Engie S.a. · EURONEXT:ENGI
Engie — GDF Suez — Investor Day (January 2015)
71 slides from Engie's investor day presentation, Jan 7, 2015
Slide 1: GDF SUEZ in Asia, Africa & Middle East
GDF SUEZ IN ASIA, AFRICA & MIDDLE EAST January 7, 2015
Slide 2: Introduction
Shanghai, China Tarfaya, Morocco Introduction Gérard Mestrallet, Chairman and Chief Executive Officer January 7, 2015 GDF SUEZ in Asia, Africa & Middle East
Slide 3: Fast growing markets at the heart of Group strategy
Fast growing markets at the heart of Group strategy Leverage on strong positions in IPP Be the benchmark Develop our presence around energy player the gas value chain in fast growing markets Globalize energy services leadership positions Be the Energy Partner of choice Be leader for our customers wh
Slide 4: Asia, Africa and Middle East driving growth in primary energy demand
Asia, Africa and Middle East driving growth in primary energy demand Primary-energy demand Share of global primary-energy in 2035(1) growth from 2012 to 2035 Europe United States China 1,700 4,145 Japan Other Non-OECD Asia Africa 2,190 33% 11% Middle 1,070 East Brazil 1,560 Middle East 465 1,200 470
Slide 5: Building on historical presence to develop new opportunities
Building on historical presence to develop new opportunities Japan Taiwan Vietnam China Qatar Kuwait Egypt Philippines Oman UAE Singapore Mongolia Mozambique Myanmar South Africa Kenya Ghana Tanzania Morocco India Thailand Laos Saudi Arabia Indonesia Pakistan POWER 35 GW >50 GW Indonesia China Japan
Slide 6: Strong positions to build upon
Strong positions to build upon €5.8bn 3,900 34.6 GW(1) 3.9 GW(1) revenues in 2013 employees of installed capacity under construction €6.3bn 30 countries 30% of Group total 52% of Group total capital employed % OF TOTAL GROUP 7% EBITDA 10% COI 15% NRIgs Revenues, employees Power capacity & power capa
Slide 7: Future growth fueled by numerous recent developments
Future growth fueled by numerous recent developments Power Gas & LNG Services Preferred bidder for CHP IPP FID Cameron LNG Prequalified for Tavan Tolgoi IPP export project Uch II gas plant MoU for renewable projects Lahmeyer acquisition 1st long term LNG sales to Japan Tarfaya wind f
Slide 8: Strong societal engagement in the region
Strong societal engagement in the region with GDF SUEZ Rassembleurs d’Energies Investment split by geography(1) India: Simpa Networks Solar Home System, rent-to-own, selling solar as a service to Indian poor rural households with limited 39% India access to energy 3 projects 32% Africa 2 projects Ug
Slide 9: Group CAPEX program designed to seize growth opportunities
Group CAPEX program designed to seize growth opportunities CAPEX program over 2014-2016 yearly average: Maintenance Growth Energy Europe & CAPEX ~€2.5bn + CAPEX ~€4.5bn Infrastructures in Europe ~30% Middle €13.5bn East during + Additional growth CAPEX €2-3bn financed by disposals Asia ~30% 2014-20
Slide 10: Power
Glow, Thailand Ras Laffan, Qatar Power Willem Van Twembeke, CEO Energy International Pierre Guiollot, CFO Energy International Jan Flachet, CEO & President GDF SUEZ Energy Asia-Pacific Lucas Hautvast, CEO & President, GDF SUEZ Energy South Asia, Middle East & Africa January 7, 2015 GDF SUEZ in Asia,
Slide 11: Continued growth based on good track record and long-term relationships
Continued growth based on good track record and long-term relationships Installed capacity evolution(1) Success drivers (MW gross) 50 000 • PPAs (costs inflation adjusted) 40 000 CAGR = 7.6% • Partnerships • Limited downstream sales 30 000 • Experienced local teams 20 000 • Technical/plant design 10
Slide 12: Robust business model, predominantly long-term contracted capacity backed by long-term PPAs
Robust business model, predominantly long-term contracted capacity backed by long-term PPAs Typical business model Capacity largely for long-term contracts long-term contracted (15-40 years) at 31 December 2014 Estimates GOVERNMENT EQUITY CONTROLLED / DEVELOPER PARTNER LARGE INDUSTRIAL EQUITY OWNER
