ENGIE Energa Per September 2016 Highlights Q316: EEP Total - - PowerPoint PPT Presentation

SLIDE 1

ENGIE Energía Perú

September 2016

SLIDE 2

Highlights Q3´16: EEP Total Installed Capacity reached 2,638 MW

2

• September 30th EEP signed an EPC contract with Solairedirect for the construction of its first

solar project “Intipampa” (40MW). EEP won this project on the auction launched by the Peruvian government on February 2016. Under the concession agreement with the Government of Peru, EEP will supply 108.404 GWh to the Peruvian system for 20 years. Expected Commercial Operation Date: Q4 2017

• October 21rst EEP announced the commercial operation of Nodo Energético project. This power

plant (610MW) is located in Moquegua (next to our existing operations in the south) and is a dual fuel (diesel / gas) plant. It is expected to operate with diesel as a back up plant for the system until the gas pipe to the south project is completed. The project started operations 5 months ahead of the scheduled contractual date and total investment cost was below the announced budget.

• EBITDA (9m) increase by 2% with respect to 2015 figures and totalized 256MUSD. The increase

was mainly explained by higher generation and lower expenses that was partially offset by higher fuel costs. Net Result totalized 137MUSD, 3% less than in 2015, mainly as a consequence of higher depreciation and interest expenses.

• In 2016 approx. 975MW of new hydro capacity entered into operation: Cerro del Aguila, a 514

MW hydro power plant started operations in August 2016 & Chaglla, a 461MW hydro power plant started operations in September 2016.

SLIDE 3

AGENDA

3

Section 1

Peruvian Energy Industry

Section 2

Company Overview

Section 3

Strategy

Section 4

Financial Results

Section 5

Capital Structure

SLIDE 4

PERUVIAN ELECTRICITY MARKET

4

Market Growth Clients - MW Installed

~ 5%

Capacity

Average

9,614

Annual

MW

(2010-2015)

Demand SEIN 6,275 MW Production – GWh Market Share % Ilo21 Coal Ilo31 OCGT Nodo Energético Intipampa Solar Ilo1 ChilcaUno CCGT ChilcaPlus CCGT Yuncán HPP Quitaracsa HPP 2,638 MW IN OPERATION 77 MW IN CONSTRUCTION

46% 54%

Free clients Regulated clients

53% 46% 1% 0%

Renewable Natural gas Coal Fuel oil

16% 19% 21% 11% 33%

Peruvian State ENGIE Edegel Kallpa Others Market data source: ENGIE as of December 2015 CCGT: Combined Cycle Gas Turbines | OCGT: Open Cycle Gas Turbines | HPP: Hydro Power Plant.

SLIDE 5

STRUCTURE & ACTORS

5

COES

SEIN

Dispatch Ranking

Administrative Expenses (« SG&A ») Fuel Cost Operational Cost (« Opex ») Capex Energy – Capacity “Dispatched” Energy – Capacity Consumed by EnerSur Clients

CVC/CVNC

CVC: Fuel Variable Cost CVNC: Non-Fuel Variable Cost

SLIDE 6

ELECTRICITY MARKET CONCEPTS

6

Generation Centralized dispatch Spot Price: Zonal, cost-based, calculated every 15 minutes based on the marginal cost to supply demand Volatility on spot price is mainly driven by hydro conditions, gas transport availability, main plants availability and high voltage transmission restrictions If a generation company goes into unbalance it has to go to the spot market Transportation Open access Regulated market 100% Tolls are pass-through costs and are paid by the demand Distribution 100% of the demand must be provided with electricity Regulated market 100% Distribution grid costs are paid by the demand

SLIDE 7

SUPPLY & DEMAND

7

System is based mainly on hydro and natural gas from Camisea Field Electricity demand increased on average 7% annually between 2005 and 2016 (YTD) and is expected

to have an average annual growth of 5-6% between 2016 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

2015 2016 2017 2018 2019 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

2015 2016 2017 2018 2019 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 8

AGENDA

8

Section 1 Peruvian Energy Industry Section 2 Company Overview

Section 3

Strategy

Section 4

Financial Results

Section 5

Capital Structure

SLIDE 9

SPONSOR

9

ENGIE is a world energy leader with activities in 3 sectors: electricity, natural gas, and energy services.

