Slide 1: FY Results 2021
FY Results 2021 15 FEBRUARY 2022
Slide 2: Agenda
2 FY 2021 Results February 2022 Agenda Introduction AARTI SINGHAL Group Director Investor Relations Review of 2021 CATHERINE MACGREGOR Chief Executive Officer PIERRE-FRANÇOIS RIOLACCI Chief Financial Officer Medium-term Outlook CATHERINE MACGREGOR Chief Executive Officer PIERRE-FRANÇOIS RIOLACCI Chi
Slide 3: Review of 2021
3 FY 2021 Results February 2022 Review of 2021 CATHERINE MACGREGOR CEO
Slide 4: Last year's strategic plan set the foundation for sustainable, long-term success
4 FY 2021 Results February 2022 Last year’s strategic plan set the foundation for sustainable, long-term success Increase efficiency Simplify, refocus and Step up and capital allocation improve business mix renewables growth discipline Accelerate Net Zero Generate sustainable returns for shareholder
Slide 5: We put our plan into action and drove a relentless focus on execution
5 FY 2021 Results February 2022 We put our plan into action and drove a relentless focus on execution Increase efficiency Simplify, refocus and Step up Organisation and and capital allocation improve business mix renewables growth performance culture discipline €9.2bn 3 GW Discipline in 25 BUs to 4
Slide 6: ENGIE delivered a strong financial performance in 2021
6 FY 2021 Results February 2022 ENGIE delivered a strong financial performance in 2021 Total EBIT Total NRIgs Proposed €6.5bn €3.2bn dividend Cont. EBIT Cont. NRIgs €0.85 €6.1bn €2.9bn 2020: €0.53 2020: €4.5bn 2020: €1.7bn Growth Capex 1 ROCE 1 €4.3bn 9.1% 2020: €3.9bn 2020: 5.7% 1 Excluding EQUANS
Slide 7: Progress on ESG
7 FY 2021 Results February 2022 Progress on ESG Greenhouse gases emissions Renewables Gender diversity GHG1 emissions Share of renewables % of women from energy production, in line in the power generation in the management with the SBT 2 objectives capacity mix in line with the of the Group SBT 2 ob
Slide 8: Renewables delivered strong growth
8 FY 2021 Results February 2022 Renewables delivered strong growth • Achieved target with 9 GW commissioned across 2019-21 Strong track record in renewables growth • 2.1 GW of green corporate PPAs signed in 34.4 GW Renewables capacity addition (GW at 100%), mostly driven by commissioning 2021 placin
Slide 9: Energy Solutions delivering decarbonisation solutions for customers
9 FY 2021 Results ENERGY SOLUTIONS February 2022 Energy Solutions delivering decarbonisation solutions for customers Distributed energy infrastructures Energy efficiency services • High renewal rates and new LT concessions • Multi-country decarbonisation Paris district cooling (20 years) deals: Forv
Slide 10: Financial Overview
10 FY 2021 Results February 2022 2021 Financial Overview PIERRE-FRANÇOIS RIOLACCI CFO
Slide 11: 2021 financial performance highlights
11 FY 2021 Results February 2022 2021 financial performance highlights Higher earnings – Results at top-end of the guidance at all levels YoY ∆ YoY ∆ Reported / Discontinued Indications / ‘Total’ (€bn), unaudited figures 1 2021 Gross Organic (€bn) Continuing operations Guidance EBITDA 10.6 +19% +22%
Slide 12: EBIT up +42% organically
12 FY 2021 Results February 2022 EBIT up +42% organically Mainly driven by strong operational performance, price environment, Covid recovery and colder temperature EBIT €+1,814m organic (€m) incl. €85m performance +320 6,145 1 +1,081 OTHERS ENERGY SOLUTIONS THERMAL SUPPLY +267 -1 -47 NUCLEAR -12 -16
Slide 13: Renewables EBIT
13 FY 2021 Results RENEWABLES February 2022 Renewables EBIT Leveraging price tailwind and contribution of newly commissioned assets GFOM RULING ACHIEVED PRICES OUTRIGHT VOLUMES CONTRIBUTION HYDRO CNR FRANCE HYDRO FRANCE BRAZIL +22% (€/MWh) (TWh) (€m) organic growth +28% 56 15,3 -0.2 TWh EBIT FY 2020
