Company presentation 26 May 2020 - Falck Renewables

Company presentation

 26 May 2020

Forward-Looking Statements

This presentation contains certain forward-looking statements that reflect the Company’s management’s current views with respect of future
events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are based on Falck
Renewables S.p.A.’s current expectations and projections about future events and have been prepared in accordance with IFRS currently in
force and the related interpretations as set out in the documents issued to date by IFRIC and SIC, with the exclusion of any new standard
which is effective for annual reporting periods beginning after January 1st 2020. Because these forward-looking statements are subject to
risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements
due to any number of different factors, many of which are beyond the ability of Falck Renewables S.p.A. to control or estimate precisely,
including changes in the regulatory environment, future market developments, fluctuations in the price and availability of fuel and other
risks. You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the
date of this presentation. Falck Renewables S.p.A. does not undertake any obligation to publicly release any updates or revisions to any
forward-looking statements to reflect events or circumstances after the date of this presentation. The information contained in this
presentation does not purport to be comprehensive and has not been independently verified by any independent third party.

This presentation does not constitute a recommendation regarding the securities of the Company. This presentation is not intended to
be/does not contain any offer, under any applicable law, to sell or a solicitation of any offer to buy or subscribe any securities issued by
Falck Renewables S.p.A. or any of its subsidiaries.

Neither the Company nor any member of the Company’s Group nor any of its or their respective representatives, directors or employees
accept any liability whatsoever in connection with this presentation or any of its contents or in relation to any loss arising from its use or
from any reliance placed upon it.

2

Agenda

 o Group Overview 4

 o Roadmap 2025 15

 o 1Q 2020 Results 29

 o Appendix 35

3

Group Overview

Governance & Shareholders
 Board Composition Current Shareholders Base
 Executive Director
 Non Executive Director
 Independent Dir. according to T.U.F.
 and Corporate Governance Code
 JP Morgan AM
 5.37%

 Treasury shares
 0.76%

 Falck SpA Free float
 60.00% 33.87%

 The Board of Directors consists of twelve members. Seven of them are
 Independent Directors (58%) and five are women; one was appointed Lead
 Independent Director.

 The new Board of Directors – as approved at The Shareholders’ Meeting on 7
 May 2020 – reflects the group’s international presence and includes members
 with relevant experience.
5

Falck Renewables at a Glance
 Renewable player
 with a continued 1,133 MW ~2 GW 95 MW
 Asset Development Under
 expansion …. base pipeline construction
SHARED VALUE WITH STAKEHOLDERS

 SUSTAINABILITY AT THE CORE
 … diversified in
 Services and ~ 1 GW 8th C&I
 Business Energy dispatched Market operator Customers
 Solutions…. in 2019 in Italy in 2019 managed

 … committed to
 push on
 > 90% First battery
 digitalization & Integrated with Solar PV
 Enabling operational Employees working
 Innovation and Commissioned
 excellence from home
 in 2019

 ….financially 3.5x 72% € 325M
 strong NFP/EBITDA Gross Debt Committed
 in 2019 hedged credit line

 6

7
 Net Financial
 EBITDA
 Position
 (€M)
 Main Indicators 2016 - 2019

 Net Invested Group Net
 Capital Earnings
 1,038
 1,087
 1,103
 1,328

Our Commitments to sustainability
 To us, sustainability is the lasting generation of shared value for each stakeholder while maintaining
 the conditions that allow for such a generation

 shared value creation
 asset operational efficiency ECONOMIC & ENVIRONMENTAL environmentally sustainable management
 PRODUCTIVE & CLIMATE practices
 sustainable asset development
 greenhouse emissions reduction
 responsible clients CAPITAL CAPITAL
 KPI: distributed
 financially sustainable growth KPI: avoided GHG
 added value
 (€M) emissions (MtCO2eq)
 innovative
 competent
 caring
 KPI: hours of
 upskilling and
KPI: share of projects with a reskilling per
 significant community SOCIAL & HUMAN employee (hrs/Y)
 engagement program (%) HR development
 local communities support RELATIONAL CAPITAL
 diversity & work-life balance
 local procurement & employment CAPITAL

 WE ARE DIRECTLY CONTRIBUTING TO
 9 U.N. SUSTAINABLE DEVELOPMENT GOALS
 8

Our business model
 JDAs
 like

 Asset Development
 Digital Factory
 Energy Solutions
 Engineering & Construction
Activities

