A Global Energy Player
May 2015
7%
26%
Strong leadership positions
GAS
POWER
• #1 Independent Power
Producer (IPP) in the world:
#1 in the Gulf States, in Brazil
and in Thailand, #2 in Peru,
#3 in Chile
• Generation: #1 in Belgium,
in France: #1 in wind and
#2 in hydro
• Power production capacity(1) :
115 GW installed,
~60% outside Europe
10 GW under construction,
~95% in fast growing markets
SERVICES
(1)
(2)
(3)
(4)
(5)
(6)
2014 Key Figures
• #1 LNG importer in Europe,
#3 largest LNG supply portfolio
worldwide
In €bn
2014
• #3 seller of natural gas in Europe
REVENUES
74.7
• #1 distribution, #2 transmission
network in Europe
EBITDA
12.1
• #2 LNG terminal operator
in Europe
• #1 in storage capacity in Europe
• #1 supplier of B2B energy
efficiency services in the world
#1 in France, Belgium,
Netherlands, Italy
• 230 urban heating and cooling
networks operated worldwide
• ~100,000 employees worldwide
NET RECURRING INCOME
GROUP SHARE(2)
3.1
CFFO(3)
7.9
NETCAPEX(4)
3.9
€1/share
DIVIDEND(5)
2.3x
NET DEBT / EBITDA
A / A1
RATING(6)
Operations in ~70 countries
152,900 employees
At 100% as of 12/31/2014
Excluding restructuring costs, MtM, impairment, disposals, other non recurring items and associated tax impact and nuclear contribution in Belgium
Cash Flow From Operations (CFFO) = Free Cash Flow before Maintenance Capex
Net Capex = gross Capex - disposals; (cash and net debt scope)
Including interim dividend of €0.50/share paid in October 2014
S&P / Moody’s LT ratings with stable outlook
2
2
7%
Well balanced business model with global reach
ENERGY INTERNATIONAL
9%
Energy Services
30%
Energy
International
2014
EBITDA
€12.1bn(1)
26%
Infrastructures
18%
Global Gas
& LNG
(1)
•
•
•
•
Power generation
Sale of natural gas and power
Gas and LNG infrastructures
5 business areas: Latin America, North America, UK &
Turkey, SAMEA (South Asia, Middle East & Africa) and
Asia-Pacific
ENERGY EUROPE
16%
Energy
Europe
Including Others: €-224m
•
•
•
Power generation
Sale of natural gas and power
Energy management (gas supply, asset
optimization, risk management) and trading
GLOBAL GAS & LNG
•
•
Exploration & production
LNG portfolio management
ENERGY SERVICES
•
•
•
Engineering
GAS INFRASTRUCTURES
•
•
•
•
Installations (mechanical and electrical installation,
heating, ventilation, air-conditioning and systems
integration)
Services (maintenance, district cooling / heating
networks, facility management and services integration)
Regulated activities:
•
Natural gas transmission networks
Gas distribution network in France
LNG terminals in France
Storage activities in and outside France
3
3
Strategy of a global energy player
Be the benchmark
energy player
in fast growing markets
Be leader
in the energy transition
in Europe
•
•
Leverage on strong positions in IPP
•
Grow energy services leadership
positions internationally
•
Be the Energy Partner of choice for our
customers while promoting energy efficiency
•
Be a vector of decarbonization
through renewable energy
•
New businesses / digitalization
Develop our presence around
the gas value chain
Strong ambition to create value
from the worldwide energy transition
4
Major successes fueling future growth



West Coast Energy acquisition
Cofely UK signs £300m IFM contract
Official opening of the Stublach gas storage facility







2 offshore wind farms (2x500MW)
Solar >100MW installed & 10 projects awarded
1000th LNG truck loading in Europe
Partnership with RATP to develop biogas buses
Rotterdam thermal plant





RES capacity

Ecova
acquisition

Lahmeyer acquisition
Facility management framework agreement with Alstom
H.G.S GmbH acquisition
Wilhelmshaven thermal plant

Award of “sustainable city simulator”
project Astainable® for Astana city

1st long term LNG sales to Japan


Major cooperation agreement
with Beijing Enterprise Group
Major cooperation MOU with Shenergy
CCHP project in Sichuan

1st long term LNG sales to Taiwan


SMP Pte Ltd acquisition
Keppel FMO acquisition

Feasibility study for LNG terminal
Cameron LNG


Ramones II

Trairi wind farm
Jirau 24 turbines
535 MW in New Energy
Auction





Tarfaya
wind farm
Safi power
project




Onshore LNG
storage tank
Thermal power
plant
TEN transmission
line
Chartering of world’s
largest FSRU
Uch II
gas plant
MoU with Turkish government