SLIDE 10

OWNERSHIP STRUCTURE

10

• ENGIE (former GDF SUEZ) through International Power SA

has a majority participation and controls ENGIE Energía Perú (former EnerSur) with 61.77% (2 Independent Directors and 5 Directors appointed by ENGIE);

• In February 2004, ENGIE (GDF SUEZ) sold 21.05% of its

participation in ENGIE Energía Perú to the 4 Peruvian Pension Funds (“AFPs”);

• In October 2005, ENGIE Energía Perú listed its shares in the

Lima Stock Exchange (“BVL”);

• On November 24th 2005 ENGIE (GDF SUEZ) launched an

Offering in the local market and successfully sold 17.3% of its stake in THE Company, mainly to Pension Funds and Insurance Cos;

• In April 2012 the Company announced a capital increase

through a preferential subscription after the approval by the General Meeting of Shareholders on February 14th, 2012, by means of new monetary contributions up to the equivalent sum in PEN of 150 MUSD (99.4% in first round...);

• As of September 2016, the Company reported 528

institutional and individual shareholders (375 as of December 2013).

As of 9.30.2016

%

ENGIE 61.77 Integra – Fondo 2 6.83 Prima – Fondo 2 5.47 Profuturo – Fondo 2 5.27 Others 20.66 62% 29% 6% 3% Engie Pension funds Insurance companies Others

SLIDE 11

Total Capacity MW 676 836 1,090 1,068 1,068 1,360 1,820 1,860 1,952 EBITDA MUSD 84 185 134 163 168 188 270 287 321 Net Income MUSD 42 94 66 81 86 101 127 138 181 Dividends MUSD 42 84 59 24 26 30 38 41 54 Market Cap MUSD 645 870 877 1,600 1,200 1,759 2,005 2,075 1,427

HISTORY: OUR BUSINESS

11

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

SLIDE 12

DIVERSIFICATION: OPERATIONS (2,638MW) + PROJECTS (77MW)

12

Nodo Energético Project NTP July 2014 COD : 21rst October 2016 Additional 610 MW

Yuncán Hydroelectric

134 MW

Chilca 1 CCGT (Natural Gas)

852 MW

Chilca 2 OCGT (Natural Gas)

76 MW

Ilo 21 (Coal)

135 MW

Ilo 1 (Diesel, Fuel & Steam)

217 MW Chilca 2 Project NTP 4Q 2014 Estimated Full COD 4Q 2016 Additional 37 MW in CCGT

Ilo 31 Cold Reserve (Diesel & Gas)

500 MW

Quitaracsa Hydroelectric

114 MW Intimpampa Project NTP 2016 Estimated COD 2018 Additional 40 MW CCGT: Combined Cycle Gas Turbines | OCGT: Open Cycle Gas Turbines | HPP: Hydro Power Plant.

SLIDE 13

ORGANIZATIONAL STRUCTURE

13

SLIDE 14

AGENDA

14

Section 1 Peruvian Energy Industry Section 2 Company Overview Section 3 Strategy

Section 4

Financial Results

Section 5

Capital Structure

SLIDE 15

STRATEGY

15

A. Development

• Portfolio Balance: hydro & non-conventional renewables vis-a-vis thermos
• Geographic: diversification and close to our clients
• The Company invested more than 700 MUSD during its first 13 years of operations
• Then, in 2010 we announced investments in 3 new projects with a total capacity of 904MW and an

investment of 1.0 BnUSD

• In 2013 ENGIE Energía Perú was awarded with a contract to build a new 600MW Dual Plant (Diesel/Gas) in

the south of Peru which required an investment of 375 MUSD

• In 2014 announced the construction of a combined cycle plant adding 113MW to existing capacity in Chilca

with a total investment of 130 MUSD. The first phase concluded in IH’2016 adding 76 MW in open cycle and we expect to reach full capacity in combined cycle during the IVQ’2016

