ENGIE Energia Per Corporate Presentation March 2018 KEY MESSAGES - - PowerPoint PPT Presentation

SLIDE 1

ENGIE Energia Perú

Corporate Presentation

March 2018

SLIDE 2

KEY MESSAGES 2017

ENGIE Energía Perú - Corporate Presentation / March 2018 2

Solid results in a volatile context Value proposition for our clients and portfolio optimization Solid financial discipline Limited commercial risk in a highly competitive environment

SLIDE 3

HIGHLIGHTS 2017

ENGIE Energía Perú - Corporate Presentation / March 2018 3

• At the end of 2017, total debt

reached 837MUSD, decreasing 17% with respect to 2016

• Bond issuance in local capital market

for ~100MUSD @ 10/7 years at an attractive rate below 3.5%

• 5.5 year Corporate Loan with

Scotiabank for up to 150MUSD @3.3%.

• Net debt / EBITDA (12m): 2.5x @

Dec/2017

Awards

• ENGIE’s good environmental, social

and governance practices were once more recognized. EEP was appointed by Capital Finance International as The Best ESG Power Producer in Peru in 2017 for a consecutive year

Industry & regulation

• FY 2017 EBITDA reached

325.0MUSD while Net Result totalized 129.7MUSD, growing 5% and decreasing 1% compared to FY 2016

• On March 31st EEP announced the

commercial operation of Intipampa solar project.

Our business

• Total energy generation (SEIN)

grew 1.4% compared to 2016. As of December, EEP was the first private player of the sector accounting for 21% of the total capacity and 16% of the total energy generation of the system

• End of DU049
• Natural gas Price declaration norm

was modified

Financial discipline Solid results in a volatile context

SLIDE 4

SNAPSHOT 2017

ENGIE Energía Perú - Corporate Presentation / March 2018 4

Operation

• Excellent availability & reliability of our operating assets
• Main focus in efficiency and Health & Safety standards through all internal processes (ENGIE previene app)

Commercial

• New commercial contracts with free clients, regulated and extensions for 380 MW
• Net buyer position in the spot market for FY 2017, net seller position in Q4 2017
• Very competitive conditions in the PPA market due to oversupply continues

Finance

• Successful 100MUSD bond issuance in local capital market: 25MUSD @ 7 years and 75MUSD @ 10 years, at

final rates in USD of 3.15% and 3.55%, respectively

• Average cost of debt reduction (4.5%) & maturity extension

Sustainability

• 2.9MUSD investment in infrastructure (education & basic services), access and productive areas that benefited +12,000

people

• Lima PV rooftop project, 31 kwp in our corporate building that reduces our CO2 footprint
• Support campaigns for communities affected by “niño costero”

SLIDE 5

AGENDA

5 ENGIE Energía Perú - Corporate Presentation / March 2018

Energy market ENGIE Energia Peru overview Financial update Capital structure

SLIDE 6

Generation

12,001 MW Total Capacity

ENERGY SYSTEM

Composed by three different sectors

ENGIE Energía Perú - Corporate Presentation / March 2018 6

Transmission

27,358 km Basic transmission

Distribution

7.1 million clients

Energy Sales

44,500 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

(56%), 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 (20%) & Luz de Sur (15%)

37 24 21 18 Mining and smelting Industry Residential Commercial

SLIDE 7

ENERGY GENERATION MARKET

An energy matrix with strong natural gas and hydro components

ENGIE Energía Perú - Corporate Presentation / March 2018 7

• 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 of emergency and transmission congestion

• Market share as of

December in terms of energy generation

• Others include: Colbun, I

Squared, Statkraft, Termochilca, among

• thers

Clients Generation matrix Market share Market Installed capacity 12,000 MW Peak demand 6,596 MW Annual energy Generation 48,993 GWh

+1% +2%

• 1%

57% 3% 37% 3%

Hydro Non Conventional Renewables Natural Gas Coal & diesel

16% 22% 16% 13% 34%

ENGIE Government Enel Generación IC Power Others

45% 55%

Regulated Clients Free Clients

SLIDE 8

BUSINESS MODELS IN ENERGY GENERATION

ENGIE Energía Perú - Corporate Presentation / March 2018 8

• 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



Pro-inversion auctions to promote hydros



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

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 Cold reserves & Nodos Non Conventional Renewables Traditional model Hydro

