Engie S.a. · EURONEXT:ENGI
Engie — Investor Day (February 2023)
76 slides from Engie's investor day presentation, Feb 21, 2023
Slide 1: Market Update 2023
MARKET UPDATE 2023 21 FEBRUARY 2023 1 ENGIE FEBRUARY 2023
Slide 2: Agenda
AGENDA PART 2 Strategic Market Update Strategic overview Business deep dive Capital allocation and outlook Concluding remarks and Q&A 2 ENGIE FEBRUARY 2023
Slide 3: Jean-Pierre Clamadieu, Chairman of the Board
JEAN-PIERRE CLAMADIEU Chairman of the Board 3 ENGIE FEBRUARY 2023
Slide 4: Agenda: Strategic overview
AGENDA PART 2 Strategic Market Update Strategic overview 4 ENGIE FEBRUARY 2023
Slide 5: Execution – Building the platform
Execution – Building the platform 5 ENGIE FEBRUARY 2023
Slide 6: 2021 Strategic Targets: On Track
Section 1 STRATEGIC OVERVIEW 2021 STRATEGIC TARGETS: ON TRACK Target Strategic Update 2021 2022 achievements < 30 countries by 2023 31 countries in 2022 Business mix Geographic footprint simpler, integrated, At least €11bn by 2023 €11bn more focused Disposals Disposals 2 over 2021-22 3 to 4 to 6 GW
Slide 7: Refocus Realized, Stepping Up the Growth Ramp-up
Section 1 STRATEGIC OVERVIEW REFOCUS REALIZED, STEPPING UP THE GROWTH Simpler, Industrial, a leading role in RAMP-UP faster energy transition Growth Secure & Flexible NETWORKS RENEWABLES Growing renewables Networks supporting capacity security of supply ENERGY FLEX GEN Gaining traction in Critical r
Slide 8: Paving the Way to Achieve Our Net Zero Target by 2045
Section 1 STRATEGIC OVERVIEW PAVING THE WAY TO ACHIEVE OUR NET ZERO TARGET BY 2045 Well on track to phase out coal GHG3 emissions from energy production by 2025 in Europe and 2027 globally NET ZERO 107 Emissions in Mt CO2e by 2045 4 countries 60 1 43 Net zero by 2030 across all scopes NET following
Slide 9: Integrating Nature in Group's Strategy
Section 1 STRATEGIC OVERVIEW INTEGRATING NATURE IN GROUP'S STRATEGY BIODIVERSITY FRESH WATER & OCEAN FOREST / BIOMASS Engaged in the act4nature Signatory of the UN ocean principles Favor local supply chains for biomass international initiative Reduction by 70% of the ratio 100% Deployment of our lab
Slide 10: Energy markets
Energy markets 10 ENGIE FEBRUARY 2023
Slide 11: Recent Crisis and Macro Trends…
Section 1 STRATEGIC OVERVIEW RECENT CRISIS AND MACRO TRENDS… ENERGY MARKETS SHIFT ENERGY TRANSITION TAILWINDS CLIMATE EMERGENCY SECURITY OF SUPPLY AFFORDABILITY DECARBONISATION 11 ENGIE FEBRUARY 2023
Slide 12: …Confirming the Need to Accelerate the Energy Transition
Section 1 STRATEGIC OVERVIEW …CONFIRMING THE NEED TO ACCELERATE THE ENERGY TRANSITION OUR CONTRIBUTION TO A Large development of affordable renewable energy Resilience thanks to flexible generation capacities New distributed energy infrastructure to decarbonise customers Existing infrastructure to e
Slide 13: Gas Has a Key Role to Play in the Energy Transition
Section 1 STRATEGIC OVERVIEW GAS HAS A KEY ROLE TO PLAY IN THE ENERGY TRANSITION No single technology can be the solution to delivering a secure and affordable energy transition, gas has a key role to play. The transition is Strong tailwinds unachievable without gas for gas decarbonization In France
Slide 14: Strong positioning to capture value
Strong positioning to capture value 14 ENGIE FEBRUARY 2023
Slide 15: Unmatched Positioning Thanks to Our Integrated Model
