Presentation to investors 9M18 Results AGENDA Snapshots Key - PowerPoint PPT Presentation

ENGIE ENERGÍA CHILE S.A. Presentation to investors 9M18 Results

AGENDA Snapshots Key messages Financial update Addenda 2 Engie Energía Chile - Presentation to Investors – 9M 2018

SNAPSHOT: ENGIE S.A. ENGIE: A GLOBAL ENERGY PLAYER GLOBAL LOW CO 2 POWER CUSTOMER GENERATION NETWORKS SOLUTIONS World leading independent European leader in gas 24m customers in Europe power producer infrastructures € 27bn (3) regulated asset Global leader in energy 103 GW (1) installed base in France solutions for cities +250 distribution heating & 12bn m 3 storage capacity ~90% low CO 2 cooling networks worldwide 23m individual and Expertise in power 26% renewables (2) transmission & distribution professional contracts Capacity breakdown EBITDA gas infrastructures EBITDA by type of business 89% low CO 2 5% 0.4 0.7 7% 6% €2.3bn (4) €3.8bn (4) 103 GW (1 ) 3.4 1.1 56% 26% 0.5 Natural gas Nuclear Other France Renewables (2) Coal B2B B2T B2C Other EU & International B2B: Business to Business B2T: Business to Territories (1) At 31/12/2017, at 100% (3) Incl. Storengy in France, regulated as from 01/01/2018 (2) Incl. pumped storage for hydro (3%) (4) 2017 EBITDA B2C: Business to Customers Engie Energía Chile - Presentation to Investors – 9M 2018 3

SNAPSHOT: CHILEAN ELECTRICITY INDUSTRY SISTEMA ELÉCTRICO NACIONAL (SEN) TWO MAIN GRIDS RECENTLY INTERCONNECTED Gross installed Generation capacity (MW) 9M18 (GWh) Solar Hydro 10% 27% Wind Wind 6% Hydro 7% 28% Solar 7% 57,419 GWh 24,095 MW Thermal Thermal SEN 60% 55% 3,300 Km Market Share Clients (% installed capacity Sept-18) Enel Regulated 27% EECL 52% 8% Colbún 14% 10,570 MW 24,095 MW AES Gener Tamakaya 17% 2% Unregulated Other 48% 32% Source: CNE 4 Engie Energía Chile - Presentation to Investors – 9M 2018

SNAPSHOT ENGIE ENERGÍA CHILE EECL: A RELEVANT PLAYER IN THE CHILEAN POWER INDUSTRY RELEVANT PLAYER IN THE ENERGY CONTRACTED GROWTH UNDERWAY BUSINESS INDUSTRY Leader in northern mining New 15-yr regulated PPA Capacity contracted under    region, 4 th largest electricity w/distribution companies long-term sales agreements; 12 years remaining average generation company in starting 2018 => 48% life Chile contracted physical sales growth by 2019 Strong counterparties ~1.9GW gross generation   capacity; ~0.3GW under Unregulated: mining 50%-owned TEN ~US$ 0.8   construction companies; bn transmission project Regulated: distribution began operations in 4Q17  3 rd largest transmission  companies company ~US$ 1 bn new power  generation capacity + port Strong sponsorship Seaport infrastructure, gas  to start operations in 1Q19 pipeline Float 21.8% 52.8% Engie Energía Prepared to provide energy Good delivery in growth AFPs (Chilean Chile pension funds) solutions to its customers strategy implementation 25.5% Engie Energía Chile - Presentation to Investors – 9M 2018 5

SNAPSHOT: ENGIE ENERGÍA CHILE’S ASSETS A DIVERSIFIED ASSET BASE TO MEET OUR CLIENTS’ ENERGY NEEDS Technology Coal Diesel/FO Chapiquiña (10MW) 1,928 MW (*) in Natural gas operation & 375 MW El Aguila I (2MW) Renewables in construction Pampa Camarones (6MW) Diesel Arica (14MW) 2,293 kms HV + MV transmission lines & 50% TE Tocopilla (877MW) Collahuasi share in TEN 600 km, 500 kV project El Abra Tocopilla port Chuquicamata Mining Operations C. Tamaya (104MW) Gaby 2 seaports TE Mejillones (560MW) Escondida Gasoducto Norandino Gas pipelines & CT Andina (177MW) Chile - Argentina (Salta) Long term LNG supply agreements CT Hornitos (177MW) 50% share in TEN transmission project (*) The CNE authorized EECL to disconnect Central Diesel Iquique (43MW) The CNE also authorized EECL to disconnect units 12 and 13 in Tocopilla (170MW combined gross capacity) as early as April 2019, subject to the completion of the Interchile transmission project Engie Energía Chile - Presentation to Investors – 9M 2018 6