• In 2016 was awarded with a contract to build a 40MW solar plant in the south Peru with an estimated

investment of 55 MUSD

• …and we have other projects under analysis (hydro, Open Cycle, Combined Cycle, renewables)

B. Commercial

• Optimum contracting level
• Balanced Portfolio: Regulated Clients (Distribution Companies) vis-a-vis Free Clients
• Power Purchase Agreements under “pass-through” scheme
• Minimize non-manageable risks

C. Financing

• Maintain a strong position for unexpected events and opportunities

SLIDE 16

ORGANIC GROWTH: 2,675MW by 2016

16

• 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 Q3´16 2016 2017 2019 2020

MW

A 3065 MW

374 MW

2715 MW

AVERAGE GROWTH

18%

Hydro & Solar Gas Dual Fuel

I

Investment Plan 1.6 BUSD

B C D E F G K 1068 MW J

• A. 2005

H.P.P. Yuncán 134 MW

• B. 2006

OCGT Chilca 1 TG11 180 MW

• C. 2007

OCGT Chilca 1 TG12 180 MW

• D. 2009

OCGT Chilca 1 TG21 200 MW

• E. 2012

CCGT Chilca 1 TV 292 MW

• F. 2013

Ilo31 Cold Reserve 500 MW

• G. 2015

H.P.P. Quitaracsa 114 MW 2015 Ilo1 TV2 (phase out)

• 22 MW
• H. 2016

OCGT Chilca 2 partial 76 MW

• H. 2016

Nodo Ilo 610 MW I. 2016 CCGT Chilca 2 full 37 MW

• J. 2017

Intipampa Solar 40 MW

• K. 2020

OC Nodo (CCGT option) 350 MW

• A. 2005

H.P.P. Yuncán 134 MW

• B. 2006

OCGT Chilca 1 TG11 180 MW

• C. 2007

OCGT Chilca 1 TG12 180 MW

• D. 2009

OCGT Chilca 1 TG21 200 MW

• E. 2012

CCGT Chilca 1 TV 292 MW

• F. 2013

Ilo31 Cold Reserve 500 MW

• G. 2015

H.P.P. Quitaracsa 114 MW 2015 Ilo1 TV2 (phase out)

• 22 MW
• H. 2016

OCGT Chilca 2 partial 76 MW

• H. 2016

Nodo Ilo 610 MW I. 2016 CCGT Chilca 2 full 37 MW

• J. 2017

Intipampa Solar 40 MW

• K. 2020

OC Nodo (CCGT option) 350 MW Phase-out

2638 MW

H

CCGT: Combined Cycle Gas Turbines | OCGT: Open Cycle Gas Turbines | H.P.P.: Hydro Power Plant.

…

2675 MW

SLIDE 17

NODO ENERGETICO - ILO PROJECT IN OPERATION +610MW

17

October 21st EEP announced the commercial operation of Nodo Energético project. The project started operations 5 months ahead of the scheduled contractual date, two months before budget and below budget

Key facts

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

existing operations)

• Description is a dual fuel (diesel / gas) plant It is expected to operate with diesel as a

back up plant for the system until the Gas Pipe to the South Project, currently under construction, is completed. Besides the 3 Turbines Generators, the project includes the construction of a 75km of 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. PPA Contract under Investment Agreement for 600 MW at 5.75 USD/kW-month
• Development & construction: Construction was successfully finished in 23 months

Main partners were Técnicas Reunidas/JJC (Plant) & Abengoa (TL)

