Group activities and presence in Russia 21 February 2017 Albert GRIGORYAN Country Delegate for Russia and Ukraine Head of the Representative Offices in Moscow and Kiev

Chapter 1 Chapter 2 Chapter 3 Chapter 4 CONTENTS Group activities Russia: a major actor in the global energy field Chapter 3 ENGIE in Russia Chapter 4 Company Project ENGIE GROUP PRESENTATION AND ACTIVITIES IN RUSSIA - HIGH SCHOOL OF ECONOMICS 02/21/2017

Group activities ENGIE GROUP PRESENTATION AND ACTIVITIES IN RUSSIA - HIGH SCHOOL OF ECONOMICS 02/21/2017

Group activities Key figures (on January 2016) 154.950 employees around the world (operations in 70 countries) 1,000 researchers and experts at 11 R&D centres €22 billion capex over 2016-2018 €69.9 billion revenues in 2015 02/21/2017 ENGIE GROUP PRESENTATION AND ACTIVITIES IN RUSSIA - HIGH SCHOOL OF ECONOMICS

Group activities A history of ambitious ventures 02/21/2017 ENGIE GROUP PRESENTATION AND ACTIVITIES IN RUSSIA - HIGH SCHOOL OF ECONOMICS

CAPEX program (€22 billion) Group activities A vision for the future : pave the way to the energy revolution Portfolio rotation (€15 billion) Priority to lowest CO₂ options Lower exposure to commodity prices Downstream activites (customers solutions) CAPEX program (€22 billion) Low CO₂ power generation Global networks Customers solutions New organization Development of a new business in emerging technologies Digitalization of the group 02/21/2017 ENGIE GROUP PRESENTATION AND ACTIVITIES IN RUSSIA - HIGH SCHOOL OF ECONOMICS

Russia: a major player in the global energy field ENGIE GROUP PRESENTATION AND ACTIVITIES IN RUSSIA - HIGH SCHOOL OF ECONOMICS 02/21/2017

Russia : a major player in the global energy field The second biggest gas proven reserves Russia holds the second major proven gas reserves in the world after Iran The share of the Russian gas in the global gas proven reserves is about 17,3% In 2016, more than 34% of the gas consumed in Europe was supplied by Russia Sources : BP Statistical Review of World Energy June 2016, Gazprom Export 02/21/2017 ENGIE GROUP PRESENTATION AND ACTIVITIES IN RUSSIA - HIGH SCHOOL OF ECONOMICS

Russia : a major player in the global energy field A key partner for Europe Gazprom Export, the monopoly on natural gas exportations for Russia, has a trend of increase of its exportations Source : Gazprom Export 02/21/2017 ENGIE GROUP PRESENTATION AND ACTIVITIES IN RUSSIA - HIGH SCHOOL OF ECONOMICS

Russia : a major player in the global energy field A key partner for Europe in 2015 More than 32% of the gas consumed in Europe was supplied by Russia Western Europe accounted for 82% of the exports from Russia with 130,52 bcm Eastern and Central Europe accounted for 18% of the exports from Russia 28,51 bcm 22% of ENGIE’s long-term gas supplies in Europe are from Russia in 2016 (ENGIE press release 04/12/2016) Source : Gazprom Export 02/21/2017 ENGIE GROUP PRESENTATION AND ACTIVITIES IN RUSSIA - HIGH SCHOOL OF ECONOMICS

ENGIE in Russia ENGIE GROUP PRESENTATION AND ACTIVITIES IN RUSSIA - HIGH SCHOOL OF ECONOMICS 02/21/2017

ENGIE in Russia A hundred-years-old partnership In the 19th century (till 1917), one of the ancestors of the ENGIE Group, the Société générale de Belgique, was active in the Russian empire throughout subsidiaries operating coal-gas power generation, electricity and telephone networks and also tramways in several cities. 02/21/2017 ENGIE GROUP PRESENTATION AND ACTIVITIES IN RUSSIA - HIGH SCHOOL OF ECONOMICS

Company project ENGIE GROUP PRESENTATION AND ACTIVITIES IN RUSSIA - HIGH SCHOOL OF ECONOMICS 02/21/2017

Company project The task : Market analysis and business development “Empower Russia: structure and evolution of new solutions for generation”: Analyse the structure of the market, its legislation base and the profitability of photovoltaic, micro cogeneration, biomass and decentralized solutions for managing electricity supply to remote areas. The project must present the key actors and define the need for foreign know-how / technology on the market, as well as present possible reform for the new generation sector. The objective is to outline to what extent an international actor on the new generation market can invest in Russia, how, where and with whom. 02/21/2017 ENGIE GROUP PRESENTATION AND ACTIVITIES IN RUSSIA - HIGH SCHOOL OF ECONOMICS

Solving a real life business issue Company project Instructions The political and legislative base must be mapped as well as the implied structure and consequences of the third stage of energy sector development reform. A focus could be made on a specific solution, such as photovoltaic. The objective is to decipher potential niches and partners for potential business development for ENGIE. The presentation must convince the Headquarters in Paris of the viability of the business opportunity as well as the coherence with the company goals and strategy. The team must comprehend three student and at least one foreign and one Russian student. The project language is English. The project will last four months, from March to June. The kick off meeting will take place in March 2016 in the Moscow office of ENGIE. The first midterm meeting will be determined in March. The second midterm meeting will be determined in March. Solving a real life business issue Methodology Evaluation 02/21/2017 ENGIE GROUP PRESENTATION AND ACTIVITIES IN RUSSIA - HIGH SCHOOL OF ECONOMICS

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