ENGIE ENGIE Ene Energía Chile gía Chile S.A. S.A. In Investo estor Pr Prese esenta ntation tion First quarter 2020 ENGIE Energía Chile – Investor Presentation 1Q20 April 29, 2020
Sna Snapshots pshots ENGIE Energía Chile – Investor Presentation – 1Q20 April 29, 2020
Snapshots A global energy and services shareholder committed to a zero-carbon transition FOCUSED ON FOUR GLOBAL BUSINESS LINES, 20 COUNTRIES, 30 URBAN AREAS AND 500 GLOBAL CLIENTS NETWORKS RENEWABLES THERMAL CLIENT SOLUTIONS Upstream presence in the gas and Reduction of thermal capacity Unique integrated solutions to Generation and marketing of support clients in the zero-carbon electricity supply chain (hydrogen, electricity from all renewable through CAPEX Plan 2019-2021: €12bn & 9GW in renewables transition natural gas and biogas) energy sources 4,600 €2.7bn 5,200 €1.8bn 119,350 22,500 employees in revenues in 2019 employees EBITDA employees € 1.8bn employees €4.0bn EBITDA EBITDA 26.9GW € 1.7bn €4.0bn 52.3GW €21bn €6.6bn of renewable EBITDA in revenues of natural gas in revenues in 2019 in revenues in 2019 energy capacity in 2019 capacity installed LATAM PRESENCE REVENUE BREAKDOWN EBITDA BREAKDOWN CAPACITY BREAKDOWN 92% low 5% 5% CO 2 14,300 employees 4% 7% 78% 12% 7% Total 6% 61% €60.6 bn €10.4 bn Capacity 6% €5.3bn in revenue 97 GW 19% 55% 27% 2% 19.7GW installed capacity Nuclear Natural gas Europe North America Europe North America and 1.1GW under Coal Renewables (2) Latin America Asia & Africa Latin America Africa & Asia construction Oceania Other ENGIE Energía Chile – Investor Presentation - 1Q20 3 April 29, 2020
Snapshots Two main grids recently interconnected Gross installed capacity Generation (19,934 GWh – 1Q20) (25,397 MW) Wind Solar 6% Solar 12% Hydro 10% Wind Hydro 24% 9% 27% SEN 3,300 Thermal Thermal Km 60% 53% Clients Market share (% of sales – 1Q20) (% of installed capacity 1Q20) Engie 9% AES Enel Gener 29% Regulated 14% 40% Unregulated 60% Other Colbún 34% 13% Tamakaya 2% Source: CNE ENGIE Energía Chile – Investor Presentation - 1Q20 4 April 29, 2020
Snapshots 4th largest generation company; 3rd largest transmission player A RELEVANT PLAYER IN GROWTH AND CONTRACTED THE ENERGY INDUSTRY RECONVERSION BUSINESS • • • Prepared to provide energy Focused on delivery in growth and Capacity contracted over the next solutions to our customers reconversion implementation 12 years • 4th largest electricity • Long-term contracts; 12 generation company in years remaining average life • 0.8GW coal capacity Chile & leader in northern committed to be closed • Strong counterparties mining region between 2019 and 2024 • Unregulated: mining and ~2.2 GW gross generation • industrial companies; ~1GW/US$1bn investment • • capacity Regulated: distribution in renewables; 362MW companies already in construction • 3rd largest transmission • Renegotiated + new PPAs company • Grid interconnection +78% of unregulated through 50%-owned TEN Seaport inftrastructure, gas • portfolio pipeline ENGIE Energía Chile – Investor Presentation – 1Q20 5 April 29, 2020
Snapshots Prepared to meet our clients’ energy needs Technology Ownership as of 31-Mar-20 Chapiquiña (11MW) Coal Diesel/Fuel oil El Aguila I (2MW) Natural gas Pampa Camarones (6MW) Solar PV Float Wind 24.55% Baterías - Arica (2MW) Collahuasi Hydro Pension 52.76% Diesel Arica (14MW) funds El Abra Project under construction Tamaya solar (114MWp) 22.69% Chuquicamata TE Tocopilla (708MW) Calama wind (151MW) Mining Operations Tocopilla port Gaby 2,204 MW (*) C. Tamaya (104MW) Capricornio solar (97MWp) +362MW under TE Mejillones (580MW) construction TEN Escondida CT Andina (177MW) 2,293 kms HV + MV Gasoducto Norandino CT Hornitos (178MW) Chile - Argentina (Salta) transmission lines + IEM (377MW) 50% share in TEN Los Loros (46MW) 2 seaports: Tocopilla Andino (Mejillones) Gas pipelines & Andacollo (1MW) L.T. LNG supply agreements (*) Units 12 and 13 in Tocopilla (171MW combined gross capacity) were closed on June 7, 2019. The company announced the closure of Units 14 and 15 in Tocopilla (268MW combined gross capacity) by YE 2021 and CTM1 & 2 in Mejillones (334MW combined gross capacity) by YE 2024. The Los Loros & Andacollo PV plants were acquired in April 2019. Their capacity is shown in MW, which differs from the MW- peak figure reported in other slides of this presentation.. The Tamaya fuel oil plant will be disconnected during 2020. . ENGIE Energía Chile – Investor Presentation - 1Q20 6 April 29, 2020
