ENGIE Energa Per Results as of December 2016 2016 HIGHLIGHTS Total - - PowerPoint PPT Presentation

SLIDE 1

ENGIE Energía Perú

Results as of December 2016

SLIDE 2

2016 HIGHLIGHTS

Total Installed Capacity grew 723MW reaching 2,673 MW

2

• In December, Chilca 2 combined cycle project entered into commercial operation, reaching a total

installed capacity of 113 MW

• In October, Nodo Energetico project entered into commercial operation, reaching a total installed

capacity of 610MW (dual fuel diesel / gas)

• In June, EEP raised 250MPEN (~76MUSD) through a 10 year bond in the local capital markets at a

final fixed rate in dollars of 3.38%

• In February, EEP won a bid to build and operate a 40 MW solar plant, planned to enter into

commercial operation during Q4 2017

• Recurrent EBITDA reached a record of 330MUSD while Net Recurrent Result totalized 175MUSD.

After changes in the income tax rate and the impairment of assets, the final Net Result accounted for 132MUSD

SLIDE 3

2016 INDUSTRY HIGHLIGHTS

Total Installed

3

• Installed capacity grew 26% to 12,135MW, among projects entering into operation:

+ Additional Hydro (+975MW), Cerro del Aguila (+514MW) & Chaglla (+461MW) in Q3 2016 + New Cold reserves (+1,242MW) dual plant in Ilo & Moquegua (Q3-Q4 2016)

• Demand grew 8.5%, mostly explained by the start of operations of two mining projects: Cerro Verde

(300MW) & Las Bambas (150MW)

• Non renewable auction was awarded for 430MW (1,740 GWh), including mainly 160MW of wind,

180MW of solar, 80MW of mini-hydro. These projects should enter into operation before December 2018

• Government of Peru cancelled the contract of the Gas to South pipe project because the consortium

did not meet the financing deadline

SLIDE 4

4

* Does not include impairments of fixed assets

MAIN FINANCIAL RESULTS

Solid recurrent results. Net Result affected by extraordinary events

** Does not include impairments nor changes in income tax rates and their effect on the deferred tax liability

325 330 2015 2016 173 175 2015 2016

EBITDA Net Result Debt

954 1009 2015 2016 2.81 3.18 2015 2016

+1% +1% +6% +13%

321 309 2015 2016 181 132 2015 2016

• 4%
• 28%

Recurrent EBITDA MUSD Net Recurrent Result MUSD Total Debt MUSD EBITDA MUSD Net Result MUSD Net Debt / EBITDA x

SLIDE 5

2016 SNAPSHOT

5

Operations

• Higher generation of Ilo plants (Ilo1, Ilo 21 & Ilo 31) due to transmission congestion in the south of the country
• Successful full year operation of Quitaracsa hydro power plant
• Maintenance optimization program

Commercial

• New contracts with free & regulated clients for 440MW
• Net buyer position in the spot balance
• Low PPA prices due to oversupply and low prices in the spot market

Finance

• Successful 10 year bond issuance in local capital market at a final rate of 3.38%
• Reduction of average cost of debt (4.9%)
• Focus on cost control and process optimization

Sustainability

• 3,500 people benefited by infrastructure improvements in our areas of influence
• Training programs improved the technical and commercial capabilities of 900 entrepreneurs and small businesses
• High health & safety and environmental standards

SLIDE 6

AGENDA

6

Peruvian Electricity Market

1

Company Overview

2

2016 Financial Results

3

Capital Structure

4

SLIDE 7

PERUVIAN ELECTRICITY MARKET

7

46% 4% 47% 2%

Hydro Renewable Natural Gas Coal & diesel

18% 21% 17% 14% 29%

Enel Government ENGIE Kallpa Others

54% 46%

Regulated Clients Free Clients

• Main regulated clients are

Edelnor 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 in terms of

energy generation

• Others include: Fenix

Power, Duke, Statkraft, Termochilca, among

• thers

Clients Generation Market share Market Installed capacity 12,135 MW Peak demand 6,492 MW Energy Generation 48,326 MW

+8.5% +3.5% +26%

SLIDE 8

SUPPLY & DEMAND

8

System is based mainly on hydro and natural gas from Camisea Field 2 seasons: wet (from November to April) and dry (from May to October) Electricity demand increased on average 7% annually between 2005 and 2016 (YTD) and is expected to have

an average annual growth of 4-5% between 2017 and 2019;

