FY 2016 RESULTS March 2 nd , 2017
AGENDA Key messages & strategy execution Financial update 2017 outlook & conclusion FY2016 RESULTS 2
KEY MESSAGES & STRATEGY EXECUTION KEY MESSAGES 2016 results in line with guidance Ahead of schedule on transformation plan Acceleration of growth engines momentum Back to strong organic growth in 2017 & beyond FY2016 RESULTS 3
KEY MESSAGES & STRATEGY EXECUTION 2016 RESULTS IN LINE WITH GUIDANCE 2016 guidance achieved 2016 guidance 2016 results NET RECURRING INCOME Group share (1) (in € bn) 2.4 – 2.7 (2) 2.5 2.5 x NET DEBT/ EBITDA 2.3 x CREDIT RATING A category A- / A2 € 1/share € 1/share DIVIDEND POLICY € 0.7/share in 2017-18 € 0.7/share in 2017-18 Net Income Group share impacted by non recurring items Strong cash flow generation & significant net debt reduction - € 0.4bn NET INCOME Group share € 9.7bn CFFO € 24.8bn (- € 2.9bn) NET DEBT (1) Net income excluding restructuring costs, MtM, impairment, disposals, other non recurring items and associated tax impact and including nuclear contribution in Belgium (2) Assuming average temperature in France, full pass through of supply costs in French regulated gas tariffs, no significant regulatory and macro economic changes, commodity prices assumptions based on market conditions as of December 31, 2015 for the non-hedged part of the production, and average foreign exchange rates as follow for 2016: € /$: 1.10 ; € /BRL: 4.59 FY2016 RESULTS 4
KEY MESSAGES & STRATEGY EXECUTION AHEAD OF SCHEDULE ON THE 3-YEAR TRANSFORMATION PLAN REDESIGN AND SIMPLIFY PAVE THE WAY IMPROVE ADAPT THE PORTFOLIO FOR THE FUTURE EFFICIENCY THE GROUP Lean 2018: of 3-year New organization 53% New structures in place target already achieved up and running (Key Programs, disposals executed >50% ENGIE FAB, New 2018 target Transformation plan ENGIE Digital) Reinvestment program +20% rolled out in every BU on track: 75% secured € 0.5bn spendings Group ROCEp (1) Empowered and in innovation/digital incentivized top managers 7.4% vs 6.5% in 2015 Refocus on Additional medium Improve Agile growth engines term growth drivers competitiveness organization Value creation (1) ROCEp computed on end of year productive industrial capital employed (excl. assets under construction) FY2016 RESULTS 5
KEY MESSAGES & STRATEGY EXECUTION PORTFOLIO REDESIGN WELL ON-TRACK 2018 TARGETS 2016 PROGRESS US merchant assets sale LOWER EXPOSURE 0% >85% TO COMMODITY PRICES E&P under strategic review ~75% CONTRACTED / REGULATED (1) EBITDA >85% 2016 tuck-in acquisitions full year impact EBITDA 2015 € 1.9bn in 2017 Keepmoat (UK) acquisition DOWNSTREAM >+50% M&A French B2B supply and Oil & Gas services: +2% restructuring plan launched in 2016 CUSTOMER SOLUTIONS EBITDA TO GROW BY >50% PRIORITY TO Coal installed capacity 0% >90% LOWEST CO 2 OPTIONS reduced by 50% 81% CO 2 LIGHT ACTIVITIES (2) EBITDA >90% (1) Excludes merchant power generation, E&P and LNG supply & sales (2) Low CO 2 power generation, gas infrastructures & LNG, downstream FY2016 RESULTS 6
KEY MESSAGES & STRATEGY EXECUTION 2016 DISPOSALS OF NON-CORE ACTIVITIES IN GOOD CONDITIONS US merchant assets Coal In GW In GW installed 15 VALUE CREATION -50% 10 Attractive multiples achieved Unlocking hidden value 7 Capital gains crystallized -90% 1 (1) (2) 2015 2016 2015 2016 E&P under strategic review (1) 2016 installed capacities pro forma closing (February 2017) (2) 2016 installed capacities pro forma disposals/closures already announced FY2016 RESULTS 7
KEY MESSAGES & STRATEGY EXECUTION STRONG TRACK RECORD FROM GROWTH ENGINES LOW CO 2 POWER GLOBAL CUSTOMER GENERATION NETWORKS SOLUTIONS COI CAGR 2011-16 (1) MERCHANT Nuclear Thermal LNG Midstream E&P -24% Merchant supply GROWTH ENGINES Renewables Thermal Gas & Power LNG Terminal Building District Gas & contracted networks & gas storage renovation Heating electricity & Cooling supply 2011-2016 (1) 4% 0% 5% COI - CAGR 4% ~4% services supply Average growth Capex ~ € 0.6bn ~ € 2bn ~ € 0.9bn Strong Leader in B2B energy World IPP leader European leader industrial position in gas infrastructure solutions 9% 11% 7% ~9% ROCE 2016 Growth engines provide 80% Group COI and ~100% Group NRIgs (1) Unaudited figures, organic growth FY2016 RESULTS 8