• Financing through Financial Leases for 290 MUSD with BCP and BBVA
• Health & Safety: record of 3.4M of man hour 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 18

PROJECTS IN CONSTRUCTION +77MW (Q3´16 - 2017)

18

Chilca 2 Combined Cycle Project

+113 MW

The Chilca 2 Combined Cycle Project consists in one gas turbine and one steam turbine with a combined capacity of 113 MW. Construction next to the existing facilities of Chilca 1 plant. Full Notice to Proceed was given to EPC contractor on February 24th 2015. Total investment is estimated in 130

• MUSD. The first turbine reached COD in open cycle in May 2016 with 75.5 MW.

Expected Full Commercial Operation Date (COD) in CCGT: 4Q 2016 Phase of Development:

• EPC contract signed with Duro Felguera / Limited Notice to Proceed Oct’ 14 / Full

Notice to Proceed Feb’ 15

• PPA Contracts (capacity to be contracted as part of commercial portfolio)
• Financial Leases for 125 MUSD signed with BBVA

Intipampa Solar Project +40 MW 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 the south of Peru. ENGIE Energía Perú won a bid to build and operate a 40 MW delivering to the system 108.404 GWh/year. The project is backed by an investment agreement with the Ministry

• f Energy and Mines. Intipampa project shall reach commercial operation before end of

2018 and commercial contract will end in 2038 (approx. 20 years). Total investment estimated in 55 MUSD. Expected Commercial Operation Date (COD): Q4 2017 Phase of Development:

• EPC signed with Solairedirect (30th
• PPA Contract under investment agreement for 108.404 GWh/year MW at 48.5

USD/MWh.

• Financing structure under evaluation (inside Balance Sheet)

SLIDE 19

CAPEX PLAN: 2010 - 2018

19

BEST ESTIMATE AT COD

1.6 BnUSD

BEST ESTIMATE AT NTP

1.4 BnUSD

15% Cost Overrun

MUSD Construction (2010-2018) MUSD

∆

Chilca 1 CCGT

350 2010 2012 320

+30 Cold Reserve Ilo31

250 2011 2013 220

+30 Quitaracsa HPP

250 2011 2015 539

(289) Nodo Energético Ilo

400 2014 2016 375

+25 Chilca 2 CCGT

130 2014 2016 130

• Intipampa Solar

55 2016 2018 55

SLIDE 20

DEVELOPMENT OPPORTUNITIES

20

A. Improve Operational Efficiency of existing assets

• Yuncán HPP: Huangush Bajo
• Ilo21: Development of export/import services in existing 1.2 km jetty
• Optimization of Fuel storage facilities

B. Renewables & Cogeneration

• Wind, Solar, Biomass, Cogen

C. Mapping new Hydroelectric Power Projects

• Mapping potential sites to build new hydroelectric power plants
• Total Investment during development phase of approx. 8 MUSD

D. Natural Gas

• Gas to South Option, conversion of Cold Reserves to Natural Gas
• Ilo21 Coal Plant: Conversion to Natural Gas when gas arrives to the south
• Gas to Power business in the North

E. M&A Opportunities: Solar, Wind, Hydro and Natural Gas

SLIDE 21

PROJECTS IN DEVELOPMENT: GAS TO SOUTH OPTION

21

A. Phase 1: convert existing 500 MW Cold Reserve Ilo31 + 610MW Nodo Energético diesel units to Natural Gas

• Cold Reserve: Option granted under the

existing concession contract after year 5 (2018)

• Nodo

Energético: Option granted

• nce

Natural Gas arrives to the South (2020)

• Similar operation to Chilca 1 plant before it

was converted to Combined Cycle B. Phase 2: convert 1100 MW Natural Gas units (Cold Reserve+Nodo Energético) to Combined Cycle

• Similar operation and economic impact of Chilca 1 Combined

Cycle Project adding approx. 550 MW of additional capacity to reach 1,650 MW …

SLIDE 22

AGENDA

22

Section 1 Peruvian Energy Industry Section 2 Company Overview Section 3 Strategy Section 4 Financial Results

