9M 2017 Consolidated Results

Milan, November 13th,2017

2

Highlights of the period

3

+ -Hydro volumes

CCGT performance, Volumes, Spot Market and Ancillary Services

LGH: standalone growth and FY consolidation

Non recurring YoY comparison

Organic growth in DH, Networks and Waste

EPCG put option exercise –deconsolidation as of July

9M 2017 HIGHLIGHTS

San Filippo del Mela «merchant» in Q3 2016

Feed in tariff/Green Certificates

With impact on 2017 9M economics

MoU with “Utilities of Northern Lombardy”

extended to December

Set up of A2A Rinnovabili and M&A – First step in PV Renewables

Ongoing developments ininvestments for waste treatment plants

Tender offer on 2019 and 2021 bonds + new year issuance With impact on

2017 4Q economics

4

9M 2016

281

9M 2017

319

FY 2016

3,136

9M 2017 Before

deconsolidationof EPCG &

Consolidation of REN

3,012

Change in perimeter

240

9M 2017

3,252

9M 2016

872

9M 2017

888

9M 2016

3,482

9M 2017

4,261

KEY FINANCIAL INDICATORS

REVENUES EBITDA

GROUP NET INCOME

NET FINANCIAL POSITION

€M

+22%

-30%

+2%

GROUP ORDINARY NET INCOME*

+14%

-124€M

* Excluding extraordinary items

9M 2017 HIGHLIGHTS

+116€M

5

Analysis of results

6

2016

872

-82

EPCGQ3

2016Ordinary

777

Generation&

Trading

-4

9

Waste

25

Networks&

DistrictHeating

43

SmartCity

-1

Corporate

8

EPCG1H

-23

834

54

2017

888

2016Non

recurringitems

-13

EnergyRetail

2017Ordinary

2017Non

recurringitems

+16

+57

9M CONSOLIDATED RESULTSGROUP EBITDA

€M

• Generation in line with 2016, much better than expected• Solid growth in all other BU’s• EPCG deconsolidated as of July 1°

7

2016

273

2016Non

recurringitems

-16

2016Ordinary

257

-28-9

6 113

-7

13

LGH

5

2017Ordinary

253 2

2017

255

Environ.Market

Plants'Hedging

andDispatching

TradingPortfolio

Other Fixedcosts

SFMEBITDA

GasMargin

2017Non

recurringitems

-18

-4

9M CONSOLIDATED RESULTSGENERATION & TRADING EBITDA

• Excellent CCGT performance on both MGP and MSD, in all quarters• Hydro: lower volumes. Strong market prices offset by hedging• San Filippo «Merchant» margin in Q3 2016 • Lower environmental markets margin• Strong results on Gas optimization

€M

8

2016

100

-7

2016Ordinary

93

PowerMarket

1

GasMarket

2

FixedCosts

-4

Other

0

LGH

10

2017Ordinary

102

12

2017

114

2016Non

recurringitems

2017Non

recurringitems

9M CONSOLIDATED RESULTSENERGY RETAIL EBITDA

+14

+9

• Free market customer base: +148K• Reduction in Unitary Margins mainly due to higher unbalancing costs

€M

9

2016

110

57

174

2016Non

recurringitems

-8

2016Ordinary

57

102

1166

Collection

-3

UrbanWaste

TreatmentPlants

5

OtherTreatment

Plants

4

InternationalProjects

1

LGH

18

2017Ordinary

107

54

23

191

2017Non

recurringitems

4

2017

110

54

24

195

15

11

5

5

2

5

2

• Positive treatment plants margins from higher prices and quantities

9M CONSOLIDATED RESULTSWASTE EBITDA

Collection +4.2€M

Treatment +13.8€M

+21

+25

€M

Other Treatment Plants

Collection

Urban Waste Treatment Plants

International Projects

10

2016

11

36

2

91

80

73

293

2016 Non

recurringitems

-51

2016Ordinary

11

38

2

91

79

21

242

ElectricityNetworks

2

GasNetworks

4

WaterCycle

8

DistrictHeating

14

Public Lighting

0

LGH

15

2017Ordinary

17

52

1129

83

93

285

2017Non

recurringitems

36

2017

19

82

1128

86

95

321

+28

+43

Gas NetworksElectricity NetworksWater Cycle Public Lighting Heating

• DH: Consul System FY consolidation and performance. White Certificates optimization• Water Cycle: tariff increase

9M CONSOLIDATED RESULTSNETWORKS AND DISTRICT HEATING EBITDA

LGH (Networks & Heating)

€M

11

2016

13

35

48

Q3 2016

-13

Generationand Retail

-23

Distribution

0

2017

12

-36

9M CONSOLIDATED RESULTSEPCG EBITDA

Delta 1H: -23€M

€M

1H

Q3 2016

12

9M 2017

EBITDA

888

D&A

-309

Risk

Provisions

-24

Non rec.

transact.