 Smart Energy Technologies
 Asset Management &
 Technical Advisory
 Digital & Advisory Services

 Market Access
 PPA dispatching hedging balancing aggregation

 Investors in new large renewables capacity
Clients

 + Falck Group Energy Intensive Commercials & Industrials
 + ENI
 + others
 9
 Enablers of Decarbonization

Today’s Portfolio:1,133 MW in Operation

 354 MW 98
 292 16 46 354

 413 413

 113 113

 413
 98 98
 47 50
 59 59°

 50 50

 47 47

 TOTAL 959 129 46 1,133*

 59
 113 +95 MW Under Construction

 * Includes minority stake in La Muela (26%) wind farm and Frullo Energia Ambiente (49%) for a total amount of 37MW
10 ° Includes 10 MW of Carrecastro wind farm in opertionn since 7 February 2020

How do we optimize our portfolio
 O&M Service Scope Review
 (calculated on wind farms)
 Asset Remote Monitoring:
 ❑ Operations real time overview
 ❑ In depth performance analysis
 ❑ Automatic KPIs calculation
 ❑ Predictive maintenance*
 ❑ Repairs/retrofits effectiveness In house
 follow up responsibility
 for part or all
 75%
 (favourite
Asset Management & Operational 50% option) main
 components
Control:
❑ Contract management 5%
❑ Site management
❑ On site quality inspections 2017 2019 2025
 actual actual target
❑ Assessment and follow up on
 technical improvements SEAnet ** 95.20% 96.10% >97%

 O&M/MW (€k)*** 32

How do we develop new assets
 Greenfield, Partnerships and M&A
 Current approach

 Greenfield Energy
 Management,
 Partnerships
 PPA pricing
 / JDAs
 M&A

 Greenfield
 Partnerships
 / JDAs
 M&A
 Implemented Development,
 Engineering,
 In process / potential
 Construction, Finance
 and PPA origination
 Asset Management
 and Advisory

 presence on the entire value chain
12
 … and in strong wind and solar markets

How do we create value for energy intensive clients

 Services Offered Description Focus Clients
 Balancing Service Provider
 Market
 Corporate Power Purchase Agreement FKR
 Access
 Power Purchase Agreement

 Energy New distributed PV assets, repowering PV,
 Solutions storage, CHP

 Digital & Advisory Advisory (audits, flexibility, storage), data FKR
 Services analysis and energy management systems

 Starting from Energy Team metering and
 Smart Energy Technologies Demande Response, plus evolution driven
 by IoT trends and “open-tech” approach
 # clients

 We enable value creation with advanced solutions
 Asset Development Large Wind/Solar producers Energy Intensive Industries Large commercial users
13 Owned Assets Small PV assets < 5MWp Large Industries Large commercial
 corporates

Dividends 2016-2025
 2018 - 2021 2022 - 2025

 Pay-out ratio (“PAY-OUT”) of Pay-out ratio (“PAY-OUT”) of
 DIVIDEND «CAP» 40% of Group Net Earnings 30% of Group Net Earnings

 6,7 6,9 6,9 6,9 6,9 6,9
 6,3 6,5
 DIVIDEND
 €/cent
 «FLOOR» 5,3
 4,9

 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
 Paid in Paid in Paid in Paid in Paid in Paid in Paid in Paid in Paid in Paid in
 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

 distributed 6,7€/cent as dividend
 «cap» mechanism applies

14
 Long term visibility,stable dividends to sustain strong growth

Roadmap 2025

Value for Renewable electricity and pricing model
 Value of avoided carbon emissions typically manifested through carbon Pricing model 2040? €/MWh; real 2020 money
 pricing or taxation and low carbon support mechanisms
 Additional
 Upside
 Value of short-term flexibility in support of system from
 operability and alleviation of congestions 15-20 direct
 carbon
 Carbon pricing?
 Value of MW of long-term reliability /
 adequacy in support of security of supply 15-20
 Capacity
 Flexibility
 Value of MWh energy
 delivered to the system 20-25
 Capacity 70-80
 Reliability