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

• 2,000

4,000 6,000 8,000 10,000 12,000 14,000 2016 2017 2018 2019 2020 Reserve MW

Balance Supply - Demand - Wet Season

Hydro Renewable Natural Gas (CC) Natural Gas (OC) Coal Oil and Fuel Oil Max Demand Reserve Wet Season (%)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

• 2,000

4,000 6,000 8,000 10,000 12,000 14,000 2016 2017 2018 2019 2020 Reserve MW

Balance Supply - Demand - Dry Season

Hydro Dry Season Renewable Natural Gas (CC) Natural Gas (OC) Coal Oil and Fuel Oil Max Demand Reserve Dry Season (%)

SLIDE 9

MARGINAL COST New hydro (+975MW) supports low level of marginal cost

9

SLIDE 10

AGENDA

10

Company Overview

2

2016 Financial Results

3

Capital Structure

4

Peruvian Electricity Market

1

SLIDE 11

ENGIE ENERGIA PERU OVERVIEW

11

Market data source: ENGIE as of December 2016 CCGT: Combined Cycle Gas Turbines | OCGT: Open Cycle Gas Turbines | HPP: Hydro Power Plant.

Valuable team & assets Solid Financials 20 years operating in the country

519 employees 8 Power Plants totalizing 2,673MW 1 Substation and +200km

Transmission Lines

Our first solar power plant under

construction

~750MUSD revenue ~300MUSD EBITDA ~1,600 -1,800 MUSD Market Cap

Sponsored by a global player

Natural Gas 36% Hydro 9% Dual fuel 42% Coal 5% Diesel 8%

Quitaracsa Yuncan ChilcaUno ChilcaDos Ilo21 Ilo1 Ilo31 (Cold Reserve) Nodo Energetico Intipampa

2,673

SLIDE 12

OUR HISTORY

12

Proven track record in driving organic growth and integrating the developed projects. Committed investments for approximately 1.6 BnUSD between 2010 and 2018

1997-2003 2004-2005 2006 2007-2008 2009 2010 2011 2012 2013 2014 2015

Acquisition Ilo1 261MW Coal Plant Ilo21 135MW COD Yuncán HPP 134MW COD Chilca 1 OCGT11 180MW COD Chilca 1 OCGT12 180MW COD Chilca 1 OCGT12 180MW COD

• 1. Chilca 1 CCGT 292MW NTP
• 2. Quitaracsa HPP 112 NTP
• 3. Ilo31 500MW NTP

Chilca 1 292 MW CCGT COD (85MW CCGT) Ilo31 500MW COD Nodo Energetico 600MW Auction Chilca 2 113MW CCGT NTP Intipampa 40 MW Solar Auction Private Placement 21% Offering 17% First Dividend Payment OCGT 12 Financial Lease 400 MUSD Corporate Bond Program 1st, 2nd & 3rd issuances Bond Program 4th & 5th issuances Chilca 1 CCGT 310 MUSD F. Lease Bond Program 6th & 7th issuance Cold Reserve 200 MUSD Subordinated Financial Lease Capital Increase 150 MUSD @ 100% Subscription Quitaracsa HPP 60 MUSD Financial Lease 100 MUSD MTL Chilca 2 125 MUSD Financial Lease MW: Nominal Capacity

2016

Nodo 610MW & Chilca Dos 113MW COD

Total Capacity MW 676 836 1,090 1,068 1,068 1,360 1,820 1,860 1,952 2,673 EBITDA* MUSD 84 185 134 163 168 188 270 287 325 330 Net Income* MUSD 42 94 66 81 86 101 127 138 173 175 Dividends MUSD 42 84 59 24 26 30 38 41 54 50 Market Cap MUSD 645 870 877 1,600 1,200 1,759 2,005 2,075 1,427 1,611

*Recurrent Figures

SLIDE 13

ORGANIC GROWTH In 2016, ENGIE Energia Peru reached 2,673MW…

13

• 500

1,000 1,500 2,000 2,500 3,000 3,500 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2019 … 2022

MW

3065 MW

374 MW

Hydro Natural Gas Dual Fuel

Investment Plan1.6 BUSD

1068 MW

* In 2015, Ilo1 Steamed Turbine 1 was decommissioned (-22MW)

2673 MW

Yuncan +134MW Chilca 1 +180MW Chilca 1 +180MW Chilca 1 +200MW Chilca 1 Combined Cycle +292MW Ilo 31 +500MW Quitaracsa +112MW Nodo Ilo & Chilca Dos +723MW Intipampa +40MW CCGT Nodo +350MW

