Company profileFebruary 2019

Profile, structure, and governance

Who we are

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The company at a glance

Alpherg S.p.A. is an independent energy company operating in trading, wholesale and

supply of natural gas and power at a European level, with a special focus on the Italian

market.

Alpherg S.p.A. has two renowned shareholders: ENOI and Trafigura, who have decided

to enhance their business relationship, after several years of profitable collaboration.

Enoi holds a direct majority over the joint-venture, whilst Trafigura owns a significant

minority stake through Trafigura Ventures V B.V.

Alpherg can leverage both on the well-known experience and the competitive

positioning that ENOI has gained in the last two decades across the main European

energy markets (1,000+ TWh traded, 35+ bln. € of revenues developed, 300,000+ deal

done) and the unique global outlook that Trafigura has proven to master throughout

the multiple and successful businesses under its hat (one of the largest physical

commodities trading groups in the world, offices in 35 countries, over USD 180 billion

revenues in the last financial year). Trafigura will provide business opportunities related

to LNG Short-Term optimization.

Company Profile

4

Governance | Risk Management

GOVERNANCE - The Group has implemented a governance system in which different

corporate bodies interact systematically, each with its own functions, ensuring that the

company may prosper and sustain all of its shareholders. An Investments Risk and

Credit Committee is responsible for defining client portfolio management strategies as

well as monitoring their activities and supervising counterparty credit policies. The

committee is also in charge of reviewing and approving all relevant investment

opportunities.

RISK MANAGEMENT - Energy trading, sales, and supply activities expose us to a

certain number of risks such as the oscillation of market prices and currencies,

counterparty risk, as well as operational risk. A team reporting to the Chief Risk Officer

manages all these risks.

Company Profile

Business approach, activities, and services

What we do

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Business approach

Our business approach is based on three elements:

Deep market knowledge

Recognized ability of our employees

Committed passion for facing challenges

Company Profile

7

Business

Business activities are focused on trading, wholesale and supply of natural gas and power in

all major European markets. The Company has a deep knowledge of structured products

and services (in particular those with a duration of up to 12 months).

The nature as an independent company gives us the freedom to move with flexibility,

ensuring a 24/7 support system to our counterparties, with the objective of providing only

the best of solutions.

The “operations & logistics” team guarantees the precise operational execution of each

deal, thanks to its competences and the strength of several transportation and storage

arrangements – all over Europe.

The “operations & logistics” team coordinates with the “sales & origination” team in order

to create “ad hoc” products developed for the special needs of each customer. Alpherg has

vast experience concerning complex products and structured services in Europe's main

power and gas markets.

Company Profile

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Business footprint in Europe

Company Profile

Gas & Power

Gas

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Numbers

Company Profile

10+ hubs 200+ counterparties100+ deals done per dayTWh traded as of Mar. ’19 (1)

Netherlands

30%

Austria

18%

Italy

28% (2)

Germany

15%

Others

9%

____ Initial business relevance of different hubs ___

(1) Company’s business plan

(2) Italy remains the most active market for final clients deliveries

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Our business – natural gas (and LNG)

Alpherg operates as a natural gas merchant in more than 10 European Countries.

The Gas Business Group may be subdivided into three main business lines:

➢ Gas Sales: buy and sell side activity on both prompt and forward markets, all originated

by the sales desk. Sales are subdivided into two categories:

➢ Flows: with delivery that take place on international virtual gas trading hubs.

Mainly forward contracts.

➢ Industrials/Wholesale: with delivery to an end user’s own plant or municipal gate

delivery point.

➢ Gas Trading: physical and financial trades executed on international virtual gas trading

hubs and physical delivery points as well as on OTC markets, to cover and manage sales

volumes and optimize storage and transportation facilities.

➢ Gas Transit and Storage: contracted short term transportation and storage capacities,

managed by the Trading and Logistics desks.

In the LNG business, Alpherg can rely on Trafigura’s recognized solid know-how and global

reach* but also on the experience that ENOI has gained throughout the years in Italy and

Europe.

Company Profile * Trafigura is the world’s leading independent trader, with over 8.1 M metric tonnes of LNG in 2017

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The company trades physical power in all main European markets namely: Austria,

Switzerland, Italy, France and Germany (via EPEX and IPEX). Alpherg can also make financial

trades over all the rest of Europe as an EEX market participant.

This allows us to offer our customers interesting options with a wide geographical scope, as

well as various reliable and flexible solutions. Furthermore, Alpherg buys and sells transport

capacity through specialized platforms which are at our customers’ disposal.

The Company is active in the service of buying electricity from different kind of production

facilities*. Alpherg is able to offer tailor made proposals, with fixed or index-ranged prices,

also structuring them in different areas or for established time periods. The portfolio is

strategically diversified by type of facility and geographical area.

Company Profile

Our business – power (and PPA)

*wind, photovoltaic, cogeneration, biomass and hydro - from 1 to 100 MW

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In addition to trading and wholesales activities, Alpherg supplies also big industrial

customers and resellers, both with natural gas and power.

Alpherg’s clients have the opportunity to buy energy with a direct connection to the most

relevant and advanced international markets; resulting in very competitive prices and high

levels of efficiency.

Resellers can access Alpherg’s supply through an innovative digital platform (“EnergySuite |

Smart Supply”), a business-to-business gas & power e-commerce, where Clients can buy

energy easily by selecting from a wide range of formulas (fixed or different index-linked

prices).

Clients (Industrials or Resellers) with index-linked contracts can choose «fixing options» and

manage their supply through a specific digital solution named “EnergySuite | Smart

Portfolio Mgmt”.

Alpherg has a solid experience in the management of resellers’ needs also because ENOI

has founded and developed a couple of downstream company*

Company Profile

Our business – large clients (industrials & resellers)

* Compagnia Energetica Italiana SpA and Spienergy SpA – their activities have been recently sold.

Corso Europa, 2 - 20122 Milan (IT)

info@alpherg.eu