Engie S.a. · EURONEXT:ENGI
Engie — Investor Day (February 2025)
52 slides from Engie's investor day presentation, Feb 27, 2025
Slide 1: Market Update 2025
Market Update 2025 27 February 2025 1 ENGIE FEBRUARY 2025
Slide 2: Agenda
AGENDA PART 1 PART 2 FY 2024 Results Market Update and Q&A 01 STRATEGIC OVERVIEW 02 Business Deep Dive 03 Capital allocation and outlook 04 Concluding remarks and Q&A 2 ENGIE FEBRUARY 2025
Slide 3: Strategic Overview
PART 2 - SECTION 01 STRATEGIC OVERVIEW STRATEGIC OVERVIEW CATHERINE MACGREGOR 3 ENGIE FEBRUARY 2025
Slide 4: Outstanding execution over the last 4 years
PART 2 - SECTION 01 STRATEGIC OVERVIEW OUTSTANDING EXECUTION OVER THE LAST 4 YEARS Strong achievements • Consistent execution, in all businesses +15 GW +2,100km Delivering Renewables Power lines outstanding results • Highly successful capital 2021-2024 2021-2024 NRIgs (€bn) reallocation +2.6 GW 14 G
Slide 5: Energy market trends: our conviction
PART 2 - SECTION 01 STRATEGIC OVERVIEW ENERGY MARKET TRENDS: OUR CONVICTION Power demand, affordability, sovereignty & climate are structural engines of the Energy Transition 01 Electrification 02 Flexibility 03 Power grid is underway is essential investment in and molecules are to underpin the stea
Slide 6: Ambition to be the 'best energy transition utility'
PART 2 - SECTION 01 STRATEGIC OVERVIEW AMBITION TO BE THE ‘BEST ENERGY TRANSITION UTILITY’ BEST “Energy Transition Utility” • A unique business and geographical mix and integrated structure: ideally positioned for growth • Unparalleled Energy Management skills & balanced portfolio of high-quality cl
Slide 7: A new organisation to seize market opportunities and strengthen our industrial model
PART 2 - SECTION 01 STRATEGIC OVERVIEW A NEW ORGANISATION TO SEIZE MARKET OPPORTUNITIES AND STRENGTHEN OUR INDUSTRIAL MODEL • Capture market opportunities New ENGIE ‒ Deliver greener and smarter electrons organisation ‒ Be the first to offer 24/7 carbon-free electricity to all of our customers ‒ Exp
Slide 8: ENGIE today: an integrated model for the energy transition
PART 2 - SECTION 01 STRATEGIC OVERVIEW ENGIE TODAY: AN INTEGRATED MODEL FOR THE ENERGY TRANSITION RENEWABLES NETWORKS SUPPLY & & ENERGY FLEX POWER €32bn MANAGEMENT RAB on French gas 102 GW LOCAL ENERGY 500 TWh installed capacity INFRASTRUCTURES sold in 2024 341 DHC Networks 8 ENGIE February FEBRUARY
Slide 9: Data, digital & AI: top-to-bottom role in our industrial processes
PART 2 - SECTION 01 STRATEGIC OVERVIEW DATA, DIGITAL & AI: TOP-TO-BOTTOM ROLE IN OUR INDUSTRIAL PROCESSES Strong and resilient To accelerate value creation foundations established +26% investments over 2021-2024 61% 3.2+ Pbytes Asset Enhanced AI- machines in the cloud of data in ENGIE’s Data Hub Opt
Slide 10: Climate strategy: new ambitious targets for 2030
PART 2 - SECTION 01 STRATEGIC OVERVIEW CLIMATE STRATEGY: NEW AMBITIOUS TARGETS FOR 2030 • Higher ambitions: NEW key objective: -55% between 2017 -> 2030 Total GHG emissions (scopes 1, 2 & 3) • Greater visibility 157 2024 (2035 -2040) 140 • Improved clarity (total emissions objective) 120 2030 110 •
Slide 11: Unstinting commitment to our growth strategy for 2030
