ENGIE ENERGA PERU S.A. Investor Presentation September 2019 - - PowerPoint PPT Presentation

September 2019

ENGIE ENERGÍA PERU S.A. Investor Presentation

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SNAPSHOTS

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BUSINESS LINE – CLIENT SOLUTIONS BUSINESS LINE – RENEWABLES BUSINESS LINE – NETWORKS BUSINESS LINE – THERMAL Decentralized organization: 24 business units; 4 business lines

Capacity breakdown

88% low CO2

Natural gas Renewables(2) Nuclear Coal Other

5% 7% 6% 27% 55%

104 GW(1)

Revenue breakdown

37.1 3.4 4.6 4.0 7.0 4.5

Europe North America Latin America Africa & Asia GEM Other

€ 60.6bn(3)

EBITDA breakdown

5.7 0.2 1.8 1.1 0.2 0.2

Europe North America Latin America Africa & Asia GEM Other

€ 9.2bn(3)

(1) At 12/31/2018, at 100% (2) Including pump storage for hydro (3) 2018 Consolidated

Focus on 20 countries, 30 urban areas, 500 global clients CAPEX 2019-2021: € 12bn & 9GW in renewables Supporting our clients in their zero-carbon roadmap

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22 years operating in the country & listed since 2005

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Low Co2 generation base Leading player of the sector (by installed capacity) Diversified & decentralized asset base across 4 regions

#2

282 km of transmission lines + 1 substation

Natural Gas; 963; 39% Hydro; 248; 10% Dual fuel; 1110; 44% Coal; 135; 5% Solar; 40; 2%

2,496MW

Chilca Complex

• ChilcaUno – (2006 – 2012)

852MW - Natural Gas

• ChilcaDos – (2016)

111MW - Natural Gas Ilo Complex

• Ilo41 (2016, Nodo)

610MW - Dual Fuel

• Ilo31 (2013, Cold Reserve)

500MW - Dual Fuel

• Ilo21 (2000)

135MW - Coal Intipampa (2018)

• Solar 40MW

Yuncán (2005)

• Hydro 134MW

Quitaracsa (2015)

• Hydro 114MW

Value added customer solutions

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Early steps

• Yuncán (2005): Hydro - 134MW - Cerro de Pasco – 30-year usufruct from Activos Mineros (2035)
• Quitaracsa (2015): Hydro - 114MW - Huaraz

Recent Development

• Intipampa (2018): Solar Power Plant - 40MW – Moquegua, backed by a 20-year Investment Agreement

with Ministry of Energy and Mines @48.5$/MWh until 2038

Next steps

• Punta Lomitas: Wind - 260MW - Ica - Expected EIA by end of 2019
• Hanaqpampa: Solar - 300MW - Moquegua - Temporal concession (currently being studied)
• Expansion of Intipampa: Solar - currently being studied
• Various other non-conventional renewable projects at different stages in the pipeline

Electric Mobility and Smart Cities early stages

• 100% electric bus for Peruvian Mining
• Electric Car – 1st electric cab in Arequipa / Alliance with Peugeot and ALD for Electric Vans
• Solar bench (San Isidro, Panamericanos games)

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RECENT EVENTS

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Cerro Corona mine (Goldfields) personnel transport (Cajamarca) EV Box Chargers at 3,998 MASL (Highest in the world)

44-day bus test between camp site and mine Total travel: 7,278 km (165 km/day) Operational cost 87% lower than conventional bus CO2 emission reduction: 54.5 kg/day Note: The bus has been used in Panamerican Games and Perumin

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Corporate Governance

In July, for second year in a row, ENGIE Energía Perú has been recognized by “Bolsa de Valores de Lima” and is again a member of the Good Corporate Governance Index (IBGC), which recognizes Peruvian companies with best corporate governance, transparency, equity practices, information integrity and social responsibility.

