#11 ENGIE ENERGÍA CHILE S.A. Presentation to investors 1Q18 Results ENGIE#2AGENDA Snapshots Key messages Financial update Addenda Engie Energía Chile Presentation to Investors - 4Q 2017 2 ENGIE#3SNAPSHOT: ENGIE S.A. ENGIE: A GLOBAL ENERGY PLAYER LOW CO2 POWER GENERATION World leading independent power producer 103 GW (1) installed ~90% low CO₂ 26% renewables (2) Capacity breakdown GLOBAL NETWORKS European leader in gas infrastructures €27bn (3) regulated asset base in France 12bn m³ storage capacity Expertise in power transmission & distribution CUSTOMER SOLUTIONS 24m customers in Europe Global leader in energy solutions for cities +250 distribution heating & cooling networks worldwide 23m individual and professional contracts EBITDA by type of business EBITDA gas infrastructures 89% low CO2 5% 0.4 7% 6% 103 GW (1) €3.8bn(4) 3.4 56% 26% Natural gas Renewables (2) Nuclear Coal Other (1) At 31/12/2017, at 100% (2) Incl. pumped storage for hydro (3%) Engie Energía Chile Presentation to Investors - 1Q 2018 0.7 France B2B Other EU & International (3) Incl. Storengy in France, regulated as from 01/01/2018 (4) 2017 EBITDA 0.5 €2.3bn(4) 1.1 B2T B2B: Business to Business B2T: Business to Territories B2C: Business to Customers 3 B2C ENGIE#4SNAPSHOT: CHILEAN ELECTRICITY INDUSTRY TWO MAIN GRIDS RECENTLY INTERCONNECTED SISTEMA ELÉCTRICO NACIONAL (SEN) (SIC + SING) Installed capacity Regulated 58% Clients 10,914 MW Unregulated 42% Regulated 11% SING 23,737 MW 10% y/y 2,821 MW Peak demand 10,914 MW 1% y/y SIC Santiago Energy generation 19,087 GWh 2% y/y Sources: CNE, CEN, Asociación de Generadoras Engie Energía Chile Presentation to Investors - 1Q 2018 Unregulated 30% Unregulated 89% Generation 1Q18 (GWh) Renew. 15% Market Share (% installed capacity Mar-18) Enel 27% EECL 8% Hydro 39% Colbún Gas 14% 19,087 GWh 16% 23,737 MW Tamakaya 4% AES Gener 17% Coal 30% Other 30% Diesel 1% Renew. 14% Gas 17% Other 16% EECL 34% Tamakaya 9% 4,910 GWh 5,777 MW Enel 17% Coal 68% Renew. 15% Gas Other 16% 36% 8,093 MW 14,177 GWh Regulated 70% Hydro 39% Coal 30% AES Gener 24% Colbún 18% 17,960 MW AES Gener 15% Enel 30% 6 ENGIE#5SNAPSHOT ENGIE ENERGÍA CHILE EECL: A RELEVANT PLAYER IN THE CHILEAN POWER INDUSTRY RELEVANT PLAYER IN THE ENERGY INDUSTRY Leader in northern mining region, 4th largest electricity generation company in Chile ~2GW gross generation capacity; ~0.3GW under construction 3rd largest transmission company Seaport infrastructure, gas pipeline GROWTH UNDERWAY New 15-yr regulated PPA w/distribution companies starting 2018 => 43% contracted physical sales growth by 2019 50%-owned TEN - US$ 0.9 bn transmission project began operations in 4Q17 US$ 1 bn new power generation capacity + port to start operations in 3Q18 CONTRACTED BUSINESS Capacity contracted under long-term sales agreements; 13 years remaining average life Strong counterparties Unregulated: mining companies; Regulated: distribution companies Strong sponsorship Prepared to provide energy solutions to its customers Engie Energía Chile Presentation to Investors - 1Q 2018 Float 21.8% Good delivery in growth strategy implementation AFPS (Chilean pension funds) 25.5% Engie Energía Chile ENGIE 52.8% 5 ENGIE#6SNAPSHOT: ENGIE ENERGÍA CHILE'S ASSETS A DIVERSIFIED ASSET BASE TO MEET OUR CLIENTS' ENERGY NEEDS 44 1,971 MW (*) in operation & 375 MW in construction 2,293 kms HV + MV transmission lines & 50% share in TEN 600 km, 500 kV project Chapiquiña (10MW) El Aguila I (2MW) Pampa Camarones (6MW) Diesel Arica (14MW) Diesel Iquique (43MW) TE Tocopilla (877MW) Tocopilla port Technology Collahuasi Coal Diesel/FO Natural gas Renewables El Abra Chuquicamata Mining Operations C. Tamaya (104MW) Gaby 2 seaports TE Mejillones (560MW) Gas pipelines & CT Andina (177MW) Long term LNG supply agreements CT Hornitos (177MW) (*) EECL requested the CNE to authorize the disconnection of units 12 and 13 in Tocopilla, with combined gross capacity of 170 MW. Engie Energía