2016 INVESTOR WORKSHOP June 28th, 2016

Strategic context June 28th, 2016

Isabelle KOCHER Chief Executive Officer

AGENDA FOR THE DAY

11:00 – 12:00

Strategic context Financials

12:00 – 13:00

Cocktail Lunch

13:00 – 15:30

Focus on Métiers & Technology

15:30 – 16:45

Q&A

16:45 – 17:00

Closing Remarks

2016 INVESTOR WORKSHOP

Isabelle Kocher

Judith Hartmann

EVPs / BU CEOs

Isabelle Kocher

3

KEY MESSAGES

Opportunities arising from the energy revolution

ENGIE today

2016 INVESTOR WORKSHOP

ENGIE Stance & Transformation Plan

ENGIE tomorrow

4

Opportunities arising from the energy revolution

KEY MESSAGES ENGIE today

ENGIE Stance & Transformation Plan

ENGIE today 2016 INVESTOR WORKSHOP

5

ENGIE tomorrow

ENGIE TODAY

LOW CO2 POWER GENERATION

2016 INVESTOR WORKSHOP

GLOBAL NETWORKS

CUSTOMER SOLUTIONS

6

LOW CO2 POWER GENERATION

World leader in IPP

Capacity breakdown

82% low CO2 6%

104 GW(1) installed 12% 6%

>80% low CO2

104 GW

(1)

Natural gas

21% renewables(2)

Renewables

21%

Nuclear Coal Other(3)

(1) 31/12/2015 figures at 100% - Pro forma announced disposals (US and coal Indonesia/India) (2) Excluding pumped storage for hydro capacity (3) Including pumped storage for hydro capacity 2016 INVESTOR WORKSHOP

7

55%

GLOBAL NETWORKS

European leader in gas infrastructures

EBITDA gas infrastructures 2015, in €bn

0.4 0.2

€23bn RAB in France 0.5 2.7

3.7

12bcm storage capacity GRDF & GRTgaz

Expertise in power T&D

Storengy Elengy Other Europe & International

2016 INVESTOR WORKSHOP

8

CUSTOMER SOLUTIONS

21m customers in Europe

EBITDA by type of business 2015, in €bn

0.4

Global leader in energy solutions for cities +250 DHC networks worldwide

0.8

1.6 0.4 B2B B2T B2C

2016 INVESTOR WORKSHOP

9

A GLOBAL AND DIVERSIFIED FOOTPRINT Total EBITDA 2015

23% 2%

1%

€0.6bn 6%

14%

20%

40%

€6.2bn

€11.3bn

55%

57%

96%

46%

North America

Europe(2) 10%

50%

CO2 LIGHT ACTIVITIES(2) EBITDA >90%

(1) Excludes merchant power generation, E&P and LNG supply & sales (2) Low CO2 power generation, gas infrastructures & LNG, downstream 2016 INVESTOR WORKSHOP

20

3 CLEAR DIRECTIONS FOR 2018 ACTIONS TRIGGERED

€15BN ROTATION PROGRAM

2016 INVESTOR WORKSHOP

40% already announced Average P/E2015 >33x

€15BN GROWTH CAPEX PROGRAM

€10.5BN already committed focused on core strengths

21

€15BN GROWTH CAPEX PROGRAM FOCUSED ON CORE STRENGTHS GROWTH ENGINES PROFITABILITY

LOW CO2 POWER GENERATION

GLOBAL NETWORKS

CUSTOMER SOLUTIONS

2016 INVESTOR WORKSHOP

RES+Thermal contracted ROCE 2015

10%

Infrastructure ROCE 2015

7%

Services & supply ROCE 2015

11%

VALUE CREATION LEVERS

● ● ● ●

Pipeline by 2021 (~11 GW renewables, ~7 GW gas) Acquisitions of Solairedirect, Maia Eolis Creation of ENGIE Solar Terrawatt initiative

● ~€5bn Capex 2016-18 in French regulated networks ● ~€1bn Capex 2016-18 in gas infrastructure outside of France ● Seizing new opportunities (Green gas, green mobility) ● Building a leading platform in the US: acquisition of Green Charge Networks, Opterra, Ecova ● International expansion ● Engie brand: key asset and already promising ● B2T: continuous growth in heating cooling networks. Digital solutions offering opportunities

22

TARGET: UNLOCK FUTURE GROWTH DRIVERS

2016-2018 CAPEX PLAN

LOW CO2 POWER GENERATION

PROVEN INNOVATION

Demand side management

Decentralized generation GLOBAL NETWORKS Green mobility

CUSTOMER SOLUTIONS

2016 INVESTOR WORKSHOP

Connected buildings platform (Vertuoz)

23

TARGET: UNLOCK FUTURE GROWTH DRIVERS +3-5 years

>5 years

POTENTIAL GAME CHANGERS

Large scale green gas

Hydrogen

Low cost energy storage

Autonomous micro-grids

2016 INVESTOR WORKSHOP

24

€1.5BN SPENDINGS TO LEAD THROUGH TECHNOLOGY: LAUNCH OF ENGIE TECH Collaborative projects: Gaya, 13 partners

~100 collaborations with universities

KEY PROGRAMS

DIGITAL Analytics

NEW VENTURES

8 investments

580 projects innov@ENGIE

UNICORN FACTORY

€115m Ventures Fund

INNOVATION & NEW BUSINESS

800 researchers in 9 centers

Mobile Apps Internet of Things API Management

RESEARCH & TECHNOLOGY

Cyber Security

Partnerships with incubators ~20 employee projects in Europe

OPEN INNOVATION ECO-SYSTEMS 50 innovation managers connected to innovation ecosystem

2016 INVESTOR WORKSHOP

Open Labs: battery lab, 3D printing lab

25

A CONTINUOUS IMPROVEMENT PROCESS TARGETS

ACTIONS TRIGGERED

LEANER ORGANIZATION

Suppression of the 5 business lines corporate layers

OPERATIONAL EFFICIENCY

Lower O&M costs through renewable asset performance management platform

REAL ESTATE RATIONALIZATION WORLDWIDE

Regrouping businesses & rent renegotiations

PURCHASING EFFORTS

Rationalizing the portfolio of suppliers

LEAN 2018 PROGRESSING WELL EBITDA IMPACT TARGETED: €0.5BN BY END 2016, €1BN BY 2018

2016 INVESTOR WORKSHOP

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INTERNAL TRANSFORMATION TO BUILD AN AGILE GROUP TARGETS

ACTIONS TRIGGERED

HIGHLY CONNECTED ORGANIZATION

24 BUs anchored locally focused on stakeholders

A COMMON PURPOSE

ENGIE 50 and new Executive Committee

DECENTRALIZED LEADERSHIP

Empowerment of BUs

SIMPLE & COLLABORATIVE ENVIRONMENT

100,000 Yammer users deployed in 6 months New collaborative model

ATTRACT TALENTS

Brand recognition higher than ex-GDF SUEZ LinkedIn Top Attractors: 1st among industrial companies

2016 INVESTOR WORKSHOP

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NEW ORGANIZATION IN PLACE Métiers lines

24 BUs

UK Benelux

LOW CO2 POWER GENERATION

France (8 BUs) GRDF GRTgaz Elengy Storengy

North America

GLOBAL NETWORKS

France France France France

& B2B B2C Renewable Energy Networks

North, South Eastern Europe

Generation Europe

China MESCAT

Latin America Africa Asia-Pacific Brazil

CUSTOMER SOLUTIONS

2016 INVESTOR WORKSHOP

Global Energy Management

Global LNG

E&P

Tractebel Engineering

GTT

28

Opportunities arising from the energy revolution

KEY MESSAGES ENGIE today

ENGIE Stance & Transformation Plan

ENGIE tomorrow 2016 INVESTOR WORKSHOP

29

ENGIE tomorrow

A VISION OF ENGIE FOR 2018 AND BEYOND

Transformation

2015

2018

Growth

Development of innovative solutions with massive global potential

Build on current strengths to expand and rebalance the portfolio

Dispose of non strategic assets

2016 INVESTOR WORKSHOP

30

BUILD ON CURRENT STRENGTHS TO EXPAND AND REBALANCE THE PORTFOLIO Commissioning of new projects, notably solar and wind TODAY

