ENGIE Energía Perú
Results as of September 2018
2018 Q3 HIGHLIGHTS
2
Total energy generation (SEIN) grew 3.0% in Q3 YTD 2018 compared to Q3 YTD 2017. As of
September, EEP maintained a leading position in the sector, accounting for 20% of the total capacity and
9% of the total energy generation of the system
Q3 2018 EBITDA reached 62.0MUSD, a 3.0% growth compared to Q3 2017, due to strong commercial
effort to re-contract available efficient capacity, lower COGS (6.6%) and lower SG&A (23.5%). However, Q3
YTD 2018 EBITDA decreased 25% compared to Q3 YTD 2017. The decrease is mainly explained by the
end of SPCC PPA and lower re-contracting prices given market conditions
Q3 2018 Net Result reached 21.5MUSD, a 14.0% increase compared to Q3 2017 (18.8MUSD) mainly
due to lower financial expenses
Because of its recognized standards of transparency and corporate governance, EEP entered the BVL
Good Corporate Governance Index in July 2018
In September 2018, EEP signed a 7-year PPA for 150MW with Anglo American Quellaveco in addition to
the 30-year PPA for 35MW signed earlier this year
In September 2018, EEP together with the Municipality of San Isidro, implemented the first 100%
electric bus which can be used free of charge by residents and visitors. This initiative is part of ENGIE´s
objective of promoting green mobility and contributing for reducing CO2 emissions
ENGIE Energía Perú - Quarterly Results Q3 2018
275
205
2017 Q3 2018 Q3
MAIN FINANCIAL RESULTS Q3 2018
3
EBITDA Q3 Net Result Q3 Total Debt
914.9776.7
2017 Q3 2018 Q3
-15%
55 55
19 130 30
22
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2017 2018
MUSDMUSD MUSD
Net Debt / EBITDA (12m)
2.4 2.8
2017 Q3 2018 Q3
+15%
ENGIE Energía Perú - Quarterly Results Q3 2018
EBITDA Q3 YTD
-25%
MUSD
Net Result Q3 YTD
129
82
2017 Q3 2018 Q3
MUSD
-36%
+3%+14%108 106
6050
71 7162
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2017 2018
GWh
∆
Q3 2018 vs
Q3 2017
YTD
∆
Q3 2018 vs
Q3 2017
Yuncán HPP 760 8% 889 11% 678 10% 651 10% 159 2% 152 7% -4% -4%
Quitaracsa HPP 484 5% 531 6% 430 7% 381 6% 70 1% 57 3% -11% -18%
Chilca1 CCGT 5,617 63% 5,303 63% 3,865 59% 2,196 34% 1,589 25% 1,528 73% -43% -4%
Chilca2 CCGT 220 2% 308 4% 153 2% 222 3% 131 2% 193 9% 45% 47%
Ilo21 (Coal) 773 9% 674 8% 651 10% 43 1% 280 4% 16 1% -93% -94%
Ilo1 (Diesel) 210 2% 86 1% 86 1% 0 0% 31 0% 0 0% -100% -100%
Ilo31 (Cold Reserve) 100 1% 7 0% 7 0% 3 0% 1 0% 1 0% -57% 22%
NEPI 18 0% 9 0% 8 0% 18 0% 4 0% 9 0% 120% 128%
Intipampa 0 0% 0 0% 0 0% 54 0% 0 0% 25 1% n.a. n.a.
Imports (Ecuador) 21 0% 0 0% 0 0% 0 0% 0 0% 0 0% n.a. n.a.
Auxiliaries -289 -3% -185 -2% -152 -2% -66 -1% -76 -1% -43 -2% -57% -43%
NET GENERATION 7,914 88% 7,624 91% 5,727 88% 3,502 55% 2,191 34% 1,938 92% -39% -12%
COES: NET 1,061 12% 734 9% 797 12% 2,873 45% -203 -3% 169 8% 261% -183%
CLIENTS DEMAND 8,976 100% 8,358 100% 6,524 100% 6,375 100% 1,988 31% 2,106 100% -2% 6%
Q3 2018Q3 2018
YTD2016 2017
Q3 2017
YTDQ3 2017
ENERGY PRODUCTION AND BALANCE Q3 2018Lower thermal generation in Q3 2018 and net buyer position in the spot market
4ENGIE Energía Perú - Quarterly Results Q3 2018
H
H
T
T
T
T
T
T
S
H Hydro T Thermal S Solar
MAIN RESULTS Q3 2018
5
Q3 2018 EBITDA 3.0% growth vs Q3 2017 consolidating the commercial efforts taken during 2018
Q3 2018 YTD EBITDA decreased 25% compared to Q3 2017 YTD to 205MUSD, mainly explained
by the end of SPCC PPA (April 2017) and early PPA termination Las Bambas (August 2017) which
was partially offset by new PPAs.
