Slide 1: H1 2023 Financial Results
H1 2023 FINANCIAL RESULTS 28 July 2023
Slide 2: Catherine MacGregor, CEO
CATHERINE MACGREGOR CEO 2 ENGIE JULY 2023
Slide 3: H1 2023 Highlights: Multiple Achievements for ENGIE
H1 2023 FINANCIAL RESULTS H1 2023 HIGHLIGHTS: MULTIPLE ACHIEVEMENTS FOR ENGIE Strong H1 2023 financial Relentless delivery of Fundamental and operational strategic plan across de-risking of ENGIE’s performance GBUs exposure to nuclear 3 ENGIE JULY 2023
Slide 4: Progress on ESG
H1 2023 FINANCIAL RESULTS PROGRESS ON ESG Greenhouse gas emissions Renewables Net Zero GHG1 emissions Share of renewables Coal power generation 44 countries countries from energy production in total power generation (GW@100%) net in Group zero by management 2030 capacity 107 Mt 15.1 Brazil 65 Mt 60
Slide 5: Delivering Strong Operational Progress Across GBUs
H1 2023 FINANCIAL RESULTS DELIVERING STRONG OPERATIONAL PROGRESS ACROSS GBUS RENEWABLES NETWORKS • 38.2 GW 1 of installed capacity • Awarded a 30-year concession to construct and operate 1,000 km • 0.7 GW 1 added capacity in H1 2023 of power lines in Brazil • 6.6 GW under construction • Gas storage
Slide 6: Landmark Framework Agreement on Extension of Two Belgian Reactors and Nuclear Waste Liabilities
H1 2023 FINANCIAL RESULTS LANDMARK FRAMEWORK AGREEMENT ON THE EXTENSION OF TWO BELGIAN REACTORS AND ALL NUCLEAR WASTE LIABILITIES Nuclear agreement between • Signature of framework agreement ENGIE and Belgian State – 10-year extension of Doel 4 and Tihange 3 Alignment of interests targeting a re-sta
Slide 7: H1 Financial and Strategic Progress
H1 2023 FINANCIAL RESULTS H1 Financial and Strategic Progress 7 ENGIE JULY 2023
Slide 8: Very Strong H1 2023 Results
H1 2023 FINANCIAL RESULTS VERY STRONG H1 2023 RESULTS • EBIT ex. Nuclear at €6.7bn mainly driven by GEMS and Renewables • Strong Cash flow generation, CFFO up €6.7bn €4.0bn +€2.7bn yoy Up 53% organically Up €0.8bn • Strong liquidity: €23bn, incl. €16bn of cash Growth €9.5bn €2.3bn 2023 guidance reaf
Slide 9: Acceleration in Renewables Under Construction
H1 2023 FINANCIAL RESULTS ACCELERATION IN RENEWABLES UNDER CONSTRUCTION • Unprecedented level of capacity under construction Global Pipeline (at 100%) at end of June 2023 85 GW 6.6 GW 65 3.2 GW vs. 80 GW at end-2022 80 85 9 Latin America under construction projects entered in construction in H1 2023
Slide 10: ENGIE Well Positioned to Capture BESS Market Growth
H1 2023 FINANCIAL RESULTS ENGIE WELL POSITIONED TO CAPTURE BESS MARKET GROWTH A booming Leveraging ENGIE’s ENGIE BESS market strengths 0.7 GW Under construction4 0.2 GW Already in operation worldwide 4X • Perfect fit with ENGIE’s integrated model • As a flexible system provider growth in flexible ca
Slide 11: COD of Hazelwood, ENGIE's Largest BESS Worldwide
H1 2023 FINANCIAL RESULTS COD OF HAZELWOOD, ENGIE’S LARGEST BESS WORLDWIDE 150 MW Rehabilitation of a former coal-powered plant, in line with ENGIE’s commitment to energy transition Commissioned in H1 2023 Australia • Flagship project in Australia illustrating ENGIE’s commitment to the energy transi
Slide 12: Pierre-François Riolacci, CFO
H1 2023 FINANCIAL RESULTS PIERRE-FRANÇOIS RIOLACCI CFO 12 ENGIE JULY 2023
Slide 13: Strong Operational and Financial Performance in Favorable Energy Market Conditions
H1 2023 FINANCIAL RESULTS STRONG OPERATIONAL AND FINANCIAL PERFORMANCE IN CONTINUED FAVORABLE ENERGY MARKET CONDITIONS H1 RESULTS €bn, unaudited figures 1 Actual ∆ Gross ∆ Organic 2 EBITDA ex. Nuclear 8.8 +38% +38% up 53% EBIT ex. Nuclear 6.7 +53% +53% CFFO 3 9.5 +2.7 - NRIgs 4.0 +0.8 • NRIgs up €0.