Slide 14: Networks EBIT
14 FY 2021 Results NETWORKS February 2022 Networks EBIT Colder temperature in Europe and higher international contribution BIOMETHANE CAPACITY TEMPERATURE EFFECT POWER TRANSMISSION CONNECTED TO IN FRANCE NETWORK LENGTH GRDF/GRTgaz +13% (€m) (km) (TWh/y) organic growth +€210m 75 +19% 5 595 +61% 6,1 E
Slide 15: Energy Solutions EBIT
15 FY 2021 Results ENERGY SOLUTIONS February 2022 Energy Solutions EBIT Positive business development and performance improvement offset by higher costs of EVBox EBIT MARGIN EBIT MARGIN (%) EXCL. EVBOX Flat (%) organic evolution +110bps +20bps 5,2% EBIT FY 2020 vs FY 2021 4,1% (€m) Energy 3,5% 3,7%
Slide 16: Overview of P&L from EBITDA to Net income
16 FY 2021 Results February 2022 Overview of P&L from EBITDA to Net income From EBITDA to NRIgs From NRIgs to NIgs (€bn) 2021 2020 Delta (€bn) 2021 EBITDA 10.6 8.9 +1.7 NRIgs (continuing activities) 2.9 D&A and others (4.4) (4.4) -0.0 Impairment 2 (1.0) EBIT 6.1 4.5 +1.7 Restructuring costs (0.2) Re
Slide 17: Cash flow from operations
17 FY 2021 Results February 2022 Cash flow from operations Slightly down mainly due to negative change in WCR, primarily driven by margin calls, more than offsetting higher operating cash flow (€bn) Change in WCR: -1.4 +1.3 -2.2 -0.2 6.6 Operating +0.8 cash flow Taxes & interest paid 6.3 Margin call
Slide 18: 2021 Capex
18 FY 2021 Results February 2022 2021 Capex 1 Growth Capex1 focused on core activities and Net Zero, globally in line with indications €4.3bn growth Capex1 invested in 2021 8% 9% FY 2021 Gross Capex1 (€bn) Growth Capex1 4.3 17% >90% 44% in energy >90% Maintenance Capex 2.4 transition organic Nuclear
Slide 19: Net debt up in 2021, strong liquidity and rating maintained
19 FY 2021 Results February 2022 Net debt up in 2021, strong liquidity and rating maintained Strong liquidity of €21.0bn as at 31 December 2021, incl. €14.0bn of cash Net Financial Debt (€bn) Leverage ratios 1.5 (2.0) 1.8 25.3 8.0 Others 3 22.5 Scope 2 Dividends (6.3) 4.0x o/w 1.3 Nuclear provisions
Slide 20: Outlook to 2024
20 FY 2021 Results February 2022 Outlook to 2024 CATHERINE MACGREGOR CEO
Slide 21: Integrated model with strong local anchorage positions ENGIE uniquely to capture growth
21 FY 2021 Results February 2022 Integrated model with strong local anchorage positions ENGIE uniquely to capture growth 01 Among worldwide 02 Large portfolio of flexible leaders in renewables generation and gas expertise • 34.4 GW installed and targeting 80 GW by 2030 • Large fleet of flexible asse
Slide 22: Examples of ENGIE's asset-mix and integrated business model in action
22 FY 2021 Results February 2022 Examples of ENGIE’s asset-mix and integrated business model in action Extracting value Driving Enabling renewable & Maximising of flexibility renewables growth low-carbon gases value and Image driving growth & Sale of ancillary services to 25 years - 20 TWh, multi- P
Slide 23: Renewables growth underpinned by strong project pipeline
23 FY 2021 Results February 2022 Renewables growth underpinned by strong project pipeline Primarily organic growth with bolt-on, compelling acquisitions Capacity targets well covered by pipeline1 Capacity evolution (GW at 100%) with 2025 and 2030 targets 66 GW 28 Development 34+ GW up 4 GW 12 Rest o
Slide 24: Energy solutions experiencing strong market growth
24 FY 2021 Results ENERGY SOLUTIONS February 2022 Energy solutions experiencing strong market growth Ambition 2025 Decarbonisation Distributed energy infrastructures Megatrends • District Heating & Cooling Distributed energy infrastructures • Distributed generation: solar and on-site utilities Custo
Slide 25: ENGIE's Networks portfolio providing stability