Snapshots A decisive, gradual and responsible path Early steps OUR PERFORMANCE • Development of TEN project => procurement of low-carbon energy sources • Decision not to build any new coal plants PPA renegotiation with mining companies RENEGOTIATED PPAs • New tariff scheme: price reduction ~4.3 TWh • Decarbonization (tariff indexed to CPI rather than to coal prices starting 2021/2022 • Contract life extension (10+ years) COAL CAPACITY DISCONNECTED IN 2019 Asset rotation plan 171 MW • Coal plant closures: 171MW in 2Q19, 268MW by YE 2021, 334MW by YE 2024 • Renewable developments: 1GW / USD1bn plan COAL CAPACITY TO BE • Long-term power supply agreement to reduce volatility during transition DISCONNECTED BY 2024 602 MW Government-private agreement to phase-out coal generation • Gradual process concerning 28 coal units/5.5 GW installed capacity: ASSET ROTATION PLAN • Binding commitment by Engie, Enel & AES to close 8 units/1GW by 2024 1GW $1bn • Chile’s challenge: To become carbon-neutral by 2050 ENGIE Energía Chile – Investor Presentation - 1Q20 7 April 29, 2020
Recent ecent events ents ENGIE Energía Chile – Investor Presentation – 1Q20 April 29, 2020
Recent Events Decarbon Decarboniza ization tion announcements announcements Jun. 4, 2019: Agreement with Dec. 8, 2019, COP 25: Engie to close 2 government to phase-out coal-based more coal units => 773 MW of coal generation capacity closed by YE 2024 • Binding commitment by Engie, Enel & AES • Letter of Intent signed w/ IDB Group to to close 8 units/1GW by 2024 structure US$125 million L.T. financing • Commitment to reassess feasibility of • 3 coal units w/730 MW capacity left after further closures every five years 2024 Decarbonization process OUT 773 MW COAL CTM1 CTM2 U12 U13 U14 U15 334 MW 171 MW 268 MW 2019 2020 2021 2022 2023 2024 AFTER-TAX IMPAIRMENTS: 2018: US$53 MILLION 2019: US$134 MILLION ENGIE Energía Chile – Investor Presentation – 1Q20 9 April 29, 2020
Recent Events Laun Launching hing renew enewable ble pr projects ojects October 7, 2019: Launching of first 3 renewable projects of 1GW/US$1bn investment plan Los Loros Calama Capricornio Tamaya Acquired in April 2019 28 of 36 foundations 53% state of advance Construction to start 3Q20 US$ 35 million US$159 million CAPEX US$64 million CAPEX US$68 million CAPEX Green and cost-efficient project pipeline 417 MW RENEWABLES + ~600 MW TO COME IN LOS LOROS CALAMA CAPRICORNIO TAMAYA 55 MWp 151 MW 97 MWp 114 MWp 2019 2020 2021 2022 ACQUISITIONS + FIRST 3 PROJECTS 2019-2021: US$326 MILLION ENGIE Energía Chile – Investor Presentation – 1Q20 10 April 29, 2020
Recent Events Succe Successful ssful lia liability bility mana manageme gement nt Jan 28, 2020: New 10 yr., 3.4%, US$500 million 144A/RegS bond to refinance US$400 million notes due Jan-2021 600.000 7% 500 500.000 Before: 5.34% 6% 400 350 400.000 5% 300.000 4% 200.000 After: 3.85% 3% 100.000 0.000 2% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 • Average debt maturity extended to 7.7 years • Average debt coupon rate lowered to 3.85% Letter of intent signed with IDBI to finance renewable projects contributing to accelerate decommissioning of coal units • Letter of intent signed at COP 25 • IDB Invest seeks to finance renewable energy projects contributing to accelerate decarbonization • ~US$125 million, 10-yr. financing, with A-Loan funded by IDB and B-Loan funded by Clean Technology Fund ENGIE Energía Chile – Investor Presentation – 1Q20 11 April 29, 2020
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