ENGIE Energia Perú Corporate Presentation September 2018
ENGIE Energia Perú
Corporate PresentationSeptember 2018
AGENDA
2ENGIE Energía Perú - Corporate Presentation / September 2018
ENGIE Energia Peru overview
Capital structure
Energy Market update
Appendix
ENGIE ENERGIA PERU OVERVIEW
ENGIE Energía Perú - Corporate Presentation / September 2018 3
ENGIE61.8%
AFP´s (Peruvian pension funds)32.7%
Others5.5%
Shareholders
%
Largest private electricity generation company in Peru
2,497 MW of installed capacity & ~7,600 GWh of annual
generation
Diversified & decentralized portfolio of generation
sources
21 years operating in the country & listed since 2005
502 employees
Diversified and solid client portfolio
Strong financials to support ambitions, AAA local rating
Sponsored by a global leader, ENGIE S.A.*
* www.engie.com
SPONSORED BY A GLOBAL PLAYER: ENGIE S.A.
4ENGIE Energía Perú - Corporate Presentation / September 2018
World leading independent
power producer
103 GW(1) installed
~90% low CO2
26% renewables(2)
European leader in gas
infrastructures
€27bn(3) regulated asset
base in France
12bn m3 storage capacity
Expertise in power
transmission & distribution
LOW CO2 POWER
GENERATIONCUSTOMER
SOLUTIONS
Capacity breakdown EBITDA gas infrastructures EBITDA by type of business
GLOBAL
NETWORKS
24m customers in Europe
Global leader in energy
solutions for cities
23m individual and
professional contracts
+250 distribution heating &
cooling networks worldwide
B2B: Business to Business
B2T: Business to Territories
B2C: Business to Customers(1) At 31/12/2017, at 100% (3) Incl. Storengy in France, regulated as from 01/01/2018(2) Incl. pumped storage for hydro (3%) (4) 2017 EBITDA
89% low CO2
Natural gas
Renewables(2)
Nuclear
Coal
Other
5%
7%
6%
26%
56%
103 GW(1)
France
Other EU & International
0.4
3.4€3.8bn(4)
0.7
0.5
1.1€2.3bn(4)
B2B B2T B2C
KEY MESSAGES
ENGIE Energía Perú - Corporate Presentation / September 2018 5
Solid results in a volatile context
Value proposition for our clients and portfolio optimization
Solid financial discipline and capital structure
Dynamic commercial strategy in a changing environment
HIGHLIGHTS 2017 – H1 2018
ENGIE Energía Perú - Corporate Presentation / September 2018 6
- At the end of 2017, total debt reached
837MUSD, decreasing 17% with respect to
2016. At the end of H1 2018 total debt
decreased to 787MUSD
- Bond issuance in local capital market for
~70MUSD @ 10 years at an attractive rate
below 4.9%
- 5.5 year Corporate Loan with Scotiabank
for up to 150MUSD @3.3%
- Net debt / EBITDA (12m): 2.5x @
Dec/2017; 2.9x @ Jun/2018
Awards/
Recognition
- ENGIE’s outstanding environmental,
social and governance practices were
once more recognized. EEP was
appointed by Capital Finance International
as The Best ESG Power Producer in
Peru in 2017 for a 2nd year in a row
- In July, because of its recognized
standards of transparency and corporate
governance, ENGIE entered the BVL
Good Corporate Governance Index
Industry &
regulation
- FY 2017 EBITDA reached 325.0MUSD
while Net Result totalized 129.7MUSD,
growing 5% and decreasing 1%
compared to FY 2016
- H1 2018 EBITDA reached 142.7MUSD,
increasing 29% compared to H2 2017
while Net result totalized 60.3MUSD
increasing significantly compared to H2
2017
- On March 31st EEP announced the
commercial operation of Intipampa solar
project (41 MW)
Our business
- Total energy generation (SEIN) grew
1.4% compared to 2016 and 2.9% in H1
2018 compared to H1 2017. As of June
2018, EEP maintained a leading position
in the sector as the first private player,
accounting for 20% of the total capacity
- Natural gas price declaration norm was
modified
Financial
discipline
SOLID RESULTS IN A VOLATILE CONTEXT
2017 – H1 2018 FINANCIAL RESULTS
