Slide 1: FY 2016 Results
FY 2016 RESULTS March 2nd, 2017
Slide 2: Agenda
AGENDA Key messages & strategy execution Financial update 2017 outlook & conclusion FY2016 RESULTS 2
Slide 3: Key Messages & Strategy Execution
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
Slide 4: 2016 Results in Line with Guidance
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 NET DEBT/ EBITDA 2.5 x 2.3 x CREDIT RATING A category A- / A2 €1/share €1/share DIVIDEND POLICY €0.7/share in 2017-18
Slide 5: Ahead of Schedule on the 3-Year Transformation Plan
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: 53% of 3-year New organization New structures in place target already achieved up and running (Key Progr
Slide 6: Portfolio Redesign Well On-Track
KEY MESSAGES & STRATEGY EXECUTION PORTFOLIO REDESIGN WELL ON-TRACK 2018 TARGETS 2016 PROGRESS LOWER EXPOSURE US merchant assets sale 0% >85% TO COMMODITY PRICES E&P under strategic review ~75% CONTRACTED / REGULATED(1) EBITDA >85% EBITDA 2015 2016 tuck-in acquisitions full year impact €1.9bn in 2017
Slide 7: 2016 Disposals of Non-Core Activities in Good Conditions
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
Slide 8: Strong Track Record from Growth Engines
KEY MESSAGES & STRATEGY EXECUTION STRONG TRACK RECORD FROM GROWTH ENGINES LOW CO2 POWER GLOBAL CUSTOMER GENERATION NETWORKS SOLUTIONS COI MERCHANT CAGR 2011-16(1) Nuclear Thermal LNG Midstream E&P Merchant supply -24% GROWTH ENGINES Renewables Thermal Gas & Power LNG Terminal Building District Gas &
Slide 9: 2016: Merchant Optimization & Acceleration of Growth Engines
KEY MESSAGES & STRATEGY EXECUTION 2016: MERCHANT OPTIMIZATION & ACCELERATION OF GROWTH ENGINES LOW CO2 POWER GLOBAL CUSTOMER GENERATION NETWORKS SOLUTIONS Nuclear Midstream French B2B supply 10-year visibility LT supply contracts renegotiations Restructuring plan MERCHANT & market share stabilized G
Slide 10: Growth Engines Fueled by Identified Capex
KEY MESSAGES & STRATEGY EXECUTION GROWTH ENGINES FUELED BY IDENTIFIED CAPEX LOW CO2 POWER GLOBAL CUSTOMER GENERATION NETWORKS SOLUTIONS GROWTH CAPEX 2016-2018 €6.0bn €3.3bn €4.8bn ~€14BN 75% committed B2B x2 revenues from Annual RAB growth integrated services Capacity increase: +2% B2C +30% number o
Slide 11: Group Organic Growth to Resume in 2017
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 GROWTH strong contribution 2017 ENGINES ~80% onwards... MERCHANT ...that will more than offset ~20% the pressure from NON-CORE SOLD di
Slide 12: Agenda
AGENDA Key messages & strategy execution Financial update 2017 outlook & conclusion FY2016 RESULTS 12
Slide 13: 2016: Resilient Net Recurring Income & Robust Cash Flow Generation
FINANCIAL UPDATE 2016: RESILIENT NET RECURRING INCOME & ROBUST CASH FLOW GENERATION In €bn FY 2016 FY 2015 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
Slide 14: EBITDA 2016 in Line with Indication
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 FX +0.3 2015 Scope EBITDA(1) BRL Lean Others 2016 GBP EBITDA Volumes 2018 Provisions NOK Prices Positive one- Commodit
Slide 15: EBITDA Variation by Reportable Segment
FINANCIAL UPDATE EBITDA VARIATION(1) BY REPORTABLE SEGMENT 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 inc
Slide 16: Resilient Net Recurring Income
FINANCIAL UPDATE RESILIENT NET RECURRING INCOME In €bn -4.3% 2.6 (0.6) ns ns ns 2.5 +0.4 NRIgs Δ Δ Δ Δ Δ NRIgs 2015 EBITDA D&A, FINANCIAL INCOME MINORITY 2016 OTHERS RESULT TAX INTERESTS & OTHERS FY2016 RESULTS 16
Slide 17: Net Income Impacted by Non Recurring Effects
