- 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 July 2018

2 SUMMARY At a glance Strategy & transformation plan 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 Half-year results - Further steps in the strategic repositioning of ENGIE 20 - Key figures as of 30 June financial objectives confirmed 22 ENGIE and you - Stock reporting bonus dividend 27 - Useful information 28 - Agenda 29

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 2018 Half-year results

20 FURTHER STEPS IN THE STRATEGIC REPOSITIONING REDESIGN AND SIMPLIFY THE PORTFOLIO PAVE THE WAY FOR THE FUTURE IMPROVE EFFICIENCY ADAPT THE GROUP Rotation program finalized Investment program finalized Acquisitions on new promising markets (EV Box, Icomera) A Business Unit dedicated to renewable hydrogen Lean 2018: Identified 100% Target: 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 AS OF 06/30/2018 in bn 06/30/ /30/2017 (3) H1 2018/17 H1 2018/17 gross organic REVENUES % +0.8% EBITDA % +6.2% CURRENT OPERATING INCOME (1) % +7.2% NET RECURRING INCOME GROUP SHARE (2) Continued activities NET INCOME RESULT, GROUP SHARE % +18.9% CASH-FLOW FROM OPERATIONS (4) bn FINANCIAL NET DEBT AT JUNE 30, bn versus 12/31/17 (1) Including share in net income of associates (2) i.e. excl. E&P and LNG (3) 2017 figures restated for E&P International activities and LNG midstream and upstream activities classified as discontinued operations as from March 2018 and for IFRS 9 & 15 (4) Cash Flow From Operations (CFFO) = Free Cash Flow before maintenance Capex 21

22 2018 FINANCIAL OBJECTIVES CONFIRMED* in Bn EBITDA NET RECURRING INCOME Group share NET DEBT / EBITDA CREDIT RATING DIVIDEND 2.5 x A Category 0.75 / share * These targets and indications exclude E&P and LNG contributions and assume average weather conditions in France, full pass through of supply costs in French regulated gas tariffs, unchanged significant Group accounting principles except for IFRS 9 & 15, no significant regulatory and macro-economic changes, commodity price assumptions based on market conditions as of December 31st, 2017 for the non-hedged part of the production, and average foreign exchange rates as follows for 2018: EUR /$: 1.22; EUR /BRL: 3.89 and do not consider significant impacts on disposals not already announced at Dec, 31st In addition, the confirmation of the 2018 guidance is based on the assumption of a restart of Belgian nuclear units according to the schedule published in REMIT as of today. 22

23 ENGIE and you

24 THE SHARE 2017 Stock market information ISIN code*: FR Ticker symbol**: ENGI Higher 05/07/18: Lower 03/02/18: Last (06/29/18) : Market capitalization as of 06/30/18: 32 bn ca. 6,400,000 shares traded per day on average in 2018 first half 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. 24

25 PERFORMANCE SINCE 2018 Share price evolution (TSR) as of 07/27/ : % +5% - (5%) CAC40 +5,4% Euro Utilities* +5.2% +5.0% (0.8%) (1.3%) +5% ENGIE +1,3% BEL 20 +0,5% (10%) (15%) (20%) janv.-18 févr.-18 mars-18 avr.-18 mai-18 juin-18 juil.-18 ENGIE BEL20 CAC 40 Euro Utilities * 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 Note (1) net return indices af of 07/27/18 excepted EuroUtlities (26/07/2018) Sources : Factset, Bloomberg (27/07/2018) 25

26 SHARE PRICE EVOLUTION ANALYSYS Since the beginning of 2018, the share has 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 Unplanned maintenance at certain Belgian nuclear units The publication of the Group's half-year results (07/27/18) was welcomed with a rise of 2.46% at closing, outperforming the CAC 40 by around 200 points and the sector by around 150 basis points. The return to organic growth observed in 2017 is confirmed in the 2018 first half, supported by the continued development in the majority of our activities. 26

27 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

28 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) 28

29 AGENDA Friday, October 12 Payment of the interim dividend: 0.37 per share (Ex-dividend date is October 10, 2018) Wednesday, November 7 Financial information as of September 30, 2018, before market opening 29