 Energy
 25-30

Where the Wholesale Reserve, Ancillary EU Emissions LCOE LCOE of capacity Carbon Average
“products” electricity Capacity market services and Trading System based on services for pricing for price
are traded market Balancing markets (EU ETS) Solar PV reliability and avoided
 CAPEX1) flexibility emissions
 (batteries)2)
 1) 200-300K €/MW; 2) Assuming, for each MW of Solar, 0.5MWx8h (4 MWh of storage), ~120k€/MW 3) Considering a CO2 price of ≈70 €/tCO2

 16

Focusing on energy plus capacity: how to derive value

 Capacity Today’s Capacity
 Energy
 Reliability focus Flexibility

 Long-term system adequacy in support of
 System goal Efficient energy dispatch Short-term system adequacy and flexibility
 security of supply

 Delivers energy in the most cost-efficient Ensures long-term system adequacy e.g., Enables the system to respond to short-term
 What does it
 way by having the market define the in the case of extreme load peaks or variations in the supply/demand balance,
 provide?
 system’s merit order backup intermittent renewable generation support operability and alleviate congestion

 • Forward markets • Short-term reserve markets (e.g. UK)
 Market • Market-based capacity remuneration
 • Day-ahead markets • Ancillary services (e.g. primary and
 instrument mechanisms
 • Intraday markets secondary reserve) and balancing market

 • Own dispatch planform for optimization • Pipeline of stand-alone storage and/or
 • Participation to capacity market auction
 of €/MWh of own plants and third- PV+Storage projects in definition for the
 for 2023 delivery, with Solar+Storage
 party energy on the Italian market Italian market. Revenues from ancillary
 capacity to be developed in South zone
 (hedging, aggregation and balancing) services (primary and secondary reserve
Where are we • Awarded 9 MW/year at 75
 • Ongoing platform development for the with €/MW remuneration) as well as from
 today? k€/MW/Year for 15 years
 UK market the new Fast Reserve mechanism

 Energy-only markets are inefficient by definition, as they include technologies with an opposite cost structure in terms on Capex-
 Opex, leading to energy prices trending, in some hours of the day, towards zero
 17

Roadmap 2025 summary
 Continued expansion and Strong focus on ENERGY+
 Significant Assets Growth
 diversification of pipeline model

 100% of solar developments
 2 GW plus developed and put in
 +2x consolidated assets with COD from 2023 with
 service by 2025
 storage option

 ENABLERS OF GREEN GROWTH
 1. Distributed added value
 2. Projects with a significant
Services and
 community engagement program
solutions business 3. Avoided GHG emissions
 4. Hours of training per employee

Customer centered, technology Strong digital and application Clear sustainability
 and competence driven development driven expertise commitments to 2025

18

Main Targets
 Installed Capacity EBITDA
 (MW) ~ 2,300 2x (€M) ~ 280 ~ +40%
 ~ 1,900 vs 2019 ~ 250 vs 2019

 204
 1,123
 It includes ~ 20M of
 green certifcates
 reduction

 2019 2023 2025 2019 2023 2025

Net Financial Position Group Net Earnings
(€M) ~1,035 (€M)
 ~ 875 0.4x ~ +65%
 vs 2019 vs 2019
 721

 ~ 70 ~ 80
 48

 2019 2023 2025 2019 2023 2025
 NFP/ 3.5x 3.5x 3.7x
 EBITDA

 19

Our key sustainability targets

 174 255 1,300
 distributed added value**
 €M €M €M

 projects with a significant
 41% 55%
 community engagement
 program*** of projects of projects

 0,62 1,36 5,99
 avoided GHG emissions****
 MtCO2eq MtCO2eq MtCO2eq

 hours of reskilling and upskilling 21 40
 per employee hrs hrs

 *not audited numbers ** to stakeholders such as staff, shareholders, creditors, central & local administrations, local communities
 *** projects supporting local benefit/ownership schemes, or locally enabling sustainable consumption services (e.g. community energy PPA)
20 **** calculated on 2017 international emission factors. Ref.: US factor: EPA 2019, EU factors: ISPRA 2018, Norway factor: NVE-RME 2019

Capital Allocation 2020 – 2025

 40 35 Business Lines Returns and Targets
 €M €M
 85
 €M MW added 20-25: + ~ 1.2 GW
 Owned Assets Incremental EBITDA 20-25: ~ €85M
 Upside from in-
 IRR → Wacc + 150 bps house
 development &
 Asset IRR > 15%
 management
 activities*

