engie energía perú · 2018 q2 highlights 2 total energy generation (sein) grew 2.9% in h1 2018...

ENGIE Energía Perú

Results as of June 2018

2018 Q2 HIGHLIGHTS

2

Total energy generation (SEIN) grew 2.9% in H1 2018 compared to H1 2017. As of June, EEP

maintained a leading position in the sector, accounting for 20% of the total capacity and 6% of the total

energy generation of the system

Q2 2018 EBITDA reached 71.2MUSD, same level of Q1 and 41% above Q4, consolidating the strong

commercial effort to re-contract available efficient capacity. Q2 2018 EBITDA decreased 33% compared to

Q2 2017. The decrease is mainly explained by the end of SPCC PPA and lower re-contracting prices given

market conditions

Q2 2018 Net Result reached 30.3MUSD, increasing significantly compared to Q4 2017 (1MUSD) and

impacted by lower EBITDA and higher D&A against Q2 2017

EEP successfully issued ~70.3MUSD of local corporate bonds @ 6.7%. The bonds were issued in local

currency and backed by a cross currency interest rate swap in two tranches resulting in a final cost of debt

in dollars of (35.1MUSD @ 4.91% and 35.2MUSD @ 4.88%)

ENGIE Energía Perú - Quarterly Results Q2 2018

108106

6050

71 71

Q1 Q2 Q3 Q4 Q1 Q2

2017 2018

MAIN FINANCIAL RESULTS Q2 2018

3

EBITDA Q2 Net Result Q2 Total Debt

951.3787.1

2017 Q2 2018 Q2

-17%

55 55

19 130 30

Q1 Q2 Q3 Q4 Q1 Q2

2017 2018

Total Debt MUSDEBITDA MUSD Net Result MUSD

Net Debt / EBITDA (12m)

Net Debt / EBITDA x

2.6 2.9

2017 Q2 2018 Q2

+12%


EBITDA

111143

2017 H2 2018 H1

+29%

EBITDA MUSD

Net Result

20

60

2017 H2 2018 H1

Net Result MUSD

+203%

-33% -45%

GWh∆

H1 2018 vs

H1 2017

∆

Q2 2018 vs

Q2 2017

Yuncán HPP 760 8% 889 11% 520 11% 499 12% 244 6% 225 10% -4% -8%

Quitaracsa HPP 484 5% 531 6% 360 8% 324 8% 157 4% 135 6% -10% -14%

Chilca1 CCGT 5,617 63% 5,303 63% 2,275 50% 668 16% 1,140 27% 445 21% -71% -61%

Chilca2 CCGT 220 2% 308 4% 22 0% 29 1% 11 0% 16 1% 34% 36%

Ilo21 (Coal) 773 9% 674 8% 371 8% 27 1% 143 3% 7 0% -93% -95%

Ilo1 (Diesel) 210 2% 86 1% 55 1% 0 0% 39 1% 0 0% -100% -100%

Ilo31 (Cold Reserve) 100 1% 7 0% 6 0% 2 0% 5 0% 0 0% -69% -93%

NEPI 18 0% 9 0% 4 0% 9 0% 3 0% 3 0% 113% -12%

Intipampa 0 0% 0 0% 0 0% 29 0% 0 0% 22 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% -76 -2% 2 0% -43 -1% -5 0% -102% -88%

NET GENERATION 7,914 88% 7,624 91% 3,536 78% 1,588 37% 1,699 40% 847 39% -55% -50%

COES: NET 1,061 12% 734 9% 1,000 22% 2,683 63% 497 12% 1,307 61% 168% 163%

CLIENTS DEMAND 8,976 100% 8,358 100% 4,536 100% 4,271 100% 2,196 51% 2,155 100% -6% -2%

Q2 2018H1 20182016 2017 H1 2017 Q2 2017

ENERGY PRODUCTION AND BALANCE Q2 2018Lower thermal generation in Q2 2018 and net buyer position in the spot market

4ENGIE Energía Perú - Quarterly Results Q2 2018

H

H

T

T

T

T

T

T

S

H Hydro T Thermal S Solar

MAIN RESULTS Q2 2018

5

Q2 2018 EBITDA stable vs Q1 2018 consolidating the commercial efforts taken during H2 2017

Q2 2018 EBITDA decreased -33% compared to Q2 2017 to 71MUSD, mainly explained by the end of SPCC PPA

(April 2017) which was partially offset by new PPAs. Q2 2018 Net result was affected by lower EBITDA and higher

D&A compared to Q2 2017

However EBITDA H1 2018 presents a pick up of 29% vs H2 2017 mainly explained by commercial efforts / clients

demand

Total debt decreased by 1.5% from March 2018, following the expected amortization schedule, and totalized