7
Q2 2018 EBITDA stable vs Q1 2018 consolidating the commercial efforts taken during H2 2017
Q2 2018 EBITDA decreased -33% compared to Q2 2017 to 71MUSD, mainly explained by the end of SPCC PPA (April 2017)
which was partially offset by new PPAs. Q2 2018 Net result was affected by lower EBITDA and higher D&A compared to Q2
2017
However EBITDA H1 2018 presents a pick up of 29% vs H2 2017 mainly explained by commercial efforts / clients demand
Total debt decreased by 1.5% from March 2018, following the expected amortization schedule, and totalized 787MUSD
ENGIE Energía Perú - Corporate Presentation / September 2018
* Restatement by application of IFRS
** Does not include commercial penalty fees and impairment of assets
(MUSD) Q2 2018 Q1 2018 Q2 2017∆ Q2 2018
vs Q2 2017H1 2018 H2 2017 H1 2017
∆ H1 2018
vs H1 2017FY 2017 FY 2016 ∆ FY
Revenues* 127 132 147 -13% 259 253 319 -19% 576 641 -10%
EBITDA 71 71 106 -33% 143 111 214 -33% 325 309 5%
Net Result 30 30 55 -45% 60 20 110 -45% 130 132 -1%
Recurrent EBITDA** 71 71 106 -33% 143 113 186 -23% 298 330 -10%
Net Recurrent Result** 30 30 55 -45% 60 22 90 -33% 111 169 -35%
Total Debt 787 799 951 -17% 787 837 951 -17% 837 1,009 -17%
Net Debt 729 763 872 -16% 729 800 872 -16% 800 981 -18%
Net Generation GWh 847 740 1,699 -50% 1,588 4,087 3,536 -55% 7,624 7,914 -4%
Clients Demand GWh 2,155 2,116 2,196 -2% 4,271 3,822 4,536 -6% 8,358 8,976 -7%
Net Debt / EBITDA 12m 2.9 2.6 2.6 12% 2.9 2.5 2.6 12% 2.5 3.2 -22%
8
EBITDA BREAKDOWN
ENGIE Energía Perú - Corporate Presentation / September 2018
4881
41 43
69
68
33 38
192148
37
62
28
2016 2017 H2 2017 H1 2018
+69%
-1%
-23%
Market risk -
Market risk +
Investment agreements with Government
Capacity income
Market margin 50%
50%
HIGHER PROPORTION OF INCOME WITH LOWER RISK BUT MANTAINING UPSIDES
309325
5%
EBITDAIn US$ millions
Market risk -
Market risk +
43%
57%
111
143
26%
+5%
+13%
+68%
ENGIE Energía Perú - Corporate Presentation / September 2018 9
Low Co2 generation base
Largest private electricity company
Diversified & decentralized asset base across 4 regions
#1
282 km of transmission lines + 1 substation
Natural Gas; 963;
39%
Hydro; 248; 10%
Dual fuel; 1110; 44%
Coal; 135; 5%
Solar; 41; 2%
2,497MWChilca Complex
• ChilcaUno - 852MW - Natural Gas
• ChilcaDos - 111MW- Natural Gas
Ilo Complex
Nodo - 610MW - Dual Fuel
Ilo31 (Cold Reserve) -
500MW - Dual Fuel
Ilo21 - 135MW - Coal
Intipampa
Solar 41MW
Yuncan
Hydro 136MW
Quitaracsa
Hydro 112MW
LEADING PLAYER WITH STRONG PORTFOLIO OF ASSETS
Value added customer solutions
CONSISTENT COMMERCIAL STRATEGY
ENGIE Energía Perú - Corporate Presentation / September 2018 10
Our portfolio &
contracts
+ 380 MW1 new contracts in 2017
+ 57 MW1 new contracts in 2018
Number of clients grew from 45 (2016) to 78 (2018)
Marcobre (84MW), Distriluz (30MW), Grupo Nexa (62MW),
Quellaveco (35MW)
Main
commercial
pillars
1. Value quality and new services
2. Relationship plan with clients and
new projects
3. Internal reorganization to respond
quickly to market
4. Continuous communication with
authorities, market and media
+70%
AGRESSIVE COMPETITORS
The marketSLOW GROWING DEMAND
REGULATORY
UNCERTAINTY
FOCUS ON MANTAINING OUR EFFICIENT PORTFOLIO CONTRACTED
1- Includes new contracts with free clients and existing expansions
GROWTH POTENTIAL+
-
10
20
30
40
50
60
70
80
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18
Increasing number of clients
ENGIE Energía Perú - Corporate Presentation / September 2018 11
Limited spot market risk
• Fully contracted capacity for next 2 years
and 91% on average for 2020-2021
• Average active PPA life of 5.4 years, new
PPAs to start in 2019 and 2020
• Most of EEP´s contracts do not include
termination clauses