Chile Presentation to Investors - 1Q 2018 Escondida 50% share in TEN transmission project Gasoducto Norandino Chile Argentina (Salta) ENGIE 6#7SNAPSHOT: EECL IN 2018 2018: THE BEGINNING OF A NEW ERA NEW PPA: REVENUE & EBITDA GROWTH Contracted revenue growth ~8,200 GWh p.a. in 2017 ~11,700 GWh p.a. in 2019 More balanced portfolio (Unregulated/regulated) • 77%/23% in 2017 52%/48% in 2019 Expected EBITDA growth (>80% in 2 years) Clients' Sales (GWh) 43% INTERCONNECTION TEN: 600-km, 500 kV, US$0.9bn, transmission project On schedule, within budget, operating since 24-Nov-17 • Regulated & contracted revenue; US$80 million EBITDA p.a. TEN: 50/50 Joint Venture 80% project financed NEW POWER SUPPLY IEM + Puerto Andino US$1 bn investment including port In commissioning, on budget IEM Port COD: 3Q18 IEM: 375 MWe gross capacity +2 LNG cargoes - 2018 +1 LNG cargo - 2019 1-year bridge contracts with generation companies to meet new PPA 2017 2018 2019 Regulated EECL Red Eléctrica 50% 50% ■ Unregulated Engie Energía Chile Presentation to Investors - 1Q 2018 ENGIC 7#8AGENDA Snapshots Key messages Financial update Addenda ENGIE Engie Energía Chile Presentation to Investors - 1Q 2018 8#9KEY MESSAGES TY C x Results in line with guidance Mastering the growth achieved Building our future together with our clients PPA renegotiation, decarbonization & life extension Paving the way for our energy transformation plan Development focused on replacing coal with renewable capacity Engie Energía Chile Presentation to Investors - 1Q 2018 Robust capital structure Ample room to finance energy transformation plan ENGIE 9#10KEY MESSAGES RECENT EVENTS 0 INDUSTRY SING SEN "Sistema Eléctrico Nacional" SIC-SING interconnection: In operations since November 24, 2017, giving birth to the SEN. The TEN project was ready ahead of schedule and within budget Government and Generation Companies' agreement to phase out coal generation New government took office on March 11, 2018: Sebastián Piñera, President; Susana Jiménez, Minister of Energy; Ricardo Irarrázabal, Subsecretary of Energy National transmission project bids launched by the CEN: 6 companies presented offers for an aggregate US$200 million IV RM VI SIC Vill אן XIV Engie Energía Chile Presentation to Investors - 1Q 2018 COMPANY Amendments to the Codelco and Glencore PPAs signed on April 2: tariff decrease, full indexation to CPI starting 2021, and PPA life extension Authorization to disconnect U12 & U13 coal units (combined 170 MW) was requested to the CNE The new 15-year PPA with distribution companies started in 2018 (up to 2 TWh), stepping up to 5 TWh in 2019 Bridge PPAs with generation companies were signed to supply ~60% of demand under the above PPA Puerto Andino and IEM are in their commissioning phase ENGIE 10#11RESULTS IN LINE WITH GUIDANCE: MASTERING THE GROWTH ACHIEVED 1Q18 RESULTS IN LINE WITH GUIDANCE • EBITDA increased 39% mainly due to the new PPA with distribution companies Net income almost doubled due to expanded operations. 1Q17 1Q18 ☐ Variation Operating Revenues (US$ million) 258.8 301.8 +17% EBITDA (US$ million) 66.0 91.7 +39% EBITDA margin (%) 25.5% 30.4% +4.9 pp Net income (US$ million) 19.7 39.2 +100% Net income-recurring (US$ million) 19.7 39.2 +100% Net debt (US$ million). 770.5 (*) 784.8 +2% Spot energy purchases (GWh) 821 929 +13% Energy purchases - Bridge (GWh) 0 215 n.a. Physical energy sales (GWh) 2,164 2,408 +11% Net Income impacted by non recurring items in 2016 Increase in net debt related to expansion CAPEX (*) Net debt as of 12/31/2017 Engie Energía Chile Presentation to Investors - 1Q 2018 11 ENGIE#12RESULTS IN LINE WITH GUIDANCE: MASTERING THE GROWTH ACHIEVED DEMAND SUPPLIED WITH OWN GENERATION, SPOT PURCHASES AND BRIDGE CONTRACTS US$/MWh 140 120 100 80 660 40 40 Spot purchases 20 0 Renewables Spot 929 GWh 20 GWh overcosts Average monomic price US$116/MWh Average fuel & electricity purchase cost: US$63/MWh U12 & U13 coal plants: 