Slide 1: ENGIE H1 2021 Results
30 a 2021 —_——, CNGiIC
Slide 2: H1 2021 Highlights
H1 2021 Highlights Catherine MACGREGOR CEO H1 2021 Results | July 2021 2
Slide 3: Financial and ESG performance
Financial performance ESG performance EBIT • 1.2 GW of renewables commissioned in H1 €3.1bn • Progress on coal-exit with Up 44% organically exclusivity rights for thermal complex, Brazil NRIgs Renewables • Gender diversity: in portfolio €1.4bn 24% women in management 32 GW Up 67% organically H1 2021
Slide 4: Robust operational performance and 2021 upgraded guidance
1 Robust operational performance 2021 upgraded guidance and favourable environment NRIgs EBIT indication • Integrated business model helped to largely offset impact of Texas extreme weather event €2.5bn to €2.7bn €5.5bn to €5.9bn • High availability achieved for Belgian Nuclear Dividend policy • Eff
Slide 5: Simplifying Group and enhancing performance
Simplifying Group and enhancing performance Disposal of GTT ENGIE EPS Geographic Driving simplification 11.5% partial sale rationalization and improving Creation of in GRTgaz sell-down complete exiting business mix new leader in agreed complete 4 countries multi-technical services On track for Targe
Slide 6: Creation of EQUANS
Creation of EQUANS H1 2021 H2 2021 • Employee representative • Next phase on future consultation complete shareholding structure started • Creation of EQUANS within • Strong interest in the business ENGIE and process underway • Strong recovery from last • All options being considered year • Completi
Slide 7: Agreement to sell 11.5% in GRTgaz in line with strategic plan
Agreement to sell 11.5% in GRTgaz in line with strategic plan • GRTgaz owns and operates largest French gas transmission network • Partial sale of 11.5% to Caisse des Dépôts and CNP Assurances • Transaction implies valuation to RAB of 148% − Highlighting the important role of gas and renewable gases
Slide 8: Accelerating Europe's energy transition
Accelerating Europe’s energy transition Renewables Energy Solutions 40% of final energy Higher energy efficiency consumption to be targets and further renewable by 2030 decarbonization Networks Thermal & Supply Hydrogen and Thermal to help address renewable gases in renewables industrial and mobilit
Slide 9: Commercializing renewables
Renewables • Renewables’ production up 22% across all technologies • 1.2 GW commissioned in H1 and progressing on Market and delivering 3 GW in 2021 Customer Access • Ocean Winds JV with EDPR for offshore wind Competitive edge in Hedging and − Awarded Contract for Difference for c.370 MW offshore wi
Slide 10: Networks
Networks • French networks delivering on energy efficiency and renewable gases − 1.1m gas smart meters installed − 67 new biomethane sites connected • Strong performance from international networks in Brazil − TAG performing well with commercial expansion − 1,000 km Gralha Azul power line constructi
Slide 11: Energy Solutions: low carbon distributed energy infrastructures
Energy Solutions Leader in low carbon distributed energy infrastructures and related services • Commercial momentum through Green Recovery packages and client decarbonization objectives • E.g. through ‘France Relance’ − 100 MW low carbon onsite generation projects secured − 15-year average contract
Slide 12: Financials
H1 2021 Financials Judith HARTMANN EVP, CFO H1 2021 Results | July 2021 12
Slide 13: 2021-23 targets: H1 2021 update
2021-23 TARGETS H1 2021 UPDATE Driving Earnings growth Simplification GRTgaz, GTT, ENGIE €9-10bn disposals EPS, 4 country exits NRIgs guidance1 2021: €2.5bn to €2.7bn Improving Business mix ~90% allocated to Value Renewables, Networks Creation €15-16bn and Energy Solutions growth Capex Sustainable d
Slide 14: H1 2021 financial results
H1 2021 YoY ∆ • EBIT up 42% on a gross basis and 44% organically YoY ∆ (€bn)1 Actual Gross Organic − Negative FX effect of €-107m, mainly due EBITDA 5.4 +21% +23% to BRL − Positive scope effect of €+87m, primarily EBIT 3.1 +42% +44% driven by SUEZ disposal and hydro acquisition NRIgs 1.4 +86% +67% i
Slide 15: Organic EBIT bridge
€+940m organic of which €+284m temperature in France EBIT -122 (€m) +285 Others 3,089 +175 Nuclear -39 +321 Thermal & Supply Client +264 Solutions +57 o/w +109 Energy Solutions +211 EQUANS Networks 2,169 -20 Renewables Scope +87 FX -107 H1 2020 H1 2021 H1 2021 Results | July 2021 15
Slide 16: Renewables