Panamerican Games

With the objective of raising awareness among the spectators and visitors of Lima 2019 about the importance

• f solar energy and electric mobility in the country's

sustainability, ENGIE joined as Official Sponsor of the Panamerican and Parapanamerican Games Lima 2019, with solar benches in different sites of the games.

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OUR CLIENTS OUR ASSETS AND PROJECTS OUR RATINGS OUR SHAREHOLDERS

• PPA addenda & new contracts

Nearly 100MW of new contracts in 2019

• 7.7-year weighted average life PPA

New PPAs start in H2 2019, 2020 and 2021

• Fitch: AAA Stable Outlook

April 2019

• Moodys AAA Stable Outlook

May 2019

• Final dividend 2018

US$ 64 million (pay-out 58.8%)

• 40MW Solar

PV

Intipampa – March 2018

• ~260MW Wind

Punta Lomitas Project – EIA by end of 2019

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KEY MESSAGES

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SOLID RESULTS IN A VOLATILE CONTEXT

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• At the end of H1 2019 total debt decreased to

671MUSD a 8.0% decrease from December 2018 according to our amortization schedules

• Active participation in the local debt capital markets
• 2023 Corporate Loan with Scotiabank for up to

150MUSD @3.3%

• Net debt / EBITDA (12m): 2.2x @ Jun/2019

Awards/ Recognition

• In July, because of its recognized standards of

transparency and corporate governance, ENGIE was recognized for second consecutive year in the BVL Good Corporate Governance Index

• Recognized by “Premio Proactiva” for 100%

electric bus

Industry & regulation

• FY 2018 EBITDA reached 278.7MUSD while Net

Result totalized 108.3MUSD decreasing 15% and 16% compared to FY 2017

• H1 2019 EBITDA reached 151.0MUSD, increasing 4%

compared to H1 2018 while Net result totalized 65.7MUSD increasing 9% compared to H1 2018

• During 2019 EEP announced 100% electric bus for

mining, Panamerican Games, Perumin

Our business

• Total energy generation (SEIN) grew 4.9% in H1

2019 compared to H1 2018. As of June, EEP maintained a leading position in the sector, accounting for 19.8% of the total capacity and 10.7%

• f the total energy generation of the system
• Natural gas price declaration norm was modified in

January 2018 (floor price)

• The Executive created the multisectoral commission

for the reform of the regulatory framework of the electricity sector

Financial discipline

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▪ H1 2019 EBITDA reached a 4% growth compared to H1 2018, explained by a positive effect of the marginal cost, the sale of non-core assets and a decrease of Other income ▪ Q2 2019 EBITDA reached 70MUSD, a 3% decrease compared to Q2 2018, explained by a decrease of Other income ▪ Total debt decreased by 15% from June 2018, following the expected amortization schedule, a total of 671MUSD

* Restatement by application of IFRS ** Does not include commercial penalty fees and impairment of assets

(MUSD) Q2 2019 Q1 2019 Q2 2018 ∆ Q2 2019 vs Q2 2018 H1 2019 H2 2018 H1 2018 ∆ H1 2019 vs H1 2018 FY 2018* FY 2017* ∆ FY Revenues 135 132 127 6% 267 265 256 5% 521 577 -10% EBITDA 70 81 72

• 3%

151 134 145 4% 279 329 -15% Net Result 30 36 30

• 2%

66 48 60 9% 108 129 -16% Recurrent EBITDA** 70 81 72

• 3%

145 117 145 0% 261 302 -13% Net Recurrent Result** 30 36 30

• 2%

62 33 60 3% 93 110 -15% Total Debt 671 700 787

• 15%

671 777 787

• 15%

731 837 -13% Net Debt 617 612 729

• 15%

617 711 729

• 15%

656 800 -18% Net Generation GWh 1,524 1,229 831 84% 2,753 3,645 1,545 78% 5,190 7,624 -32% Clients Demand GWh 2,158 2,119 2,152 0% 4,277 4,255 4,268 0% 8,523 8,358 2% Net Debt / EBITDA 12m 2.2 2.1 2.8