Section 1 STRATEGIC OVERVIEW UNMATCHED POSITIONING THANKS TO OUR INTEGRATED MODEL Distributed infrastructure to 01 RENEWABLES Growing renewables decarbonise our customers capacity Local energy On-site energy Energy networks production performance Onshore Offshore Solar PV Hydro and management 02 Win
Slide 16: Underpinned by an Industrial Culture…
Section 1 STRATEGIC OVERVIEW UNDERPINNED BY AN INDUSTRIAL CULTURE… Full success of our GBUs, driving operational excellence at its best No Simplification Continuous compromise on of our organization improvement Safety and processes • Company-wide safety • Simplification of the Corporate to ~€0.2bn p
Slide 17: …and Key Levers to Achieve Strong Performance
Section 1 STRATEGIC OVERVIEW …AND KEY LEVERS TO ACHIEVE STRONG PERFORMANCE Digital Procurement fully embedded as a into our businesses strategic enabler • Digital platforms at scale to create value • Delivering performance through €330m for the business (e.g., NEMO) savings in 2022 • Best-in-class i
Slide 18: Talent as a Competitive Advantage
Section 1 STRATEGIC OVERVIEW TALENT AS A COMPETITIVE ADVANTAGE ATTRACTION RETENTION DEVELOPMENT ~11% 91% ~+15% attrition of new global leaders in hires in 2022 compared to ~10% in 2021 were developed in-house in 2022 thanks to a strong employer brand 86% ~84% of employees fully engaged of employees
Slide 19: Full Steam Ahead Towards 2025 and 2030
Section 1 STRATEGIC OVERVIEW FULL STEAM AHEAD TOWARDS 2025 AND 2030 +8 GW 01 RENEWABLES 50 GW 80 GW of distributed infrastructure in 2025 in 2030 by 2025 (vs. 2020) CUSTOMERS 02 ENERGY SOLUTIONS 04 NETWORKS GEMS FLEX GEN & 03 ~4 GW RETAIL of hydrogen capacity by 2030 ~10 GW ~10 TWh of batteries capa
Slide 20: Growth Capex 2023-25 Up by +50% Versus Last 2021-23 Plan
Section 1 STRATEGIC OVERVIEW GROWTH CAPEX 2023-25 UP BY +50% VERSUS LAST 2021-23 PLAN +50% €22bn ~70% to in Renewables and €25bn Energy Solutions Growth ~90% €15bn of growth Capex in 10 countries Capex to €16bn ~75% aligned with the EU taxonomy ~10% in batteries and green molecules €7bn €7bn Mainten
Slide 21: 2023-25 Financial Outlook
Section 1 STRATEGIC OVERVIEW 2023-25 FINANCIAL OUTLOOK 1 NRIgs2 Shareholder returns 5.2 (€bn) Dividend policy reaffirmed for 2023-25 4,7 4.4 Payout: 65-75% 4.0 based on NRIgs (total Group, including nuclear) 4,1 Floor at €0.65 2.9 3.8 2.5 2.7 2.5 2.4 3.4 Credit rating 1.7 Dividend policy Strong Inve
Slide 22: Agenda: Business deep dive
AGENDA PART 2 Strategic Market Update Business deep dive 22 ENGIE FEBRUARY 2023
Slide 23: Growth in Renewables
Growth in Renewables Paulo ALMIRANTE Senior EVP in charge of Renewables, Energy Management and Nuclear 23 ENGIE FEBRUARY 2023
Slide 24: Delivering on Our Targets of Profitable Growth
Section 2 BUSINESS DEEP DIVE DELIVERING ON OUR TARGETS OF PROFITABLE GROWTH +7 GW +27 TWh +0.5 €bn Installed capacity (at 100%) Production (at 100%) 1 EBIT 38 GW 112 TWh 2 AMEA +47% 31 GW 5 Northern 22% Merchant 1.6 +2 Growth 2 America 85 TWh €bn 3 23% +1 15 Latin America 1.1 14 €bn 78% Contracted +
Slide 25: Leveraging Competitive Advantages to Increase Our Pipeline
Section 2 BUSINESS DEEP DIVE LEVERAGING COMPETITIVE ADVANTAGES TO INCREASE OUR PIPELINE Global Pipeline (at 100%) Robust platform 80 GW 80 9 Latin • ~5000 FTEs • Close to local stakeholders America • Proven competitiveness Development 36 35 Solar 19 AMEA Step up Industrial player 56 x1.4 • Supply ch