PART 2 - SECTION 01 STRATEGIC OVERVIEW UNSTINTING COMMITMENT TO OUR GROWTH STRATEGY FOR 2030 95 GW 10,000 km 300 TWh From 51 GW in 2024 From 5,400 km in 2024 From 210 TWh in 2024 Renewable and storage Power transmission lines Power sales (B2B & B2C) 50 TWh/y From 13 TWh in 2024 Biomethane capacity c
Slide 12: Strong value creation for shareholders
PART 2 - SECTION 01 STRATEGIC OVERVIEW STRONG VALUE CREATION FOR SHAREHOLDERS NRIgs 2025 2026 2027 GUIDANCE €4.4 to 5.0bn €4.2 to 4.8bn €4.4 to 5.0bn DIVIDEND POLICY 65 – 75% €1.10 pay-out ratio dividend floor as of 2025 12 ENGIE FEBRUARY 2025 Changer photo
Slide 13: Agenda
AGENDA PART 1 PART 2 FY 2024 Results Market Update and Q&A 01 Strategic Overview 02 BUSINESS DEEP DIVE 03 Capital allocation and outlook 04 Concluding remarks and Q&A 13 ENGIE FEBRUARY 2025
Slide 14: Greener and smarter electrons
GREENER AND SMARTER ELECTRONS PAULO ALMIRANTE 14 ENGIE FEBRUARY 2025
Slide 15: Renewable & Flex Power - an industrial platform delivering greener & smarter electrons
PART 2 - SECTION 02 BUSINESS DEEP DIVE RENEWABLE & FLEX POWER - AN INDUSTRIAL PLATFORM DELIVERING GREENER & SMARTER ELECTRONS Installed capacities (at 100%) 10% • Well balanced portfolio NorAm between renewable and 50% 44% flexible assets Gas Renewables 34% generation 22% Europe LatAm • Leveraging s
Slide 16: Global pipeline allows for geographic flexibility and selective growth
PART 2 - SECTION 02 BUSINESS DEEP DIVE GLOBAL PIPELINE ALLOWS FOR GEOGRAPHIC FLEXIBILITY AND SELECTIVE GROWTH Global Pipeline (at 100%)1 2030 Installed Capacity (GW at 100%) 115 GW 95 GW All combined 115 10 LatAm X2.6 technologies Development 49 46 Solar +38 GW Hydro 44 AMEA 91 57 Pumped 51 3 Storag
Slide 17: Execution track-record delivering attractive returns
PART 2 - SECTION 2 BUSINESS DEEP DIVE EXECUTION TRACK-RECORD DELIVERING ATTRACTIVE RETURNS Strong High Attractive EBIT contribution Return on investments Investment proposal Project IRR3 • Balanced portfolio of technologies 15% (Wind, Solar, BESS, Hydro) €12bn • Balanced portfolio of Capex 2020-2023
Slide 18: Renewable brings structural increase of volatility
PART 2 - SECTION 2 BUSINESS DEEP DIVE RENEWABLE BRINGS STRUCTURAL INCREASE OF VOLATILITY US ERCOT France / Belgium Engie Gas Generation Europe Average of daily differences Average of daily differences 1.0 43 between high and low prices between high and low prices 37 40% ($/MWh) (€/MWh) 0.8 250 250 E
Slide 19: Gas generation provides strong earnings with high visibility
PART 2 - SECTION 2 BUSINESS DEEP DIVE GAS GENERATION PROVIDES STRONG EARNINGS WITH HIGH VISIBILITY EBIT Gas generation (contribution in %) Flex International 2024 (€1.3bn) 2025-2027 • Long term PPAs, with some commodity exposure (€0.6 to €1bn) in Latam Open Hedged Expected • PPA maturity average of
Slide 20: BESS adds significant capacity and EBIT growth
PART 2 - SECTION 2 BUSINESS DEEP DIVE BESS ADDS SIGNIFICANT CAPACITY AND EBIT GROWTH Strong Half of revenue SCALE GROWTH EBIT growth locked in installed capacity (GW) 5GW in BESS EBIT2 Revenues Open Secured operation and 9 (€bn) ~40% under ~ 0.4 construction at end-2024 ~60% 2.6 10 countries1 1 ~0.1
Slide 21: Toward 24/7 decarbonized electricity
Supply & Energy Management Toward 24/7 decarbonized electricity 21 ENGIE FEBRUARY 2025