Strong credit profile
• +50% of portfolio investment grade clients
& +70% above BB- (Or local equivalent)
in terms of sales
Low commodity risk
• Indexation ~60% of portfolio to Natural
Gas prices in line with generation costs
Main commercial pillars
• Value quality and new services
• Relationship plan with clients and new
projects
• Internal reorganization to respond quickly
to market
• Continuous communication with
authorities, market and media
51%49%
Balanced portfolio
Regulated Free clients
Diversification
PORTFOLIO APPROACHResilience in face of unfavorable market conditions
AGENDA
12ENGIE Energía Perú - Corporate Presentation / September 2018
ENGIE Energia Peru overview
Capital structure
Energy Market update
Appendix
787 MUSD
By Currency By Source
SOLID FINANCIAL DISCIPLINEOPTIMIZING COSTS, DIVERSIFYING FINANCIAL SOURCES & LIMITING RISKS
ENGIE Energía Perú - Corporate Presentation / September 2018 13
Net debt / EBITDA
2.79x 2.79x 2.76x3.18x
2.80x2.56x 2.42x 2.46x 2.64x
2.88x
919 926 898 981 904 872 792 800 763 729
330 332 326 309 323 341 327 325 288 253
0
0
0
0
0
0
0
0
0
0
-
1
2
3
4
5
6
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18
Net Debt/EBITDA Net Debt EBITDA LTM
Debt Breakdown - As of June 2018
64%36%
47%
38%
16%
Credit Rating – September 2018
AAA.pe
Stable25/05/2018
AAA.pe
Stable28/05/2018
Local capital market as an important partner
• First bond program started in 2007 currently ~48MUSD
outstanding
• Third program for up to 500MUSD started in 2015:
• 2016 → 1st issuance of 250MPEN @ 7.125% (10 yr)
• 2017 → 2nd issuance of 79MPEN @ 6.0% (7 yr)
• 2017 → 3rd issuance of 250MPEN @ 6.53% (10 yr)
• 2018 → 3rd issuance of 230MPEN @ 6.718% (10 yr)
• 2016-2018 issuances ~2x times over subscripted
SUCCESSFUL FINANCIAL PLAN EXECUTION IN A
HIGHLY VOLATILE ENVIRONMENT
ENGIE Energía Perú - Corporate Presentation / September 2018 14
• Total debt reached 787MUSD as of June 2018, decreasing 6.0% from December 2017 (837MUSD), following expected
amortization schedule
• In 2017 – 2018 EEP successfully closed financial conditions for up to 320MUSD for an average fixed cost of
3.67% and average life of 7 years,
• 100MUSD in local capital markets ( 7 – 10 year bonds) @ average cost of 3.4%, 100% disbursed
• 150MUSD through a 5.5 year Corporate Loan @ average cost of 3.25%
• 70MUSD in local capital markets (10 year bonds) @ average cost of 4.9%, 100% disbursed
Through the 2017/2018 financial plan execution EEP was able to achieve important gains by
following its financial priorities:
1. Optimize cost, reducing average long term cost from 4.8% in 2017 to 4.3% in H1 2018
2. Improve debt structure, increasing debt duration from 2.8 years to nearly 4 years in 2018
3. Eliminate interest rate/refinancing risk
4. Maintain flexibility to continue looking for costs optimizations and investment opportunities
DEBT PROFILE IMPROVEMENT IN THE LAST 18 MONTHS
ENGIE Energía Perú - Corporate Presentation / September 2018 15
Today (June 2018)
One year ago (March 2017)
158 152
90 80
1 - - - - - - -
30
15
25 -
10
50
50
-
76
-
50
100
150
200
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Financial leases Bonds 1rst P
Corporate loans Bonds 3rd P
MUSD
MUSD
Avg. LT cost of debt of 4.8%
@ ~2.8yr duration
Avg. LT cost of debt of 4.3%
@ ~4yr duration
72
123 90 80
1 - - - - - - -
-
-
--
- -24
-
76 77 70
- -
50 50
25-
-
13
25
10
-
50
100
150
200
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Financial leases Bonds 3rd Program New Corporate loan
Intipampa Bonds 1rst Program2
AGENDA
16ENGIE Energía Perú - Corporate Presentation / September 2018
ENGIE Energia Peru overview
Capital structure
Energy Market update
Appendix
ENGIE Energía Perú - Corporate Presentation / September 2018 17