• 24%

2.2 2.7 2.8

• 24%

2.4 2.4

• 3%

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Antamina 170MW 18 year (2015 – 2032) NEXA Group 232MW 2 year + 10 month (2017 – 2019) Quellaveco 150MW 9 year + 4 month (2020-2029) Enel 292MW 10 year + 5 month (2014 – 2030) Marcobre 84MW 15 year (2019 – 2034) Yura 62MW 7 year y 4 month (2016 – 2025) Yanacocha 60MW 4 year + 2 month (2016 – 2020) Enel Bilateral 2018 200MW 5 year (2021 – 2025) Luz del Sur 323MW ~11 años + 6 meses (2014 – 2030) Other DisCos 340MW ~7 year Other Free Clients 373MW ~5 year Gloria 33MW 8 year + 8 month (2017 – 2025) Volcan 49MW 6 year (2018 – 2023) Cerro Verde 58MW 6 year (2016 – 2021)

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

Capacity Contracted (MW) Years

Note: i) In addition, we have a 30 year, 35MW PPA with Anglo American Quellaveco, ii) we have included the addendums with Distribution Companies in the graph, iii) 2019 fully contracted strong commercial strategy to maintain our efficient portfolio contracted, iv) Quellaveco and Marcobre are rumping up from 2020/2021

7.7 Years weighted average PPAS

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• 10

20 30 40 50 60 70 80 90 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q2'17 Q3'17 Q4'17 Q2'18 Q3'18 Q4'18 Q2'19

Increasing number of clients

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✓ Limited spot market risk

• Fully contracted capacity for 2019 and 83% on average

for 2020-2021

• Weighted average PPA life of 7.7 years, new PPAs to

start in 2019, 2020 and 2021

• Most of EEP´s contracts do not include termination

clauses

✓ Strong credit profile

• +50% of portfolio investment grade clients & +70%

above BB- (Or local equivalent) in terms of sales

✓ Low commodity risk

• Indexation ~65% of portfolio to Natural Gas prices in line

with generation costs

37% 63%

Balanced portfolio (MW)

Regulated Free clients

✓ Diversification

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Our portfolio & contracts

+ 380 MW1 new contracts in 2017 + 57 MW1 new contracts in 2018 + 98 MW1 new contracts in 2019 Number of clients grew from 80 (2018) to 84 (H1 2019)

Main commercial pillars

• 1. Value → quality and new services
• 2. Relationship plan with clients and

new projects

• 3. Internal reorganization to respond

quickly to market

• 4. Continuous communication with

authorities, market and media

+5%

AGRESSIVE COMPETITORS

The market

SLOW GROWING DEMAND REGULATORY UNCERTAINTY

1- Includes new contracts with free clients and existing expansions

GROWTH POTENTIAL

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FINANCIAL UPDATE

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+6 +6.0 .0

OPEX, SG&A,

• ther

Sufficiency capacity costs Average realized monomic prices (net)

Renegotiations  fuel prices 

• ther 

Other

• perating

income Average Energy purchase price +145.0 +5.8 +7.4

• 0.1
• 7.1

+151.0 +133.8

EBITDA H1 2018 EBITDA H1 2019 EBITDA H2 2018

+ 4% + 13%

Marginal cost reduction mainly by Positive impact by LNG pipeline event in 2018 Non-Recurrent Events 2019 Sales of inventory and non core assets By effect In US$ millions Other Income/ Expenses Negative impact by Jetty contract (mainly one- shot initial payment) and penalties executed to contractors and liquidations of provisions made in 2018

Marginal cost reduction explains EBITDA improvement

Energy Margin

+ 13%

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+48.0 +60.3

• 2.5

+6.0

• 0.2

+3.4 +1.0

• 2.3

+65.7

Net Result H1 2018 Net Result H1 2019 Net Result H2 2018

+5 +5.4 .4

+ 9% + 37%

EBITDA By effect In US$ millions Tax effect mainly explained by higher EBT

Increase in operating result and lower financial expenses have driven net result improvement