Slide 26: Playing a Leading Role in Offshore Wind Through Ocean Winds
Section 2 BUSINESS DEEP DIVE PLAYING A LEADING ROLE IN OFFSHORE WIND THROUGH OCEAN WINDS Offshore Wind Pipeline (at 100%) 21 GW 1.5 GW (at 100%) in operation 1 Latin America 21 Development 6 3 AMEA 15 GW Step with seabed lease secured up 6 Northern America in 5 countries 17 x1.2 Advanced Development
Slide 27: A Resilient Portfolio Offering a Compelling Investment Profile
Section 2 BUSINESS DEEP DIVE A RESILIENT PORTFOLIO OFFERING A COMPELLING INVESTMENT PROFILE Market exposure 1 Returns2 Business model evolution 3 Project IRR ‘Develop-to-own’ model 23% 30% deployment in portfolio 15% 60-70% 18% 60% already contracted 10% ~50% 40% Group 70% 5% WACC 19% 0% 2020 2030 K
Slide 28: Confirming Our Objectives of 50GW in 2025 & 80GW in 2030
Section 2 BUSINESS DEEP DIVE CONFIRMING OUR OBJECTIVES OF 50GW IN 2025 & 80GW IN 2030 Capacity targets in GW (at 100%) Capex 2023-2025 1 Balanced technology mix 2025 AMEA 80 Northern America 10% Latin America 10% 35% 35% Europe 50 5 €13-14 50% 50 GW 38 2 8 bn 5 30% 18 5% 15 25% 16 19 Europe Latin Am
Slide 29: Security of supply and flexibility: Networks and Flex Gen
Security of supply and flexibility Networks and Flex Gen 29 ENGIE FEBRUARY 2023
Slide 30: Critical Role of Gas Networks
Section 2 BUSINESS DEEP DIVE CRITICAL ROLE OF GAS NETWORKS Strategic role of our infrastructure during the crisis in 2022 Increase imports from Norway The crisis reveals the strategic value of our 193 TWh up 5% infrastructure Storage Security of supply: 5 TWh Storage 18 TWh • Historic record for our
Slide 31: Predictability and Long-Term Cash-Flows
Section 2 BUSINESS DEEP DIVE PREDICTABILITY AND LONG-TERM CASH-FLOWS Growing asset base in France and international Inflation protection ~€39bn ~€36bn €2.4bn ~€32bn 2022 EBIT ~95% of Networks EBIT with inflation protection Strong Cash-flow generation 2019 2022 2025 CFFO RAB France quasi-RAB internat
Slide 32: Build-up of Renewable Gases Value Chain in Europe
Section 2 BUSINESS DEEP DIVE BUILD-UP OF RENEWABLE GASES VALUE CHAIN IN EUROPE Networks growth Capex Networks decarbonisation (€bn) Leveraging on our existing network capacity ~50 TWh / year biomethane connected production 2023-30 capacity in France in 2030 1.0 ~€3.5bn - 30% of methane emissions inf
Slide 33: Hydrogen
Section 2 BUSINESS DEEP DIVE HYDROGEN Connecting renewable power to hard-to-abate sectors Competitive advantages 2030 Renewables power Strong Renewables portfolio production Electrolysis & Expertise in complex industrial e-molecules synthesis process & integration 4 GW H2 production capacity Leading
Slide 34: Our Flexible Fleet Adapts to Greater Market Complexity
Section 2 BUSINESS DEEP DIVE OUR FLEXIBLE FLEET ADAPTS TO GREATER MARKET COMPLEXITY Most affordable technologies to address ENGIE has the asset mix to meet these flexibility needs demands and adapt accordingly HOURLY DAILY WEEKLY SEASONAL Flexible assets Battery storage from immediate to daily flexi
Slide 35: More Flexible and Less CO2 Intensive Fleet
Section 2 BUSINESS DEEP DIVE MORE FLEXIBLE AND LESS CO2 INTENSIVE FLEET ENGIE flexible capacity (GW @ 100%) 81 54 CO2 emissions1 in Mt 70 60 Higher flexibility Leaner and Less CO2 and optionality more agile intensive 50 CRM and ancillaries More efficient Decarbonise gas Others for CCGTs assets plant