6% of 1Q18 power supply. Authorization to close down requested on 4-Apr-18. Diesel CTM3 U16 U15 U14 U13 U12 CTH CTA Bridge contracts CTM1 CTM2 Firm capacity Coal 431 GWh Bridge 215 GWh Coal 180 GWh LNG 336 GWh Coal 445 GWh Diesel 2 GWh Total energy available for sale before transmission losses 1Q 18 = 2,558 GWh Average realized monomic price, spot purchase costs and average cost per MWh based on EECL's accounting records and physical sales per EECL data. Average fuel & electricity purchase cost per MWh sold includes the LNG regasification cost, green taxes, firm capacity, self consumption & transmission losses Net system over-costs and ancillary service costs averaged US$0.1 per each MWh withdrawn by EECL to supply demand under its PPAs. Engie Energía Chile Presentation to Investors - 1Q 2018 ENGIE 12#13BUILDING OUR FUTURE TOGETHER WITH OUR CLIENTS PPA RENEGOTIATION, DECARBONIZATION & LIFE EXTENSION Average demand (MW) Sound contract portfolio with average remaining life recently extended to 13 years (*) 600 Regulated contracts Unregulated contracts 500 Renegotiated contracts Distribution Companies SIC • A GROWTH DRIVING PPA 2018: Up to 2,016 GWh (230 MW-avg.) 2019-2032: Up to 5,040 GWh per year (575 MW-avg.) Monomic price (Jan-Mar 2018): US$128/MWh 400 300 Codelco Codelco AMSA Emel 200 100 Clients' international credit ratings: Codelco: A+ • Freeport-MM (El Abra ): BB- • Antofagasta PLC (AMSA + Zaldívar): NR Glencore Glencore • Other SING El Abra • Glencore (Lomas Bayas, Alto Norte): BBB EMEL: AA-(cl) Other SIC 0 T 0 2 4 6 8 10 12 14 16 18 20 20 (*) Proforma April 2 PPA renegotiations Remaining life of contracts (years) Engie Energía Chile Presentation to Investors - 1Q 2018 22 22 24 Source: EECL (*) Internal demand projections based on historic data and market intelligence, proforma PPA renegotiations signed on April 2, 2018. 13 ENGIC#14BUILDING THE FUTURE TOGETHER WITH OUR CLIENTS PPA RENEGOTIATION, DECARBONIZATION & LIFE EXTENSION CODELCO GLENCORE EL BRA Lomas Bayas Alto Norte 16MW 34M W 16MW 34MW Chuqui 200MW El Abra 110MW PPA renegotiations signed by EECL on April 2, 2018: A win-win transaction Price discount, coal-indexed Price discount, CPI-indexed Price discount, coal-indexed Price discount, CPI-indexed Price discount, coal-indexed Price discount, Price discount, CPI-indexed coal-indexed Price discount, coal-indexed Price discount, coal-indexed CPI-indexed PPA life extension @ new, CPI-indexed price Price discount, CPI-indexed Price discount, CPI-indexed PPA life extension PPA life extension PPA life extension PPA life extension 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Extending the life of our PPAs and leaving behind their price indexation to coal will allow us to invest in renewable power sources and gradually replace coal capacity Our clients will benefit from lower power prices and a reduction in their carbon footprint Engie Energía Chile Presentation to Investors - 1Q 2018 ENGIE 14#15BUILDING THE FUTURE TOGETHER WITH OUR CLIENTS PPA RENEGOTIATION, DECARBONIZATION & LIFE EXTENSION GWh CONTRACTED DEMAND: OUR VISION THROUGH 2030 14,000 12,000 10,000 8,000 6,000 4,000 2,000 2017 2018 2019 Regulated SING 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 ■Regulated SIC ■Free clients-renegotiated Other free clients We could potentially invest US$1 bn in renewable power projects over the 2019-2023 period on the basis of the recent PPA life extension Source: Engie Energía Chile: Average expected demand under existing contracts proforma April 2, 2018 renegotiation Engie Energía Chile Presentation to Investors - 1Q 2018 ENGIC 15#16PAVING THE WAY FOR OUR ENERGY TRANSFORMATION PLAN RENEWABLE CAPACITY DEVELOPMENT PROJECTS Arica & Parinacota Wind Solar PV Project development focused on energy transition Geographic and power source diversification Source: Engie Energía Chile Engie Energía Chile Presentation to Investors - 1Q 2018 Antofagasta Biobío Araucanía O'Higgins