Slide 13: Long-term contracts offer earnings security and regional experience drives additional value creation
Long-term contracts offer earnings security and regional experience drives additional value creation High quality earnings GDF SUEZ equity return structure • Attractive returns with security of earnings through long-term contracts PWPA extension • Ability to highly gear with non-recourse finance • E
Slide 14: Strong growth record
Strong growth record ACOI growth ACOI organic growth 800 (€m) SAMEA (€m) 700 500 600 400 +13% 500 +8% 400 300 300 200 359 333 375 200 295 318 100 100 0 0 2009 2010 2011 2012 2013 Asia SAMEA International Power acquired in 2011 ACOI organic growth ASIA (€m) Key drivers for 2014 500 • SAMEA +24% Com
Slide 15: Constant drive to enhance value through diverse range of options
Constant drive to enhance value through diverse range of options * Includes Al Kamil, Barka 3, Sohar, Sohar 2 Greenfield Acquisitions Asset IPO developments and extensions disposals IPP model • India • Oman • Glow market cap c. €3.5bn (Group share 69%: €2.4bn) • UAE • Bahrain • Saudi Arabia • Pakist
Slide 16: Asia – Longstanding presence in region
Asia – Longstanding presence in region with high energy demand Gross installed capacity MONGOLIA Operational asset by country at 31 December 2014 Under construction Estimates PAKISTAN Multiple plants and technologies INDIA 0.3 THAILAND 3.0 INDIA LAOS Gas distribution INDONESIA 2.0 THAILAND PHILIPPIN
Slide 17: Strategy and key success factors for Asia
Strategy and key success factors for Asia GDF SUEZ vision driven by strong market fundamentals • Increase capacity and presence through both greenfields and acquisitions, utilising a diversified fuel mix and partnering with local and international players Maintain market Enter new countries share in
Slide 18: Case study – Gheco One
Case study – Gheco One Thailand fuel diversification Glow Coal Fired IPP GHECO One – Thailand • Supercritical Pulverized Coal-fired Power Plant • Commercial operation on 26 July 2012 • Project enhances Thailand’s fuel diversification from natural gas Key Achievements Glow assets (gross MW) • Financi
Slide 19: Case study – Paiton 3
Case study – Paiton 3 The largest generating unit in Indonesia Paiton extension 3 – Java island, Indonesia • First Super Critical Unit on the grid • 30-year PPA with PLN (until 2042) • Majority shareholder in Operator Company • Largest unit on the grid Extension (gross MW) Key Achievements Coal-fire
Slide 20: Multiple growth opportunities in Asia
Multiple growth opportunities in Asia Snapshot of current development projects INDONESIA (MW gross) Accelerated Electricity Development Program 4 000 • A Second 10,000 MW Government Accelerated Electricity Development Program launched, 3 000 of which around 4,000 MW should come from geothermal resou
Slide 21: Africa, Middle East – Significant portfolio and growth opportunities
Africa, Middle East – Significant portfolio and growth opportunities Gross installed capacity MOROCCO KUWAIT by country at 31 December 2014 BAHRAIN Estimates QATAR BAHRAIN 3.1 SAUDI UAE MOROCCO 0.3 ARABIA OMAN UAE 8.8 OMAN 3.7 25.2 GW Operational asset SOUTH QATAR 3.8 Under construction AFRICA Under
Slide 22: Strategy and key success factors for Africa and Middle East
Strategy and key success factors for Africa and Middle East GDF SUEZ vision driven by strong market fundamentals • Remain a strategic partner for the GCC and continue to compete for further growth • Build upon our strongholds in Africa and target other fast growing countries for opportunities in pow
Slide 23: Tihama – A successful project offering additional value
Tihama – A successful project offering additional value Tihama Power generation Company Saudi Arabia • Gas-fired cogeneration plants located at Saudi Aramco’s gas and oil refineries on four different sites • Backed by 20-year Energy Conversion Agreements (ECA) Tihama assets (gross MW in operation) •