Slide 36: Distributed infrastructure to decarbonise our customers
Distributed infrastructure to decarbonise our customers Frank LACROIX EVP in charge of Energy Solutions 36 ENGIE FEBRUARY 2023
Slide 37: Providing Distributed Infrastructure for Customer Decarbonisation
Section 2 BUSINESS DEEP DIVE PROVIDING DISTRIBUTED INFRASTRUCTURE TO BENEFIT THE DECARBONISATION OF OUR CUSTOMERS CLIENTS ARE PUBLIC AUTHORITIES SUPPORT Energy Solutions help URGED TO ACT clients to act on key challenges Support schemes: Reduce energy Climate • US: $369bn incentives for Energy Secur
Slide 38: Addressing Decentralization of Energy
Section 2 BUSINESS DEEP DIVE ADDRESSING DECENTRALIZATION OF ENERGY Key activities EBIT 1 Business model Client segments €524m Local energy networks 62% • District Heating & Cooling (DHC) Asset-based Cities and Industries Properties • Sustainable mobility communities CAGR 2022-25 High single On-site
Slide 39: Robust Value Creation
Section 2 BUSINESS DEEP DIVE ROBUST VALUE CREATION Network Example of DHC extension Network densification BUSINESS MODEL Decarbonization Replicability VALUE CREATION O&M fees Competitive edge to overcome barriers to entry (>80% Energy transformation renewals in France) Cash flow visibility Asset rem
Slide 40: Business Case: Local Energy Networks
Section 2 BUSINESS DEEP DIVE BUSINESS CASE: LOCAL ENERGY NETWORKS District Heating in France ENGIE position1 Platform growth in France ENGIE competitive advantages #1 TWh2 543 In-depth technology & District Heating in France technical know-how 164 District Heating networks owned Decarbonisation expe
Slide 41: Business Case: On-site Energy Production
Section 2 BUSINESS DEEP DIVE BUSINESS CASE: ON-SITE ENERGY PRODUCTION Distributed solar in USA ENGIE position1 Platform growth in USA ENGIE competitive advantages Northeast 340 MW Great Lakes 5-10% Capex saved Installed capacity thanks to Group procurement approach (i.e. solar panels) Development fo
Slide 42: Accelerate Performance Through Our Industrial Asset-Based Approach
Section 2 BUSINESS DEEP DIVE ACCELERATE PERFORMANCE THROUGH OUR INDUSTRIAL ASSET-BASED APPROACH Reinforcement of asset-based profile supported by Performance improvement increasing growth Capex based on selectivity Growth Capex • Activities & geographies rationalization ~35% ~65% €bn/year On-site en
Slide 43: GEMS as a key integrator
GEMS as a key integrator 43 ENGIE FEBRUARY 2023
Slide 44: GEMS at the Center of the Integrated Model
Section 2 BUSINESS DEEP DIVE GEMS AT THE CENTER OF THE INTEGRATED MODEL ENERGY MARKETS UPSTREAM DOWNSTREAM Asset management Clients - & optimization Risk Management & Supply 350 TWh 13 GW 195 TWh 129 TWh LT gas contracts wind & solar GEMS B2B gas sales gas supplied for B2C 29 GW 8 GW 155 TWh 40 TWh
Slide 45: GEMS: Asset Management & Optimization
Section 2 BUSINESS DEEP DIVE GEMS: ASSET MANAGEMENT & OPTIMIZATION UPSTREAM Business case: Monetizing flexibility on gas transportation 150 TWh Transport 3 gas pipeline France to Netherlands 2 Sell gas in Netherlands transport capacity (GEMS contracted capacity) (GEMS B2B clients) - €1/MWh TTF: €100
Slide 46: GEMS: Clients - Risk Management & Supply
