Engie S.a. · EURONEXT:ENGI
Engie — 9M 2015 Earnings Presentation
11 slides from Engie's earnings presentation, November 2015
Slide 1: Financial Information as of September 30, 2015
FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2015
Slide 2: Key Messages
KEY MESSAGES Financial performance impacted by commodity price drop, partially offset by performance in fast growing markets and cost discipline Cash flow generation remains strong underpinning dividend policy 2015 guidance confirmed, towards the low end of the range adjusted on October 1, 201
Slide 3: Further Steps Towards Energy Transition
FURTHER STEPS TOWARDS ENERGY TRANSITION New investments in power generation to emit no or little CO2 — No further coal projects — Focus on renewable & gas power projects Selective external investments to accelerate growth strategy — Significant step towards solar with Solairedirect acquisition —
Slide 4: Figures as of September 30, 2015
FIGURES AS OF SEPTEMBER 30, 2015 Sep, 30 Sep, 30 Δ Δ Sep, 30 Sep, 30 In €bn In €bn Δ 2015 2014(5) gross organic 2015 2014(5) CFFO(1) 7.4 6.9 +€0.6bn REVENUES 53.5 54.3 -1.5% -4.6% NET CAPEX(2) 4.1 3.1 +€1.0bn EBITDA 8.1 8.8 -7.5% -10.5% 27.5 NET DEBT 27.0 as of end 2014 NET 2.3x DEBT/EBITDA(3) 2.4x
Slide 5: EBITDA 9M 2015 vs 9M 2014
EBITDA 9M 2015 vs 9M 2014 KEY DRIVERS ▲ Commissioning of new assets in E&P and IPP ▼ Drop in commodity prices & weaker LNG activity ▼ Continued pressure on merchant markets ▲ Net contribution of Perform 2015 & Quick Reaction Plan (QRP) (Continental Europe, UK, US, Australia) ▼ Nuclear availability ▲
Slide 6: Strong Cash Generation & Sound Financial Structure
STRONG CASH GENERATION & SOUND FINANCIAL STRUCTURE STRONG CASH GENERATION SUPPORTING DIVIDEND POLICY Net debt further reduced by €0.5bn at Sep 30, Interim dividend of €0.5/share paid on Oct 15 despite €0.3bn adverse FX impact — Average net debt maturity: 9.5 years Dividend is a clear priority
Slide 7: 2015 Guidance: Update since H1 results
2015 GUIDANCE Update since H1 results WHAT HAS CHANGED SINCE H1? OPPORTUNITIES UNTIL YEAR END Delay in restart of D3/T2 to January 1, Brazil 2016 (guidance adjusted accordingly) — Potential regulatory enhancements on GSF Further drop in commodity prices — Court decision on “Force Majeure” on J
Slide 8: Strong Actions Taken to Tackle Subdued Environment
STRONG ACTIONS TAKEN TO TACKLE SUBDUED ENVIRONMENT Strong earnings contribution from Perform 2015 and QRP — Cost reduction focused on OPEX Real estate rationalization (Paris, Brussels), standardization of IT processes in the Group — Synergies between businesses and margin optimization Leveraging o
Slide 9: Enterprise Project: Moving ahead with Group transformation
ENTERPRISE PROJECT Moving ahead with Group transformation TIMELINE Q2 2015 Q3 Q32015 2015 Q4 2015 Q1 2016 Q2 2016 Appointment Appointment ERB(1) Effective FY 2015 Investor of BU’s project of BU’s project opinion start publication workshop leaders teams KEY MILESTONES ACHIEVED NEXT STEPS Appointmen
Slide 10: Conclusion
CONCLUSION Solid outcome from self-help measures alleviates impact from adverse conditions in merchant activities Strong cash generation supporting dividend policy Confirmation of 2015 financial targets, as adjusted on October 1, 2015 — Low end of Net Recurring Income Group share(1) guidance,
Slide 11: Disclaimer
DISCLAIMER 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 ex