Power(1)
Gas & LNG
Services
1st production from Amstel, H North & Gudrun fields (North Sea)
LNG Bunkering
Kathu concentrated
solar project

IPO of
Barka 3/Sohar 2
Mirfa PWPA signing
(1) Power capacity
figures at 100%
Acquisition of a stake in
a facility management company
4.3 GW capacity commissioned in 2014
10.5 GW under construction including 4.4 GW of projects added in 2014
5
Building on good quality assets portfolio
Leadership positions in POWER
with largely contracted portfolio
7%
21%
12%
13 GW
43%
24%
77%
1%
SAMEA
NORTH AMERICA
LATIN AMERICA
15%
14 GW
85%
in fast growing markets(1)
~80% low CO2
48 GW
16%
>90% low CO2
~90% long-term contracted
EUROPE
38%
ASIA-PACIFIC
26 GW
12 GW
62%
Gas
Renewables(2)
Nuclear
Other
Power capacity by status:
Long-term contracted
99%
Short-term/uncontracted
Installed capacity at 100% as of 12/31/2014
Resilient contribution from ENERGY SERVICES
in tough economic environment
15 000
14 800
14 600
14 400
14 200
14 000
13 800
13 600
13 400
13 200
13 000
12 800
12 600
12 400
12 200
12 000
in €bn
14.7
14.7
1.0
1.0
14.0
1.0
Revenues
15.7
EBITDA
EBIT
1.1
0.6
0.7
0.7
0.8
2008
2012
2013
2014
5.0%
EBIT
margin
Diversified portfolio along the GAS value chain
• Highly diversified supply and sales portfolio
 ~1,300 TWh managed yearly
 16 mtpa LNG portfolio
 759 mboe 2P reserves (75% gas, 25% oil & liquids)
 Balanced sales portfolio
•
Strong positions in gas infrastructures
 €23bn RAB in France (distribution, transmission,
LNG terminals), 4-year period tariffs
 14 bcm of storage capacity in Europe
(1) Long-term contracted: portion of operational capacity contracted for more than 3 years; based on capacity at 100% as of 12/31/2014 (2) including pumped storage
6
6
Resilient business portfolio
Strong & increasing share of regulated / contracted activities
CONTRACTED/REGULATED
MERCHANT/UPSTREAM
Infrastructures with guaranteed returns
Power generation
in Continental Europe, UK,
North America, Australia
E&P
Gas storage in France (minimal contribution)
and LT contracts in Germany
~45%
LNG
Flexible fleet of tankers
Gas storage in France
(merchant capacity)
EBITDA
2014
~55%
Z
Progressive
hedging
Power generation
in Latin America (PPA contracts in Brazil,
contracted power price indexed to inflation),
SAMEA, Asia
LNG: Medium term sales agreements
with major Asian players
Services: Public Private Partnerships
and long contract durations
Merchant activities
Regulated/contracted activities
7
7
Strong balance sheet actively optimized
ACTIVE LIABILITY MANAGEMENT
• Early refinancing of €5bn revolving
credit facility
A well spread-out corporate bonds maturity profile
in €bn
3 000 000 0003
Average bonds redemption (2015-25) €1.7bn per year
• Largest corporate green bond of €2.5bn
at an historic low coupon at 1.9% 2 000 000 0002
• New hybrid bond issue for €2bn
strengthening the balance sheet
at a very low coupon of 3.4%
1 000 000 0001
- 0
2015
• Buy-back of €1.9bn of debt
with an average coupon of 3.8%
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026 ≥2027
Average net debt maturity 9.1 years
CONTINUOUS DECREASE IN COST OF GROSS DEBT
Net debt/EBITDA ≤ 2.5x
Sound balance sheet structure
in €bn
40
2.5
30
2.2
2.3
36.6
5
28.8
4.18%
3.40%
20
27.5
4
3.14%
10
Dec 12 (1)
Dec 14
3,5
3
0
Dec 13
4,5
2,5
Dec 12(1)
Dec 13
Net debt
Dec 14
Cost of gross debt
(1) Proforma equity consolidation of SUEZ Environnement but excluding impact of IFRS 10/11
8
Perform: NRIgs target achieved one year in advance
PERFORM CONTRIBUTIONS
in €bn
EBITDA (gross)
Cumulated
2012-2014
2.0
2.6 OPEX
Others 0.6
CUMULATIVE IMPACT ON NRIgs
0.9
OPEX 0.7
Others 0.2
(1.3)
(0.2)
EBITDA (net, estimated)
1.3
0.7
Below EBITDA
0.2
0.9
1.5
Obj. 2015
achieved
Fixed cost drift
Estimated NRIgs
Capex and WCR optimization
€0.9bn reached at end 2014
(vs initial target end 2015)
2014
0.4
Obj. 2015
achieved
>€1bn
~€0.9bn
~€0.5bn
€0.1bn
2012
2013
The success of Perform 2015 has created a sustainable and systematic
momentum for monitoring operational performance
Program status at end 2014
• OPEX target fully on track, while all remaining performance levers have achieved targets by 2014
• Significant achievements in 2014:
 Optimization of power generation assets in Europe
 Introduction of mobile technologies to optimize planning activities within Cofely Services
 Creation of the Direction for Shared Service Centers across all business lines
Additional levers in 2015
• Further focus on OPEX notably in Europe (staff and other costs) and Procurement
