FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018 HIGHLIGHTS KEY - PowerPoint PPT Presentation

FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018

HIGHLIGHTS KEY MESSAGES SOLID ORGANIC GROWTH DRIVEN BY RENEWABLES AND NETWORKS NUCLEAR HEADWIND LARGELY OFFSET BY ENERGY MANAGEMENT SOUND OPERATING CASH GENERATION AND SOLID FINANCIAL STRUCTURE FY 2018 GUIDANCE CONFIRMED AT LOW END OF THE RANGE FOR NRIgs (1) (1) Based on the assumption of a restart of nuclear units in line with current information available on REMIT, at average climate conditions and with an estimated EBITDA of around € 9.2 billion, slightly below the € 9.3 -9.7 billion indicative range FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018 2

SOLID RESULTS, EBITDA UP 5% ORGANICALLY In € bn ∆ ∆ Gross Organic Actual 9M RESULTS 6.5 EBITDA -0.3% +5.0% COI (1) 3.5 +0.0% +7.7% -1.9bn 20.6 NET DEBT vs year-end 2017 4.7 CFFO (2) -0.6 5.7 GROSS CAPEX (3) -0.2 (1) Including share in net income of associates (2) Cash Flow From Operations = Free Cash Flow before Maintenance Capex (3) Net of disposals in renewable activities FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018 3

9M 2018 KEY OPERATIONAL DEVELOPMENTS GENERATION – RES & GENERATION – CLIENT SOLUTIONS NETWORKS THERMAL CONTRACTED MERCHANT B2C France Renewables Nuclear Free Market contracts 2 million smart 0.8 GW in France: 52% of technical meters installed capacity added year to date 7.4m +10% yoy availability in Belgium in 2018 (full year) +22 TWh (+5%) o/w 0.3 GW acquired France power green offers: gas volumes ransported >2m contracts o/w 0.5 GW commissioned +26 TWh (+43%) gas storage capacities sold Others B2B 1.2 GW in France to be commissioned in Q4 Order book in installation Optimization actions on European generation fleet 10.1 months to maximize Q4 availability (+ 3% in € , yoy) FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018 4

SUCCESSFUL REPOSITIONNING ON CORE STRENGTHS GENERATION – CLIENT GENERATION – RES & SOLUTIONS NETWORKS THERMAL CONTRACTED MERCHANT B2C France Renewables Merchant generation ~ 20 GW hydro (1) ~ -17 GW sold or closed B2C customer worldwide € 27.3 bn of RAB vs > 7 GW Wind & Solar ~ 60% reduction in coal 24.1m contracts € 23.3bn end 2015 (+18%) capacities (mainly merchant ) +7% versus 2015 +40% vs end 2015 > 2 GW demothballed >10 GW pipeline by 2023 or optimized in Europe International Upstream & Midstream B2B Thermal contracted > 4 GW capacity installed E&P and LNG disposed € 2.5 bn of capital employed > € 2bn revenue added since 2015 in networks through acquisitions since 2015 Financial structure Performance culture Improved returns 3 YEAR ~ € 7bn (2) Lean 2018 : ROCEp PLAN € 1.3bn net savings at Ebitda level up 30bps (3) net debt reduction (1) Including pumped storage (3) Return on productive capital employed end of period (end 2018 estimate compared to end 2015) (2) Sept 2018 compared to end 2015 FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018 5

2018 TROUGH FOR NUCLEAR STRONG PERFORMANCE IN REST OF BUSINESS EBITDA In € bn, unaudited figures ~ 9.8 (2) ~ 9.8 9.2 9.3 9.2 9.7 5.8 0.2 0.1 ~ -0.6 (2) FY 2018 FY 2016 (1) FY 2017 (1) estimate (2) ENGIE excl. Nuclear Nuclear activities (1) FY 2017 publication (excl. IFRS 9&15 treatment and IFRS 5 treatment for LNG) (2) Estimation based on the assumption of a restart of nuclear units in line with current information available on REMIT, at average climate conditions and with an estimated EBITDA of around € 9.2 billion slightly below the € 9.3 -9.7 billion indicative range FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018 6

BELGIAN NUCLEAR: NEW MEASURES TAKEN PROJECT MANAGEMENT AND ENGINEERING REINFORCED FULL REVIEW OF NUCLEAR OPERATIONS IN BELGIUM SPECIAL MEASURES TO INCREASE GENERATION CAPACITY FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018 7

SOLID ORGANIC EBITDA GROWTH + 5 % In € bn 6.5 +0.2 -0.1 6.5 (0.3) 6.2 +0.2 (0.3) +0.3 Other (1) Lean (1) FX & Scope Volume (1) Nuclear Price (1) FX: (0.2) Vol: (0.3) Scope: (0.1) Price: (0.1) EBITDA EBITDA EBITDA Other: +0.1 EBITDA 9M 2018 9M 2017 9M 2017 9M 2017 Restated EBITDA 2017 FX - Scope Point de passage Nuke Prix volume Lean Other EBITDA 2018 By reportable segment (2)     NORTH AMERICA LATIN AMERICA AFRICA/ASIA BENELUX FRANCE  EUROPE INFRASTRUCTURES    OTHER  GEM excl. France & Benelux EUROPE (1) Effects excluding nuclear (2) Organic variation FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018 8

