Engie S.a. · EURONEXT:ENGI
Engie — GDF Suez — FY2012 Earnings Presentation
32 slides from Engie's earnings presentation, Feb 28, 2013
Slide 1: Annual Results 2012
Provalys LNG carrier 2012 Biomass heating plant, France ANNUAL RESULTS Sohar power plant, Oman 2012 ANNUAL RESULTS INVESTOR DAY February 28, 2013 December 6, 2012 Images from GDF SUEZ employees 2012 Photocontest
Slide 2: Key messages
Key messages • All 2012 financial targets achieved despite difficult environment • Determined reaction with Perform 2015 action plan • Combining acceleration of Group transformation and strong industrial development • Positive evolution on gas tariffs in France • Financial targets confirmed 2012 ANN
Slide 3: All 2012 financial targets achieved
All 2012 financial targets achieved 2012 actual 2012 targets NET RECURRING INCOME €3.8bn GROUP SHARE +11% €3.7- 4.2bn €10.0bn GROSS CAPEX(1) ~€10/11bn -€0.7bn vs 2011 A / A1(2) “A” category rating FINANCIAL STRUCTURE Adj. net debt/EBITDA 2.5x(3) Net debt/EBITDA ~2.5x DIVIDEND €1.50(4) 2012 dividend
Slide 4: Extra-financial targets well on-track
Extra-financial targets well on-track Delivering on objectives 2012 highlights 2012 level 2015 targets • Significant progress in Health & Safety RENEWABLE ENERGY (installed capacity increase vs. 2009) +26% +50% • French Government label granted to biodiversity action plan HEALTH AND SAFETY(1) 7.6 <6
Slide 5: 2012: strong industrial development and in-depth transformation of the Group
2012: strong industrial development and in-depth transformation of the Group Accelerate development in fast growing markets Already 40% of power generation capacity in fast growing markets(2) • Full acquisition of International Power • Entering new markets (Kuwait, Morocco) CAPACITY UNDER NEW DISPOS
Slide 6: Determined reaction with Perform 2015 action plan
Determined reaction with Perform 2015 action plan An ambitious plan Positive net impact on Net recurring Gross P&L income Group share Capex and working capital In €bn ~0.7 optimization contribution ~0.5 ~0.3 ~€1bn in 2015 ~€3.5bn in 2015 0.1 2012 2013 2014 2015 P&L improvements G&A Purchasing • Rati
Slide 7: 2 levers to accelerate the reshaping of the Group
2 levers to accelerate the reshaping of the Group • 40-50% of growth capex allocated to fast growing markets over 2013-2015 Selective development • Strong reduction of capex: from €10bn in 2012 to €7-8bn per annum over focused on 2013-2015 fast growing - Reduction mainly in mature markets (Europe, N
Slide 8: Securing a positive contribution from gas supply
Securing a positive contribution from gas supply • Intensification of price reviews: option to review all our LT contracts before end 2014 2010 2011 2012 Q1 Q3 Q4 Q4 Q4 • Statoil • Gazprom • Sonatrach • Gazprom • ENI • Statoil • Gas Terra • ENI • Sonatrach • GasTerra • Gas Terra • 2 successful revis
Slide 9: Positive developments on gas tariffs in France
Positive developments on gas tariffs in France Visibility improved & legal principle of costs being covered by the tariff reaffirmed January 1, 2013 • Formula adapted to reflect the improvement of LT supply: 36% market indexation vs 26% in 2012 • Supply and non supply costs covered + margin • Monthl
Slide 10: Improved contribution from power and gas downstream in France
Improved contribution from power and gas downstream in France Strong contribution to the Group‟s performance in 2012 1.2 Downstream EBITDA in €bn 1.0(1) 0.8(2) ~35% 1.2 ~65% Power generation 2010 2011 2012 Leveraging on balanced generation portfolio & sound customer base • Diversified and flexible •
Slide 11: Update on nuclear in Belgium