• Implementation of operational action plans developed in 2014 to drive performance and support
strategy implementation
2014
2015
Gross EBITDA
contribution 2014
ENERGY
SERVICES
INFRASTRUCTURES
CORPORATE
10% 11%
12%
GLOBAL
GAS
& LNG
9%
€0.9bn
43%
15%
ENERGY
INTERNATIONAL
ENERGY EUROPE
Beyond 2015
• Perform 2015 has created a framework for driving operational performance
9
Exposure to commodity price and quick reaction plan
EXPOSURE TO COMMODITY PRICE
EBITDA 2014 BY BUSINESS LINE
E&P
LNG Supply, Sales & Midstream
Power Merchant
GLOBAL
B3G
GAS & LNG
Non sensitive to commo
2.2
ENERGY
BEI
INTERNATIONAL
QUICK REACTION PLAN
ACTIONS ON OPEX
• Further actions on SG&A across the Group
3.7
• Detailed review & optimization of operating
costs (mainly in E&P and Energy Europe)
• Reinforce synergies between businesses
ENERGY
BEE
EUROPE
ENERGY
BES
SERVICES
INFRABI
STRUCTURES
2.0
EBITDA impact
+€0.25bn/year over 2015 & 2016
1.1
3.3
Progressive hedging of gas and power production
ACTIONS ON CAPEX
• Reduce E&P Capex
Capex cut of €0.4bn over 2015-16
IMPACT OF DROP IN OIL & GAS PRICE
IN 2015 VS 2014, TOTAL GROUP (in €bn)
NRIgs
(0.35)
EBITDA
(0.9)
• Adapt timing in M&A ambitions
Shift of M&A capex resulting in €1.6bn
savings over 2015-16
10
Cash equation preserved by the “Quick Reaction Plan”
CASH EQUATION 2014-16
AVERAGE ANNUAL AMOUNTS
CFFO
to increase over
2014-2016
Large net Capex
program
of €6-7bn
B/S optimization
offering flexibility
Net debt /
EBITDA ≤2.5x
B/S flexibility
incl. hybrid 2014 ~1.0
Disposals ~2-3
Sources
Uses
CFFO ~9.0
&
Quick Reaction Plan (P&L, CAPEX)
~6-7 Growth Capex
including M&A
2.5 Maintenance
Capex
0.15 Hybrids coupon
0.75 Dividends
to minorities
≥2.4 Dividends
Dividend policy:
payout ratio of 65-75% with a minimum of €1 per share
11
Capex program designed to seize growth opportunities
2014 growth CAPEX allocation
ENERGY INTERNATIONAL
ENERGY SERVICES
€0.5bn
•
Energy efficiency projects
( heating/cooling networks,
biomass…)
€1.1bn
13%
29%
€4.0bn
•
•
22% growth Capex
INFRASTRUCTURES
•
•
•
GRTgaz including Arc de
Dierrey (France)
GrDF (France)
Storage
ENERGY EUROPE
•
•
Renewable projects
…
€0.9bn
excluding M&A
in 2014
8%
•
•
•
•
•
27%
€1.1bn
€0.3bn
€0.6bn of M&A
including Ecova, Lahmeyer, Lend Lease UK
•
Tarfaya (Morocco)
Quitaracsa, Nodo energetico
(Peru)
Meenakshi (India)
Jirau, Trairi, Santa Monica,
Ferrari (Brazil)
Laja, GNLM (Chile)
Rantau Depap (Indonesia)
Los Ramones, Mayakan
(Mexico)
…
GLOBAL GAS & LNG
•
•
•
•
•
•
Cygnus & Juliet (UK)
Jangkrik (Indonesia)
Amstel, Orca (NL)
E&P in Norway, Germany
Touat (Algeria)
...
Over 2014-2016: ~€6-7bn/year of growth CAPEX including M&A(1)
Strict and selective approach: project IRR > project WACC + 200bps
(1) yearly average including the Quick Reaction Plan on Capex: Capex cut of €0.4bn over 2015-2016 shift of M&A Capex (€1.6bn saving over 2015-16)
12
Strong industrial ambition supported
by growth Capex pipeline
ENERGY SERVICES
•
Revenues organic growth = GDP growth +2%
•
Reach EBIT/Revenues ≥ 5% in 2016:
5% in 2014
•
Selective acquisitions in targeted markets:
Lahmeyer, Ecova, Keppel FMO
ENERGY INTERNATIONAL
Expected commissioning of additional capacity
in GW at 100% / in net ownership
11.9 / 4.8
10.1 / 4.0
7.6 / 2.9
2.4 / 1.1
2015
2016
≥ 2017
Capacity under construction at end 2014
•
GAS INFRASTRUCTURES
•
 +3.5%(1) steady growth of €23bn RAB (France)
•
Storage: to stabilize after low point in 2014
Including under
advanced
development (4)
Selective acquisitions: Meenakshi end 2013
GLOBAL GAS & LNG
E&P production
in mboe
 +15%
55.5
59-63
58
52
ENERGY EUROPE
•
•
(2)
≥2 GW RES capacity to be commissioned by 2017
1.5 GW end 2014
x2 by 2025 New target for Europe,
from 8 to16 GW (3)
2013
•
•
•
2014
2015
2016
 +25% LNG portfolio from 16mtpa (2013)
to 20mtpa (2020)
Increase LNG sales to premium markets
Potential selective acquisitions
(1) CAGR over 2013-2016
(2) Over 2011-2017 at 100%
(3) At 100% 8 GW installed end H1 2014 in Europe, excluding Energy Services business line
(4) Exclusive negotiations / preferred bidder or Investment Note approved by the Business Line Commitment Committee
13
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
ROCE
Projects with COD between 2011 and 2013
Total
Capital
employed
(€bn)
Weighted
average
2
15
4.5
15%
7
11
2.4
10%
4
1.3
27%
INFRASTRUCTURES
4
6.5
7%
ENERGY SERVICES
2
0.4
20%
36
15.1
12%
Thermal
Renewables
ENERGY INTERNATIONAL
13
ENERGY EUROPE
4