Non-Recurrent events Tax related to non recurrent events Depreciation & Amortization Net Financial Expenses Lower

• utstanding debt

Foreign Exchange Net Result H1 2018

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671 MUSD By Currency By Source

Net Debt / EBITDA Debt Breakdown - As of June 2019 Credit Rating – Apr 2019

AAA.pe Stable 30/04/2019 AAA.pe Stable 22/05/2019

Local capital market as an important partner

• First program for up to 400MUSD started in 2007 with total

issuances of ~150MUSD (outstanding ~75MUSD)

• Third program for up to 500MUSD started in 2015 :
• 2016 → 1st issuance of 250MPEN @ 7.125% (10 yr)
• 2017 → 2nd issuance of 79MPEN @ 6.0% (7 yr)
• 2017 → 3rd issuance of 251MPEN @ 6.53% (10 yr)
• 2018 → 4th issuance of 230MPEN @ 6.7188% (10 yr)

54% 46% 32% 44% 24%

2.8x 2.6x 2.4x 2.5x 2.6x 2.8x 2.7x 2.4x 2.1x 2.2x 904 872 792 800 763 729 711 656 612 617 323 341 327 325 290 256 258 279 287 285

• 1

2 3 4 5 6

Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Net Debt/EBITDA Net Debt EBITDA LTM

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(June 2019)

MUSD

• Avg. LT cost of debt of 4.3%

@ ~3.9yr duration

45 90 80

• 24
• 76

76 70

• 11

50 100

• 13

25 10

• 50

100 150 200 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Financial leases Bonds 3rd Program Corporate loans Bonds 1st Program

• Total debt reached 671MUSD as of June 2019, decreasing 8.2% from December 2018 (731MUSD), following expected

amortization schedule

• Latest issued debt (Average fixed cost of 3.67% and average life of 7 years):
• 100MUSD in local capital markets ( 7 – 10-year bonds) → @ average cost of 3.4%
• 150MUSD through a 5.5-year Corporate Loan → @ average cost of 3.25%
• 70MUSD in local capital markets (10-year bonds) → @ average cost of 4.9%

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Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 75 80 85 90 95 100 105 110 115 Indice S&P_BGC Indice S&P_BVL EEP

SHARE PRICE EVOLUTION

20 20 24 31 33 18 18 22 30 19 16 46 38 42 54 49 49 64 30% 31% 30% 38% 38% 59% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 2015 2016 2017 2018

• 10

20 30 40 50 60 70 80

1st Half 2nd Half Payout

DIVIDENDS PAID

In MUSD August 29, 2019 EEP: S/ 6,75 2,005 2,075 1,427 1,611 1,351 1,042 1,194 1.9% 2.0% 3.8% 3.1% 3.6% 6.1%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

2013 2014 2015 2016 2017 2018 2019.08

• 500

1,000 1,500 2,000

Market Cap Dividend Yield %

MARKET CAP & DIVIDEND YIELD

In MUSD August 1, 2018 EEP: S/ 6,76 Source: Bloomberg ENGIE 61.8% AFP´s (Peruvian pension funds) 33.4% Others 4.9%

Shareholders %

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NEW PPA WITH DISTRIBUTION CO’S CUSTOMER SOLUTIONS CAPITAL STRUCTURE & LEAN PROGRAM EFFICIENT PORTFOLIO ASSET DIVERSIFICATION NEW PROJECTS

CLIENTS AND OPERATION DELIVERY AND DEVELOPMENT

LEADERS IN ENERGY TRANSITION PPA PORTFOLIO EXTENSION

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ENERGY MARKET UPDATE

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Source: COES 2019

By 2022, the Reserve Margin back to 2014 levels COES Forecast

6,746 7,620 8,340 9,248 10,150 12,774 12,508 13,052 13,224 13,353 13,456 13,466 13,466 13,466 13,466 4,961 5,291 5,575 5,737 6,332 6,492 6,559 6,885 7,103 7,676 7,974 8,525 8,900 9,295 10,124

