Binding Offer

R O C O T O C A P I T A L

TARGET: ENGIE ENERGIA PERU

INTRODUCTION ROCOTO CAPITAL
TRANSACTION OVERVIEW

On April 15, 2021, Rocoto Capital is in charge of elaborating the Binding Offer that the PE firm will carry out on the
common shares issued by EEP.

TARGET OWNERSHIP
ENGIE ENERGIA PERU (EEP)
10%
SECTOR ELECTRIC GENERATION International Power
4% (ENGIE Group)
PEN 4,390 mm
MARKET CAP AFP Prima - Fondo 2
USD 1,201 mm
(Romero Group)
4%
TICKER ENGIEC1 AFP Integra - Fondo 2
5% (SURA Group)
EXCHANGE BVL
AFP Profuturo - Fondo 2
NUMBER OF SHARES 601.37 mm 7% (Scotiabank)
AFP Integra - Fondo 3
LAST CLOSE (14/Abr) PEN 7.30 62% (SURA Group)
AFP Prima - Fondo 3
FX (13/Abr) 3.654 PEN/USD 7% (Romero Group)
EV/EBITDA 6.77X Others

Source: Company, BVL, SUNAT, Team Analysis STRICTLY PRIVATE & CONFIDENTIAL
ESG INVESTMENT SUGGESTED FINANCING IRR ANALYSIS & 2
INTRODUCTION VALUATION SUMMARY
RATIONALE ANALYSIS & RATIONALE EXIT STRATEGY
INTRODUCTION ROCOTO CAPITAL
ENGIE GROUP: A GLOBAL REFERENCE IN LOW CARBON ENERGY AND SERVICES

FOCUSED ON FOUR GLOBAL BUSINESS LINES, 20 COUNTRIES, 30 URBAN AREAS AND 500 GLOBAL CLIENTS
Client solutions Networks Renewables (NCR)(1) Thermal
Unique integrated solutions to Upstream presence in the gas Generation and marketing of Reduction of thermal capacity
support clients in the zero- and electricity supply chain electricity from all renewable through CAPEX Plan 2019-2021:
carbon transition (hydrogen, natural gas and energy sources €12bn & 9GW in renewables
4,600 employees 5,200 employees
119,350 employees biogas)
€1.7bn EBITDA €1.8bn EBITDA
€21bn in revenues in 2019 22,500 employees
€2.7bn in revenues in 2019 €4.0bn in revenues in 2019
€1.8bn EBITDA €6.6bn in revenues in 2019 26.9GW of renewable energy 52.7GW of natural gas capacity
€4.0bn EBITDA capacity installed

REVENUE BREAKDOWN EBITDA BREAKDOWN CAPACITY BREAKDOWN LATAM PRESENCE

7% 6% 4% 2%
5% 19% 12% 7%
6% 14,300 employees
5%
6%
€60.6bn €10.4bn 97 GW
55%
27% €5.3bn revenue
61%
78%
19.7GW installed
North America Asia & Africa Europe North America Asia & Africa Natural Gas Renewables Other capacity and 1.1GW
Oceania Latin America
Europe Oceania
Nuclear Coal under construction
Latin America

Source: ENGIE GROUP. Notes: (1) NCR stands for Non-Conventional Renewable (solar, wind, etc. except for hydro) STRICTLY PRIVATE & CONFIDENTIAL
ESG INVESTMENT SUGGESTED FINANCING IRR ANALYSIS & 3
INTRODUCTION VALUATION SUMMARY
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INTRODUCTION ROCOTO CAPITAL
ENGIE AT A GLANCE
COMPANY DESCRIPTION FINANCIAL RESULTS & AWARDS 2020

DIVERSIFIED MATRIX EBITDA AWARDS

2%10% US$ 227MM MERCO 47 in the Top 100 of Companies with the
Best Responsibility and Corporate Governance.
44% 2.5 NET REVENUE
GW 39%
1st place in the Energy Sector.
Good corporate governance index Lima Stock Exchange
US$ 87.9MM
5%

