ENGIE Africa A Long-term Energy Partner for Africa’s growing Energy Needs

engie-africa.com ENGIE Africa: Key facts and figures

Over ● Development and operation of thermal power and assets in several countries 50 years ● Strong positions in Energy Efficiency Services and of experience Facility Management ● Over 50 years of experience in the Engineering and ~ 320 consulting business, employees ● Important gas expertise in Exploration & Production and LNG supply

€306m turnover in 2015

2 2 ENGIE’s presence in Africa

POWER ASSETS In Morocco: • Tarfaya – – 301 MW • Safi – Coal Power Plant – 1,386 MW In : • West Coast 1 – Wind Farm – 94 MW • Dedisa – Fuel Power Plant – 342 MW • Avon – Fuel Power Plant – 670 MW • Kathu – Concentrated Solar Power Project – 100 MW • Aurora and Vredendal (Solaire Direct) – 21 MW

GAS ACTIVITIES • Algeria and Egypt • Nigeria Local Services entities and export services in all regions • ENGIE Cofely • ENGIE Ineo • ENGIE Axima • ENGIE Endel • ENGIE Fabricom

ENGINEERING ACTIVITIES ACROSS THE CONTINENT •

3 ENGIE – our businesses

● Centralized and decentralized Power Generation ● Energy Services and Efficiency ● Gas Expertise ● Engineering

4 . Power generation: contributing much needed capacity

● Centralized power with a balanced mix : depending on the availability of renewable and gas resources ● Capacity in operation: 758 MW ● Capacity under construction: 2,056 MW ● Wind energy: 395 MW ● A first-mover in independent power generation in South Africa ● Construction and operation of Africa’s largest wind farm to date in Morocco ● Construction of one of the world’s largest CSP plants in South Africa ● Main positions: ‒ South Africa and Morocco ‒ With development offices in Kenya and Ivory Coast

5 Power generation: Morocco and Egypt

Morocco Egypt ● National Energy Policy favors development ● Development of several wind, PV and CSP of renewable energy. Aim to have 42% of opportunities: Gulf of (250 MW wind), renewable energy by 2020 and 52% by 2030 Ras Ghareb (2*50 MW wind), Benban (2*50 MW photovoltaic), West of Nile ● ENGIE develops power generation from both (wind, PV and CSP) thermal and renewable energy in the country: ‒ Tarfaya wind farm and Safi thermal power plant ‒ Through LCV Morocco: development of 2 wind farms totaling 60.6 MW

Tarfaya Morocco Safi Morocco • 301 MW wind farm • 2 x 693 MW thermal power units • ENGIE: 50 % • ENGIE: 35% • Launched: Jan 2015 • Ultra-supercrtical clean coal • Utilization rate of 45% technology • 20 year BOOT contract • 30 year PPA • 40% of Morocco’s total wind capacity • Commissioning : 2017

6 Power generation: South Africa (1) – wind and thermal

● Largest market in Africa with an installed capacity of more than 45 GW ● High level of renewable energy potential with a target of 10,000 GWh of renewables ● ENGIE develops power generation from both thermal and renewable energy in the country : ‒ Aurora farm ‒ Kathu Concentrated Solar Power plant ‒ Aurora and Vredendal photovoltaic plants through Solairedirect ‒ Dedisa and Avon Peaking Power plants ● End 2015, ENGIE submitted bids for several solar and wind energy projects

Aurora Wind Power Dedisa and Avon • 94 MW wind farm • 335 MW and 670 MW open- • ENGIE: 43 % cycle gas turbine plants • Commissioned: June 2015 • ENGIE : 38% • Part of the Government’s • 15 year PPA with ESKOM renewable energy IPP • Avon: commissioned program October 2015 • Dedisa: commercial operation second half of 2016

7 Power generation: South Africa (2) – Solar: PV and CSP

Kathu • 100 MW Concentrated Solar Power plant • ENGIE : 48.5% • Notice to Proceed : end May 2016 • Parabolic trough technology • Molten salt storage system providing 4.5 hours of battery life

Aurora - Vredendal • 2 x 10.5 MW photovoltaic wind farms • ENGIE through Solairedirect • Vredendal: COD July 2014 • Aurora: COD December 2014

8 Power generation: Senegal – Solar PV

Senergy • 30 MW photovoltaic power plant in the of Santhiou Mekhé. • Solairedirect standalone EPC and O&M contractor • Transmission system including the double 30 kV line from the PV site to Mekhé Substation and its extension will be built and transferred to SENELEC. • 100% of the electricity output will be sold to SENELEC under a 25-year PPA.