Section 5

Capital Structure

SLIDE 23

KEY MESSAGES 2016

23

Market:

975MW of new hydro capacity enter in operations in August / September 2016 On average, marginal cost at similar levels than 2015. Specific incidents with some thermal units caused some temporary increases

in June/ July Operation:

Ilo1 and Ilo 21 were dispatched (+700GWh) and received capacity revenues from the system Reduction of oil and coal prices negatively impacted results

Commercial:

We signed new PPAs with free and regulated clients. Commercial Portfolio is highly contracted until 2021-2022

Expenses:

Successful execution of the optimization plan to reduce G&A, O&M and financial expenses Net Result could be impacted by a potential increase in Peruvian income tax rate

Financing:

Successful issuance of approx. 76 MUSD in the local capital market @ 10-years bullet & USD fixed interest rate of 3.38%

Projects:

Nodo Energetico project reached commercial operation date (“COD”) on October 2016, 5 months ahead of concession due date,

adding 610 MW of installed capacity to our portfolio

Construction of Chilca 2 under track on budget, timing and performance ENGIE signed an EPC contract with Solairedirect for the construction of Intipampa, its new solar project located in Moquegua

• region. ENGIE won a bid to build and operate a 40 MW solar plant delivering to the system 108.404 GWh/year. The project is

backed by an investment agreement with the Ministry of Energy and Mines and the investment is estimated in 55 MUSD

SLIDE 24

MAIN INDICATORS Q3´16

24

Financial results as of September show a small increase in EBITDA, although higher depreciation and financial expenses resulted in lower Net Income.

• EBITDA decrease -7% in Q3´16 compared to Q3´15 mainly explained by a higher marginal costs due to unexpected

events in the market and the optimization of PPAs which had a positive effect in Q2´16.

• The decrease in the operating margin was partially compensated with a reduction in Expenses (SG&A & Opex).
• Net Result decreased by 16% compared to Q3´15 explained by lower EBITDA, higher financial depreciation and higher

financial expenses.

Summary of Financial and Operational Indicators

(in millions of USD) 2016 (9M) 2015 (9M) 2014 (9M)

• Chg. 2016 /

2015 3Q16 3Q15 3Q14

• Chg. 2016 /

2015

Revenues

564 527 457

7%

186 181 147

3%

EBITDA

256 251 218

2%

74 80 72

• 7%

Net Income

137 142 107

• 3%

35 42 35

• 16%

Total Debt

987 859 760

15%

987 859 760

15%

Net Generation GWh

5,886 5,078 5,125

16%

2,143 1,705 1,754

26%

Clients Demand GWh

6,831 6,462 5,609

6%

2,166 2,174 1,752

0%

SLIDE 25

PRODUCTION AND ENERGY BALANCE 3Q´16

25

Growth in net generation and contracted Level with clients in line with commercial

• peration of new efficient generation plants and commercial efforts…

GWh

2015 (9M) 2016 / 2015 3Q'16 / 3Q'15

Yuncán HPP

898

14%

948

13%

921

12%

901

10%

690 587

9%

• 15%

153

7%

134

6%

• 12%

Quitaracsa HPP

0% 0% 0%

88

1%

372

5%

• 0%

70

3%

• Chilca1 CCGT

4,222

68%

5,771

78%

5,979

80%

5,838

66%

4,339 4,101

60%

• 5%

1,496

69%

1,566

72%

5%

Chilca2

133

2%

• 0%

53

2%

0%

Ilo21 (Coal)

556

9%

837

11%

163

2%

248

3%

46 582

9%

1156% 23

1%

266

12%

1066%

Ilo1 (Diesel)

106

2%

130

2%

30

0%

62

1%

26 193

3%

632% 17

1%

81

4%

• Ilo31 (Cold Reserve)