Renewables • Negative FX effect, mainly BRL EBIT by geography • EBIT up +14% yoy organically (€m) − Strong hydro performance in France and Brazil 501 492 Rest of 10 the World − Contribution from commissionings: +3.3 GW since July 1, 2020 0 328 323 − ~€-90m impact of Texas extreme weather event in Q1
Slide 17: Networks
Networks • Limited negative FX effect, mainly BRL, partly offset by TAG scope-in EBIT by geography • EBIT up +21% yoy organically: (€m) − ~€+0.2bn from colder temperature in Europe 1,514 Rest − Higher contribution from Latin America, esp. power and gas 92 of the World 1,262 transmission in Brazil 50
Slide 18: Client Solutions
Client Solutions Energy Solutions EQUANS EBIT • Strong organic improvement • Good performance in installation (€m) • Positive scope-out effect • Strong order intake and backlog 260 from SUEZ 89 EQUANS • EBIT typically H2 weighted: FY 2021 EBIT expected to be similar to 2019 levels (€0.35-0.45bn) 172
Slide 19: Thermal & Supply
Thermal & Supply Thermal EBIT by activity • Negative FX impact, mainly USD (€m) • EBIT down -7% yoy organically, mainly due to a drop in energy margins in Chile 220 Supply 44 Supply 614 • Recovery from 2020 Covid impacts 546 Thermal • ~€+0.1bn from colder temperature in Europe KPIs H1 2020 H1 2021 C
Slide 20: Nuclear & Others
Nuclear & Others Nuclear EBIT • Better achieved prices (€m) H1 2020 H1 2021 Delta • Higher volumes / availability (92% for Belgian units) Nuclear (107) 178 +285 • Lower D&A Others 17 (122) -139 Others • GEM: − Normalization after strong H1 2020 performance with positive one-offs and better market co
Slide 21: CFFO
(€bn) Change in WCR: +0.7 +0.7 -0.1 4.3 Taxes & +0.7 Change in Change in interest paid WCR external 3.0 Operating excl. GEM WCR for GEM cash flow CFFO CFFO H1 2020 H1 2021 H1 2021 Results | July 2021 21
Slide 22: FY 2021 guidance and dividend policy
1 NRIgs Dividend policy FY 2021 expected to be higher than previously €2.5bn to €2.7bn 65-75% payout ratio on NRIgs Floor at €0.65 per share anticipated • Strong H1 performance EBITDA indication EBIT indication • Updated view for full year €10.2bn to €10.6bn €5.5bn to €5.9bn Leverage ‘Strong investm
Slide 23: Concluding remarks
Concluding remarks Catherine MACGREGOR CEO H1 2021 Results | July 2021 23
Slide 24: A strong H1, operationally and financially
A strong H1, Significant early operationally and progress on financially strategic plan Performance FY21 guidance improvement plan upgraded on track H1 2021 Results | July 2021 24
Slide 25: Additional material
ADDITIONAL MATERIAL CNGiIC H1 2021 Results | July2021 25 I
Slide 26: Net financial debt and credit metrics
Net financial debt Credit metrics (€bn) +1.1 24.2 -0.3 +1.5 Others 22.5 -4.3 4.0x Disposals 2 Dividends 3.7x +3.7 2.4x 2.4x CFFO Gross Capex1 2.38% Average cost of gross debt 2.58% 31 Dec. 2020 30 June 2021 31 Dec 2020 30 June 2021 Net financial debt / EBITDA Economic net debt / EBITDA 1. Net of DBS
Slide 27: EBIT by segment and geography
H1 2021 Middle East, (€m) France Rest of Europe Latin America USA & Canada Asia & Africa Others TOTAL Renewables 137 70 328 (53) 25 (16) 492 Networks 1,199 77 224 1 18 (4) 1,514 Clients Solutions 223 59 1 20 15 (58) 260 Thermal 175 151 17 214 (12) 546 Supply 135 92 33 6 (23) (22) 220 Nuclear 178 178
Slide 28: From EBITDA to NRIgs, from NRIgs to NIgs
From EBITDA to NRIgs From NRIgs to NIgs (€bn) H1 2020 H1 2021 Delta (€bn) H1 2021 EBITDA 4.5 5.4 +0.9 NRIgs 1.4 D&A and others (2.3) (2.3) -0.0 MTM below COI 0.5 EBIT 2.2 3.1 +0.9 Restructuring costs (0.1) Net interest expense1 (0.6) (0.7) -0.1 Capital gains 0.7 Recurring income tax (0.5) (0.7) -0.2
Slide 29: FY 2021 guidance assumptions
Some FY 2021 guidance assumptions have been updated in July 2021 reflecting H1 2021 performance (re-assessment of the extreme weather event impact in Texas in February, high levels of availability for Belgian nuclear assets, colder than average temperature in France) and with an updated view for the
Slide 30: Nuclear and Hydro
Nuclear and Hydro Outright hedges Volumes & prices (% and €/MWh) 100% 93% 64% 43% 14% 49 48 50 47 42 2020 2021 2022 2023 2024 As of 06/30/2021 Belgium and France H1 2021 Results | July 2021 30
Slide 31: Important notice
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 as statemen
Slide 32: More information about H1 2021 results
Ticker: ENGI Ticker: ENGI +33 1 44 22 66 29 ir@engie.com https://www.engie.com/en/financial-results FOR MORE INFORMATION ABOUT H1 2021 RESULTS: https://www.engie.com/en/finance/results/2021 H1 2021 Results | July 2021 32