Gradual replacement of aging thermal plants Los Lagos Smoothing energy production and demand patterns ENGIE 16#17ROBUST CAPITAL STRUCTURE AMPLE ROOM TO FINANCE ENERGY TRANSFORMATION PLAN MUSD 500 • 2018: THE END OF A CAPEX-INTENSIVE PHASE FREE CASH-FLOW POSITIVE STATUS STARTING 2019 WILL RELEASE FINANCING CAPACITY FOR ENERGY TRANSFORMATION PLAN 400 TEN 35 300 IEM & Port 200 TEN 20 314 IEM & Port 109 TEN 30 IEM & Port 436 IEM & Port 265 4.0 3.5 Debt capacity to 3.0 finance new CAPEX will 2.5 increase to US$1.5bn @ 3x Debt/EBITDA 2.0 1.5 1.0 100 0.5 Recurring 88 Recurring 56 Recurring 58 Recurring 96 Recurring 69 Recurring 39 0 2015 2016 2017 2018 2019 2020 EBITDA (left axis) (*) Recurring CAPEX includes upgrade investing in transmission assets Net Debt-to-EBITDA (right axis) Engie Energía Chile - Presentation to Investors - 1Q 2018 ENGIE 17#18GUIDANCE: MASTERING THE GROWTH ACHIEVED & STARTING OUR TRANSFORMATION KEY DRIVERS FOR OUR RESULTS PPAs •PPA with distribution companies •PPA renegotiation REGULATION • Green taxes DEMAND FUEL & SPOT PRICES ** × PRODUCTION • . INTERCONNECTION Client migration •Mining investment + Electric vehicles • Coal prices Hydrologic conditions ⚫IEM COD 3Q18 U12/U13 coal plants closure • TEN COD Delay in full interconnection Source: Engie Energía Chile Engie Energía Chile Presentation to Investors - 1Q 2018 00 00 00 00 0.00 18 ENGIE#19GUIDANCE: MASTERING THE GROWTH ACHIEVED & STARTING OUR TRANSFORMATION ONGOING FOCUS ON DELIVERY IN OUR GROWTH PATH PREPARING THE GROUNDS FOR A LARGER-SCALE, LEANER OPERATION Embracing the growth achieved: • New PPA => larger sales volume ⚫ Interconnected system => larger, more complex market US$ 160 to 180 mln US$ 120 to 140 mln US$ 460 to 480 mln Innovating and developing digital solutions to service our clients, improve efficiency and reduce operating costs US$ 87 mln US$ 350 to 370 mln US$ 276 mln Completing our projects in time, on budget and within quality standards 1,250 to 1,350 MW avg. 1,000 to 1,100 MW avg. ~937 MW avg. Pursuing an AGILE organization Source: Engie Energía Chile Engie Energía Chile Presentation to Investors - 1Q 2018 2017 2018 2019 ■Contracted Sales EBITDA ■Net Recurring Income ENGIC 19#20AGENDA Snapshots Key messages Financial update Addenda ENGIE ENGIE Engie Energía Chile Presentation to Investors - 1Q 2018 20 RB JA MAJUR INO 97857#21FINANCIAL UPDATE REGULATED REVENUE FROM NEW PPA WITH DISTRIBUTION COMPANIES LARGELY EXPLAINS THE 39% EBITDA INCREASE By main effect In US$ Million +2 +8 (9) +46 (5) Higher TEN results (50% share) (5) energy prices Higher spot purchase costs (7) Higher fuel costs (5) Margin 92 variations Lower Higher Gas (+1) 66 Increased regulated sales EBITDA new PPA 1Q17 w/distr. co's. Engie Energía Chile - Presentation to Investors - 1Q 2018 sales to OPEX & Transm.(-4) free Other (-2) SG&A clients (end RT costs PPA) (FX) 21 EBITDA 1Q18 ENGIE#22FINANCIAL UPDATE NET INCOME INCREASED IN LINE WITH EBITDA IMPROVEMENT In US$ Millions 20 +3 minority interest Net Income 1Q17 Engie Energía Chile Presentation to Investors - 1Q 2018 +1 +19 Interest expense decrease (1) Other FX Diff. Depreciation Higher tax rate EBITDA increase 39 +2 minority interest Net Income 1Q18 22 ENGIE#23FINANCIAL UPDATE NET DEBT EVOLUTION REVEALS CONTINUED STRONG CASH GENERATION Main cash flows In US$ Million +60 +2 +8 +8 (78) +68 839 Dividends Accrued Income 771 Financial (40% CTH) Interest + Taxes Operating CAPEX (*) lease var. cash flow (tolling deferred financial Net Debt as of 12/31/17 (*) excludes capitalized interest • agreement W/TEN) • CAPEX financed with operating cash flow cost + var. MTM on hedges Net Debt as of 3/31/18 Net debt increase explained by tolling agreement on TEN's dedicated transmission assets, which is accounted for as a financial lease Engie Energía Chile Presentation to Investors - 1Q 2018 ENGIE 23#24FINANCIAL UPDATE ROBUST FINANCIAL STRUCTURE: ROOM FOR FURTHER GROWTH Net debt/EBITDA below 3.0x • Strong cash flow generation • Proceeds from asset sales (TEN) in 2016 Rating confirmed @ BBB (Stable Outlook) • International: S&P & Fitch - July 2017 • National scale: Feller Rate (Dec-17): A+ Positive Outlook; Fitch (Jul-17): A+ Stable Outlook Debt details: NET DEBT/EBITDA ≤ 3.0 X 2.0 1.6 1.7 2.8. 