LOW CO2 POWER GENERATION

Renewable development platforms

Growth in RAB through investments and new regulation for storage

GLOBAL NETWORKS

Opportunities for international gas and power infrastructures

Margin improvement and cross sales TOMORROW Volume growth across all segments

CUSTOMER SOLUTIONS

2016 INVESTOR WORKSHOP

Tuck-in acquisitions Acceleration of international deployment

31

DEVELOPMENT OF INNOVATIVE SOLUTIONS WITH MASSIVE GLOBAL POTENTIAL Techno & digital command

ECONOMIES OF SCALE Local anchorage and global presence

AGILITY Open platforms with partners

INCREASED CUSTOMER VALUE Customer centricity

2016 INVESTOR WORKSHOP

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ATTRACTIVE PROPOSITION TO SHAREHOLDER

Business derisking & return improvement

Visibility on sustainable dividend policy

Development of global innovative solutions

3 value creation drivers

2016 INVESTOR WORKSHOP

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Finance: executing the transformation plan Investor workshop June 28th, 2016

Judith HARTMANN Executive Vice President, Chief Financial Officer

2016–2018

INVESTMENT PROPOSAL CLEAR FINANCIAL PRIORITIES

IMPROVED RISK/ REWARD PROFILE

HIGHER RETURNS

REINFORCED FINANCIAL STRUCTURE

VISIBILITY ON DIVIDEND

FOR IMPROVED VISIBILITY ON GROWTH

CONFIDENCE IN EXECUTION

2016 INVESTOR WORKSHOP

35

AGENDA

SIMPLER & LEANER ORGANIZATION

CREATING VALUE THROUGH THE TRANSFORMATION

ENGIE POST 2018

Decentralized and customer oriented

Lean 2018 improving profitability

Improved risk/reward profile

Portfolio rotation speeding up strategic shift

Higher returns

Agile - shortened decision cycle Improved visibility on risk reward profiles

Focused reinvestments in high profitability areas

Reinforced financial structure

2016 INVESTOR WORKSHOP

Visibility on dividend

36

SIMPLER & LEANER ORGANIZATION

ORGANIZED FOR SUCCESS LOCAL AND DECENTRALIZED 24 BUS 10 REPORTING SEGMENTS Other(1)

North America

Customer oriented E&P

0.5 0.6 1.5

Latin America 1.6

GEM & LNG

Agile - shortened decision cycle

0.2 2015 EBITDA

1.2

€11.3bn Clear accountability Infrastructures Europe

Management incentives aligned

Africa / AsiaPacific / ME

0.4

3.4 1.3 0.6

Benelux France

Europe excl. France & Benelux

Unaudited figures (1) Generation Europe, Tractebel Engineering, GTT, other (incl. NewCorp) 2016 INVESTOR WORKSHOP

37

SIMPLER & LEANER ORGANIZATION

IMPROVED VISIBILITY ON RISK/REWARD PROFILES 2015 EBITDA in €bn

LOW CO2 POWER GENERATION

3 Métiers

CUSTOMER SOLUTIONS

GLOBAL NETWORKS

RES+Thermal Contracted

Thermal Merchant

Infrastructures

Upstream

Services Retail

Other

TOTAL

North America, Latin America Africa/Asia Pacific/ME

~2.6

~0.7

0.2

-

0.1

(0.1)

3.4

France, Benelux Other Europe

~0.5

~0.3

0.2

-

1.4

(0.1)

2.3

10 Segments

excl. France, Benelux

3.4

Infrastructures Europe GEM & LNG, E&P Other

Total %

(1)

-

3.4

~0.2

~1.5

0.5

0.1

0.1

(0.2)

0.5

~1.6 14%

1.6 14%

(0.4)

11.3

~3.1 26% ~1.6 14%

3.7 32%

o/w ~1.2 renewables

1.2 services 0.4 retail

STRONG PLATFORMS ~65% of generation contracted or renewables • ~€1.2bn renewables, ~€1.9bn thermal contracted

1.7

(2015 EBITDA)

~32% / ~€3.7bn on infrastructures ~14% / ~€1.6bn on customer solutions

Unaudited figures (1) % excluding "Other" 2016 INVESTOR WORKSHOP

38

AGENDA

SIMPLER & LEANER ORGANIZATION

CREATING VALUE THROUGH THE TRANSFORMATION

ENGIE POST 2018

Decentralized and customer oriented

Lean 2018 improving profitability

Improved risk/reward profile

Portfolio rotation speeding up strategic shift

Higher returns

Agile - shortened decision cycle Improved visibility on risk reward profiles

Focus reinvestments in high profitability areas

Reinforced financial structure

2016 INVESTOR WORKSHOP

Visibility on dividend

39

CREATING VALUE THROUGH THE TRANSFORMATION

FOCUS ON PROFITABILITY 2015 ROCE(1) BY MÉTIER

~11%

Customer solutions

Lean 2018

RES+Thermal Contracted

~10%

~7%

Infrastructure

Thermal Merchant

Upstream (E&P, GEM & LNG, GTT)

GROUP ROCE Total

(2) TotalROCEp ROCep GROUP

excluding €5.2bn of assets under construction

IMPROVE RETURNS WITH 3 LEVERS

Portfolio rotation to exit activities with lower returns

~2%

~3%

~6%

Investment in higher return activities, building on core competencies

~7%

Unaudited figures (1) ROCE computed on average 2015 industrial capital employed (2) ROCEp computed on end-2015 productive industrial capital employed (excl. assets under construction) 2016 INVESTOR WORKSHOP

40

CREATING VALUE THROUGH THE TRANSFORMATION

LEAN 2018: INCREASING OUR EFFORTS ON EFFICIENCY Addressable cost base in €bn (unaudited)

PERFORM 2015 SOLID TRACK RECORD Cost base decrease in energy activities & corporate Profitable growth in services

22.2(1)

23.2

11.7

13.3

10.5

10.0

2012

2015

Services +20% EBITDA growth in 3 years +80 bps EBIT margin improvement (5.3% in 2015) Energy & Corporate -5% in 3 years

Net EBITDA impact on opex after inflation in €bn ~1.0

LEAN 2018 INCREASE EFFORTS ~+50% compared to Perform 2015 (yearly basis)

vs.

0.9

~0.75 ~0.5

3 years

4 years

Cultural transformation Simplification Continuous improvement

2016

2017

Lean 2016-2018

Perform 2012-2015

(1) Pro forma SUEZ equity consolidated, not adjusted for IFRS 10/11 2016 INVESTOR WORKSHOP

41

CREATING VALUE THROUGH THE TRANSFORMATION

LEAN 2018: ALIGNING COST BASE WITH STRATEGY INTENSITY OF SAVINGS TAILORED TO BUSINESS DYNAMICS

Significant step-up to improve competiveness

Radical changes in market environment

HIGH ■ E&P ■ GEM ■ LNG

■ Generation EU

MEDIUM 32%

■ Benelux

EBITDA SAVINGS

43%

■ Corporate

■ France B2C ■ France renewables

■ Other Europe ■ North America ■ Latin America ■ MESCAT

25%

Continuously managed and controlled growth MODERATE

■ France Infrastructures ■ France B2B, France Networks ■ Africa, China, ■ UK ■ GTT, Tractebel

2016 INVESTOR WORKSHOP

42

CREATING VALUE THROUGH THE TRANSFORMATION

LEAN 2018 BY LEVER: SIGNIFICANT CONTRIBUTION FROM SUPPORT FUNCTIONS Operations

G&A

■ Lower O&M costs …predictive maintenance (digital), 15% reduction in 5 years for renewables in France (operational efficiency)

■ Transformation plans for each support function

■ Restructuring low-margin service activities ...€80m potential by 2018

57%

EBITDA impact

43%

■ Real estate rationalization ... >€30m potential by 2018: dynamic offices, regrouping businesses, rent renegotiations ■ Expansion of Global Business Support ■ Drastic cut in consulting …>€40m potential by 2018