9 . Power generation: Decentralized power production

Where economically relevant, proposition of decentralized power generation: ● Off-grid and mini-grid solutions ● For local communities, remote populations and industries (mining, forestry,…) not connected to central grid ● Choice of fuel (renewables, gas,…) and technology depend on Clients’ needs, available resources and costs Power Corner ● Mission : Provide clean and affordable electricity to rural populations in developing countries through smart mini-grids ● Commissioning of the first 16 kW micro-grid unit, consisting of solar panels batteries and diesel generator in Tanzania, March 2016 Partnership agreement with Orange ● Rural electrification and energy optimization of Orange telecom infrastructure ● Offer of domestic power solutions for rural populations ● Commercialization of the service by Orange ● Billing system via mobile through Orange Orange Money Solution

10 . Energy Services and Efficiency

● Offering appropriate solutions for distributed generation, for energy ENGIE is efficiency, for challenges of smart , for carbon-free or digital expanding its solutions or for customer expectations range of products ● Operating in 3 key markets of energy transition: and services in ‒ Buildings and industry energy efficiency ‒ Cities and territories ‒ Major infrastructures and services, making its moves ● Over 300 employees into « smart » ● Approximately 80 clients networks ● Present in more than 17 countries ● ENGIE Energy Services activities in Africa are managed via a number of companies: ENGIE Cofely, ENGIE Ineo, Cofely Fabricom, ENGIE Axima, ENGIE Endel ● Particularly strong presence in Algeria and Morocco

11 Energy Services and Efficiency – Morocco

Cofely Morocco: ● Since 2002 multi-technical maintenance, energy efficiency and facility management solutions ● Clients: major multi-national and local companies: , , Lafarge, Assurances, RMA Watanya,… ● Supervision and maintenance of equipment for the Tangier Med Port

Cofely Tangier: ● Management of facility management contracts and multi-technical services for Renault ● Business prospecting esp. in Northern Morocco

Cofely Contracting: ● Multi-technical works for local and multi-national companies ● Created in 2012 – clients such as Caixa, Olivim, Renault,..

ENGIE Ineo ● Communications infrastructure, operations support system and passenger information of the Casablanca tramway ● Rail signalling, telecommunications of the future high-speed line Tangier – Rabat ● Tendering for the energy management, signalization solutions and telecom systems for the Rabat and Casablanca tramways extension projects

ENGIE Axima ● Several projects and references: Dolidol, Roche, Mohammed V hospital

12 . Energy Services and Efficiency – Algeria

Cofely Algeria: ● Development of energy services, facility management and multi-technical activities for teriiary and industrial clients ● Several multi-technical maintenance contracts for malls and industrial buildings ● Created in 2015

Cofely Fabricom: ● Since 20 years in the Oil & Gas sector with Sonatrach, Sonelgaz and subsidiaries ● EPC projects – automation and networks, SCADA and remote field assistance ● Screening the sector of 200 and 400 kV electrical substations and the development of mid-sized gas power stations

ENGIE Ineo: ● Present since 2000 ● Executed telecom and security systems contracts for various clients : Conoco , Sonatrach-Agip, Total-Sonatrach ● A future local subsidiary for development of activities in urban transportation management systems for trams and buses

ENGIE Axima ● Several projects and references : Lafarge, Bel Factory, Simap, Sanofi,… ● Prospection of different business development opportunities in HVAC, fluids, refrigeration and firefighting sectors

13 . Energy Services and Efficiency – other countries

ENGIE Ineo: ENGIE is ● Several projects and contracts in Burkina Faso, Burundi, Cameroon, active in a Comoros, Congo, Guinea, Madagascar, Gabon, Mali, Mauritania, Nigeria, variety of other Senegal, Togo-Benin,… countries ● Global projects for industrial and tertiary sector electrical installations, throughout the energy networks, public lighting, transportation and telecommunications infrastructures, overall security, energy production, information systems and continent outsourcing

ENGIE is present in Tunisia via its participation in SOMEM ● Development of multi-technical maintenance and energy efficiency services ● Clients : powre systems, Citroen, Scogat, Sergaz, Banque Africaine de Developpement, Banque Centrale de Tunisie, Groupe El Kateb hotels, …

ENDEL ENGIE South Africa ● Awarded for the construction of Eskom Kusile ● 6 power generation units of each 800 MW ● Contract with Alstom for the Equipment and Piping installation of unit 3

