- ENGIE today 4 - Low CO 2 power generation 5 - Leader in global infrastructure 6 - Integrated customer solutions 7 - ENGIE around the world 8

Transcription

1 April 2018

2 SUMMARY At a glance Strategy & transformation plan 2017 full year results ENGIE and you Navigation through this document is facilitated by an interactive summary that takes you directly to the pages you want and allows you to return to the summary at any time, using the arrow in the bottom right-hand corner of each page. Clickable links also provide more details about some subjects - ENGIE today 4 - Low CO 2 power generation 5 - Leader in global infrastructure 6 - Integrated customer solutions 7 - ENGIE around the world 8 - Sectorial context Strategy 14 - Transformation plan CSR objectives 18 - Transformation plan 90 % completed after 2 years 20 - Key figures 21 - Breakdown of Ebitda 22 - Investments focused on growth businesses 23 - Signifiant progress made on portfolio rotation guidance: sustain organic growth Dividend increase 26 - Stock reporting bonus dividend General Meeting 34 - Useful information 35 - Agenda 36

3 At a glance

4 ENGIE TODAY LOW CO 2 POWER GENERATION GLOBAL INFRASTRUCTURE CUSTOMER SOLUTIONS ENGIE is focused on its 3 core businesses to lead the global energy transition 4

5 LOW CO 2 POWER GENERATION Capacity breakdown 89% low CO 2 World s leading independent producer As of 12/31/2017 8% GW (1) installed 7% (vs 13 % in 2015) 6% GW (1) 56% > 89% low CO 2 23% renewables (2) Natural gas Renewables Nuclear Coal Other (3) 23% (vs 18 % en 20158) (1) figures at 100% as of 12/31/2017 (2) Excluding pumped-storage hydroelectric capacity (3) Including pumped-storage hydroelectric capacity 5

6 LEADER IN GLOBAL INFRASTRUCTURE ca. 200,000 km of grid no. 1 in Europe Europe EBITDA Infrastructures 2017, in billions ca. 32,500 km of network - no. 2 in Europe France distribution 3.4 ca. 21 billion m3 of regas capacity - no. 2 in Europe ca. 12 billion m3 of storage capacity - no. 1 in Europe Transmission Storage LNG terminals bn EBITDA on global infrastructure worldwide 6

7 INTEGRATED CUSTOMER SOLUTIONS EBITDA by activity 24 million of customers in the world Global leader in energy solutions for cities 320 DHC networks worldwide 2017, in billion B2B Business to Business B2T Business to Territories B2C Business to Customers Solutions for individuals: green electricity offers, energy and breakdown services, My Power (photovoltaic panels for self-consumption), Elec Car Solutions for companies: energy and comsumption management solutions, intelligent digital control, blu.e solution, the software platform to help energy management... Solutions for territories: micro-grids, combined storage solutions for solar electricity and batteries, heating and cooling networks, green mobility... 7

8 ENGIE AROUND THE WORLD Breakdown of revenues by geographic area 65 bn in bn 2017 North America 3.9 Europe Asia, Middle East &Oceania Latin America 4.3 A f r i c a 0.4 8

9 Strategy & transformation plan

10 OPPORTUNITIES ARISING FROM A REVOLUTION DECARBONISATION DECENTRALISATION DIGITALISATION This energy revolution is intensifying and becoming global, structured by three major trends 10

11 Development of the global energy mix up until 2030 Additional capacity (CAGR (1) by technology) Aggregate Additional capacity in GW Low CO 2 technologies 10,000 16% 8,000 12% 6,000 8% 4,000 4% 2,000 0% Coal Gas Other Wind Solar Renewables Nuclear Gas Wind Solar Other renewables Natural gas & renewable energies, drivers of a global energy transition Sources: Bloomberg New Energy Finance, AIE, ENGIE 2015 (1) CAGR:compound annual growth rate 11

12 SIGNIFICANT INCREASE IN DECENTRALISED SOLUTIONS WORLDWIDE Decentralised solutions 36% In % 44% (80% today) The revolution in energy storage and generation technologies is prompting the emergence of smaller, competitive, decentralised infrastructure. Consequently, infrastructure and offers need to be adapted to the coexistence of centralised and decentralised energy solutions. B2C, off-grid solutions Centralised power generation B2T & B2B microgrids Source: AIE, Energy for All, 2011; MIT