 1,295 Development & Average yearly rate of pipeline + 100 bps
 generation ~1.6 GW
 Management
 €M
 1,135 Energy Management Incremental EBITDA 20-25: €8.5M
 €M & Downstream IRR ~10%

 Services Leveraging Energy Team customer baseMave

 ↑ efficiency
 Cash-out: Capex + Development Expenses Digital & Innovation IRR ~10%

21 * compared to pay the fee to an external developer

Installed Capacity Growth
 +105% Growth 2019-2025
 ~2,300
 +70% Maintaning a balanced
 14% + ~ 230 MW
 Consolidation of Nordics exposure
presence in the Nordics ~1,900
 +14% 10%
 29% Onshore wind growth
 + ~ 175 MW depending on UK and
Europe remains central 1,250-1,280 31%
 1,123*
 decarbonisation policies
with high emphasis on 15%
 97
 South Europe 33% Investing in significant
 40% + ~ 370 MW
 511 32% pipeline optionality
Strong growth in the US
 with ENI partnership
 32% Assuming full «ENI
 403
 27% 24% + ~ 450 MW
 113 13% framework» delivery
 ACTUAL 2020 2023 2025
 2021 installed capacity USA South Europe North Europe Nordics
 in line or exceeding ~2,300
 By 2025
 previous industrial plan
 ~1,900

 Big effort on solar + ~1.2 GW ~0.8-1.0 GW
 7.4x 1,250-1,280 installed of pipeline
 1,123*
 129
 in excess
Wind continues to blow 70% solar available
 948

 ACTUAL 2020 2023 2025
 Wind Solar Other

22 * Does not include Carrecastro wind farm, COD on 07 February 2020

Updated targets 2020-2025

 Offering Key business targets 2025 Financial Targets (€M)
 Dispatch and fixing IT, UK, evaluating SP and Nordics: 4,3 TWh
 (54% captive)
 Market 120 MW as Balancing Service Provider for Demand/Response
 Access 1 GW of CPPAs support/involvement +2.5x

 EBITDA
 ~200 new PV projects owned, ~9 MWp installed 12
 Energy 4,5 MWel CHP installed and owned 4.6
 Solutions M&A and revamping 3-5 PV assets ~5 MWp
 2019 2025
 1 M&A of ESCo or technology solutions company

 Data science, Virtual EM, flex / storage audits ca 1 M€ rev.
 Digital & Advisory Energy M&A

 CAPEX 20-25
 CloE main platform for client, ca 3 M€ revenues
 Services Solutions
 5
 Increase of solutions for DSO/small producers (observability)
 27 Smart Energy
 6
 Technologies
 > 4 M€ increase of product sales 1
 New hardware / software solutions for PV in synergy with Others
 Smart Energy Technologies
 Upgrade of product line (focus on IoT and cybersecurity)

23

Scenario Assumptions
 Euribor & Libor 2020 2023 2025

 Prices EUR/MWh 2020 2021 2023 2025 Euribor Old Plan 0.25% 1.00% n.a.

 PUN Old Plan 59 58 59 65 Euribor New Plan 0.00% 0.30% 1.00%

 PUN New Plan 50 54 60 65 UK Libor Old Plan 1.30% 1.60% n.a.

 Green Certificates Old Plan 92 94 96 92 UK Libor New Plan 0.90% 1.30% 1.40%

 Green Certificates New Plan 99 101 97 92

 FX

 EUR/GBP Old Plan (2019-2021) 0.91

 EUR/GBP New Plan (2020-2025) 0.878
 Prices GBP/MWh 2020 2021 2023 2025
 EUR/USD Old Plan (2019-2021) 1.18
 Wholesale Old Plan 51 51 56 62
 EUR/USD New Plan (2020-2025) 1.14
 Wholesale New Plan 42 46 55 63

 ROCs Old Plan 49 50 52 54
 CapEx / MW (€k) avg. 20-25
 ROCs New Plan 50 50 52 54
 Capex/MW Solar 0.81