Yuncan (2005)
Solar Hydro KEY PLAYER IN THE ELECTRICITY GENERATION SECTOR
Gas Carbon
• Hidro 134MW
Dual fuel
Thermo Matrix (78%)
Quitarasca (2015)
MARKET SHARE
• Hidro 114MW
OPERATIONS INSTALLED CAPACITY GENERATION
Clhilca Complex
• Chilca Uno (2016-2012) 852
MW-Gas natural
8 Operating plants
• Chilca Dos (2016) 111MW-Gas
natural 18% 13%
2,496 MW Installed capacity 32% 13%
Ilo Complex 13.3 45%
• Ilo41 (2016,Nodo)-610 MW Fuel
• Ilo (2013, Reserva fría)-500MW Fuel Renewable pipeline GW 20%
• Ilo21 (2000) 135 MW- 1,064 MW under development 7%
15%
Intipampa 23% 14%
• Solar 40MW (2018)
Renewable energy
Source: SEIN, ENGIE
1,360 GWh(1) production
Notes: (1) As of 2020 STRICTLY PRIVATE & CONFIDENTIAL
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INTRODUCTION ROCOTO CAPITAL
3 SCENARIOS SNAPSHOT

The team developed 3-tiered risk/return scenarios. They all meet the PE requirements in terms of ESG & IRR.

Risks IRR/ESG PE Role

Scenario 1 (S1): Green-Pipeline development - • IRR ~26.4%(2), ESG • Support the

S1 •The Private Equity Investor (PEI) helps to launch the company's current green
pipeline, including the San José Solar Power Plant (in the environmental study
stage), for a total of 750MW within the next 5 years
• Related to
ambitious RER
projects feasibility
improvements
mainly related to
lower fuel
emissions
financing of the
strategy, to achieve
the expected
organic growth

• S1 + greater effort
• S1 + greater • IRR ~ 27.4%(2),
Scenario 2 (S2): Additional green developments in financing extra

S2
reliance on green slightly
•S1 + PEI also helps to launch other green pipeline that the company currently pipeline and turn
energy sources improvements in
has in its portfolio for 250MW (total of 1,000MW) within the next 5 years. the installed in
(typically offer low ESG terms due to
contracted
load factors) extra NCR 250MW
capacity

• S2 + related to the • S2 + extra effort

Scenario 3 (S3): Chilca Park • Higher expected
ability to carry out (hands-on PE) to

S3
IRR. 100% green

+
•S2 + PEI also takes an active role in M&A operations focused on the Chilca Thermal M&A processes create synergies
Park, so that the company can acquire other plants in the first 3 years, operate efficient
and create and close proposed
them, create synergies and sell these thermal assets at a premium at the end of the generation matrix
5 years, staying with a 100% green efficient generation matrix(1). synergies deals

Source: Company, Team Analysis, Osinergmin

Notes: (1) The company would still have 1,110MW of thermal plants contracted as Cold Reserves (they do not generate power for most of the year)
(2) Expected IRR depending on multiple factors, such as entry price, exit price, trade leverage level, etc. STRICTLY PRIVATE & CONFIDENTIAL
ESG INVESTMENT SUGGESTED FINANCING IRR ANALYSIS & 5
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INTRODUCTION ROCOTO CAPITAL
S1: GREEN-PIPELINE DEVELOPEMENT VS S2: ADDITIONAL GREEN DEVELOPEMENTS

Both scenarios meet PE requirements in terms of ESG and IRR, one more ambitious than the other, mainly in ESG terms

S1 S2
(MW) (GWh) (MW) (GWh)
3 360 12 048
3 087 10 731
248 1 457
2 496 248 Hydro 1 457 2 496 Hydro
963
248 963 248 Gas
Gas 6 055 - 6 055 6 251
Installed Capacity & 963 -
Carbon 1 326
6 251 963
1 110 Carbon 1 326
135 1 110 135 - 64
Annual Energy Generation 1 110
Cold Reserves
4 589
- 64
1 110 1 039
Cold Reserves
4 589 4 276
766 2 959 Green
40 Green 10 33 97 40 10 33 97
2020 2025E 2020 2025E 2020 2025E 2020 2025E

CapEx for Expans(1) & US$ 626 mm for Expans US$ 823 mm for Expans
Maintenance(2) US$ 14.5 mm per-year for maintenance US$ 22 mm per-year for maintenance

Expected IRR Range(3) & IRR: 17.2% - 34.3%, Expected: 26.4% IRR: 15.3% - 30.6%, Expected: 27.4%
ESG Balance 766 MW & 3.96 TWh Green-projects 1,039 MW & 4.28 TWh Green-projects
The level of dependence on electricity generation from renewable The level of dependence on green electricity generation would
PE Role & sources would go from the current 24% (22% hydro, 2% NCR) to reach 48% (12% hydro, 35% NCR). PE's role extends to
Risks Related 41% (14%, 28%), which by their nature are less reliable sources. commercial activities to ensure that installed capacity is
The role of the PE is almost entirely limited to financing converted to contracted capacity at Engie's historical 1.32x ratio(4)
Source: Team Analysis, Company, MINEM, Osinergmin
Notes: (1) Considering that around 140 mm have already been amortized for the PL and HQPP projects. (2) Calculated as PL: 6.5, HQPP: 6.5, SJ: 2.5, Other NCR projects: 7.5. (3) Range based on two
drivers: the share's exit price (US$2.31-4.15) and the leverage level of the trade (35-50%), the expected IRR is calculated with US$3.84 and 45%, respectively. (4) Calculated as the last 3-years average
commercial contracted capacity divided by the installed capacity ex-cold reserves