GLOBAL GAS & LNG
TOTAL
E&P
4
17
9
4
Mid-life ROCE
European merchant
9%
Regulated infrastructures
7%
Growth platforms
18%
14
Resilient medium term growth outlook despite drop in oil/gas price
Energy merchant
activities in Europe
LANDING OVER 2015-16
(5)
• Energy Europe
• UK-Turkey
• Gas storage
2015
2016
STEADY & PREDICTABLE CASH FLOWS
~3-4% CAGR
(5)
Drop in oil/gas price
109
2015
2016
• Distribution
• Transmission
• LNG terminals
67
2013
•
•
2014
2015e
2016e
FY2013
RESILIENT GROWTH PERSPECTIVES
platforms(3)
5-7% based on 31/12/14
forwards ($67/bbl, €22/MWh)
NBP in €/MWh, 2-3 year hedging
~-19%
26
COI profile(1)
~5-7% CAGR
• Energy International(4)
• Global Gas & LNG
• Energy Services
8-10% prior to oil/gas price drop
($100/bbl, €26/MWh)
2014
FY2014
(forward 31/12/14)
€4.0bn
2015
2016
27
2013
22
21
22
2014
2015e
2016e
Portfolio risks well balanced
Net Recurring Income group share to increase 2016 onwards
(1)
97
60
+
Growth
~-31%
100
COI profile(1)
€1.8bn
2014
•
Brent in $/bbl (forward 31/12/14)
+
Regulated French
gas infrastructures(2)
D3 / T2 restart on July 1st 2015
2016: 50% remaining CWE outright
volumes to be hedged at ~41€/MWh
COI profile(1)
€1.7bn
2014
•
UPDATED ASSUMPTIONS
Outright Europe
COI after share in net income of entities accounted for using the equity method. Targets
assume average weather conditions in France, full pass through of supply costs in French
regulated gas tariffs, restart of Doel 3 and Tihange 2 as of July 1st 2015, no significant
regulatory and macro economic changes, commodity prices assumptions based on
market conditions as of end of December 31, 2014 for the non-hedged part of the
production, and average foreign exchange rates as follow for 2015: €/$: 1.22, €/BRL: 3.23
(2)
(3)
(4)
(5)
Infrastructures business line excluding gas storage
Including Others
Excluding UK-Turkey
Adjusted for weather impact in France
15
Environmental and Social targets well on-track
Fighting against
climate change
2014
Decrease in CO2 specific
emissions vs 2012
Selective development
in renewables
 2,435 MW COD in 2014
of which Europe ~400 MW
-2%
+42%
Targets
-10%
(2020)(1)
+50%
(2015)
Health & Safety
frequency rate
improved continuously,
7% reduction vs. 2013
2014
2015
targets
4.1
<4
72%
100%
22%
25%
68%
>66%
3.2%
3%
Biodiversity
% of sensitive sites in the EU
with a biodiversity action plan
installed capacity increase vs. 2009
New target RES for Europe x2 by 2025,
from 8 to16 GW (2)
Diversity
% of women
in managerial staff
€2.5bn Green Bond: the highest corporate amount
to date (projects eligibility based on Vigeo assessment)
Training
Addressing risks linked to climate change
% of employees
trained each year
 Support for a global carbon pricing
and carbon markets improvements
 Promotion of innovative Climate friendly solutions
Employee
shareholding
% of Group’s capital held
 Involvement in the COP21 preparation (Paris 2015)
Publication of the first Integrated Report in 2014
ENGIE integrated in the 4 Euronext Vigeo indices
(1)
(2)
Emission ratio per power and energy production: 434 kgCO2eq/MWh in 2014 vs 443 kgCO2eq/MWh in 2012 excluding SUEZ Environnement
At 100% 8 GW installed end H1 2014 in Europe, excluding Energy Services business line
16
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): €2.85-3.15bn
—
Indicative EBITDA of €11.55-12.15bn / COI(3) of €6.65-7.25bn
Financial targets 2014-16
—
Net Capex(4): €6-7bn yearly average
—
Net debt/EBITDA ≤2.5x and “A” category rating
—
Dividend: payout ratio(5) of 65-75% with a minimum of €1 per share
Well anticipated top management succession
(1) Targets assume average weather conditions in France, full pass through of supply
costs in French regulated gas tariffs, restart of Doel 3 and Tihange 2 as of
November 1st 2015, no significant regulatory and macro economic changes,
commodity prices assumptions based on market conditions as of end of December
31, 2014 for the non-hedged part of the production, and average foreign exchange
rates as follow for 2015: €/$: 1.22, €/BRL: 3.23
(2) Excluding restructuring costs, MtM, impairment, disposals, other non recurring
items and associated tax impact and nuclear contribution in Belgium
(3) After share in net income of entities accounted for using the equity method
(4) Net Capex = gross Capex - disposals; (cash and net debt scope)
(5) Based on Net Recurring Income group share
17
A Global Energy Player
Appendices
May 2015
ENTERPRISE PROJECT TO TACKLE
THE ENERGY TRANSITION

