Engie S.a. · EURONEXT:ENGI
Engie — GDF Suez — Shareholder Meeting (May 2011)
75 slides from Engie's shareholder meeting presentation, May 2, 2011
Slide 1: 2011 Joint Shareholders' Meeting - 2 May 2011
2011 Joint Shareholders' Meeting - 2 May 2011
Slide 2: Fos Cavaou methane terminal in France
Fos Joint 2011 Cavaou methane Shareholders' terminal Meeting - 2 Mayin2011 France
Slide 3: Agenda (page 1 of 2)
OPENING OF THE MEETING AGENDA (page 1 of 2) Resolutions within the competence of the Ordinary Shareholders' Meeting – Board of Directors' Report – Statutory Auditors' Reports – Approval of the annual financial statements for financial year 2010 – Approval of the consolidated financial statements for
Slide 4: Agenda (page 2 of 2)
OPENING OF THE MEETING AGENDA (page 2 of 2) Resolutions within the competence of the Extraordinary Shareholders' Meeting – Board of Directors' Report – Statutory Auditors' Reports – Capital increase reserved for Group Employee Savings Plans members – Capital increase reserved for Group international
Slide 5: Nearly one million individual and employee shareholders
OPENING OF THE MEETING Nearly one million individual and employee shareholders Breakdown of GDF SUEZ's share capital Groupe Bruxelles 5.2% Lambert 0.6% Sofina Institutional investors 40.0% 1.1% CNP Assurances 2.0% CDC Treasury stock 1.1% Individual 11.2% shareholders* French State 36.0% Employee 2.8
Slide 6: Fos Cavaou methane terminal in France
Fos Joint 2011 Cavaou methane Shareholders' terminal Meeting - 2 Mayin2011 France
Slide 7: Results of shareholder consultation
OPENING OF THE MEETING Results of shareholder consultation CLASSIFICATION BY SUBJECT The Group’s strategy for the years ahead 19 % Outlook for 2011 12 % Payout policy 11 % Executive compensation policy 10 % Economic environment and competition 8% International expansion 8% Growth activities 8% 2011
Slide 8: Nuclear power: safety is our top priority
OPENING OF THE MEETING Nuclear power: safety is our top priority Maintenance operations at a plant in Belgium 2011 Joint Shareholders' Meeting - 2 May 2011 10
Slide 9: Establishment of gas prices in France for individual customers
OPENING OF THE MEETING Establishment of gas prices in France for individual customers INFRASTRUCTURE SUPPLY COSTS AND SALES COSTS From the producer to the French border From transport all across France to sales Costs reassessed every 3 Change in minimum annual costs months in the tariff calculation
Slide 10: Hidd in Bahrain
HiddJoint 2011 in Bahrain Shareholders' Meeting - 2 May 2011
Slide 11: Contents
STRATEGY AND OUTLOOK Contents Solid 2010 PERFORMANCES An AMBITIOUS and SUSTAINABLE industrial strategy An industrial strategy based on BALANCE and FLEXIBILITY 2011 Joint Shareholders' Meeting - 2 May 2011 13
Slide 12: Solid 2010 performances
Solid 2010 PERFORMANCES— se”
Slide 13: 2010: solid results
STRATEGY AND OUTLOOK 2010: solid results (1) Net debt/total equity (2) Subject to approval by the Shareholders' Meeting of 2 May 2011 2011 Joint Shareholders' Meeting - 2 May 2011 15
Slide 14: Corporate social responsibility at the heart of strategy
STRATEGY AND OUTLOOK Corporate social responsibility at the heart of GDF SUEZ's strategy Recruitment Safety 2015 targets Diversity Professional training Employee shareholders (1) Frequency rate: (number of accidents with leave / hours worked) x 1,000,000 2011 Joint Shareholders' Meeting - 2 May 2011
Slide 15: Industrial development charting a course for the future
STRATEGY AND OUTLOOK Industrial development charting a course for the future Gas plant, CombiGolfe, France Unloading of the Gaselys in China Olympic Games site in London - Creation of the world - Major LNG contracts in - Inauguration of the energy leader in independent Asia and launch of centre for
Slide 16: Hidd in Bahrain
HiddJoint 2011 in Bahrain Shareholders' Meeting - 2 May 2011
Slide 17: An ambitious and sustainable industrial strategy
AMBITIOUS and An SUSTAINABLE industrial strategy...
