Q1 2018 ConsolidatedResults

Milan, May 10th,2018

2

HIGHLIGHTS

ANALYSIS OF RESULTS

AGENDA

ANNEXES

3

CCGT AND HYDRO VOLUMES

CCGT PERFORMANCE ON MSD

ENVIRONMENTAL MARKETS

MOODY’S UPGRADES A2A’S RATING FROM BAA3 TO BAA2

SCENARIO EFFECT

GAS MARGIN

Q1 2018 vs Q1 2017

Highlights

4Q1 2017

Restated*

180

Q1 2018

173

-7(-4%)

-7(-4%)

FY 2017

Restated*

3,226

Q1 2018

3,135

Changein

Perimeter

41

Q1 2018

3,176

-50(-2%)-50

(-2%)

Q1 2017

Restated*

393

1Q 2018

408

+15(+4%)+15

(+4%)

Q1 2017

Restated*

1,622

Q1 2018

1,812

+190(+12%)+190

(+12%)

Key Financial Indicators

REVENUES EBITDA

GROUP NET INCOME

NET FINANCIAL POSITION

€M

* Restated values refer to effects coming from LGH’s PPA and classification of EPCG’s economic values under IFRS 5

Highlights

5

HIGHLIGHTS

ANALYSIS OF RESULTS

ANNEXES

AGENDA

6

3

Analysis of results

Group EBITDA Overview

+14% -16% - -1%

€M

7

Generation

€M

• Negative impact of growing gas priceon clean spark spreads

• Production Volumes up 24%

• Strong MSD

• Green Certificates portfolio sold (~ 632

GWh)

Analysis of results

Thermal Production

(GWh)

2.976Q1 ‘17

3.766Q1 ‘18

+26,5%

HydroProduction

(GWh)

747Q1 ‘17

848Q1 ‘18

+13,5%

MSDMargin

(€M)

57Q1 ‘17

77Q1 ‘18

+35%

Green Certificates& Feed-in Tariff

(€M)

45Q1 ‘17

84Q1 ‘18

>100%

8

Market

• Customer base growth in line with plan

• Stable unitary margins

• Higher marketing costs

• Strong negative temporary items

-6,9%

Gas Sales(Mmc)

720Q1 ‘17

715Q1 ‘18

Analysis of results

Free MktCustomer

(‘000 EOP)

753Q1 ‘17

916Q1 ‘18

+21,6%

Energy Retail

€M

+27,1%

ElectricitySales(GWh)

2.056Q1 ‘17

2.614Q1 ‘18

9

Waste

€M€M

• Collection: lower paper prices and higher disposal costs

• Increasing disposal prices to treatment plants

• Waste Treatment: decrease in Grottaglie landfill disposal due to delay in authorization (authorized in April 2018)

Analysis of results

WasteCollection

(Kton)

386Q1 ‘17

400Q1 ‘18

+3,6%

Waste Treatment

(Kton)

893Q1 ‘17

863Q1 ‘18

-3,3%

Equivalent EE Sales(GWh)

549Q1 ‘17

535Q1 ‘18

-2,5%

10

Networks and DH

€M

• Lower regulated revenues on electricitynetworks

• District Heating: negative scenario effects partially offset by higher DH volumes

• Higher IWC tariffs

Analysis of results

* Provisional data, underlying the estimate of allowed revenues of the period

RAB* GAS(M€)

1.155Q1 ‘17

1.183Q1 ‘18

+2,4%

Heat Volumes(GWht)

1.325Q1 ‘17

1.388Q1 ‘18

+4,8%

RAB* EE(M€)

634Q1 ‘17

631Q1 ‘18

-0,5%

11

From EBITDA to Group Net Income

Analysis of results

Q1 2017Restated

393 (99) 258 4 (4) 1802 (27)(11) (78)-

€M

• D&A: 2017 CAPEX & REN acquisitions

• Net Financial Expenses: unwinding of derivatives (one off on REN)

• Tax rate: Q1/17 30%; Q1/18 32%;

12

Capex

Analysis of results

BREAKDOWN BY ACTIVITY BREAKDOWN BY BUSINESS

+23€M201753€M

201876€M

€M

2017

4

12

33

53

2018

3

18

48

76

+23(+43%)