Energy transition is the key challenge for our industry, worldwide

Solutions are now available to reconcile “energy for all” and “environmental
sustainability”

A much more decentralized energy world

ENGIE: an energy architect for countries, regions, cities, businesses, customers
CLIENT-ORIENTED


By integrating ourselves into local
ecosystems
By being flexible and reactive
INNOVATIVE

By anticipating and leveraging
technological changes

By digitizing solutions

By developing both centralized and
large scale infrastructures but also
downstream solutions for our different
types of clients
19
ENTERPRISE PROJECT TO ACCELERATE
TRANSFORMATION & GROWTH
 New
organization: “ENGIE Network”
‒ More decentralized structure with 24 BUs mostly based on a geographic principle
‒ 5 Lines of Business supporting the BUs and animating ENGIE Network
Gas chain
Solutions for businesses
Solutions for residentials
and professional
Centralized production
of renewable
and thermal energy
Decentralized solutions
for cities and regions
 Effort
on leadership development (to promote innovation and entrepreneurship)
 Business
initiatives to boost development (partnerships, acquisitions, new
business incubation)
 New
organization effective early 2016. No change in financial reporting before
full year 2015 results
More entrepreneurial, more innovative, more flexible and more
responsive with a direct link between HQ and BUs
20
Energy International
Accelerating growth in emerging markets through IPP and gas infrastructure
30%
2014
€3.7bn
2014
EBITDA
COI(1): €2.7bn
OUTLOOK
• 10.1 GW under construction(2)
• ~1.8 GW under advanced development(2,3)
• Gas and LNG infrastructure development
projects
• Selective acquisitions
Estreito (Brazil)
Installed capacity(2)
74 GW
Capacity installed outside Europe(2)
65 GW
Total gas sales
80 TWh
Gas sales outside Europe
45 TWh
~100% in
fast growing markets
Activities
•
•
•
•
Power generation
LNG import and regasification
Gas distribution, transportation
Power and gas retail, sales and
trading
• Desalinated water production
Key Characteristics
• World leading Independent Power
Producer with high quality asset
portfolio
• Strong position in fast growing
markets
• Significant pipeline of projects
under construction/development
• Most of the capacity under
construction contracted on a longterm basis
(1) including share in net income of associates
(2) At 100%, as of 12/31/2014 (3) exclusive negotiations/preferred bidder or Investment Note approved by the Business Line Commitment Committee
21
21
Energy International
Strongly positioned to benefit from attractive growth opportunities
UK & TURKEY
NORTH AMERICA
Merchant market
recovery
Merchant market recovery
“System play” approach
€1.0bn EBITDA
€0.7bn COI(1)
ASIA-PACIFIC
Asia: high demand growth
Strong regional experience
C&I retail business
18%
19%
€0.4bn EBITDA
€0.3bn COI(1)
13GW
Australia: merchant market
recovery
8GW
82%
Scale player
81%
€0.9bn EBITDA
€0.6bn COI(1)
38%
12GW
62%
LATIN AMERICA
SOUTH ASIA, MIDDLE EAST
& AFRICA
High demand growth
Strong regional experience
€1.3bn EBITDA
€1.0bn COI(1)
15%
Strong power
and water demand growth
14GW
Extensive regional experience
85%
Generation
LNG/Gas
Power capacity by status:
Retail
Long-term
Water desalination
Short-term/uncontracted
€0.3bn EBITDA
€0.3bn COI(1)
1%
26GW
99%
(1) COI including share in net income of associates
22
22
Energy Europe
Integration and optimization of our European energy activities
€2.0bn
2014
EBITDA
16%
2014
Central Western Europe(1)
including:
71% - France €0.6bn
- Benelux & Germany €0.8bn
29% Southern & Eastern Europe
Installed capacity
40 GW(2)
Capacity under construction
0.4 GW(2)
Gas sales
Energy Europe
EBITDA breakdown
606 TWh
Customers (# of contracts)
OUTLOOK
• Selective development in renewables: 2GW to
be commissioned over 2011-2017
• Nuclear and hydro expertise,
Activities
3-year rolling hedging policy
• Continuous review of the generation fleet
• Power generation
• Magritte initiative
• Sale of natural gas
Herdersbrug (Belgium)
(regulated & unregulated)
•
•
Sale of power
Energy management (gas
supply, asset optimization, risk
