June 2018

EBITDAHigher and more

stable margin

CAPEXInvesting more

with quality

DPSDividends

growing steadily

+ 18% + 60%+ 61%

NFP/EBITDACapital structure

reinforced

- 18%

ROIGrowing, stable

return >10%

+ 52%

2017 vs. 2014 - Delivered Industrial and Financial Value

A2A

&

LGH

M&A - Largest territory aggregation

2018 CompanyProfile

+ other 13 acquisitions

0

500

1,000

1,500

2,000

2,500

€M

15,555

2,022

1,604

The market has rewarded A2A Strategy2017 EBITDA - A2A a highly diversified utility

A2A shareholding structure(1)

CREDIT RATING

Standard & Poor’s

BBB/A-2

Outlook Stable

Moody’s

Baa2

Outlook Stable

Financial Highlights – Growth oriented multi-utility

2

A2A - THE LEADING ITALIAN LOCAL UTILITY

60

80

100

120

140

160

180

200

A2A

FTSE MIB

EUROSTOXXUTILITIES

FTSE ITALIAALL-SHAREUTILITIES

17 June 2014 = 100 (first appointment of current top management)

(1) At December 31, 2017. Recent updates available at the following link.

Shareholding Pact on 42%

Source: A2A analysis on Company data

1,211985

840 820776

472

84 39 22

(1) Ordinary EBITDA Equal to 1,164 €M, calculated as Reported EBITDA (1,211 €M) net of non recurring items (64 €M), EBITDA from “Corporate” (-29 €M), EBITDAfrom EPCG (12 €M). Put option on EPCG stake was exercised by A2A in July 2017

(2) New perimeter of the old Energy Retail BU, including also Energy Efficiency, Public Lighting, Smart City and E-Mobility.

Sources: A2A Strategic Plan, 2017 Results & Business Plan Update; Company Annual Reports

2017 OrdinaryEBITDA (1)

3

GENERATION & TRADING

Fuel sourcing

Power generation (Thermoelectric and RES)

Whole-sale & Trading

353 €M 30%

MARKET(2)

Electricity andgas sales

free market regulated market

WASTE

173€M 15%

Industrial Waste Treatment

Collection and street sweeping

Urban Waste Treatment

Material Recovery

Electricity and Heat production

NETWORKS

Integrated Water Cycle

Electricity distribution

Gas distribution

HeatDistribution

Cogeneration, heat recovery and

sales

Public Lighting

NETWORKS HEAT

78 €M 7%309 €M 26%251 €M 22%

New Energy Solutions (Energy Efficiency,

E-mobility and Smart City)

Flexible and greener

energy

More solutionsto involve customers

Value from endto beginning

Smarter and more reliable

A2A unique business portfolio with a well balanced volatility/growth mix

Maximization of cross-BU synergies

GENERATIONMARKET

WASTE

NETWORKS

EBITDA Growth ’17-’22E

Vo

latility

1st energy producer from WTE plants

2 GW hydro installed capacityIncumbent in the

key areas 1st domestic operatorLeader for quality and customer satisfaction

A2A - THE LEADING ITALIAN MULTI-UTILITY

4

G

G

GG

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E G

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G DH

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C

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C

C

Italy Lombardy

WasteWaste collectionTreatment plantsBiogas/Biomass plantsWaste-to-Energy

GenerationHydroelectricCCGT CoalFuel OilSolar

E

GW

PL

C

DH

Technological partnerships abroad on waste treatment plants (UK, Spain and Greece)

NetworksElectricityGasWaterPublic LightingCogen. & thermal plantsThermal solar plantsDistrict Heating

A2A operates throughout Italy, predominantly in Lombardy

A2A GEOGRAPHICAL PRESENCE

A2A: ASSET PORTFOLIO

5

First class asset base - plants and networks Long term concessions increase visibility

A2A: NEW STRATEGIC FRAMEWORK AND KEY ACTIONS

6

Strategic VIEWaligned to medium-long term trends

(looking forward 2030)

MAININDUSTRIAL TRENDS

Landfills phase out

Acceleration in sorted collection

Waste system balance and material recovery

Decarbonization

Energy Democracy

Reduction of PV and windLCOE

Energy Efficiency

Smart Services

Green mobility

CIRCULAR ECONOMY

SMART SOLUTION

ENERGY TRANSITION

• Multi-business operation synergies (e.g. smart meters deployment, gas/ee integration in Unareti)

• Adoption of automated and digital solutions for asset and workforce management

MARKET

GENERATION WASTE

NETWORKS

• Further expansion of RES platform

• Conventional plants reconversion

• Leadership consolidation in flexible CCGT plants, optimizing risk/return ratio thanks to Capacity market