FINANCIAL UPDATE NET INCOME IMPACTED BY NON RECURRING EFFECTS Impact NIgs In €bn Impairments -3.8 Gains on disposals +0.6 of which Re-design the portfolio Price impact on Europe merchant power generation -1.5 Paiton, Meenakshi, TEN partial sell-down Impact of nuclear provisions (dismantling) -1.0 AF
Slide 18: Strong Cash Flow Generation
FINANCIAL UPDATE STRONG CASH FLOW GENERATION In €bn Cash equation 10.7 (0.4) 10.3 (1.5) +1.4 9.7 RESTRUCTURING & OTHERS (0.5) TAX CASH NET WCR EXPENSES FINANCIAL 6.6 EXPENSES EBITDA €2.5bn Dividends(2) 2016 CFFO 2016 €0.5bn Dividends to minorities €0.15bn Hybrids coupon €3.4bn Net CAPEX(1) Cash gene
Slide 19: Sound Financial Structure
FINANCIAL UPDATE SOUND FINANCIAL STRUCTURE Net debt further reduced by €2.9bn • Sound cash flow generation (CFFO stable yoy despite decrease in EBITDA) • First impact of the portfolio rotation program (transactions booked for €-4.0bn(1)) Average net debt maturity: 9.4 years Continuous decrease in av
Slide 20: Ahead of Schedule on Transformation Plan
FINANCIAL UPDATE AHEAD OF SCHEDULE ON TRANSFORMATION PLAN 2016-18 TARGET €16bn €4.7bn invested GROWTH (o/w €1bn CAPEX innovation/ +~€7.3bn committed digital) Focus on growth engines & value creation 75% REDESIGN AND SIMPLIFY THE PORTFOLIO €15bn €7.2bn(1) closed PORTFOLIO (net debt ROTATION reduction
Slide 21: Driving Growth Through ~€14bn of Investments
FINANCIAL UPDATE DRIVING GROWTH THROUGH ~€14bn OF INVESTMENTS Significant contributions expected FOCUSED INVESTMENTS 2016-18 INVESTMENT CRITERIA Merchant Returns assets €2bn (E&P) Tuck-in • Project IRR > Project WACC + 200bps acquisitions 1.7 Accretion • NRIgs > 0 as of COD+2 €6.0bn Low CO2 6.0 3.7
Slide 22: Significant Progress Made on Portfolio Rotation
FINANCIAL UPDATE SIGNIFICANT PROGRESS MADE ON PORTFOLIO ROTATION AHEAD OF PLAN WITH ALREADY >50% EXECUTED TO DATE Net debt impact, in €bn €8.0bn of disposals executed 15 Elengy US merchant hydro US thermal Połaniec Paiton (coal) (gas, coal) Farm down Njord Meenakshi (coal) 50% TEN transmission line
Slide 23: Lean 2018: Ahead on Plan & Target Upgraded
FINANCIAL UPDATE LEAN 2018: AHEAD ON PLAN & TARGET UPGRADED 2016 GUIDANCE EXCEEDED BY 6% NET IMPACT ON EBITDA OF €530M 2018 TARGET RAISED BY +20% By reportable segment(1) Net EBITDA increase, in €bn North America 2% Latin America Other(2) incl. 4% Africa / Asia 20% 5% +20% ~1.2 New corp 10% Benelux
Slide 24: Focus on Value Creation
FINANCIAL UPDATE FOCUS ON VALUE CREATION CLEAR FINANCIAL PRIORITIES REINFORCED IMPROVED RISK/ HIGHER VISIBILITY FINANCIAL REWARD PROFILE RETURNS ON DIVIDEND STRUCTURE FOR IMPROVED VISIBILITY ON GROWTH CONFIDENCE IN EXECUTION FY2016 RESULTS 24
Slide 25: Agenda
AGENDA Key messages & strategy execution Financial update 2017 outlook & conclusion FY2016 RESULTS 25
Slide 26: Focused Efforts Driving EBITDA Growth
2017 OUTLOOK & CONCLUSION FOCUSED EFFORTS DRIVING EBITDA GROWTH 2017 EBITDA INDICATION(1) By main effect In €bn Nuclear Others 10.7-11.3 10.7 tax Scope(2) Lean 2018 Volumes 2016 (0.1) FX 10.1 Prices +0.2 2017 EBITDA +0.3 EBITDA 2016 0.0 +0.3 (0.65) +0.15 EBITDA restated o/w 0.0 for nuclear outright
Slide 27: 2017 Guidance: Strong Organic Growth
2017 OUTLOOK & CONCLUSION 2017 GUIDANCE: STRONG ORGANIC GROWTH NET RECURRING INCOME GROUP SHARE(1) DIVIDEND NRIgs €2.4-2.6bn Final dividend 2016 to be paid in May Dividend €0.7/share in cash for 2017 & 2018 confirmed In €bn 2.4-2.6 2.44 At average weather ~2.2 conditions LEVERAGE & RATING “A” catego
Slide 28: Conclusion
2017 OUTLOOK & CONCLUSION CONCLUSION KEY TAKE-AWAYS 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 28
Slide 29: Business Appendices
DISCLAIMER BUSINESS APPENDICES 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