management) and trading
22 million
Key Characteristics
• Diversified energy mix
• Among the lowest CO2 emission
producer in Europe
• Strong presence in generation
in CWE
• No greenfield development in
merchant thermal on CWE
• Ability to mitigate gas to oil spread
impact
• Large sales portfolio
(1) And other €(0.1)bn (2) At 100%, as of 12/31/2014
23
23
Outright power generation in Europe
Nuclear & hydro
CWE outright: forward prices and hedges
€/MWh
65
3-year rolling hedging policy
60
55
€52/MWh
50
Hedges: prices & volumes
(in €/MWh)
€47/MWh
52
Cal13
Cal14
Cal15
Cal16
Cal17
45
40
€43/MWh
100%
€42/MWh
47
100%
42
~85%
Forward outright prices Belgium baseload
43
~50%
43
~25%
35
2013
2014
2015
2016
2017
As of 12/31/2014
France, Belgium without D1/2 extension
CWE outright: EBITDA price sensitivity
France
~45%
~50-57
TWh/year(1)
Belgium
~55%
€1/MWh in achieved price
n ca. +/- €50-57m EBITDA impact before hedging
+/-
3-year rolling hedging policy
(1) 2015-2017 estimates excluding D1/D2 extension
24
Update on Belgian situation
Nuclear
capacity
MW
Doel 1
433
Doel 2
433
ENGIE
End of
ownership operations
100%
100%
15/2/2015
1/12/2015
• 10-year extension decided
in November 2013 and
concluded in March 2014
T1
(3)
to extend by 10 years D1/2
D1/2
1,006
90%
1/10/2022
Doel 4
1,039
90%
1/7/2025
962
50%
D3/T2
• Subject to FANC decision, restart expected on November 1st 2015
1/10/2025
D4
Tihange 2
1,008
90%
1,046
Total
5,927
100%
Electrabel
Operation
(1)
90%
Outage impact is €40m per month on average for the 2 units(4)
Final tests results and analysis have been submitted to FANC,
including additional irradiation tests, detailed methodology of the tests
• D4 restarted on December 19th 2014 (not subject to FANC decision)
1/2/2023
Security
of supply
Tihange 3
authorization and amendment of
phase-out law
 Discussions with government are on-going and Group decision will
be based on nuclear contribution renegotiation for the whole fleet
•
Tihange 1
•
to be shared with EDF at 50/50
€0.16bn spent as of end of
December 2014 (@ 100%)
• Government decision (Dec 2014) • Extension subject to FANC(2)
(3)
Doel 3
• €0.6bn (2012-2019) Capex
• Optimization of maintenance planning in order
to promote best availability (T1, T3, D4) during winter
1/9/2025
• 2014 net nuclear contribution paid by Electrabel was €397m
• Complaint submitted to the European Commission in September
85%(1)
10%
EDF Luminus
Unavailable
Nuclear
contribution
50%
EDF
2014 qualifying the nuclear contribution as “State Aid”
• CREG’s recent assessment of 2014 profits from nuclear
activities in Belgium (€435m) confirms that contribution is
confiscatory
Excluding EON swap (2) Federal Agency for Nuclear Control (3) 10 year extension currently in negotiation (4) EBITDA, NRIgs
25
Global Gas & LNG
Successful growth strategy in upstream natural gas & LNG
18%
€2.2bn
2014
EBITDA
OUTLOOK
• E&P production target (Mboe)
2015: ~58, 2016: 59-63
• LNG supply portfolio to increase to 20
mtpa in 2020 vs. 16 mtpa in 2013
• Increase LNG sales to premium
markets
• Potential selective acquisitions
Gjøa platform
2014
Hydrocarbon production
55.5 Mboe
“Proven and Probable” reserves
759 Mboe
LNG sales to third parties
119 TWh
Total LNG supply portfolio
16 mtpa
Number of LNG vessels
Activities
• Exploration / Production(1)
-
Operations in 17 countries
343 licenses o/w 56% operated
2P reserves: 759 Mboe
Production: 55.5 Mboe (gas:
67%, oil & other liquids: 33%)
14
Key Characteristics
• E&P to support supply of other
Group’s activities: power
generation, gas and LNG supply
and infrastructures
• E&P is a natural hedge to
midstream
• LNG: Supply, transport, LT
regasification and sales
• LNG represents ~30% of the
Group’s long term gas supply
• Liquefaction projects: Cameron
LNG, Cameroon
• Strategic Partnership
with CIC (30% stake in E&P)
(1) As of 12/31/2014
26
26
LNG value chain
LNG strategy
TOTAL LNG EBITDA
~60%
~40%
2014
Infrastructures
& GTT
• Infrastructures
Europe
• Infrastructures
International
• GTT
Supply & Sales
€1bn
• Supply & sales:
• Global Gas
& LNG / LNG
• Energy International
/ US LNG
• Energy Europe / CWE
• Supply: Global Gas & LNG
/ E&P / Snøhvit