• Improvement of gas sourcing

• Match of growing need for peak capacity

• Exploration of innovative flexibility services

GREENERPORTFOLIO

LEADERSHIPIN GAS-FIREDGENERATION

ADEQUACY & FLEXIBILITY

PROVIDER

FROM WASTE TO COMMODITY

END-TO-END PARTNER FOR

URBAN SERVICES

CONTINUOUS TECHNICAL

INNOVATION

• Become leader in recycling, selling high-quality secondary raw materials

• New WTE capacity to maintain safety of the Italian waste treatment system

• Enlarging geographic presence, leveraging on value chain integration

• Smart and innovative solutions for our territories

• Maintain plants at best available technologyfor environment sustainability

• Improve circularity with innovation

CUSTOMER FOCUS

• Outstanding client service, with new multi-channel customer experience

• Preservation of excellent operations

• VAS in safety, comfort, energy-saving

• Energy advisor for SMEs and large enterprise

• Digitalization to enhance service/acquisition

BOOSTIN NEW

SERVICES

• New services: flexibility, DERs and storage

• New EPCs in energy efficiency services

• Organic growth in Public Lighting

• Expansion of electric mobility business

M/L TERM CHALLENGE

• Innovation & Digital to develop new services

• Unlocking IoT opportunities

CROSS-BUSINESS SYNERGIES

SMART GRID AND QUALITY

IMPROVEMENT

GASTENDERS

• Achieve smart and resilient networks

• Improve energy efficiency of DH networks

• Develop water cycle performance

• Selective growth in high-priority ATEMs

• Focus on geographical consolidation

a2a T

2018 2022

TTransformation

a2a E

2018 2022

EExcellence

a2a C

2018 2022

CCommunity

Sustainability Inspiring principle of enterprise development

business strengthening& change

agile organization, leader in operational excellence

attract and empower people engage external ecosystem

Further information on A2A strategy is availableon the Group website at the following links:

Strategy Section

New Strategic Plan 2018-2022

7

A2A: STRATEGIC PLAN IN A NUTSHELL

2018 Guidance

5.822%

2017

6.722%

2018

~7.522% 2019

min +5% yearlymin 24%

2020

2022

A2A DIVIDEND PER SHARE (€c)FFO/NET DEBT

Better dividends visibility

with stronger capital structure

Dividend Policy

KEY FINANCIAL HIGHLIGHTS – 2017 to 2022

-29 -14

353

-592

9559

15

348

173 265

251

346

387

445

CAGR +4.1%

€M

Generation Market Waste Networks Other2017 Recurring

2022

+256 €M

1,135

1,391

EBITDA 2017-2022

EBITDA 1,150 – 1,180 €Mplus 20-30 non recurring

Net Income 360 – 390 €M

CAPEX 600+ €M(2)

Net Free Cash Flow(3) 0 – 100 €M

32%

30%

16%

22%

1,391

2022

Merchant High Volatility

Merchant Low Volatility

Quasi Regulated

Regulated

(2) Incl. ~60 €M M&A;(3) Excluding change in perimeter

2017

2022

Ordinary EBITDA

1.1 € Bn

~1.4 € Bn

Ordinary Net Income

293 €M

482 €M

Net Debt

3.2 € Bn

~3.0 € Bn

CAPEX 2018-2022: ~2.8 €Bn(plus 0.5 €Bn of RES development)

ROI stable >11%

NFP / EBITDA

2.7 x

~2.2 x

Excellence - Agile organization

MISTRAL

En&A

2015 2016 2017 2018 2019 2020 2021 2022

~60-70 €M net additional EBITDA fully consolidated

Almost complete coverage of Lombardy

Open to new aggregation opportunities

Additional Projects – Aggregations

Northern Lombardy Multiutility

47

82

130153

175201

219 227

€M

Key Levers: Digitalization & technological innovation

En&A project: 65% of target savings already achieved

Strong confidence to deliver higher quality results

Potential for upsides including local aggregations

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A2A SUSTAINABILITY EMBEDDED IN STRATEGIC PLAN

GENERATION MARKET WASTE NETWORKS

60+ core goals built on our sustainability pillars

SMART GRID AND SERVICESCIRCULAR ECONOMY DECARBONIZATION PEOPLE INNOVATION

ONLINE MEMBERS OF A2A ENERGIA COMMUNITY

K

SMART WORKING% on total employees applicable

MATERIAL RECOVERY RATE IN A2A PLANTS ON TOTAL WASTE COLLECTED

CO2 /kWh CARBON INTENSITY

g/kWh

• The shift to a traditional governance model, occurred in June 2014, facilitates decision making and emphasizes the central role of the Board of Directors

• 100% executives with sustainability MBOs (weight increased from 5% to 10% for the CEO/Managing Director)

• A2A adopts a prudent energy risk policy, part of its ERM model, whose purpose is to further develop and integrate risk management into the business process

% sorted collection

New recycling plants

Project on reduction/ reuse/recycle

Water network losses

Depurated waste water

Digital users

# LED lighting points

EV charging stations

Contact centre quality

Smart bins Smart meter

Service interruption

Smart grid

GOVERNANCE

CO2 emissions reduction Energy efficiency projects

Green energy sold to Mass Market

Low-impact vehicles DH users

Dispersed heat recovery and DH non-fossil sources

Smart city projects

Banco dell’Energia step 2

Roadwork siteinspections

Reduction of the accident rate

Environmental education

CIRCULAR ECONOMY

DECARBONIZATION

SMART GRID AND SERVICES

PEOPLE INNOVATION

E

S

G

Integration of Sustainability Plan and Financial BP @2022 in line with 2030 sustainability goals