SLIDE 9

MAIN REGULATION FRAMEWORK

ENGIE Energía Perú - Corporate Presentation / March 2018 9

• Centralized generation
• 2 markets: PPA market and the spot market
• PPA market
• Private negotiations or private / public auctions
• Protection against short term volatility
• 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 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 prices to optimize its fixed cost structure

Generators Distribution companies Free clients

SEIN

Generators Free clients

Interconnected Energy System

SLIDE 10

SUPPLY AND DEMAND IMBALANCE

Oversupply generates low spot prices

ENGIE Energía Perú - Corporate Presentation / March 2018 10

Source: COES, OSINERGMIN a Sep-2017

0% 20% 40% 60% 80% 100%

• 2,000

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

2017 2018 2019 2020 2021 2022

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 (%)

• Peruvian electricity generation 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

• n

average 7% annually between 2005 and 2016 (YTD). Based on these conditions and forecasts, the Government incentivized new generation projects for more than 4000MW that started operations between 2012-2016

• In 2016/2017, demand growth diminished its expected pace

(2% in 2017) due to delays in investment and lower

• consumption. Currently, demand is expected to have an

average annual growth of 5-6% between 2018 and 2023

As a result, a temporal imbalance between supply and demand has generated strong competition in the PPA market and very low levels of spot prices

500 1000 1500 2000 2500 3000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Incremental supply by mechanism (MW)

Market (Demand / Supply) RER Other incentive mechanisms

SLIDE 11

MARGINAL COST RESULTING FROM SETTING UP DISPATCH ORDER

ENGIE Energía Perú - Corporate Presentation / March 2018 11

5 10 15 20 25 30 35 40 45 50 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 GWh

Generation mix by fuel and Marginal Cost (energy only)

Hydro Renewable Natural Gas Coal Fuel Oil Marginal Cost

Source: COES

USD/MWh

SLIDE 12

AGENDA

12 ENGIE Energía Perú - Corporate Presentation / March 2018

Energy market ENGIE Energia Peru overview Financial update Capital structure

SLIDE 13

ENGIE ENERGIA PERU OVERVIEW

13

ENGIE; 61.8 AFP´s (Peruvian pension funds); 31.6 Others; 6.6

Shareholders %

Largest private electricity generation company in Peru 2,497 MW of installed capacity & ~7,600 GWh of annual

generation

Diversified & decentralized portfolio of generation

sources

20 years operating in the country & listed since 2005 508 employees Solid clients

Strong financials to support ambitions, AAA local rating

Sponsored by a global leader

SLIDE 14

SPONSORED BY A GLOBAL PLAYER

ENGIE Energía Perú - Corporate Presentation / March 2018 14

ELECTRICITY

112.7 GW 21.5 GW 5.2 GW

NATURAL GAS & LNG

• Europe’s leading

natural gas distribution network

• Europe’s leading LNG

importer

• Europe’s leading seller
• f natural gas storage

capacity

• Natural gas supply per

year 1st 1st 1,082

TWh

ENERGY SERVICES

1st 250 23

million

• World’s leading energy

efficiency service provider

• Urban heating and

cooling networks in 13 countries

• Individual and

professional contracts

• Under management in

the tertiary sector

• World’s leading

independent producer

• Installed power

production capacity

• Installed renewable

production 18.3% of fleet

• Power production

capacity under construction

3 CORE BUSINESSES SUPPORTING A NEW VISION OF ENERGY FOR THE WORLD

153,090

employees worldwide Activity in close to 70 countries

€ 66.6 bn

revenues in 2016

€ 22 bn of growth

investment over 2016-2018

A- rated by S&P A2 rated by

Moody’s

140 m

m3

1st

1st

SLIDE 15

LEADING THE ENERGY REVOLUTION THROUGH 3 PILLARS

ENGIE Energía Perú - Corporate Presentation / March 2018 15

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

SLIDE 16

Reduce exposure to commodity prices

OUR ROLE IN THE ENERGY TRANSITION

ENGIE Energía Perú - Corporate Presentation / March 2018 16

• Balanced portfolio of assets under

development

• Geographic diversification and proximity to our

clients  Non conventional renewable pipeline  Continue with hydro mapping and studies  Studies for natural gas options  M&A opportunities  Focus on improving operational efficiency

• f existing assets
• Optimum contracting level
• Balanced portfolio between Regulated Clients (Distribution