 Capex/MW Wind 0.99

 PPA assumptions for new projects diverge from these price scenarios
24

Price Risk Management Assumptions
 Power Price Risk
 ❑ Natural hedging provided by environmental subsidies (ROCS, Tariffs, Certificates) and Grid
 Benefits as been complemented by sales on forward market in ITA, UK and Nordics
 No price risk on 76% of expected revenues after hedging actions
 ❑ 24% of 2020 revenues is exposed to price risk, after hedging actions
 ❑ Long term price risk mitigation has been enhanced by 2 PPAs in Spain and Norway for 75% of
 Market Price Exposure their expected revenues

 24% 22% 20% 2020 Price Risk Sensitivity considering Hedged Positions
 29%
 11% …same electricity price variation …different impact on revenues
 19% 71% 26%
 19% ± 1 €/MWh ± 0.6 M€

 67%
 ± 1 £/MWh ± 0.7 M£
 57% 51% 54%
 29% ± 1 $/MWh ± 0 M$
 Other ± 1 €/MWh ± 0.2 M€
 Falck Portfolio US UK ITA Other EU

 FiT + Grid Benefits* FWd Hedging + PPA Merchant
 Onshore Wind Full Price 2020 2023 2025
 *US: SREC + Capacity Payments ; (€/MWh; nominal)
 UK: ROCs + % of Grid Benefits;
 ITA: Tariffa Grin + Conto Energia;
 Captured price + Green Certificate (CV) +
 Other EU: French FiT
 Guarantee of Origin (GO) – Imbalance cost
 145.1 152.2 151.5**

 Captured price + Renewable Obligation Certificate
 (ROC) + Renewable Energy Guarantee of Origin 95.4 109.6 116.8
 (REGO) – Imbalance cost

25 ** Minervino and San Sostene wind farms «green certificate» expiring respectively in 2023 and 2024

Guidance 2020
(€M)

 Scenario 1 Scenario 2
 Main Considerations

 196 EBITDA 202 o Price assumptions:
 ➢ Scenario 1: existing forward price
 scenario + slight recovery in 2H
 ➢ Scenario 2: existing forward
 Group Net
 40 Earnings*
 42 price scenario + progressive
 recovery to CMD assumptions

 o Covid-19 impacts not very
 Net Financial
 785 Position 775 significant and partially mitigated by
 management actions

 Before provisions and impairment

 * Not included the impact of deferred tax liabilities on Group Net
 Earnings due to the change of the corporate tax rate in the UK

 26

EBITDA Growth 2019 – 2025
 (€M) CAGR +5.4%
 New Assets

 Operating Assets

 -23 +85 +14 Services
 Services

 Operating Assets New Assets

 ~204 +14 ~280
 -28 Prices
 Loss of Incentives
 -9
 End of useful life

 2019 + 76 2025
 32%
 50% Revenues from incentives

 2.4 Energy Output (TWh) 5.0
27

NFP Evolution

(€M) 2019 2025
 22
 Cash
 available
 NFP Variation (314) Cash 22
 available
 109 SPV Cash
 SPV Cash 100 Project
 10 CII Holdco
Project Finance (474) Finance
 (672)

 Corporate
Corporate Debt (32) (522) Debt
Derivatives (33) Operating
IFRS 16 /Other D. (81)
Local Comm. (12) Capex Cash Flow 154
Other (33) (250) Dividends
 (721) Tax Equity/ (11) Derivatives

 Minorities Fin. (140) IFRS 16 /Other D.
 Charges, FV
 (202) Local Comm.
 Contributions
 Derivatives (10)
 (1,035)

 (1,234) 1,217

 28

1Q 2020 Results

1Q 2020 Business Highlights
 Asset Our Business during pandemic
 Owned Assets
 Development
❑ Reached 1,133 MW* operating capacity ❑ Completed the strategic agreement with ENI Regular supply of electricity in the period.
❑ Strong quarterly production vs. 1Q 2019 for joint development in the US Business continuity secured
 (+35%) due to strong winds in the UK and ❑ Signed PPA in Norway for Hennøy wind
 Construction continuing as planned
 France and perimeter growth in the Nordics, farm (70% of annual production)
 France and Spain. Lower performance in Italy ❑ Reached 2.8 GW under management Decreased energy prices fundamentals (natural
 (-8%) YoY. gas)
❑ Lower comprehensive captured prices in the
 Continued good performance of operating
 UK (-7%) and in Italy (-5%) vs. 1Q 2019
 assets
❑ Completed revamping at Spinasanta PV Energy Management &
 plant (6MW) and biannual maintenance at Financial resources available to follow the
 Rende biomass plant (15MW) Downstream Services Business plan implementation

