ENGIE Energía Perú Results as of September 218
218 Q3 HIGHLIGHTS Total energy generation (SEIN) grew 3.% in Q3 YTD 218 compared to Q3 YTD 217. As of September, EEP maintained a leading position in the sector, accounting for 2% of the total capacity and 9% of the total energy generation of the system Q3 218 EBITDA reached 62.MUSD, a 3.% growth compared to Q3 217, due to strong commercial effort to re-contract available efficient capacity, lower COGS (6.6%) and lower SG&A (23.5%). However, Q3 YTD 218 EBITDA decreased 25% compared to Q3 YTD 217. The decrease is mainly explained by the end of SPCC PPA and lower re-contracting prices given market conditions Q3 218 Net Result reached 21.5MUSD, a 14.% increase compared to Q3 217 (18.8MUSD) mainly due to lower financial expenses Because of its recognized standards of transparency and corporate governance, EEP entered the BVL Good Corporate Governance Index in July 218 In September 218, EEP signed a 7-year PPA for 15MW with Anglo American Quellaveco in addition to the 3-year PPA for 35MW signed earlier this year In September 218, EEP together with the Municipality of San Isidro, implemented the first 1% electric bus which can be used free of charge by residents and visitors. This initiative is part of ENGIE s objective of promoting green mobility and contributing for reducing CO2 emissions ENGIE Energía Perú - Quarterly Results Q3 218 2
MAIN FINANCIAL RESULTS Q3 218 EBITDA Q3 Net Result Q3 Total Debt MUSD MUSD MUSD 18 16 +3% +14% -15% 6 5 71 71 62 55 55 19 1 3 3 22 914.9 776.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 217 218 Q1 Q2 Q3 Q4 Q1 Q2 Q3 217 218 217 Q3 218 Q3 EBITDA Q3 YTD Net Result Q3 YTD Net Debt / EBITDA (12m) MUSD -25% MUSD -36% +15% 275 25 129 82 2.4 2.8 217 Q3 218 Q3 217 Q3 218 Q3 217 Q3 218 Q3 ENGIE Energía Perú - Quarterly Results Q3 218 3
ENERGY PRODUCTION AND BALANCE Q3 218 Lower thermal generation in Q3 218 and net buyer position in the spot market GWh 216 217 Q3 217 YTD Q3 218 YTD Q3 217 Q3 218 Q3 218 vs Q3 217 YTD Q3 218 vs Q3 217 Yuncán HPP H 76 8% 889 11% 678 1% 651 1% 159 2% 152 7% -4% -4% Quitaracsa HPP H 484 5% 531 6% 43 7% 381 6% 7 1% 57 3% -11% -18% Chilca1 CCGT T 5,617 63% 5,33 63% 3,865 59% 2,196 34% 1,589 25% 1,528 73% -43% -4% Chilca2 CCGT T 22 2% 38 4% 153 2% 222 3% 131 2% 193 9% 45% 47% Ilo21 (Coal) T 773 9% 674 8% 651 1% 43 1% 28 4% 16 1% -93% -94% Ilo1 (Diesel) T 21 2% 86 1% 86 1% % 31 % % -1% -1% Ilo31 (Cold Reserve) T 1 1% 7 % 7 % 3 % 1 % 1 % -57% 22% NEPI T 18 % 9 % 8 % 18 % 4 % 9 % 12% 128% Intipampa S % % % 54 % % 25 1% n.a. n.a. Imports (Ecuador) 21 % % % % % % n.a. n.a. Auxiliaries -289-3% -185-2% -152-2% -66-1% -76-1% -43-2% -57% -43% NET GENERATION 7,914 88% 7,624 91% 5,727 88% 3,52 55% 2,191 34% 1,938 92% -39% -12% COES: NET 1,61 12% 734 9% 797 12% 2,873 45% -23-3% 169 8% 261% -183% CLIENTS DEMAND 8,976 1% 8,358 1% 6,524 1% 6,375 1% 1,988 31% 2,16 1% -2% 6% H Hydro T Thermal S Solar ENGIE Energía Perú - Quarterly Results Q3 218 4
