Engie S.a. · EURONEXT:ENGI
Engie — 9M 2021 Earnings Presentation
24 slides from Engie's earnings presentation, November 2021
Slide 1: 9M 2021 Results
—— OM 2021 Results 10 \Sveer 2021
Slide 2: 9M 2021 Performance
9M 2021 Performance Catherine MACGREGOR CEO 9M 2021 Results | November 2021 2
Slide 3: A strategic plan to deliver
Exiting A strategic plan non-core activities and driving simplification to deliver Sustainable dividend Investment in core Earnings growth activities, notably in ‘Strong investment Renewables Through grade’ balance sheet Sustainable dividend Economic net debt to EBITDA key pillars ratio ≤ 4x Enhanci
Slide 4: Milestone in execution of strategic plan
Milestone in execution of strategic plan Most compelling offer Sale of 100% taking into account all criteria, including financial valuation Major step forward in the Closing execution of the strategic plan to expected in €7.1bn build a simpler ENGIE H2 2022 of Enterprise Value Enables ENGIE to accel
Slide 5: Strong operational performance across the Group
• Strong operational performance across the Group 9M 2021 EBIT • Measures put in place to enable recovery from Covid €4.1bn • Favorable temperature and price effects • Higher nuclear availability of 92% up 57% organically • Performance plan continued to deliver results 9M 2021 Results | November 202
Slide 6: FY 2021 NRIgs expected at €3.0bn to €3.2bn
1 FY 2021 expected to be NRIgs Dividend policy higher than anticipated by the end of H1 €3.0bn to €3.2bn 65-75% payout ratio on NRIgs Floor at €0.65 per share • Very strong 9M, with robust operational performance EBITDA indication EBIT indication • Improved outlook driven by €10.8bn to €11.2bn €6.1b
Slide 7: Growth and Yield focus by business
Renewables Energy Solutions Focus on 3.7 GW commissioned in Covid recovery and activity Growth the last 12 months levels in line with expectations Networks Thermal & Supply Focus on Start of commercial Further progress on coal exit Yield operation for 1,000 km French gas tariff freeze Gralha Azul po
Slide 8: Renewables
• ENGIE, a founding member of the First Movers Coalition Renewables • 1.8 GW commissioned in 9M 2021; on track to 9M 2021 commissioning commission 3 GW in 2021 0.3 GW by technology 14% 0.6 GW • 3.9 GW under construction as of 30 September 2021 35% • ENGIE’s leadership in Green corporate PPAs reaffir
Slide 9: 9M 2021 Financials
9M 2021 Financials Judith HARTMANN EVP, CFO 9M 2021 Results | November 2021 9
Slide 10: EBIT up 50% on a gross basis and 57% organically
• EBIT up 50% on a gross basis and 57% organically 9M 2021 RESULTS €bn, unaudited figures 2 Actual ∆ Gross ∆ Organic − FX effect €-106m, primarily due to BRL and USD EBITDA 7.6 +23% +27% − Limited scope effect 1 of €-25m EBIT 4.1 +50% +57% • Strong cash flow generation CFFO 3 5.3 +1.0 - • Net financ
Slide 11: EBIT +€1,496m organic
EBIT €+1,496m organic (€m) +195 4,116 • Strong operational Others1 performance +556 • Covid recovery +309 -170 +112 • Colder temperature Nuclear Thermal Supply • Price environment +249 Client Solutions +246 Networks o/w ES +84 -131 and EQUANS +225 2,752 Scope -25 Renewables FX -106 9M 2020 9M 2021 1
Slide 12: EBIT 9M 2021 key drivers for organic change
EBIT (€m) 9M 2021 Key drivers for organic change • Q3 2021 GFOM ruling in Brazil ● Texas extreme weather event in Q1 2021 Renewables 842 Price • Overall good Wind and Solar performance • Higher contribution from power transmission lines and TAG in Brazil Networks 1,761 Temperature • Lower RAB remune
