Slide 1: FY 2022 Financial Results
FY 2022 FINANCIAL RESULTS 21 FEBRUARY 2023
Slide 2: Agenda
AGENDA PART 1 FY 2022 Performance and Q&A 2 ENGIE FEBRUARY 2023
Slide 3: Catherine Macgregor, CEO
CATHERINE MACGREGOR CEO 3 ENGIE FEBRUARY 2023
Slide 4: Overview of FY 2022 Performance
FY 2022 FINANCIAL RESULTS OVERVIEW OF FY 2022 PERFORMANCE Strong financial Step up in renewables Critical role in security Progress in and operational capacity with 3.9 GW of supply and discussions on performance added in 2022 affordability measures nuclear in Belgium 4 ENGIE FEBRUARY 2023
Slide 5: Strong 2022 Results
FY 2022 FINANCIAL RESULTS STRONG 2022 RESULTS • Sharp rise in EBIT mainly driven by GEMS, Thermal and Renewables • Guidance achieved with NRIgs at €5.2bn • CFFO improvement, up €1.6bn €9.0bn €5.2bn • Performance plan €0.4bn in 2022 Up 43% organically Up 78% • Strong liquidity: €20.9bn, incl. €15.7bn
Slide 6: Progress on ESG
FY 2022 FINANCIAL RESULTS PROGRESS ON ESG Greenhouse gas emissions Renewables Gender diversity GHG1 emissions Share of renewables % of women from energy production in total power generation capacity in Group management Down 44% 2030 2030 107 from 2017 TARGET TARGET 38% 58% 30% 40%- 60% Mt 34% 29%2 6
Slide 7: Operational Progress on All Fronts
FY 2022 FINANCIAL RESULTS OPERATIONAL PROGRESS ON ALL FRONTS RENEWABLES NETWORKS • 3.9 GW 1 added capacity in 12M, 01 RENEWABLES • Unprecedented high utilization o/w 1.4 GW in Q4 rates in French infrastructures • 10.9m smart meters installed in • 37.9GW 1 of installed capacity at end-2022 France (95
Slide 8: Multiple Actions to Ensure Uninterrupted Gas Flows
FY 2022 FINANCIAL RESULTS MULTIPLE ACTIONS TO ENSURE UNINTERRUPTED GAS FLOWS Networks operating at Progress in Diversification record levels renewable gases in France Diversifying sources of gas GRTgaz Biomethane production procurement with existing and new 708 TWh, up 12% connected to GRTgaz & GRDF
Slide 9: Helping Mitigate the Crisis Impact
FY 2022 FINANCIAL RESULTS HELPING MITIGATE THE CRISIS IMPACT Inframarginal rent cap & exceptional Profit-sharing contributions mechanism Security of supply €0.9bn €1.1bn GOVERNMENT MEASURES SECURITY OF SUPPLY €1.8bn 1 Vulnerable Employee support Tariff shield customers and SMEs €0.6bn 2 EMPLOYEES CU
Slide 10: Managing an Orderly Nuclear Phase-Out in Belgium
FY 2022 FINANCIAL RESULTS MANAGING AN ORDERLY NUCLEAR PHASE-OUT IN BELGIUM Nuclear phase out in Belgium Installed Nuclear capacity End of reactors @100% (MW) operations Doel 3 1,006 24 Sep 2022 Tihange 2 1,008 1 Feb 2023 Doel 1 445 15 Feb 2025 Doel 4 1,038 1 July 2025 Tihange 3 1,038 1 Sep 2025 Tiha
Slide 11: Agreement in Principle to Extend Two Belgian Reactors
FY 2022 FINANCIAL RESULTS AGREEMENT IN PRINCIPLE TO EXTEND TWO BELGIAN REACTORS ENGIE and the Belgian This framework ensures a fair risk-reward balance, incl.: federal government • The establishment of a legal structure, co-owned by the Belgian State set a framework for a 10-year and ENGIE extension
Slide 12: Pierre-François Riolacci, CFO
PIERRE-FRANÇOIS RIOLACCI CFO 12 ENGIE FEBRUARY 2023
Slide 13: Financial Performance Highlights
FY 2022 FINANCIAL RESULTS FINANCIAL PERFORMANCE HIGHLIGHTS • EBIT up 47%, 43% organically FY RESULTS €bn, unaudited figures Actual ∆ Gross ∆ Organic1 • NRIgs up 78% EBITDA 13.7 +30% +27% • Cash flow generation recovery, CFFO up €1.6bn EBIT 9.0 +47% +43% • Strong performance driving improvement in NR