MARKET UPDATE (1/3)
6,746 7,620
8,340 9,248
10,150
12,774 12,848 13,535 13,874 14,095 14,208 14,208
4,961 5,291 5,575 5,737 6,332 6,492
6,888 7,370
7,868 8,453
8,933 9,393
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Installed Capacity (MW) Maximum Demand (SEIN)
COES Forecast
Source: COES
By 2022, the Reserve Margin back to 2013 levels
Reserve Margin
36%
44%50%
61% 60%
97% 87%
84%
51%
76% 67%59%
ENGIE Energía Perú - Corporate Presentation / September 2018 18
MARKET UPDATE (2/3)
Natural Gas
• Gas price declaration from July 2018 to June 2019 with a minimum gas price being the
variable price of the gas supply (other than the take or pay which is a fixed cost). From July
2019 to June 2022 new minimum price to be declared will be the molecule price (MINEM
proposal)
• On Gaseoducto del Sur, 3 options are being studied by MINEM, in order to bring
natural gas efficiently to the South of the country
• Non-conventional (NC) Renewable Energy expected to generate 15% of energy by 2030
• MINEM working on a proposal in order to make NC Renewable Energy more
competitive. Proposal expected to be ready end 2018
• Main topics to be solved include (but are not limited to): (i) recognition of firm power , (ii)
participation on any of the tenders for regulated clients, (iii) operational preference
• MINEM pre-published a draft of the Regulation for Distributed Generation for comments
(Ley N˚28832 for Medium Generation and Decreto Legislativo N˚ 1221 for Micro Generation)
• Key topics include (but are not limited to): (i) power bands, (ii) pricing includes or not
payment for the existing network, (iii) participants
Natural Gas
Non-conventional
Renewable Energy
Distributed
Generation
ENGIE Energía Perú - Corporate Presentation / September 2018 19
MARKET UPDATE (3/3)
Natural Gas
• In 2015, regulated clients with demand over 0.2MW and less than 2.5MW represented 33%
of the maximum regulated demand (1240MW of 3750MW)
• In 2018, 930MW of those regulated clients converted to Free clients
• Distribution companies are over contracted (around 780MW) until December 2021
• MINEM has published a “Decreto Supremo” that authorizes the modification of the long
term contracts with the Distribution companies
• 3 items can be modified: (i) life of contracts, (ii) contracted power, and/or (iii)
discount to take or pay prices
• Addendums can be subscribed until 31st December 2018
Distribution
• “Mercado Mayorista de Electricidad” i.e. free clients could buy 10% of their capacity
demand in the spot market
• Requisites for the Free Clients include to have an independent supply and give
guarantees to the COES
• Up to now, no client has made the necessary investment to participate
in the spot market and assume price volatility
Spot market
AGENDA
20ENGIE Energía Perú - Corporate Presentation / September 2018
ENGIE Energia Peru overview
Capital structure
Appendix
ENGIE S.A. LEADING THE ENERGY REVOLUTION
THROUGH 3 PILLARS
ENGIE Energía Perú - Corporate Presentation / September 2018 21
ENERGY
REVOLUTION &
MEGA TRENDSCustomer
Centricity
Environmental
awarenessEnergy efficiency
DigitalizationNew
technologies
3 pillars
DECARBONIZATION
Worldwide renewable
energies: annual
additional capacity to
grow by +70% in 2030
vs 2015
DECENTRALIZATION
Decentralized
solutions to more
than double by 2030
DIGITALIZATION
Digital changes
energy systems and
improves customer
offers
Generation12,848 MW
Total Capacity
ENERGY SYSTEMComposed by three different sectors
ENGIE Energía Perú - Corporate Presentation / September 2018 22
Transmission27,358 km
Basic transmission
Distribution7.1 million clients
Energy Sales44,500 GWh
87% Private
Free market – market
prices
Two type of clients:
Free clients: Mainly
mining and industry.