AVERAGE GROWTH

18%

Growth options

Solar

under construction

SLIDE 14

NODO ENERGETICO - ILO, +610MW

14

On October 21st EEP announced the commercial operation of Nodo Energético project, 5 months ahead of the scheduled contractual date and below budget

Key facts

• Location the project is located in the south of Peru, in Moquegua Region (adjacent to

existing operations)

• Description: dual fuel (diesel / gas) plant, expected to operate with diesel as a back up

plant for the system until the Gas Pipe to the South Project is completed. Besides the 3 turbines generators, the project includes a 75km transmission line (500kV) to Montalvo Substation and 6 new fuel oil tanks

• Economics: the project is backed by a 20 year Investment Agreement with the Peruvian

State for 600 MW at 5.75 USD/kW-month

• Construction: construction contracts were performed by Técnicas Reunidas/JJC (power

plant) & Abengoa (transmission line)

• Financed through Financial Leases for 290 MUSD with BCP and BBVA
• Health & Safety: record of 3.4M man hours without disabling accidents
• Community and local impact during the project, Engie strengthened relations with the

local community, contributing with local employment, specialized trainings to increase employability and working in partnership with the community to achieve the highest environmental standards

SLIDE 15

CHILCA DOS, +113MW

15

On December 21st EEP announced the commercial operation of Chilca Dos combined cycle

• project. The project started operations as planned and in line with budget
• Economics:

the project is sold under EEP PPA portfolio, the investment totalized 130MUSD

• Construction: construction was successfully completed in 22 months.

Main contractor was Duro Felguera

• Financed through Financial Lease for 125 MUSD with BBVA
• Health & Safety: 1.3M man hours without disabling accidents
• Community and local impact during the project, Engie benefited the

local community, improving infrastructure, contributing with local employment, trainings curses to increase self-sustainability

Key facts

• Location the project is located in Chilca district, 60km south of Lima

(adjacent to existing operations ChilcaUno)

• Description the power plant consists in one gas turbine and one steam

turbine with a combined capacity of 113 MW

SLIDE 16

INTIPAMPA, +40MW (UNDER CONSTRUCTION)

16

On February 2016, ENGIE Energía Perú was awarded by Osinergmin as part of the 4th Renewables Auction process the construction of a 40 MW solar plant which will be located in Moquegua

Status

Signature of Concession Contract Pre-operational studies Archeological permits Environmental studies Land EPC signed with Solairedirect Notice to Proceed

Construction

Financing structure inside Balance Sheet

COD expected in Q4 2017

The project will deliver 108.404 GWh/year to the system and is backed by an investment agreement with the Ministry of Energy and Mines @48.5$/MWh until 2038 (approx. 20 years). Total investment estimated in 55 MUSD. Site mobilization in order to start construction was launched on February 22nd, 2017.

SLIDE 17

STRATEGY

17

• Balanced portfolio of assets under

development

• Geographic diversification and

proximity to our clients

• Renewable pipeline
• Continue with hydro mapping

and studies

• Studies for gas options
• M&A opportunities
• Focus on improving
• perational efficiency of

existing assets

• A. Development
• Optimum contracting level
• Balanced portfolio between

Regulated Clients (Distribution Companies) and Free Clients

• Power Purchase Agreements

under “pass-through” scheme

• Minimize non-manageable risks
• Maintain a strong position for

unexpected events and

• pportunities
• B. Commercial
• C. Financial

SLIDE 18

PROJECTS UNDER DEVELOPMENT: GAS TO SOUTH OPTION

18

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 (~2022)

• 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

SLIDE 19

COMMERCIAL PORTFOLIO

19

• 44 clients
• Consuming 8,976 GWh & 1,527 MW in peak hours
• 60% free clients / 40% regulated clients
• Indexation 58% of portfolio to Natural Gas prices
• New PPAs in 2016 for +400MW

Challenging market conditions Highly contracted portfolio with creditworthy clients Diversified portfolio with medium/long term contracts

• Oversupply pushing PPA market prices down
• Market conditions pushing new and existing contractual terms
• Most of EEP contracts do not include termination clauses
• Las Bambas (150MW) has the option to terminate the contract in

August 2017 by paying a termination fee

Challenging market conditions

Regulated Clients Free Clients

SLIDE 20

ENERGY PRODUCTION AND BALANCE 2016

20

Growth in net generation and contracted level in line with commercial operation of new efficient generation plants and commercial efforts