14 . Gas expertise

● 1st LNG chain between Algeria and In Africa, ● Top 5 LNG supply portfolio in the world ENGIE’s main gas positions are in Algeria ENGIE Africa: Looking at opportunities for developing gas infrastructure: and Egypt via ● Particularly for import and transport and combined electricity/gas solutions its LNG and (« Power to Gas ») E&P activities ● In countries with national resources ● And/or associated with import terminal and infrastructure developments (North and South Africa)

15 . Gas expertise – LNG

Algeria: ● 50 years cooperation with Sonatrach ● ENGIE : largest buyer of LNG and 3rd largest client of Sonatrach ● Long-term LNG contracts with Sonatrach (8.5 bcm/year) ● Long-term contract for delivery of pipegas via Medgas (1 bcm/year)

Egypt: ● 20 year LNG purchase contract from the Idku liquefaction plant ● 5% stake in train 1 of Idku ● April 2016 : cooperation agreement with EGAS for Egypt’s medium term gas import needs

Nigeria: ● 20-year supply agreement with NLNG (started in 1992) ● Delivered to France’s Montoir-de-Bretagne terminal

16 Gas expertise – Exploration & Production

Algeria: Touat project: ‒ Launched in 2011 ‒ Drilling of 41 production wells ‒ Proven and probable reserves are 68.5 billion m³ of and 8.5 million barrels of condensates ‒ Production should start in 2017 Sud-Est Illizi project: ‒ Launched in 2010 - 3rd and last exploration phase May 2015 ‒ Operated by Exploracion Argelia SA ‒ ENGIE E&P: 20% ‒ Drilling of 9 wells so far Egypt: ● ENGIE is active in 4 concessions: 2 exploration concessions as operator and 2 production concessions ‒ West El Burullus wholly owned by ENGIE E&P, operator ‒ Wadi Dib & East Wadi Dib wholly owned by ENGIE E&P, operator ‒ Alam El Shawish West, ENGIE E&P 25%, non-operator ‒ Ashrafi, ENGIE E&P 50%, nont-operator

17 Engineering

● Engineering services mainly for hydropower, power and gas, renewable Delivering energy, transport and Transmission & Distribution Engineering ● Provides the full scope of consulting services from site reconnaissance to Services in start-up and initial operation of rehabilitation of a project, including Africa since the environmental protection beginning of the ● Tractebel Delivered its expertise to the majority of African countries, among them: Algeria, Angola, Benin, Botswana, Burkina Faso, Dem. Rep. of 50’s through Congo, Djibouti, Egypt, Ethiopia, Guinea, Kenya, Liberia, Libya, Tractebel Madagascar, Mali, Morocco, Namibia, Niger, Senegal, Sierra Leone, South Africa, Tanzania, Tunisia, Uganda,…

18 Our Commitment

● With a balanced strategy: ENGIE: ‒ creating value for our stakeholders We want to be a ‒ while respecting the lives of the people working or living around responsible, our operations efficient and ‒ and preserving the environment ‒ and a Strong Stakeholder Dialogue Process successful actor ● In Africa – we go into partnerships with social enterprises and recognized as innovative entrepreneurs such by its ‒ Rassembleurs D’Energies stakeholders ‒ ENGIE Foundation ‒ Initiatives ‒ Enactus ‒ International Social Observatory ‒ Valued Citizens ‒ Ikamva Youth ‒ Energy Assistance

19 Our partners: Rassembleurs d’Energies - AN « IMPACT INVESTMENT » APPROACH

ENGIE Rassembleurs d’Energies is the €50M Corporate Impact Investment fund of ENGIE which invests in social enterprises that market affordable energetic solutions for poor off-grid populations who lack access to reliable and clean energy sources. These solutions must be economically sustainable and have a strong social and environmental impact. ENGIE Rassembleurs d’Energies has developed a multi criteria tool to assess investments opportunities :

Environmental Social performance performance

1 2 3 4

Relevance of the Financial solution value

Synergies with the Group

20 Our partners: Rassembleurs d’Energies’s investments in Africa

ENGIE Rassembleurs d’Energies invests in companies which 7 develop B to C Business models in 2 4 6 8 Solar Home Systems decentralized 1 3 1 Fenix international Uganda renewable energy 2 PEG Ghana Ghana 5 3 BBOXX Rwanda, Kenya  Solar Home Systems Micro-mini grids  Micro/mini-grids 4 Ausar Energy Western Africa  Biogaz Biogaz  Biomass and improved 5 Simgas Tanzania cooking utensils Under contract  Water electricity 6 Biomass Uganda distribution 7 Distribution water Mauritania - electricity 8 Solar systems Kenya