Update on nuclear in Belgium • In-depth investigation carried out in response to the indications found in the reactor vessels of Doel 3 and Tihange 2 • Conclusions and action plan for restarting both units submitted early December 2012 to the Federal Agency for Nuclear Control (FANC) - Report of an
Slide 12: Financial targets confirmed
Financial targets confirmed(1) • Targets confirmed with: - positive impact of January 30, 2013 decision from ‘Conseil d’Etat’ on gas tariffs - Doel 3 and Tihange 2 restart in Q2 2013 instead of February - update on commodity prices as of end of January 2013 2013 • Net Recurring Income group share(2)
Slide 13: Key financial messages
Key financial messages • Strong reaction to tough environment - Perform 2015: targets 2012 overachieved - Optimization of industrial assets - Acceleration of Group reprofiling • Robust operational performance - 2012 guidance achieved in a tough environment - Impairments on some European assets - Gro
Slide 14: Strong reaction to tough environment: Perform 2015
Strong reaction to tough environment Perform 2015: targets 2012 overachieved €0.8bn gross P&L contribution vs a target of €0.6bn for Efficio 2 In €bn 0.8 Others Energy 6% International 0.2 0.2 Services(1) Environment 19% 18% 0.3 Energy €0.8bn Energy(2) 12% 0.6 Services 31% Energy 0.3 9% Europe Infra
Slide 15: Strong reaction to tough environment: optimization of industrial assets
Strong reaction to tough environment Optimization of industrial assets Power Capacity 2.8 GW closed in 2012 Country Fuel (MW) Status • 7.3 GW closed / mothballed over Ruien 3-4 Belgium Coal 252 Closed 2009–2013 Shotton U.K. Gas 210 Closed Derwent U.K. Gas 210 Closed • 3.6 GW over 2009–2011 Bergum BG
Slide 16: Portfolio optimization program in line with strategy
Strong reaction to tough environment Portfolio optimization program in line with strategy Transactions announced in 2012 Asset optimization program €5.4bn(1) of impact on net debt €11bn over 2013-2014 mainly in mature markets mainly focused on mature markets Renewables Sibelga Eurawasser SPP (Canada
Slide 17: Acceleration of Group reprofiling
Strong reaction to tough environment Acceleration of Group reprofiling • Full integration of International Power • End of shareholders’ agreement of SUEZ Environnement and equity accounting in 2013 • Strong reduction of capex and focused program Gross capex in €bn 2012 growth capex Energy Services M
Slide 18: Robust operational performance
Robust operational performance 2012 guidance achieved in a tough environment In €bn 2011 2012 12/11 Net recurring income group share(1) 3.5 3.8 +11% EBITDA 16.5 17.0 Current Operating Income 9.0 9.5 of which -€2bn of Net income group share 4.0 1.6 impairments post tax Cash Flow From Operations(2)
Slide 19: Impairments on some European assets reflecting depressed energy markets
Impairments on some European assets reflecting depressed energy markets More than 85% in European markets • €2bn of impairment losses post tax United • More than 85% in European markets Kingdom ~120 Eastern • In connection with the deterioration of economic Europe conditions in European markets (pri
Slide 20: Double-digit growth in Net Recurring Income
Robust operational performance Double-digit growth in Net Recurring Income Net Recurring Income Group share, in €m +11% 3,831 +42 (32) +501 (146) Δ D&A, Δ Financial (15) +26 concessions result & share based Δ Income tax Δ Associates Δ Minority payments interests 3,455 • Increase in volume offset by
Slide 21: Growth from all energy business lines
Robust operational performance Growth from all energy business lines Change in EBITDA, breakdown by business line (in €bn) +3.0% 17.0 +0.3 +0.1 +0.01 (0.1) 16.5 +0.1 +0.1 INFRASTRUCTURES ENERGY ENVIRONMENT SERVICES GLOBAL ENERGY ENERGY GAS & LNG 2012 EUROPE INTERNATIONAL EBITDA 2011 Organic growth +