2.8 Dec 14 Dec 15 Dec 16 Dec 17 Mar 18 (LTM) MODERATE DEBT INCREASE, WITH LOWER AVERAGE COST In US$ Millions 910 . US$ 750 million 144-A/Reg S Notes: 850 • 5.625%, US$400 million 2021 (YTM-3.501% at 3/31/18) 750 750 750 • 4.500%, US$350 million 2025 (YTM=4.155% at 3/31/18) • 1.58%, US$100 million bank loans maturing 2018 • US$60 million 20-yr. financial lease w/TEN for dedicated transmission assets 5.1% 5.1% 15.1% 851 772 :603: 4.8% 4.8% 481 #471: • US$270 million bank revolving credit facility maturing June 2020 (undrawn) 2014 2015 Net Debt 2016 SPREE Gross Debt 2017 Mar-18 Average coupon rate Engie Energía Chile Presentation to Investors - 1Q 2018 24 ENGIE#25FINANCIAL UPDATE SHAREHOLDER RETURN In US$ Millions 100% DIVIDENDS PAID 56 78 7 MARKET CAP & DIVIDEND YIELD In US$ Millions 3.4% 5.4% 47 17 12 2,265 34 72 30% 30% 30% 2.3% 2.2% 1,657 1,536 1,440 20 1,363 39 35 13 14 13 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Provisional & Additional Final Policy % Market Cap Dividend Yield % 130 120 110 100 March 31, 2017 EECL: CLP 1,216 IPSA: 4,783 SHARE PRICE EVOLUTION 0.8% March 31, 2018 EECL: CLP 1,326 (+9%) IPSA: 5,542 (+16%) IPSA ECL 90 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Index: 3/31/17 = 100 Includes dividends Dividend yield: dividends per share actually paid in year n divided by year n-1 closing price Engie Energía Chile Presentation to Investors - 1Q 2018 ENGIE 25#26FINANCIAL UPDATE KEY TAKE-AWAYS: VALUE CREATION FOR OUR STAKEHOLDERS DELIVERY AND DEVELOPMENT M IEM+PORT COD 3Q18 RENEWABLES PORTFOLIO ASSET ROTATION m CLIENTS AND OPERATION LEADERS IN ENERGY TRANSITION PPA PORTFOLIO EXTENSION 3 NEW PPA WITH DISTRIBUTION CO'S ་ CUSTOMER SOLUTIONS $ Engie Energía Chile Presentation to Investors - 1Q 2018 CAPITAL STRUCTURE & LEAN PROGRAM 26 ENGIE#27AGENDA Snapshots Key messages Financial update Addenda Engie Energía Chile Presentation to Investors - 4Q 2017 27 ENGIE#28ADDENDA LONG-TERM CONTRACTS: THE BASIS FOR STABLE SALES VOLUMES AND PRICES Energy sales GWh 3,000 2,500 2,000 1,500 1,000 500 . ENERGY SALES AND PRICES Prices US$/MWh 150 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Unregulated Regulated Spot Energy+Capacity Price->Unregulated Spot Energy Price-Quillota Energy+Capacity Price-> Regulated Spot Energy Price-Crucero Energy contract prices have moved in line with fuel prices Spot prices in the SIC have been sensitive to hydrologic conditions Engie Energía Chile Presentation to Investors - 1Q 2018 100 50 ENGIE 28#29ADDENDA DEMAND SUPPLIED WITH OWN GENERATION, SPOT PURCHASES AND BRIDGE CONTRACTS, HEDGED BY OUR INSTALLED CAPACITY Gas 32% Diesel 10% Renewables 1% Installed capacity 1,971 MW (Mar-18) Coal 57% Increasing spot purchases due to (i) coal, gas and renewable efficient capacity additions in the grid and (ii) start of PPA with distribution companies in central Chile Higher fuel prices, CO 2 taxes and emission-reduction costs have put pressure on average supply cost ENERGY SOURCES AND AVERAGE SUPPLY COST US$/MWh GWh 3,000 150 2,500 100 2,000 1,500 1,000 50 500 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Coal Gas Diesel Renewable Bridge Contracts Spot Purchases Average Supply Cost Engie Energía Chile Presentation to Investors - 1Q 2018 29 ENGIE#30ADDENDA GENERATION AND SPOT ENERGY PRICE HISTORY IN THE SING • • No exposure to hydrologic risk until interconnection is fully operative • Long-term contracts with unregulated clients (mining companies) accounting for 89% of demand (bilateral negotiation of prices and supply terms) Maximum demand: ~ 2,821 MW in 2018; expected 3.5% compounded average annual growth rate for the 2017-2026 