Slide 14: EBIT ex. Nuclear Up 53% Organically
H1 2023 FINANCIAL RESULTS EBIT EX. NUCLEAR UP 53% ORGANICALLY Strong organic growth mainly driven by GEMS and Renewables EBIT ex. Nuclear (€m) €+2,316m organic 6,713 +2,004 (o/w +2,080 6,713 GEMS) 2,781 OTHERS (o/w 3,142 GEMS) -116 +70 +102 Others +354 Networks -99 Retail +1 Energy Flex Gen 489 RETA
Slide 15: Renewables EBIT
H1 2023 RENEWABLES FINANCIAL RESULTS RENEWABLES EBIT Strong growth with higher volumes, capacity commissioned and better captured prices +43% Organic growth ACHIEVED PRICES1 HYDRO CNR FRANCE OUTRIGHT VOLUMES HYDRO FRANCE HYDRO TAX CNR FRANCE (€/MWh) (TWh) (€m - % tax rate2) EBIT H1 2023 vs H1 2022 P
Slide 16: Networks EBIT
H1 2023 NETWORKS FINANCIAL RESULTS NETWORKS EBIT Lower distributed volumes in France partly offset by net positive price effects in Europe -8% Organic decrease TEMPERATURE EFFECT IN FRANCE1 POWER TRANSMISSION NETWORK LENGTH BIOMETHANE PROD. CAPACITY CONNECTED (€m) (km) TO GRDF/GRTgaz (TWh/y) EBIT H1
Slide 17: Energy Solutions EBIT
H1 2023 ENERGY SOLUTIONS FINANCIAL RESULTS ENERGY SOLUTIONS EBIT Heavily impacted by one-off provision for projects cost overruns in the US, steady progress in other operations -€99m Organic decrease US one-off: Related to construction of 2 CHP plants and related networks / assets EBIT H1 2023 vs H1
Slide 18: Flex Gen EBIT
H1 2023 FLEX GEN FINANCIAL RESULTS FLEX GEN EBIT Strong performance driven by recovery in Chile, higher achieved spreads in Europe, partly offset by lower ancillaries +16% Organic growth AVERAGE CAPTURED SPARK SPREADS EUROPE (€/MWh) INTERNAL UNPLANNED UNAVAILABILITY (%) +33% EBIT H1 2023 vs H1 2022
Slide 19: Retail EBIT
H1 2023 RETAIL FINANCIAL RESULTS RETAIL EBIT Better margin and retrocession of portfolio optimization profit partly offset by mild winter & lower consumption +17% Organic growth # B2C CONTRACTS B2C SUPPLY VOLUMES (m) (TWh) -0.3m EBIT H1 2023 vs H1 2022 22.5 22.2 (€m) 2.5 2.3 Services 21 9.1 9.2 Powe
Slide 20: Others EBIT
H1 2023 OTHERS FINANCIAL RESULTS OTHERS EBIT Significant contribution from GEMS +€2.0bn Organic growth Key market drivers (€/MWh) H1 H1 H1 2021 2022 2023 EBIT H1 2023 vs H1 2022 Prices & Power Germany 57 221 114 -1 -75 (€m) EVBox Others Spreads Gas TTF 22 100 44 (month ahead) 2,781 France Clean Spar
Slide 21: Nuclear EBIT
H1 2023 NUCLEAR FINANCIAL RESULTS NUCLEAR EBIT Higher taxes, net impact of decommissioning, partly offset by higher captured prices -€0.6bn Decrease VOLUMES BE+FR @SHARE (TWh) PRICES1 CAPTURED (€/MWh) +16% EBIT H1 2023 vs H1 2022 22.2 -27% 111 (€m) Decommissioning 96 +129 16.3 Volumes +658 -621 Belg
Slide 22: Nuclear Framework Agreement Impacts
H1 2023 FINANCIAL RESULTS NUCLEAR FRAMEWORK AGREEMENT IMPACTS 31 Dec. 2022 view – Belgium only 23.0 H1 2023 – Non-recurring P&L (€bn) -0.4 -0.6 (€bn) H1 2023 +5.1 19.0 19.0 Partners’ CPN Waste management liabilities increase (5.1) Operational 1.1 share revision H1 2023 waste management liabilities l
Slide 23: Performance Plan
H1 2023 FINANCIAL RESULTS PERFORMANCE PLAN Little progress in a more challenging inflationary context H1 2023 progress 2021-23 performance plan almost achieved €7m 102 Period Achieved • Operational excellence: contract renegotiation, 2021-22 €509m O&M optimisation mainly in Networks and Renewables H
Slide 24: Overview of P&L from EBITDA to Net Income
H1 2023 FINANCIAL RESULTS OVERVIEW OF P&L FROM EBITDA TO NET INCOME NRIgs growth, while NIgs impacted by effects of nuclear framework agreement From EBITDA to NRIgs From NRIgs to NIgs H1 H1 H1 (€bn) Delta (€bn) 2023 2022 2023 EBITDA 9.4 7.5 +1.9 NRIgs (continuing activities) 4.0 D&A and others (2.4)
Slide 25: Cash Flow from Operations
H1 2023 FINANCIAL RESULTS CASH FLOW FROM OPERATIONS Strong cash generation driven by EBITDA growth, gas storage activity and commodity prices decrease (€bn) Change in WCR: €+0.8bn +0.5 Other -1.1 changes +4.0 Net Energy in in WCR -3.1 -0.2 receivables the meter +1.0 -0.5 Taxes & Gas Margin Supply 9.