13 DIGITALISATION, A PIVOTAL ELEMENT IN THE ENERGY REVOLUTION Autonomous generation Big Data Seamless customer journeys Energy optimisation In a world where infrastructure is becoming smaller, digital technology is accelerating this trend and occupying a central role, especially with regard to guaranteeing a balance between energy generation and consumption at all times. Predictive maintenance Smart cities Smart homes For example, the number of connected objects in the world will quadruple by 2020 to total 25 billion*. * Source Gartner

14 3 CLEAR DIRECTIONS CONTRACTED/REGULATED (1) EBITDA > 85% LOWER EXPOSURE TO COMMODITY PRICES AMBITIONS for 2018 CO 2 PRIORITY TO LOWEST CO 2 OPTIONS CO 2 LIGHT ACTIVITIES (2) EBITDA >90% DOWNSTREAM CUSTOMER SOLUTIONS DEVELOPMENT (1) Excluding merchant power generation, E&P and LNG supply & sales (2) Low CO2 power generation, gas infrastructures & LNG, downstream 14

15 A 3-year transformation plan based on 4 pillars Redesign and simplify the portfolio Pave the way for the future Improve efficiency Adapt the Group 14,3 billion* Growth in CAPEX 15 billion Portfolio rotation (net debt reduction) 1billion Spendings in innovation/digital 1.3 billion (net EBITDA increase) Agile and connected Technology-focused Talent-oriented * Net of DBSO proceeds; excluding Capex related to E&P and upstream / midstream LNG (including Touat and Cameron) for EUR 0.3 billion and Corporate Capex for EUR 0.2 billion 15 15

16 FOCUS OUR STRENGTHS ON OUR 3 CORE BUSINESSES LOW CO 2 POWER GENERATION GLOBAL INFRASTRUCTURE CUSTOMER SOLUTIONS Integrated solutions CAPEX Solar hydraulic, wind Gas Gas distribution Transmission LNG terminals & sales Storage for customers: - Energy efficiency - Energy supply - Cities and customers - Decentralised renewables - Heating/cooling networks PORTFOLIO ROTATION Coal Activities with exposure to commodity prices Exploration & production LNG upstream activities 16

17 PAVE THE WAY FOR THE FUTURE Technologies and innovation deployement Green mobility Acceleration of digitalization Big data Decentralised generation Mobile applications buildings' energy efficiency Connected objects Hydrogen Api management* Energy storage Cyber security * Management tool that manages the publication, promotion and supervision of data exchange between a service provider and a customer service, in a secure and scalable environment. 17

18 CSR OBJECTIVES TO SUPPORT THE GROUP PERFORMANCE Objective Indicator Target value in 2020 Effective value in 2016 Effective value in 2017 Supporting our customers in the energy transition Satisfaction rate among our B2C customers 85% 81% 83% Renewables Share of renewable energy in the generating capacity 25% 19.5% 23.1% Greenhouse gas emissions Stakeholder dialogue % reduction in ratio of CO 2 emissions to energy production compared with 2012 % of industrial activities covered by a suitable dialogue and consultation mechanism -20% -11.3% -18.1% 100% 20% 48% Gender diversity % of women in the Group s workforce 25% 21.9% 22.2% Health and safety Internal frequency rate for occupational accidents <

19 2017 FY Results

20 REDESIGN AND SIMPLIFY THE PORTFOLIO PAVE THE WAY FOR THE FUTURE IMPROVE EFFICIENCY ADAPT THE GROUP Rotation program well advanced 90% Investment program well engaged 97% Growth engines already account for 91% of EBITDA Acquisitions on new promising markets (EV Box, Icomera) A Business Unit dedicated to renewable hydrogen Lean 2018: Identified 100% Target raised by 100 million, for a total or 1.3 billion of net gains expected at Ebitda level by 2018 HQ adaptation to the Group's new challenges Involvement of managers in the Group s transformation Refocus on growth engines Additional Medium-term growth drivers Improve competitiveness Agile organization 20

21 KEY FIGURES in bn 2017 Results organic 2017/2016 Indication/Guidance 2017 REVENUES % EBITDA % NET RECURRING INCOME GROUP SHARE (1) 2.6 (1) CASH-FLOW FROM OPERATIONS 8.3 NET DEBT / EBITDA 2.25 x 2.5 x CREDIT RATING A- / A2 «A» Category DIVIDEND 0.70 / action 0.70 / action NET INCOME RESULT, GROUP SHARE 1.4 bn (1) NRIgs excluding IFRS 5 treatment for E&P, i.e. excluding the D&A upside (EUR 0.1 billion) from IFRS 5 accounting treatment (ENGIE E&P International business classified as discontinued operations ), therefore underlying contribution of of E&P of EUR 0.2 billion 21