GWh

2016 / 2015 4Q'16 / 4Q'15

Yuncán HPP

898

14%

948

13%

921

12%

901

10%

760

8%

• 16%

211

9%

173

8%

• 18%

Quitaracsa HPP

0% 0% 0%

88

1%

484

5%

448% 88

4%

112

5%

27%

Chilca1 CCGT

4,222

68%

5,771

78%

5,979

80%

5,838

66%

5,617

63%

• 4%

1,499

65%

1,516

71%

1%

Chilca2

0% 0% 0% 0%

220

2%

n.a

0%

88

4%

0%

Ilo21 (Coal)

556

9%

837

11%

163

2%

248

3%

773

9%

212% 202

9%

191

9%

• 5%

Ilo1 (Diesel)

106

2%

130

2%

30

0%

62

1%

210

2%

240% 35

2%

17

1%

• 53%

Ilo31 (Cold Reserve)

0%

5

0%

5

0%

35

0%

100

1%

184% 11

0%

9

0%

• 20%

NEPI

0% 0% 0% 0%

18

0%

n.a.

0%

4

0%

0%

Importaciones (Ecuador)

0% 0% 0% 0%

21

0%

n.a

0% 0%

0%

Auxiliaries

• 255
• 4%
• 188
• 3%
• 212
• 3%
• 100
• 1%
• 289
• 3%

188%

• 52
• 2%
• 82
• 4%

58%

NET GENERATION

5,528

89%

7,502

101%

6,887

92%

7,072

81%

7,914

88%

12% 1,994

86%

2,028

95%

2%

COES: NET

691

11%

• 109
• 1%

609

8%

1,711

19%

1,061

12%

• 38%

326

14%

117

5%

• 64%

CLIENTS DEMAND

6,219

100%

7,393

100%

7,496

100%

8,783

100%

8,976

100%

2% 2,320

100%

2,145

100%

• 8%

2012 4Q 2016 4Q 2015 2013 2014 2015 2016

SLIDE 21

AGENDA

21

Company Overview 2016 Financial Results

2 3

Peruvian Electricity Market

1

Capital Structure

4

SLIDE 22

MAIN RESULTS 2016 & Q4´16 Solid Recurrent Results

22

• Solid recurrent EBITDA and Net Result, positively impacted by start of operations of new projects and full year
• peration of Quitaracsa hydro power plant
• Net Result after non-recurrent events totalized 132MUSD, 28% below 2015. The decrease was explained by two

extraordinary effects: i) change in income tax rate (22.5MUSD) & ii) impairment of Ilo1 and development capex (20.9MUSD)

• Total debt increased by 6% and totalized 1,009MUSD due to capex related with projects such as Nodo Energetico and

Chilca 2 that started operations in Q4 2016

(MUSD) 2016 2015 2016 / 2015 4Q16 4Q15 4Q16 / 4Q15

Income

748 714

5%

184 187

• 2%

Recurrent EBITDA*

330 325

1%

73 73

• 1%

EBITDA

309 321

• 4%

53 69

• 24%

Net Recurrent Result**

175 173

1%

38 31

20%

Net Result

132 181

• 28%
• 6

40

• 115%

Total Debt

1,009 954

6%

• Net Debt

981 902

9%

• Net Generation GWh

7,914 7,072

12%

2,028 1,994

2%

Clients Demand GWh

8,976 8,783

2%

2,145 2,320

• 8%

Net Debt / EBITDA

3.18 2.81

13%

• Main Financial Results

* Does not include impairments of fixed assets ** Does not include impairments nor changes in income tax rates and their effect on the deferred tax liability

SLIDE 23

NON RECURRENT EVENTS Income Tax changes & Impairments

23

Total Net Result impact of -43MUSD, EBITDA impact of -21MUSD

• 2. Impairment of assets

+ Ilo 1 (12.7MUSD) Generation assets operating with diesel acquired in 1997 from Southern Peru Copper Corporation (SPCC). The plant is currently operating under emergency circumstances only and it is foreseen to be withdrawn from the interconnected system when the new 500kv Montalvo Transmission Line enters into

• peration; which is expected mid 2017

+ Development capex (8.2MUSD) related with projects which are not longer feasible under current circumstances In 2015, EEP recorded a non- recurrent gain of 13.2MUSD In 2016, EEP recorded a non- recurrent loss of 22.5MUSD Given the deferred income tax liability….