Consumption > 0.2
MW. Private auctions
Regulated Distribution
companies. Public
auctions
100% Private
Exclusive concession
Regulated tariff
Open Access
Main players: ISA
(56%), Abengoa (11%)
& Red Electrica (3%)
38% Private
Exclusive concession
Two type of clients:
Free clients:
Industries with
consumption below
2.5 MW.
Households and
industries with
demand below
0.2MW
Main players:
Government (62%), Enel
disco (20%) & Luz de
Sur (15%)
37
24
21
18
Mining and smelting
Industry
Residential
Commercial
* Figures full year 2017
ENERGY GENERATION MARKETAn energy matrix with strong natural gas and hydro components
ENGIE Energía Perú - Corporate Presentation / September 2018 23
• Main regulated clients are
Enel Distribución and Luz
del Sur (Distribution
companies in Lima)
• Main free clients are
Mining and industrial
companies
• Clients with a consumption
above 0.2MW are able to
contract directly with
generation companies
(free clients)
• Natural Gas generation is
concentrated in Chilca
district (60km from Lima)
• Diesel plants dispatch in
case of emergency and
transmission congestion
• Market share as of
December in terms of
energy generation
• Others include: Colbun, I
Squared, Statkraft,
Termochilca, among
others
Clients Generation matrix Market shareMarket
Installed capacity
12,848 MW
Peak demand
6,888 MW
Annual energy
Generation
48,993 GWh
+1%
+2%
-1%
57%
3%
37%
3%
Hydro
Non Conventional Renewables
Natural Gas
Coal & diesel
16%
22%
16%13%
34%
ENGIE Government
Enel Generación IC Power
Others
45%
55%
Regulated Clients Free Clients
* Figures full year 2017
BUSINESS MODELS IN ENERGY GENERATION
ENGIE Energía Perú - Corporate Presentation / September 2018 24
• Investments are repaid by long term commercial
contracts (PPAs). Private auctions & negotiations
• Commercial margin & Producer margin
• Capacity (fixed fee) and energy (variable charges) charges
• Contractual and physical position determines “buyer” or
“seller” position in spot market
Hydro investment cost is higher than
natural gas thermoelectric investment
and operational cost
Given hydrological seasonality, hydro
power plants are normally net sellers in
the spot market during wet season
• Government auctions every 2-3 years. Lower tariff projects
are awarded
• The project commits to generate a certain amount of energy
per year and receives a fixed tariff ($/MWh) for ~20 years
• Electricity consumers are charged an additional fee in their
electricity bill (charge is the difference between the
auctioned tariff and the spot prices)
• Geographic diversification of natural gas generation
• Public auctions for dual fuel (Natural gas / diesel plants)
• Projects are available for the national system and receive an
annuity for ~20 years
• Electricity consumers are charged an additional fee in their
electricity bill
After the privatization of the sector in the 90´s, the government developed different mechanisms to increase energy
generation sources looking for i) hydro and natural gas power balance, ii) diversification of non conventional
renewable sources, iii) geographic diversification of natural gas thermoelectric generation and iv) increase reserve for
emergencies
Cold reserves & Nodos
Non Conventional RenewablesTraditional model
Hydro
MAIN REGULATION FRAMEWORK
ENGIE Energía Perú - Corporate Presentation / September 2018 25
• Centralized generation
• 2 markets: PPA market and the spot market
• PPA market
• Private negotiations or private / public auctions
• Protection against short term volatility
• Spot market (physical exchange)
• Goal of the dispatch system is to minimize total cost for the system
• Marginal cost or spot price is the result of the system optimization and reflects
the variable cost to generate an additional unit of electricity at a given time
• Spot settlement between generators (sellers and buyers depending on
contractual positions)
