Slide 1: 9M Results 2020
9M Results 2020 November 13th 2020
Slide 2: Jean-Pierre Clamadieu, Chairman
Jean-Pierre CLAMADIEU Chairman 2
Slide 3: Appointment of new CEO to drive ENGIE's transformation
Appointment of new CEO to drive ENGIE’s transformation Catherine MacGregor appointed as the new Chief Executive Officer for ENGIE Effective 1 January 2021, with appointment as Board member to be proposed at the AGM in 2021 Progress on new strategic orientation announced in July 2020 ENGIE deli
Slide 4: Claire Waysand, Interim Chief Executive Officer
Claire WAYSAND Interim Chief Executive Officer 4
Slide 5: Pace of delivery on new strategic orientation
Strong recovery following a significantly impacted Q2 Pace of delivery 2020 guidance confirmed on new strategic orientation Q3 COI organically up 2% on last-year: strong growth in Increased focus on renewables and infrastructure Renewables and clear rebound in Client Solutions assets Continued
Slide 6: Creation of a new leader in asset-light services
Client Solutions within ENGIE to be refocused Creation of a new leader in asset-light services, on decentralized energy infrastructures where ownership could change Providing complex, integrated and large-scale solutions 2 business models: projects (design & build) • Servicing Cities & Communiti
Slide 7: Next steps following first phase
Following completion of this first phase announced today, the next steps include: • Organization design and appointment of future management teams for the proposed new entity, • Preparation for separation of activities, • Review of options for future ownership. Social dialogue already initiated and
Slide 8: Judith Hartmann, EVP, CFO
Judith HARTMANN EVP, CFO and Member of the executive leadership team 8
Slide 9: Q3 COI and Covid-19 impact by business line
Covid-19 impact c. -€150M in Q3 vs. c. -€720M in Gross COI impacted by adverse FX, mainly BRL Q2 Organic YoY COI growth +2%, mainly driven by Renewables Estimated impacts of Covid-19(1) and French Temperature(2) [€M] on Q3 2020 COI by Business Line +€11M / +2% organic French 683 [€bn] Covid-19
Slide 10: 9M results
9M RESULTS– In €bn, ∆ ∆ unaudited figures(1) Actual Gross(2) Organic(2) 9 months COI impacted by EBITDA 6.2 -0.9 -13% -10% Covid-19 (-€1.0bn), COI 2.8 -1.1 -28% -24% FX (-€0.2bn) and French temperature (-€0.2bn) CFFO(3) 4.3 +0.4 - - effects, as seen in H1 Financial Net Debt 25.7 -0.2(4) - - COI YoY
Slide 11: Client Solutions COI
Covid-19 impact (c. -€530M, incl. SUEZ): loss of revenue, COI [€M] specific additional purchases, bad debts Positive contribution from acquisitions, mainly Conti 9M 19 9M 20 Delta in the US and Powerlines in Europe Client 562 32 -530 Other smaller headwinds, incl. warmer temperatures Solutions
Slide 12: Networks COI by geography
Networks COI by geography [€M] France: mainly lower volumes due to temperature (c. -€115M) and Covid-19; however, volume effects recoverable under regulatory arrangements 1,606 1,491 1,523 71 32 Latin America: positive scope effect from TAG acquisition 186 71 (c. +€80M); negative FX and volume e
Slide 13: Renewables COI by geography
Renewables COI by geography [€M] Latin America: decrease mainly due to FX BRL (c. -€140M) France: higher volumes for hydro and wind and improved prices for hydro, partly offset by scope out and DBSO 740 62 696 Others: mainly commissionings in USA, incl. first effects from 562 144 the tax equit
Slide 14: Thermal COI
Positive 2019 one-offs due to LDs in Chile and Brazil COI [€M] Disposals of Glow (Thailand) and German / Dutch coal power plants (c. -€90M) 9M 19 9M 20 Delta Partly offset by a better performance of European merchant Thermal 1,017 87849 -139 gas fleet, COD and higher margins in Brazil and posi
Slide 15: Supply COI
Strong negative impacts from Covid-19 (net c. -€280M): COI [€M] lower consumption, lower services and bad debts Negative impact from warm temperature (c. -€150M), 9M 19 9M 20 Delta mainly in France (c. -€70M) Supply 198 -150 -348 Partially offset by mitigation actions and other positive develo
Slide 16: Nuclear and Others COI
Nuclear COI [€M] • better prices and lower Opex • offset by lower volumes and higher depreciation 9M 19 9M 20 Delta Minimal global impact of Covid-19 (c. -€20M) Nuclear (239) (155) +84 Others Others (65) (72) -7 • positive 2019 one-off (partial sale of a gas supply contract) and Covid-19 impacts