• 1. Changes in Income Tax rates

+ In 2015, the Government announced a progressive decrease of the income tax rate from 30% to 26% in 2019 and a progressive increase of the withholding tax on dividends from 4.1% to 9.3% + In 2016, the new Government changed the tax rules, setting a flat income tax rate of 29.5% and a withholding tax on dividends

• f 5%

SLIDE 24

+287.2 +325.5

• 6.3
• 14.8

+23.0 +2.4 +329.9

EBITDA 2014 EBITDA 2015 ∆ CMg Regulated Clients COD effect Others EBITDA 2016

RECURRENT EBITDA: 2016 vs. 2015 +4.4 MUSD

24

• end of contracts
• migration from

regulated clients to free clients

• higher marginal

cost due to:

• new mining

projects entering into operation

• Delay in rainy

season 2017

• Quitaracsa

(+9.5MUSD)

• Chilca2

(+5.3MUSD)

• Nodo (+8.2MUSD)

+ 1%

SLIDE 25

+137.6 +173.0 +4.4

• 13.5
• 5.1

+8.8 +7.4 +175.0

Recurrent Net Result 2014 Recurrent Net Result 2015 EBITDA growth D&A Financial expenses FX Others Recurrent Net Result 2016

NET RECURRENT RESULT: 2016 vs. 2015 +2.0 MUSD

25

+ 1%

SLIDE 26

• 16.3
• 6.3
• 14.8

23.0 2.5 287.2 320.8 309.0

EBITDA 2014 EBITDA 2015

• Ch. Impairment of

assets ∆ CMg Regulated Clients COD effect Others EBITDA 2016

EBITDA: 2016 vs. 2015 -11.8 MUSD

26

• 4%

Additional non- recurrent effect

SLIDE 27

+131.5 +137.6 +181.5

• 13.2
• 22.5

+4.7

• 12.7
• 8.2

+1.9

• R. Neto

2014

• R. Neto

2015 Change in income tax rate 2015 Change in income tax rate 2016 Impairment 2015 Impairment Ilo 1 Impairment of development capex Others

• R. Neto

2016

NET RESULT: 2016 vs. 2015 -50.0 MUSD

27

• Change in

income tax rate in 2015: i) from 30% to 28% in 2015 ii) to 26% expected in 2019 (impact

• n deferred

tax)

• Change in

income tax rate from 28% to 29.5% (impact on deferred tax)

• Higher EBITDA
• Positive FX effect

compared to 2015, among

• thers

Net Result decreased significantly mainly due to change in income tax rate and impairment of assets

• 28%

SLIDE 28

AGENDA

28

Peruvian Electricity Market Capital Structure Company Overview & Strategy

2 4

Peruvian Electricity Market

1

Company Results

3

SLIDE 29

FINANCIAL PRIORITIES

36

• 1. Maintain financial flexibility and access to capital markets to optimize capital structure
• Monitoring and compliance of Financial Covenant (Debt to EBITDA < 3.5x)
• Increasing duration of debt
• Protecting local rating to maintain best conditions in the local capital market (acceding to the lowest rates for corporate names)
• Minimum dividend pay-out ratio of 30% during expansion phase
• 2. Optimize cost structure to maximize value
• Minimizing cost, following closely market conditions to assess products and time to market
• Maintaining short debt up to a limit of 125MUSD, in line with working capital needs
• Minimizing cost of carry
• 3. Minimize risks
• Minimizing exposure to FX risks by contracting debt in USD or PEN + swap
• Keep an adequate balance between fixed and variable interest rates taking advantage of historic low interest rates for LT debt

SLIDE 30

DEBT STRUCTURE

36

80 8% 610 61% 184 18% 135 13%

Debt Composition by Product (MUSD)

Short Term Debt Financial Lease Bondholders Corporate Loans

• EEP started an aggressive expansion plan in 2011.

Total investments between 2011 and 2017 for the execution of 6 projects adding 1,657MW will reach 1.6 BnUSD.

• After Nodo Energetico Ilo and Chilca2 projects COD in

Q4 2016, Engie Energía Peru´s gross debt totalized 1,009 MUSD as of December 2016

1,009

SLIDE 31

180 18% 829 82%

Debt Composition by Interest Rate (MUSD)

Floating Rate Fixed Rate 194 19% 815 81%

Debt Composition by Currency (MUSD)

PEN + XCSY USD

LIMITED EXPOSURE TO FX AND INTEREST RATE VARIATIONS…

31

• FX: ENGIE Energía Perú’s functional currency is

the US Dollar and only a limited portion of its G&A and OPEX are in local currency (PEN). Revenues are either in US Dollars or in PEN indexed to the USD.