 Minor delays suffered in Services (commercial
 Financials ❑ 381 GWh dispatched in-house in Italy (100%
 activity)
 of energy produced + 3rd parties) vs 265 GWh
❑ Higher Ebitda at €72.5M vs €63.0 1Q 2019 in 1Q 2019
 (+15.1%) and above expectations > 90% of total workforce working from home
 ❑ Signed 1 contract for CHP and PV distributed
❑ NFP at €650M lower than €721M end of Additional insurance coverage to employees
 generation at C&I client
 2019 impacted by cash-in from sale of in Italy and in the UK. Working to extend to
 minorities in US assets ❑ New CloE platform growing fast with more the other countries of presence
 than 5,000 consumption points licenced
❑ Positive impact from GBP exchange ratio International support program for local
 (1.2% vs average 1Q 2019) ❑ Reached 31 MW of UVAM as BSP
 communities
 ° It includes minority stake in La Muela (26%) wind farm and FEA (49%) for a total amount of 37MW

 30 Sound quarterly results, business substantially unaffected during pandemic emergency

1Q 2020 Financial Highlights

 Breakdown (€M) 1Q 2020 1Q 2019

 Depreciations (20.3) (18.1)
 Provisions (3.1) (1.5)
 Write – offs / - (0.1)
 Revaluations

31

1Q 2020 EBITDA Bridge

 (€M) Assets Services and Other

 (2.0)
 (0.6) 1.4 0.5 72.5
 4.5 (4.4) 10.1
 63.0
 ↓ DEVEX (FALCK
 GBP/EUR
 NEXT)
 ↓ RENDE ↑ 2020: 0.862
 ↓ NUO START-UP
 ↑ NORDICS ↓ WHOLESALE ITALY MAINTENANCE
 2019: 0.872
 ↑ FRANCE ↓ WHOLESALE UK ↓ GRID/LOCAL
 WIND TAXES
 (JULIA) ↓ WHOLESALE SPAIN

 ↑ WIND SPAIN

 ↑ UK WIND ↑ P&L EFFECT ON
 ENI DEAL
 ↑ FRANCE WIND
 ↓ DEVEX
 ↓ STRUCTURE
 STRENGTHENING

 1Q 2019 PERIMETER
 PERIMETER
 PERIMETER PRICES
 PRICES
 PRICES VOLUMES
 VOLUMES
 VOLUMES OPEX
 OPEX
 OPEX SERVICES
 SERVICES G&A/ EXCHANGE 1Q 2020
 OTHER RATE

32

1Q 2020 Cash Flow
 (€M)
 CASH
 79

 CASH 22
 SPV
 SPV
 CASH
 CASH
 147
 109
 PROJECT
 CII HOLDCO 10 Cash Flow CII HOLDCO 10 FINANCING
 from Net Capex/ Net Cash Exchange (656)
 NFP Derivatives NFP
 Operations Perimeter US deal ratio
 Dec 2019 Mar 2020
 PROJECT
 FINANCING
 (672)

 IFRS 16 (81)

 FV DER. (42)
 IFRS 16 (81)
 CORPORATE LOAN (50)
 FV DER. (33) COMMUNITY FINCOOP INSTR.* (13)
 CORPORATE LOAN (32) 56 (1) 13 (650) OTHER (43)
COMMUNITY FINCOOP INSTR.* (12) 44 (41)
 OTHER (33) (721)

 * Investment scheme to encourage the community to establish cooperatives,
33 whose members will contribute to financing the energy plant

1Q 2020 Gross Debt Breakdown
 Gross Debt by Currency Gross Debt Without Gross Debt Without Derivatives
Gross Debt Nature Without
 Without Derivatives and Derivatives and Leases and Leases: Construction and
 Derivatives and Leases
 Leases Hedged Operations

 19%
 49% 1Q 1Q
 47%
 2019 2019
 81%
 4%

 €762M €762M €762M €762M

 Financing with recourse GBP Hedged Operating plants

 Project financing without recourse EUR Un-hedged Under construction

 Other financings without recourse USD

 Average interest rate (including interest rate swap) of 3.40%*
34 Gross Debt = Project Financing + Other Debt + Debt vs CII HoldCo *excluding IFRS 9 effect