1 4

Net

FinancialExpenses

-88

-93

EBT

379

Taxes

-153

Net result

fromdiscontinuedoperations

1

Minorities

-1

9M 2017

NetIncome

226

Investments

carriedat equity

EPCG

write-downand

put option

discount

FROM EBITDA TO GROUP NET INCOME

9M CONSOLIDATED RESULTS

9M 2016 872 (308) 484 1 (17) 3234 (96)(40) (145)52

(1) -93€M, of which:• -60€M D&A (EPCG write-down)• -33€M Net Financial Expenses

-

(1)

€M

13

2016

14

3

63

130

52

16

233

2017

25

6

63

153

14

6

4271

Generation &Trading

Energy Retail

Waste

Networks and DistrictHeating

Corporate

A2A Smart City

EPCG

2016

22

27

86

98

233

2017

22

21

104

124

271

Maintenance

Development

Mandatory

M&A

BREAKDOWN BY ACTIVITY BREAKDOWN BY BUSINESS

+38 +38

CAPEX

9M CONSOLIDATED RESULTS

€M

14

9M 2017

EBITDA

888

Change

in NetWorkingCapital

-26

Change in

otherassets/

liabilities

-127

Use of

Funds

-21

Tax Paid

-104

Net

FinancialExpenses

-62

FFO

(1)

548

Capex

-271

Dividends

-153

Net

FreeCashFlow

124

Change

inperimeter

-240 -116

NFPvariation

NET FREE CASH FLOW

9M CONSOLIDATED RESULTS

(1) Funds from operations after working capital change

9M 2016 872 (68) 483 (233) -469 -345(56) (56)(93)(116) (126) 124

€M

15

Closing remarks

16

CONF. CALLJULY 31st, 2017

NEW GUIDANCE

1.165 1.185€M

GUIDANCE IMPROVED

~1.200

~60€M non recurring

~55€M non recurring

~30€M green certificates postponed to 2018

2017 EBITDA GUIDANCE

17

MARKET PRICES

PRODUCTION VOLUMES

MSD & CAPACITY

STABLE / BETTER

BETTER

SLIGHTLY LOWER

FAVOURABLE 2018 GENERATION OUTLOOK

Comparisons vs 2017E and 2018 (as implied in the 2017-2021 business plan)

18

Annexes

19

P&L

EBITDA

Ordinary D&A

Provisions

EBIT

Net Financial Expenses

Associates & JV

EBT

Taxes

Minorities

GROUP NET INCOME

9M 2016 9M 2017 %

REVENUES

CHANGE

Result from non recurr. transactions

Net result from discontinued operations

EPCG write-off

9M CONSOLIDATED RESULTS

872

(308)

(40)

524

(96)

4

484

(145)

(17)

323

3,482

52

1

-

888

(309)

(24)

495

(121)

4

379

(153)

(1)

4,261

1

226

1

(60)

+1.8%

-0.3%

+40%

-5.5%

-26.0%

-

-21.7%

-5.5%

+94.1%

+22.4%

-1

+16

-29

-25

-

-105

-8

+16

+779

-98.1%-51

-30.0%-97

--

+16

n.s.-60

€M

20

P&L

EBITDA

Ordinary D&A

Provisions

EBIT

Net Financial Expenses

EBT

Taxes

Minorities

GROUP NET INCOME

3Q 2016 3Q 2017 %

REVENUES

CHANGE

Net result from discontinued operations

3Q CONSOLIDATED RESULTS

258

(110)

(4)

144

(33)

111

(39)

(4)

69

1,159

1

239

(100)

(13)

126

(25)

101

(34)

+2

1,343

69

-

-7.4%

+9.1%

n.s.