CLIENT SOLUTIONS GROWTH PICKING UP NETWORKS & GENERATION PERFORMING WELL EBITDA (1) In € bn, unaudited figures FY 2018 YoY Outlook  Contribution from tuck-in +1% acquisitions 1.4 +4%  France B2C gas margins -7% Client solutions B2B & B2T B2C (cost increase not yet passed through)  Storage regulation 2.9 +4%  International networks Networks  Hydro in France 1.9 +3% and Brazil Generation - RES  Solar activities & thermal contracted  Energy management 0.3 o/w Nuke -0.2  Lower European gas spreads -8% 0.5 Generation -  Nuclear volumes and lower prices Merchant 9M 2018 (1) Gross figures excluding unallocated corporate costs FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018 9

SOLID FINANCIAL STRUCTURE In € bn FURTHER DECREASE IN NET DEBT AND COST OF GROSS DEBT ( 4.2 ) 22.5 (4.7) 5.7 ( 0.2 ) 1.5 20.6 Others Gross Dividends Disposals (1) CFFO (incl. hybrids) Capex Net Net Debt Debt 12.17 09.18 Cost of 2.63% 2.53% gross debt IMPROVING LEVERAGE RATIOS 4.0 3.8 (3) 3.8 (3) 2.4 (2) 2.3 (2) 2.25 Financial Net Debt / EBITDA Economic Net Debt / EBITDA Dec 16 Dec 17 Sept 18 In April 2018, S&P confirmed its A-/A-2 rating and revised its outlook from negative to stable (1) Incl. net scope impact from disposals & acquisitions (2) Net debt pro forma E&P interco debt (3) Figures restated for LNG midstream and upstream activities classified as discontinued operations as from March 2018 (IFRS 5) FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018 10

CONCLUSION KEY TAKE-AWAYS 9M 2018 highlighting solid organic performance FY 2018 guidance confirmed, at low end of the range for NRIgs (1) (1) Based on the assumption of a restart of nuclear units in line with current information available on REMIT, at average climate conditions and with an estimated EBITDA of around € 9.2 billion, slightly below the € 9.3 -9.7 billion indicative range FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018 11

ADDITIONAL MATERIAL

OUTRIGHT POWER GENERATION IN EUROPE NUCLEAR & HYDRO In € /MWh and % OUTRIGHT HEDGES: PRICES & VOLUMES 19% 100% 81% 50% 44 33 41 37 89% 2018 2019 2020 2021 As of 09/30/18 Achieved prices MtM (1) Belgium, France (1) Correspond to hedged prices for hedged positions and Mark to Market for open positions as of Sept 30 th 2018 FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018 13

NUCLEAR UNITS IN BELGIUM: UPDATE ON AVAILABILITY CURRENT FORECAST TECHNICAL DESCRIPTION FOR TECHNICAL AVAILABILITY 2019 23/04 01/10 10/12 • Maintenance work linked to 10-year lifetime Doel 1 extension • Replacement of spare pipes of the back-up cooling 22/05 08/10 31/12 Doel 2 water system 13/10 18/11 • Tihange 1 Regularly scheduled maintenance activity 23/07 • Roof of the bunkerized building (non nuclear part) Doel 3 successfully repaired, unit restarted July 23 th 31/03 01/07 02/03 30/09 Tihange 3 • Roof of the bunkerized building (non nuclear part) currently under repair 09/10 31/10 19/08 01/06 Tihange 2 • Analyses of the roof repair under way, to be reviewed per nuclear safety agency AFCN Doel 4 02/11 06/08 15/12 2018 2019 Nuclear plants availability 52% 74% Nuclear production in Belgium (2) (TWh) 22 33 (1) As announced as of September 21 st , 2018 In operation Initial outages (2) Nuclear output in Belgium Engie share Additional outages (1) The total nuclear output Engie share, including Belgium, France and Germany, is expected at 31 TWh in 2018 and 40 TWh in 2019 FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018 14

CFFO: NORMALIZATION OF CHANGE IN WCR In € bn (1.0) 5.3 0.4 4.7 (0.1) 0.1 Operating Cash Delta Interests Taxes Flow WCR paid paid & 1.5 others CFFO CFFO 9M 9M 2017 2018 FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018 15

€ 4.0 BN GROWTH CAPEX ON CORE STRENGTHS BREAKDOWN BY NATURE GROWTH CAPEX BY METIERS In € bn Generation – 5% Merchant Generation – RES 5.9 & thermal contracted 26% 5.7 52% Client Solutions € 4.0bn (1) 2.0 Development 2.5 o/w 40% Renewables Networks 15% Financial 2.4 In € bn MAIN PROJECTS 1.6 Brazil - Renewables ~0.5 NorAm - Renewables (incl. Infinity) ~0.3 France - Renewables (incl Langa) ~0.3 Australia - Willogoleche (Wind) ~0.1 IEM Chile ~0.1 1.6 1.7 Maintenance France - Gas distribution ~0.3 France - Gas Transport (Val de Saône) ~0.2 NorAm - Acquisition (Unity, Socore, Longwood) ~0.3 Gross Capex Gross Capex Electro Power Systems ~0.1 Europe hors France et Benelux – Acquisition (Priora) 9M 2017 ~0.1 9M 2018 Africa - Acquisitions (Spie Maroc, Fenix) ~0.1 Synatom ~0.2 (1) Net of DBSO proceeds FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2018 16