Slide 24: Tarfaya – The largest wind farm in Africa
Tarfaya – The largest wind farm in Africa Tarfaya Energy Company (TAREC) • 131 turbines in total with a projected load factor of 45% • Largest wind farm in Africa, representing 15% of Morocco’s wind energy target • Backed by a 20-year Power Purchase Agreement (PPA) with Office National de l’Eau et d
Slide 25: Growth opportunities in Africa and Middle East
Growth opportunities in Africa and Middle East Snapshot of current development projects AFRICA (MW gross) • Wind opportunities in Morocco & Egypt 3 000 under development • Diverse opportunities in South Africa 2 500 currently being developed • Other potential development opportunities 2 000 include
Slide 26: New opportunities in fast growing areas
New opportunities in fast growing areas Gross capacity at 31 December 2014 Estimates Well-positioned to grow… Opportunity Installed Under Under landscape but not at any cost construction development to 2020* Africa • c.12 GW under development 0.3 2.5 2.0 40 GW • Competition remains strong Middle Eas
Slide 27: Gas Value Chain
Shanghai, China Gaselys LNG tanker, Shanghai Gas Value Chain Jean-Marie Dauger, CEO Global Gas & GNL Jean-Claude Depail, CEO Infrastructures Didier Holleaux, CEO GDF SUEZ EPI Philip Olivier, CEO GDF SUEZ LNG Martin Jahan de Lestang, CEO ELENGY January 7, 2015 GDF SUEZ in Asia, Africa & Middle East
Slide 28: Meet countries needs for gas supplies and gas infrastructures through partnerships
Meet countries needs for gas supplies and gas infrastructures through partnerships LNG VALUE CHAIN • ACTIVITY Regasification Downstream • MARKET E&P Liquefaction Supply & sales Shipping Transportation Distribution STATUS Storage • LNG imports growth • Growth in gas • $100bn • Flexible LNG ~4% CAGR(1
Slide 29: Leveraging on our know-how to develop in new areas
Leveraging on our know-how to develop in new areas Existing assets, projects and selective ambitions Flexible LNG sourcing from Cameron LNG (USA) LNG Sales in Asia and Middle East MENA: E&P, LNG, terminalling, pipelines India: LNG, China: accompany the energy and environmental terminalling, challeng
Slide 30: Accelerating development in Africa, Asia and Middle East
Accelerating development in Africa, Asia and Middle East Japan partnership NYK Japan LNG Japan LNG and Mitsubishi for sales E&P CIC 30% Touat gas field sales to Chubu bunkering LNG business to Tohoku Infrastructures of EPI EPCC Electric Philippines Taiwan LNG LNG sales 1st LNG Batangas China: MoU LN
Slide 31: E&P contribution to the Group development in Asia, Africa and Middle East
E&P E&P contribution to the Group development in Asia, Africa and Middle East • E&P to support Group growth in fast growing markets Particularly in LNG, infrastructures and gas fired generation • Strong expertise on mature production areas • 2020 targets Continue to favor gas versus oil assets (
Slide 32: Jangkrik project (Indonesia), to contribute to growing Asian LNG needs
E&P Jangkrik project (Indonesia), to contribute to growing Asian LNG needs Project description • License entry: 2008 • Duration: 30 years • Area: 795 km² Bontang • ENI 55%, GDF SUEZ EPI 45% • Production Sharing Contract with Indonesian State Jangkrik NE Katak Biru • Domestic Market Obligation of 47%
Slide 33: European leader in gas infrastructure: the ambition to expand in fast growing markets
INFRAS European leader in gas infrastructure: the ambition to expand in fast growing markets Strong positions Competitive edge • Expertise in engineering, operations & maintenance • Transmission: N°1 in Europe • Strong experience in large industrial projects • Distribution: N°1 in Europe, management
Slide 34: Current business opportunities in Asia, Africa and Middle East
INFRAS Current business opportunities in Asia, Africa and Middle East A full range of offers BOO/BOOT contracts Management and Minority stake O&M contracts Technical in projects 2015 / 2016 Training assistance 1st contract 1st project estimated in 2017 FID end 2016 • Training for high potential