■ Mothballing, closing of lowerperforming power plants

of which Procurement ~45% ■

Use global scale of the Group in key categories ... gas turbines 2015 negotiation: template for wind turbines and solar panels negotiations…€60m potential by 2018

■

Addressable spend with world-class internal suppliers: 3  6% by 2018 ...€60m potential by 2018

■

Centralize indirect procurement via shared service center... €80m potential by 2018

■

Develop sourcing in best cost countries …>€40m potential by 2018

2016 INVESTOR WORKSHOP

43

CREATING VALUE THROUGH THE TRANSFORMATION

€15BN ROTATION PROGRAM WELL ON TRACK PROVEN TRACK RECORD In €bn

ALREADY ~40% ANNOUNCED In €bn 15 US thermal (gas coal) Paiton, Meenakshi (coal)

50% TEN transmission line

~7

~6

US merchant hydro

4.4

~4 ~3

2010

~3

2011

2012

2013

2014

Positive impact on net debt: ~€24bn since 2010

~1

1.4

2015

Closed

Closing under execution

Process launched

Under review

Total net debt impact

Coal, merchant and non-core assets

Strategic & financial criteria

Rigorous review: by business, by geography, asset by asset Full or minority stake disposals

Unaudited figures ; excluding SUEZ as from 2011 2016 INVESTOR WORKSHOP

44

CREATING VALUE THROUGH THE TRANSFORMATION

€12bn GROWTH CAPEX ON STRATEGIC ACTIVITIES EXECUTING THE GROWTH PLAN As of 12/31/2015 In €bn

FOCUSED INVESTMENTS Customer Solutions

B2B

~15

32%

Low CO2

Tuck-in acquisitions

~4.5

Global Networks

23%

New opportunities

€12bn

B2C 2%

9%

22% France

B2T

12%

~12 ~10.5

Strategic activities

Existing development

INVESTMENTS LARGELY IDENTIFIED(1) >2.0 ~1.5

Capex plan 2016-18

Outside France

E&P Legacy thermal

Additional opportunities ~25%

Capex plan 2016-18

€12bn ~75%

Identified or committed

(1) As of May, 31, 2016

2016 INVESTOR WORKSHOP

45

CREATING VALUE THROUGH THE TRANSFORMATION

LARGE PIPELINE OF ONGOING PROJECTS IPP Leader

LOW CO2 POWER GENERATION

Projects

Country

Solar

Brazil, Chile, Peru

Solar

Kathu 1 (solar concentrated) Campo Largo (wind)

Santa Monica (wind)

Africa, India, USA South Africa Brazil Brazil

Energy services

Gas value chain

GLOBAL NETWORKS Capex 2016-18 in €bn

CUSTOMER SOLUTIONS Capex 2016-18 in €bn

Projects

Country

0.4

Gazpar (distribution)

France

0.3

0.4

Val de Saône (transmission)

France

0.7

0.1

Zone Nord fluidification France (transmission)

France Renewables France

0.5

Ilo Nodo (diesel/gas) Peru

0.1

Chilca (gas)

Peru

0.1

Mirfa (gas)

UAE

0 as of COD+1

5

Contracted / Regulated 0

2016 INVESTOR WORKSHOP

Joint ventures …to limit risks and equity check

47

CREATING VALUE THROUGH THE TRANSFORMATION

EXECUTING 3 TRANSFORMATIVE PROGRAMS TO IMPROVE COMPANY PROFILE By main effect In €bn

PERFORMANCE PLAN

FOCUSED INVESTMENTS

€1bn

€7bn Maint. €15bn Growth

net EBITDA

CLEAR MEDIUM-TERM OBJECTIVES

PORTFOLIO ROTATION PROGRAM

€15bn net debt

Lower merchant exposure +0.9/+1.1 11.3

(0.7)

Lower CO2 emissions

+1.0

Closer to customer Limited dilutive impact of disposals at NRIgs level

30% merchant 70% contracted/ regulated

2015 EBITDA

Prices E&P (oil, gas) Outright power

2016 INVESTOR WORKSHOP

Net Opex

COD

Scope out & others

85% contracted/ regulated

Support solid capital structure and reduce net debt

2018 EBITDA

48

ENGIE POST 2018

CASH EQUATION DURING TRANSFORMATION PHASE

2016-18 CASH EQUATION

VISIBILITY ON DIVIDEND

In €bn

2016 €1/share dividend

€22bn total Capex €15bn disposal

~€9-10bn Dividend and others CFFO

2016 INVESTOR WORKSHOP

Cash uses

2017-18 €0.7/share dividend in cash

STRENGTHEN FINANCIAL STRUCTURE NET DEBT REDUCTION

49

AGENDA

SIMPLER & LEANER ORGANIZATION

CREATING VALUE THROUGH THE TRANSFORMATION

ENGIE POST 2018

Decentralized and customer oriented

Lean 2018 improving profitability

Improved risk/reward profile

Portfolio rotation speeding up strategic shift

Higher returns

Agile - shortened decision cycle Improved visibility on risk reward profiles

Focus reinvestments in high profitability areas

Reinforced financial structure

2016 INVESTOR WORKSHOP

Visibility on dividend

50

ENGIE POST 2018

CAPITAL ALLOCATION TO IMPROVE RISK & GROWTH PROFILE AND ACCELERATE TRANSFORMATION ACTIVE CAPITAL ALLOCATION ~€60bn(1) CUSTOMER SOLUTIONS

GROWTH SUPPORTED BY TRENDS >2018 EBITDA CAGR

Upstream

Mid/high single digit

Infrastructures

Low single digit(2)

GLOBAL NETWORKS

Mid single digit(2)

Coal

● Decentralized and integrated customer solutions

● Global needs for energy infrastructures

̵ Massive solar development ̵ Decentralized generation

● Accompany renewables development with gas

RES & Thermal Contracted

2015

● Energy efficiency

● Renewable capacity

Thermal Merchant

LOW CO2 POWER GENERATION

MEDIUM-TERM DRIVERS

2018

Industrial Capital Employed(3)

GROUP post 2018

EBITDA: mid single digit(2) CAGR CAPEX: €5-6bn yearly

(1)Including classification of US merchant assets as held for sale as of end 2015, breakdown unaudited (2) Excluding merchant activities (3) Breakdown excluding others 2016 INVESTOR WORKSHOP

51

CONCLUSION

A STRONGER FINANCIAL PROFILE: LOWER RISK / HIGHER GROWTH VISIBILITY IMPROVED RISK REWARD PROFILE

2015

INCREASED RETURNS (ROCE)

>2018 % EBITDA

(1)

17%

23%

~70%

>85% contracted/ regulated

14% contracted/

regulated 14%

6%

32% Low CO2 generation

Global Networks

Customer Solutions

REINFORCED FINANCIAL STRUCTURE

Merchant

2015

2018

HIGH VISIBILITY ON DIVIDEND

Decrease in net debt 27.7

2015

2016:

€1/share dividend

2017-18:

€0.7/share dividend in cash

2018

(1) Excluding Others 2016 INVESTOR WORKSHOP

52

Customer Solutions Investor workshop June 28th, 2016

Jérôme TOLOT Executive Vice President

CUSTOMER SOLUTIONS

LEADER IN CUSTOMER SOLUTIONS B2B

B2T

B2C

BUILDINGS & INDUSTRY

CITIES & TERRITORIES

Offer the energy performance solution most adapted to the needs of each client

Optimize management of territories

RETAIL CUSTOMERS & SMALL BUSINESSES

Improve energy performance for industrial clients

Bring energy utilities that are essential to industry and to large tertiary sites

Design, install and maintain the most complex systems (eg data centers)

Offer a panel of Facility Management services, complementing the energy efficiency solutions

LARGE INFRASTRUCTURES

Install and operate local urban infrastructures (heating / cooling networks, mobility, lighting…)

Design and implement outsourcing solutions to improve performance of public services (Business Process Outsourcing - BPO)

Offer energy contracts & increasing cross-selling services

Supply electricity & gas

Offer digital energy efficiency solutions

Contribute to the development of large infrastructures optimizing the energy mix

Contribute to the evolution Design, build and of mature energies maintain renewable (nuclear, oil & gas,…) energies

