loans, which expired over the period. We still have left roughly €120 million, which are going to be paid over the next couple of years. So the objective is to zeroing the corporate loans and just to keeping the debts attached to the SPV generating the cash flow. Today the Group has roughly almost €800 million of project financing non-recourse, not including Maestrale, which practically is equal to the net financial position at the year end. So, now over to the Chief Executive. Luca Bettonte:

Okay, thanks Paolo. Just a couple of comments about the guidance we gave in Milan last December: I confirm that guidance. Maybe some - or most - of you may perceive it to be conservative: let me add some comments, and then we go back to whether or not it is conservative. EBITDA: we are forecasting an amount above €500 million at year end for this year. For sure, it is easy to talk about Renewables: it will be determined by the full contribution of Maestrale. And Power is going to be run still in a local favorable market condition, that could be also improved: yesterday and today I saw in the newspapers that the Sicilian region has asked Terna to change the path for the cable. Maybe that could give rise to some delay, I do not know, but that is what you can read on the newspapers today. At the same time, we keep reducing the exposure to the refining industry, while for Marketing you know that we are working very hard in order to upgrade the network to get it much more consistent with the new needs and the new customers habits. Fine, but there may be some risks to take into consideration. Let us skip for a while Renewables because in that business we are very, very strong, we are the no. 1. And we have shown everybody that also in the new auction arena, we were the first-in-class, the best by bringing home the 34MW of Palazzo San Gervasio.

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But in the Power, again you should consider that - despite we are in Sicily - the consumption of the power in Italy is going not so good, maybe worse in 2013, and this may squeeze again the spark spread referred to the CCGT plant. Talking about the CIP6 convention, you know that there are some discussions because the Authority raised some doubts relating to the way of how the cost of fuel is determined. We are ready to discuss, we understand, we respect the Authority, but in terms of risk, there is a risk. And - last but not least - Marketing. We are working very hard - and TotalERG is working very, very hard as well - in order to upgrade its network to cope with the 2013 for sure weak (I hope not weaker) consumptions in the country, that could squeeze the profitability again, demanding the Company to accelerate the network upgrading process. So, am I conservative? Let me answer this way: we think that today, on the 8th of March, we must be cautious to present you these projections by promising that we are going to work very, very hard in order to overrun and to achieve better results, as we did in 2012. As I said in Milan, in ERG, we would rather make things happen and then tell you what we achieved. CapEx are confirmed. And for the net financial position, I do not want to go back to what I told you at the beginning of my speech. Let me conclude simply remembering that I believe that this is a very strong and sustainable business model, upon which we want to consolidate our growth. And now, I think we are ready to take your questions.

Questions & Answers Operator:

Excuse me, this is the Chorus Call conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press “*” and “1” on their touchtone telephone. To remove yourself from the question queue, please press “*” and “2.” We kindly ask you to use handsets when asking questions. Anyone who has a question may press “*” and “1” at this time. The first question is from Roberto Ranieri of Banca IMI. Please go ahead. Roberto Ranieri:

Yes, good afternoon gentlemen. I have a few questions, if I may. The first one is on Power and Gas sector, i.e. CCGT in Sicily. Can you give us a more detailed indication on when you expect the cable to be operating, and so when do you expect the Sicilian zonal price to be more in line with the Italian sale price? My second question is about Renewables: your load factor was very high in 2012. My question is if this is to be considered a normal year or - if not - could you please give us a normal average load factor for 2013 and 2014? My third question is about the capital gains that you had and

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you probably will have also on the put option exercise. So my question is if an extra dividend is an option, or if the possible capital gains are totally to be re-invested in plant development. My fourth question is about leverage: I understand that you will have a strong de-leverage from the end of 2013 and onwards, on my estimates. I understand that is a matter of the next Business Plan, but I would anyway like to ask if a change if the dividend policy is an option. And if I may ask, the last question is: what do you consider as an optimal leverage for the Company? Thank you very much. Luca Bettonte:

So thanks a lot. I understood that you want to have some dividends, so I can begin answering you talking about them. Today we are not forecasting any extra dividend: yesterday the Board proposed the General Shareholder Meeting to confirm the €0.4 per share, also because we do believe that it allows the investors to have a very interesting yield. So we are not going to change our dividend policy nor to distribute any extra dividend, even though we may have lot of cash. We want to invest the cash in our growth, as we told in Milan last December. Optimal leverage: well, in my opinion, the leverage depends on the business you are investing in. So I do not know what an optimal leverage is. It may be easier nowadays - just because we are much more exposed to power businesses - that we have a high leverage. For sure, today we have plenty of cash, and on the basis of the plan that I shared with you in Milan, we can also improve this cash, but we want to invest, we want to grow. And rather than talking about the optimum leverage, I can tell you that we have a lot of headroom to invest and to grow. Going back to what I told you in Milan, generally speaking we talked about three time net financial position on the EBITDA as a target. The cable in Sicily: in our plan, if I remember well, our expectation was that at the end of 2014 the cable enters into operation, leading to a decline of the price in 2015. I do not know - based on what I read this morning on the newspapers - if something may change, I am not in a position to comment, I do not want to comment either. So just wait and see what it is going to happen. Last but not least, Renewables: I think our load factor is much more normal than not. So we are confident that the very high quality of the assets we have - not just in terms of the positioning, but also in terms of O&M activities - should allow us to keep on posting good results in this industry. Roberto Ranieri:

Thank you, very clear. Operator:

The next question is from Matteo Bonizzoni of Cheuvreux. Please go ahead. Matteo Bonizzoni:

Good afternoon, I have basically two questions. One is on CIP6: you have elaborated on potential uncertainties about the tariff scheme. We are approaching also the 31st of March, that is the end period for your decision to possibly exit this tariff scheme. How are you approaching this decision right now? And the second question is just for

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accounting purpose and modeling purpose: could you provide an indication for depreciation and amortization related to the IP Maestrale assets, and can you confirm the EBITDA contribution for 2013 of roughly €120 million from these assets? Thank you. Luca Bettonte: On CIP6: there are some uncertainties with reference to the way the CEC - the cost of fuel - is going to be determined going forward, because the Authority seems to get it much more into the gas price rather than to the oil price. And please take this comment as I am telling you, because it is very difficult to predict what may happen. For sure, compared to the actual value of the fuel cost in 2012, we have included a lower level in our projection. So we have been conservative, but it is very difficult to predict how much the price is going to be reduced. In any case, we are going to discuss with them, to help them finding out the most appropriate way to determine: there is a law regulation, as usual. On 31st of March approaching, we think the early termination of the agreement is an opportunity. We have been working on it, but I think that as of today - also because, with no government, today we do not have a counterpart to discuss with - it may be difficult to go ahead with it and to accept the option they offered us. And so, I think that it is highly likely that we are not in a position to accept an early termination of the concession. I think that in any case, to have the opportunity to exit today or even tomorrow, later after 31st of March, should be considered as an option for everybody. So maybe the new government may allow the operators to still have this opportunity, but this is just my personal thinking. Paolo Merli:

About the depreciation of Maestrale, I can give you just a rough figure of roughly €55-€60 million, something like that. Surely, the first occasion when you will see the results Maestrale will be the Q1 in May. The only figure we disclosed about Maestrale was roughly €120 million of EBITDA for 2012, and the net debt, which was €824 million at the end of 2012, not including the mark-to-market of derivatives. Matteo Bonizzoni:

Okay, thanks. Operator: As a reminder, if you wish to register for a question, please press “*” and “1” on your telephone. The next question is from Domenico Ghilotti of Equita SIM. Please go ahead. Domenico Ghilotti:

Good afternoon, I have a couple of questions. The first is on your net debt target, because you are starting from a much lower base in 2012, part of the reasons are structural reasons: the higher EBITDA and the lower CapEx in 2012. So should we assume that now the target is at least conservative for 2013? The second question is related to the marketing business, because in the plan you were basically assuming a scenario of stable consumption while we started 2013 in a much worse situation. So I wonder if you have already taken some actions in order to accelerate the restructuring.