Companies) and Free Clients

• Power Purchase Agreements under “pass-through”

scheme

• Minimize non-manageable risks

Focus on low CO2 Develop solutions for clients

• Customer focus: partnering with our clients to

help them finding efficiency gains

• Value added proposals
• Integral solutions  “one shop” approach
• Leverage from worldwide experience to

elaborate tailor made solutions

  

SLIDE 17

ENGIE Energía Perú - Corporate Presentation / March 2018 17

Low Co2 generation base Largest private electricity company Diversified & decentralized asset base across 4 regions

#1

220 km of transmission lines + 1 substation

Natural Gas; 963; 39% Hydro; 248; 10% Dual fuel; 1110; 44% Coal; 135; 5% Solar; 41; 2%

2,497MW

Chilca Complex

• ChilcaUno - 852MW - Natural Gas
• ChilcaDos - 111MW- Natural Gas

Ilo Complex

 Nodo - 610MW - Dual Fuel  Ilo31 (Cold Reserve) - 500MW - Dual Fuel  Ilo21 - 135MW - Coal

Intipampa

 Solar 41MW

Yuncan

 Hydro 136MW

Quitaracsa

 Hydro 112MW

SUPPORTED BY A STRONG PORTFOLIO OF ASSETS

SLIDE 18

2004 2007 2010 2013 2016 2019

PROVEN TRACK RECORD IN DRIVING ORGANIC GROWTH

ENGIE Energía Perú - Corporate Presentation / March 2018 18 Nodo Ilo & Chilca Dos +723MW

Total Capacity

MW

374 868 1,068 1,860 2,665 2,456 2,497 EBITDA

MUSD

80 84 163 270 309 325 Market Cap

MUSD

• 645

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

374 374 MW MW

Hydro Natural Gas Dual Fuel Solar

Yuncan +134MW Chilca 1 +854MW Ilo 31 +500MW Quitaracsa +112MW Intipampa +41MW

2,497 MW MW AVERAGE GROWTH

16% 16%

More than 3x capacity in 10 years Investments for 1.6 BnUSD in 2010 - 2017

2017

Ilo 1 ‐105MW

2018

SLIDE 19

FIRST STEP IN NON CONVENTIONAL RENEWABLES

Intipampa

ENGIE Energía Perú - Corporate Presentation / March 2018 19

IN INTIP TIPAMPA - Key ey fac acts ts

• Location the project is located in the south of Peru,

Moquegua

• Description: The project will deliver 108.404 GWh/year to

the system

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

Agreement with Ministry of Energy and Mines @48.5$/MWh until 2038 (approx. 20-21 years)

• Investment: ~52MUSD below initial estimate of 55MUSD
• Construction:

EPC contractor Solaire Direct. Site mobilization started in February, 2017

In 2016, ENGIE Energía Perú was awarded as part of the 4th Renewables Auction process the construction of a 40.5 MW solar plant, which will benefit 90,000 households and avoid 50,000t of CO2 Intipampa project successfully entered into operation 31rst March 2018

SLIDE 20

NATURAL GAS MEDIUM TERM UPSIDES

ENGIE Energía Perú - Corporate Presentation / March 2018 20

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 21

CONSISTENT COMMERCIAL STRATEGY

ENGIE Energía Perú - Corporate Presentation / March 2018 21

Our portfolio & contracts

+ 380 MW1 new contracts in 2017 Number of clients growing from 40 to 60 Marcobre (84MW), Distriluz (30MW) & Grupo Nexa (62MW)

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

+50%

AGRESSIVE COMPETITORS

The market

SLOW GROWING DEMAND REGULATORY UNCERTAINTY

WE KEEP FOCUSS ON MANTAINING OUR EFFICIENT PORTFOLIO CONTRACTED

1- Includes new contracts with free clients and existing expansions

SLIDE 22

ENGIE Energía Perú - Corporate Presentation / March 2018 22

 Limited spot market risk

• Fully contracted capacity for next 2 years

and 91% on average for 2020-2021

• Average PPA life of 6.8 years
• 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)

 Low commodity risk

• Indexation ~60% of portfolio to Natural

Gas prices in line with generation costs

42% 58%

Balanced portfolio

Regulated Free clients

 Diversification PORTFOLIO APPROACH

Resilience in face of unfavorable market conditions

SLIDE 23

ENERGY BALANCE 2017

ENGIE Energía Perú - Corporate Presentation / March 2018 23

Lower thermal generation in 2017 due to higher supply from hydro power plants. Seller-position in the spot market in Q4 2017