Slide 22: Energy management expertise key to unlock value from supply activities
PART 2 - SECTION 02 BUSINESS DEEP DIVE ENERGY MANAGEMENT EXPERTISE KEY TO UNLOCK VALUE FROM SUPPLY ACTIVITIES B2B B2C Renewables and Energy Supply Flex Assets Energy Supply 200k 2 years 80% clients contracts Margin 106 TWh 36 TWh locked-in Gas delivered Power delivered 190 TWh 174 TWh 1st year gas d
Slide 23: ENGIE is best positioned to offer 24/7 carbon free power
PART 2 - SECTION 02 BUSINESS DEEP DIVE ENGIE IS BEST POSITIONED TO OFFER 24/7 CARBON FREE POWER 24/7 offer PPA sales ambitions (delivered volumes in TWh) Other Flex Higher Value solutions e.g., CCGT with green gas; DSM x10 Energy storage Local on/offshore wind, solar 21 31 10 As produced PPA 2020 20
Slide 24: Securing the future of networks
Infrastructures Securing the future of networks 24 ENGIE FEBRUARY 2025
Slide 25: Maintaining the sustainability of our gas assets
PART 2 - SECTION 02 BUSINESS DEEP DIVE MAINTAINING THE SUSTAINABILITY OF OUR GAS ASSETS • Adapt gas infrastructures to green molecules €32bn (2024) c.€6bn (2025-27) • Develop green gases French RAB Total capex ➢ 50 TWh/year biomethane capacity connected to French networks in 2030 €3.6bn (2024) c.€8b
Slide 26: Expanding in power networks
PART 2 - SECTION 02 BUSINESS DEEP DIVE EXPANDING IN POWER NETWORKS Power transmission line Networks EBIT 2027 vs 2024 Power distribution (‘000km in operation) c.15% • ENGIE will consider potential >10 8% acquisition only if completely aligned with its capital allocation policy 5.4 2024 2030 EBIT Pow
Slide 27: Recentring local energy infrastructures on Europe
PART 2 - SECTION 02 BUSINESS DEEP DIVE RECENTRING LOCAL ENERGY INFRASTRUCTURES ON EUROPE Prioritising our 5 main European markets Simplified organization to improve efficiency in our 3 core activities LEADING PLAYER EBIT(€bn / year) Growth Capex IN EUROPE (€bn / year) GERMANY 0.9 POLAND FRANCE 0.6-0
Slide 28: Agenda
AGENDA PART 1 PART 2 FY 2024 Results Market Update and Q&A 01 Strategic Overview 02 Business Deep Dive 03 CAPITAL ALLOCATION AND OUTLOOK 04 Concluding remarks and Q&A 28 ENGIE FEBRUARY 2025
Slide 29: Capital allocation and outlook
PART 2 – SECTION 3 CAPITAL ALLOCATION & OUTLOOK CAPITAL ALLOCATION AND OUTLOOK PIERRE-FRANÇOIS RIOLACCI 29 ENGIE FEBRUARY 2025
Slide 30: Proforma under the new organization
PART 2 – SECTION 3 CAPITAL ALLOCATION & OUTLOOK PROFORMA UNDER THE NEW ORGANIZATION 3 reporting segments Pro forma EBIT CFFO Growth Capex1 €m 2023 2024 2023 2024 2023 2024 Renewable & Flex Renewables & Flex Power 3,539 3,696 3,755 3,691 5,796 5,193 Power Renewables & BESS 2,310 2,413 2,282 2,122 5,5
Slide 31: Value creation framework
PART 2 – SECTION 3 CAPITAL ALLOCATION & OUTLOOK VALUE CREATION FRAMEWORK Target: €21-24bn growth capex1 over 2025-27 Earnings 2 Value accretive ~75% in Renewables, Power investments 2021: €2.9bn Networks and Batteries 2024: €5.5bn IRR: ~200bps above WACC 2027 : €4.4bn to €5.0bn Accelerating on Execu
Slide 32: Dynamic capital allocation
PART 2 – SECTION 3 VALUE ACCRETIVE CAPITAL ALLOCATION & OUTLOOK INVESTMENTS DYNAMIC CAPITAL ALLOCATION with ~75% in renewables, power networks and batteries 2025-27 growth Capex1 Discipined Allocation Renewables 45 – 55% Above €1.5bn of additional EBIT from 2025-27 projected CODs Full alignment with