2016 INVESTOR WORKSHOP

Adapt large transport Deploy telecommunications and distribution infrastructures highly infrastructures available and secure

Make the city more connected to offer new services to citizens (smart cities)

Propose innovative value added services Boiler & heat pumps maintenance Installation & Financing Home emergency Insurance Water softening

54

CUSTOMER SOLUTIONS

FINANCIAL OVERVIEW

EBITDA

EBITDA

CAPEX

BY BUSINESS

BY GEOGRAPHY

BY BUSINESS

EBITDA 2015 €1.6bn

EBITDA 2015 €1.6bn

CAPEX 2015 €0.9bn 2%

5% 7%

0.4 26%

15% 0.4 46%

0.8 52%

17%

0.4 22%

B2B

0.5 52%

56%

B2T

2016 INVESTOR WORKSHOP

B2C

France

Benelux

APAC

Other

Europe other

B2B

B2T

55

B2C

CUSTOMER SOLUTIONS

MULTIPLE GROWTH DRIVERS 3 MAJOR DEVELOPMENT BRICKS

Organic Growth

External Growth

Accelerate growth in Europe & outside Europe thanks to mature European BUs

Powerful acceleration factor

Tuck-in acquisitions

Specific customer & activity segment priorities identified in each BUs

Transformation plan 2016 - 2018

Leverage growth through key accounts approach and cross-selling

Reach critical mass to perform international development

4 countries concentrating our growth ambition

Operational Performance (Lean 2018) Specific focus on purchasing | Introduction of digital into solutions | Search for leaner operational organisations

Target of >50% EBITDA growth by 2018 Top line organic growth

2016 INVESTOR WORKSHOP

Margins improvement

Tuck-in acquisitions

56

CUSTOMER SOLUTIONS

Benefits

DIGITAL AT THE CORE OF EMERGING PROJECTS

Added Value for Customer 4

8

Internal Performance Benefit

3 7 6

Project Kick-off

2

1

5

Internal Testing

Launch of new solution

External Testing

Project Timeline

1

Diya One (Cofely): indoor air purifying robot (QAI)

5

Cl’ease (Ineo): green urban shared mobility

2

Coulis de glaces (Axima): innovative solution for cold storage

6

Nextflex (E&C): load shedding

3

Operateur Connecté (Endel): digital tool for on-site technicians

7

Hikari (Axima): green & smart building (Bepos)

4

Grid Pow’ER (Ineo): renewable storage & smart grids

8

Vertuoz (E&C / Cofely): digital service platform

… and also: Nialm, BIM, Smart Impulse, Effigaz, Black Pellets, DC Virtual One, Continuité 3D, MicroCoge, Please

57

FOCUS ON B2B

B2B IN A NUTSHELL

UNIQUE POSITIONING

GROWTH PLATFORM

Integrated product offering

Presence along the B2B services value chain

Leadership positions in Europe & international footprint

Diversified customer base

Leader in the B2B services space

Successful external growth dynamics Continued growth in financial performance

2016 INVESTOR WORKSHOP

58

PRESENCE ALONG THE B2B SERVICES VALUE CHAIN ENGIE has leveraged upon its historical positioning, to expand along the value chain

FINANCING

AUDIT, DESIGN

EQUIPMENT MANUFACTURER

INSTALLATION

SUPPLY OF TRANSFORMED ENERGY

CONSTRUCTION WORKS

VALUE SHARING WITH CLIENTS

OPERATION MAINTENANCE FM and BPO

DIGITAL PLATFORM

Energy & Service “Integrators”

ENGIE HISTORICAL POSITIONING

ENGIE POSITIONS ON THE VALUE CHAIN

2016 INVESTOR WORKSHOP

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B2B - INTEGRATED PRODUCT OFFERING & DIVERSIFIED CUSTOMER BASE SERVICES ACTIVITIES

2015 revenues (€bn) COUNTRIES

4.4

Energy sales

0.6

6.1

5.9

1.8

14.4

4%

42%

41%

13%

100%

Engineering

Installation (works)

Maintenance & Energy efficiency

Integrated Services (FM&BPO)

Other

1.4 UK

1.8

Belgium

6.8

France 1.0

Community housing

3.1

Private sector

2.7

Public sector

5.0

Industry

2.6

Large Infrastructures

CUSTOMERS

2016 INVESTOR WORKSHOP

Consulting Feasibility studies Engineering project management Client support

HVAC Mechanical & electrical installation Systems integration

Operations maintenance Utilities management Industrial maintenance

Facilities Management (FM) Business Process Outsourcing (BPO)

60

LEADER IN THE B2B SERVICES SPACE Revenues in €bn

14.4

9.2 7.4

7.1 5.2

4.9

4.8

4.6

Energie

5.9

Other business

2016 INVESTOR WORKSHOP

Engineering

Integrated services, maintenance & Energy efficiency

Installation

61

4.2

LEADERSHIP POSITIONS IN EUROPE PROVIDE A SOLID GROWTH PLATFORM

Growth ambitions

EUROPE 159 TWh 88 TWh €13,335m

BU France B2B BU NECST

UK BENELUX(1)

NECST(1)

BU UK

17 TWh 10 TWh

38 TWh

36 TWh

BU BENELUX

€1,408m

36 TWh

21 TWh

Reinforce our local presence or develop new leaderships

€2,830m

€2,340m

Seize new opportunities Keep (eventually reinforce) our positions

France B2B(1) 68 TWh 21 TWh €6,757m

Leadership positions in B2B energy services #1 in France #1 in Belgium #1 in the Netherlands #1 in Italy Gas – Volume sold (TWh) Power – Volume sold (TWh)

2015 figures (1) Including GEM (Global Energy Management) figures 2016 INVESTOR WORKSHOP

Services – Revenue (M€)

62

INTERNATIONAL FOOTPRINT WITH GROWTH AMBITIONS GROUP 162 TWh 199 TWh

EUROPE

€14,407m

159 TWh 88 TWh €13,335m

NORAM 53 TWh €248m

AFRICA

TRACTEBEL ENG. APAC

€605m

€122m

LATAM

2.5 TWh

2015 figures 2016 INVESTOR WORKSHOP

58 TWh

Gas – Volume sold (TWh)

€78m

Power – Volume sold (TWh) Services – Revenues (€m)

Current footprint Main opportunities

63

SUCCESSFUL EXTERNAL GROWTH DYNAMICS MAIN ACQUISITIONS IN B2B SERVICES OVER 2013-2015(1) SERVICES

ENGINEERING 2014 Lahmeyer (International)

Networks & industrial utilities 2015 2014 2013 2013

Energia del Sur (Chili) HGS (Germany) E.On Sverige AB (Poland) SESAS (France)

Services integration & Energy performance 2015 OpTerra (USA) 2015 IMA (Chili) 2015 Seva Energy AG (Germany) 2015 & 2013 TSC Group (Australia/NZ) 2014 Lend Lease (UK) 2014 SMP Pte Ltd (Singapore) 2014 Keppel FMO (Singapore) 2014 Manaï (Qatar) 2014 Ecova (USA) 2013 Trilogy Building Services (Australia) 2013 ATES Systems of Buildings (Netherlands) 2013 EMAC (Brazil) 2013 Balfour Beatty Workplace (UK)

~€1.6bn incremental revenues

INSTALLATION & MAINTENANCE 2015 2015 2015 2015 2014 2014

Promat Sécurité (France) Vandewalle (Belgium) Nexilis (Crudelli) (France/Monaco) Cyberprotect (France) Ercom (France) Commande (Switzerland)

(1) Including OpTerra acquisition (closed early 2016) 2016 INVESTOR WORKSHOP

64

CONTINUED GROWTH IN FINANCIAL PERFORMANCE Growth & profitability of B2B services activity

Typical EBIT margins by activity in €m

Engineering

12-15%

Revenues

EBIT & EBIT/Sales %

13,999 12,861 Installation & Maintenance

3-6%

470 3.7%

2008

Energy Services

2016 INVESTOR WORKSHOP

4-8%

12,835 530

14,219 690

643

4.9% 4.6%

4.1%

2013

EBIT growth 5.6% (CAGR 2008-15)