Slide 18: Strategic priorities
STRATEGY AND OUTLOOK 4 priorities Stepping up development in high-growth markets Enhancing integration and optimising positions in mature markets Targeting the allocation of capital to projects offering secure returns Developing marketing innovation Post it 2011 Joint Shareholders' Meeting -
Slide 19: Stepping up development in high-growth markets
STRATEGY AND OUTLOOK Stepping up development in high-growth markets Sao Salvador damn, Brazil Ras Laffan plant, Qatar Provalys terminal of which 90 GW outside Europe, i.e. 60% of installed capacity 2011 Joint Shareholders' Meeting - 2 May 2011 22
Slide 20: Enhancing integration and optimising positions in mature markets
STRATEGY AND OUTLOOK Enhancing integration and optimising positions in mature markets Montoir-de-Bretagne plant, France Energy trading floor Herdersbrug plant, Belgium Polaniec conventional thermal power station, Poland Storage in Germany 2011 Joint Shareholders' Meeting - 2 May 2011 23
Slide 21: Targeting capital allocation to projects offering secure returns
STRATEGY AND OUTLOOK Targeting the allocation of capital to projects offering secure returns ChilcaUno plant, Peru Marafiq plant, Saudi Arabia Astoria plant, US 2011 Joint Shareholders' Meeting - 2 May 2011 24
Slide 22: Developing marketing innovation
STRATEGY AND OUTLOOK Developing marketing innovation 2011 Joint Shareholders' Meeting - 2 May 2011 25
Slide 23: An industrial strategy based on balance and flexibility
An industrial strategy based on BALANCE and FLEXIBILITY
Slide 24: A leading group in three buoyant businesses
STRATEGY AND OUTLOOK A leading group in three buoyant businesses Revenues(1) 100% Services Natural gas Electricity SECTOR(2) By type of activity (pro forma International Power) (1) GDF SUEZ estimate of the % breakdown of 2009 revenues by type of activity, restated over the full year for acquisitions
Slide 25: Strong development momentum outside Europe
STRATEGY AND OUTLOOK Strong development momentum outside Europe Net installed electric capacity(1) 100% Rest of the World Rest of Europe(3) Historic market(4) SECTOR(2) Hydropower plant in Laja, Chile By geographic region (pro forma International Power) (1) GDF SUEZ estimate of 2009 net installed ca
Slide 26: A unique economic model adapted to today's challenges
STRATEGY AND OUTLOOK A unique economic model adapted to today's challenges Balanced positioning between gas, electricity and services Balanced portfolio between secure activities and activities exposed to the markets Diversified production mix, generating low CO2 emissions Strong presence in
Slide 27: Ambitious targets
STRATEGY AND OUTLOOK Ambitious targets(1) 2011 2011-2013 EBITDA €17 bn - €17.5 bn >€20 bn in 2013 Earnings per share Year N+1 EPS ≥ Year N EPS Gross capex ~€11 bn/year Portfolio ~€10 bn in 2011-2013 optimisation Financial structure(2) "A" credit rating Dividend policy Year N+1 dividend ≥ Year N divi
Slide 28: Montoir methane terminal, Brittany, France
Montoir methane terminal, Bretagne (Brittany), France
Slide 29: Contents: delivering solid performance
DELIVERING SOLID PERFORMANCE Contents TARGETS EXCEEDED in 2010 ATTRACTIVE, SUSTAINABLE dividend policy Our STOCK MARKET PERFORMANCE SOLID FINANCIAL STRUCTURE maintained 2011 Joint Shareholders' Meeting - 2 May 2011 32
Slide 30: Solid performance in 2010
DELIVERING SOLID PERFORMANCE Solid performance in 2010 In €bn 2009 2010 Revenue 79.9 84.5 EBITDA 14.0 15.1 Net income Group share 4.5 4.6 Earnings per share €2.05 €2.11 Net capex(1) 8.8 8.6 Free Cash Flow 9.6(2) 7.8 Net debt 30.0 33.8 (1) Net capex = industrial capex (maintenance and development) +
Slide 31: Growth driven by Energy Europe & International and Energy France