MAIN RESULTS Q3 218 (MUSD) Q3 218 Q3 217 Q3 218 vs Q3 217 * Restatement by application of IFRS ** Does not include commercial penalty fees and impairment of assets Q3 218 YTD Q3 217 YTD Q3 218 vs Q3 217 YTD FY 217 FY 216 FY Revenues* 129 144-11% 388 464-16% 683 748-9% EBITDA 62 6 3% 25 274-25% 325 39 5% Net Result 22 19 14% 82 129-36% 13 132-1% Recurrent EBITDA** 62 6 3% 25 247-17% 298 33-1% Net Recurrent Result** 22 19 14% 82 19-25% 111 169-35% Total Debt 777 915-15% 777 915-15% 837 1,9-17% Net Debt 711 792-1% 711 792-1% 8 981-18% Net Generation GWh 1,938 2,191-12% 3,52 5,727-39% 7,624 7,914-4% Clients Demand GWh 2,16 1,988 6% 6,375 6,524-2% 8,358 8,976-7% Net Debt / EBITDA 12m 2.8 2.4 15% 2.8 2.4 15% 2.5 3.2-22% Q3 218 EBITDA 3.% growth vs Q3 217 consolidating the commercial efforts taken during 218 Q3 218 YTD EBITDA decreased 25% compared to Q3 217 YTD to 25MUSD, mainly explained by the end of SPCC PPA (April 217) and early PPA termination Las Bambas (August 217) which was partially offset by new PPAs. Total debt decreased by 15% from Q3 217, following the expected amortization schedule, and totalized 777MUSD ENGIE Energía Perú - Quarterly Results Q3 218 5
EBITDA Q3 YTD: 218 vs. 217-7. MUSD Impact of the end of PPA s in Q3 217 partially offset by commercial effort driving Q3 218-25% +274.7-28. -.7-57.9 +12.4 +4.2 +24.7 217 effect 28.MUSD mainly due to commercial penalty fee Las Bambas Higher marginal cost due to gas events in 218 offset by natural gas price declarations SPCC PPA maturity End of Las Bambas by the end of August 217 Jetty contract (mainly one shot initial payment) Services to SPCC EBITDA Q3 217 Non recurrent events CMg Commercial Contracts Other Income Intipampa EBITDA Q3 218 ENGIE Energía Perú - Quarterly Results Q3 218 6
NET RESULT Q3 YTD: 218 vs. 217-47. MUSD - 36% +128.8 +7.8-7. Ilo complex depreciation review Lower outstanding debt Interest on tax adjustment in 217 Tax effect, mainly explained by lower EBITDA Tax related to Las Bambas penalty -6.7 +6.1-2.3 +18.2 +81.8 Net Result Q3 217 Non recurrent events EBITDA D&A Net Financial Expenses FX Tax Net Result Q3 218 ENGIE Energía Perú - Quarterly Results Q3 218 7
EBITDA Q3: 218 vs. 217 +1.6 MUSD +3% +6.5. -3.9 +.1 +4. +1.4 +62. Higher marginal cost due to Malvinas NG plant maintenance in July/August Provision reversals EBITDA Q3 217 Non recurrent events CMg Commercial Contracts Other Income Intipampa EBITDA Q3 218 ENGIE Energía Perú - Quarterly Results Q3 218 8
NET RESULT Q3: 218 vs. 217 +2.6 MUSD +14% +18.9 +1.6-2.9 +2.1 +. +1.8 +21.5 Ilo complex depreciation review Lower outstanding debt Net Result Q3 217 EBITDA D&A Net Financial Expenses FX Tax Net Result Q3 218 ENGIE Energía Perú - Quarterly Results Q3 218 9
MUSD STOCK PRICE PERFORMANCE Net Result Dividends Market Cap Financial Market Data September 218 2,5 25 Number of shares issued 61,37,11 2, 1,5 1, 5 467 663 1,2 793 839 1,62 1,187 1,759 2,5 2,75 1,427 1,611 1,351 1,222 2 15 1 5 MUSD Share price (PEN) 3/9/218 6.7 VWAP (3m) (PEN) 6.69 52 week high (PEN) 8.5 52 week low (PEN) 6.43 Market Cap (MUSD) 1,222 Enterprise Value (EV) (MUSD) 1,932 EV / EBITDA 7.6x 25 26 27 28 29 21 211 212 213 214 215 216 217 218 YTD Price to Book Value (P/B) 1.1x Price / Earnings ratio (P/E) 14.8x Market Cap changes in USD is affected by share price movements and FX changes In Q3 218, the share price increased from 6.55 to 6.7 S/./sh; (+2.3%); while the exchange rate appreciated slightly against the USD (3.298 PEN/USD). Daily avg. trading volume (Msh).3 EV: Market Cap + Net Debt P/B: Market Cap / Book Value of Equity *Market Cap variation in 215 is mainly explained by portfolio rebalance of an institutional investor and subsequent potential reclassification of Peru from Emerging Markets ( EM ) to Frontier market due to its low liquidity Source: SMV, Lima Stock Exchange ENGIE Energía Perú - Quarterly Results Q3 218 1