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Luca Bettonte:

Okay, the first question has to do with the net financial position. I cannot tell you that it is not conservative, but for the time being on the basis of what I said about the net working capital dynamics, let it where it is today, and please wait just at the end of the first quarter. Marketing: if I were British, I should say it is a very good question, but I am Italian, so I will try to answer. We are working very hard. The situation is worsening. We are just at the beginning and, before making a decent decision versus what I shared with you in Milan, we need to understand deeper and better what is going to happen. And there are two main items or matters in front of us. The first is the network as a whole: everybody recognizes that today there may be too many service stations in the country, but to reduce from a structural viewpoint this too high number of service stations, I think that we need also the Government and the relevant Authorities to be aligned, informed, and share what the operators could propose and like to do. And the second one is the market itself. I agree with you: a very bad beginning, but let me tell you it is just the beginning. For sure, as I told you, we may find ourselves in a situation whereby we have to accelerate what we intend to do. Today it is too soon to change the picture and the view that I gave you. Domenico Ghilotti:

Okay. Thank you. Operator:

Once again, if you wish to ask a question, please press “*” and “1” on your telephone. For any further questions, please press “*” and “1” on your telephone. There is a follow-up question from Roberto Ranieri of Banca IMI. Please go ahead. Roberto Ranieri:

Yes, good afternoon again, gentlemen. And two quick questions. The first one is on Renewables and Power: could you remind us the average maturity for green certificates in ERG Wind and IP Maestrale? My second question is a follow-up question on the marketing business. I am trying to understand what the upside could be on the marketing business from your restructuring, and trying to understand the room you have to be more competitive in Italy, in this very weak context. My questions basically are: what is the starting point for your network in terms of average throughput at the pump versus the average throughput at the pump in Italy? And what are the fixed cost portion of your total costs in the retail marketing versus the Italian average? And then, if I understand well, the marketing business division suffered from mainly the reduction of volumes and, in a certain way, from the squeeze on margins. But, if I am not wrong, you were not so pushing in terms of a discount at the pump. So my question is: do you have also this kind of discount leverage to get better in the marketing business, so if the situation will be worse than in 2012? Thank you very much. Luca Bettonte:

On first question, I think the average life time of the green certificates in IP Maestrale is about 9 years. Talking about Marketing, I do not think it is worth going through each of

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your single questions. Of course, we should realize that it is mainly much more a matter of industry re-balance inside which we have to identify the best path for TotalERG. In our Business Plan TotalERG is not giving any real contribution in terms of value because, if you take what we presented in Milan, you will see that the fund from operation is equal to zero. That is because we think that they can do better. How much, you are asking me: it is difficult to say today. I think the industry must change, we do not know how fast the pace of this change is going to be, and how it will be executed because we are talking about a large number of people working in that industry. Having said that, we are working in order to identify the new trends and, as I told you before, there is a couple of items I have not understood completely, or to the extent needed to change our view that I shared with you in Milan in December. This is where we are. We think that the network should be improved in terms of direct ownership from an operating viewpoint by TotalERG, in order to be much more proactive to react to the customers’ habits that are changing, to analyze in details if the other ancillary businesses are running the best way in the new context. And as a result, the numbers are what I have already shared with you: this is where we are. What may happen is that everything could accelerate. But I do not think that we will be in a position to make a relevant decision over the next two or three months. I think that it should take a bit more. Let TotalERG work on the plan because in any case on the assumption that we have used to identify price in terms of financials, we were not forecasting any growth in demand and a stable margin. We are today still convinced that this is the right way to go ahead, but ready for a quick change, if needed. Roberto Ranieri:

Thank you. Operator:

Gentlemen, there are no more questions registered at this time. Luca Bettonte:

Okay, so thanks a lot for having taken part at this conference. Paolo Merli:

Thank you from my side. Luca Bettonte

And have a nice weekend. Speak to you in a couple of months. Bye-bye. Paolo Merli:

Bye-bye.