21 Our partners: Energy Assistance asbl/vzw

● Providing skills and expertise to humanitarian projects with no - or limited - access to energy ● Energy Small scale projects ● Focus on: Health, education, economic development ● Characteristics of the projects: ‒ Small-scale energy projects ‒ Local demand ‒ Durability ‒ Sustainable development ‒ Security ● Workforce: Unpaid volunteers & small teams ● A non-profit association created in 2001 by employees from ENGIE (retired and current)

22 Our partners: Energy Assistance asbl/vzw - Projects in Africa

Done in Probably Country 15 years in 2016 In portfolio Benin 2 Burkina Faso 18 3 Burundi 7 Cameroon 1 DR Congo 56 7 10 Ethiopia 1 1 Guinea 1 Kenya 1 Madagascar 1 Mali 15 Mauritania 3 Mozambique 2 Rwanda 4 Senegal 3 3 Sierra Leone 1 South Africa 1 1 Tanzania 3 1 Togo 10 2 Zambia 3

Africa 130 11 20

All regions 190 11 27

23 Our partners: ENGIE Foundation / Valued Citizens

● NGO which organizes educational support and social programmes in public schools ● Encouragement of personal development and civic engagement ● ENGIE Foundation is a partner since 2002 ● http://www.valuedcitizens.co.za/

● ENGIE Foundation has been funding the Inspire programme since 2009 ● Instrumental to help girls develop leadership skills while fighting gender inequality and poverty in their communities ● With ENGIE support, more than 600 girls have been helped directly since ENGIE 2009

24 Our partners: ENGIE Foundation / Valued Citizens

● Aurora Wind Power and Avon & Dedisa Peaking Power have signed agreements with Valued Citizens ● Implementation of life skills development program in public schools for surrounding communities

● ENGIE launches the new Schools, Lights & Rights programme in 2015 ● Valued Citizens Initiative is one of the associations benefiting from the project ● A grant has been donated to promote the civil registration of unregistered children ● 1700 portable solar lamps will be provided to replace highly-polluting oil lamps

25 Our partners: South Africa - Ikamva Youth

● Ikamva Lisezandleni Zethu is an NGO that supports and assists young people in their development ● ENGIE & Ikamva developed FunMaths programme for pupils from disadvantaged environments with subjects like maths and English ● www.ikamvayouth.org

● ENGIE established an independent fund to benefit local black organisations and communities ● The Peaker Trust has a 10% stake in the project companies ● The Trust’s dividends will go to local socio-economic development initiatives for at least 15 years (duration of the Power Purchase Agreements)

26 Our partners: Morocco - Initiatives / Enactus / OSI

● Created in 2000 by several partners around the ENGIE Group ● Part of the UN Global Compact ● Laboratory of initiatives and social innovation ● Conducted research on topics such as literacy, education, youth unemployment,… ● ENGIE (Cofely Morocco) is an active member of the association Initiatives ● Supports young high school students from disadvantaged backgrounds ● ENGIE funds renovations, organizes company visits and offers training ● In Morocco, ENGIE signed a partnership with Enactus Morocco ● International non-profit organization urging students to improve the word through entrepreneurial action ● ENGIE supports the development of Cleantech and Environment projects and mobilizes teams to provide monitoring

27 Our way forward

Creating value ...... Meeting the needs of Africa

 Develop sustainable and profitable  Become a business partner of business models, social and economic development,  knowing and controlling operational and financial risks  Contribute providing access to reliable and affordable energy,  with respect for our environmental, and key competences ethical and human rights standards  while offering sustainable solutions and creating local jobs

28 Appendix BU Africa Strategy Africa is made of 54 countries and they are substantially different from one another

187 1993

349 1410

330 694

127 246

191 1 136

Sources : IRENA (updated with Statistics refer to UN 2015 (Population), 2014 World Bank (GDP, Electrification Rate)

30 Africa is made of 54 countries and they are substantially different from one another but some general trends can be observed

DEMOGRAPHY and ECONOMICS & GEOPOLITICS & SOCIAL ENVIRONMENTAL URBANISATION FINANCING CONTEXT PRESSURE • Half of world population • Over 4% of GPD Growth in • Democratization vs stability • Diversity of ecosystems : desert and semi-desert, forest growth between now and last 10 years and for the • Governments are more open and grassland, tropical forest, 2050 (1.2 to 2.5 billion) next 15 years toward private sector savanna • Not one Africa : different • Forecast of huge • External financial flows to • Issues: access to water and languages, cultures, border urbanisation (50 to 70% in Africa increased six-fold water quality preservation, and trade agreements 2050) since 2000 and will continue desertification, protection of fauna and flora – high sensitivity index

