engie energía perú · the south of peru which will require an investment of 400 musd in 2014...

ENGIE Energía Perú

June 2016

AGENDA

2

Section 1 Peruvian Energy Industry

Section 2 Company Overview

Section 3 Strategy

Section 4 Financial Results

Section 5 Capital Structure

PERUVIAN ELECTRICITY MARKET

3

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

2,028 MW IN OPERATION

677 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

Source: ENGIE as of December 2015

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

STRUCTURE & ACTORS

4

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

ELECTRICITY MARKET CONCEPTS

5

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

SUPPLY & DEMAND

6

System is based mainly on hydro and natural gas from Camisea Field

Electricity demand increased on average 7% annually between 2005 and 2015 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 (%)

AGENDA

7



Section 3 Strategy



SPONSOR

8

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

and energy services.

OWNERSHIP STRUCTURE

9

• ENGIE (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 June 2016, the Company reported 558

institutional and individual shareholders (375 as of

December 2013).

As of 6.30.2016 %

ENGIE 61.77

Integra – Fondo 2 7.02

Profuturo – Fondo 2 5.20

Others 26.01

62%27%

6% 5%

GDF SUEZ AFPs Insurance Cos. Others

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

10

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

DIVERSIFICATION: OPERATIONS (2,028MW) + PROJECTS (677MW)

11

Nodo Energético Project

NTP July 2014

Estimated COD 1Q 2017

Additional 600 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.

ORGANIZATIONAL STRUCTURE

12

AGENDA

13



Section 3 Strategy



STRATEGY

14

A. Development

Portfolio Balance: hydro vis-a-vis thermo

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 will require an investment of 400 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

ORGANIC GROWTH: 2,028MW in IH 2016…

15

-

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 2016 2017 2018 2019 2020

MW

A

3055

MW

374

MW

1952

MW

2705

MW

AVERAGE

GROWTH

17%

Hydro & Solar Gas Dual Fuel

I

Investment Plan 1.6 BUSD

B

C

D

E

FG

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

2016 CCGT Chilca 2 full 37 MW

I. 2017 Nodo Ilo 600 MW

J. 2018 Intipampa Solar 40 MW

K. 2020 OC Nodo (CCGT option) 350 MW

Phase-out

2028

MW

H

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

…

PROJECTS IN CONSTRUCTION +713MW (2014-2017) (1/2)

16

Nodo Energético Ilo Project +600 MW

In 2013, the Government of Peru (“GoP”) decided to promote an investment in 1,000 MW

Cold Reserve (+/-20%) in the southern cities of Ilo and Mollendo.

ENGIE Energía Perú (former EnerSur) won a bid to build and operate a 500 MW (+/-

20%) thermal cold reserve plant in Ilo (“Nodo Energético” Project). The project is backed

by a 20 year Investment Agreement with the Peruvian State. Initially, the plant will

operate with diesel to offer stability to the electricity system, and later with natural gas

once the gas pipeline currently under development is completed. Total investment

estimated in 400 MUSD.

Expected Commercial Operation Date (COD): 1Q 2017

Phase of Development:

• EPC contracts signed with Técnicas Reunidas/JlJC (Plant) & Abengoa (TL) / Notice to

Proceed Jul’14

• PPA Contract under Investment Agreement for 600 MW at 5.75 USD/kW-month

• Financial Leases for 290 MUSD signed with BCP and BBVA

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


• 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

NEW SOLAR PROJECT +40MW (2016-2018) (2/2)

17

Intipampa 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

of 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): 2018


• EPC contract under evaluation

• PPA Contract under investment agreement for 108.404 GWh/year MW at 48.5

USD/MWh.

• Financing structure under evaluation (inside Balance Sheet)

CAPEX PLAN: 2010 - 2018

18

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 2017 400 -

Chilca 2 CCGT 130 2014 2016 130 -

Intipampa Solar 55 2016 2018 55

DEVELOPMENT OPPORTUNITIES

19

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

PROJECTS IN DEVELOPMENT: GAS TO SOUTH OPTION

20

A. Phase 1: convert existing 500 MW Cold Reserve Ilo31 + future 600MW Nodo Energético Project diesel units to

Natural Gas

Cold Reserve: Option granted under the

existing concession contract after year 5

(2018)

Nodo Energético: Option granted once

Natural Gas arrives to the South (2019-2020)

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 …

AGENDA

21



Section 3 Strategy



KEY MESSAGES FY 2015 & IH 2016

22

Market:

Better hydrology and oversupply of efficient capacity triggered a lower marginal cost. The lower marginal cost positively impacted

our margin due to our highly contracted commercial position

Operation:

Improved efficiency in Chilca 1 CCGT and Ilo1 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 was positively impacted in 2015 due to a progressive reduction 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:

Quitaracsa HPP reached commercial operation date (“COD”) on October 2015 adding 114 MW of efficient installed capacity to our

portfolio

On May 2016 Chilca 2 project reached commercial operation date of its first turbine in open cycle adding 75.5 MW to the efficient

portfolio. The second turbine to complete the combined cycle plant is expected to reach COD during the IVQ 2016

Construction of Chilca 2 and Nodo Ilo under track on budget, timing and performance

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

PRODUCTION AND ENERGY BALANCE

23

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

operation of new efficient generation plants and commercial efforts…

GWh2015 /

2014

IH'16 /

IH'15

Yuncán HPP 898 14% 948 13% 921 12% 901 10% -2% 537 13% 453 10% -16%

Quitaracsa HPP 0 0% 0 0% 0 0% 88 1% - 0 0% 302 6% -

Chilca1 CCGT 4,222 68% 5,771 78% 5,979 80% 5,838 66% -2% 2,843 66% 2,535 54% -11%

Chilca2 CCGT 0 0% 80 2% 0%

Ilo21 (Coal) 556 9% 837 11% 163 2% 248 3% 52% 24 1% 316 7% 1243%

Ilo1 (Diesel) 106 2% 130 2% 30 0% 62 1% 107% 10 0% 112 2% -

Ilo31 (Cold Reserve) 0 0% 5 0% 5 0% 35 0% 576% 7 0% 42 1% -

Imports (Ecuador) 0 0% 13 0% -

Auxiliaries -255 -4% -188 -3% -212 -3% -100 -1% -53% -48 -1% -110 -2% 128%

NET GENERATION 5,528 89% 7,502 101% 6,887 92% 7,072 81% 3% 3,373 79% 3,743 80% 11%

COES: NET 691 11% -109 -1% 609 8% 1,711 19% 181% 916 21% 922 20% 1%

CLIENTS DEMAND 6,219 100% 7,393 100% 7,496 100% 8,783 100% 17% 4,288 100% 4,665 100% 9%

2012 IH 2016IH 20152013 2014 2015

EBITDA GROWTH: record EBITDA in 2015

24

-

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

ChilcaUno2006.12

OC TG12ChilcaUno

2007.07

▼

Indexation▼

▲OC TG21

ChilcaUno2009.08

▲CCGT

ChilcaUno2012.11

Cold ReserveIlo31

2013.06

▼

QuitaracsaHPP

2015.10

▼

NET RESULT GROWTH: record Result in 2015

25

-

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

ChilcaUno2006.12

OC TG12ChilcaUno

2007.07

▼

Indexation▼

▲OC TG21

ChilcaUno2009.08

▲CCGT

ChilcaUno2012.11

Cold ReserveIlo31

2013.06

▼

QuitaracsaHPP

2015.10

▼

EBITDA 2015 vs. 2014 (in MUSD)

26

+12%

COES Comp. Lower Capacity New PPAs End of PPAs & Extraordinary & COD Impact

revenues (phase- lower demand Expenses Quitaracsa

out Ilo1)

NET RESULT 2015 VS. 2014 (in MUSD)

27

+31%

Depreciation Financial Result Tax Extraordinary CODNet Result

2014

Net Result

2015

COMMERCIAL PORTFOLIO: CONTRACTS (>30MW) PROVIDE A

STABLE CASH FLOW FOR THE FUTURE

28

AntaminaLas Bambas

Cerro Verde

Cajamarquilla

SPCC

Lic LP2009-04

Lic LP2009-03

Lic LP2009-06

Lic LP2009-01

BilateralM.Regul…

BilateralM.Libre

0

50

100

150

200

250

300

350

400

450

0 2 4 6 8 10 12 14 16 18

Co

ntr

ac

ted

Ca

pa

cit

y (

MW

)

