Il CdA approva il Bilancio e la Relazione sul Governo Societario e gli assetti proprietari al 31/12/24

The Board of Directors approves the Consolidated Financial Integrated statements at 31.12.2024 The report on corporate governance and ownership has been approved at 31.12.2024

The “Value over Volume” strategy is confirmed for 2025-2026

A dividend of EUR 1 per share has been proposed

Year 2024

• Adjusted consolidated EBITDA ¹: EUR 535 million, EUR 534 million in 2023
• Adjusted Group net profit : EUR 175 million, EUR 226 million in 2023²

Fourth quarter 2024

• Adjusted consolidated EBITDA: EUR 145 million, EUR 159 million in the fourth quarter of 2023 Adjusted Group net profit: EUR 45 million, EUR 77 million in the fourth quarter of 2023

2024 Financial Results – ERG recorded a 2024 EBITDA of EUR 535 million, substantially in line with the EUR 534 million of the same period of 2023, thanks to the significant contribution of the investments made during the year, which made it possible to offset extraordinarily unfavourable wind conditions.

Solid execution – +579 MW of new installed wind and solar capacity in the year through a balanced mix of organic growth, both repowering and greenfield, and M&A. The asset portfolio had reached over 3.8 GW by the end of 2024.

Route-to-market strategy – Between the end of 2024 and the beginning of 2025, five long-term Power Purchase Agreements (PPAs) have been signed with leading corporates and utilities, totalling approximately 500 GWh/year. The renewable energy produced by our farms and sold by the Group through long-term agreements amounts to approximately 3.3 TWh/year.

Strategy: Value over Volume approach strengthened – The Board of Directors approved the update of the Industrial Plan for the period 2025-2026, strengthening the “Value over Volume” approach aimed at maximising the return on investments through selective growth. Given the extended waiting times for the approval of the FERX Decree, as well as a more cautious approach in the US while awaiting clearer policy directions from the new administration, Capex has been reduced by 20% for the 2024-2026 period to EUR 1 billion. Therefore, the asset portfolio growth target has been set to 4.2 GW by 2026 (previously at 4.5 GW), with a stronger focus on assets currently under construction, repowering initiatives and the pipeline of organic projects. Expected EBITDA at the end of the period exceeding EUR 600 million. The target of an 85-90% quasi-regulated EBITDA has been confirmed, along with the commitment to maintaining an investment-grade rating.

Focus on Wind Repowering – Repowering, a key tool for the energy transition in which the Group is a pioneer, remains central to ERG’s growth strategy. The Group has already brought 269 MW into operation, with 29 MW currently under construction in France and Germany, and a project pipeline of approximately 800 MW, of which 380 MW have already received authorisation.

Sustainable finance – The European Investment Bank (EIB) financed the ERG group with EUR 243 million to promote the development of renewable energy in Italy, France and Germany.

ESG Strategy – The Board of Directors has approved the update of ther ESG Plan fotr the period 2025- 2026.Sustainability remains at the heart of the Group's strategy. Commitment to the NetZero by 2040 goal and the promotion of D&I policies to promote an inclusive work environment are confirmed.

First Edition of the Consolidated Integrated Reporting – In line with the requirements of the new CSRD, ERG has prepared, for the first time, the Integrated Reporting, which includes the Non-Financial Information within the Directors' Report, according to the new ESRS reporting standards. The Executive Summary of the non-financial report, which summarises the strategic approach to Sustainability, was published today.

Shareholders Remuneration Policy and Buy-back – The annual dividend is confirmed at EUR 1 per share, with flexibility to increase the remuneration also through buy-backs based on performance and growth prospects. Shareholders will receive a dividend of 1 euros per share in 2025, and a buyback program worth a total of 23 million euros (0.15 euros per share) carried out between November 2024 and January 2025.

2025 Guidance – In light of the current context and already factoring in the continued unfavourable wind conditions in the first two months of 2025, we forecast an EBITDA for 2025 between EUR 540 and 600 million, capital expenditure between EUR 190 and 240 million, and net debt between EUR 1.850 and 1.950 million.

Genoa, 11 March 2025 – The Board of Directors of ERG S.p.A., in its meeting today, approved the integrated consolidated financial statements, the draft financial statements at 31 December 2024, the report on corporate governance and the ownership structure at 31 December 2024, the report on the remuneration policy and fees paid, and the update of the Industrial and ESG Plan for 2025-2026.

The Board of Directors proposes to the Shareholders' Meeting, which will be convened for 22 April 2025 on first call and, if necessary, for 23 April 2025 on second call, the distribution of a dividend equal to EUR 1 per share which will be paid as from 21 May 2025 (payment date), with an ex-dividend date as from 19 May 2025 (ex date) and record date of 20 May 2025.

Adjusted consolidated performance results

Paolo Merli, Chief Executive Officer of ERG, commented: “The results of 2024 and, in particular, of the last quarter, were affected by wind levels that were considerably lower than last year and the historical averages for the period. This phenomenon, at the operating margin level, was fully offset by the contribution of the new installed capacity, which increased by approximately 580 MW, with over 300 MW in the United States. During the year, we also closed significant PPA agreements with leading industrial counterparts to stabilise our revenues. Our investment grade rating has been confirmed, we successfully issued a new green bond and signed our first financing agreement with the EIB. In updating the 2024-2026 plan, we have strengthened the selective “Value over Volume” approach, which was introduced last year, by reducing investments for the next two years and focusing on assets currently under construction, organic development and Repowering. Despite less investments, we continue to expect an EBITDA of over EUR 600 million in 2026. We confirm the annual dividend of EUR 1 per share, while maintaining the flexibility to enhance shareholder returns through additional buy-backs.”

¹ It should be noted that, starting from 2024, the adjusted operating results include the accounting impacts of IFRS 16. Comparative results for 2023 and the fourth quarter of 2023 have therefore been restated consistent with the new approach defined by the Group.
² It should be noted that the adjusted profit attributable to owners of the parent, for the comparative period, refers to the scope of “Continuing operations” and therefore does not include the contribution of the thermoelectric business sold on 17 October 2023.