ENGIE Energía Perú · 2018 Q1 HIGHLIGHTS 2 Total energy generation (SEIN) grew 1.7% in Q1 2018...

ENGIE Energía Perú

Results as of March 2018

2018 Q1 HIGHLIGHTS

2

Total energy generation (SEIN) grew 1.7% in Q1 2018 compared to Q1 2017. As of March, EEP maintained a

leading position in the sector, accounting for 21% of the total capacity and 6% of the total energy generation of the

system

Q1 2018 EBITDA reached 71.5MUSD, increasing 42% compared to Q4 2017 as a result of strong commercial

efforts to re-contract available efficient capacity. Q1 2018 EBITDA decreased 34% compared to Q1 2017. The

decrease is mainly explained by the end of SPCC PPA and lower re-contracting prices given market conditions

Q1 2018 Net Result reached 30.0MUSD, increasing significantly compared to Q4 2017 (1MUSD) and impacted

by Lower EBITDA and higher D&A against Q1 2017

On March 31st, EEP announced the commercial operation of Intipampa solar project, EEP´s first step in non

conventional renewable energy. This solar plant is located in Moquegua and reached a total installed capacity of

40.5MW

In March 2018, EEP signed a 30-year PPA for 35MW starting in 2022 and a 37-year agreement with Anglo

American Quellaveco to share existing jetty facilities

In February, LNG pipeline event caused a restriction in the availability of natural gas. As a consequence,

diesel plants were dispatched to satisfy electricity demand and marginal cost increased

Shareholders approved the distribution of 48.9MUSD in dividends related to FY 2017 (38% payout ratio)

ENGIE Energía Perú - Quarterly Results Q1 2018

MAIN FINANCIAL RESULTS Q1 2018

3

EBITDA Net Result

Total Debt

837.1 799.1

2017 Q4 2018 Q1

-5%

108.1

50.371.5

2017 Q1 2017 Q4 2018 Q1

55.0

1.0 30.0

2017 Q1 2017 Q4 2018 Q1

+42%

Total Debt MUSD

EBITDA MUSD Net Result MUSD

Net Debt / EBITDA (12m)

Net Debt / EBITDA x

2.5 2.6

2017 Q4 2018 Q1

+4%


ENERGY PRODUCTION AND BALANCE Q1 2018Lower thermal generation in Q1 2018 and net buyer position in the spot market

4ENGIE Energía Perú - Quarterly Results Q1 2018

GWh∆

Q1 2018 vs

Q4 2017

∆

Q1 2018 vs

Q1 2017

Yuncán HPP 760 8% 889 11% 276 12% 210 9% 274 13% 30% -1%

Quitaracsa HPP 484 5% 531 6% 203 9% 101 4% 189 9% 87% -7%

Chilca1 CCGT 5,617 63% 5,303 63% 1,135 49% 1,439 61% 222 11% -85% -80%

Chilca2 220 2% 308 4% 10 0% 155 7% 13 1% -91% 31%

Ilo21 (Coal) 773 9% 674 8% 227 10% 23 1% 20 1% -12% -91%

Ilo1 (Diesel) 210 2% 86 1% 16 1% 0 0% 0 0% n.a. -100%

Ilo31 (Cold Reserve) 100 1% 7 0% 1 0% 0 0% 1 0% 467% 34%

NEPI 18 0% 9 0% 1 0% 1 0% 6 0% 327% 404%

Intipampa 0 0% 0 0% 0 0% 0 0% 6 0% n.a. 0%

Imports (Ecuador) 21 0% 0 0% 0 0% 0 0% 0 0% n.a. 0%

Auxiliaries -289 -3% -185 -2% -32 -1% -34 -1% 2 0% -106% -106%

NET GENERATION 7,914 88% 7,624 91% 1,838 79% 1,897 81% 735 35% -61% -60%

COES: NET 1,061 12% 734 9% 503 21% -63 -3% 1,381 65% -2309% 175%

CLIENTS DEMAND 8,976 100% 8,358 100% 2,340 100% 1,834 78% 2,116 100% 15% -10%

Q1 2018Q1 20172016 2017 Q4 2017

MAIN RESULTS Q1´18

5

Q1 2018 EBITDA increased 42% compared to Q4 2017 as a result of a commercial effort to re-contract available

capacity after Las Bambas termination contract in 2017

Q1 2018 EBITDA decreased -34% compared to Q1 2017 to 71MUSD, mainly explained by the end of SPCC PPA

contract which was partially offset by new PPAs. Q1 2018 Net result was affected by lower EBITDA and higher D&A

compared to Q1 2017

Total debt decreased by 4.5% from December 2017, following the expected amortization schedule, and totalized