Total debt decreased by 15% from Q3 2017, following the expected amortization schedule, and
totalized 777MUSD
ENGIE Energía Perú - Quarterly Results Q3 2018
* Restatement by application of IFRS
** Does not include commercial penalty fees and impairment of assets
(MUSD) Q3 2018 Q3 2017∆ Q3 2018
vs Q3 2017
Q3 2018
YTD
Q3 2017
YTD
∆ Q3 2018
vs Q3 2017
YTD
FY 2017 FY 2016 ∆ FY
Revenues* 129 144 -11% 388 464 -16% 683 748 -9%
EBITDA 62 60 3% 205 274 -25% 325 309 5%
Net Result 22 19 14% 82 129 -36% 130 132 -1%
Recurrent EBITDA** 62 60 3% 205 247 -17% 298 330 -10%
Net Recurrent Result** 22 19 14% 82 109 -25% 111 169 -35%
Total Debt 777 915 -15% 777 915 -15% 837 1,009 -17%
Net Debt 711 792 -10% 711 792 -10% 800 981 -18%
Net Generation GWh 1,938 2,191 -12% 3,502 5,727 -39% 7,624 7,914 -4%
Clients Demand GWh 2,106 1,988 6% 6,375 6,524 -2% 8,358 8,976 -7%
Net Debt / EBITDA 12m 2.8 2.4 15% 2.8 2.4 15% 2.5 3.2 -22%
+274.7 -28.0
-0.7 -57.9
+12.4 +4.2 +204.7
EBITDAQ3 2017
Non recurrent events ∆ CMg Commercial Contracts Other Income Intipampa EBITDAQ3 2018
EBITDA Q3 YTD: 2018 vs. 2017 -70.0 MUSD
6
- 25%
ENGIE Energía Perú - Quarterly Results Q3 2018
• SPCC PPA maturity
• End of Las Bambas by
the end of August 2017
• Jetty contract
(mainly one shot
initial payment)
• Services to SPCC
Impact of the end of PPA’s in Q3 2017 partially
offset by commercial effort driving Q3 2018
• Higher marginal cost
due to gas events in
2018 offset by
natural gas price
declarations
• 2017 effect
‐28.0MUSD
mainly due to
commercial
penalty fee Las
Bambas
+128.8+7.8 -70.0
-6.7 +6.1-2.3
+18.2 +81.8
Net ResultQ3 2017
Non recurrentevents
EBITDA D&A Net FinancialExpenses
FX Tax Net ResultQ3 2018
NET RESULT Q3 YTD: 2018 vs. 2017 -47.0 MUSD
7ENGIE Energía Perú - Quarterly Results Q3 2018
• Ilo complex
depreciation review
• Lower outstanding debt
• Interest on tax adjustment
in 2017
- 36%
• Tax related to
Las Bambas
penalty
• Tax effect, mainly
explained by lower
EBITDA
+60.5 0.0 -3.9+0.1
+4.0 +1.4 +62.0
EBITDAQ3 2017
Non recurrent events ∆ CMg Commercial Contracts Other Income Intipampa EBITDAQ3 2018
EBITDA Q3: 2018 vs. 2017 +1.6 MUSD
8ENGIE Energía Perú - Quarterly Results Q3 2018
• Provision
reversals
• Higher marginal
cost due to
Malvinas NG
plant
maintenance in
July/August
+3%
+18.9+1.6 -2.9 +2.1 +0.0
+1.8 +21.5
Net ResultQ3 2017
EBITDA D&A Net FinancialExpenses
FX Tax Net ResultQ3 2018
NET RESULT Q3: 2018 vs. 2017 +2.6 MUSD
9
+14%
• Ilo complex
depreciation review
• Lower outstanding
debt
ENGIE Energía Perú - Quarterly Results Q3 2018
STOCK PRICE PERFORMANCE
10
Financial Market Data – September 2018
Number of shares issued 601,307,011
Share price (PEN) – 30/09/2018 6.70
VWAP (3m) – (PEN) 6.69
52 week – high – (PEN) 8.05
52 week – low – (PEN) 6.43
Market Cap (MUSD) 1,222
Enterprise Value (EV) (MUSD) 1,932
EV / EBITDA 7.6x
Price to Book Value (P/B) 1.1x
Price / Earnings ratio (P/E) 14.8x
Daily avg. trading volume (Msh) 0.03
EV: Market Cap + Net Debt
P/B: Market Cap / Book Value of Equity
Source: SMV, Lima Stock Exchange
• Market Cap changes in USD is affected by share price movements and FX changes
• In Q3 2018, the share price increased from 6.55 to 6.70 S/./sh; (+2.3%); while the
exchange rate appreciated slightly against the USD (3.298 PEN/USD).