 Increase external sales


Volumes in mtpa
New markets
~75%
mainly in
Asia, Middle East
13
2000
7
Existing markets
~25%
6
2014
Reduced volatility
 Increase visibility on earnings
through investments on liquefaction
20
10
Regional prices spreads expected to decrease
but should remain / cyclical business
 Develop medium/long term sales
 Diversify supply sources: portfolio, own flexible
volumes, spot/trading, new suppliers
Growth in supply and external sales with flexible
own LNG backed by MT/LT sales opportunities
10
1
~+4% growth in demand mainly in Asia(1)
2020
Our competitive advantages
•
•
•
•
•
Flexible LNG supply & fleet
Projects to access flexible LNG, notably with US
gas exports as from 2018
Strong experience in supply contracts
management and diversified portfolio
Global marketing skills
Backlog of medium/long term sales contracts
Key advantages to seize growth opportunities
while facing the upcoming new LNG supplies
(1) CAGR over 2025 vs. 2013, source CERA Rivalry, October 2014
27
Infrastructures
Secured cash flows, visibility and steady growth
2014
€3.3bn
7%
LNG terminals
14% Storage
2014
EBITDA
26%
33% Transmission
Gas distributed
260 TWh
Storage capacity sold
99 TWh(1)
€14.3bn
Distribution RAB(2)
Distribution
46%
France
Remuneration
Transmission
6.0 %
€7.2bn
RAB(2)
6.5 – 9.5%
Remuneration
€1.2bn
LNG Terminals RAB(2)
OUTLOOK
• ~ +3.5% steady growth of ~€23bn RAB(3)
• Visibility on 4 years with regulated tariffs
for distribution, transmission and LNG
terminals
Fos Tonkin (France)
8.5 – 10.5%
Remuneration
Key Characteristics
Activities
• Natural gas transmission
network (33,320km in France and
Germany)
• Gas distribution network in
France (196,940km connecting
~9,530 municipalities)
• Storage activities in and
outside France (21 facilities and
13 bcm working capacity)
• LNG terminals in France
• Growing infrastructure needs in
Europe
• Attractive RAB return rate (6-10.5%)
• 4-year regulation period
•
~€2.9bn investments with visibility
on returns over 2015-2016 for
regulated gas infrastructures(4)
• Strategic partnership with CNP / CDC
(25% stake in GRTgaz transmission network)
(21.25 bcm regasification capacity
in 3 LNG terminals in France)
(1) Of which 78 TWh in France (2) Regulated Asset Base as of 01/01 (3) CAGR over 2013-2016 in France
(4) Indicative RAB investments in tariffs (distribution, transport, LNG terminals) in France
28
28
Energy Services
Presence along the entire value chain
2014
€1.1bn
€15.7bn
Revenues
9%
2014
EBITDA
Installations – Backlog
€5.5bn
Engineering – Backlog
€0.6bn
Services – Net commercial development (€m/y)
OUTLOOK
• Revenues organic growth:
GDP growth +2%
• EBIT/revenues ≥ 5% in 2016
• Selective acquisitions in targeted
markets
Districlima, Barcelona (Spain)
205
Activities (% 2014 turnover)
• Engineering (3%): consulting,
feasibility studies, engineering,
project management and client
support
•
Installations (39%): mechanical
and electrical installation, heating,
ventilation, air-conditioning and
systems integration
Key Characteristics
• Low capital intensity
• ~100,000 employees worldwide
• Wide range of energy efficiency
offers
• Services (58%): maintenance
(34%), district cooling / heating
networks(14%), outsourcing
(10%). E.g: facility management,
services integration, energy
efficiency, multi-technical
services, energy mix solutions,
cogeneration, smart energy
systems, public lighting,
mobility…
Perspectives
• Growing need in energy
efficiency in Europe
• Increasing international
development
29
29
Energy Services
Strengthening leadership in Europe and creating strong local position abroad
SELECTIVE
ACQUISITIONS/GROWTH
ALONG THE VALUE CHAIN
~ €1.1bn incremental revenues
from 14 acquisitions closed in
Europe
United Kingdom
Balfour Beatty Workplace
Facility Management
services
Lend Lease FM
Portfolio of long-term FM
contracts in key public
sector and healthcare
markets
2013/14(1)
Germany
HGS
Technical services related
to cogeneration power
plants and special gases
Lahmeyer
Engineering company
Poland
Heating networks
in various cities
1200
1000
800
South East Asia
600
Singapore
Keppel FMO
Subsidiary of Keppel
dedicated to FM
SMP
energy efficiency for
data centers
400
America
200
0
2013
2014
(1) Based on 12 months average contribution
USA
Ecova
Technology-enabled
energy management
solutions
Brazil
Emac
Air conditioning systems
maintenance and multitechnical services
Middle East
Qatar
Mannai
Creation of a JV for
energy efficiency & FM
Australia
Trilogy Building
Services
energy efficiency
30
Governance
Shareholding structure
Board of directors
As at end of December 2014
• As of April 28, 2015 : 19 members
Public
56.0%
French
State
33.3%
 10 Directors elected by the General Shareholders’ Meeting out
of which:
 8 independent
 4 international
 5 representing the French State
 3 representing employees
 1 representing employees shareholders
• 53% of independent(1),63% of women directors(2)
GBL 2.4%
• 12 meetings in 2014, 83% attendance rate
Other strategic investors 3.3%
Treasury stocks 1.8%
Employee shareholding 3.2%
• Board assisted by 4 committees:




Audit Committee
Strategy, Investment and Technology Committee
Appointments and Compensation Committee
Ethics, Environment and Sustainable Development Committee
(1) 8 independent members representing 53% pursuant to the Afep-Medef Code (excluding the number of Directors representing employees and
employee shareholders)
(2) 11 women representing 63% pursuant to the law and the Afep-Medef Code (excluding the number of Directors representing employees)
31
31
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 expectations with respect to future
operations, products and services, and statements regarding future performance. Although the
management of GDF SUEZ believes that the expectations reflected in such forward-looking statements
are reasonable, investors and holders of GDF SUEZ securities are cautioned that forward-looking
information and statements are not guarantees of future performances and are subject to various risks
and uncertainties, many of which are difficult to predict and generally beyond the control of GDF SUEZ,
that could cause actual results, developments, synergies, savings and benefits to differ materially from
those expressed in, or implied or projected by, the forward-looking information and statements. These
risks and uncertainties include those discussed or identified in the public filings made by GDF SUEZ with
the Autorité des Marchés Financiers (AMF), including those listed under “Facteurs de Risque” (Risk
factors) section in the Document de Référence filed by GDF SUEZ with the AMF on 23 March 2015
(under no: D.15-0186). Investors and holders of GDF SUEZ securities should consider that the
occurrence of some or all of these risks may have a material adverse effect on GDF SUEZ.
32
GDF SUEZ ADR program
American Deposit Receipt
Symbol
GDFZY
CUSIP
36160B105
Platform
OTC
Type of programme
Level 1 sponsored
ADR ratio
1:1
Depositary bank
Citibank, NA
FOR MORE INFORMATION, GO TO
http://www.citi.com/dr
33
For more information about ENGIE
+33 1 44 22 66 29
[email protected]
http://www.gdfsuez.com/en/investors-area
FOR MORE INFORMATION ABOUT FY2014 RESULTS, YOU WILL FIND ON
http://www.gdfsuez.com/en/investors/results/results-2014
2014
financial
Presentation
Appendices
Press
Release
Recorded
conference
audiocast
Conference
call transcript
Financial
report
Analyst
pack(1)
(1) Including power generation fleet as of December 31th, 2014 and Key financial performance indicators
34