ENGIE

Earnings Release • Jul 18, 2019

RESTATED H1 2018 FIGURES FOR IFRS 16 TREATMENT

In January 2016, the IASB has issued a new standard on leases. Under the new standard, all lease commitments will be recognized on the face of the statement of financial position, without distinguishing between operating leases and finance leases.

The main impact on the consolidated statement of financial position is an increase in the "right-ofuse assets" on the assets side and an increase of the lease liabilities on the liabilities side, regarding leases where the Group acts as lessee and which are qualified as operating leases. They concern mainly real estate and vehicles. The IFRS 16 treatment will also lead to a higher net financial debt without any impact on the net economic debt, as these liabilities were already taken into account in the net economic debt.

In the consolidated income statement, reversal of the rental expenses of these operating leases will lead to an increase in EBITDA, which is largely offset by an increase in depreciation and hence there is an almost neutral impact on current operating income. There is also a slight increase in financial expenses, with a global neutral impact at net recurring income, Group share level.

In €m	H1 2018 Published	IFRS 16	H1 2018 Restated 30,182 5,288
REVENUES	30,182	-
EBITDA	5,065	223
(1) CURRENT OPERATING INCOME	3,061	10	3,072
(2) CASH FLOW FROM OPERATIONS	3,263	219	3,482
GROSS CAPEX	3,585	-	3,585
NET FINANCIAL DEBT (3)	20,429	2,351	22,781

(3) Excl. interco net debt from discontinued operations

In €m	H1 2018 Published	IFRS 16	H1 2018 Restated
REVENUES	30,182	0	30,182
Share in net income of entities accounted for using the equity method	209	0	209
CURRENT OPERATING INCOME after share in net income of entities accounted for using the equity method	3,061	10	3,072
MtM, impairment, restructuring, disposals and others	-397	0	-397
INCOME FROM OPERATING ACTIVITIES	2,665	10	2,675
Financial result	-665	-16	-680
Income tax	-657	2	-655
Non-controlling interests attributable to continued operations	263	0	262
Net income from discontinued operations, Group share	-142	-6	-148
NET INCOME GROUP SHARE	938	-9	929
EBITDA	5,065	223	5,288
NET RECURRING INCOME GROUP SHARE	1,468	-9	1,459
of which net recurring income from discontinued operations	-27	-6	-32
of which net recurring income from continued operations	1,494	-3	1,491
CASH FLOW FROM OPERATIONS (1)	3,263	219	3,482
GROSS CAPEX	3,585	0	3,585
NET DEBT	20,429	2,351	22,781

ENGIE 2019 4 (1) Cash Flow From Operations (CFFO) = Free Cash Flow BEFORE Maintenance Capex

In €m	H1 2018 Published	IFRS 16	H1 2018 Restated
REVENUES	30,182	0	30,182
Purchases	-15,632	0	-15,632
Personnel costs	-5,320	0	-5,320
Amortization, depreciation and provisions	-1,841	-213	-2,054
Other operating incomes and expenses	-4,536	223	-4,312
Share in net income of entities accounted for using the equity method	209	0	209
CURRENT OPERATING INCOME after share in net income of entities accounted for using the equity method	3,061	10	3,072
MtoM, impairment, restructuring, disposals and others	-397	0	-397
INCOME FROM OPERATING ACTIVITIES	2,665	10	2,675
Financial result	-665	-16	-680
of which recurring cost of net debt	-293	6	-287
of which cost of lease liabilities	0	-22	-22
of which non recurring items included in financial income / loss	-87	0	-87
of which others	-285	0	-285
Income tax	-657	2	-655
Non-controlling interests attributable to continued operations	263	0	262
Net income from discontinued operations, Group share	-142	-6	-148
NET INCOME GROUP SHARE	938	-9	929
EBITDA	5,065	223	5,288