Slide 33: Capital employed in 2027: +~20% vs 2024
PART 2 – SECTION 3 VALUE ACCRETIVE CAPITAL ALLOCATION & OUTLOOK INVESTMENTS CAPITAL EMPLOYED IN 2027: +~20% VS 2024 1 with focused deployment in renewables, power networks and batteries Capital Employed (€bn) Renewables & Supply & Infrastructures Flex Power Energy Management Indicative ROACE 43-47 3
Slide 34: Compelling investments
PART 2 – SECTION 3 VALUE ACCRETIVE CAPITAL ALLOCATION & OUTLOOK INVESTMENTS COMPELLING INVESTMENTS to provide accretive returns Key drivers Strong pipeline allow for selectivity & accretive returns • Strong demand for affordable green power 20% Project returns1 • Investment opportunities in batterie
Slide 35: Proven track record
PART 2 – SECTION 3 VALUE ACCRETIVE CAPITAL ALLOCATION & OUTLOOK INVESTMENTS PROVEN TRACK RECORD in leveraging energy transition to create future-proof value EBIT 2.2 – 2.8 Refocused expansion (€bn) 0.9-1.1 B2B Alongside business and 1.7 geographical refocus, ENGIE’s portfolio mix shift also encompas
Slide 36: Boosting ENGIE competitiveness
PART 2 – SECTION 3 ACCELERATING ON CAPITAL ALLOCATION & OUTLOOK PERFORMANCE BOOSTING ENGIE COMPETITIVENESS with ambitious targets Performance Plan Culture & Competitiveness (€bn) >1.0 Accelerate cultural change impacting our organization to boost competitiveness. Through: ~40% Operational Excellence
Slide 37: Greater visibility with improving risk profile
PART 2 – SECTION 3 IMPROVING CAPITAL ALLOCATION & OUTLOOK RISK PROFILE GREATER VISIBILITY WITH IMPROVING RISK PROFILE EBIT less exposed to outright power prices Business Mix Risk Profile EBIT1 EBIT 42% 2024 25% 2024 2027 45% 2027 63% 12% 13% Renewables & Flex Power Regulated / Long term contracted I
Slide 38: B2B & Energy Management
PART 2 – SECTION 3 CAPITAL ALLOCATION & OUTLOOK B2B & ENERGY MANAGEMENT Increased earnings, more predictable, while keeping significant upside Energy Management B2B EBIT EBIT Range Normalized €0.9-1.1bn €0.5-0.9bn 2020 2021 2022 2023 2024 … 2027 … 2030 2020 2021 2022 2023 2024 … 2027 … 2030 Extracti
Slide 39: EBIT significantly above pre crisis level
PART 2 – SECTION 3 CAPITAL ALLOCATION & OUTLOOK EBIT SIGNIFICANTLY ABOVE PRE CRISIS LEVEL 1 with sustainable yearly growth from 2027 10% CAGR since 2021 Driven by investments & performance 1.0 (€bn) to 1.3 -0.0 to -1.0 -0.3 -0.3 to -1.3 to Performance 9.0 -0.5 1.6 9.0 8.9 to Others to 9.5 Prices 2.0
Slide 40: EBIT drivers by activity
PART 2 – SECTION 3 CAPITAL ALLOCATION & OUTLOOK EBIT DRIVERS BY ACTIVITY 2027 Activity Main EBIT evolution drivers (vs 2024) (€bn) 2021 2024 + Investments contribution in renewable and Renewables & BESS 2.8 - 3.0 2027 batteries RENEWABLES + Performance actions & FLEX - Lower hydro volumes POWER - Lo
Slide 41: Healthy cash generation
PART 2 – SECTION 3 CAPITAL ALLOCATION & OUTLOOK HEALTHY CASH GENERATION Credit ratio – financial headroom to finance growth capex and dividends Economic net debt / EBITDA to increase Balanced financial equation over 2025-2027 but remaining below 4.0x (€bn, excluding nuclear phase-out) Net financial
Slide 42: 2025-27 financial outlook