2014

2015

ROCE 2015 ~15%

65

ENGIE’s Strategy for Cities & Regions Investor workshop June 28th, 2016

Olivier BIANCARELLI

Director Decentralized Solutions for Cities and Territories (B2T)

B2T KEY MESSAGES

In a decentralising world, ENGIE decided to make B2T customers one of its priorities

2016 INVESTOR WORKSHOP

ENGIE has a broad range of capabilities to adress Cities & Regions needs

Leveraging on existing successes, ENGIE is accelerating worldwide

74

FOR ENGIE, B2T INCLUDES…

Cities

Airports

Industrial Areas

Railway Stations

Campuses

Military Bases

But also islands, ports… 2016 INVESTOR WORKSHOP

75

CITIES & REGIONS: AT THE HEART OF THE ENERGY TRANSITION IN A FAST-CHANGING WORLD IEA Scenario “Energy for all” 2030

B2T & B2B Microgrids

36%

B2C Off-grid Solutions

20%

Centralized power generation

44% (80% today)

DECARBONIZATION

DECENTRALIZATION

Cities

2

% of World Area

50

% of World Population

75

% of World Energy Consumption

80

% of World GHG

DIGITALIZATION

Source: IEA, Energy for All, 2011; MIT 2015 2016 INVESTOR WORKSHOP

76

A PRESENCE IN ALL “VERTICALS” RESPONDING ACROSS CUSTOMER NEED Our customers’ needs

Distributed Energy

SMART

To improve

Government

Waste (with partners)

Security and Resilience Water (with partners)

To benefit from Building

Fluid & Green mobility Lighting

To ensure an

Enjoyable environment District Heating & Cooling

To develop the

Local attractiveness To reduce

Security

ICT Infrastructure

Green Mobility

CityOS(1)

Data Analytics

Costs (1) Includes city management tools such as dashboards to enable city stakeholders to make informed decisions 2016 INVESTOR WORKSHOP

77

ENGIE POSITIONING: FROM INFRASTRUCTURE TO DIGITAL SOLUTIONS (WITH RELATED TECHNOLOGIES)

Digital Solutions

NEW

DIGITAL SERVICES

CONNECTIVITY

3D PLANNING/ DASHBOARDS

(ex. App Development)

(ex. Wireless Technologies)

(ex. Simulation Software)

BUILDING MANAGEMENT

GREEN MOBILITY

DISTRIBUTED ENERGY

(ex. Automation, Smart)

(ex. Traffic management)

(ex. Smart & mini-grids)

ENERGY PLANTS & NETWORKS

HEATING & COOLING

PUBLIC LIGHTING

SECURITY/ SAFETY

(ex. New energies)

(ex. Low CO2 energy)

(ex. Automation)

(ex. Integration of Systems)

Services CORE BUSINESSES

Infrastructures

The combination of (A) ENGIE’s traditional businesses in infrastructures and services combined with (B) new solutions and (C) a strong knowledge of local authorities provides a unique competitive position

2016 INVESTOR WORKSHOP

78

ENGIE ALREADY HAS DEEP EXPERIENCE IN WORKING WITH CITIES & REGIONS Europe

North Tyneside, North East Lincolnshire, Chester (UK) • •

•

More than 240 Heating & Cooling Networks • 5000+ EV Charging Stations • Public Lighting: more than 1M lighting points managed

Business Outsourcing Services Performance Contracts

Dijon (France) •

Tramway PPP

Brussels (Belgium)

Avignon (France) •

•

Public Lighting PPP

Antwerpen (Belgium)

France •

Mobil2040: mobility study

•

140+ NGV Stations

Design, Construction of public spaces

Greater Madrid (Spain) • Public Lighting PPP

Québec (Canada) •

Real-time passenger information system for transportation authority

Astana (Kazakhstan) • •

Casablanca (Morocco) • Centralized process for electricity, drinking water, wastewater, public lighting (30 years contracts)

Urban Planning 3D Demonstration

Singapore

Tanger/Kenitra

•

• Train line signalisation

Singapore Micro Grid Pilot

Tucunduba River in Belèm (Brasil) •

Hydrological Risk Management

Rio de Janeiro (Brazil) •

Video Protection system and related communication networks

Namibia •

Hydrological Risk Management

Dubai (UAE) •

2016 INVESTOR WORKSHOP

Energy Management Systems

79

WORLDWIDE, ENGIE BUS ARE ACCELERATING TO ACHIEVE OUR GROWTH TARGET: +40% EBITDA BY 2018 Europe • DISTRIBUTED ENERGY

CITIES OF TOMORROW

•

Newcastle & North Tyneside Data Management

•

London Olympic Park Digital Development

•

Leeds District Energy

•

Leeds Mobility Scheme

GREEN MOBILITY

LARGE SCALE DHP & NETWORKS

Non exhaustive

H2020 Bid with Nantes, Helsinki and Hamburg • Data Platform Opportunity in Spain

UK

•

Pan-European LNG Stations

France • • •

Alata (Corsica) Photovoltaic Farm Distributed Solutions for Islands Toulouse Smart ZAE

• • •

Montpellier Eurêka Smart Area Courbevoie Dashboard Mulhouse 3D Simulator • Competitive Dialogue for the Dijon Smart City Project

North America • •

•

Montreal Eco Area Shortlisted for a big DHC opportunity in the US

•

Investment in Streetlight Data (analysis of flows of people throughout a region)

Gas Mobility Investment in Ile de France

China •

Chengdu Co-Heat & Power

•

Community Solar Project • Micro-grids Projects

Asia-Pacific

Latin America •

Cuenca (Ecuador) Tramway (with consortium)

Africa - Focus on rural projects Brazil •

•

City of Niterói: Traffic Management system Rooftop PV Development & Microgrid pilot

2016 INVESTOR WORKSHOP

•

•

Shortlisted for the Dakar Train Line

Distributed Energy Projects with Orange • Power Corner: Energy Access Project in Tanzania (PV + mini-grid)

• • •

Singapore Energy Community App Makassar “Safe City” MoU IoT Network Operator Due Dil.

•

Due Diligence in DHC Business

•

Singapore Micro Grid Pilot (REIDS)

Turkey & Middle East • •

Jeddah: Development Partnership Qatar: shortlisted for the Internal Security forces camp Tender • Ismit: City of Tomorrow Study

80

ENGIE’s Strategy for Cities & Regions Focus UK Investor workshop June 28th, 2016

WILFRID PETRIE Chief Executive Officer of UK & Ireland

CITIES & COMMUNITIES: ENGIE’S REVENUE IN THE UK ENGIE in the UK has significantly increased its presence in this market TURNOVER

MAJOR CITIES REFERENCIES Energy Smart Government

£195m Facilities Management

£161m

North Tyneside Infrastructure Services Leeds Wakefield NEW

£45m

Cheshire (W & E) NE Lincolnshire

2013

2014

2015

District Energy

Acquisition of Balfour Beatty Workplace

14 cities served

Birmingham

Leicester

Coventry Lambeth

LONDON

Harrow Kingston

Southampton

Olympic Park Whitehall

2016 INVESTOR WORKSHOP

82

SOME EXAMPLES OF WORKING WITH LOCAL AUTHORITIES LONDON LEGACY DEVELOPMENT CORP District Energy signed in 2007 with 40 year concession (value in excess of £1bn t/o) Investment of £100m in heating & cooling supply Total facility management including venue management for Queen Elizabeth Olympic Park Community Interest Company

2016 INVESTOR WORKSHOP

NORTH EAST LINCOLNSHIRE COUNCIL 12 year, £260m Regeneration partnership signed in 2010 Highways and transport, development, building control, regeneration, housing, architectural services, asset management and energy efficiency £170m of 3rd party investment and guaranteed £30m+ savings

NORTH TYNESIDE COUNCIL 10 year, £278m Business Services partnership signed in 2012 Customer Services, Revenues & Benefits, Finance, HR, Payroll IT services & procurement £34m of guaranteed savings and a £90m growth target for the partnership