Appendix

Asset Base in 1Q 2020
 March 2020

 *

 *

 *

 Residual Project Life
 Residual Debt Life
 Project cash flow after debt repayment
 Wholesale price
 Residual incentive life
 °

36 * PPA secured, SREC (in the US only) ° Not included minority stake in La Muela (26%) wind farm and Frullo Energia Ambiente (49%) for a total amount of 37MW

Electricity Production in 1Q 2020 (GWh)
 1Q 2020 D vs. Internal Index
By Technology 35%
 Strong productions vs. 1Q 2019 (+35%). +29.4% in 1Q 2020 while in
 676 912
 Significant grid curtailments at our 1Q 2019 production was 1.3%
 Millennium, Kilbraur, Assel Valley and better than the Index
 Auchrobert wind farms (36 GWh
 compensated).

 • Lower wind production vs. 1Q 2019 (-8%) • Wind: -4.9% vs Index in 1Q
 due to poor winds in March and solar 2020 while in 1Q 2019
 production below 1Q 2019 (-6%) burdened better performance of 2.1%
 by panels replacement at Spinasanta PV
 plant (6MW) • Solar: -9.0% in 1Q 2020
 while in 1Q 2019 production
 • Energy from waste/biomass lower vs. 1Q was better 5.1% than Index
By Country 35% 2019 (-13%) impacted by biannual
 676 912 maintenance at Rende Biomass plant.

 -13.5% in 1Q 2020 while in 1Q
 Quarterly productions almost aligned with 2019 production was -13.6%
 same period of previous year vs the Index.

 Higher productions vs. 1Q 2019 (+104%). Full
 contribution from increased perimeter (56MW
 since March) with output better than
 expected. Strong performance from existing
37 wind farms (42 MW).

1Q 2020 Captured Price Overview
 1Q 2020 1Q 2019 D%
 Eur/MWh 95 94 1%
 Eur/MWh 35 53 -34%
 Eur/MWh 26 n.m.
 (5%)
 150 142
 CAPTURED ENERGY
 + INCENTIVE PRICE

 €MWh GBP/MWh 98 (7%) 92

 2020 8% 2020
 8% Price exposure Price exposure

 (18%)
 (26%)

 FiT + Grid Benefits FWd Hedging + PPA Merchant

 **
 Rolling yearly average Rolling yearly average Rolling yearly average Rolling yearly average
 90 90

 Sicily 80 80
 60 60
 WHOLESALE

 Avg. 71 €/MWh Avg. 58 €/MWh
 South 70 70 55 Average 55
 Italy
 PRICE*

 57 GBP/MWh
 Avg. 62 €/MWh
 Sardinia 60 60 50 50
 Avg. 47 €/MWh
 Avg. 60 €/MWh Average
 50 50 45 38GBP/MWh 45
 Avg. 47 €/MWh 45 (-30% vs 1Q ‘19)
 40 40 40 40
 40 (-29% vs 1Q ‘19)
 33 (-37% vs 1Q ‘19)

* Source: GME, Heren
** Excluding Roc Recycle impact

 Captured price impacted by positive hedging strategy to support the
 38
 decrease of average market prices

Boosting Growth in the US: the Partnership with Eni

Transaction Summary Shareholdings and Governance Key Targets

DevCo (50/50) between Falck Eni
 49% 50%
 Technology: PV, Wind and Storage > 5 MW
and Eni to develop 112.5 Operating
 NewCo DevCo DevCo: Greenfield, RtB, COD and JDAs
~ 1 GW by 2023
 51% 50%
 Falck Transfer from DevCo: rights for 400 MW to NewCo
Sale of 49% of the operating
portfolio (112.5 MW in a (51/ 49) and 600 MW to EniCo (100% Eni)
 NewCo Governance: Falck to fully
NewCo) and 50% of Devco Technical and commercial Asset Management by
@ $70M with a gain of control and consolidate line by line
 Falck Renewables Group
€14,5M (including fx gain) (100%)
with impact on Net Equity DevCo Governance: shared control of the
Reserve and €2M (including
fx gain) with impact on P&L company; Falck has the right to appoint
 the President and Eni a Vice President