0%

5

0%

5

0%

35

0%

24 91

1%

279% 17

1%

49

2%

• Nodo Energetico (Cold Reserve)
• 13

0%

• 13

1%

• Importaciones (Ecuador)

21

0%

• 0%

8

0%

• Auxiliaries
• 255
• 4%
• 188
• 3%
• 212
• 3%
• 100
• 1%
• 48
• 207
• 3%

327%

0%

• 97
• 4%

75402%

NET GENERATION

5,528

89%

7,502

101%

6,887

92%

7,072

81%

5,078 5,886

86%

16% 1,705

78%

2,143

99%

26%

COES: NET

691

11%

• 109
• 1%

609

8%

1,711

19%

1,385 945

14%

• 32%

469

22%

23

1%

• 95%

CLIENTS DEMAND

6,219

100%

7,393

100%

7,496

100%

8,783

100%

6,462 6,831

100%

6% 2,174

100%

2,166

100%

0%

2012 3Q 2016 3Q 2015 2013 2014 2015 2016 (9M)

SLIDE 26

EBITDA GROWTH: record EBITDA in 2015

26

• 50

100 150 200 250 300 350 400 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

MUSD

AVERAGE GROWTH

13% 321

MUSD

▲

OC TG11 ChilcaUno

2006.12

OC TG12 ChilcaUno

2007.07 ▼

Indexation

▼

▲

OC TG21 ChilcaUno

2009.08

▲

CCGT ChilcaUno

2012.11

Cold Reserve Ilo31

2013.06 ▼

Quitaracsa HPP

2015.10 ▼

SLIDE 27

NET RESULT GROWTH: record Result in 2015

27

• 25

50 75 100 125 150 175 200 225 250 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

MUSD

AVERAGE GROWTH

14% 181

MUSD

▲

OC TG11 ChilcaUno

2006.12

OC TG12 ChilcaUno

2007.07 ▼

Indexation

▼

▲

OC TG21 ChilcaUno

2009.08

▲

CCGT ChilcaUno

2012.11

Cold Reserve Ilo31

2013.06 ▼

Quitaracsa HPP

2015.10 ▼

SLIDE 28

COMMERCIAL PORTFOLIO: CONTRACTS (>30MW) PROVIDE A STABLE CASH FLOW FOR THE FUTURE

28

Antamina Las Bambas Cerro Verde Cajamarquilla SPCC Lic LP 2009-04 Lic LP 2009-03

Lic LP 2009-06

Lic LP 2009-01 Bilateral M.Regul… Bilateral M.Libre

50 100 150 200 250 300 350 400 450 2 4 6 8 10 12 14 16 18

Contracted Capacity (MW) Years to Maturity

Clientes Libres

Clientes Regulados

FREE CLIENTS REGULATED CLIENTS

SLIDE 29

467 663 1,020 793 839 1,602 1,187 1,759 2,005 2,075 1,427 1,767 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

STOCK PRICE PERFORMANCE

29

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

Source: SMV, Lima Stock Exchange, Financial Statements as of September 30th 2016. 2016 partial dividends based on results as of June 2016 Financial Market Data as of Sep’16 Number of shares issued 601,307,011 Share price (PEN) 10.00 Market Cap (MUSD) 1,767 Enterprise Value (EV) (MUSD) 2,665 EV / EBITDA 8.2x Price to Book Value (P/B) 1.8x Price / Earnings ratio (P/E) 10.0x

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

Market Cap Net Result Dividends

SLIDE 30

ANALYSTS: 3Q´16

30 30

Sell - Underperfom Neutral - Market Perform Buy - Outperform

PEN / Share

Upside +6% Upside +6%

9 8 10 11 12 7

Consensus 10.63

Price as of IH’16 8.65 +16% in Q3´16 +16% in Q3´16 ACTUAL Price 10.00

SLIDE 31

34 36 42 32 42 28 13 12 15 20 20 24 31 24 43 31 11 13 16 18 22 30 41 15 77 71 85 59 24 25 31 38 42 54