Slide 26: Cash Generation Offsetting Impacts of Nuclear Framework Agreement, Credit Ratio Maintained
H1 2023 FINANCIAL RESULTS CASH GENERATION OFFSETTING IMPACTS OF NUCLEAR FRAMEWORK AGREEMENT, CREDIT RATIO MAINTAINED Net Financial Debt Leverage ratios (€bn) +0.4 4.0x 24.1 Others 3 -0.1 +3.6 -9.5 23.0 +1.3 Scope Dividends Nuclear +3.3 2.8x phase-out 2 2.7x Dec June CFFO Capex 1 2022 2023 1.8x 1.5x
Slide 27: Upgraded FY 2023 Guidance Confirmed
H1 2023 FINANCIAL RESULTS UPGRADED FY 2023 GUIDANCE CONFIRMED Rating Key assumptions 1 ‘Strong investment grade’ FX: €12.9 - 13.9bn Economic Net Debt / EBITDA ≤ 4.0x over the long term • €/USD: 1.08 • €/BRL: 5.46 Market commodity forward prices Dividend as at 31 May 2023 65-75% Nuclear Belgium c. 90
Slide 28: Summary
H1 2023 FINANCIAL RESULTS SUMMARY Strong H1 2023 financial Relentless delivery of Fundamental and operational strategic plan across de-risking of ENGIE’s performance GBUs exposure to nuclear 28 ENGIE JULY 2023
Slide 29: Additional Material
ADDITIONAL MATERIAL
Slide 30: EBIT Change by Activity
H1 2023 FINANCIAL RESULTS H1 2023 EBIT CHANGE BY ACTIVITY Y/Y change (€m) Gross FX / Scope Organic Key drivers for organic change Higher hydro volumes in France and Portugal no DBSO margin BRL appreciation RENEWABLES +364 +354 Higher hydro prices in France, reversal of 2022 buybacks Eolia acqu
Slide 31: EBIT Breakdown
H1 2023 FINANCIAL RESULTS EBIT BREAKDOWN H1 2023 Rest of Latin Northern (€m) France Europe America America AMEA Others TOTAL RENEWABLES 409 184 523 78 14 (16) 1,192 NETWORKS 931 56 378 (3) (5) 1,358 ENERGY SOLUTIONS 177 108 (2) (150) 31 (32) 132 FLEX GEN 460 79 25 213 (16) 761 RETAIL 323 134 48 (16)
Slide 32: Capex Almost Entirely Organic
H1 2023 FINANCIAL RESULTS CAPEX ALMOST ENTIRELY ORGANIC €2.3bn growth Capex invested in H1 2023 14% H1 2023 Capex >85% (€bn) 14% in energy 58% Growth Capex 2.3 transition activities Maintenance Capex 1.0 14% Total 3.3 Renewables Networks Energy Solutions Other activities 32 ENGIE JULY 2023
Slide 33: Guidance
H1 2023 FINANCIAL RESULTS GUIDANCE 2023 updated commodity forward prices assumptions Main commodity forward prices1 Main commodity forward prices (31 May 2023) (30 December 2022) Basis for the confirmed 2023 indications Basis for the initial 2023 indications and and guidance guidance (€/MWh - €/t) 2
Slide 34: Outright Power Production in Europe
H1 2023 FINANCIAL RESULTS OUTRIGHT POWER PRODUCTION IN EUROPE Nuclear and Hydro Hedged positions 100% 89% 61% 22% and captured prices (% and €/MWh) 155 129 99 90 As at 30 June 2023 Belgium and France 2022 2023 2024 2025 Captured prices are shown: • before specific Belgian nuclear and French CNR hydr
Slide 35: 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 36: 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 H1 2023 RESULTS: https://www.engie.com/en/finance/results/2023 36 ENGIE JULY 2023