Slide 35: Kakinada LNG floating terminal in India
INFRAS Kakinada LNG floating terminal in India Project description • First LNG terminal on the East coast of India • Project developed in partnership with Shell (26%) and APGDC, a 50/50 JV between GAIL and AP state (48%) • Location close to the new capital of the highly industrialized Andhra Pradesh
Slide 36: Fast development of LNG sales to Asia, Africa and Middle East
LNG Fast development of LNG sales to Asia, Africa and Middle East LNG strategy Our competitive advantages • ~+4% growth in demand mainly in Asia(1) • Flexible LNG supply & fleet Increase external sales • Projects to access flexible LNG, notably with US gas exports as from 2018 • Regional prices sp
Slide 37: Growing and increasing visibility in a challenging context
LNG Growing and increasing visibility in a challenging context Growth in supply and external sales with flexible LNG sales: own LNG backed by MT/LT sales opportunities 2015/2016 ~85% already committed 20 Breakdown of sales 100% New Volumes in mtpa 13 markets Operational flexibility ~75% 10 Spot sale
Slide 38: Cameron LNG project in the US
LNG Cameron LNG project in the US Project description • 12 mtpa liquefaction capacity, gas supplied from HH • GDF SUEZ 4 mtpa tolling contract JV with Sempra Energy, Mitsubishi and Mitsui for development, building and financing Equity share: 16.6% • Total project costs: ~$10bn • FID taken earl
Slide 39: Conclusion
Conclusion • Our E&P activity enables to enter new markets Monetizing our strong expertise in mature areas Switching progressively our gravity center from European strongholds to Asia Optimizing the portfolio value through asset rotations • Our LNG strategy is adapting itself to the new enviro
Slide 40: Energy Services
Burj Khalifa, Dubai Tangier, Morocco Energy Services Jérôme Tolot, CEO Energy Services Yannick Bigaud, CFO Energy Services January 7, 2015 GDF SUEZ in Asia, Africa & Middle East
Slide 41: Key figures (2014 estimates)
Key figures (2014 estimates) 100,000 >1,300 employees locations 90 200 public-private district heating partnerships & cooling schemes 700,000 500,000m² ENGINEERING light points of data centers INDUSTRIAL INSTALLATION/ under operated UTILITIES MAINTENANCE management SERVICES €15.5bn 5% DISTRICT ENERG
Slide 42: GDF SUEZ Energy Services
GDF SUEZ Energy Services One of the 5 Business Lines of GDF SUEZ ENERGY SERVICES ENERGY GLOBAL ENERGY EUROPE INFRASTRUCTURES €15.5bn INTERNATIONAL GAS & GNL ~100,000 employees FRANCE BENELUX FRANCE SYSTEMS, ENGINEERING INTERNATIONAL DISTRICT ENERGY INSTALLATIONS ENERGY SERVICES & MAINTENANCE €3bn sa
Slide 43: GDF SUEZ Energy Services: a leader in key markets for energy transition
GDF SUEZ Energy Services A leader in key markets for energy transition BUILDINGS AND INDUSTRY CITIES Offer the optimal energy performance tailored Develop sustainable urban networks to the specific needs of every client Provide energy performance solutions to our industrial clients Develop physical
Slide 44: An increasing demand for energy services
An increasing demand for energy services AFRICA MIDDLE EAST ASIA / OCEANIA GDP GDP ($bn) and CAGR (2014-2025) $53,000bn $7,800bn $4,300bn $30,000bn $4,700bn +4.6% $2,700bn +4.3% +5.4% 2014 2025 2014 2025 2014 2025 Cities Urbanization rate (% of the national population living in cities) and CAGR (201
Slide 45: Presence in Asia, Africa & Middle East
Presence in Asia, Africa & Middle East GDF SUEZ Energy Services Revenues by countries Activities outside Europe Africa < €10m >€10m >€100m 12% other areas 33% Qatar Total 2013 French Polynesia €1.4bn* SG Asia Middle East Oceania 5% Mauritius 50% New 5 to 10% EBIT margin Réunion Caledonia Main 2013 f
Slide 46: Already highly diverse activities on each area