period MW US$/MWh Coal Gas Diesel Renew. Spot price 350 3,000 Average generation (MW) Marginal cost (US$/MWh) 300 2,500 2,000 1,500 1,000 500 لسلب 250 200 150 100 50 50 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Engie Energía Chile Presentation to Investors - 1Q 2018 30 ENGIE#31ADDENDA CURRENT REGULATORY AND GRID COORDINATION CHALLENGES MW 3,000 2,500 2,000 1,500 1,000 500 0 Generation in the SING - March 22 to 31, 2018 US$/MWh 100 90 80 70 60 50 40 30 20 10 1 5 9 131721 1 5 9 131721 1 5 9 131721 1 5 9 13 1721 1 5 9 131721 1 5 9 131721 1 5 9 13 1721 1 5 9 13 1721 1 5 9 131721 1 5 9 131721 22 Solar Coal EECL TEN Flows 23 24 25 Wind LNG EECL SING Demand 26 29 27 28 30 31 Other Coal Others LNG Others Diesel Marginal Cost-Crucero 220kV Source: CEN • . Penetration of intermittent renewable power sources and interconnection Lower marginal costs during sun & wind hours; renewable power imports through the TEN line Higher system costs to cope with intermittent output (more frequent CCGT start-ups, greater spinning reserve required to thermal plants) New ancillary services regulation required Need to develop economic 24 x 7 renewable generation solutions Engie Energía Chile Presentation to Investors - 1Q 2018 ENGIE 31#32ADDENDA RECENT GAME CHANGERS IN THE CHILEAN POWER INDUSTRY More agile, diversified, client-focused approach to face industry change INCREASED COMPETITION TECHNOLOGIC DISRUPTION RECOVERY IN DEMAND GROWTH More flexible power auction regulations (Law # 20,805) • De-risked regulated PPA to foster competition Falling energy prices Carbon footprint reduction => PPAs indexed to CPI Increased difficulty to execute projects Lower investment cost of renewable capacity Shorter development period for renewables • Improved plant efficiency Lower operational costs Mining industry recovery with copper >3 $/lb: revival of large mining projects GDP growth may be reversing Energy saving programs create x-sales opportunities Smart grid initiatives and electric mobility Evolution of Market Design in continuous change High penetration of Renewables and new energy management products Trends may be reversing! (copper > 3 $/lb) Engie Energía Chile Presentation to Investors - 1Q 2018 ENGIC 32#33ADDENDA THE "SEN": A LARGER MARKET FOR ALL PLAYERS IV VI RM SING VII SIC Vill IX XIV XII +++ SEN "Sistema Eléctrico Nacional " Source: CNE (www.cne.cl) Engie Energía Chile Presentation to Investors - 1Q 2018 6,315 MW 78 SEN -Mar-2018 23,737 MW 3,450 4,098 MW 271 3,406 MW 45 816 7,415 MW 3,436 1,370 127 1,631 1,971 MW 10 202 2,000 3,011 623 2,609 (*) 1,380 532 MW 1,127 660 532 Enel Generación AES Gener 350 Colbún EECL Kelar Other ■ Coal ■Gas ■Diesel Hydro Renewable ■(*) Thermoelectric ENGIE 33#34ADDENDA PPA PORTFOLIO INDEXATION: SHIFTING AWAY FROM COAL Coal Overall indexation applicable to electricity and capacity sales (as of March 2018) U.S. CPI 34.2% 1,425 MW Contracted * U.S. PPI Node Price 51.0% Coal 21.9% Overall indexation applicable to electricity and capacity sales (2021, proforma PPA renegotiation) U.S. CPI 1,366 MW Contracted * U.S. PPI Node Price 64.3% Marginal Cost 1.2% Gas 13.5% (*) Maximum contracted demand as of March 2018 Indexation frequency: Regulated Semiannual Others Monthly Marginal Cost 1.2% Gas 12.5% (*) Maximum contracted demand projected for 2021 EMEL contract tariff adjustment: Energy tariff: -40% US CPI, ~60 % Henry Hub gas price: Based on average HH reported in months n-3 to n-6 Immediate adjustment triggered in case of any variation of 10% or more Capacity tariff per node price published by the National Energy Commission ("CNE") New PPA with distribution Co's tariff adjustment: Energy tariff: ~66.5% US CPI, -22% coal, 11.5% HH gas: Based on average HH reported in months n-3 to n-8 Immediate adjustment triggered in case of any variation of 10% or more Capacity tariff per node price published by the National Energy Commission ("CNE") Engie Energía Chile Presentation to