DELIVERING SOLID PERFORMANCE Growth predominantly driven by Energy Europe & International and Energy France In €m 279 (80) 15,086 197 2 OTHERS 803 ENERGY ENVIRON- SERVICES NMENT INFRA- STRUCTURES 14,012 (784) 657 ENERGY EUROPE & INTL GLOBAL ENERGY GAS & FRANCE LNG 2009 2010 EBITDA EBITDA 2011 Joint
Slide 32: From EBITDA to net income of €4.6 bn
DELIVERING SOLID PERFORMANCE From EBITDA to net income of €4.6 bn In €m 2009 2010 EBITDA 14,012 15,086 D & A and provisions (5,184) 5,899 Concessions (263) (265) Share-based payment and others (218) (126) Current operating Income 8,347 8,795 Mark-to-Market, asset impairment, restructuring costs, ass
Slide 33: An attractive and sustainable dividend policy
DELIVERING SOLID PERFORMANCE An attractive and sustainable dividend policy €1.47 €1.50 €1.40 Balance: €0.67 Balance €0.60 €0.67 • ex-dividend 4 May 2011 • paid 9 May 2011 Interim dividend €0.80 €0.80 €0.83 Exercice 2008 Exercice 2009 Exercice 2010 +€0.80 exceptional dividend 2011 Joint Shareholders'
Slide 34: 2010 stock market performance
DELIVERING SOLID PERFORMANCE 2010 stock market performance Since Change in GDF SUEZ share price over the past year January 2011 31,0 € +7% +8% 29,0 € CAC 40 27,0 € +1% +3% 25,0 € 23,0 € -19% +1% E.On -30% 21,0 € -12% 19,0 € RWE -31% -7% 17,0 € 3/5/10 29/04/11 EDF 03/05/10 29/04/11 Source Bloomberg,
Slide 35: Robust financial structure
DELIVERING SOLID PERFORMANCE Robust financial structure Successful large-scale deals One of the lowest gearing shoring up liquidity ratios in the sector (net debt/equity) Maturity of net debt from 8 years extended to 9 years 115% 100% 99% 92% 56% 4.6% Average cost of 46% 46% gross debt stable 2008 2
Slide 36: Q1 2011 results
DELIVERING SOLID PERFORMANCE Q1 2011 results 2011 Joint Shareholders' Meeting - 2 May 2011 39
Slide 37: Distrigas, Everett, US
Distrigas, Everett, US
Slide 38: Contents: taking up challenges
TAKING UP CHALLENGES Contents Ambitious development in RENEWABLE ENERGIES GRADUAL RECOVERY of the gas market Launch of new PERFORMANCE PLAN: EFFICIO 2 2011 Joint Shareholders' Meeting - 2 May 2011 41
Slide 39: Ambitious development in renewable energies
Ambitious development RENEWABLE in ENERGIES
Slide 40: Environmentally friendly production mix
TAKING UP CHALLENGES Environmentally friendly production mix Renewable energy capacities BIOMASS AND WASTE SOLAR ENERGY 963 MW 31 MW WIND 3,548 MW 15.4 GW HYDRO* 10,809 MW At 31/12/201 (at 100%, pro forma International Power) * Excluding pumped-storage power stations 2011 Joint Shareholders' Meeting
Slide 41: Our main renewable energy projects
TAKING UP CHALLENGES Our main renewable energy projects Rodenhuize biomass plant, Belgium Off-shore wind power project in France Estreito dam, Brazil Solar energy fleet in Curbans, France 2011 Joint Shareholders' Meeting - 2 May 2011 45
Slide 42: Gradual recovery of the gas market
GRADUAL RECOVERY of the gas market
Slide 43: Gradual global recovery already underway
TAKING UP CHALLENGES Gradual global recovery already underway Gas market in 2010 Pick-up in demand Increase in 43% natural gas 29% market share in France 2008 2010 France: share of gas in new homes US Europe Asia Increase in market prices +5% +8% +11% +23%* in 2010 * Benchmark index for gas in Europ
Slide 44: A nonetheless persistently challenging environment
TAKING UP CHALLENGES A nonetheless persistently challenging environment Significant rise in spot gas prices Change in the benchmark index on the short-term UK market (NBP) 25 in €/MWh 20 15 10 janv-10 mars-10 mai-10 juil-10 sept-10 nov-10 janv-11 mars-11 New liquefaction capacities on the market
Slide 45: Our initiatives in this environment
TAKING UP CHALLENGES Our initiatives in this environment Distribution of long-term gas supply contracts Others Not specified* Norway 3% 21% 19% Yemen 3% Libya 3% 11% Netherlands United 2% Kingdom 6% Egypt 5% 13% Trinidad & Tobago 14% Algeria Russia (*) Purchases via suppliers that do not specify the