Section 2 BUSINESS DEEP DIVE GEMS: CLIENTS - RISK MANAGEMENT & SUPPLY DOWNSTREAM Business case: connecting ENGIE renewable assets with client’s needs (BASF PPA) 68 TWh PPAs signed since 2020 ENGIE 21 TWh BASF renewable assets chemical production 25 years 2 GW PPAs signed in 2022 • Route-to-market •
Slide 47: GEMS Sustainable Growth Drivers
Section 2 BUSINESS DEEP DIVE GEMS SUSTAINABLE GROWTH DRIVERS External and internal drivers EBIT evolution lead to a new normal vs 2021 Uncertainty related to Volatility Prices Volumes B2B Full ENGIE energy markets sold activity roll out environment Normalized Key long-term growth drivers EBIT Asset
Slide 48: Agenda: Capital allocation and outlook
AGENDA PART 2 Strategic Market Update Capital allocation and outlook 48 ENGIE FEBRUARY 2023
Slide 49: Value Creation Framework
Section 3 CAPITAL ALLOCATION AND OUTLOOK VALUE CREATION FRAMEWORK • New organization with clear Driving accountability Earnings growth Simplification • Exit non-strategic activities and geographies Improving • More Renewables VALUE Business mix • Disciplined capital allocation CREATION Sustainable d
Slide 50: Value Creation Framework
Section 3 CAPITAL ALLOCATION AND OUTLOOK VALUE CREATION FRAMEWORK Refocus realized, focusing on growth Driving Target: €9-10 bn, upgraded to at Earnings growth least €11bn - Higher valuation Simplification NRIgs guidance: Execution end 2022: €11bn1 2023: €3.4bn to €4.0bn 2025: €4.1bn to €4.7bn Targe
Slide 51: Sharp Acceleration of Growth Capex
Section 3 CAPITAL ALLOCATION AND OUTLOOK SHARP ACCELERATION OF GROWTH CAPEX 1 +50% compared to 2021-23, focus on Renewables Growth Capex 2023-25 Indicative split by GBU (in %) <5% 5-10% OTHERS c. €22bn FLEX GEN to Full alignment with ENGIE’s CO2 x2 10-15% reduction targets vs. 2021-23 & RETAIL €25bn
Slide 52: Delivering Earnings Through Investments and Continuous Improvement
Section 3 CAPITAL ALLOCATION AND OUTLOOK DELIVERING EARNINGS THROUGH INVESTMENTS AND CONTINUOUS IMPROVEMENT EBIT evolution1 excluding Nuclear (€bn) -2.5 to -2.0 -0.1 to +0.4 c.+0.6 c. +1.5 8.0 7.5 8.0 Others2 7.5 7.2 Performance to to 6.6 to to 8.2 8.5 8.5 7.6 Prices & Investments volatility 5.2 5.2
Slide 53: Rigorous Investment Approach for a Disciplined Capital Allocation
Section 3 CAPITAL ALLOCATION AND OUTLOOK RIGOROUS INVESTMENT APPROACH FOR A DISCIPLINED CAPITAL ALLOCATION Project IRRs at final investment decision STRICT INVESTMENT Over 3 years (2021-2022)1 DISCIPLINE c. €1.5bn 15% • Strategy: strict alignment with additional EBIT energy transition and geographic
Slide 54: Continuous Performance Improvement
Section 3 CAPITAL ALLOCATION AND OUTLOOK CONTINUOUS PERFORMANCE IMPROVEMENT Continuous improvement leading to c. €0.2bn additional net EBIT 2021-23 performance plan almost achieved, a year ahead of time contribution per year (€bn) 0.6 Going forward: embedded performance culture 0.1 OTHERS • Operatio
Slide 55: Portfolio Management
Section 3 CAPITAL ALLOCATION AND OUTLOOK PORTFOLIO MANAGEMENT Simplification and refocusing executed, portfolio management to continue 2023 2024 & 2025 Completion of 2021-23 disposal plan Portfolio management €11bn < 111 at a significantly lower level than 2021-23 with limited earnings dilution clos
Slide 56: 2022-25 EBIT Main Drivers
Section 3 CAPITAL ALLOCATION AND OUTLOOK 2022-25 EBIT MAIN DRIVERS Performance contributing positively across each activity Significant price headwinds embedded vs. vs. Activity Expectations for main EBIT evolution drivers 20212 2022 2021 2022 RENEWABLES Investments contribution, higher prices +++ +