Years to Maturity

Clientes Libres Clientes ReguladosFREE CLIENTS REGULATED CLIENTS

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

Financial Market Data as of Jun’16

Number of shares issued 601,307,011

Share price (PEN) 8.65

Market Cap (MUSD) 1,617

Enterprise Value (EV) (MUSD) 2,621

EV / EBITDA 7.9x

Price to Book Value (P/B) 1.7x

Price / Earnings ratio (P/E) 8.8x

EV: Market Cap + Net Debt

P/B: Market Cap / Book Value of Equity

Source: SMV, Lima Stock Exchange, Financial Statements as of June 30th 2016

ANALYSTS: IH 2016

30

Sell - Underperfom Neutral - Market Perform Buy - Outperform

PE

N /

Sh

are

ACTUAL Price

8.65 Upside

+17%

8

7

9

10

11

6

Consensus

10.10

DIVIDEND PAYMENTS: 582 MUSD since 2004

31

Change in Dividend Policy since 2010: Minimum 30%

54

MU

SD

4238

31

2524

59

85

71

77

Extraordinary

Second Semester

First Semester

Annual54

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

AGENDA

33



Section 3 Strategy



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 IH 2016

Cash 97 25 29 52 78

Current \ other Assets 102 196 169 169 213

Fixed Assets (PP&E-net) 1,015 1,162 1,380 1,673 1,758

Other non-current assets 131 135 146 159 158

Total Assets 1,345 1,518 1,724 2,053 2,207

Other liabilities 131 153 180 228 251

Senior debt 504 726 808 954 1,004

Subordinated debt 160 - - - -

Shareholders’ equity 550 639 736 871 952

Total Liabilities & Equity 1,345 1,518 1,724 2,053 2,207

Balance Sheet

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.

FINANCIAL DEBT STRUCTURE AS OF IH 2016

36

Lender Type Currency Facility O/S Initial Date Maturity Date Rate Reference

Various Short Term MPEN 236.6 70.0 2015 2016 5.29% Short Term Synthetic Loans . Implicit Rate 0.02%

Local DCM Bullet Bond MPEN 120.7 40.0 Nov 2007 Nov 2017 6.81% 1° Issuance 1° - XC SWAP w/ Citibank. Int. Rate 5.755%

Local DCM Bullet Bond MPEN 84.1 30.0 Jun 2008 Jun 2018 7.19% 2° Issuance 1° - XC SWAP w/ Citi. Int. Rate 6.1690%

Local DCM Bullet Bond MUSD 10.0 10.0 Jun 2008 Jun 2028 6.31% 3° Issuance 1°

Local DCM Bullet Bond MPEN 250.0 76.3 Jun 2016 Jun 2026 7.125% 1° Issuance 3° - XC SWAP w/ BCP Int. Rate 3.380%

Local DCM Bullet Bond MUSD 25.0 25.0 Dec 2010 Dec 2025 6.50% 6° Issuance 1°

Local DCM Bullet Bond MPEN 42.4 15.0 Dec 2010 Dec 2020 7.59% 7° Issuance 1° - XC SWAP w/ BBVA. Int. Rate 5.9738%

BCP F. Lease MUSD 299.5 149.8 Jun 2010 Dec 2019 6.6700% Financial Lease Chilca 1 CCGT

BBVA F. Lease MUSD 105.5 53.2 May 2011 May 2019 5.70% Financial Lease Cold Reserve Ilo31

BCP F. Lease MUSD 92.9 46.5 May 2011 May 2019 5.70% Financial Lease Cold Reserve Ilo31

BBVA F. Lease MUSD 134.8 134.8 Jul 2014 Nov 2021 4.90% Financial Lease Nodo – Under Construction

BCP F. Lease MUSD 121.0 121.0 Jul 2014 Nov 2021 4.90% Financial Lease Nodo – Under Construction

BTMU / SMBC Semi-Bullet Loan MUSD 100.0 100.0 Jun 2014 Jun 2020 L (3M) + 1.00% Medium Term Loan

BBVA F. Lease MUSD 85.9 85.9 Oct 2014 Jan 2023 4.20% Financial Lease Chilca 2 – Under Construction

Scotiabank Amortizing Loan MPEN 237.7 52.5 Dec 2015 Dec 2017 6.15% MUSD 70 - Synthetic Loan. Implicit Rate 0.84%

Total MUSD 1,270 1,004

111

161 156 151

93 83

1

50

50 15

40 30

15

25

76

10

2016 2017 2018 2019 2020 2021 2 0 2 2 2023 2024 2025 2026 2027 2028

Financial Leases Syndicated Loan Bonds

MU

SD

Debt Repayment Profile

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.

172 MUSD17%

832 MUSD83%

Floating Rate (Libor based) Fixed Rate

726 MUSD72%

278 MUSD28%

USD PEN + XCSY

1,004 1,004

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 600MW Nodo Energético Project, 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

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.

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

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.

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

[email protected]

Eduardo Milligan

CFO

[email protected]

[email protected]

engie energía perú · the south of peru which will require an investment of 400 musd in 2014...

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