Slide 14: EBIT Up 43% Organically
FY 2022 FINANCIAL RESULTS EBIT UP 43% ORGANICALLY Steady strategic execution boosted by unprecedented market conditions EBIT €+2,691m organic (€m) incl. €+424m performance +1,969 9,045 1,848 OTHERS (o/w (o/w 2,618 +2,087 GEMS) GEMS) 1,026 NUCLEAR -230 +67 +562 Others 1,768 THERMAL Supply Nuclear +12
Slide 15: Renewables EBIT
FY 2022 RENEWABLES FINANCIAL RESULTS RENEWABLES EBIT Contribution of newly commissioned assets and performance improvements ACHIEVED PRICES1 OUTRIGHT VOLUMES HYDRO TAX +19% HYDRO CNR FRANCE (€/MWh) HYDRO FRANCE (TWh) CNR FRANCE (€m - % tax rate2) organic growth Performance +7% -€9m -225 60 15.2 EBIT
Slide 16: Networks EBIT
FY 2022 NETWORKS FINANCIAL RESULTS NETWORKS EBIT Strong performance in Latin America, partly offset by warmer temperatures in Europe TEMPERATURE EFFECT POWER TRANSMISSION BIOMETHANE PROD. +1% IN FRANCE (€m) NETWORK LENGTH (km) CAPACITY CONNECTED TO GRDF/GRTgaz organic growth (TWh/y) +4% +37% EBIT(€m
Slide 17: Energy Solutions EBIT
FY 2022 ENERGY SOLUTIONS FINANCIAL RESULTS ENERGY SOLUTIONS EBIT Higher energy prices and strong commercial performance Focus on improving EVBox performance continues EBIT MARGIN EBIT MARGIN +17% (%) EXCL. EVBOX (%) organic growth +4bps -47bps EBIT(€m) 3.5% 3.6% 5.0% On-site 127 Energy performance &
Slide 18: Thermal EBIT
FY 2022 THERMAL FINANCIAL RESULTS THERMAL EBIT Higher spreads and ancillaries captured by flexible assets in Europe AVERAGE CAPTURED INTERNAL UNPLANNED +47% SPARK SPREADS EUROPE UNAVAILABILITY (%) organic growth (€/MWh) +50% -40bps Performance 28 4.5% EBIT(€m) -440 +123 4.1% -218 +175 +922 Others 41
Slide 19: Supply EBIT
FY 2022 SUPPLY FINANCIAL RESULTS SUPPLY1 EBIT Timing effects, warmer temperatures in Europe, price caps and support measures # B2C B2C SUPPLY €-230m CONTRACTS (m) VOLUMES organic decrease EBIT (€m) (TWh) +0.2m 22.3 22.5 2.6 2.5 Services 41 -9 40 Power 157 232 8.9 9.1 Power 223 -33 Volumes 127 Gas Sc
Slide 20: Nuclear EBIT
FY 2022 NUCLEAR FINANCIAL RESULTS NUCLEAR EBIT Higher prices triggered higher profit sharing through specific Belgian nuclear tax and inframarginal rent cap VOLUMES BE+FR PRICES1 +7% @SHARE (TWh) CAPTURED (€/MWh) organic growth +63% -11% -494 47.4 97 EBIT(€m) 42.1 +1,694 Volumes 60 -47 -1,135 970 +2
Slide 21: Others EBIT
FY 2022 OTHERS FINANCIAL RESULTS OTHERS EBIT Unprecedented contribution from GEMS in a context of extreme market conditions €+2.0bn Key market drivers1 (€/MWh - month ahead) FY FY YoY organic growth 2021 2022 delta Prices & France baseload power 132 394 +262 EBIT(€m) +7 -109 Spreads Gas TTF 47 131 +
Slide 22: Performance Plan
FY 2022 FINANCIAL RESULTS PERFORMANCE PLAN Ramping up with a strong FY 2022 net contribution in an inflationary context FY 2022 YTD progress Ramp-up within the 2021-23 performance plan €424m • Operational excellence: procurement, industrial actions and structure optimization Period Achieved 22% • Su
Slide 23: Overview of P&L from EBITDA to Net Income
FY 2022 FINANCIAL RESULTS OVERVIEW OF P&L FROM EBITDA TO NET INCOME From EBITDA to NRIgs From NRIgs to NIgs FY FY FY of which: (€bn) 2022 2021 Delta (€bn) 2022 - Belgian nuclear asset (1.2) following the CPN revision EBITDA 13.7 10.6 +3.2 NRIgs (continuing activities) 5.2 - Thermal assets mainly in
Slide 24: Cash Flow from Operations