• 2,000

4,000 6,000 8,000 10,000 12,000 14,000 16,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Installed Capacity (MW) Maximun Demanda (SEIN) 36% 44% 50% 61% 60% 97% 91% 90% 58% 86% 74% 69% 33% 45% 51% Reserve Margin

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Natural Gas

• Gas price declaration from July 2019 to June 2020 with a minimum gas price being the

variable price of the gas supply (other than the take or pay which is a fixed cost)

• New proposal of other agents:

i) Audited cost system ii) Supply price (S) as a possible alternative

• Non-conventional Renewable Energy (NCRE) expected to generate 15% of energy by 2030
• MINEM working on a proposal in order to make NCRE more competitive. As from September

2019 NCRE has firm capacity

• NCRE can reach a firm capacity greater than Zero

(approximately 60% for wind and 1% and 2% for solar)

Natural Gas Non-conventional Renewable Energy

• OSINERGMIN published a new procedure proposal for monitoring the operational

inflexibilities of SEIN thermal-generation units

• In case a thermal-generator does not present its “Informe Técnico Sustentatorio - ITS ”,

OSINERGMIN will assign it reference values (similar values of local/international units)

• Operational flexibility has two impacts: i) higher O&M costs, and

ii) higher spot energy prices (wet season)

Operational Flexibility

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Distribution companies (DISCOS)´S CASE

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Natural Gas

Background

• Distribution companies (DisCos) are obliged to contract 100% of their expected demand

through long term contracts and at least 3 years in advance

• Regulated clients: lower demand explained by clients migration from regulated to free market

and lower GDP’s growth

• As of 2018, 930MW of those clients had converted into free clients
• DisCos are over contracted (around 780MW) until December 2021

Actions

• MINEM published a “Decreto Supremo” in December 2018 authorizing the modification of

the long-term contracts with the DisCos under the supervision of OSIGNERMIN:

• DisCos and GenCos agreed to:

i) Enter into an option agreement to extend existing PPAs for a certain volume and at the current prices, at the sole discretion of the GenCos ii) Sign a PPA extension, valid as from the moment the option is executed by the GenCo

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Themes Description

From Jul 2019 to Nov 2019

Natural Gas Price declaration

• Several actors have expressed their opinion about the low level of

energy spot prices, which is a consequence of the over supply situation

• There are contractual inflexibilities for the GN Supply, Transport and

Distribution

• There is a NG secondary market

From Jul 2019 to Jan 2020

Promotion of non-conventional renewable energies (NCRE) in isolated areas (non- interconnected)

• There is no incentive to build NCRE in isolated systems, which allows

diversifying the energy matrix throughout the country

Regulations applicable to Rural Electrification

• The General Law of Rural Electrification (D.L. N° 1207) was modified

in order to guarantee the expansion of the rural electricity frontier and the supply of electricity with quality, safety and sustainability standards, extending the destination of resources for rural electrification

Discount rate update

• The update rate has not changed since 1992 (12%)
• The economic conditions to access the capitals have improved and the

risks of investing in Peru have decreased

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From Jul 2019 to Jan 2020

Bids for Electricity Supply

• Terms and conditions for supply tenders (Law 28832) were approved

in another context (2008)

• Need to strengthen competition for the market and predictability in the

next tenders that are called

Split of purchases for power supply by power and energy

• Increase competition in the contract market, to ensure demand coverage,

as well as obtain competitive prices

Schemes for the improvement in the implementation of new transmission infrastructure

• Access and connection
• Tariffs
• Project execution

Treatment of the purchase of gas for electricity generation

• High dependence on one supplier and carrier for NG supply
• Supply and transport contracts are not standardized
• NG Secondary market is not applicable for supply, only for transport

Themes Description

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APPENDIX

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31 ENERGY REVOLUTION & MEGA TRENDS Customer Centricity

