Slide 1: 2014 Annual Results
Barka III, Oman Bollene photovoltaic park, France 2014 ANNUAL RESULTS February 26th, 2015
Slide 2: A resilient business model
A resilient business model 2014 HIGHLIGHTS 2014 KEY FIGURES (in €bn) • All targets achieved Revenues 74.7 • Strong COI organic growth (+8.2%) excluding French weather/tariff recoup EBITDA 12.1 Current Operating Income • Exceptionally adverse conditions after share in net income of entities 7.2 War
Slide 3: Strategy of a global energy player
Strategy of a global energy player • Leverage on strong positions in IPP Be the benchmark • Develop our presence around energy player the gas value chain in fast growing markets • Grow energy services leadership positions internationally • Be the Energy Partner of choice for our customers while prom
Slide 4: Growth opportunities through worldwide energy transition
Growth opportunities through worldwide energy transition POWER GENERATION FROM RENEWABLES SOURCES (PWh) 20 Rising global awareness 18 Ocean of environmental 16 Geothermal 14 Biomass and waste and health concerns 12 Solar CSP 10 Solar PV 8 Wind 6 Hydro 4 Significant deployment 2 of renewables worldwi
Slide 5: Major successes fueling future growth
Major successes fueling future growth West Coast Energy acquisition 1st production from Amstel, H North & Gudrun fields (North Sea) Power(1) Cofely UK signs £300m IFM contract LNG Bunkering Official opening of the Stublach gas storage facility Gas & LNG Services Rotterdam thermal plant
Slide 6: Update on Belgian situation
Update on Belgian situation GDF SUEZ NUCLEAR CAPACITY IN BELGIUM • 10-year extension decided • €0.6bn (2012-2019) Capex in November 2013 and to be shared with EDF at 50/50 End of T1 MW Ownership operations concluded in March 2014 • €0.16bn spent as of end of December 2014 (@ 100%) (3) Doel 1 433 100
Slide 7: 2014 Financial Review
2014 FINANCIAL REVIEW GoeF Svea BY PEOPLE FOR PEOPLE
Slide 8: All targets achieved
All targets achieved 2014 Adjusted for Δ 14/13 2013 Targets / Reported weather w/o weather in €bn in France and tariff recoup indications(2) 12.3 - 13.3 EBITDA 13.0 12.1 12.5 +2.4% 12.5 DEPRECIATION & AMORTIZATION / OTHERS (5.4) (5.0) (5.0-5.2) CURRENT OPERATING INCOME after share in net 7.2 - 8.2
Slide 9: 2014: CFFO and cash equation offering flexibility for 2015-16
2014: CFFO and cash equation offering flexibility for 2015-16 (in €bn) 10.3 • Decrease in financial (1.3) and tax expenses +0.3 +0.2 (1.4) • Higher WCR due to impact (0.1) 7.9 of commodity price CFFO CASH NET FINANCIAL TAX CASH 2013 GENERATED EXPENSES EXPENSES evolution on margin calls FRO
Slide 10: Positive EBITDA & COI organic growth in 2014
Positive EBITDA & COI organic growth in 2014 excluding weather and tariff recoup impacts in France By business line (in €bn) -6.7% gross / -4.2% organic +2.4% organic excluding weather and tariff recoup impacts in France 13.0 (0.2) (0.2) +€0.3bn (0.8) FX +6.8% +3.2% 12.1 Scope +1.4% -11.5% +10.9% 20
Slide 11: EBITDA 2014 vs 2013: main organic drivers
EBITDA 2014 vs 2013: main organic drivers ENERGY ENERGY GLOBAL INFRA- ENERGY INTERNATIONAL EUROPE GAS & LNG STRUCTURES SERVICES +€0.1bn -€0.8bn +€0.2bn -€0.1bn +€0.03bn Brazil -€110m Australia -€70m Warm weather E&P volumes Increased Unfavorable Market & tariff recoup Warm EBIT margins hydrology
Slide 12: 2014: From net recurring income to net income
2014: From net recurring income to net income (in €bn) -9% +6% excluding weather 3.4 (0.9) +0.2 +0.1 (0.1) 3.1 & tariff recoup +0.4 impacts in France (3.4 in 2014 vs 3.2 in 2013) NRIgs Δ EBITDA Δ D&A, Δ FINANCIAL Δ INCOME Δ OTHERS NRIgs OTHERS TAX 2013 • Weather • Lower RESULT • Lower cost • Recurre
Slide 13: Perform: NRIgs target achieved one year in advance
Perform: NRIgs target achieved one year in advance PERFORM CONTRIBUTIONS CUMULATIVE IMPACT ON NRIgs Cumulated in €bn 2012-2014 2014 €0.9bn reached at end 2014 OPEX 2.0 OPEX 0.7 EBITDA (gross) 2.6 Others 0.6 0.9 Others 0.2 (vs initial target end 2015) Fixed cost drift (1.3) (0.2) >€1bn ~€0.9bn EBITDA
