ENGIE ENERGÍA PERU S.A. Investor Presentation September 2019
SNAPSHOTS 2
Supporting our clients in their BUSINESS LINE – CLIENT SOLUTIONS zero-carbon roadmap Focus on 20 countries, 30 urban areas, BUSINESS LINE – RENEWABLES 500 global clients Decentralized organization: BUSINESS LINE – NETWORKS 24 business units; 4 business lines CAPEX 2019-2021: BUSINESS LINE – THERMAL € 12bn & 9GW in renewables Capacity breakdown Revenue breakdown EBITDA breakdown 88% low CO 2 0.2 0.2 4.5 5% 7% 7.0 37.1 5.7 1.1 6% € 60.6bn (3) € 9.2bn (3) 104 GW (1 ) 4.0 55% 1.8 4.6 27% 3.4 0.2 Natural gas Nuclear Other Europe North America Latin America Europe North America Latin America Renewables (2) Coal Africa & Asia GEM Other Africa & Asia GEM Other (1) At 12/31/2018, at 100% (2) Including pump storage for hydro (3) 2018 Consolidated 3 3
Natural Coal; Gas; 963; Solar; #2 135; 39% 40; 5% 2% Leading player of the sector (by installed capacity) Dual fuel; Yuncán (2005) 2,496MW 1110; 44% • Hydro 134MW Hydro; 248; 10% Quitaracsa (2015) • Hydro 114MW Low Co2 generation base Chilca Complex • ChilcaUno – (2006 – 2012) Diversified & decentralized asset base across 4 regions 852MW - Natural Gas • ChilcaDos – (2016) 111MW - Natural Gas 282 km of transmission lines + 1 substation Ilo Complex Value added customer solutions • Ilo41 (2016, Nodo) 610MW - Dual Fuel • Ilo31 (2013, Cold Reserve) 500MW - Dual Fuel Intipampa (2018) • Ilo21 (2000) • Solar 40MW 135MW - Coal 22 years operating in the country & listed since 2005 4 4
Early steps • Yuncán (2005): Hydro - 134MW - Cerro de Pasco – 30-year usufruct from Activos Mineros (2035) • Quitaracsa (2015): Hydro - 114MW - Huaraz Recent Development • Intipampa (2018): Solar Power Plant - 40MW – Moquegua, backed by a 20-year Investment Agreement with Ministry of Energy and Mines @48.5$/MWh until 2038 Electric Mobility and Smart Cities early stages • 100% electric bus for Peruvian Mining • Electric Car – 1 st electric cab in Arequipa / Alliance with Peugeot and ALD for Electric Vans • Solar bench (San Isidro, Panamericanos games) Next steps • Punta Lomitas: Wind - 260MW - Ica - Expected EIA by end of 2019 • Hanaqpampa: Solar - 300MW - Moquegua - Temporal concession (currently being studied) • Expansion of Intipampa: Solar - currently being studied • Various other non-conventional renewable projects at different stages in the pipeline 5
RECENT EVENTS 6
Cerro Corona mine (Goldfields) personnel transport 44-day bus test between camp site and mine (Cajamarca) Total travel: 7,278 km (165 km/day) Operational cost 87% lower than conventional bus CO2 emission reduction: 54.5 kg/day EV Box Chargers at 3,998 MASL (Highest in the world) 7 Note: The bus has been used in Panamerican Games and Perumin
Corporate Governance In July, for second year in a row, ENGIE Energía Perú has been recognized by “Bolsa de Valores de Lima” and is again a member of the Good Corporate Governance Index (IBGC), which recognizes Peruvian companies with best corporate governance, transparency, equity practices, information integrity and social responsibility. Panamerican Games With the objective of raising awareness among the spectators and visitors of Lima 2019 about the importance of solar energy and electric mobility in the country's sustainability, ENGIE joined as Official Sponsor of the Panamerican and Parapanamerican Games Lima 2019, with solar benches in different sites of the games. 8
OUR CLIENTS OUR ASSETS AND PROJECTS • PPA addenda & new contracts • 40MW Solar • ~260MW Wind PV Nearly 100MW of new contracts in 2019 Punta Lomitas Intipampa – Project – EIA by • 7.7-year weighted average life PPA March 2018 end of 2019 New PPAs start in H2 2019, 2020 and 2021 OUR RATINGS OUR SHAREHOLDERS • Fitch: AAA Stable Outlook April 2019 • Final dividend 2018 • Moodys AAA Stable Outlook US$ 64 million (pay-out 58.8%) May 2019 9
KEY MESSAGES 10