Environmental awareness Energy efficiency Digitalization New technologies

3 pillars

DECARBONIZATIO ION

Worldwide renewable energies: annual additional capacity to grow by +70% in 2030 vs 2015

DECENTRALIZATION

Decentralized solutions to more than double by 2030

DIG IGITA ITALIZATIO IZATION

Digital changes energy systems and improves customer

• ffers

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Generation

13,052 MW Total Capacity

32

Transmission

28,983 km Basic transmission

Distribution

7.4 million clients

Energy Sales

45,643 GWh

▪ 87% Private ▪ Free market – market prices ▪ Two type of clients: ▪ Free clients: Mainly mining and industry. Consumption > 0.2 MW. Private auctions ▪ Regulated Distribution

• companies. Public

auctions ▪ 100% Private ▪ Exclusive concession ▪ Regulated tariff ▪ Open Access ▪ Main players: ISA (53%), Abengoa (11%) & Red Electrica (3%) ▪ 38% Private ▪ Exclusive concession ▪ Two type of clients: ▪ Free clients: Industries with consumption below 2.5 MW. ▪ Households and industries with demand below 0.2MW ▪ Main players: Government (62%), Enel disco (19%) & Luz de Sur (15%)

37% 24% 21% 18% Mining and smelting Industry Residential Commercial

* Figures full year 2018

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• Main regulated clients are Enel

Distribución and Luz del Sur (Distribution companies in Lima)

• Main free clients are Mining and

industrial companies

• Clients with a consumption above

0.2MW are able to contract directly with generation companies (free clients)

• Natural Gas generation is

concentrated in Chilca district (60km from Lima)

• Diesel plants dispatch in case
• f emergency and

transmission congestion

• Market share as of December

in terms of energy generation

• Others include: Colbun, I

Squared, Statkraft, Termochilca, among others

Clients Generation matrix Market share Market Installed capacity 13,052 MW Peak demand 6,885 MW Annual energy Generation 50,817 GWh

+4% +5% +4% 56% 6% 37% 1%

Hydro Non Conventional Renewables Natural Gas Coal & diesel

10% 20% 18% 15% 36%

ENGIE Government Enel Generación IC Power Others

42% 58%

Regulated Clients Free Clients * Figures full year 2018

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Hydro

• Investments are repaid by long term commercial

contracts (PPAs). Private auctions & negotiations

• Commercial margin & Producer margin
• Capacity (fixed fee) and energy (variable charges)

charges

• Contractual and physical position determines “buyer” or

“seller” position in spot market

⚫

Hydro investment cost is higher than natural gas thermoelectric investment and operational cost

⚫

Given hydrological seasonality, hydro power plants are normally net sellers in the spot market during wet season

• Government auctions every 2-3 years. Lower tariff projects are awarded
• The project commits to generate a certain amount of energy per year and

receives a fixed tariff ($/MWh) for ~20 years

• Electricity consumers are charged an additional fee in their electricity bill

(charge is the difference between the auctioned tariff and the spot prices)

• Geographic diversification of natural gas generation
• Public auctions for dual fuel (Natural gas / diesel plants)
• Projects are available for the national system and receive an annuity for

~20 years

• Electricity consumers are charged an additional fee in their electricity bill

Cold reserves & Nodos Non-Conventional Renewables Traditional model

After the privatization of the sector in the 90´s, the government developed different mechanisms to increase energy generation sources looking for i) hydro and natural gas power balance, ii) diversification of non-conventional renewable sources, iii) geographic diversification of natural gas thermoelectric generation and iv) increase reserve for emergencies

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• Centralized generation
• 2 markets: PPA market and the spot market
• PPA market
• Private negotiations or private / public auctions
• Protection against short term volatility
• Free clients > 0.2MW
• Spot market (physical exchange)
• Goal of the dispatch system is to minimize total cost for the system
• Marginal cost or spot price is the result of the system optimization and reflects

the variable cost to generate an additional unit of electricity at a given time

• Spot settlement between generators (sellers and buyers depending on

contractual positions)

• Natural Gas generators declare variable cost to optimize its fixed cost structure

Generators Distribution companies Free clients

SEIN

Generators Free clients

Interconnected Energy System

36

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Note: Monthly average prices Source: COES, OSINERGMIN

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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:

• nce

Natural Gas arrives to the South (~Jan’26). ▪ Similar

• peration

to ChilcaUno plant before it was converted to Combined Cycle. ▪ Investments required (~30MUSD).

