Slide 1: TAG acquisition: Financial impacts
TAG acquisition Financial impacts Conference call June 24, 2019 1
Slide 2: Recent developments across ENGIE businesses
Client Solutions Renewables Thermal / Nuclear Others 35-year DHC contract in ENGIE-EDPR MOU to Ottawa (Canada) create a leading Completion of Glow global offshore wind player disposal (Thailand) European partnership with Fiat-Chrysler ENGIE largest corporate for new e-mobility solutions Renewable JV
Slide 3: Global gas networks presence 2018
Global gas networks presence 2018 €27.3bn RAB and Networks €2.0bn COI accounted for 45% of Group for French COI in 2018 Networks Worldwide gas grids: >250,000 km distribution (with >14m RAB/CE EUROPE LATAM OTHER customers) and 2018(1) €28.7bn €1.3bn €0.1bn >35,000 km transmission >€30bn RAB/CE Gas n
Slide 4: Strategic, operational and financial rationale
STRATEGIC OPERATIONAL FINANCIAL • More geographic diversification and • No construction risk: already in operation • Immediate positive earnings contribution development of large scale regulated networks • ENGIE as industrial partner, managing the • Significant medium-term growth assets asset after
Slide 5: TAG geographical and technical characteristics
Geographical characteristics Technical characteristics • ~4,500 km high pressure gas pipelines on the Northeast coast (3,700 km) and the Amazon Region (800 km) • 12 compression stations (6 proprietary and 6 subcontracted) • Network with various interconnection points: - 10 gas distributors - 91 deli
Slide 6: Transport fees on medium-/long-term gas transportation agreements
TRANSPORT FEES ON MEDIUM-/LONG-TERM GAS TRANSPORTATION AGREEMENTS (GTAs) WITH TAKE-OR-PAY CLAUSES Current existing contracts with average residual duration of c. 12 years • After expiration of the current contracts: tariff Contracted will be restated by the ANP(1), what will lead Agreement Terminati
Slide 7: O&M activities and staff optimizations/upsides
O&M ACTIVITIES STAFF OPTIMIZATIONS/UPSIDES Currently, O&M is 100% contracted Total targeted workforce: Technical: with Transpetro (fully owned 300-350 people - Processes reengineering by Petrobras) - Tech. expertise/best practices Staffing strategy from GRTgaz/Engie Mexico ENGIE to take full O&M sco
Slide 8: TAG net debt impact of €1.6bn for ENGIE
Consortium Transaction capital structure €7.7bn Consideration paid for 90% of TAG shares ($8.6bn) of which long-term and non-recourse Debt €5.3bn ~70% ENGIE Brasil in local and foreign currencies ENGIE S.A. Energia(1) of which Equity €2.4bn ~30% 32.5% 32.5% 35.0% incl. bank fees Aliança Total Equity
Slide 9: P&L contribution at ENGIE level
P&L CONTRIBUTION AT ENGIE LEVEL Earnings accretion by 2021(2), in €bn • TAG accounted for as an associate ENGIE ENGIE (equity method) ENGIE S.A. Brasil consolidated Energia • COI level: positive contribution of 58.5% of TAG’s net income(1) - 29.25% from the equity stake owned by ENGIE SA COI(3) ~0.0
Slide 10: TAG's contribution for ENGIE
TAG’s contribution for ENGIE TAG’s contribution for ENGIE at Current Operating Income(2) level, in €bn at net recurring income Group share level, in €bn > 10% CAGR to 2024 > 15% CAGR to 2024 ~0.13 ~0.1 ~0.06 ~0.04 2019 2021 2024 2019 2021 2024 Material investment beyond the scope of previously annou
Slide 11: Forward-Looking statements
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 expectations
Slide 12: Ticker: ENGI and investor contact
Ticker: ENGI +33 1 44 22 66 29 ir@engie.com http://www.engie.com/en/investors-area/ 12