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INTRODUCTION ROCOTO CAPITAL
S3: ACQUIRE CHILCA’S THERMOELECTRIC PLANTS
LIMA - PERÚ POTENTIAL SYNERGIES
FENIX (COLBUN)
Generation capacity: 570 MW • Location near to the Camisea gas pipeline and the National Interconnected
Energy resource: NG (Camisea) System, allowing energy to be generated at efficient costs.
Technology: Combined Cycle
• Produce more energy without paying for additional fuel (managing to achieve a
STO. DGO. DE LOS OLLEROS (TERMOCHILCA) more efficient use of the Take-or-Pay contracts).
Generation capacity: 300 MW
Energy resource: NG (Camisea)
• Reduction of plant operators due to the easy handling of thermoelectric plants.
Technology: Combined Cycle
• Lower maintenance costs and less water use.
KALLPA – LAS FLORES (INKIA)
Generation capacity: 1063 MW • Less emission of pollutants.
Energy resource: NG (Camisea)
Technology: Combined Cycle
• Plants do not depend on the weather so they can be used at any time.

RESTRICTIONS FOR FORECASTING

CHILCA Several Key Private

Assumptions Information

• Assumptions of Tickets to which • Financial Statements

the deals will be executed will • Operating processes of the
skew the model. companies involved
• Difficult to estimate transaction (synergies)
processes and schemes

Source: Sistema Eléctrico Nacional, Termochilca, KALLPA

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ESG INVESTMENT RATIONALE
SUSTAINABLE DEVELOPMENT
ENVIRONMENTAL
Corporate Strategy focused on contributing to
a carbon neutral economy.
1.064 GW of sustainable energy under
development (42% of current capacity) to
foster a green transition.
Integrates the ISO 14001 certification
(environmental risk management) in its
internal management policies.
Comprehensive waste disposal and recovery
systems, and fully monitoring of carbon and
water footprint.
Source: SEIN, ENGIE, Team Analysis
ESG INVESTMENT
INTRODUCTION
RATIONALE
SOCIAL
Detailed procedures for dialogue and review of
stakeholder needs, in order to fully reflect
them in all the company's activities.
Diversity policy that promotes female talent
through programs such as “Women in Energy”
and efforts for reducing the gender wage gap.
Better laboral conditions: consistent reduction
in occupational accident indicators and
multiple internal training programs for young
people, such as “Leadership Way”, “Shadow
ExCom” and “Young Talent Engie”.
More than 46 thousand beneficiaries of social
programs during 2020 (with a S/ 1,45 million
investment) and 50 thousand given Covid-19
support.
SUGGESTED FINANCING
VALUATION SUMMARY
ANALYSIS & RATIONALE
ROCOTO CAPITAL
GOVERNANCE
The company’s corporate management has
been recognized by multiples institutions for 3
consecutive years:
- Engie is part of the Good Corporate
Governance Index (IBGC) of the Lima Stock
Exchange
- Having the MERCO companies' recognition
as the company with the best corporate
reputation and practices of the energy
sector.
Solid compliance, anti-corruption and conflict
of interest management systems including in
the decision-making process
STRICTLY PRIVATE & CONFIDENTIAL
IRR ANALYSIS & 8
EXIT STRATEGY
 ESG INVESTMENT RATIONALE ROCOTO CAPITAL
ESG INDICATORS AND HIGH POTENTIAL DEVELOPMENT
Engie is the 2nd largest participant in Current projects will put Engie among RERs Benefits
Peru's solar energy market with 44.5 the largest producers of Non- • Lower greenhouse gas
MW of installed capacity. Conventional RER in the country, emissions
Average time
considering industry projects on • Positive externalities.
to start up RER development. • Lower variable cost in relation
centrals
according to to the substitute.
In upcoming (medium term)
type of source
(Avg. Years) 704 MW wind and solar energy
generation projects
•

•
Less social conflicts.
Rapid implementation.