SOLID RESULTS IN A VOLATILE CONTEXT - Total energy generation (SEIN) grew 4.9% in H1 - FY 2018 EBITDA reached 278.7MUSD while Net 2019 compared to H1 2018. As of June, EEP Result totalized 108.3MUSD decreasing 15% and 16% maintained a leading position in the sector, compared to FY 2017 accounting for 19.8% of the total capacity and 10.7% - of the total energy generation of the system H1 2019 EBITDA reached 151.0MUSD , increasing 4% - compared to H1 2018 while Net result totalized Natural gas price declaration norm was modified in 65.7MUSD increasing 9% compared to H1 2018 January 2018 (floor price) Industry & - - Our business During 2019 EEP announced 100% electric bus for The Executive created the multisectoral commission regulation mining, Panamerican Games, Perumin for the reform of the regulatory framework of the electricity sector - At the end of H1 2019 total debt decreased to - In July, because of its recognized standards of 671MUSD a 8.0% decrease from December 2018 transparency and corporate governance, ENGIE was according to our amortization schedules recognized for second consecutive year in the BVL - Active participation in the local debt capital markets Good Corporate Governance Index - 2023 Corporate Loan with Scotiabank for up to - Recognized by “Premio Proactiva” for 100% Awards/ Financial 150MUSD @3.3% electric bus - Net debt / EBITDA (12m): 2.2x @ Jun/2019 Recognition discipline 11 11
∆ Q2 2019 ∆ H1 2019 (MUSD) Q2 2019 Q1 2019 Q2 2018 H1 2019 H2 2018 H1 2018 vs H1 2018 FY 2018* FY 2017* ∆ FY vs Q2 2018 Revenues 135 132 127 6% 267 265 256 5% 521 577 -10% EBITDA 70 81 72 -3% 151 134 145 4% 279 329 -15% Net Result 30 36 30 -2% 66 48 60 9% 108 129 -16% Recurrent EBITDA** 70 81 72 -3% 145 117 145 0% 261 302 -13% Net Recurrent Result** 30 36 30 -2% 62 33 60 3% 93 110 -15% Total Debt 671 700 787 -15% 671 777 787 -15% 731 837 -13% Net Debt 617 612 729 -15% 617 711 729 -15% 656 800 -18% Net Generation GWh 1,524 1,229 831 84% 2,753 3,645 1,545 78% 5,190 7,624 -32% Clients Demand GWh 2,158 2,119 2,152 0% 4,277 4,255 4,268 0% 8,523 8,358 2% Net Debt / EBITDA 12m 2.2 2.1 2.8 -24% 2.2 2.7 2.8 -24% 2.4 2.4 -3% * Restatement by application of IFRS ** Does not include commercial penalty fees and impairment of assets H1 2019 EBITDA reached a 4% growth compared to H1 2018, explained by a positive effect of the marginal cost, the sale of ▪ non-core assets and a decrease of Other income Q2 2019 EBITDA reached 70MUSD, a 3% decrease compared to Q2 2018, explained by a decrease of Other income ▪ ▪ Total debt decreased by 15% from June 2018, following the expected amortization schedule, a total of 671MUSD 12 12
7.7 Years 450 weighted average PPAS Other DisCos 400 Other Free Clients 340MW Luz del Sur 373MW 323MW ~7 year ~5 year ~11 años + 6 meses 350 (2014 – 2030) Antamina 300 Capacity Contracted (MW) 170MW 18 year Quellaveco (2015 – 2032) Enel 150MW 250 NEXA Group 9 year + 4 month Bilateral 2018 232MW Enel 200MW (2020-2029) 2 year + 10 month 292MW 5 year (2017 – 2019) 200 (2021 – 2025) 10 year + 5 month (2014 – 2030) 150 Yanacocha Cerro Verde Marcobre Volcan 60MW 58MW 49MW 84MW 4 year + 2 month Yura 6 year (2016 – 2020) 15 year 6 year 100 62MW (2016 – 2021) (2019 – 2034) (2018 – 2023) 7 year y 4 month (2016 – 2025) Gloria 33MW 50 8 year + 8 month (2017 – 2025) 0 0 2 4 6 8 10 12 14 16 18 Years Note: i) In addition, we have a 30 year, 35MW PPA with Anglo American Quellaveco, ii) we have included the addendums with Distribution Companies in the graph, iii) 2019 fully contracted strong commercial strategy to maintain our efficient portfolio contracted, iv) Quellaveco and Marcobre are rumping up from 2020/2021 13
✓ Diversification ✓ Limited spot market risk • Fully contracted capacity for 2019 and 83% on average Increasing number of clients for 2020-2021 • 90 Weighted average PPA life of 7.7 years, new PPAs to 80 start in 2019, 2020 and 2021 70 • Most of EEP´s contracts do not include termination 60 clauses 50 ✓ Strong credit profile 40 30 • +50% of portfolio investment grade clients & +70% 20 above BB- (Or local equivalent) in terms of sales 10 ✓ Low commodity risk - Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q2'17 Q3'17 Q4'17 Q2'18 Q3'18 Q4'18 Q2'19 • Indexation ~65% of portfolio to Natural Gas prices in line Balanced portfolio (MW) with generation costs 37% 63% Regulated Free clients 14 14
+ 380 MW 1 new contracts in 2017 + 57 MW 1 new contracts in 2018 + 98 MW 1 new contracts in 2019 Our portfolio & contracts +5% Number of clients grew from 80 (2018) to 84 (H1 2019) + 1. Value → quality and new services GROWTH POTENTIAL 2. Relationship plan with clients and new projects AGRESSIVE COMPETITORS 3. Internal reorganization to respond Main quickly to market SLOW GROWING DEMAND The market commercial 4. Continuous communication with pillars authorities, market and media REGULATORY UNCERTAINTY 1- Includes new contracts with free clients and existing expansions 15 15
FINANCIAL UPDATE 16
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