• Natural Gas generators declare variable cost to optimize its fixed cost structure
Generators
Distribution
companies
Free clients
SEIN
Generators
Free clients
Interconnected
Energy
System
MARGINAL COST RESULTING FROM SETTING UP
DISPATCH ORDER
ENGIE Energía Perú - Corporate Presentation / September 2018 26
Jun-1
8
ENERGY PRICE SEIN (USD/MWH)
ENGIE Energía Perú - Corporate Presentation / September 2018 27
0
10
20
30
40
50
60
70
Ene-0
9
Abr-
09
Jul-0
9
Oct-
09
Ene-1
0
Abr-
10
Jul-1
0
Oct-
10
Ene-1
1
Abr-
11
Jul-1
1
Oct-
11
Ene-1
2
Abr-
12
Jul-1
2
Oct-
12
Ene-1
3
Abr-
13
Jul-1
3
Oct-
13
Ene-1
4
Abr-
14
Jul-1
4
Oct-
14
Ene-1
5
Abr-
15
Jul-1
5
Oct-
15
Ene-1
6
Abr-
16
Jul-1
6
Oct-
16
Ene-1
7
Abr-
17
Jul-1
7
Oct-
17
Ene-1
8
Abr-
18
Jul-1
8
Marginal Cost Free Client Regulated Client
USD/MWh
Note: Monthly average prices
Source: COES
NATURAL GAS MEDIUM TERM UPSIDES
ENGIE Energía Perú - Corporate Presentation / September 2018 28
A. Phase 1: up to 1,110MW of installed capacity serving as emergency plants but able to generate with
natural gas once available in the south of Peru
Cold Reserve: option granted under the
existing concession contract after 2018
Nodo Energético: once Natural Gas arrives
to the South
Similar operation to Chilca 1 plant before it
was converted to Combined Cycle
No significant investments required
Similar operation and economic impact of Chilca 1 Combined Cycle
Project
Approximately 700MUSD additional investments to convert to
combined cycle and 48 months for development and construction
B. Phase 2: up to an additional 550MW in steam
turbines with the conversion to Combined Cycle
Delays in the GSP postpone these options and potential upsides
Yuncan +134MW
2004 2007 2010 2013 2016 2019
PROVEN TRACK RECORD IN DRIVING ORGANIC
GROWTH
ENGIE Energía Perú - Corporate Presentation / September 2018 29
Nodo Ilo &
Chilca Dos
+723MW
Total Capacity MW 374 868 1,068 1,860 2,665 2,456 2,497
EBITDA MUSD 80 84 163 270 309 325 253*
Market Cap MUSD - 645 1,600 2,005 1,611 1,351 1,205
374
MW
Hydro
Natural Gas
Dual Fuel
SolarChilca 1 +854MW
Ilo 31
+500MW
Quitaracsa
+112MW
Intipampa
+41MW
2,497
MW
AVERAGE
GROWTH
16%
More than 3x capacity in 10 years
Investments for 1.6 BnUSD in 2010 - 2018
2017
Ilo 1
‐105MW
2018
* EBITDA last 12 months
FIRST STEP IN NON CONVENTIONAL RENEWABLESIntipampa Solar Power Plant
ENGIE Energía Perú - Corporate Presentation / September 2018 30
INTIPAMPA - Key facts
• Location the project is located in the south of Peru,
Moquegua
• Description: The project will deliver 108.404 GWh/year to
the system
• Economics: the project is backed by a 20 year Investment
Agreement with Ministry of Energy and Mines @48.5$/MWh
until 2038 (approx. 20-21 years)
• Investment: ~50MUSD below initial estimate of 55MUSD
In 2016, ENGIE Energía Perú was awarded as part of the 4th Renewables Auction process
the construction of a 40.5 MW solar plant, which will benefit 90,000 households and avoid
50,000t of CO2 / year
Intipampa project successfully entered
into operation on 31st March 2018
+182.0
+214.2 -28.0
+3.8 -58.5
+8.4 +2.6 +142.7
+110.8
EBITDA
H1 2016
EBITDA
H1 2017
EBITDA
H1 2018 EBITDA
H2 2017
EBITDA: H1 2018 VS. H1 2017 -71.6 MUSD
31ENGIE Energía Perú - Corporate Presentation / September 2018
- 33%
+ 29%
Marginal
cost
reduction
SPCC PPA
maturity
and end of
Las Bambas
by the end
of August
2017
Jetty contract
(mainly one
shot initial
payment) and
Services to
SPCC
2017 effect
‐28.0MUSD
mainly due to
commercial
penalty fee
Las Bambas
Impact of the end of PPA’s in H1 2017 partially offset by commercial effort driving
H1 2018
By effectIn US$ millions
DEBT EVOLUTION
ENGIE Energía Perú - Corporate Presentation / September 2018 32
389
654716
808
956 1,009
837787
-
200
400
600
800
1,000
1,200
2011 2012 2013 2014 2015 2016 2017 June 2018
MU
SD
Total Debt
• EEP started an aggressive expansion plan in 2011. Total investments of 1.6 BnUSD between 2011