*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
ENGIE Energía Perú - Quarterly Results Q3 2018
467663
1,020
793 839
1,602
1,187
1,759
2,0052,075
1,427
1,611
1,3511,222
0
50
100
150
200
250
0
500
1,000
1,500
2,000
2,500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018YTD
MU
SD M
US
D
Net Result Dividends Market Cap
EQUITY ANALYST VIEW
11
PE
N /
Sh
are
6.5
7.5
8.0
8.5
6.0
Credicorp Larrain Kallpa Inteligo Seminario Consensus
Target price 7.8 8.2 8.9 8.5 8.4 8.4
Recommendation Mantain Buy Buy Buy Buy
Date September 2018 July 2018 July 2018 July 2018 September 2018
2018 Sep
Consensus
Price as of September 30th
6.70
25%
Upside
7.0
BuySell Mantain
9.0
ENGIE Energía Perú - Quarterly Results Q3 2018 11
DIVIDEND PAYMENTS: 680 MUSD since 2004
12
Dividend Policy: Minimum payout ratio of 30%
Payout ratio
of 38% in
2017
ENGIE Energía Perú - Quarterly Results Q3 2018
32
42
28
13 12.4 1520 20 24 31 33
24
43
31
11 13 16
1822
30
9 6
34 3642
41
15
10 10
34
77
42
71
85
59
24 25.4
31
38
42
54
49 49
86%
193%
100%
113%
90%89%
30% 30%31%
30% 31% 30%
38% 38%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
0
10
20
30
40
50
60
70
80
90
100
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Extraordinary Annual
2nd Half 1rst Half
Payout ratio
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
* www.engie.com
APPENDIXENGIE Energia Peru overview
13
Largest private electricity company in Peru in terms of
capacity
2,497 MW of installed capacity & ~7,600 GWh of
annual generation
Low Co2 generation base
Diversified & decentralized portfolio of
generation sources
21 years operating in the country & listed since 2005
499 employees
Financial discipline to support future growth ambitions,
AAA local rating
Sponsored by a global leader, ENGIE S.A.*
ENGIE Energía Perú - Quarterly Results Q3 2018
777 MUSD
By Currency By Source
Solid financial disciplineoptimizing costs, diversifying financial sources & limiting risks
Net debt / EBITDA
2.8x 2.8x 2.8x3.2x
2.8x2.6x 2.4x 2.5x 2.6x
2.9x 2.8x
919 926 898 981 904 872 792 800 763 729 711
330 332 326 309 323 341 327 325 288 253 255
0
0
0
0
0
0
0
0
0
0
-
1
2
3
4
5
6
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18
Net Debt/EBITDA Net Debt EBITDA LTM
Debt Breakdown - As of September 2018
60%40%
43%
38%
19%
Credit Rating – May 2018
AAA.pe
Stable25/05/2018
AAA.pe
Stable28/05/2018
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 250MPEN @ 6.53% (10 yr)
• 2016-2017 issuances ~2x times over subscripted
ENGIE Energía Perú - Quarterly Results Q3 2018 14
THANKS
15
This presentation may contain certain forward-looking statements and information relating to ENGIE Energía Perú S.A. (“Engie Energía Perú” or the
“Company”) that reflect the current views and/or expectations of the Company and its management with respect to its business plan. Forward-looking
statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may
contain words like “believe”, “anticipate”, “expect”, “envisage”, “will likely result”, or any other words or phrases of similar meaning. Such statements are
subject to a number of significant risks, uncertainties and assumptions. We caution that a number of important factors could cause actual results to differ
materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In any event, neither the Company nor any of its
affiliates, directors, officers, agents or employees shall be liable before any third party (including investors) for any investment or business decision made or
action taken in reliance on the information and statements contained in this presentation or for any consequential, special or similar damages. The Company
does not intend to provide eventual holders of shares with any revised forward-looking statements of analysis of the differences between any forward-looking
statements and actual results. There can be no assurance that the estimates or the underlying assumptions will be realized and that actual results of
operations or future events will not be materially different from such estimates.
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without ENGIE
Energía Perú prior written consent.
FOR MORE INFORMATION ABOUT ENGIE ENERGIA PERU
Ticker: ENGIEC1
+51 1 616 79 79 New: [email protected]
Adriana Burneo, Head of Corporate Finance & Investor Relations – [email protected]
Marcelo Soares, Chief Financial Officer – [email protected]
Av. República de Panamá 3490, Lima 27, Peru www.engie.pe
ENGIE Energía Perú - Quarterly Results Q3 2018