-12.5%

+24.2%

-9.0%

+12.8%

n.s.

+15.9%

+10

-9

-18

+8

-10

+5

+6

+184

--

n.s.-1

-19

€M

21

258

-2243

-33

3 39

-1

6 2309 239

3Q 2016 3Q 2016Non

recurringitems

EPCG

-13

3Q 2016Ordinary

Generation&

Trading

EnergyRetail

Waste Networks&

DistrictHeating

SmartCity

Corporate 3Q 2017Ordinary

3Q 2017Non

recurringitems

3Q 2017

-19

-13

3Q CONSOLIDATED RESULTSGROUP EBITDA

€M

• Generation: margin reduction due to San Filippo running as «Merchant» in Q3 2016 and lower environmental markets, partially offset by good CCGT performance

• Networks & District Heating: Consul System consolidation (DH) and Water Cycletariff increase

22

Intangible Assets

Shareholdings and Other Non Current Financial Assets

Other Non Current Assets/Liabilities

Deferred Tax Assets and Liabilities

Provisions for Risks, Charges and Liabilities for landfills

Employee Benefits

NET FIXED CAPITAL

Inventories

Trade receivables and other current Assets

31.12.2016Restated

30.09.2017 %

Tangible Assets 5,129

Current tax Assets/Liabilities

WORKING CAPITAL AND OTHER CURRENT ASSETS/LIABILITIES

TOTAL CAPITAL EMPLOYED

Equity

Net Financial Position

TOTAL SOURCES

1,704

80

(82)

341

(671)

(365)

6,136

159

2,210

37

278

6,415

3,279

3,136

6,415

Trade payables and other current Liabilities (2,128)

Non current Assets /Liabilities held for sale 1

4,516 -11.9%

1,782 +4.5%

73 -8.7%

(84) -2.4%

321 -5.8%

(622)

(331) +9.3%

5,655 -7.8%

189 +18.8%

1,771 -19.8%

48 +29.7%

322 +15.8%

6,194 -3.4%

2,942 -10.2%

3,252 +3.7%

6,194 -3.4%

(1,686) +20.7%

+7.3%

217 n.s.

BALANCE SHEET

9M CONSOLIDATED RESULTS

€M

23

2017

38

38

2018

300

84

384

2019

567

88

655

2020

135

135

2021

430

85

515

2022

500

82

582

2023

300

81

381

2024

300

61

361

2025

300

61

361

2026

45

Beyond

2026

98

179

277

45

Bonds

Loans

GROSS DEBT MATURITIES AS OF 30/09/2017

9M CONSOLIDATED RESULTS

€M

• Incorporation of A2A Rinnovabili (100% A2A S.p.A.) and purchase of 17MW of photovoltaic plants

• Flexibilitation of CCGT Sermide power plant concluded and continuous improvement on all the other CCGT plants

• District Heating grid heat reduction pilot project financed by the EU H2020 project TEMPO

RELAUNCH

• 1st Plastic treatment plant (Cavaglià): civil works completed

• 2nd Plastic treatment plant (Muggiano): authorization obtained

• Electric primary station Benedetto Marcello fully operational

• Approval from the Local Authority of Aspem’s proposal about new higher water services tariff

REGENERATION

RESHAPE• Public Lighting: Garbagnate tender won

• Mincio Trasmissione’s asset sold to Terna

UPDATE 3R

Note: the projects are related to 3Q 2017

DISCIPLINE, DIALOGUE &

DIGITAL

• Two new District Heating Control Rooms implemented in Milan and Brescia

• N.106 schools in Brescia Municipality interconnected with A2A fiber-optic network and related services

• Agreement signed between LGH and Politecnico of Milan for the development of machine learning algorithm for customer satisfaction activities

• Work Force Management System (WFM) fully operational in BU Networks

• Started phase 3 of programme LiHS (Leadership in Health and Safety) and the development of a gamification app to promote the culture of safety

• Cross-service (gas, power) process integration: preliminary agreement signed by Labor Unions

• Started a pilot project on advanced water grid control and water smart meters in Brescia area

• Additional savings expected from En&A extension in LGH: detailed design of new initiatives for improvement has started

• Operational excellence program (Mistral) set up, first 35 key target processes identified; pilot initiatives and change management program launched