PART 2 – SECTION 3 CAPITAL ALLOCATION & OUTLOOK 2025-27 FINANCIAL OUTLOOK 1 2021 2024 2025 2026 2027 EBITDA excl nuclear EBITDA excl nuclear EBITDA excl nuclear EBITDA excl nuclear EBITDA excl nuclear indication indication indication €9.2bn €13.4bn €12.7 to 13.7bn €13.3 to 14.3bn €14.2 to 15.2bn EBI
Slide 43: Agenda
AGENDA PART 1 PART 2 FY 2024 Performance Market Update and Q&A 01 Strategic Overview 02 Climate strategy 03 Business Deep Dive 04 Capital allocation and outlook 05 CONCLUDING REMARKS AND Q&A 43 ENGIE FEBRUARY 2025
Slide 44: The model to deliver all the aims of the energy transition with ambitious 2030 targets
PART 2 - SECTION 04 CONCLUDING REMARKS THE MODEL TO DELIVER ALL THE AIMS OF THE ENERGY TRANSITION WITH AMBITIOUS 2030 TARGETS Energy transition A purpose- Leveraging our success factors built strategy strengths Electrification Greener and smarter Strong cash-generation electrons Flexibility Optimal
Slide 45: Additional materials
ADDITIONAL MATERIALS 27 FEBRUARY 2025 45 ENGIE FEBRUARY 2025
Slide 46: 2025-27 key assumptions
2025-27 KEY ASSUMPTIONS Outright Power Nuclear FX & price Weather Below EBIT Production1 assumptions conditions indications (% and €/MWh) • Recurring net financial • Belgium nuclear • FX forward as of • Average temperature availability: December 31st 2024 in France costs: €(2.1-2.5)bn 62% 44% 21% pe
Slide 47: 2024-25 EBIT evolution (excluding Nuclear)
2024-25 EBIT EVOLUTION (excluding Nuclear) -0.4 +0.3 -0.1 (€bn) to to to -0.3 -0.6 -0.4 +0.4 +0.5 +0.1 to to Disposal Others -0.6 +0.6 Prices Performance & volatility Volumes Investment 8.9 8.0 to 9.0 FY 2024 FY 2025 47 ENGIE FEBRUARY 2025
Slide 48: EBIT drivers for 2025
EBIT DRIVERS FOR 2025 20251 Activity Main EBIT evolution drivers (vs 2024) (vs 2024) 2024 - Lower prices and volatility 2025 - Disposal of CCGTs in Kuwait and Bahrain RENEWABLES & =- FLEX POWER + Investments contribution in renewable and batteries EBIT + Performance actions EBIT excl. excl. Nuclear
Slide 49: Details on nuclear activity
DETAILS ON NUCLEAR ACTIVITY Assets information EBIT contribution (indicative) [0.6-0.8] Installed ENGIE End of capacity capacity operations / (€bn) Nuclear reactors Operator @100% (MW) (MW) contracts Doel 4 ENGIE 1,026 461 01/11/2035 Tihange 3 ENGIE 1,030 463 01/09/2035 [0.2-0.4] Chooz B (swap) EDF
Slide 50: Climate strategy - detailed updated targets
CLIMATE STRATEGY - DETAILED UPDATED TARGETS Scope Old Target Target Target (footprint coverage 2017 2024 2030 2030 2035 2040 Main emission reduction targets 2024) Total Group GHG emissions (location-based) (Mt CO2e) 1, 2, 3 (100%) 265 157 n.a. 120 / 140 80 / 110 40 / 70 GHG emissions from energy gen
Slide 51: Disclaimer
DISCLAIMER Important Notice The figures presented here are those customarily used and communicated to the markets by ENGIE. This message includes forward- looking information and statements. Such statements include financial projections and estimates, the assumptions on which they are based, as well
Slide 52: For more information about ENGIE
FOR MORE INFORMATION ABOUT ENGIE +33 1 44 22 66 29 ir@engie.com https://www.engie.com/en/financial-results FOR MORE INFORMATION ABOUT FY 2024 RESULTS: https://www.engie.com/en/finance/results/2024 52 ENGIE FEBRUARY 2025