SNAPSHOT: EECL IN 2018 2018: THE BEGINNING OF A NEW ERA NEW PPA: NEW POWER INTERCONNECTION REVENUE & EBITDA SUPPLY GROWTH Contracted revenue growth TEN : 600-km, 500 kV, IEM + Puerto Andino    ~US$0.8bn , transmission ~8,200 GWh p.a. in 2017 • ~US$1 bn investment  project • ~12,000 GWh p.a. in 2019 including port On schedule, within budget, More balanced portfolio   Port: In operations  (Unregulated/regulated) operating since 24-Nov-17 IEM: On commissioning 77%/23% in 2017 • COD: 1Q19 Regulated & contracted  • 55%/45% in 2019 revenue; ~US$80 million IEM: 375 MWe gross  EBITDA p.a. Expected EBITDA growth capacity  (>80% in 2 years) +2 LNG cargoes – 2018  TEN: 50/50 Joint Venture 80% project financed +1 LNG cargo – 2019 Clients’ Sales (GWh) 1-year bridge contracts with  generation companies to meet new PPA Red EECL 2017 2018 2019 Eléctrica 50% Unregulated Regulated 50% Engie Energía Chile - Presentation to Investors – 9M 2018 7

AGENDA Snapshots Key messages Financial update Addenda 8 Engie Energía Chile - Presentation to Investors – 9M 2018

KEY MESSAGES Results in line with guidance Mastering the growth achieved Building our future together with our clients PPA renegotiation, decarbonization & life extension Paving the way for our energy transformation plan Development focused on replacing coal with renewable capacity Robust capital structure Ample room to finance energy transformation plan 9 Engie Energía Chile - Presentation to Investors – 9M 2018

KEY MESSAGES RECENT EVENTS INDUSTRY COMPANY • Amendments to the Codelco and • SIC-SING interconnection: In operations SING Glencore PPAs signed on April 2: tariff SEN since November 24, 2017, giving birth to decrease, full indexation to CPI starting “Sistema the SEN. The TEN project was ready 2021, and PPA life extension Eléctrico ahead of schedule and within budget Nacional” • IEM successfully synchronized Oct.29 . • Government and Generation Companies’ COD rescheduled for 1Q19 agreement to phase out coal generation • • CNE authorized disconnection of U12 & National transmission project bids: The SIC U13 coal units (combined 170 MW) CEN has conducted public auctions to award expansion and new projects under • The new 15-year PPA with distribution the Annual National Transmission companies started in 2018 Expansion Plan (D.E.422/2017-Ministry of Energy): 4 companies were awarded New • Projects with aggregate referential Bridge PPAs with generation companies investment value of US$300 million, 13% of were signed to supply ~60% of demand under the above PPA which were awarded to EECL • • Zonal transmission project bids: The Puerto Andino : 1,191k tons of fuel / 19 shipments unloaded, including 1 Capesize CEN conducted public auctions for 31 projects with aggregate referential • investment value of US$570 million under Dividends: US$26 million paid Oct-26 the Annual Zonal Transmission Expansion Plan (D.E.418/2017-Ministry of Energy). • S&P/Fitch: EECL’s BBB ratings confirmed Engie Energía Chile - Presentation to Investors – 9M 2018 10

RESULTS IN LINE WITH GUIDANCE: MASTERING THE GROWTH ACHIEVED 9M18 RESULTS IN LINE WITH GUIDANCE • EBITDA increased 39% mainly due to the new PPA with distribution companies • Net income was impacted by non-recurring asset impairments 9M17 9M18 Variation Operating Revenues (US$ million) 782.2 950.7 +22% 200.5 EBITDA (US$ million) 278.5 +39% EBITDA margin (%) 25.6% 29.3% +3.7 pp Net income (US$ million) 69.3 72.5 +5% Net income-recurring (US$ million) 60.9 120.9 +99% Net debt (US$ million) 770.5 (*) 810.8 +5% Spot energy purchases (GWh) 2,458 2,788 +13% Energy purchases - Bridge (GWh) 0 627 n.a. Physical energy sales (GWh) 6,505 7,308 +12% Net debt increased due to (i) expansion CAPEX financing and (ii) a ~US$60 million long-term tolling agreement with  TEN accounted for as a financial lease. (*) Net debt as of 12/31/2017 Engie Energía Chile - Presentation to Investors – 9M 2018 11

RESULTS IN LINE WITH GUIDANCE: MASTERING THE GROWTH ACHIEVED DEMAND SUPPLIED WITH OWN GENERATION, SPOT PURCHASES AND BRIDGE CONTRACTS US$/MWh 140 Average monomic price US$115/MWh 120 U12 & U13 coal plants : 3% of 9M18 power supply. 100 Authorization to close down Diesel by Apr-19. Average fuel & 80 electricity purchase cost: US$65/MWh 60 40 U15 U14 CTM3 U16 U13 U12 Bridge CTA Spot purchases CTH CTM1 CTM2 contracts 20 Firm capacity 0 overcosts ToP Regas Bridge LNG Coal Diesel Renewables Coal Spot 2,788 GWh Coal 2,073 GWh 691 GWh 627 GWh 1,019 GWh 221 GWh 7 GWh 49 GWh Total energy available for sale before transmission losses 9M18 = 7,475 GWh Average realized monomic price, spot purchase costs and average cost per MWh based on EECL’s accounting records and physical sales per EECL data. Average fuel & electricity purchase cost per MWh sold includes the LNG regasification cost, green taxes, firm capacity, self consumption & transmission losses Net system over-costs and ancillary service costs averaged US$0.1 per each MWh withdrawn by EECL to supply demand under its PPAs. Engie Energía Chile - Presentation to Investors – 9M 2018 12