22 BREAKDOWN OF EBITDA EBITDA by métiers In bn (0.8) Others 2.3 Client Solutions 9.3 (1) 4,1 Low CO2 Power generation (2) 3.8 Global Infrastructure (3) (1) Excluding others and low co2 merchant power generation for 1bn (2) including 1bn of low co2 merchant power generation (3) Including 0.03bn upstream 22

23 INVESTMENTS FOCUSED ON GROWTH BUSINESSES Growth Capex In bn Capex plan by geographies 7.1bn 50% Thermal contracted Thermal Merchant* B2B 4.6bn 32% France 36% Latam 33% RES bn (1) 1.8 B2T Europe 15% Rest of the world 16% 0.5 B2C 2.6bn 18% Customer soluitions Infrastructures Power generation Renewable & thermal contracted Power generation Merchant * exposure to commodity prices (1)Net of DBSO proceeds; excl. E&P and LNG upstream/midstream Capex (including Touat and Cameron) for 0.3bn and corporate Capex for 0.2bn 23

24 SIGNIFICANT PROGRESS MADE ON PORTFOLIO ROTATION Net debt impact In bn 13.2bn of disposals executed Ahead of plan with already ~ 90% executed to date ~ 9bn closed in , mainly: US merchant & coal assets 3bn closed to date in 2018: E&P, Loy Yang B, Egaz-Degaz Booked as of Dec 2017 Closed 2018 YTD Signed (closing in progress) Process launched Total net debt reduction LNG diposal expected to close in

25 2018 GUIDANCE: SUSTAINED ORGANIC GROWTH Net recurring income group share In bn ,10 D&A uplift(1) 2.36 (2) (3) + 8 % NRIgs bn without E&P and LNG contributions Dividend: Final dividend 2017 to be paid in May New policy in reported excluding E&P and LNG * 2018e Leverage & rating: A category rating Net debt / EBITDA 2.5x (1) Coming from IFRS 5 treatment of E&P (2) Without E&P and LNG contributions and without IFRS 9 and IFRS 15 treatments (3) Main assumptions: no E&P and LNG contributions, average weather in France, full pass through of supply costs in French regulated gas tariffs, no significant accounting treatment changes except for IFRS 9 and IFRS 15, no major regulatory and macro-economic changes, market commodity prices as of 12/31/2017, average forex for 2018: /$: 1.22; /BRL: 3.89, no significant impacts from disposals not already announced. * ENGIE completed the sale of its exploration & production activities in 2018 and the sale of its LNG upstream activities is underway. 25

26 2018 DIVIDEND INCREASE Dividend per share (DPS) in per share Previous DPS policy Upgraded 2018 DPS % upgraded Indicative pay 71% 66% 70% out ratio (1) (1) Basé sur le RNRpg des activités poursuivies ; calculé sur le milieu de fourchette de la guidance

27 ENGIE and you

28 THE SHARE 2017 Stock market information ISIN code*: FR Ticker symbol**: ENGI 2017 higher: lower: Last (12/29/2017) : Market capitalization as of 31/12/2017: 35 bn ca. 6,500,000 shares traded per day on average in 2017 Markets Euronext paris (compartiment A) Euronext Bruxelles Eligible for the deferred settlement service (SRD) and equity savings plan (PEA) Indices Indices : CAC 40, BEL 20, Euro Stoxx 50, Stoxx Europe 600, MSCI Europe, Euronext 100, FTSE Eurotop 100, Euro Stoxx Utilities, Stoxx Europe 600 Utilities EGS indices : Dow Jones sustainability(world, Europe), Euronext Vigeo Eiris (World 120, Eurozone 120, Europe 120, France 20, CAC 40 Governance) *The ISIN (International Securities Identification Numbers) code is an international standard for identifying and tracking a financial instrument. **The ticker symbol is an initials (diminutive of the name) appearing beside the ISIN code of the values facilitating their identification. 28

29 2017 PERFORMANCE 15, , , ,5 Gross Perf Total Shareholder Return ENGIE +18% +25,5% Euro Stoxx Utilities +16% +16% BEL % +10% CAC 40 +9% +13% 12 11, ,5 02/01/ /04/ /07/ /10/2017 * ENGIE Euro Stoxx Utilities CAC 40 BEL 20 29/12/2017 * Sectoral benchmark indexing European companies producing and distributing gas, electricity and water : A2A, EDP-Energias, EDF, Enagas, Endesa, Enel, ENGIE, E.ON, Iberdrola, Innogy, Italgas, Gas Natural SDG, RED Electrica, Rubis, RWE, SNAM, SUEZ, Terna, Uniper, Véolia Environnement Source : Thomson Reuters based on ENGIE shareprice 29