and 2018 for the execution of 6 projects adding 1,657MW
• After Nodo Energetico and Chilca2 projects COD in 2016 and Intipampa projects COD in 2018, Engie
Energía Peru´s debt reached its maximum historical level
• Since 2017 EEP´s debt is decreasing consistently to have flexibility for future opportunities
DIVIDEND PAYMENTS: 680 MUSD SINCE 2004
ENGIE Energía Perú - Corporate Presentation / September 2018 33
Dividend Policy: Minimum payout ratio of 30%
Payout ratio
of 38% in
2017
32
42
28
13 12.4 1520 20 24 31 33
24
43
31
11 13 16
1822
30
9 6
34 3642
41
15
10 10
34
77
42
71
85
59
24 25.4
31
38
42
54
49 49
86%
193%
100%
113%
90%89%
30% 30%31%
30% 31% 30%
38% 38%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
0
10
20
30
40
50
60
70
80
90
100
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Extraordinary Annual
2nd Half 1rst Half
Payout ratio
OUR ORGANIZATION, GOVERNANCE & ETHICS
ENGIE Energía Perú - Corporate Presentation / September 2018 34
Acting in accordance with an internal
set of values based on honesty,
integrity and respect to human rights…
Ethics Chapter that guides our relationship
with clients, suppliers, partners and
Government among our main stakeholders
Practical approach
1. Annual training plan to all employees
2. Practical Guide to Ethics
3. Control systems
4. Anonymous ethical complaints
channel
Independent Ethics Officer, appointed by
the board of directors
Shareholders
assembly
Board of
directors
CEO
Audit
Committee
Transactions
between
affiliates
Committee
Executive
Operations
Regulatory
Commercial
Development
Construction
Risk & Finance
Ethics
COO CFO Commercial
DevelopmentCorporate
AffairsLegal
Committees & Task
forces
Internal Auditor
The Board of Directors includes three independent members out of a total of 7 directors
HR
THANKS
35
This presentation September contain certain forward-looking statements and information relating to ENGIE Energía Perú S.A. (“Engie Energía Perú” or the
“Company”) that reflect the current views and/or expectations of the Company and its management with respect to its business plan. Forward-looking
statements include, without limitation, any statement that September predict, forecast, indicate or imply future results, performance or achievements, and
September contain words like “believe”, “anticipate”, “expect”, “envisage”, “will likely result”, or any other words or phrases of similar meaning. Such
statements are subject to a number of significant risks, uncertainties and assumptions. We caution that a number of important factors could cause actual
results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In any event, neither the Company
nor any of its affiliates, directors, officers, agents or employees shall be liable before any third party (including investors) for any investment or business
decision made or action taken in reliance on the information and statements contained in this presentation or for any consequential, special or similar
damages. The Company does not intend to provide eventual holders of the notes with any revised forward-looking statements of analysis of the differences
between any forward-looking statements and actual results. There can be no assurance that the estimates or the underlying assumptions will be realized and
that actual results of operations or future events will not be materially different from such estimates.
This presentation and its contents are proprietary information and September not be reproduced or otherwise disseminated in whole or in part without ENGIE
Energía Perú prior written consent.
FOR MORE INFORMATION ABOUT ENGIE ENERGIA PERU
Ticker: ENGIEC1
+51 1 616 79 79 [email protected]
Adriana Burneo, Head of Corporate Finance & Investor Relations – [email protected]
Marcelo Soares, Chief Financial Officer – [email protected]
Av. República de Panamá 3490, Lima 27, Peru www.engie.pe
ENGIE Energía Perú - Corporate Presentation / September 2018