PEN / Share EQUITY ANALYST VIEW 9. 8.5 8. Consensus 25% Upside 7.5 7. Price as of September 3th 6.7 218 Sep 6.5 6. Sell Mantain Buy Credicorp Larrain Kallpa Inteligo Seminario Consensus Target price 7.8 8.2 8.9 8.5 8.4 8.4 Recommendation Mantain Buy Buy Buy Buy Date September 218 July 218 July 218 July 218 September 218 ENGIE Energía Perú - Quarterly Results Q3 218 11
DIVIDEND PAYMENTS: 68 MUSD since 24 Dividend Policy: Minimum payout ratio of 3% 1 193% 2% 9 8 7 6 5 4 3 2 1 86% 85 Extraordinary Annual 77 2nd Half 1rst Half 71 Payout ratio 15 43 59 41 113% 1% 42 24 9% 89% 34 34 36 42 42 32 28 54 31 49 49 42 38 31 22 24 25.4 18 11 13 16 3% 3% 31% 3% 31% 3% Payout ratio of 38% in 217 1 1 3 8% 9 6 6% 38% 38% 2 2 24 31 33 2% 13 12.4 15 % 24 25 26 27 28 29 21 211 212 213 214 215 216 217 18% 16% 14% 12% 1% 4% ENGIE Energía Perú - Quarterly Results Q3 218 12
APPENDIX ENGIE Energia Peru overview Largest private electricity company in Peru in terms of capacity 2,497 MW of installed capacity & ~7,6 GWh of annual generation Quitaracsa Hydro 112MW Yuncan Hydro 136MW Low Co2 generation base Diversified & decentralized portfolio of generation sources Chilca Complex ChilcaUno - 852MW - Natural Gas ChilcaDos - 111MW- Natural Gas 21 years operating in the country & listed since 25 499 employees Ilo Complex Nodo - 61MW - Dual Fuel Ilo31 (Cold Reserve) - 5MW - Dual Fuel Ilo21-135MW - Coal Financial discipline to support future growth ambitions, AAA local rating Intipampa Solar 41MW Sponsored by a global leader, ENGIE S.A.* * www.engie.com ENGIE Energía Perú - Quarterly Results Q3 218 13
Solid financial discipline optimizing costs, diversifying financial sources & limiting risks Net debt / EBITDA Debt Breakdown - As of September 218 Net Debt/EBITDA Net Debt EBITDA LTM 777 MUSD 6 5 4 3 2 919 926 898 981 94 872 792 8 763 729 711 33 332 326 39 323 341 327 325 288 253 255 2.8x 2.8x 2.8x 3.2x 2.8x 2.6x 2.4x 2.5x 2.6x 2.9x 2.8x By Currency 4% 6% By Source 19% 43% 38% 1 - Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Credit Rating May 218 AAA.pe Stable AAA.pe Stable 25/5/218 28/5/218 Local capital market as an important partner First program for up to 4MUSD started in 27 with total issuances of ~15MUSD (outstanding ~75MUSD) Third program for up to 5MUSD started in 215 : 216 1st issuance of 25MPEN @ 7.125% (1 yr) 217 2nd issuance of 79MPEN @ 6.% (7 yr) 217 3rd issuance of 25MPEN @ 6.53% (1 yr) 216-217 issuances ~2x times over subscripted ENGIE Energía Perú - Quarterly Results Q3 218 14
THANKS This presentation may 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 may predict, forecast, indicate or imply future results, performance or achievements, and may 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 shares 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 may 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 New: investorrelations.eep@engie.com Av. República de Panamá 349, Lima 27, Peru www.engie.pe Adriana Burneo, Head of Corporate Finance & Investor Relations adriana.burneo@engie.com Marcelo Soares, Chief Financial Officer marcelo.soares@engie.com ENGIE Energía Perú - Quarterly Results Q3 218 15