30 PERFORMANCE SINCE , , ,5 CAC 40-1% ENGIE -1% Euro Stoxx Utilities -2% BEL 20-3% FY Results 03/08/ /01/ /01/ /02/ /02/ /03/ /03/ /04/2018 * ENGIE Euro Stoxx Utilities CAC 40 BEL 20 * Sectoral benchmark indexing European companies producing and distributing gas, electricity and water : A2A, EDP-Energias, EDF, Enagas, Endesa, Enel, ENGIE, E.ON, Iberdrola, Innogy, Italgas, Gas Natural SDG, RED Electrica, Rubis, RWE, SNAM, SUEZ, Terna, Uniper, Véolia Environnement Source : Thomson Reuters based on ENGIE shareprice 30

31 SHARE PRICE EVOLUTION ANALYSYS In 2017, ENGIE achieved one of the best performances of the CAC 40, driven by significant advances in its transformation plan. Since the beginning of 2018, the sector and the share have been penalized by: renewed pressure on interest rates in Europe benefiting so-called "cyclical" values to the detriment of so-called "defensive" values (sectorial rotation) the recent rise of the euro against the dollar SUEZ profit warning ( 23 January 2018) of its 2017 earnings objectives and 2018 outlook The publication of the Group's results on March 8 was welcomed with a rise of 3.8% at closing, outperforming the CAC 40 and the sector by around 250 basis points. The growth outlook and the rise in the dividend of 7.1% for 2018 have positively surprised. 31

32 PERFORMANCE COMPARED TO THE MAIN INDICES 10 En % 9 8 Return to April /01/ /04/ /07/ /10/ /01/ /04/201 Rendement ENGIE Rendement Euro Stoxx Utilities Rendement CAC 40 Rendement BEL 20 ENGIE* 5% Euro Stoxx Utilities 4,7% BEL 20 3,6% CAC 40 3,3% OAT 10 years France 0,9% Source : Thomson Reuters * Based on dividends paid in

33 A BONUS DIVIDEND ENGIE rewards the sharehoders loyalty + 10% bonus dividend for all shareholders who registered shares (directly or indirectly for at least 2 continuous years For more information on the dividend policy, go to engie.com Register your shares prior to December 31, 2018 to benefit in 2021 from the bonus dividend related to

34 ANNUAL GENERAL MEETING: FRIDAY, 18 MAY, 2018 An Internet area, secured and dedicated to the vote prior to the General Assembly will be open from April 30 9am until May 17 at 3pm. Access the live or deferred broadcast of the General Assembly from 2.30 pm The Annual General Meeting will be held on May 18 at the Palais des Congrès in Paris at 2.30 pm An Assembly that will open a new page in the history of ENGIE, with the last term of Gérard Mestrallet as Chairman of the Group; the appointment of a new independent director, Jean-Pierre Clamadieu, who will transition into the role of chairman, will thus be submitted for approval to shareholders. Find all the documentation on engie.com/ag If you are a bearer shareholder: Log in to your bank's website, you can vote online if your institution has signed up for the Votaccess system. If you are a registered shareholder: connect to the site sharinbox.societegenerale.com Discover all the terms and conditions of participation in the General Meeting and the resolutions on the agenda in the digital version of the Notice of Meeting 2018, available on engie.com/ag. 34

35 PRACTICAL INFORMATION ETRE BEING ACTIONNAIRE AN ENGIE ENGIE SHAREHOLDER LIENS USEFUL UTILES LINKS CONTACT US ENGIE shrae price Holding registered securities The dividend The loyalty bonus General Meeting The tax framework for your shares Press releases Publications by ENGIE engie.com/actionnaires engie.com/club Mes questions d argent (in french) Euronext, Paris stock exchange L Ecole de la Bourse (in French) placedesactionnaires.com (in French) Lexicon (in French) facebook.com/actionnairesengie actionnaires@engie.com (France) (from France) club@engie.com (Belgium) (from Belgium) 35

36 AGENDA Tueday, may 15 Financial information as of 31 March 2018 Thursday, may 24 Payment of the balance dividend: 0.35 per share Friday, may 18 Annual General Meeting Friday, July first Half results 36