Slide 46: Development towards Asia
TAKING UP CHALLENGES Development towards Asia Demand for LNG not contracted in the Pacific basin mmtpa 120 100 Total Pacific basin 80 (China, Japan, South Korea, 60 India, Singapore, Taiwan, 40 Thailand, Vietnam) 20 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: PFC Energy, July 2010 LN
Slide 47: Launch of a new performance plan: Efficio 2
Launch of a new PERFORMANCE PLAN: EFFICIO 2
Slide 48: Efficio: contributing to Group performance
TAKING UP CHALLENGES EFFICIO: contributing to Group performance Targets exceeded in 2010 Total synergies and recurring performance gains(1) (in €M) 1,537 1,250 RESULTS 750 TARGETS 650 2009 2010 (1) Before non-recurring implementation costs 2011 Joint Shareholders' Meeting - 2 May 2011 52
Slide 49: Underground storage, Germigny-sous-Coulombs, France
Underground storage, Germigny-sous-Coulombs, France
Slide 50: Fondation GDF SUEZ and solidarity investment
CONCLUSION Launch of "GDF SUEZ Rassembleurs d'Energies" programme Fondation Investment in GDF SUEZ Solidarity Fund Skills patronage 2011 Joint Shareholders' Meeting - 2 May 2011 54
Slide 51: Conclusion
CONCLUSION Conclusion Solid 2010 results confirming GDF SUEZ's economic model Construction of a global benchmark in energy and services with clear financial targets Leading positions and financial solidity to meet the challenges of the future: ‒ Adjustment of our supply portfolio to trends on
Slide 52: Fos Tonkin methane terminal in France
Fos Tonkin methane terminal in France
Slide 53: Effective, responsible governance
Effective, responsible governance 13 directors* 6 directors elected by the representing the State Shareholders' Meeting o/w: BOARD - 10 independent OF DIRECTORS directors - 1 representative of the 3 directors employee shareholders representing the employees 22 directors* 2 non-voting directors and 1
Slide 54: Fos Tonkin methane terminal in France
Fos Tonkin methane terminal in France
Slide 55: Statutory Auditors' Reports
Slide 56: Building site of the Barka 3 power plant in Oman
Building site of the Barka 3 power plant in Oman
Slide 57: Monte Redondo wind farm in Chile
Assembly of wind turbines at the Monte Redondo wind farm in Chile
Slide 58: Resolutions presented by the Board of Directors
Resolutions presented by the Board of Directors 2011 Joint Shareholders' Meeting - 2 May 2011
Slide 59: 2010 annual financial statements
VOTE ON RESOLUTIONS First Resolution 2010 annual financial statements – Approval of the annual financial statements for financial year 2010 2011 Joint Shareholders' Meeting - 2 May 2011 64
Slide 60: 2010 consolidated financial statements
VOTE ON RESOLUTIONS Second Resolution 2010 consolidated financial statements – Approval of the consolidated financial statements for financial year 2010 2011 Joint Shareholders' Meeting - 2 May 2011 65
Slide 61: Distribution of earnings and dividend for 2010
VOTE ON RESOLUTIONS Third Resolution Distribution of earnings and establishment of the amount of the dividend for 2010 – This resolution concerns the distribution of earnings and sets the dividend at €1.50 per share. – An interim dividend of €0.83 was paid on 15 November 2010, therefore the balance
Slide 62: Related party agreements
VOTE ON RESOLUTIONS Fourth Resolution Related party agreements – Approval of related party agreements concluded during 2010, as described in the special report of the Statutory Auditors. – These agreements concern agreements between GDF SUEZ and companies that share the same directors. 2011 Joint Sh
Slide 63: Authorisation for transactions on the Company's shares
VOTE ON RESOLUTIONS Fifth Resolution Renewal of the authorisation for the Board of Directors to carry out transactions on the Company's shares – Duration: 18 months – Maximum purchase price: €55 – Maximum holding limit: 10% of share capital – Total amount of acquisitions: €12 billion – This resoluti