10 20 30 40 50 60 70 80 90 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Extraordinary Second Semester First Semester Annual

DIVIDEND PAYMENTS: 612 MUSD since 2004

31

Change in Dividend Policy since 2010: Minimum 30%

* Dividends corresponding to H1 2016 Results will be paid in December 2016

*

SLIDE 32

RECENT AWARDS

32

Recognized by Euromoney as “Best Managed Company

• Utilities” in Latin

America Recognized by the National Environmental Supervisor (OEFA) for best environmental practices Designated in MERCO 2015 ranking as best Company in corporate reputation in the Peruvian electricity industry Recognized in 2016 by Capital Finance International – CFI.co as “Best ESG Power Producer Peru

SLIDE 33

AGENDA

33

Section 1 Peruvian Energy Industry Section 2 Company Overview Section 3 Strategy Section 4 Financial Results Section 5 Capital Structure

SLIDE 34

MAIN FINANCIAL OBJECTIVES

34

Keep ratio Senior Financial Debt to EBITDA during construction of projects around 3.25x and maintain a AAA

local rating to keep access to the local capital and bank market at low costs;

Maintain open access to local bank and capital market for non-recourse financing and equity funding

capabilities to finance current and future projects;

Allow a minimum dividend pay-out ratio of 30% during years with high CAPEX and monitor increase in dividend

policy in line with higher cash flows after COD of new projects;

Maintain financial flexibility for unexpected events and opportunities MUSD 2012 2013 2014

2015 2016 (9M) Cash 97 25 29 52 88 Current \ other Assets 102 196 169 169 225 Fixed Assets (PP&E-net) 1,015 1,162 1,380 1,673 1,781 Other non-current assets 131 135 146 159 160 Total Assets 1,345 1,518 1,724 2,053 2,254 Other liabilities 131 153 180 228 280 Senior debt 504 726 808 954 987 Subordinated debt 160

• Shareholders’ equity

550 639 736 871 987 Total Liabilities & Equity 1,345 1,518 1,724 2,053 2,254

Balance Sheet

SLIDE 35

FUNDING STRATEGY 2010-2018

35

CAPEX plan driven by 6 projects for a combined investment of approx. 1.6 BnUSD

Uses (Development Projects) MUSD Sources MUSD Chilca 1 Combined Cycle - CCGT (+292MW) 320 Financial Lease Chilca 1 - CCGT 300 Cold Reserve Project Ilo31 (+500MW) 220 Financial Lease Cold Reserve Ilo31 200 Quitaracsa HPP Project (+112MW) 512 Other Senior Products (Bonds, Loans) 342 Nodo Energético Ilo Project (+600MW) 400 Financial Lease Nodo Energético Ilo 290 Chilca 2 (+113MW) 130 Financial Lease Chilca 2 - CCGT 125 Intipampa Solar (+40MW) 55 Capital Increase & Change in Dividend policy 380 Total ~1,637 Total ~1,637

Dividends In 2010 the General Shareholders Assembly approved a reduction in the dividend payout ratio from 90% to a minimum of 30%. The policy will be kept during the construction of these projects ~2017. Equity Increase An equity increase was approved in 2012 by the General Shareholders Assembly: 100% of shareholders subscribed the new shares.