Already highly diverse activities on each area AFRICA MIDDLE EAST ASIA / OCEANIA Top 3 countries (32% sales) Top 3 countries (76% sales) Top 3 countries (77% sales) 1. Morocco 1. Qatar 1. New Caledonia 2. Réunion 2. UAE 2. French Polynesia 3. Algeria 3. Turkey 3. Singapore Main businesses Installati
Slide 47: References (1/2)
References (1/2) Owner’s engineer for the largest hydropower plant of Africa (GERDP) Tractebel Engineering is leader of the JV for an owner’s engineer contract for the construction of the 6,000 MW Grand Ethiopian Renaissance Dam Project, including a 10.5 Mm3 concrete dam. This huge project ($4.7bn)
Slide 48: References (2/2)
References (2/2) Facility Management for Renault Tanger factory in Morocco 5-year FM contract awarded to Cofely Maroc in 2011 Activities: maintenance & exploitation of industrial cooling, HVAC and elec systems, fire protection, CCTV, soft services (cleaning, security), for a new Renault automotive p
Slide 49: The Lahmeyer acquisition, a strong international boost for engineering activities
The Lahmeyer acquisition, a strong international boost for engineering activities • Lahmeyer International, a specialized engineering consultancy company in Energy & Water projects in Asia, Middle East and Africa • Same core business and same business model as Tractebel Engineering • Partially compl
Slide 50: Several acquisitions and office openings completed
Several acquisitions and office openings completed Total CAPEX ~€200m New office opened recently China • Acquisition of Gient in 2012 Qatar Business: Services • Acquisition of 24.5% • Cooperation Agreement of Mannaï in 2014 with Beijing Enterprise Group Business: Facility • Creation of BU China in 2
Slide 51: Strategic directions by area
Strategic directions by area • Accelerate partnerships with our European clients to accompany them in their development across these regions (ex. Sanofi / Cofely partnership across 9 countries) • South-East Asia: become a leader in energy efficiency and get into the top 5 services firms Develop th
Slide 52: An ambitious 2020 development program
An ambitious 2020 development program Priority countries in the region Sales 2013* 2020 €m Asia 170 400/600 Oceania 540 660 Middle East OUR AMBITION 65 100/200 • At least double our turnover outside Europe by 2020 • Become a reference player in fast growing countries in Energy Services, Facility Man
Slide 53: GDF SUEZ ambitions in China
GDF SUEZ ambitions in China Jean-Marc Guyot, CEO GDF SUEZ China January 7, 2015 GDF SUEZ in Asia, Africa & Middle East
Slide 54: Ambitions and objectives
Ambitions and objectives • To be a visible energy player in the world’s largest gas market (~400bcm in 2020) • To play a major role in: The gas chain The energy efficiency based on a very long experience and references around the world • To conclude partnerships with major players Municipali
Slide 55: Currently undeveloped activities in China
Currently undeveloped activities in China E&P off/on shore • Shale Gas • Coal Bed Methane • Conventional Operatorship: no local capabilities to manage local stakeholders; high investment; regulatory uncertainty; technical difficulties Power production • Nuclear power plant Too late to develop su
Slide 56: Development strategy: a mix of businesses 1/2
Development strategy: a mix of businesses 1/2 Small scale LNG • Become a major player in the short term on the small scale LNG market by taking a participation in a leading company & invest in individual projects Gas chain • 1st step: provide technical and expertise services in gas transportation, d
Slide 57: Development strategy: a mix of businesses 2/2
Development strategy: a mix of businesses 2/2 Engineering • Support in-house project development and implementation in China and abroad • Support group sourcing for projects worldwide (EPC, large equipments…) • Deliver pure engineering services for external clients Innovation • Detect new technologi
Slide 58: Ongoing projects 1/2