Slide 17: Cash flow from operations
17 Delta WCR change: +1.5 [€bn] (0.1) 4.3 +0.7 4.0 (1.0) Taxes & +0.8 Interest paid Other WCR Operating Margin calls Cash Flow & financial derivatives CFFO CFFO 9M 2019 9M 2020 17 November 13th 2020
Slide 18: Paulo Almirante, EVP, COO
Paulo ALMIRANTE EVP, COO and Member of the executive leadership team 18
Slide 19: Employee activity and gas and power demand
ENGIE employee activity Gas and Power demand vs 2019 HIGHLIGHTS 100% Partial unemployment BEL Gas 80% Non active (1) Activity levels back to normal over Q3 0% Working processes fully implemented BEL Power 60% to new health & safety requirements FR Gas Active Gas & Power demand almost back to h
Slide 20: Client Solutions revenue and order book
Revenue [€bn] Order book(2) [€bn] HIGHLIGHTS Rapid recovery in Q3 -3% +12% with revenue 1% above Q3 2019 11.9 Implementation of performance actions 14.8 10.6 with an organic cost reduction 14.3 of €0.18bn in Q3 +1% +4% COI in Q3 up 9% organically Sales activity for the 9 months above 4.8 4.9
Slide 21: Supply Q3 gas and power sales and COI
Gas and Power sales Q3 [TWh] COI Q3 [€M] HIGHLIGHTS 0.3 Sales volumes positively impacted -4 95 +12 +3 by strong commercial activity (+12TWh) -142 -61 -153 87 +47 Q3 2019 Temperature Covid-19 (1) Mitigations & Q3 2020 Q3 COI slightly below last year other effects Mitigation actions and other e
Slide 22: Networks, Renewables and Thermal / Nuclear confirming their resilience
NETWORKS RENEWABLES THERMAL NUCLEAR 1.3 million gas smart meters 5.4 GW under construction 78% contracted / 22% merchant(1) Delivering lifetime extension installed in France at end On track to commission +9 program despite Covid-19 Stable high availability rate above September GW in the
Slide 23: Judith Hartmann, EVP, CFO
Judith HARTMANN EVP, CFO and Member of the executive leadership team 23
Slide 24: 2020 guidance
EBITDA indicative range of €9.0 - 9.2bn COI indicative range of €4.2 - 4.4bn NRIgs range of €1.7 - 1.9bn Economic Net Debt / EBITDA above 4.0x for 2020 but below or equal to 4.0x over the long term Capex(2) indication of €7.5 - 8.0bn o/w c. €4bn Growth, c. €2.5bn Maintenance and c. €1.3bn Nuclear fu
Slide 25: Significant early progress on new strategic orientation
Significant early progress Strong improvement from Q2 on new strategic orientation with Q3 COI organically slightly up on last year Well prepared 2020 guidance confirmed to minimize impacts of new Covid restrictions 25 November 13th 2020
Slide 26: Additional material
Additional material 26
Slide 27: Financial net debt and liquidity
Financial Net Debt and cost of gross debt Strong liquidity [€bn] 25.9 (4.3) 5.2 (0.7) 0.4 (0.8) 25.7 Scope(2) Dividends Others(3) €22.5bn of liquidity CFFO Gross Dec. Capex(1) Sep. as of September 30, 2020 2019 2020 Incl. €11.8bn of cash Cost of gross debt 2.70% 2.41% Leverage ratios Rating revi
Slide 28: COI by business line and geography
[€M] Client Solutions Networks Renewables Thermal Nuclear Supply Others(2) Total France 128 1,217 85 - - -21 - 1,409 Rest -14 35 59 216 -155 28 - 168 of Europe Latin America -3 274 467 283 - 37 - 1,058 USA & Canada 7 1 66 28 - -36 1 67 Middle East, 21 - 56 353 - -34 - 397 Asia & Africa Others -108 -
Slide 29: Estimated Covid-19 and French temperature impacts on COI
[€M] Estimated impacts of Covid-19(1) and French -€841M organic Temperature(2) on COI by Business Line of which estimated Covid-19 impact of ~-€994M and -€187M temperature effect in France 3,818 French [€bn] Covid-19 (226) temperature(2) Scope / Client Solutions (0.53) - FX (556) Networks (0.05) (0.
Slide 30: Nuclear and Hydro outright hedges
Nuclear and Hydro Outright hedges: volumes & prices [% and €/MWh] 100% 95% 70% 41% 21% 46 47 46 42 36 2019 2020 2021 2022 2023 As of 09/30/20 Belgium and France (+ Germany until April 2019) 30 November 13th 2020
Slide 31: Forward-Looking statements
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 expectations
Slide 32: Ticker: ENGI
Ticker: ENGI +33 1 44 22 66 29 ir@engie.com https://www.engie.com/en/finance-area FOR MORE INFORMATION ABOUT 9M 2020 RESULTS: https://www.engie.com/en/finance/results/2020 32 November 13th 2020