25 FY 2021 Results NETWORKS February 2022 ENGIE’s Networks portfolio providing stability FRANCE INTERNATIONAL 2021 year-end figures Regulated Asset Base +1.5% CAGR expected over 2021-2024 €3.8bn ~€30bn capital employed (quasi-RAB) ~€27bn ~€28bn ~€28bn ~€29bn vs €3.4bn in 2019 Gas + Power transmissio
Slide 26: ENGIE is strongly positioned across the entire value chain to capture opportunities in renewable gases
26 FY 2021 Results February 2022 ENGIE is strongly positioned across the entire value chain to capture opportunities in renewable gases Total consumption of gaseous fuels in 2050 (TWh) ENGIE Production / Networks Usage / 3 500 EUROPEAN projects and targets Source Commercialisation SCENARIO 3 000 Ren
Slide 27: Supporting an orderly Nuclear phase-out in Belgium
27 FY 2021 Results NUCLEAR February 2022 Supporting an orderly Nuclear phase-out in Belgium • Draft law on nuclear provisions funding expected to be voted in spring 2022: Nuclear phase out in Belgium (ENGIE net capacity @ year end) – Proposes accelerated funding of dismantling costs to 2030 • Increa
Slide 28: Medium-term outlook
28 FY 2021 Results February 2022 Medium-term outlook 1 ENGIE positioning itself towards sustainable growth NRIgs2 (€bn) 3,5 Driving strong 2,9 3,3 3,4 underlying growth 2,7 2,7 3,3 2,6 2,5 2,5 3,2 Through investment, 2,4 3.1 particularly in Renewables, 1,7 and performance improvement More than offse
Slide 29: Financial Outlook to 2024
29 FY 2021 Results February 2022 Financial Outlook to 2024 PIERRE-FRANÇOIS RIOLACCI CFO
Slide 30: Value creation framework
30 FY 2021 Results February 2022 Value creation framework • New organization with clear UPGRADED Driving accountability Earnings growth UPGRADED Simplification • Exit non-strategic activities and NRIgs guidance1: geographies 2022: €3.1bn to €3.3bn 2024: €3.3bn to €3.5bn Improving • More Renewables V
Slide 31: Growth and Maintenance Capex
31 FY 2021 Results February 2022 Growth and Maintenance Capex 1 2021-23 outlook confirmed, continuity maintained for 2024 Growth Capex1 2021-23 (€bn) ENGIE 4.3 8.8 15-16 Renewables 1.9 3.3 c. 6-7 Growth Capex1 Networks 1.3 3.0 c. 4-5 2021-23: Energy Solutions 0.7 1.6 c. 2-3 €15-16bn confirmed and we
Slide 32: Value creation from growth Capex
32 FY 2021 Results February 2022 Value creation from growth Capex 1 Strict investment discipline • Strategy: strict alignment with energy transition and geographical priorities • Finance: mandatory value creation, P&L contribution and cash generation thresholds • ESG: CO2 emissions, biodiversity, re
Slide 33: Performance Plan
33 FY 2021 Results February 2022 Performance Plan Confirmed for 2021-23, continued to 2024 €0.6bn performance additional net EBIT contribution Net EBIT contribution 2021-23 confirmed over 2021-23 (€bn) ENGIE 0.1 >0.5 0.6 (€bn) 0,15 2021 actual 2021 realised and identified 0,20 2021-23 indication 0,2
Slide 34: Disposals
34 FY 2021 Results February 2022 Disposals Simplification well under way, 2021-23 indication upgraded to at least €11bn Net financial debt reduction through disposals1 (€bn) Disposals ENGIE 2.0 9.2 9-10 2021-23: • Well under way with €9.2bn already signed or closed 2021 closed transactions • Reflect
Slide 35: Residual exposure to highly volatile market
35 FY 2021 Results February 2022 Residual exposure to highly volatile market Unprecedented volatility in commodity markets Remaining open positions for outright power generation As at 31 Dec 2021 (€/MWh) 68% 2022: c. €300/MWh 36% 2023: c. €100/MWh 20% 2022 2023 2024 2024: c. €50/MWh Nuclear Belgium/
Slide 36: Focus on 2022
36 FY 2021 Results February 2022 Focus on 2022 2021 Activity Expectations for main EBIT evolution drivers vs. 2021 20221 Growth driven by newly commissioned capacity, higher prices and EBITDA Renewables reversal of 2021 Texas cold snap, partly offset by no more benefit from EBITDA indication €10.6bn