Slide 13: €2.9bn growth Capex invested in 9M 2021
€2.9bn growth Capex1 invested in 9M 2021 90% in core activities >90% organic 10% 9% 9M 2021 Gross Capex1 (€bn) 91% Growth Capex1 2.9 20% 37% Maintenance Capex 1.7 Nuclear provisions funding 1.2 Total 5.8 33% Renewables Networks Organic Energy Solutions Other activities External 1. Net of DBSO (Devel
Slide 14: CFFO
CFFO (€bn) +0.8 -0.8 -0.2 Change in Change in +1.2 Taxes & 5.3 external WCR interest paid WCR for GEM excl. GEM 4.3 Operating cash flow 9M 2020 9M 2021 9M 2021 Results | November 2021 14
Slide 15: Net financial debt and credit metrics
Net financial debt Credit metrics (€bn) +1.0 +1.7 4.0x -0.5 25.2 Others Scope 2 Dividends 4.0x 22.5 +5.8 -5.3 3.6x CFFO Gross Capex1 2.4x 2.4x 31 Dec. 2020 30 Sep. 2021 31 Dec. 2020 30 Sep. 2021 Net financial debt / EBITDA Economic net debt / EBITDA 1. Net of DBSO (Develop, Build, Share and Operate)
Slide 16: 2021-23 targets and 9M 2021 update
2021-23 TARGETS 9M 2021 UPDATE Driving Simplification EQUANS, ENDEL, Earnings growth GRTgaz, GTT, ENGIE €9-10bn NRIgs guidance2 2021: EPS, country exits Value disposals Creation €3.0bn to €3.2bn Improving Focused growth Business mix investment €15-16bn ~90% allocated to Renewables, growth Capex1 Net
Slide 17: Strong focus on execution and results
Strong focus on execution and results Significant progress Very strong 9M in Group performance simplification with and 2021 guidance proposed sale of upgraded 100% of EQUANS A Group with Investment in strong capability core activities committed to aligned to climate execute and ambition create value
Slide 18: Appendix
9M 2021 Results | November 2021 18
Slide 19: Renewables, Networks, Thermal drivers
Y/Y change (€m) Gross FX / Scope Organic Key drivers for organic change • BRL depreciation Higher prices for hydro in France and Brazil • Partial sell downs Renewables +135 +246 Q3 2021 GFOM ruling in Brazil Texas extreme weather event in Q1 2021 • Hydro acquisition in Overall good wind and
Slide 20: EBIT by region 9M 2021 vs 9M 2020
9M 2021 Rest of Latin USA & Middle East, (€m) France Europe America Canada Asia & Africa Others TOTAL Renewables 164 82 621 (38) 38 (26) 842 Networks 1,346 46 356 1 18 (5) 1,761 Client Solutions 292 93 (0) 49 22 (89) 367 Thermal 231 159 30 315 (22) 713 Supply 98 27 1 (1) (10) 114 Nuclear 401 401 Oth
Slide 21: 2021 guidance main assumptions
• Market commodity prices as of 29 October 2021 • Average forex rates for FY 2021: €/$: 1.20; €/BRL: 6.28 • Up to €0.1bn dilution effect at the EBIT level from 2021 disposals • No major deterioration in the pattern of Covid restrictions experienced in 9M 2021 • No P&L impact from the French gas regu
Slide 22: Nuclear and hydro
Nuclear and hydro Hedging positions & captured prices (% and €/MWh) 100% 95% 73% 52% 22% 54 55 52 50 42 2020 2021 2022 2023 2024 As of 30 September 2021, Belgium and France 9M 2021 Results | November 2021 22
Slide 23: Important Notice
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 as stateme
Slide 24: For more information about 9M 2021 results
Ticker: ENGI +33 1 44 22 66 29 ir@engie.com https://www.engie.com/en/financial-results FOR MORE INFORMATION ABOUT 9M 2021 RESULTS: https://www.engie.com/en/finance/results/2021 9M 2021 Results | November 2021 24