SLIDE 36

FINANCIAL DEBT STRUCTURE AS OF Q3´16

36

Lender Type Currency Facility O/S Initial Date Maturity Date Rate Reference BCP Short Term MPEN 237 70 2015 2016 5.29% Short Term Synthetic Loans . Implicit Rate 0.02% Local DCM Bullet Bond MPEN 121 36 Nov 2007 Nov 2017 6.81% 1° Issuance 1° - XC SWAP w/ Citibank. Int. Rate 5.755% Local DCM Bullet Bond MPEN 84 25 Jun 2008 Jun 2018 7.19% 2° Issuance 1° - XC SWAP w/ Citi. Int. Rate 6.1690% Local DCM Bullet Bond MUSD 10 10 Jun 2008 Jun 2028 6.31% 3° Issuance 1° Local DCM Bullet Bond MPEN 250 74 Jun 2016 Jun 2026 7.125% 1° Issuance 3° - XC SWAP w/ BCP Int. Rate 3.380% Local DCM Bullet Bond MUSD 25 25 Dec 2010 Dec 2025 6.50% 6° Issuance 1° Local DCM Bullet Bond MPEN 42 12 Dec 2010 Dec 2020 7.59% 7° Issuance 1° - XC SWAP w/ BBVA. Int. Rate 5.9738% BCP

• F. Lease

MUSD 300 139 Jun 2010 Dec 2019 6.6700% Financial Lease Chilca 1 CCGT BBVA

• F. Lease

MUSD 105 49 May 2011 May 2019 5.70% Financial Lease Cold Reserve Ilo31 BCP

• F. Lease

MUSD 93 43 May 2011 May 2019 5.70% Financial Lease Cold Reserve Ilo31 BBVA

• F. Lease

MUSD 135 135 Jul 2014 Nov 2021 4.90% Financial Lease Nodo BCP

• F. Lease

MUSD 128 128 Jul 2014 Nov 2021 4.90% Financial Lease Nodo BTMU / SMBC Semi-Bullet Loan MUSD 100 100 Jun 2014 Jun 2020 L (3M) + 1.00% Medium Term Loan BBVA

• F. Lease

MUSD 99 99 Oct 2014 Jan 2023 4.20% Financial Lease Chilca 2 – Under Construction Scotiabank Amortizing Loan MPEN 238 44 Dec 2015 Dec 2017 6.15% MUSD 70 - Synthetic Loan. Implicit Rate 0.84% Total MUSD 1,280 987

MUSD

Debt Repayment Profile

135 163 157 98 87 33

• 40

30 15 25 76 10 35 50 50

• 50

100 150 200 250 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Financial leases Bonds Corporate loans

SLIDE 37

170 17% 817 83%

Debt Composition by Interest Rate (MUSD)

Floating Rate Fixed Rate 260 26% 727 74%

Debt Composition by Currency (MUSD)

PEN + XCSY USD

LIMITED EXPOSURE TO FX AND INTEREST RATE VARIATIONS…

37

• 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. 987 987

SLIDE 38

VALUE CREATION

38

A. Development:

• Committed investments for approx. 700 MUSD between 1997 and 2009, and 1.6 BnUSD between 2010

and 2018 including the 113 MW expansion in Chilca and newly awarded 40 MW solar plant in the south of Peru.

B. Implementation:

• During 15 years of operations run the successful construction of a new coal plant, operation of Yuncán HPP,

construction of three open cycles, one steam turbine to close those cycles

• Cold Reserve reached COD by the end of June 2013 (before concession date of September 2013)
• Quitaracsa HPP reached COD in October 2015 adding 114 MW of efficient installed capacity
• Nodo Energético project reached COD in October 2016 adding 610MW to EEP portfolio

C. Operation:

• ENGIE Energía Perú secured Natural Gas Firm Capacity with TGP for its total needs
• Contracted level and duration of PPA portfolio consistently increased between 2010 and 2015 in line with the

additional efficient capacity (Antamina, Las Bambas, Regulated Clients)

D. Capital Structure: Sound financial performance and value creation for its shareholders. Commercial strategy

and development of new projects will allow to double EBITDA and cash generation in the mid term compared to 2010.

E. New Developments: will continue developing additional alternatives to support Peru’s growth, mapping new

hydroelectric and other renewable technologies, adding additional cold reserve capacity and due to its position in the south preparing to convert its new diesel units to natural gas when gas arrives to the south.

SLIDE 39

THANKS

39

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