In €m	H1 2018 Published	IFRS 16	H1 2018 Restated
EBITDA	5,065	223	5,288
of which recurring contribution of share in net income of entities accounted for using the equity method	236	0	236
Depreciation, Amortization and others	-2,003	-213	-2,216
CURRENT OPERATING INCOME after share in net income of entities accounted for using the equity method	3,061	10	3,072
Financial result	-578	-16	-594
of which recurring cost of net debt	-293	6	-287
of which cost of lease liabilities	0	-22	-22
of which others	-285	0	-285
Income tax	-575	2	-573
Adjustment for non-recurring share in net income of entities accounted for using the equity method	27	0	27
Non-controlling interests attributable to continued operations	-441	1	-440
Net recurring income from continued operations, Group share	1,494	-3	1,491
Net income from discontinued operations, Group share	-27	-6	-32
NET RECURRING INCOME GROUP SHARE	1,468	-9	1,459

In €m	H1 2018 Published	IFRS 16	H1 2018 Restated
Gross cash flow before financial loss and income tax	4,760	223	4,984
Income tax paid (excl. income tax paid on disposals)	-291	0	-291
Change in operating working capital	-968	4	-964
Cash flow from operating activities from continued operations	3,501	228	3,728
Cash flow from operating activities from discontinued operations	82	77	160
CASH FLOW FROM OPERATING ACTIVITIES	3,583	305	3,888
Net tangible and intangible investments	-2,603	0	-2,603
Financial investments	-844	0	-844
Disposals and other investment flows	885	0	885
Cash flow from investment activities from continued operations	-2,562	0	-2,562
Cash flow from investment activities from discontinued operations	-155	0	-155
CASH FLOW FROM INVESTMENT ACTIVITIES	-2,717	0	-2,717
Dividends paid	-1,428	0	-1,428
Share buy back	-1	0	-1
Balance of reimbursement of debt/new debt	-123	-219	-342
Net interests paid on financial activities	-307	-9	-315
Capital increase/hybrid issues	1,004	0	1,004
Other cash flows	-314	0	-314
Cash flow from financial activities from continued operations	-1,168	-228	-1,396
Cash flow from financial activities from discontinued operations	1,020	-77	942
CASH FLOW FROM FINANCIAL ACTIVITIES	-148	-305	-453
Impact of currency and other from continued operations	-110	0	-110
Impact of currency and other from discontinued operations	-1	0	-1
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	8,929	0	8,929
Reclassification of cash and cash equivalents relating to discontinued activities	- 1	0	- 1
TOTAL CASH FLOWS FOR THE PERIOD	-607	0	607
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	9,535	0	9,535

7

In €m	H1 2018 Published	H1 2018 Restated
FRANCE excluding Networks	553	553
France Networks	1,239	1,241
REST OF EUROPE	254	257
LATIN AMERICA	721	723
USA & CANADA	71	72
MIDDLE EAST, ASIA & AFRICA	460	461
OTHERS	-237	-235
TOTAL	3,061	3,072

In €m - restated	France excl. networks	France Networks	Rest of Europe	Latin America	USA & Canada	Middle East, Asia & Africa	Others	H1 2018 Restated
EBITDA	909	1,993	769	930	115	539	33	5,288
Depreciation	-352	-751	-514	-205	-44	-98	-171	-2,135
Share based payments	-4	0	-4	-1	-1	-2	-44	-55
Non recurring contribution of shares in net income of entities accounted for using the equity method	0	0	5	-1	2	21	-53	-27
COI after share in net income of entities accounted for using the equity method	553	1,241	257	723	72	461	-235	3,072

In €bn – restated figures

In €m - restated	Maintenance	Development	Financial	H1 2018 Restated
FRANCE excluding Networks	107	245	70	423
France Networks	391	343	-3	732
REST OF EUROPE	374	84	250	708
LATIN AMERICA	51	609	24	684
USA & CANADA	13	153	311	478
MIDDLE EAST, ASIA & AFRICA	45	94	192	330
OTHERS	75	18	138	231
TOTAL	1,057	1,546	982	3,585

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 20 march 2019 (under no: D.19-0177). 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 FY 2018 RESULTS: http://www.engie.com/en/investors/results/results-2018/