KEY MESSAGES & STRATEGY EXECUTION 2016: MERCHANT OPTIMIZATION & ACCELERATION OF GROWTH ENGINES LOW CO 2 POWER GLOBAL CUSTOMER GENERATION NETWORKS SOLUTIONS Nuclear Midstream French B2B supply 10-year visibility LT supply contracts renegotiations Restructuring plan MERCHANT & market share stabilized Generation Europe LNG supply Flexible/cash positive fleet Strong measures taken to reduce Optimization charter costs -40% in OPEX Renewables and gas contracted French gas Infrastructures B2C 3m power clients mark in France GROWTH +2.4 GW commissioned +4% gas transported ENGINES +15% French power clients +22% commissionned Regulation secured on gas infrastructures (4-year visibility) B2B in wind & solar Acceleration € 4bn backlog in France, +6% YoY 2.2 GW successful bids International infrastructures B2T +5% awarded Smart cities developments in wind & solar Chile power transmission line Mobility solutions Gas infrastructure assets under development in the US, Mexico x2 pipeline of projects € 2.1bn CAPEX (1) € 0.8bn CAPEX (1) € 0.8bn CAPEX (1) (1) Growth CAPEX for 2016 FY2016 RESULTS 9
KEY MESSAGES & STRATEGY EXECUTION GROWTH ENGINES FUELED BY IDENTIFIED CAPEX LOW CO 2 POWER GLOBAL CUSTOMER GENERATION NETWORKS SOLUTIONS GROWTH CAPEX € 4.8bn € 6.0bn € 3.3bn 2016-2018 ~ € 14BN 75% committed x2 revenues from B2B integrated services Annual RAB growth +2% Capacity increase: +30% number of B2C ~9 GW (1) renewables clients GROWTH DRIVERS ~4 GW (1) gas 2020 AMBITION Double international +30% lighting points B2T EBITDA contribution +10% new DHC networks operated Mid/high single Mid single Low single MID-TERM EBITDA digit digit digit GROWTH (1) At 100% FY2016 RESULTS 10
KEY MESSAGES & STRATEGY EXECUTION GROUP ORGANIC GROWTH TO RESUME IN 2017 CURRENT OPERATING INCOME BACK TO DYNAMIC PROFILE Acceleration on growth engines to provide a strong contribution 2017 GROWTH ~80% onwards... ENGINES MERCHANT ...that will more than offset ~20% the pressure from NON-CORE SOLD disposals and merchant activities 2016 2017 FY2016 RESULTS 11
AGENDA Key messages & strategy execution Financial update 2017 outlook & conclusion FY2016 RESULTS 12
FINANCIAL UPDATE 2016: RESILIENT NET RECURRING INCOME & ROBUST CASH FLOW GENERATION FY 2016 FY 2015 In € bn EBITDA (1) 10.7 11.3 COI including share in net income of associates 6.2 6.3 NET RECURRING INCOME Group share (NRIgs) (2) 2.5 2.6 NET INCOME Group share (0.4) (4.6) CFFO (3) 9.7 9.8 27.7 NET DEBT 24.8 as of end 2015 NET DEBT / EBITDA 2.3 x 2.5 x (1) FY 2015 EBITDA has been restated in order to exclude non recurring contribution of share in net income of entities accounted for using equity method (2) Net income excluding restructuring costs, MtM, impairment, disposals, other non recurring items and associated tax impact and including nuclear contribution in Belgium (3) Cash Flow From Operations (CFFO) = Free Cash Flow before Maintenance CAPEX FY2016 RESULTS 13
FINANCIAL UPDATE EBITDA 2016 IN LINE WITH INDICATION By main effect In € bn o/w € -0.4 bn on outright (E&P and power Europe) -5.2% 11.3 (0.15) (0.15) +0.5 (0.4) (0.7) 10.7 +0.3 FX 2015 Scope EBITDA (1) 2016 BRL Others Lean EBITDA GBP 2018 Volumes Provisions Prices NOK Positive one- Nuclear Commodity offs in 2015 Temperatures in France prices Gas margins Commissioning (COD) (midstream) B2B supply in France Infrastructures E&P volumes tariffs Storage (1) 2015 EBITDA has been restated in order to exclude non recurring contribution of share in net income of entities accounted for using equity method FY2016 RESULTS 14
FINANCIAL UPDATE (1) BY REPORTABLE SEGMENT EBITDA VARIATION In € bn Benelux +0.31 Latam +0.18 Other Europe +0.10 Infrastructure +0.08 France +0.05 Restart D3/T2/D1 Reversal of Italy - Retail Temperatures Temperatures provision Brazil B2B/B2C Services activities UK - Services Tariff increases Chili and Brazil Renewables prices margin Provisions Mexico: COD & margin Noram -0.06 Africa & Asia -0.06 GEM & LNG -0.19 E&P -0.28 Other -0.43 Hazelwood Price & volumes LT contracts Price 2015 provisions availability (generation) renegotiation reversals Volumes (-2.8 mboe) Retail margin Supply disruptions Paiton (one-off) 2015 one-offs in Opex decrease (Yemen) Generation Europe -20% Thermal production Tractebel Engineering Lean 2018 contribution in all reportable segments (1) Organic variation FY2016 RESULTS 15
FINANCIAL UPDATE RESILIENT NET RECURRING INCOME In € bn -4.3% 2.6 (0.6) 2.5 ns ns ns +0.4 NRIgs NRIgs Δ Δ Δ Δ Δ 2015 2016 EBITDA D&A, INCOME FINANCIAL MINORITY OTHERS TAX RESULT INTERESTS & OTHERS FY2016 RESULTS 16
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