2018 Results and 2019 Strategy

March 6th 2019

Solid results confirming growth momentum

  • 2018 results in line with targets: net recurring income Group share at EUR 2.5 billion, net debt/EBITDA ratio at 2.3x.

  • Stable EBITDA demonstrates ENGIE's robust business model, with positive underlying momentum in growth segments offsetting the unfavorable impacts of unscheduled maintenance at Belgian nuclear plants, negative foreign exchange effects and dilution from disposals.

  • Solid organic growth in EBITDA (+ 5%), led by progress in the Group's key growth drivers, in particular Renewables and BtoB & BtoT Solutions.

  • Net debt reduction (EUR - 1.4 billion vs. end 2017), due to a robust operating cash flow and disposals. The Group's financial structure is solid, as confirmed by the rating agencies which position ENGIE as an industry leader in that respect.

  • Recap of 2016-2018 strategic delivery: a reconfigured asset portfolio, reduced commodity exposure, lower carbon intensity, and an improved growth profile. Transformation driven by portfolio rotation (EUR 16.5 billion of disposals nearly closed), strategic investments (EUR 14.3 billion of growth capex reinvested), efficiency (EUR 1.3 billion of cost savings since 2015), customer-centric commercial capability development and accelerating momentum in Renewables.

 Ambition to lead the zero carbon transition

A specific strategy for companies and local administrations and selective investments aimed at accelerating growth.

  • Strategic ambition to lead the industry in enabling a cost-efficient zero carbon transition for companies and local authorities, utilizing ENGIE’s unique combination of infrastructure expertise and client relationships.

  • Increasingly selective strategic and financial investment criteria across business lines and geographies, intensifying our investment focus in 20 countries and 30 urban areas.

  • €11-12 billion development CapEx accelerating growth for 2019-21, led by Client Solutions and Renewables.

  • Deploying uniquely integrated solutions spanning customer strategy, design, assets, services, digital platforms, financing and operations management.

  • In Renewables, targeting 50% of new projects dedicated to specific customers, to be a leading corporate PPA supplier, to add 9 GW of capacity by 2021, and to play a major role in sophisticated technologies including offshore wind and green gas.

Over the past three years, the ENGIE Group has undergone a deep transformation, by focusing its development on three core activities: gas, renewable energies and energy efficiency, while firmly positioning itself in innovative activities (green mobility and smart grids in particular). This transformation has allowed ENGIE to return to organic growth and establish itself as a leader in the competitive energy transition.

 

ENGIE’s ambition is to be the world leader in the growing market for integrated zero-carbon solutions

ENGIE’s customer transition roadmaps increasingly require a sophisticated integration of strategy, design, engineering, energy-efficient asset construction, digital platforms, operations management, financing syndication and outcome assurance. ENGIE believes that its unique capability to integrate all these solution elements “as a service” to its customers affords the Group a distinctive leadership position in the industry.

 

In Italy

With over 3.500 employees in more than 50 offices throughout the country, ENGIE is the first player in energy services and technical facility management, the second in gas sales (wholesale, BTB, BTC), the third in public lighting, the third in district heating and the fifth in electricity production through a modern production park combining gas-fired plants & renewable energy plants. Its local anchorage offers powerful answers to companies, territories and citizens’ needs.

Engie in Italy is present all along the energy value chain capitalizing on innovative offers and digital solutions. It is present on electricity production, energy storage, energy management, gas & electricity sales, ESCO services.

ENGIE develops tailored solutions for private customers, business customers and cities on energy but also on new services like green mobility.

ENGIE Italy recorded sales of 3,2 Billion Euro in 2018.

In Italy the commitment toward the zero-carbon emission is illustrated, for example, by a recent partnership with the Marcegaglia Group. It consists in the construction for Marcegaglia’s plants in Ravenna and Gazoldo degli Ippoliti (Mantova) of two gas-fired power plants to produce the electricity and heating, necessary for the processing of the steel. With a total capacity of 50 MW, these plants will allow a 25% reduction in energy costs and a 30% reduction of harmful emissions into the atmosphere. Further energy efficiency measures are also under definition.

ENGIE, is also the first operator in Italy to have signed a "Green PPA” contract supplying Wienerberger’s bricks production plants with power supply from renewable sources.

ENGIE contributes to the decarbonization of territories also through advanced district heating solutions, which avoids up to 50% of CO2 emissions to the environment, the efficient management of public lighting, which guarantees up to 70% energy savings.  Investments have positioned ENGIE as the third operator in both district heating (over 350 GWH managed and over 135,000 families served) and in public lighting (over 450,000 lighting points managed in over 200 municipalities).

The energy that ENGIE provides to families, condominium and SME is 100% green.

In 2018 ENGIE avoided over 300 000 Tons of CO2 to the environment.

Our strategy in 90"

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