CHESHIRE WEST & CHESTER COUNCIL 10 year, £200m joint venture signed in 2015 Digital, telephony, face to face customer services, building maintenance, cleaning and business support Channel shift plan to move 50% of current telephone calls to the Council on-line through investment in ICT OJEU includes a wider range of services offer in North West

83

COMPETITIVE ADVANTAGES Providing solutions to the needs of Cities required to integrate energy & services offers • The complexity resulting from this integration requires skills few competitors have

The partnerships we have developed put us in a tier 1 position with a greater customer intimacy than any other single service provider could have

• ENGIE has a breadth few others have

• We have aligned ourselves to our customers needs

Each of the single services require a high degree of expertise…

2016 INVESTOR WORKSHOP

#1 District Energy

TOP

5

Facilities Management

TOP

5

Smart Government

7

TOP

Energy Supply

84

HOW DO WE DRIVE PROFITABILITY FURTHER? LEAN 2018 GREATER EFFICIENCY IN BACK OFFICES

GREATER BUYING POWER

ENGIE’s shared services is partially integrated with the Councils to drive greater economy of scale

Group-wide category management procurement programme

We are using robotic process automation to increase efficiency • 2016 National Customer Satisfaction Award: ENGIE has implemented robotics to serve North Tyneside

2016 INVESTOR WORKSHOP

A digital / web enabled platform supported by Coupa

THE ORGANISATION IS STREAMLINED FOR GREATER EFFICIENCY Our target operating model, resulting from combining our UK businesses has reduced the number of management layers Reduction in operational units results in savings in audit and legal fees, IT platforms and general overhead reductions

85

OUR AMBITION IN THE UK IN THE NEXT 3 YEARS

Revenue

Number of Cities served

Increased capability in

x2

+50%

Green Mobility Compressed Natural Gas and Electrical Vehicles

Further

Integration of Services Energy + Smart Government + Infrastructure + FM 3 new JV / ESCOs with services and energy integrated • ENGIE will supply energy to residents in our Partnership Cities

50% of our contracts have Smart Government services with digital capabilities We will expand into housing refurbishment and property management

2016 INVESTOR WORKSHOP

86

Focus on B2C Investor workshop June 28th, 2016

HERVE-MATTHIEU RICOUR Chief Executive Officer B2C France

AGENDA

STRONG INTERNATIONAL PRESENCE

PRIORITIES

FRANCE: A MAJOR CONTRIBUTOR

■

23 million contracts in gas, power, services

■

■

Promising brand

■

Growth

12 countries

■

Develop & test integrated offers

■

Extensive product portfolio

■

Develop decentralized generation solutions in emerging countries

■

Sales optimization

■

Increasing digitalized customer experience

■

Contribution to the Group transformation effort

■

■

2016 INVESTOR WORKSHOP

Boost the growth of existing portfolios

Enhance operational and commercial performance by reducing costs

88

FOCUS ON B2C

STRONG INTERNATIONAL B2C PRESENCE Million contracts, end 2015 France

BENELUX

Romania

Gas sales

8.4

Gas sales

1.7

Gas sales

Power sales

2.7

Power sales

3.0

Power sales

Services

1.3

Services

1.6 >0.1 0.6

NORAM Power sales

0.1 Turkey Gas sales

0.3

Australia Mexico Gas sales

Rest of Europe 0.4

Gas sales

0.7

Power sales

0.2

Gas sales

0.2

Power sales

0.4

Argentina Gas sales

0.7

~23 MILLION CONTRACTS IN 12 COUNTRIES

2016 INVESTOR WORKSHOP

89

FOCUS ON B2C

FRANCE: A MAJOR CONTRIBUTOR Other ~10%

B2C GLOBAL

Energy

~90%

~€450m(1) ~60%

2015 EBITDA

Benelux

France

~€280m(1)

B2C FRANCE 2015 EBITDA

~30% ~10% Services

COMPETITIVE ADVANTAGES

● Largest unregulated customer base in France  Opportunities for upsell ● Local on-field presence everywhere in France (> 200 sales agencies)  Cross-selling synergies

● Outstanding leader brand recognition  Support to sales and retention ● Leverage on Group stronghold  Foster innovation ● Strong presence and efficiency on all types of sales channels  Growth lever

(1) Average weather conditions in France, proforma Solfea equity consolidated 2016 INVESTOR WORKSHOP

90

FOCUS ON B2C

FOCUS ON FRANCE B2C

ENGIE Promising brand recognitions

GROWTH

PRODUCTS

A portfolio of customers growing both in energy and in services

Extensive product portfolio

SALES

WEB

TRANSFORMATION

Delivering positive scissors effect

Significant results Lots of growth ahead

Contribution to the Group effort

2016 INVESTOR WORKSHOP

91

FOCUS ON FRANCE B2C

ENGIE BRAND: KEY ASSET & ALREADY PROMISING BRAND RECOGNITIONS … with a growing reputation …

ENGIE brand is now everywhere in %

Website (1.5m unique visitors/month) and bills

Brand recognition: survey ENGIE vs private competitors

70

60

47

50

18,000 cars (all businesses)

42

40

40

41

40

3,500 technicians on the field

28

27

30

22

Public marketing material

20

19

15

10 June '15

Marketing from TV to leaflets at home

Aug '15

ENGIE

Oct '15

GDF

Dec '15

Feb '16

Best Private Competitor

… and already a better than ever recognition for our electricity brand

2016 INVESTOR WORKSHOP

April '16

92

FOCUS ON FRANCE B2C

GROWTH: A PORTFOLIO OF CUSTOMERS GROWING BOTH IN ENERGY AND IN SERVICES Increasing new energy contracts

Increasing services cross-selling

Strong momentum in the French market for switching to non regulated tariffs

Accelerate deployment of innovative / value added energy solutions

2016 pivotal year with more unregulated contracts than regulated

Cross selling opportunities

# million energy contracts Electricity

% energy customers with one or several services contracts

Non regulated gas

Regulated gas

10.9

11.0

>11.2

>11.4

1.6 0.6

2.7

>4.0

>5.0

>30% >20%

2.3 >2.5

>3.0

8.8 6.1

2012

2016 INVESTOR WORKSHOP

2015

COE + 4% Present all along the Value Chain:

Development

2016 INVESTOR WORKSHOP

Equity Partnerships

Financing

Construction Management

Operations & Maintenance

Customer Relationships

132

GAS & RES AT THE CORE OF ENGIE AMBITIONS

SOLAIREDIRECT ACQUISITION – ENGIE SOLAR PLATFORM Rapid scaling up of ENGIE Solar via SolaireDirect Infusion of new ideas, skills and ways of working

Develop

Build

Sell/Share

Operate

Focus on solar competitive bids in select countries while exploring B2X aggregation Industrialize design, procurement, construction Drive down procurement costs through economies of scale Capture margins via EPC of solar plants

Attract yield seeking investors to farm down equity

Leverage best practices to operate plants across growing portfolio

ENGIE Solar created to harness complimentary strengths of ENGIE’s Business Units and SolaireDirect

2016 INVESTOR WORKSHOP

133

GAS & RENEWABLES AT THE CORE OF ENGIE AMBITIONS

GRID SCALE STORAGE (BATTERIES, HYDROGEN, COMPRESSED AIR) WILL BE A KEY DIFFERENTIATOR FOR ENGIE AMBITION 1 GW / 2 GWH STORAGE BY 2025

GERMANY Battery pilot for frequency Regulation

BENELUX Energy Storage Park

USA Storage solutions for industrials and Virtual Power Plants (VPP) based on GreenCharge Networks product

ROMANIA Battery storage to provide reserve services to a wind farm

UK Enhanced Frequency Response (EFR) tender for Frequency Regulation Storage solutions for industrials