GWh

∆ 2017 -2016 ∆ Q4

Yuncán HPP

901

10%

760

8%

889

11% 17%

173

8%

210

11% 22%

Quitaracsa HPP

88

1%

484

5%

531

6% 10%

112

5%

101

6%

• 10%

Chilca1 CCGT

5,838

66%

5,617

63%

5,303

63%

• 6%

1,516

71%

1,439

78%

• 5%

Chilca2

0%

220

2%

308

4% 40%

88

4%

155

8% 77%

Ilo21 (Coal)

248

3%

773

9%

674

8%

• 13%

191

9%

23

1%

• 88%

Ilo1 (Diesel)

62

1%

210

2%

86

1%

• 59%

17

1% 0%

• 100%

Ilo31 (Cold Reserve)

35

0%

100

1%

7

0%

• 93%

9

0% 0%

• 97%

NEPI

0%

18

0%

9

0%

• 47%

4

0%

1

0%

• 66%

Imports (Ecuador)

0%

21

0% 0%

• 100%

0% 0% 0%

Auxiliaries

• 100
• 1%
• 289
• 3%
• 185
• 2%
• 36%
• 82
• 4%
• 34
• 2%
• 59%

NET GENERATION

7,072

81%

7,914

88%

7,624

91%

• 4%

2,028

95%

1,897

103%

• 6%

COES: NET

1,711

19%

1,061

12%

734

9%

• 31%

117

5%

• 63
• 3%
• 154%

CLIENTS DEMAND

8,783

100%

8,976

100%

8,358

100%

• 7%

2,145

100%

1,834

100%

• 14%

Q4 2017 Q4 2016 FY 2015 FY 2016 FY 2017

SLIDE 24

OUR ORGANIZATION, GOVERNANCE & ETHICS

ENGIE Energía Perú - Corporate Presentation / March 2018 24

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

SLIDE 25

AGENDA

25 ENGIE Energía Perú - Corporate Presentation / March 2018

Energy market ENGIE Energia Peru overview Financial update Capital structure

SLIDE 26

ENGIE Energía Perú - Corporate Presentation / March 2018 26

2017 FINANCIAL KPIS

Main Financial Results

(MUSD) FY 2017 FY 2016 ∆ FY Income 683 748

• 9%

EBITDA 325 309 5% Net Result 130 132

• 1%

Recurrent EBITDA* 298 330

• 10%

Net Recurrent Result* 111 169

• 35%

Net Debt / EBITDA 12m 2.5 3.2

• 22%

Total Debt 837 1,009

• 17%

Net Debt 799.9 981.2

• 18%

Net Generation GWh 7,624 7,914

• 4%

Clients Demand GWh 8,358 8,976

• 7%

The focus in managing our portfolio of clients and plants, combined with a strong financial discipline, has enabled us to deliver solid financial results, even during periods of instability in the power sector and in the country

*No include 2017: Commercial penalty fees and impairment of assets 2016: Impairment of assets and tax non recurrent impacts

SLIDE 27

EBITDA GROWING 5% (+16MUSD)

ENGIE Energía Perú - Corporate Presentation / March 2018 27

EBITDA 2016 Eventos no recurrentes Reducción del costo marginal Fin SPCC Reducción del margen comercial Nodo Energético Otros EBITDA 2017

(84.0)

Marginal cost reduction Non recurrent events Commercial margin decrease mainly due to lower prices EBITDA 2016 EBITDA 2017

+47.6 +24.7

Cost

• ptimization

and SPCC services Nodo Energético COD By effect In US$ millions

(8.5) +6.1 309.0

End of SPCC contract

+29.9 325.0

START OF NODO ENERGETICO PROJECT AND COST OPTIMIZATION PARTILLY OFFSETTING END OF COMMERCIAL CONTRACTS

SLIDE 28

NET RESULT REMAINS STABLE

ENGIE Energía Perú - Corporate Presentation / March 2018 28

resultado neto 2016 Eventos no recurrentes Reducción del costo marginal Fin SPCC Reducción del margen comercial Nodo Energético EBITDA 2017

(16.7)

EBITDA expansion Non recurrent effects in Net Results Net financial expenses NET RESULT 2016 NET RESULT 2017