1

2

1

2

3

2

+23(+43%)

Generation

Market

Waste

Networks and DistrictHeating

Corporate

A2A SmartCity

13

Net Free Cash Flow

Analysis of results

(1) Funds from operations after working capital change(2) Includes 1€M capex related to EPCG

393 (239) 171 (54) (8) 109Q1 2017Restated

(4) (45)(1)67 117(2)

€M

14

Guidance 2018 reiterated

1,150 - 1,180 €M

(1) Incl. ~60 €M M&A; (2) Excluding change in perimeter

2018EBITDA

360 - 390 €MNET INCOME

600+ €MCAPEX(1)

0 - 100 €MNET FREE CASH FLOW(2)

GUIDANCEREITERATED

Plus 20 - 30 €M non recurring

Analysis of results

€M

15

ANNEXES

AGENDA

ANALYSIS OF RESULTS

HIGHLIGHTS

16

Business Units EBITDA Breakdown

Annexes

€M

Reported Ordinary Reported Ordinary

a2a 393 388 408 402 15 4% 14 4%

Generation 150 149 171 170 21 14% 21 14%Power Generation 122 121 160 159 38 31% 38 31%

Gas Margin 28 28 11 11 -18 -63% -18 -63%

Market 49 48 41 40 -8 -16% -8 -16%Energy Retail 44 44 38 37 -6 -15% -7 -15%

Public Lighting 4 4 2 2 -1 -32% -1 -32%

Energy Solutions 1 1 1 1 0 14% 0 14%

Waste 71 71 72 71 1 1% 0 0%Collection 20 20 15 14 -6 -28% -6 -29%

Urban Waste Treatment 49 49 53 52 4 7% 3 6%

Other Treatment Plants 2 2 5 5 4 197% 3 184%

Networks 128 125 126 124 -2 -2% -1 -1%Electricity Networks 35 33 30 31 -5 -14% -2 -6%

Gas Networks 30 30 32 31 2 7% 1 3%

Water Cycle 9 9 12 12 3 33% 3 33%

District Heating 54 53 52 50 -2 -4% -3 -6%

Smartcity 1 1 2 2 1 n.s. 1 n.s.

Other -6 -5 -4 -5 2 n.s. 1 n.s.

2017 Q1 2018 Q1 Delta

Reported Ordinary

17

P&L

Annexes – Q1 consolidated results

€M

Q1 2017 Restated

Q1 2018 CHANGE %

Revenues 1,622 1,812 190 11.7%

EBITDA 393 408 15 3.8%

D&A (99) (108) (9) 9.1%

Provisions (11) (13) (2) 18.2%

EBIT 283 287 4 1.4%

Net Financial

Expenses(27) (30) (3) -11.1%

Associates & JV 2 1 (1) -50.0%

Result from non

recurr. Transactions0 0 0 n.a.

EBT 258 258 0 -

Taxes (78) (83) (5) 6.4%

Net Result from

disc. operations4 2 (2) -50.0%

Minorities (4) (4) 0 -

Group Net Income 180 173 (7) -3.9%

18

Balance Sheet

Annexes – Q1 consolidated results

€M

* Q1 2018 includes 2€M of Net Working Capital and 4€M of Other Current Asset regarding Change in Perimeter