Slide 14: Strong balance sheet actively optimized
Strong balance sheet actively optimized ACTIVE LIABILITY MANAGEMENT • Early refinancing of €5bn revolving A well spread-out corporate bonds maturity profile credit facility in €bn 3 000 000 0003 Average bonds redemption (2015-25) €1.7bn per year • Largest corporate green bond of €2.5bn at an histori
Slide 15: 2015 Outlook
2015 OUTLOOK GoeF Svea BY PEOPLE FOR PEOPLE
Slide 16: Recent evolution of commodity price
Recent evolution of commodity price Brent ($/bbl) Power Price Belgium / France baseload, UK CDS €/MWh CDS assuming 36% efficiency rate £/MWh Gas Europe / Asia (€/MWh) US ERCOT North Peak SS ($/MWh) TTF JKM Spread gas-oil (€/MWh) Victoria Baseload CO2 Inclusive (Aus$/MWh) Spread calculated with illus
Slide 17: Exposure to commodity price
Exposure to commodity price EBITDA 2014 BY BUSINESS LINE MAIN EXPOSURES AT EBITDA LEVEL E&P LNG Supply, Sales & Midstream Power Merchant Non sensitive to commo GLOBAL • Oil and gas price in E&P B3G GAS & LNG 2.2 • Interregional LNG spreads, mainly to Asia • Oil-indexed LNG sourcing ENERGY • Most of
Slide 18: "Quick reaction plan" to tackle drop in oil/gas price
“Quick reaction plan” to tackle drop in oil/gas price and preserve 2015-16 cash equation QUICK REACTION PLAN • Further actions on SG&A across the Group ACTIONS ON OPEX • Detailed review & optimization of operating costs (mainly in E&P and Energy Europe) • Reinforce synergies between businesses EBITD
Slide 19: 2015 resilient EBITDA despite drop in oil/gas price
2015 resilient EBITDA despite drop in oil/gas price and persisting weak conditions in mature markets By main effect QUICK SCOPE COMMODITY REACTION (in €bn) WEATHER FX OUT PRICES PLAN NUCLEAR COD OTHERS & PERFORM +0.4 +0.1 (0.2) (1.3) NET 12.1 +0.45 (0.2) 11.7-12.3 2014 GAS / OIL (0.9) +0.45 +0.2 201
Slide 20: Update on Brazil
Update on Brazil Tractebel Energia Jirau project • Hydrology impact mitigated by strong 2014 • Impact from delay in assured managerial actions and high thermal energy and high PLD prices, dispatch partly mitigated by accelerated H1 2014: -€0.3bn turbines ramp-up FY 2014: -€0.2bn • Provisions coverin
Slide 21: 2015 NRIgs guidance: €3.0-3.3bn
2015 NRIgs(1) guidance: €3.0-3.3bn in €bn 2015(2) EBITDA(3) 11.7-12.3 DEPRECIATION & AMORTIZATION / OTHERS (4.9-5.1) CURRENT OPERATING INCOME(3) after share in net income of entities accounted for using the equity method 6.8-7.4 FINANCIAL RESULT (recurring) (1.5-1.6) INCOME TAX (recurring) (1.6-1.8)
Slide 22: Medium-Term Growth
MEDIUM-TERM GROWTH GoeF Svea BY PEOPLE FOR PEOPLE
Slide 23: Resilient medium term growth outlook despite drop in oil/gas price
Resilient medium term growth outlook despite drop in oil/gas price UPDATED ASSUMPTIONS Energy merchant LANDING OVER 2015-16 activities in Europe • Outright Europe COI profile(1) D3 / T2 restart on July 1st 2015 €1.7bn • Energy Europe 2016: 50% remaining CWE outright • UK-Turkey volumes to be hedged
Slide 24: Recent investments delivering attractive returns
Recent investments delivering attractive returns Mid-life ROCE analysis Mid-life ROCE corresponds to: • Average actual NOPAT (2011-2014) • Capital Employed at COD divided by 2 Mid-life Projects with COD between 2011 and 2013 ROCE Capital Weighted Thermal Renewables E&P Total employed average (€bn) E
Slide 25: Environmental and Social targets well on-track
Environmental and Social targets well on-track Fighting against 2014 Targets 2014 2015 Health & Safety targets climate change frequency rate Decrease in CO2 specific -10% improved continuously, -2% 4.1 <4 emissions vs 2012 (2020)(1) 7% reduction vs. 2013 Selective development Biodiversity in renewab
Slide 26: Conclusion
Conclusion Confirmation of business model relevance Quick reaction plan to oil/gas price drop enabling resilient 2015 earnings(1) • Net Recurring Income group share(2): €3.0-3.3bn • Indicative EBITDA of €11.7-12.3bn / COI(3) of €6.8-7.4bn Financial targets 2014-16 • Net Capex(4): €6-7bn yearly avera
Slide 27: 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