+9.4 +16.0

Tax

(11.3) 131.5

D&A increase

New projects and first major overhaul of Chilca

+0.8 129.9

By effect In US$ millions

D&A & INTEREST EXPENSES INCREASE DUE TO START OF OPERATIONS OF NEW PROJECTS

SLIDE 29

ENGIE Energía Perú - Corporate Presentation / March 2018 29

NON RECURRENT EVENT IN 2017

• 2. Impairment of assets (Other expenses)
• 1. Commercial penalties & fees accounted as other

income in June 2017 Financial Statements (Other income) EBITDA 2017 Net Result 2017 +28.0MUSD +20.2MUSD

• 1.3MUSD
• 0.9MUSD

+26.7MUSD +19.2MUSD Total non recurrent events (1 + 2) As a result of these non recurrent events, full year Recurrent EBITDA reduces to 298MUSD and Net recurrent Income to 111MUSD

SLIDE 30

30

EBITDA BREAKDOWN

ENGIE Energía Perú - Corporate Presentation / March 2018

48 81 69 68 192 148 28 2016 2017

+69%

• 1%
• 23%

Market risk - Market risk +

Investment agreements with Government Capacity income Market margin 50% 50%

HIGHER PROPORTION OF INCOME WITH LOWER RISK BUT MANTAINING UPSIDES

309.0 325.0

5% EBITDA In US$ millions

SLIDE 31

AGENDA

31 ENGIE Energía Perú - Corporate Presentation / March 2018

Energy market ENGIE Energia Peru overview Financial update Capital structure

SLIDE 32

SUCCESSFUL FINANCIAL PLAN EXECUTION IN A HIGHLY VOLATILE ENVIRONMENT

ENGIE Energía Perú - Corporate Presentation / March 2018 32

158 152 93 82

• 30
• 15
• 25

76 10

• 25

76

50 50

• 50

100 150 200 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Financial leases Bonds New bonds New corporate loan

• Total debt reached 837MUSD as of December 2017, decreasing 17% following expected amortization schedule
• ENGIE continues with its AAA local credit rating
• In 2017 EEP successfully closed financial conditions for up to 250MUSD for an average fixed cost of 3.35% and

average life of 7 years, issuing 200MUSD of medium and long term debt; 100MUSD in local capital markets ( 7 – 10 year bonds) and 100MUSD through a 5.5 year Corporate Loan. Through the 2017 financial plan execution EEP was able to: 1. Optimize cost, reducing average long term cost from 4.7% to 4.5% 2. Improve debt structure, increasing debt duration from 2.7 years to 3.6 years 3. Eliminate interest rate risk 4. Maintain flexibility to continue looking for costs optimizations

Outstanding debt repayment profile as of December 2017 (MUSD)

SLIDE 33

STOCK PRICE ENGIEC1

33 ENGIE Energía Perú - Corporate Presentation / March 2018

467 663 1,020 793 839 1,602 1,187 1,759 2,005 2,075 1,427 1,611 1,351 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 2017 MUSD MUSD

Net Result Market cap Dividends

Source: SMV & BVL, EEFF @ 31/12/2017

Market KPIs – December 2017 Number of shares 601,307,011 Share price (PEN) 7.29 VWAP (3m) – (PEN) 7.83 52 week – high – (PEN) 9.30 52 week – low – (PEN) 6.50 Enterprise Value (EV) (MUSD) 2,151 EV / EBITDA 6.6x P/E 10.4x Average liquidity (mm shares / day) 0.03

EV: Market Cap + Net Debt

SLIDE 34

EQUITY ANALYST VIEW

34 ENGIE Energía Perú - Corporate Presentation / March 2018

PEN / Share

6.5 7.5 8.0 8.5 6.0

Credicorp Larrain Kallpa Inteligo Consensus Target price 8.4 8.2 8.9 8.8 8.6 Recommendation Underperform Buy Maintain Buy Date October 2017 February 2018 January 2018 January 2018

2017 Dec Consensus

Price as of Decembe ber 29th 7.29

18% Upside

7.0 Buy Sell Mantain 9.0

SLIDE 35

DIVIDEND PAYMENTS

35 ENGIE Energía Perú - Corporate Presentation / March 2018

MUSD

Dividend policy since 2010: Minimum 30%

%

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.

FOR MORE INFORMATION ABOUT ENGIE ENERGIA PERU

Ticker: ENGIEC1

+51 1 616 79 79 investor.relations@pe.engie.com Rocío Vásquez, Head of Corporate Finance & Investor Relations – rocio.vasquez@pe.engie.com Marcelo Soares, Chief Financial Officer – marcelo.soares@pe.engie.com

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

www.engie.pe