Delays in the GSP postpone these options and potential upsides

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Yuncan +134MW

2004 2007 2010 2013 2016 2019

38

Nodo Ilo & Chilca Dos +723MW

Total Capacity

MW

374 868 1,068 1,860 2,665 2,456 2,496 EBITDA

MUSD

80 84 163 270 309 329 279 Market Cap

MUSD

• 645

1,600 2,005 1,611 1,351 1, 042

374 374 MW MW

Hydro Natural Gas Dual Fuel Solar

Chilca 1 +854MW Ilo 31 +500MW Quitaracsa +112MW Intipampa +41MW

2,496 MW MW AVERAGE GROWTH

16% 16%

More than 3x capacity in 10 years Investments for 1.6 BnUSD in 2010 - 2018

2017

Ilo 1 ‐105MW

2018

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In July 2018, a year of measuring the first tower was completed

In July 2019 a year of measuring the second tower was completed

In May 2019, the Pre-operation Study was approved

In June 2019 EIA submitted August 2019 2nd workshop & Public hearing Dec 2019 Expected Approval EIA September 2019 Firm offers reviewed

Max Capacity 260 MW Maximum 62 wind turbine Individual Power ~4.5 MW 60 km Transmission Line 220kV

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389 654 716 808 956 1,009 837 731 671

• 200

400 600 800 1,000 1,200 2011 2012 2013 2014 2015 2016 2017 2018 June 2019 MUSD Total Debt

• EEP started an impressive expansion plan in 2011. Total investments of 1.6 BnUSD between 2011 and

2018 for the execution of 6 projects adding 1,657MW

• After Nodo Energetico and ChilcaDos2 projects COD in 2016 and Intipampa project COD in 2018, Engie

Energía Peru´s debt reached its maximum historical level

• Since 2017 EEP´s debt is decreasing consistently to have flexibility for future opportunities

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Dividend Policy: Minimum payout ratio of 30%

32 42 28 13 12 15 20 20 24 31 33 18 39 43 31 11 13 16 18 22 30 19 16 46 34 36 42 41 34 77 42 71 85 59 24 25 31 38 42 54 49 49 64

86% 193% 100% 113% 90% 89% 30% 30% 31% 30% 31% 30% 38% 38% 59%

0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200%

10 20 30 40 50 60 70 80 90 100

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Extraordinary Annual 2nd Half 1rst Half Payout ratio

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Acting in accordance with an internal set of values based on honesty, integrity and respect to human rights…

✓

Ethics Chapter that guides our relationship with clients, suppliers, partners and Government among our main stakeholders

✓

Practical approach 1. Annual training plan to all employees 2. Practical Guide to Ethics 3. Control systems 4. Anonymous ethical complaints channel

✓

Independent Ethics Officer, appointed by the board of directors

Shareholders assembly Board of directors CEO Audit Committee Transactions between affiliates Committee Executive Operations Regulatory Commercial Development Construction Risk & Finance Ethics

COO CFO Commercial Development Corporate Affairs Legal

Committees & Task forces Internal Auditor

✓ The Board of Directors includes three independent members out of a total of 7 directors

HR

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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 investorrelations.eep@engie.com Marcelo Soares, Chief Financial Officer Adriana Burneo, Head of Corporate Finance & Investor Relations

• Av. República de Panamá 3490, Lima 27, Peru

www.engie-energia.pe Guillermo Diaz, Investor Relations