Climate Change, Massive Transformation: Improvement of Africa becomes overall less deforestation, population macroeconomic policies is a risky than before but remains Energy & infrastructure need, growth are environmental key key factors of Africa’s growth at high to very risk levels especially for cities issues

Sources : Oxford Economics, African Economic Outlook data, IMF,

31 ENGIE Africa will develop its activities and enter new countries where attractiveness combines with opportunity to create value and where risks are well understood

Promising and sustained Economic development

 Rising energy demand, new energy needs  GDP growth driven by strong economic fundamentals  Increasing population and per capita consumption  Affordability and living standards, emergence of a middle class

Fvourable business environment Access to opportunities ● Compliance with ENGIE Human Rights, Ethical standards and policies  Governments that welcome foreign investments  Availability of resources to implement projects, including fuel ● Acceptable country risk at competitive return reserves/security, access to primary energy resources, EPC requirements contractors and local talents ● Stable political environment and favourable  Business/market growth potential regulation  Size of opportunity matches our strategic plan for the country ● Favourable competitive environment. Legal  Reliable strategic partners system that protects investors and contracts Financial attractiveness

 Strong, sustainable returns  Acceptable payment risk and sufficiently reliable customers  Availability of government guarantees  Financing by international institutions, bankable projects, low cost finance

32 In 2016, ENGIE will focus Business Development efforts and market analysis in countries where we have a strong presence, plus 12 target countries

ENGIE development activities in Africa in 2016

 To grow in the countries where ENGIE is already present  To aim at entering a number of target countries

8 target countries solar only Ghana Mozambique Botswana Kenya Ivory Coast Zambia Tanzania Senegal + Namibia Nigeria Ethiopia Uganda

Already present

New Country

New Country Solar only

33 ENGIE Africa will further develop centralized solutions

Centralised solutions

ENGIE Africa aims at developing centralised power generation, and related infrastructure, depending on the availability of renewable and gas resources and based on rigorous risk/return analysis:

• Potential for Wind mainly in North Africa, East Africa, South and South Eastern Africa • Potential for Solar projects (PV and CSP) in our target countries depending on local radiation resources (DNI for CSP and GHI for PV). • Biomass availability mainly in Gulf of Guinea countries, Eastern and South Africa • Hydro potential located in Gulf of Guinea countries, South and Eastern Africa • Geothermal resources available mainly in Eastern Africa • Gas to power, in countries with national resources, i.e. countries of Gulf of Guinea and Eastern Africa, and/or associated with import terminal and

infrastructure developments (North and South Africa) Sources : IEA African Energy Outlook

34 … as well as decentralized solutions

ENGIE will propose solutions to industries, commercials, public sector, communities and cities:

Decentralised power generation,

where economically relevant, will be proposed to local communities and remote populations with off-grid or micro-grid solutions. Decentralised generation for remote industries, such as mining horticulture or forestry, will also be developed. The choice of fuel (RES including biomass, gas, diesel) and technology will depend on the clients needs and on the resources availability and costs.

Services to Businesses

for which Engie has developed competitive advantages (energy efficiency, facility management, …) will be offered, to large industrial and commercial clients and to public facilities, providing acceptable counterpart risk. Potential opportunities of integrated solution for cities will be explored.

35 The diversity in geopolitical situations, socio-economic contexts, demographic trends and strains on the environment steer the evolution of national Energy Regulatory Frameworks

Security of supply and Socio-economic context geo-political context

 Demographics (trends, age structure, gini  Many countries still rely on oil products imports index, urbanization rates)  Electrification of rural/remote area  Different natural resources are Security of Socio- available in different regions supply economics  Access to cheaper energy to sustain (renewables, coal, gas, oil) economic growth  Current electricity prices reflect ERF  Development of Infrastructure scarcity and are heavily subsidized  Improvement of energy efficiency  Insufficient infrastructure and  Country balance of payments insufficient access to reliable energy  New build costs vs price acceptability and  Limited interconnections between affordability systems  Competitive environment  Geo-Political situations / cross border Environment relationships

Strains on the environment

 Access to and use of natural resources, including land  Increasing Control of environmental impacts mainly on water and biodiversity  Climate change agenda and commitments

36 engie-africa.com