Slide 22: Energy International
Energy International Strong performance in Brazil and Thailand EBITDA 2012 vs 2011 +48 (75) In €m +124 4,327 • Comparable underlying performance +13 387 Australia after a number of one-off positive 401 Asia items in 2011 notably in Chile 247 META • 5.7 GW of new capacity UK-Europe 625 commissioned i
Slide 23: Energy Europe
Energy Europe Energy margins decrease but positive impacts from weather and tariff in France EBITDA 2012 vs 2011 +438 (522) In €m +295 (56) (32) (8) 4,180 • Return to average weather conditions and to normal situation for gas tariff in France CWE(3) 3,427 • Energy margins decrease +3.5% 4,078 4,038
Slide 24: Global Gas & LNG
Global Gas & LNG Strong impact of oil and gas price evolution EBITDA 2012 vs 2011 +529 +7 (28) • Strong impact of oil and gas price evolution In €m (263) • Increase in the level of hydrocarbon production +58 sustained by Gjøa field in Norway • Solid operational results: - 2P reserves reaching all-ti
Slide 25: Infrastructures
Infrastructures Stable organic performance EBITDA 2012 vs 2011 • Return to average weather conditions In €m +81 +23 (77) +58 (10) • Impact of acquisition of German storage facilities in August 2011 on a full-year basis • Lower sales of storage capacities in France 2,991 3,049 3,049 • Annual revision
Slide 26: Energy Services
Energy Services Good resistance to difficult economic conditions EBITDA 2012 vs 2011 In €m • Development of networks +9 (24) (6) • Continued growth in installations (6) +1 +5 & services compensating the expiration of cogeneration feed-in tariffs • International activities affected +1.7% 1,018 by a o
Slide 27: Environment
Environment Solid performance in a challenging context EBITDA 2012 vs 2011(1) • Water Europe: EBITDA organic In €m (59) 54 7 (97) growth both in France & Spain 8 • Waste Europe: Efficient cost variabilization in H2 2012. Volumes and prices affected by challenging economic context 2,513 2,508 2,426 •
Slide 28: 2013 guidance confirmed despite current market prices
Robust operational performance 2013 guidance confirmed despite current market prices 17 (2.4) Change in EBITDA, breakdown by main effect (in €bn) 14.6 ~(0.7) ~0.7 ~(0.5) ~13.9 ~(0.2) ~(0.8) ~0.6 ~(0.3) 13–14(1) 2012 Suez 2012 Scope 2012 proforma 2012 non Commissioning Volume & price Volume & price A
Slide 29: Strong cash flow generation and dynamic debt management
Strong cash flow generation and dynamic debt management 2.5x guidance on net debt/EBITDA already restored Net debt / EBITDA ratio 2.8x 2.6x 2.5x In €bn ≤2.5x 46.4 +3.4 (3.5) Proforma IPR (12.1) +10.0 (0.3) 43.9 (1.1) 42.8 (7.3) 8.8 Dividend paid Disposals Others to GDF SUEZ SPP closed shareholders(1
Slide 30: Strong cash flow generation supporting GDF SUEZ financial equation
Strong cash flow generation supporting GDF SUEZ financial equation In €bn 8.8 8.8 7.8 2.6x Free Cash Flow Dividend paid to GDF SUEZ shareholders 3.4(1) 3.3 3.3 2010 2011 2012 (1) Of which €2.6bn paid in shares 2012 ANNUAL RESULTS – February 28, 2013 30
Slide 31: Conclusion
Conclusion • All 2012 targets achieved with +11% increase in Net Recurring Income • Group deeply transformed, simplified and focused on energy • A challenging 2013-2014 outlook for energy in Europe • Strong reaction to face the shock in Europe with Perform 2015: €3.5bn in P&L and €1bn additional cas
Slide 32: Disclaimer
Disclaimer Forward-Looking statements This communication contains forward-looking information and statements. These statements include financial projections, synergies, cost-savings and estimates, statements regarding plans, objectives, savings, expectations and benefits from the transactions and ex