799MUSD


* Does not include commercial penalty fees and impairment of assets

(MUSD) Q1 2018 Q4 2017 Q1 2017∆ Q1 2018 vs

Q4 2017

∆ Q1 2018 vs

Q1 2017FY 2017 FY 2016 ∆ FY

Revenues 163 139 201 18% -19% 683 748 -9%

EBITDA 71 50 108 42% -34% 325 309 5%

Net Result 30 1 55 2967% -45% 130 132 -1%

Recurrent EBITDA* 71 53 108 35% -34% 298 330 -10%

Net Recurrent Result* 30 3 55 953% -45% 111 169 -35%

Total Debt 799 837 963 -5% -17% 837 1,009 -17%

Net Debt 763 800 904 -5% -16% 800 981 -18%

Net Generation GWh 735 1,897 1,838 -61% -60% 7,624 7,914 -4%

Clients Demand GWh 2,116 1,834 2,340 15% -10% 8,358 8,976 -7%

Net Debt / EBITDA 12m 2.6 2.5 2.8 7% -6% 2.5 3.2 -22%

+52.7 +50.3 -4.4+8.7

+4.6 +1.5

+10.8 +71.5

EBITDAQ4 2016

EBITDAQ4 2017

∆ CMg CommercialContracts

Other Income Intipampa Others EBITDAQ1 2018

• LNG pipeline

event caused

marginal cost

increase

EBITDA: Q1 2018 vs. Q4 2017 +21.1 MUSD

6

+ 42%


• Jetty contract, mainly one shot

initial payment

• Services to SPCC

• Mainly due to

impairments in Q4

2017

Commercial effort driving EBITDA improvement

-5.9

+1.0

+21.1

+4.9

+4.8 +1.2 -2.9+30.0

Net ResultQ4 2016

Net ResultQ4 2017

EBITDA D&A Net FinancialExpenses

FX Tax Net ResultQ1 2018

NET RESULT: Q1 2018 vs. Q4 2017 +29.0 MUSD

7ENGIE Energía Perú - Quarterly Results Q1 2018

• Methodology

adjustment in 2017

• Lower outstanding debt

• Interest on tax adjustment

in 2017

+94.2

+108.1 -6.3-37.1

+5.3 +1.5 +71.5

EBITDAQ1 2016

EBITDAQ1 2017

∆ CMg Commercial Contracts Other Income Intipampa EBITDAQ1 2018

EBITDA: Q1 2018 vs. Q1 2017 -36.6 MUSD

8

- 34%

• SPCC PPA

maturity

• Lower prices as

a result of

unbalanced

market

• LNG pipeline

event


• Jetty contract mainly one shot

initial payment

• Services to SPCC

Expected PPA maturities and lower prices due to unbalanced market

explained margin contraction

+53.0+55.0 -36.6

-1.7+2.0

-2.4

+13.7 +30.0

Net ResultQ1 2016

Net ResultQ1 2017

EBITDA D&A Net FinancialExpenses

FX Tax Net ResultQ1 2018

NET RESULT: Q1 2018 vs. Q1 2017 -25.0 MUSD

9

- 45%

• Methodology

adjustment

• Lower outstanding

debt


STOCK PRICE PERFORMANCEHigher regulatory and political uncertainty driving Q1 2018 price decrease with low liquidity levels

10

Financial Market Data – March 2018

Number of shares issued 601,307,011

Share price (PEN) – 31/03/2018 6.89

VWAP (3m) – (PEN) 6.87

52 week – high – (PEN) 8.50

52 week – low – (PEN) 6.50

Market Cap (MUSD) 1,285

Enterprise Value (EV) (MUSD) 2,048

EV / EBITDA 7.1x

Price to Book Value (P/B) 1.2x

Price / Earnings ratio (P/E) 12.3x

Daily avg. trading volume (mm sh) 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 Q1 2018, the share price decreased from 7.29 to 6.89 S/./sh; (-5.5%); while the

exchange rate appreciated slightly against the USD (3.224 PEN/USD). The share

price decreased in a context of higher volatility due to uncertainty regarding

regulatory issues related with the natural gas price declaration mechanism and

political uncertainties.

467663

1,020

793 839

1,602

1,187

1,759

2,0052,075

1,427

1,611

1,3511,285

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 2018

MU

SD M

US

D

Net Result Dividends Market Cap

*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


EQUITY ANALYST VIEW

11

PE

N /

Sh

are

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

2018 Mar

Consensus

Price as of March

31rst 6.89

25%

Upside

7.0

BuySell Mantain

9.0

ENGIE Energía Perú - Quarterly Results Q1 2018 11

32

42

28

13 12 1520 20

2431 33

24

43

31

11 13

16

1822

309

34 3642

41

15

10 10

34

77

42

71

85

59

24 25

31

3842

54

49 49

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

DIVIDEND PAYMENTS: 680 MUSD since 2004

12

Dividend Policy: Minimum payout ratio of 30%

Payout ratio

of 38% in

2017


THANKS

13

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 [email protected]

Rocío Vásquez, 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


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

14

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

508 employees

Financial discipline to support future growth ambitions,

AAA local rating

Sponsored by a global leader, ENGIE S.A.*


ENGIE Energía Perú · 2018 Q1 HIGHLIGHTS 2 Total energy generation (SEIN) grew 1.7% in Q1 2018...

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