IRELAND DS3 Program for Frequency Regulation

FRANCE CHILE

Storage + renewables

Large scale battery coupled with a solar PV farm

2016 INVESTOR WORKSHOP

134

AGENDA

IPP LEADER POISED FOR GROWTH IN RENEWABLES MARKET

2016 INVESTOR WORKSHOP

GAS & RENEWABLES AT THE CORE OF ENGIE AMBITIONS

A COMMITMENT TO OPERATIONAL EXCELLENCE

135

COMMITMENT TO OPERATIONAL EXCELLENCE

OPERATIONAL EXCELLENCE & COST OPTIMISATION “BUSINESS AS USUAL” AND SPECIAL INITIATIVES Maintenance & Availability

Tackling the cost issue is a constant priority



Leaner scope Longer time between major overhauls

Operations & Flexibility



Higher dispatch of steam turbine

Energy Efficiency



Fuel savings shared with offtaker

Revenue Optimization



Higher sales of electricity



Performancebased optimization culture based on REX and Best Practices

Potential net savings from one Middle East asset 2016-18: US$ 16+7=23m

2016 INVESTOR WORKSHOP

136

COMMITMENT TO OPERATIONAL EXCELLENCE

DRIVE TOWARDS BIG DATA AND DIGITAL REDUCTION OF UNPLANNED OUTAGES

Incident or Near Miss

Digital capture of operating data across portfolio

Trends Analysis

• More sensors > Increased granularity > Greater control

Improved precision to determine operational changes • Historical data > Known future reduction of performance • Finer detail > New signals > Earlier warnings

Cloud based storage

Corrective Actions management

Incident response

INCIDENT MANAGEMENT CYCLE

Sharing of Learnings

Notification

Investigation & Analysis Reporting

• Mobile apps > Real-time observations anywhere • Improved cooperation > Efficiency of action • Improved allocation and mobilization of spares

IMPACTS Reduction of intrusive maintenance Enhancement of reliability and availability Reduction in insurance premiums and operating costs

2016 INVESTOR WORKSHOP

137

CONCLUSION

RENEWABLES & THERMAL CONTRACTED EBITDA SET TO INCREASE

35%

~65% contracted & renewables

~23%

A major, global, low CO2 player, with competitive advantages across technologies and regions

~44%

Positioned to capture strong growth in renewables worldwide

39%

~77% contracted & renewables

~33%

26% 2015 Renewables

2016 INVESTOR WORKSHOP

2018 Thermal Contracted

KEY GROWTH DRIVERS

Thermal Merchant

Solairedirect integration strengthens ENGIE competitive advantages Launch of ENGIE Solar Commitment to operational excellence and cost control reinforced by digital

138

BU France Renewables Investor workshop June 28th, 2016

Gwenaelle HUET Chief Executive Officer France Renewable Energy

AGENDA

VISION: A KEY PLAYER IN A FAST GROWING MARKET

2016 INVESTOR WORKSHOP

PREPARING FOR THE FUTURE

OUR OBJECTIVES

140

VISION: A KEY PLAYER IN A FAST GROWING MARKET

ENGIE RENEWABLE ENERGIES IN FRANCE Turnover > €900m EBITDA > €365m 2,500 employees

4 MAIN TECHNOLOGIES Entities

Capacity built(1)

3,470 MW

600

770 MW

250 MW

1,520

5,940 MW 570 MW

450 MW

3,820 440 MW 1,000 MW to come

(1) At 100%, end 2015 2016 INVESTOR WORKSHOP

141

VISION: A KEY PLAYER IN A FAST GROWING MARKET

FRENCH MARKET LED BY ACCELERATION IN SOLAR, STABLE GROWTH IN WIND, AND OPPORTUNITIES IN HYDRO PPI(1) Solar PV 2016 vs. 2015

PPI(1) Wind 2016 vs. 2015

(GW)

(GW)

PPI Scenario Solar PV (2015) PPI Scenario Solar PV Low (2016) PPI Scenario Solar PV High (2016)

10

5

6

7

20 14

PPI Scenario Wind (2015) PPI Scenario Wind Low (2016) PPI Scenario Wind High (2016)

18

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

19

22

16

13 8

26

18 9

11

15

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

European Commission has challenged the French State asking them to open the hydro market, giving us new opportunities.

(1) PPI: Programmation Pluriannuelle des Investissements (multi-annual investment plan) 2016 INVESTOR WORKSHOP

142

VISION: A KEY PLAYER IN A FAST GROWING MARKET

ROBUST SUPPORT FOR WIND AND SOLAR FEED-IN TARIFF Market Price

FEED-IN PREMIUM Market Price

Market Price

Fixed tariff

Illustrative scenarios

Onshore Wind (until 12/31/2018)

MERCHANT

Strike price

Illustrative scenarios

Illustrative scenarios

Tenders: Onshore Wind (after 12/31/2018) Tenders: UtilityScale Solar PV(1)

Offshore Wind Tenders: Small Hydro(1)

Large Hydro

(1) Feed-in premium for projects > 500 kW 2016 INVESTOR WORKSHOP

143

VISION: A KEY PLAYER IN A FAST GROWING MARKET

VISIBILITY ON FUTURE DEVELOPMENTS Tenders calendar

2016 Utility-scale solar: 3 GW Offshore wind: 500 MW

2017

Q4: 500 MW

Q2: 500 MW

2018

Q4: 500 MW

Q2: 500 MW

2019

Q4: 500 MW

Q2: 500 MW

Q3-Q4: 500 MW

Small hydro: 60 MW

Q1: ~30 MW

Look-back on last solar tender (end 2015) ENGIE 1st in terms of capacity won market share: 20% ENGIE shows its capacity to innovate: R&D storage systems

2016 INVESTOR WORKSHOP

Q3: ~30 MW

What is expected for next solar tenders Category dedicated to carports (65 MW per tender) Category dedicated to innovative projects (75 MW in 2017 and 75 MW in 2018) Specific market features will need capacity to be agile and flexible 144

VISION: A KEY PLAYER IN A FAST GROWING MARKET

DBSO BUSINESS MODEL TO CREATE VALUE

STRATEGY: BE AN INDUSTRIAL, VISIBLE & INNOVATIVE LEADER ON RENEWABLES IN FRANCE Business development focus on wind and solar Leverage ENGIE’s strong balance sheet and project financing to drive down cost of capital

Develop

 ACCELERATE DEVELOPMENT OF PROJECTS

Use ENGIE’s global and European presence to drive economies of scale in procurement

Build

 MAKE OUR PROJECTS MORE PROFITABLE

Use our long term partnership with Predica and attract yield seeking investors to farm down equity

Sell/Share

Operate

 DEVELOP MORE WITH LESS CAPEX

Improve operations through synergies, innovation, digital, and maintenance optimization (i.e. using Maia expertise) + 1% availability in 5 years 15 % O&M cost reduction in 5 years  OPERATE MORE EFFICIENTLY

2016 INVESTOR WORKSHOP

145

PREPARING THE FUTURE

NEW TECHNOLOGIES OPENING NEW TERRITORIES WIND

SOLAR Solar PV carports at Montpellier airport & Rivesaltes

1990

2000

wind potential technical feasibility Photo credit : Hélimage

2016

2020

No potential to install windfarms

2016 INVESTOR WORKSHOP

Potential areas to install windfarms

146

PREPARING THE FUTURE

PAVE THE WAY THROUGH PLATFORMS

HYDROGEN CONVERSION

Heat & power production

2016 INVESTOR WORKSHOP

Green gas

Control Centre

DIGITAL Platform DARWIN

Green mobility

Assets optimization

Data analysis

Reporting

147

OUR OBJECTIVES

REINFORCE OUR LEADERSHIP AND GROW FASTER THAN THE MARKET Capacities built, at 100%

2015

2018

2021

1,520

3,820

5,940 MW

2,225

3,820

7,280 MW(1)

2,990

9,000 MW(1)

3,820

600 1,235

FRO M ~6 G W i n 2 0 1 5 t o ~9 G W i n 2 0 2 1

|

2,190

Le s s m e r c hant

|

M ore r e gul ate d

Strong acceleration in solar

Stable and ambitious growth in wind

Opportunities in hydro

+ 1.6 GW in 2021(2) (vs. 2015)

+ 1.5 GW in 2021(2) (vs. 2015)

ENGIE’s ambition is to reinforce its leader position among alternative producers

(1) Assuming constant scope for hydro concessions; (2) Capacities to be built and operated, at 100% 2016 INVESTOR WORKSHOP

148

ENGIE Tech Investor workshop June 28th, 2016 Yves LE GELARD Executive Vice President, Chief Digital Officer Thierry LEPERCQ Executive Vice President in charge of Research & Technologies and Innovation

AGENDA

WHY TECHNOLOGY,

NOW?