2017 FY Q1 2018 CHANGE %

Tangible Assets 4,606 4,592 (14) -0.3%

Intangible Assets 1,893 1,902 9 0.5%

Shareholdings and Other Non

Current Financial Assets71 71 0 -

Other Non Current

Assets/Liabilities(117) (129) (12) 10.3%

Deferred Tax Assets and

Liabilities301 295 (6) -2.0%

Provisions for Risks, Charges

and Liabilities for landfills(625) (626) (1) 0.2%

Employee Benefits (319) (315) 4 -1.3%

Net Fixed Capital 5,780 5,790 10 0.2%

Net Working Capital* 437 756 319 73.0%

Other Current

Asset / Liabilities*(305) (431) (126) 41.3%

Current Tax

Asset / Liabilities103 26 (77) -74.8%

Working Capital and Other

Current Assets/Liabilities235 351 116 49.4%

Non current Assets /Liabilities

held for sale224 226 2 0.9%

Total Capital Employed 6,239 6,367 128 2.1%

Equity 3,013 3,191 178 5.9%

Net Financial Position 3,226 3,176 (50) -1.5%

Total Sources 6,239 6,367 128 2.1%

19

Average dataQ1

2017Q1

2018D % vs

2017

Brent $/bbl 54,7 67,2 23%

CO2 - EU ETS cost €/Tonn 5,2 9,8 90%

€/$ €/$ 1,1 1,2 15%

Brent € €/bbl 51,4 54,6 6%

PSV(1) €/MWh 20,4 21,9 7%

AEEGSI Gas Tariff (2) c€/mc 19,2 20,8 9%

Coal € (API2) €/Tonn 76,4 70,6 -8%

PUN baseload(3) €/MWh 57,4 54,3 -5%

PUN peak(3) €/MWh 66,4 62,6 -6%

PUN off-peak(3) €/MWh 52,4 49,6 -5%

CCGT gas cost(4) €/MWh 48,9 52,6 8%

Costo Coal €/MWh 38,5 35,8 -7%

Environmental costs (CCGT) €/MWh 2,0 3,7 90%

Environmental costs (Coal) €/MWh 5,0 9,5 90%

Spark Spread CCGT_PSV vs Baseload €/MWh 8,6 1,7 -80%

Spark Spread CCGT_PSV vs Peakload €/MWh 17,5 10,0 -43%

Spark Spread CCGT_PSV vs Off-Peak €/MWh 3,5 -3,0 n.s.

Clean Spark Spread vs Baseload €/MWh 6,6 -2,0 n.s.

Clean Spark Spread vs Peakload €/MWh 15,6 6,3 -60%

Clean Dark Spread vs Baseload(5) €/MWh 13,9 9,0 -36%

(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

(6) data subject to update by Terna

Energy Scenario

Annexes

20

• Acquisition of new PV plants from Impax (+15.7 MW)

GENERATION

WASTE

MARKET

NETWORKS

a2a T

2018 2022Transformation Excellence

a2a E

2018 2022Community

a2a C

2018 2022

• Cavaglià Plastic treatment plant construction finalized (to be tested)

• Brescia sorted collection rate up to 65% on march 2018

• Tender on collection in Rapallo won

• Public Lighting: +4 K lighting points

• Moody's upgrades A2A's ratings from Baa3 to Baa2 with stable outlook

• Q1 2018 CAPEX - over 13 €M in Digital and 3 €M in Tech Innovation

• INTERNAL Community:‒ Talent program pilot on

BU Networks‒ Contract harmonization

BU Market completed‒ Smart working pilot

extended ‒ New policy on work

environment reshape• EXTERNAL Community:

‒ Innova2a workgroup project started

‒ First innovation initiative tested, in scale up mode across the whole organization

Sustainability• Approved the updated Sustainability Plan integrated with the 2018-2022 Strategic Plan• Voluntary assessment on sustainability topics by an independent Rating Institution (Standard Ethics) • “Missione Terra” event to increase awareness of sustainability issues, + 800 students involved• New campaign on circular economy matters (Viaggio della Materia) on web, social and mass media

• Aggregations: Northern Lombardy Multiutility project approved by municipalities • EPCG: agreement on accelerated put option execution with local government

Annexes

Update on Strategic Progress

• Boosted CAPEX execution (Unareti +30% vs 2017Q1)

• Val Trompia water treatment plant – project launched, work starting oct 18

• Heat storage project started

21

CONTACTS

A2A Investor Relations Team

Mail: ir@a2a.eu

Phone: +39 02 7720 3974

http://www.a2a.eu/en/investor/

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 itnor 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 meetingsmay include forward-looking information based on A2A’s current beliefs and expectations. These statements are based on current plans, estimates, projections, and projects and therefore you shouldnot 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 materiallyfrom 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 includingelectricity, gas and coal, the competitive market and regulatory factors. Moreover, forward-looking statements are current only at the date on which they are made.