• Interest Rate: minimize the uncertainty of the cost of

debt. 1,009 1,009

SLIDE 32

STOCK PRICE PERFORMANCE

32

Sound financial results and value creation due to its financial, commercial and development strategy, generating 4x increase in market value since IPO

Financial Market Data – December 2016 Number of shares issued 601,307,011 Share price (PEN) – 31/12/2016 9.00 VWAP (3m) – (PEN) 9.20 52 week – high – (PEN) 10.15 52 week – low – (PEN) 6.85 Market Cap (MUSD) 1,611 Enterprise Value (EV) (MUSD) 2,594 EV / EBITDA 8.0x Price to Book Value (P/B) 1.6x Price / Earnings ratio (P/E) 12.2x Daily avg. trading volume (mm sh) 0.12

EV: Market Cap + Net Debt P/B: Market Cap / Book Value of Equity

Source: SMV, Lima Stock Exchange, estimated Financial Statements as of December 31st 2016

• Market Cap changes in USD is affected by share price movements and FX changes
• In 2016, the share price increase from 8.0 to 9.0 S/./sh; (+12.5%); at the same time the

exchange rate decreased from 3.41 to 3.36, which contributed to the Market Cap increase (+13.0%)

• Market Cap variation in 2015 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.

• Dividends distributed between 2005 and 2016 reached 587 MUSD (40MUSD in 2016)

467 663 1,020 793 839 1,602 1,187 1,759 2,005 2,075 1,427 1,611

50 100 150 200 250 500 1,000 1,500 2,000 2,500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 MUSD MUSD

SLIDE 33

STOCK EVOLUTION AND COMPARABLE TRADING COMPANIES

33

• Correlation with BVL Index although with

certain lag

• In October, EEP share price increased as

a result of pension funds increasing their exposure to the stock

• In November / December the share Price

decreased as some smaller investors realized gains Sources: Larrain handbook 2017, Credicorp - Perú Perspectivas y Estrategia 2017

Underperform Outperform

Return ENGIE S&P_BVL Index

YTD

0% 3% 3M

• 6%

7% 6M 5% 4%

Company Market Cap - Dec 16 (USDMM) EV /MW - installed Revenue /GWh - generation EPS (Earnings in USD per share) EV/EBITDA 2016e P/E 2016e P/BV 20016e ROE (%) Net Debt /EBITDA Credit Rating (int) Engie Energia Peru 1,611 0.65 104,587 0.28 7.5 9.7 1.6 16.04% 2.60 n/a Kallpa n/a n/a 72,571 n/a n/a n/a n/a n/a 2.71 BBB - Enel Generación –PE 2,200 2.36 329,821 0.03 12.2 25.6 2.7 11.00% 0.60 n/a Engie Energia Chile 1,665 1.85 112,641 0.26 7.7 6.0 0.8 14.20% 1.90 BBB Colbun - Chile 3,448 3.53 127,127 0.01 8.0 17.8 1.0 5.50% 2.00 BBB - Enel GX - Chile 5,408 n/a 145,737 0.08 7.1 8.0 2.0 11.00% 1.40 n/a Average 2,866 2.10 148,747 0.13 8.5 13.4 1.6 11.55% 1.87 BBB/BBB -

SLIDE 34

ANALYSTS: 4Q´16

34 34

Sell - Underperfom Neutral - Market Perform Buy - Outperform

PEN / Share

9 8 10 11 12 7

+12.5% in 2016 +12.5% in 2016 ACTUAL Price 9.0 Inteligo Credicorp Larrain Consensus Target price 10.87 10.70 8.8 10.1 Recommendation Buy Underperform Sell

2015 2016 Consensus

SLIDE 35

DIVIDEND PAYMENTS: 622 MUSD since 2004

35

Change in Dividend Policy since 2010: Minimum 30%

* 34 36 42 32 42 28 13 12 15 20 20 24 31 24 43 31 11 13 16 18 22 30 9 41 15

34 77 42 71 85 59 24 25 31 38 42 54 40 10 20 30 40 50 60 70 80 90 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Extraordinary 2nd Half 1rst Half Annual

SLIDE 36

THANKS

36

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

• perations 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.

ENGIE Energía Perú www.engie-energia.pe

• Av. República de Panamá 3490 San Isidro, Lima, Peru

(511) 616 79 79

Investor relations contacts: Rocío Vásquez Head of Corporate Finance & Investor Relations rocio.vasquez@pe.engie.com Eduardo Milligan

CFO eduardo.milligan@pe.engie.com

Investor.relations@pe.engie.com