Ongoing projects 1/2 • Several important cooperation agreements have been signed with large SOEs on the gas chain business Cooperation scope: natural gas, energy efficiency & electricity chain mainly covering LNG, gas to power generation and low emission energy and infrastructure projects (Beijing
Slide 59: Ongoing projects 2/2
Ongoing projects 2/2 • Development of a partnership with a major actor in Distributed Energy Projects in Sichuan Province – partnership with 6 projects in pipeline Development of a first CHP project: − JV creation: 49% GDF SUEZ − Foreseen COD: end of 2016 − Total project CAPEX: ~ €40m per CHP − Ex
Slide 60: Appendix
GoDoeF Sea BY PEOPLE FOR PEOPLE
Slide 61: Energy market context
Energy market context • Economic deceleration (target of 7.4% in 2014 from 7.7% in 2013), but energy demand still growing PRC’s final energy demand is projected to increase at an annual rate of 2.3% through 2035 (APEC outlook) • Environmental Action plan: in response to deep public dissatisfaction
Slide 62: Conclusion
Glow, Thailand Sohar II, Oman Conclusion Isabelle Kocher, Deputy CEO and Chief Operating Officer January 7, 2015 GDF SUEZ in Asia, Africa & Middle East
Slide 63: Significant drivers for demand growth
Significant drivers for demand growth Demographic Electricity Generation (Total population, million) (TWh) 60 500 South Africa 50 400 Morocco 40 300 Saudi Arabia 30 200 UAE 20 Qatar 10 100 0 0 2001 2004 2007 2010 2013 2018 2019 2022 2025 2001 2004 2007 2010 2013 2018 2019 2022 2025 Electricity consu
Slide 64: Controlled development to seize growth opportunities
Controlled development to seize growth opportunities Be the benchmark Potential energy player Long lasting in fast growing for growth opportunities markets successful presence Group’s skills Be leader in the energy Means to grow, and competitive transition large Capex envelope advantages in Europe S
Slide 65: A multi-stage & rigorous investment decision process
A multi-stage & rigorous investment decision process Screening of organic and M&A projects ~85 projects reviewed in 2014 APPROVAL PROCESS at Group commitment committee level China Energy Services 6% 8% BOARD Infrastructures 8% OF FINAL APPROVAL 40% Energy DIRECTORS ~85 International projects Global
Slide 66: Strict investment criteria to ensure selectiveness
Strict investment criteria to ensure selectiveness A comprehensive assessment framework for our pipeline of prospects VALUE CREATION & STRATEGIC FIT & RISK PROFILE Profitability Integration & fit with Group strategy Market risk Potential for additional value creation Construction & operation risk Pa
Slide 67: Dedicated organization to oversee major projects
Dedicated organization to oversee major projects REPORTING STRUCTURE 2 MISSIONS created in 2013 Coordination & development Supervision & control COO of resources and methods of major projects Developing dedicated HR Governance: Group CFO resources construction oversight policy rolled-out at all
Slide 68: Flexible financing options to fit risk & reward profile
Flexible financing options to fit risk & reward profile A DUAL-ROUTE APPROACH A POWERFUL TRIPTYCH FOR PROJECTS’ FINANCING Corporate Project Large and diversified financing financing pool of banks (>25) Strong appetite from a large investor base Significant increase • Mature markets • Fast growing In
Slide 69: Diversity of options for creating value
Diversity of options for creating value OPTIONS FOR CREATING VALUE Greenfield Farm downs / IPOs Acquisitions Extensions developments sell downs SYNERGIES Global approach Between Developing versus local activities new activities development (e.g. engineering once established (e.g. centralized & IPPs)
Slide 70: Strong growth ambitions in Asia, Africa & Middle East
Strong growth ambitions in Asia, Africa & Middle East • Key component of GDF SUEZ equity story • Addressed in a controlled, prudent way • Leveraging on the Group’s historical successful development and skills • Increasing earnings prospects without altering risk profile GAS value chain POWER SERVICE
Slide 71: 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