ENGIE TECH AN ENTREPRENEURIAL VENTURE WITH MASSIVE AMBITIONS

THE ENGIE TECH STORY Energy & Digital are intertwined Solar

Energy

Mobile apps

Digital

IoT(2)

Batteries API(1)

H2 Gas and LNG

Analytics

Cybersecurity

Energy & Digital are key for competitiveness

Need of mass scale business models: Unicorns

TECHNOLOGY LEADERSHIP IS A MUST HAVE (1) Application Programing Interface

2016 INVESTOR WORKSHOP

(2) Internet of Things

151

AGENDA

WHY TECHNOLOGY,

NOW?

2016 INVESTOR WORKSHOP

ENGIE TECH AN ENTREPRENEURIAL VENTURE WITH MASSIVE AMBITIONS

152

DISRUPTIVE TECHNOLOGIES GW development 1 400 1 200 1 000 800 600 400 200 0

31 $/MWh

ENERGY TRANSITION

Solar

35 $/MWh

Wind

30 $/MWh

30 $/MWh

Wind / Solar

2015

2030

2015

Source: Energy Research Institute National Development and Reform Commission (China)

2008

DIGITAL ERA

2011

2014

MOBILITY Ability to provide mobile services to consumers and employees

BIG DATA Ability to handle large volumes of data

INTERNET OF THINGS Ability to interconnect people and objects

2016 INVESTOR WORKSHOP

153

2030

NEW ENERGY TECHNOLOGIES FUNDAMENTALLY CHANGE ENERGY SYSTEMS

ELECTRICAL MOBILITY

HOME ENERGY MANAGEMENT SERVICES

2016 INVESTOR WORKSHOP

DECENTRALIZED POWER GENERATION DIGITAL PLATFORMS

STORAGE INFRASTRUCTURE

154

DIGITAL BRINGS 4 MASSIVE VALUE CREATION LEVERS TO ENGIE TECHNOLOGY

VALUE CREATION LEVERS

EXAMPLES OF OPPORTUNITIES

OPTIMIZE productivity of operations

Predictive maintenance

Mobility DEVELOP new products and services

Smart cities

Big Data DELIVER a superior customer experience

Seamless customer journey

STREAMLINE collaboration & decision making

Collaboration services

Internet of Things

2016 INVESTOR WORKSHOP

155

NEW ENTRANTS ARE MOVING INTO ENERGY WHILE GIANTS ARE REINVENTING THEMSELVES THROUGH TECHNOLOGIES

Google

Tesla

Total

2016 INVESTOR WORKSHOP

Redefining energy services through digital appliances and platforms

Changing the mobility and home energy paradigms through electric mobility and storage

Engineering a massive shift from oil to solar power and battery storage

156

OPPORTUNITY TO REINVENT A GLOBAL LEADERSHIP THROUGH TECHNOLOGY In the past, access to technology was not the major driver of differentiation

REPOSITIONING FROM… TECHNOLOGY INTEGRATOR “assembling accessible technologies off-the-shelf”

Today, access to a new technology and/or business model is the differentiating factor

…TO TECHNOLOGY SOLUTIONS FRONTRUNNER “developing tailor-made technologies Tech to provide customer solutions”

STRONG TECHNOLOGY EXPERTISE through its ENGIE LABS NETWORK and PARTNERS A HIGH PERFORMANCE INNOVATION process featuring call for projects, incubation and venture capital A MASSIVE DIGITAL FACTORY implemented with global partners

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AGENDA

WHY TECHNOLOGY,

NOW?

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ENGIE TECH AN ENTREPRENEURIAL VENTURE WITH MASSIVE AMBITIONS

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ENGIE TECH: HOW TO LEAD THROUGH TECHNOLOGY MÉTIERS STRATEGY

RESEARCH & INNOVATION

DIGITAL FACTORY

Analytics

Unicorn Factory Mobile Apps

IoT

Key Programs

Innovation & New Ventures

Research and Technology

API Management Cyber Security

Open innovation ecosystems

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INNOVATION: VALUE-GENERATING STARTUPS & INCUBATORS Our €115 million ENGIE New Ventures fund is dedicated to investing in businesses, developing innovative solutions that will transform our activities in the domain of the energy transition

We work with external incubators who provide the premises, an ecosystem and coaching for both startups and our own project owners

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RESEARCH & TECHNOLOGIES We connect ourselves worldwide to local ecosystems through a network of ENGIE Labs: Geographical labs fully devoted to R&D and services in energy technologies

THEMATIC LABS SMART HOME LAB Connected devices, new electrical and thermal appliances, DSM at home, …

PILOT PROJECTS Biomass gasification

Decentralized Energy System for Islands Low temperature, Heat recovery

BATTERIES LAB Anticipate market developments in energy storage

City dashboard and 3D modelling Small LNG, LNG Lift

Internet of things, Low energy sensors HYDROGEN LAB A new lab in development

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KEY PROGRAMS BUILDING ON DIGITAL SOLUTIONS Focus areas to boost development of offers for our customers across Business to Territories, Business to Business and Business to Customers

Organization in worldwide transversal Programs with mixed teams of Business Developers, Innovation, Research & Technologies, Digital, Engineering

Key Programs

Geothermal

Biogas

Small scale LNG

Decentralized Energy

Generation @ Home

Smart Cities

Green mobility

Comfort @ Home

Solar

Building renovation

Demand side Management

Grid scale Storage

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ENGIE DIGITAL FACTORY STARTING NOW July 2016

October 2016

Big Data analytics platform

IoT platform

Data scientists

IoT Experts

Mobile Apps Factory

API Management systems

App designers

Enterprise architects

Cyber Security Center Security Specialists

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WORLDWIDE PARTNERSHIPS TO SUPPORT DIGITAL TRANSFORMATION

New Big Data analytics

Mobile applications

Signed early May Digitized customer journey

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NUMEROUS DIGITAL PROJECTS ALREADY LAUNCHED 160+ projects identified

>€500m CAPEX

25 projects >€5m

Projects per category 70+ 13%

30+ 18% 60+ 40% 30+ 19%

Number of projects

90+ 17%

40+ 23%

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Capex

320+ 58%

75+ 12%

Customer experience

Industrial assets performance

Performance of functional function

Collaborator efficiency

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… SOWING THE SEEDS FOR POTENTIAL UNICORNS

ECOVA 2.0 Digital Energy Platform

HOMNI Home Energy Management Systems

POWERCORNER MiniGrid Power Systems

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DISCLAIMER

Forward-Looking statements This communication contains forward-looking information and statements. These statements include financial projections, synergies, cost-savings and estimates, statements regarding plans, objectives, savings, expectations and benefits from the transactions and expectations with respect to future operations, products and services, and statements regarding future performance. Although the management of ENGIE believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of ENGIE securities are cautioned that forward-looking information and statements are not guarantees of future performances and are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of ENGIE , that could cause actual results, developments, synergies, savings and benefits to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the public filings made by ENGIE with the Autorité des Marchés Financiers (AMF), including those listed under “Facteurs de Risque” (Risk factors) section in the Document de Référence filed by ENGIE (ex GDF SUEZ) with the AMF on 23 March 2016 (under no: D.16-0195). Investors and holders of ENGIE securities should consider that the occurrence of some or all of these risks may have a material adverse effect on ENGIE.

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FOR MORE INFORMATION ABOUT ENGIE

Ticker: ENGI

+33 1 44 22 66 29

[email protected]

http://www.engie.com/en/investors-area/ Download the new ENGIE Investor relations app!

INFORMATION ABOUT THE WORKSHOP AVAILABLE ON http://www.engie.com/en/investors/thematic-presentations/

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