787MUSD


* Restatement by application of IFRS

** Does not include commercial penalty fees and impairment of assets

(MUSD) Q2 2018 Q1 2018 Q2 2017∆ Q2 2018

vs Q2 2017H1 2018 H2 2017 H1 2017

∆ H1 2018

vs H1 2017FY 2017 FY 2016 ∆ FY

Revenues* 127 132 147 -13% 259 253 319 -19% 576 641 -10%

EBITDA 71 71 106 -33% 143 111 214 -33% 325 309 5%

Net Result 30 30 55 -45% 60 20 110 -45% 130 132 -1%

Recurrent EBITDA** 71 71 106 -33% 143 113 186 -23% 298 330 -10%

Net Recurrent Result** 30 30 55 -45% 60 22 90 -33% 111 169 -35%

Total Debt 787 799 951 -17% 787 837 951 -17% 837 1,009 -17%

Net Debt 729 763 872 -16% 729 800 872 -16% 800 981 -18%

Net Generation GWh 847 740 1,699 -50% 1,588 4,087 3,536 -55% 7,624 7,914 -4%

Clients Demand GWh 2,155 2,116 2,196 -2% 4,271 3,822 4,536 -6% 8,358 8,976 -7%

Net Debt / EBITDA 12m 2.9 2.6 2.6 12% 2.9 2.5 2.6 12% 2.5 3.2 -22%

+182.0

+214.2 -28.0

+3.8 -58.5

+8.4 +2.6 +142.7

+110.8

EBITDAH1 2016

EBITDAH1 2017

Non recurrentevents

∆ CMg CommercialContracts

Other Income Intipampa EBITDAH1 2018

EBITDAH2 2017

EBITDA: H1 2018 vs. H1 2017 -71.6 MUSD

6

- 33%


• 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 H1 2017 partially

offset by commercial effort driving H1 2018

• Lower marginal

cost due to

new renewable

plants

• 2017 effect

‐28.0MUSD

mainly due to

commercial

penalty fee Las

Bambas

+ 29%

60.3

+102.3

+109.9+7.8 -71.6

-3.8+3.9 -2.3

+16.3

+19.9

Net ResultH1 2016

Net ResultH1 2017

Non recurrentevents

EBITDA D&A Net FinancialExpenses

FX Tax Net ResultH1 2018

Net ResultH2 2017

NET RESULT: H1 2018 vs. H1 2017 -49.6 MUSD

7ENGIE Energía Perú - Quarterly Results Q2 2018

• Methodology

adjustment in 2017

• Lower outstanding debt

• Interest on tax adjustment

in 2017

- 45%

+ 203%

• Tax related to

Las Bambas

penalty

+87.8

+106.1 -28.0

-1.0 -10.2

+1.8+2.5 +71.2

EBITDAQ2 2016

EBITDAQ2 2017

Non recurrentevents

∆ CMg CommercialContracts

Other Income Intipampa EBITDAQ2 2018

EBITDA: Q2 2018 vs. Q2 2017 -34.9 MUSD

8

• SPCC PPA

maturity

• End of Las

Bambas by the

end of August

2017


• Jetty contract

• Services to SPCC

Expected PPA maturities and lower prices due to unbalanced market

explained margin contraction

• 2017 effect

‐28.0MUSD due

to commercial

penalty fee Las

Bambas

- 33%

+30.3

+49.3

+54.8

+7.8

-34.9

-2.1+1.9 +0.1

+2.6

Net ResultQ2 2016

Net ResultQ2 2017

Non recurrentevents

EBITDA D&A Net FinancialExpenses

FX Tax Net ResultQ2 2018

NET RESULT: Q2 2018 vs. Q2 2017 -24.5 MUSD

9

- 45%

• Methodology

adjustment• Lower outstanding

debt


• Tax related to

Las Bambas

penalty

STOCK PRICE PERFORMANCE

10

Financial Market Data – June 2018

Number of shares issued 601,307,011

Share price (PEN) – 30/06/2018 6.55

VWAP (3m) – (PEN) 6.66

52 week – high – (PEN) 8.20

52 week – low – (PEN) 6.43

Market Cap (MUSD) 1,205

Enterprise Value (EV) (MUSD) 1,934

EV / EBITDA 7.6x

Price to Book Value (P/B) 1.1x

Price / Earnings ratio (P/E) 15.0x

Daily avg. trading volume (Msh) 0.11

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 Q2 2018, the share price decreased from 6.89 to 6.55 S/./sh; (-4.9%); while the

exchange rate appreciated slightly against the USD (3.269 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


467663

1,020

793 839

1,602

1,187

1,759

2,0052,075

1,427

1,611

1,351

1,205

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

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 April 2018 January 2018 January 2018

2018 Jun

Consensus

Price as of June 30th

6.55

31%

Upside

7.0

BuySell Mantain

9.0

ENGIE Energía Perú - Quarterly Results Q2 2018 11

DIVIDEND PAYMENTS: 680 MUSD since 2004

12

Dividend Policy: Minimum payout ratio of 30%

Payout ratio

of 38% in

2017


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

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]

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


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

502 employees

Financial discipline to support future growth ambitions,

AAA local rating

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


engie energía perú · 2018 q2 highlights 2 total energy generation (sein) grew 2.9% in h1 2018...

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