FY 2022 FINANCIAL RESULTS – ADDITIONAL MATERIAL CASH FLOW FROM OPERATIONS Higher CFFO supported by strong operating cash flow, positive margin calls and monetization of French gas tariff shield deficit Reduced impact through €1.4bn monetization of Nov. 2021 – Nov. 2022 French gas tariff shield defic
Slide 25: Soaring WCR Balance Mainly Caused by Commodity Prices
FY 2022 FINANCIAL RESULTS SOARING WCR BALANCE MAINLY CAUSED BY COMMODITY PRICES Expected to reverse with price normalization in the coming years (€bn) 2020 2021 2022 -0.4 Inventory -1.0 Net (2.4) Inventory receivables €62/MWh -2.2 +1.0 -2.4 Margin Others Net receivables Margin (4.8) calls IM & G2 ca
Slide 26: Strong Deleveraging, Rating Maintained
FY 2022 FINANCIAL RESULTS STRONG DELEVERAGING, RATING MAINTAINED Triennial review of nuclear provisions impacting economic net debt Net Financial Debt Leverage ratios (€bn) +2.0 4.0x 25.3 Nuclear -9.0 phase-out 2 +1.9 -8.0 +7.9 24.1 +1.2 Others 5 3.6x +2.7 New leases 4 2.8x Dec Scope 3 Dividends Dec
Slide 27: 2023-25 Financial Outlook
Section 3 CAPITAL ALLOCATION AND OUTLOOK 2023-25 FINANCIAL OUTLOOK 1 2021 2022 2023 2024 2025 EBIT excl nuclear EBIT excl nuclear EBIT excl nuclear EBIT excl nuclear EBIT excl nuclear indication indication indication €5.2bn €8.0bn €6.6 to 7.6bn €7.2 to 8.2bn €7.5 to 8.5bn NRIgs NRIgs NRIgs NRIgs NRI
Slide 28: Summary
FY 2022 FINANCIAL RESULTS SUMMARY Managed the crisis well, Posted strong financial Delivering on our strategy, with reactivity and agility and operational incl. 3.9 GW of renewables performance capacity addition 28 ENGIE FEBRUARY 2023
Slide 29: Additional Material
ADDITIONAL MATERIAL
Slide 30: FY 2022 EBIT Change by Activity
FY 2022 FINANCIAL RESULTS – ADDITIONAL MATERIAL FY 2022 EBIT CHANGE BY ACTIVITY Y/Y change (€m) Gross FX / Scope Organic Key drivers for organic change Commissioning of new capacity 2021 GFOM ruling in Brazil BRL appreciation RENEWABLES +436 +254 Higher prices in Europe (mainly benefitting hyd
Slide 31: EBIT Breakdown
FY 2022 FINANCIAL RESULTS – ADDITIONAL MATERIAL EBIT BREAKDOWN FY 2022 Rest of Latin Northern (€m) France Europe America America AMEA Others TOTAL RENEWABLES 375 313 796 172 9 (39) 1,627 NETWORKS 1,675 49 658 (3) (8) 2,371 ENERGY SOLUTIONS 311 148 (5) 23 58 (123) 412 THERMAL 1,278 51 44 417 (22) 1,7
Slide 32: 2021-22 EBIT Bridge by Effect, Excluding Nuclear
FY 2022 FINANCIAL RESULTS – ADDITIONAL MATERIAL 2021-22 EBIT BRIDGE BY EFFECT, EXCLUDING NUCLEAR (€bn) Performance +0.4 -0.6 -0.8 +0.3 Volumes Commissioning Others 8.0 +3.2 -0.1 +0.3 Scope Prices 5.2 FX FY 2021 FY 2022 32 ENGIE FEBRUARY 2023
Slide 33: Capex
FY 2022 FINANCIAL RESULTS – ADDITIONAL MATERIAL CAPEX On track €5.5bn growth Capex1 invested in 2022 9% 2022 Capex (€bn) 13% Growth Capex 5.5 >90% in energy 58% c. 80% Maintenance Capex 2.4 transition organic Total 7.9 20% activities Renewables Networks Organic Energy Solutions Other activities Acqu
Slide 34: Outright Power Production in Europe
FY 2022 FINANCIAL RESULTS – ADDITIONAL MATERIAL OUTRIGHT POWER PRODUCTION IN EUROPE Nuclear and Hydro Hedged positions and captured prices (% and €/MWh) 74 77 70 59 As at 31 December 2022 Belgium and France Captured prices are shown: • before specific Belgian nuclear and French CNR hydro tax contrib
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 FY 2022 RESULTS: https://www.engie.com/en/finance/results/2022 36 ENGIE FEBRUARY 2023