 39

Storage benefits to RES producers and C&I customers
 Key set ups Key system benefits Market examples and reference values*
 Intraday trading schemes
 Energy 40-80 k€ / MW / year
 BTM @ C&I
 Time shift / trading
 Reduction of curtailments
 FTM with RES Self consumption optimisation (ex Buddusò) ~5-8 GWh / year
 jjj

 Curtailments reduction
 Unbalances reduction

 Power TERNA projects for grid support
 Stand
 Alone Peak shaving 30-60 k€ / MW / year
 Grid support Peak shaving schemes for DSO
 (Middleton project in operation)
 BRP BSP
 Services UVAM
 Primary UVAS pilot project 30 -110 k€ / MW / year
 Markets / Grid Secondary Future secondary RES scheme

BTM = behind the meter
FTM = front of the meter Market Capacity
 Capacity payment for RES
RES = renewables sources Market based payments (2 Falck Renewables projects 20-40 k€ / MW / year**
C&I = commercials & industrials
BRP = Balance Responsible Party accepted for 2023)
BSP = Balance Service Provider

 Enabling RES and C&I storage: RES + storage dispatching
 capabilities, C&I know how with Energy Team
40 ***Range of values from observed market cases, Falck Renewables estimates
 Falck Renewables awarded projects ca. 34 k€ / MW / year (storage)

Group Net Earnings 2019 – 2025

 (€M) + 65%

 ~ 76 ~ (29)
 ~ 14 ~ (19)
 ~ (10)
 ~ 80

 ~ 48

 2019 EBITDA D&A Financial Taxes Minorities 2025
 Charges &
 Equity

41

Main Financial Indicators 2019 - 2025
 90% 81% 50%
 80% 45%
 Debt to Equity Ratio
 66%
 70% 40%
 Falck Renewables
 60% 35% 3.0x 3.0x 3.0x
 Net Debt Covenant
 Earnings/EBITDA 50% 30%

 FFO/EBITDA 40% 25%
 37%
 30% 31% 20% 1.2x 1.0x
 Falck Renewables
 20% 15%
 NFP to Equity Ratio
 10% 10%
 2020 2023 2025
 2019 2025
 04x 23%
 22%
 04x 22%
 22%
 04x 21% NFP to EBITDA Ratio
 04x 21%
 20% 7.0x 7.0x 7.0x Falck Renewables
 NetDebt/EBITDA 03x
 Debt Covenant
 19% 3,7x 20%
 FFO/Net Debt 03x 19%
 03x 19%
 18%
 03x 3,5x 18% Falck Renewables
 03x 17% 3.8x NFP to EBITDA
 3.7x
 2019 2025 Ratio
 2020 2023 2025
 10% 9% 8% 12%
 8% 10%

 ROE
 6% 11% 10% 8%
 4% 6%
 ROI 2% 4% NFP significantly within current covenants
 0% 2%

 2019 2025
42

Uses and Sources 2019 – 2025
(€M) Cash Out Cash In

 9 ~ 2,166
 202 of which €325M
 revolving credit facility
 250 522

 471 273
 154
 Operating Cash Flow
 Corporate Debt
 New Project Financing
 Tax Equity/Minorities contrib.
 1,234 1,217

 CapEx Project Finance Financial Dividends Others
 Repayments Charges
43

Cumulative Capex 2020 - 2025
(€M)
 By Area By Contribution to EBITDA

 North Partial/Nill
 Nordics 16% Nordics 16%
 Europe 20% 15%

 1,234 1,234
 North South Europe
 Europe 16%
 23%

 USA South Europe
 33%
 31%
 USA 30%

44

Management Incentive Plan
 Performance shares
 ❑ Condition of financial sustainability
 - (NFP / EBITDA)
 2020 - 2022

 ❑ Conditions of minimum cumulative Group EBITDA
 ❑ Overperformance mechanism based on stock price can trigger shares attribution of
New Plan

 shares ranging from 0.41% to 0.61% of current market cap

 Cash Plan
 ❑ Condition of financial sustainability
 - (NFP / EBITDA)
 ❑ Conditions of business performance
 - Group EBITDA
 - Specific drivers for business lines

 Strong long-term alignment between management and shareholders
45