ADDITIONAL

UPDATE 3D

• A2A, ACSM-AGAM, ASPEM, AEVV and Lario Reti Holding – deadline of MoU extended to the end of 2017

• Final Agreement with International Player for Turn-Key supply of bio-drying technology on the Spanish market

Note: the projects are related to 3Q 2017

26

Operational annexes

27

9M 2016 9M 2017Δ vs 2016

Δ% vs 2016

Aug-Sep 2016 LGH

9M 2017 LGH

9M 2016 A2A+LGH

9M 2017 A2A+LGH

Δ vs 2016

Δ% vs 2016

A2A Group Thermal production GWh 5.753 8.205 2.452 43% 5.753 8.205 2.452 43%of which

CCGT production GWh 3.043 5.942 2.899 95% 3.043 5.942 2.899 95%

Coal production GWh 1.623 1.398 -225 -14% 1.623 1.398 -225 -14%

Oil production GWh 1.087 865 -222 -20% 1.087 865 -222 -20%

A2A Group Hydro production GWh 3.499 2.745 -755 -22% 18 91 3.518 2.835 -682 -19%

Wholesale electricity sales and Foreign Markets GWh 6.078 6.052 -26 0% 18 91 6.096 6.143 47 1%

Ipex sales GWh 6.371 6.862 492 8% 0 0 6.371 6.862 492 8%

Electricity sales GWh 6.043 5.649 -394 -7% 106 483 6.149 6.132 -17 0%

Gas sales Mmc 788 835 47 6% 15 222 804 1.057 253 32%

Electricity distributed GWh 8.210 8.360 150 2% 68 326 8.278 8.686 408 5%

Gas distributed Mmc 1.169 1.204 35 3% 42 397 1.210 1.601 391 32%

Water distributed Mmc 47 52 5 11% 47 52 5 11%

Heat volumes sales GWht 1.445 1.528 83 6% 7 149 1.452 1.677 225 16%

Cogeneration electricity sales GWh 114 121 6 6% 3 51 118 172 54 46%

Collected waste Kton 1.009 988 -21 -2% 44 201 1.053 1.189 136 13%

Waste disposal Kton 1.819 2.014 195 11% 127 534 1.946 2.548 602 31%

WTE and other plants electricity production GWh 1.217 1.199 -18 -1% 31 145 1.248 1.344 96 8%

WTE and other plants heat production GWht 796 819 24 3% 8 52 804 871 67 8%

EPCG Thermal production GWh 801 496 -305 -38% 801 496 -305 -38%

EPCG Hydro production GWh 1.327 488 -839 -63% 1.327 488 -839 -63%

EPCG electricity sales GWh 1.747 1.240 -507 -29% 1.747 1.240 -507 -29%

(1) Net of intermediated Ipex volumes

(1)

VOLUMES

9M CONSOLIDATED RESULTS

28

ENERGY SCENARIO

9M CONSOLIDATED RESULTS

(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

Average data9M

20169M

2017D % vs

2016

Brent $/bbl 43,0 52,6 22%

CO2 - EU ETS cost €/Tonn 5,3 5,3 -1%

Green Certificates €/MWh 66,4 0,0 -100%

€/$ €/$ 1,1 1,1 0%

Brent € €/bbl 38,5 47,4 23%

PSV(1) €/MWh 14,6 18,8 29%

AEEGSI Gas Tariff (2) c€/mc 15,4 18,3 19%

Coal € (API2) €/Tonn 45,9 73,2 59%

PUN baseload(3) €/MWh 38,3 51,3 34%

PUN peak(3) €/MWh 42,3 57,5 36%

PUN off-peak(3) €/MWh 36,2 47,8 32%

CCGT gas cost(4) €/MWh 35,1 44,3 26%

Spark Spread CCGT_PSV vs Baseload €/MWh 3,2 7,0 n.a.

Spark Spread CCGT_PSV vs Peakload €/MWh 7,2 13,2 83%

Spark Spread CCGT_PSV vs Off-Peak €/MWh 1,0 3,5 n.a.

Clean Spark Spread vs Baseload €/MWh 1,2 5,0 n.a.

Clean Spark Spread vs Peakload €/MWh 5,2 11,2 n.a.

Clean Dark Spread vs Baseload(5) €/MWh 6,3 9,1 44%

29

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.