Slide 57: From EBIT to Net Recurring Income Group Share
Section 3 CAPITAL ALLOCATION AND OUTLOOK FROM EBIT TO NET RECURRING INCOME GROUP SHARE FINANCIAL EXPENSES1 EFFECTIVE TAX RATE1 Minorities: Increase of average cost of net debt Normalization expected • Alignment with Group 30.5% EBIT growth 29.3% 3.9% 3.5% • Streamlining of 4 – 5% 3.9% 3.8% Renewable
Slide 58: Increasing CFFO Fueled by Growth and WCR Reversal
Section 3 CAPITAL ALLOCATION AND OUTLOOK INCREASING CFFO FUELED BY GROWTH AND WCR REVERSAL Group CFFO (€bn) Over €40bn of CFFO expected 8.0 between 2022 and 2025 6.5 Working capital requirement to recover over short to medium term 2021 2022 2023 2024 2025 58 ENGIE FEBRUARY 2023
Slide 59: Rebalancing of Capital Employed to Renewables
Section 3 CAPITAL ALLOCATION AND OUTLOOK REBALANCING OF CAPITAL EMPLOYED TO RENEWABLES Capital Employed by Global Business Unit1 (€bn) ENERGY TOTAL2 RENEWABLES NETWORKS SOLUTIONS FLEX GEN (Excl. Nuclear) 28-30 25-27 24 25 c.80 70 64 17 13 9-10 8-9 8 8 8 7 2021 2022 2025 2021 2022 2025 2021 2022 2025
Slide 60: Balanced and Resilient Asset Base
Section 3 CAPITAL ALLOCATION AND OUTLOOK BALANCED AND RESILIENT ASSET BASE Breakdown of Capital Employed by Global Business Unit ENERGY SOLUTIONS RENEWABLES 13% 39% Exposure to inflation overall neutral for ENGIE €9-10bn €28-30bn Merchant1 • A resilient profile: effects from inflation and interest r
Slide 61: Strong Returns Overall for the Group
Section 3 CAPITAL ALLOCATION AND OUTLOOK STRONG RETURNS OVERALL FOR THE GROUP ROACE1 by Global Business Unit 2021 2022 2025 RENEWABLES 6% 8% 7-8% NETWORKS 7% 7% c.7% ENERGY SOLUTIONS 4% 5% 6-7% FLEX GEN 12% 17% 10-15% TOTAL (excl. Nuclear) 6% 9% 7-9% 1. Applying the new Group definition of capital e
Slide 62: Financial Equation
Section 3 CAPITAL ALLOCATION AND OUTLOOK FINANCIAL EQUATION Sources and uses almost balanced over Credit ratio – financial headroom 2022-25 excluding nuclear phase-out (€bn) Net financial debt variations ~11 Nuclear phase-out 2 Economic net debt / EBITDA to increase but remaining below 4.0x Disposal
Slide 63: 2023-25 Financial Outlook
Section 3 CAPITAL ALLOCATION AND OUTLOOK 2023-25 FINANCIAL OUTLOOK 1 2021 2022 2023 2024 2025 EBIT excl nuclear EBIT excl nuclear EBIT excl nuclear EBIT excl nuclear EBIT excl nuclear indication indication indication €5.2bn €8.0bn €6.6 to 7.6bn €7.2 to 8.2bn €7.5 to 8.5bn NRIgs NRIgs NRIgs NRIgs NRI
Slide 64: Agenda: Concluding remarks and Q&A
AGENDA PART 2 Strategic Market Update Concluding remarks and Q&A 64 ENGIE FEBRUARY 2023
Slide 65: ENGIE, Unmatched Positioning to Make the Energy Transition Happen
ENGIE, UNMATCHED POSITIONING TO MAKE THE ENERGY TRANSITION HAPPEN 01 02 03 04 We have built an We are developing a We are accelerating We are paving the industrial platform, balanced and resilient growth with a way to our Net Zero focused on execution energy mix, disciplined capital target with and
Slide 66: Additional Material
DRAFT FOR DISCUSSION ADDITIONAL MATERIAL ACCELERATING [PROFITABLE] GROWTH 21 FEBRUARY 2023 21 FEBRUARY 2023
Slide 67: 2023-25 Financial Outlook