Slide 64: Mr Albert Frère
VOTE ON RESOLUTIONS Sixth Resolution Renewal of a Director's mandate Mr Albert Frère – Chairman and CEO of Groupe Bruxelles Lambert – Independent director – Vice-Chairman of the Board of Directors – Belgian nationality – Renewal of mandate for a period of 4 years 2011 Joint Shareholders' Meeting - 2
Slide 65: Mr Edmond Alphandéry
VOTE ON RESOLUTIONS Seventh Resolution Renewal of a Director's mandate Mr Edmond Alphandéry – Chairman of the Board of Directors of CNP Assurances – Independent director – Chairman of the Ethics, Environment and Sustainable Development Committee, Member of the Audit Committee – French nationality –
Slide 66: Mr Aldo Cardoso
VOTE ON RESOLUTIONS Eighth Resolution Renewal of a Director's mandate Mr Aldo Cardoso – Company Director – Independent director – Chairman of the Audit Committee – French nationality – Renewal of mandate for a period of 4 years 2011 Joint Shareholders' Meeting - 2 May 2011 71
Slide 67: Mr René Carron
VOTE ON RESOLUTIONS Ninth Resolution Renewal of a Director's mandate Mr René Carron – Company Director – Independent director – Member of the Nominations Committee, Member of the Compensation Committee – French nationality – Renewal of mandate for a period of 4 years 2011 Joint Shareholders' Meeting
Slide 68: Mr Thierry de Rudder
VOTE ON RESOLUTIONS Tenth Resolution Renewal of a Director's mandate Mr Thierry de Rudder – Managing Director of Groupe Bruxelles Lambert – Independent director – Chairman of the Strategy and Investments Committee, Member of the Audit Committee – Dual Belgian and French nationality – Renewal of mand
Slide 69: Ms Françoise Malrieu
VOTE ON RESOLUTIONS Eleventh Resolution Appointment of a Director Ms Françoise Malrieu – Functions and mandates: • Director, Chairman of the Audit Committee at La Poste • Independent Director, Chairman of the Compensation Committee, member of the Audit Committee at Aéroports de Paris • Chairman of t
Slide 70: Ratification of the transfer of the Head Office
VOTE ON RESOLUTIONS Twelfth Resolution Ratification of the transfer of the Head Office – Ratification of the transfer of the head office to 1 place Samuel de Champlain, 92400 Courbevoie 2011 Joint Shareholders' Meeting - 2 May 2011 75
Slide 71: Authorisation to issue shares for Group Savings Plan employees
VOTE ON RESOLUTIONS Thirteenth Resolution Renewal of the authorisation to issue shares reserved for employees belonging to a GDF SUEZ Group Savings Plan – Duration: 26 months – Maximum nominal amount: €40 million – Issue price: 80% of the average opening share price over the 20 trading days precedin
Slide 72: Authorisation to issue shares for international employee shareholders
VOTE ON RESOLUTIONS Fourteenth Resolution Renewal of the authorisation to issue shares reserved for international employee shareholders of the Group – Duration: 18 months – Maximum nominal amount: €20 million – Issue price: 80% of the average opening share price over the 20 trading days preceding th
Slide 73: Authorisation to allocate free shares to employees
VOTE ON RESOLUTIONS Fifteenth Resolution Renewal of the authorisation to allocate free shares to employees and/or corporate officers of the Group – Duration: 18 months – Maximum amount: 0.5% of the share capital on the date of the decision (existing shares) – Shares awarded to corporate officers may
Slide 74: Powers
VOTE ON RESOLUTIONS Sixteenth Resolution Powers – Powers to implement the decisions of the Shareholders' Meeting and to carry out all necessary formalities. 2011 Joint Shareholders' Meeting - 2 May 2011 79
Slide 75: 2011 Joint Shareholders' Meeting - 2 May 2011
2011 Joint Shareholders' Meeting - 2 May 2011