Slide 37: 2021-24 EBIT evolution
37 FY 2021 Results February 2022 2021-24 EBIT evolution 1 Growth throughout the period to 2024, mainly fueled by investments and performance more than offsetting progressive nuclear phase-out 2021-24 EBIT evolution, continuing (€bn) 1.5-3.5% c. +0.7 -0.7 to -1.1 CAGR c. +1.0 6.4-6.8 6.4-6.8 c. -0.3
Slide 38: Medium-Term Financial Outlook 2022 to 2024
38 FY 2021 Results February 2022 Medium-Term Financial Outlook 2022 to 2024 1 2022 2023 2024 Growth Capex 2 2021-23: €15-16bn, unchanged EBITDA indication EBITDA indication EBITDA indication 2024: c. €5bn €10.7-11.1bn €10.9-11.3bn €11.3-11.7bn Disposals EBIT indication EBIT indication EBIT indicatio
Slide 39: Summary
39 FY 2021 Results February 2022 Summary CATHERINE MACGREGOR
Slide 40: Summary
40 FY 2021 Results February 2022 Summary Accelerating ENGIE’s 2021 financial investment, integrated model performance at Significant progress notably in positions us the top end of the on strategic plan Renewables, with strongly to guidance in 2021 a returns focus execute and create value
Slide 41: Additional Material
41 FY 2021 Results February 2022 ADDITIONAL MATERIAL
Slide 42: FY 2021 EBIT yoy change by activity: key drivers
42 FY 2021 Results February 2022 FY 2021 EBIT yoy change by activity: key drivers Y/Y change (€m) Gross FX / Scope Organic Key drivers for organic change • BRL depreciation Higher prices for hydro in France and Brazil Texas extreme weather event in Q1 2021 • Partial sell-downs Renewables +92 +20
Slide 43: FY 2021 and FY 2020 EBIT breakdown
43 FY 2021 Results February 2022 FY 2021 and FY 2020 EBIT breakdown FY 2021 USA & Middle East, (€m) France Rest of Europe Latin America Canada Asia & Africa Others TOTAL Renewables 273 120 866 (13) 7 (68) 1,185 Networks 1,825 74 403 18 (7) 2,314 Energy Solutions 309 124 (5) 63 27 (152) 366 Thermal 5
Slide 44: Thermal EBIT
44 FY 2021 Results THERMAL February 2022 Thermal EBIT Headwinds in Chile, higher spreads and ancillaries captured in Europe through flexible generation AVERAGE CAPTURED INTERNAL UNPLANNED SPARK SPREADS EUROPE UNAVAILABILITY -4% (€/MWh) (%) organic decrease -70bps 19 5,2% EBIT FY 2020 vs FY 2021 +63%
Slide 45: Supply EBIT
45 FY 2021 Results SUPPLY February 2022 Internal reclassification: Supply EBIT Bulk of B2B moved from ‘Supply’ to ‘Others’ Lower margins and reversal of 2020 positive one-offs partly offset by higher volumes TEMPERATURE EFFECT # B2C IN FRANCE CONTRACTS -6% (€m) (m) +0.3m organic decrease 22.1 22.3 +
Slide 46: Nuclear EBIT
46 FY 2021 Results NUCLEAR February 2022 Nuclear EBIT After 3 years of negative EBIT, exceptional performance driven by higher prices and volumes VOLUMES PRICES BE+FR @SHARE CAPTURED €1.1bn (TWh) (€/MWh) organic growth +30% 47,4 +46% 60 EBIT FY 2020 vs FY 2021 36,5 (€m) 41 -101 -70 +518 Belgian nucl
Slide 47: Others EBIT
47 FY 2021 Results OTHERS February 2022 Internal reclassification: Others EBIT Bulk of Supply B2B moved from ‘Supply’ to ‘Others’ Strong commercial and trading performance, lower corporate costs TEMPERATURE EFFECT B2B SUPPLY IN FRANCE €0.3bn (€m) organic growth +€26m 9 EBIT FY 2020 vs FY 2021 2020 (
Slide 48: 2020-21 EBIT bridge by effect
48 FY 2021 Results February 2022 2020-21 EBIT bridge by effect EBIT (€bn) -0.1 + 1.1 Others 6.1 -0.2 + 0.8 Volumes1 4.5 Scope Prices & FX FY 2020 FY 2021 1. Also including Covid recovery and temperature effects
Slide 49: Performance plan 2021
49 FY 2021 Results February 2022 Performance plan 2021 (€m) €85m 15 112 2021 Actuals globally in line with target Support functions • Good performance from operational excellence Operational excellence Loss-making activities • Ramp-up in G&A savings expected in 2022 • Loss-making activities impacted