Investors - 1Q 2018 ENGIE 34#35ADDENDA TRANSMISSION Infrastructure EECL, a relevant player in the transmission business 2,293 kms. 844 MVA EECL operates 23 substations with total capacity of 844 MVA US$ 16 million regulated revenue p.a. 5 ■Transmission substations 891 589 124 98 Dedicated EECL operates 2,293 kms. of transmission lines Kms of transmission lines 8% 2,293 Kms. 92% ■ Owned & Operated ■ Operated ■Generation substations 844 MVA 18 AVI + COMA for National & Zonal systems (in millions of US$) 6 US$ 16 million 351 10 213 National 28 Zonal 13.8-23 kV 66 kV 110 kV 220 kV Engie Energía Chile Presentation to Investors - 1Q 2018 ■National toll ■ Zonal toll 35 ENGIE#36ADDENDA TRANSMISORA ELÉCTRICA DEL NORTE S.A. "TEN" (PAGE 1 OF 2) 書 Infrastructure - Regulated ~US$0.9bn investment, 50%-owned by EECL Project Highlights Kel ar • • Double circuit, 500 kV, alternate current (HVAC), 1,500 MW, 600- km long transmission line National transmission system interconnecting SIC and SING grids COD: November 24, 2017 TEN-GIS CT 13 km H M3 CT M 2 1,500 MVA IEM 1220 kV 500 kV³ 400 km S/S Los Changos TEN dedicated transmission line project TEN national transmission line project Interchile (ISA) transmission project Existing lines New projects tendered by the CNE Engie Energía Chile Presentation to Investors - 1Q 2018 Main Contracts S/S Cumbre 500 kV 190 km Regulated revenues on "national assets" + contractual toll on "dedicated assets" Turnkey EPC contracts: • Transmission lines: Ingeniería y Construcción Sigdo Koppers • Substations: GE Grid Solutions Project financing (see next slide) S/S Nueva Cardones (Interchile -ISA) 500 kV 1 220 kVi Maitencillo S/S Cardones Maitencillo 36 ENGIE#37ADDENDA TRANSMISORA ELÉCTRICA DEL NORTE S.A. "TEN" (PAGE 2 OF 2) 書 Infrastructure - Regulated US$0.9bn investment, 50%-owned by EECL Parinacota Date: A Cándares Tarapaca Lagunas- Crucero Atacama Esmeralda TEN Canon Plate Dines Matencla Pande Ancar Los Vilas SIC expansion Interchile "ISA" Quilota Pelpaico Cerro Navia Chena Rapel Atelahuel Engie Energía Chile Presentation to Investors - 1Q 2018 B Regulated & contracted revenue VI In MUSD @ Oct 2013 FX Rates 738.3 Indexation TEN's annual revenues: (in USD millions at Mar. 31, 2018 FX rates) In CLP to Chile CPI In USD to US CPI 41% 59% AVI (VI annuity): IPCK DOLO +B;⋅ IPCO DOLK CPIK CPI = VATT IPCK DOLO COMAn,k = COMAN,0 IPCO DOLK A. V. Ink = A. V. Ino · (α; · 77.1 AVI + EECL toll MUSD 84, a good proxy of TEN'S EBITDA p.a. + COMA (O&M cost): 9.8 86.9 +Toll (paid by EECL): ~7.0 = AVI annuity of VI (Investment value) providing 10% pre-tax return on assets (at least 7% post-tax return beginning 2020) Project financing Equity - 20% ~ US$0.9 bn of which >80% = Senior Debt Project Financing ■Senior 18-yr USD Loan 26-yr USD Fixed-rate note ■Senior 18-yr Local UF Loan Equity-RECh Equity EECL Total senior debt ≤ MUSD 745 + Subordinated VAT Facility = MUSD 94 37 ENGIC#38ADDENDA INFRAESTRUCTURA ENERGETICA MEJILLONES. "IEM" Thermal contracted + port US$1.0bn investment, within schedule and budget Project highlights 375MWe gross capacity => 337M We net base-load capacity • Pulverized coal-fired power plant meeting strict environmental standards Mechanized port, suitable for cape- size carriers Scheduled completion date: 3Q18 IEM & port currently in commissioning & testing phase Ongoing developments US$1.0 billion investment (US$764 million paid as of 3/31/18) Financed on-balance sheet within EECL Engie Energía Chile Presentation to Investors - 1Q 2018 • Main contracts & Progress ENGIE • Developed to supply distribution companies Turnkey EPC contracts: IEM plant: SK Engineering and Construction (Korea) Port: BELFI (Chile) Overall progress rate as of Mar. 31, 2018: 95.4% 38 ENGIC#39ADDENDA COPPER INDUSTRY US¢/lb 500 Copper price LME (US¢/lb) ■Copper production in Chile ('000 tons) SING Electricity demand (GWh) GWh 6,000 SIC Electricity demand (GWh) 450 400 M 5,000 350 4,000 300 250 3,000 200 5,413 5721 5,361 5,557 5,776 5,761 5,772 5,328 ,394 5,419 5,263 5,434 5,504 4,602 4,739 4,904 4,581 2,000 150 100 50 0 1,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Chile's world-class copper industry is facing challenges: • Scarce water resources => increasing sea water pumping and desalination needs => higher power costs; • New port infrastructure required; • Need to keep cash cost under control; • More demanding environmental and social requirements => need to reduce carbon footprint. 