ADDITIONAL MATERIAL 2023-25 FINANCIAL OUTLOOK 2021 2022 2023 2024 2025 EBITDA excl nuclear EBITDA excl nuclear EBITDA excl nuclear EBITDA excl nuclear EBITDA excl nuclear indication indication indication €9.2bn €12.2bn €10.9 to 11.9bn €12.0 to 13.0bn €12.6 to 13.6bn EBIT excl nuclear EBIT excl nucle
Slide 68: Focus on 2023
ADDITIONAL MATERIAL FOCUS ON 2023 Activity Expectations for main EBIT evolution drivers vs. 2022 2022 Growth fueled by capacity commissioned, higher prices captured 2023 2023 11 RENEWABLES and performance, partly offset by inframarginal taxes and lower + sell-downs EBIT Temperature normalization mor
Slide 69: Optimized Maintenance Capex, with c. 50% Contributing to Earnings
ADDITIONAL MATERIAL OPTIMIZED MAINTENANCE CAPEX, WITH C. 50% CONTRIBUTING TO EARNINGS Indicative expectation maintained at c. €2.5 to 2.6bn p.a. on average, progressively reducing till 2030 Maintenance Capex over 2023-25 €7-8bn c. 50% c. 50% non regulated regulated Networks RENEWABLES Maintenance Ca
Slide 70: Capital Employed
ADDITIONAL MATERIAL CAPITAL EMPLOYED From old to new definition Capital employed 2022 ‘OLD’ ‘NEW’ TOTAL CE (€bn) definition definition (Excl. Nuclear) 51 60 70 In order to include financial 9.4 + GEMS initial margins 11.1 11.1 assets dedicated to the OTHERS coverage of nuclear provisions 9.1 9.1 9.1
Slide 71: 2023-25 Key Assumptions
ADDITIONAL MATERIAL 2023-25 KEY ASSUMPTIONS Outright Power Nuclear FX & price Weather conditions Below EBIT Production assumptions indications (% and €/MWh) • Recurring net financial • Belgium nuclear • 5.56 €/BRL • Average temperature availability: over 2023-25 in France costs: €(2.2-2.6)bn 74% 52%
Slide 72: Growing Alignment of Growth Capex with EU Taxonomy
ADDITIONAL MATERIAL GROWING ALIGNMENT OF GROWTH CAPEX WITH EU TAXONOMY, THANKS TO GROUP’S DEVELOPMENT STRATEGY Capex1 Taxonomy 2022 Growth Capex 2022 Eligibility Alignment Eligibility Alignment 65% 58% 72% 68% €9.2bn €9.2bn €5.5bn €5.5bn Eligible/Aligned for taxonomy Not covered by taxonomy 2 Growth
Slide 73: Direct Exposure to Increasing Inflation and Interest Rates
ADDITIONAL MATERIAL DIRECT EXPOSURE TO INCREASING INFLATION AND INTEREST RATES Overall neutral for ENGIE Various direct effects at different levels of the P&L and balance sheet from increasing inflation and interest rates expected to be overall neutral to slightly beneficial, with following main eff
Slide 74: ENGIE Is Committed to Implement a Just Transition
ADDITIONAL MATERIAL ENGIE IS COMMITTED TO IMPLEMENT A JUST TRANSITION The energy transition is not only a technical transition, it changes the whole society There will be no transition without putting human at the center Our Just Transition commitments towards: • Our clients: providing affordable en
Slide 75: Breakdown of Renewables Installed Capacity
ADDITIONAL MATERIAL BREAKDOWN OF RENEWABLES INSTALLED CAPACITY As of 31 December 2022 By technology Hydro Onshore wind By geography France Rest of Europe (GW) Offshore wind (GW) Latin America At 100% Solar At 100% Northern America Other RES AMEA 37.9 GW 37.9 GW 2.3 5.3 4.6 1.5 At % consolidation1 At
Slide 76: Installed Capacity 2022, 2025 and 2030 per Technology
ADDITIONAL MATERIAL INSTALLED CAPACITY 2022, 2025 AND 2030 PER TECHNOLOGY These splits are communicated for indicative purpose. They might evolve depending on market evolution and in line with our ambition to get the higher returns. ENGIE installed capacity at 100% 2022 - 2030 80GW (GW at 100%) 22 5