Slide 50: Detail of FY 2021 total Capex
50 FY 2021 Results February 2022 Detail of FY 2021 total Capex 1 €8.0bn Capex, o/w €4.3bn growth Capex1 focused on strategic priorities Breakdown by nature Growth Capex1 Main growth Capex 1 (€bn) by activity (€bn) 8.0 (€bn) 7.5 Renewables, o/w 1.9 North America Wind & Solar 0.8 France Wind, Solar &
Slide 51: Summary recurring income statements 2020-21
51 FY 2021 Results February 2022 Summary recurring income statements 2020-21 (€m) FY 2020 FY 2021 EBITDA 8,908 10,563 o/w recurring share in net income of equity method entities 690 751 Depreciation, amortization and others (4,415) (4,418) EBIT 4,493 6,145 Recurring financial result (1,377) (1,494)
Slide 52: 2022-24 key assumptions (1/2)
52 FY 2021 Results February 2022 2022-24 key assumptions (1/2) Outright Power Nuclear FX assumptions Weather conditions Below EBIT Production indications (% and €/MWh) • Belgium nuclear • 6.38 €/BRL • Average temperature • Recurring net financial availability: over 2022-24 in France costs: €(1.4-1.6
Slide 53: 2022-24 key assumptions (2/2)
53 FY 2021 Results February 2022 2022-24 key assumptions (2/2) Commodity forward prices1 (average H2 2021) Commodity forward prices1 (as at 31 December 2021) Basis for the indications and guidance (€/MWh) 2022 2023 2024 (€/MWh) 2022 2023 2024 Power Base BE 118 79 67 Power Base BE 166 94 74 Power Bas
Slide 54: P&L Group indications for 2022-24
54 FY 2021 Results February 2022 P&L Group indications for 2022-24 Earnings (€bn) 2022 2023 2024 EBITDA 10.7-11.1 10.9-11.3 11.3-11.7 EBIT 6.1-6.5 6.2-6.6 6.4-6.8 Rec. financial result (1.4-1.6) (1.4-1.6) (1.4-1.6) Rec. income tax 21-23% 20-22% 22-24% NRIgs 3.1-3.3 3.2-3.4 3.3-3.5
Slide 55: 2021-24 EBIT main drivers
55 FY 2021 Results February 2022 2021-24 EBIT main drivers Main drivers by activity 2021 EBIT 2021-24 EBIT Performance contributing positively across each activity actual (€m) evolution1 • Renewables: investments contribution, higher prices, positive one-offs 2021 Renewables 1,185 ++++ • Networks: l
Slide 56: Eolia – a compelling, bolt-on acquisition
56 FY 2021 Results RENEWABLES February 2022 Eolia – a compelling, bolt-on acquisition Transaction with pipeline to create an integrated industrial platform in Iberia Strategic fit Industrial value add Financial rationale Eolia expected capacity (GW) • Strengthening ENGIE’s • ENGIE to lead on deliver
Slide 57: Nuclear phase out in Belgium
57 FY 2021 Results February 2022 Nuclear phase out in Belgium Indicative theorical total (Belgium + France) nuclear production 47.4 TWh c.44 TWh1 c.33 TWh1 c.32 TWh1 c.23 TWh1 c.9 TWh1 2021 2022 2023 2024 2025 2026 Installed ENGIE End of capacity capacity operations / Nuclear reactors Operator @100%
Slide 58: Margin calls
58 FY 2021 Results February 2022 Margin calls OBJECTIVE SUBSTITUTION OF COUNTERPARTY CREDIT RISK BY CASH RISK IN MARKET RISK HEDGING ACTIONS FY 2021 (€bn) ENGIE Gross Variation Margins 7.1 Different kinds Management Liquidity swaps (5.0) Net Variation Margins 2.1 • Organized markets: Initial Margin
Slide 59: Outright power production in Europe
59 FY 2021 Results February 2022 Outright power production in Europe Nuclear and Hydro Hedging positions & captured prices (% and €/MWh) 100% 100% 80% 64% 32% 59 60 55 57 42 2020 2021 2022 2023 2024 As of 31 December 2021 Belgium and France
Slide 60: Disclaimer
60 FY 2021 Results February 2022 Disclaimer Forward-Looking statements 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 as
Slide 61: For more information about ENGIE
61 FY 2021 Results February 2022 For more information about ENGIE Ticker: ENGI +33 1 44 22 66 29 ir@engie.com https://www.engie.com/en/financial-results FOR MORE INFORMATION ABOUT FY 2021 RESULTS: https://www.engie.com/en/finance/results/2021