444 2009 2010 2011 2012 2013 2014 2015 2016 2017 Engie is prepared to help our clients: • Power production & transmission; financial strength; group expertise in the water business; • Available port infrastructure; Ready to provide energy efficiency services; Diversifying power sources to reduce carbon footprint. Source: COCHILCO Engie Energía Chile Presentation to Investors - 1Q 2018 ENGIC 39#40ADDENDA OWNERSHIP STRUCTURE Pension funds ENGIE 52.76% 25.46% Local institutions 15.02% Foreign institutions Individuals 6.27% 0.48% ENGIE ENERGÍA CHILE S.A. Inversiones Punta de Rieles Ltda. ("EECL") Red Eléctrica Chile S.A. 40% 50% Central Termoeléctrica Hornitos S.A. ("CTH") Central Termoeléctrica Andina S.A. ("CTA") Gasoducto Norandino S.A. Edelnor Transmisión S.A. 60% 100% 100% 100% Electroandina S.A. (port) 100% Engie Energía Chile Presentation to Investors - 1Q 2018 Gasoducto Norandino Argentina S.A. 100% Transmisora Eléctrica del Norte S.A. ("TEN") 50% ENGIE 40#41ADDENDA EECL ORGANIZATIONAL STRUCTURE . Shareholders' assembly Committee Board of directors of directors Internal auditor CEO Functional committees: - Origination Development Business knowledge Regulation Change management - Management Steering Committees: IEM - Finance People, IT, processes Legal Commercial Development Corporate affairs Portfolio management Generation Transmission Gasoducto Norandino TEN The Board of directors includes three independent members out of a total of 7 directors The Committee of directors is formed by the three independent members and oversees all transactions among related parties Engie Energía Chile Presentation to Investors - 1Q 2018 ENGIC 41#42FOR MORE INFORMATION ABOUT ENGIE ENERGIA CHILE | Ticker: ECL +562 2783 3307 [email protected] http://www.engie-energia.cl MORE INFORMATION ON 1Q 2018 RESULTS IN OUR WEB PAGE MI 2018 3 months Presentation Addenda Press Release Recorded conference audiocast Financial report Analyst pack Engie Energía Chile Presentation to Investors - 1Q 2018 43 ENGIC#43Disclaimer Forward-Looking statements This presentation may contain certain forward-looking statements and information relating to Engie Energía Chile S.A. ("EECL" or the "Company") that reflect the current views and/or expectations of the Company and its management with respect to its business plan. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like “believe”, “anticipate", "expect", "envisage", "will likely result", or any other words or phrases of similar meaning. Such statements are subject to a number of significant risks, uncertainties and assumptions. We caution that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In any event, neither the Company nor any of its affiliates, directors, officers, agents or employees shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this presentation or for any consequential, special or similar damages. The Company does not intend to provide eventual holders of shares with any revised forward-looking statements of analysis of the differences between any forward-looking statements and actual results. There can be no assurance that the estimates or the underlying assumptions will be realized and that actual results of operations or future events will not be materially different from such estimates. This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without EECL's prior written consent. Engie Energía Chile Presentation to Investors - 1Q 2018 ENGIE 44