High ESG transformation and development potential for multiple scenarios

ENGIE RER Installed Capacity (% of total Engie installed capacity) ENGIE RER Power Generation (% of total Engie power generation)
60% 54% 99%
2020 E1 E2 E3 100% 2020 E1 E2 E3
50% 43%
80% 74%
38%
40%
32% 31% 60% 48%
30% 24% 41%
40% 35%
20% 28%
12% 21%
10% 20%
2% 1%
0% 0%
Total RER Installed Capacity Non-Conventionarl RER Installed Capacity Total RER Generation Non-Conventional RER Generation

Source: SEIN, ENGIE, Team Analysis STRICTLY PRIVATE & CONFIDENTIAL

ESG INVESTMENT SUGGESTED FINANCING IRR ANALYSIS & 9
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VALUATION SUMMARY ROCOTO CAPITAL
FOOTBALL FIELD CHART

Main Analyst We applied the following criteria selection: Deals (8.85x & 15.62x
prices taken into -Generation Activities EV/EBITDA):
consideration: -Thermo-power plants - Inkia's acquisition of Details
-Avoid conglomerate Kallpa and Samay In
Inteligo: $2.35 -Information and forecast available from EdP. The
Larrain: $2.25 Chosen peers: - Peruvian Opportunity Next
Kallpa: $2.18 - AES Gener (Chile) Company IPO Slides…
Credicorp: $2.09 - Engie Energía (Chile) acquisition of Luz del
Average: $2.22 - Colbun (Chile) Sur SAA
-Engie Brasil Energía (Brasil)
$7

$6 $5.44

$5

$4
$3.14 $3.04
$3 $2.61
$2.35 $2.19
$2 $2.78 $2.70
$2.09
$1 $1.52 $1.47 $1.67

$0
Analyst Consensus Trading Comps Trading Comps Deal Comps DCF 52 wk hi/lo
(EV/EBITDA1Y) (EV/EBITDA2Y)
Suggested price

30% x 2.22 20% x 2.01 20% x 2.10 10% x 2.78 20% x 2.70 US$ 2.31

Source: Company, Team Analysis, Credit Ratings STRICTLY PRIVATE & CONFIDENTIAL
ESG INVESTMENT SUGGESTED FINANCING IRR ANALYSIS & 10
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DCF ANALYSIS ROCOTO CAPITAL
REVENUES BREAKDOWN

Expected growth in almost all business lines, mainly due to the beginning of large contracts with free clients and the start
of green projects for 726MW (HQPP, PL & SJ)
ENGIE Revenue Breakdown S2: 758
Core ENGIE Income Distribution (energy & power) 2025e
5-Yr CAGR
7.30% 12%
700 642 645 686 1%
620 599
577 574 35%
600 521 536 534
482
500 47%
400
300
65% 40%
200
100
-
2015 2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E

Energy sales Power sales Transmission fee Compensations Others Energy sales Power sales Free Clients Regulated Clients COES Cold Reserves

Free Clients Regulated Clients Cold Reserves New Green Projects (S1)
Commercial Operative Almost EBITDA PL, HQPP & SJ

4 business US$ 301 MM US$ 247 MM US$ 83 MM ~ US$ 77 MM

2025e

5 Yr CAGR: 12.70% 5 Yr CAGR: 2.77% 10 Yr CAGR: 0.00% -

lines that
1,315 MW 996 MW 1,110 MW 766 MW (installed)
work
7,262 GWh 4,176 GWh - 2,385 GWh
differently
41 US$/MWh 59 US$/MWh 8,543 US$/MW-Month (ILO 31) 41 US$/MWh
68% load factor 61% load factor 6,149 US$/MW-Month (ILO 41) 68%

Source: ENGIE, COES, OSINERGMIN, Team Analysis STRICTLY PRIVATE & CONFIDENTIAL
ESG INVESTMENT SUGGESTED FINANCING IRR ANALYSIS & 11
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DCF ANALYSIS ROCOTO CAPITAL
CAPEX FOR EXPANSIONS FOR THE GROWTH SUPPORT

ENGIE announced in 4Q20 that it expects its PL & HQPP projects to be ready to start operations in 1Q23 and 4Q23,
respectively
San José
Project starts
Nominal Contracted Power, Free vs Regulated (MW)
(144 MW)

CapEx Expans (US$ MM) Hanaqpampa

Project starts
(300 MW)
- Quitaracsa
(114 MW), Punta Lomitas
S2: 282 Project starts 2 458 S2: 2 786
- NE Ilo 41) 2 500 2 292
(610 mw) 216 (260 MW)
2 155
- Chilca 2 2 059 2 059
(111MW) 181 2 000 1 857 1 874
1 744 1 087 S2: 1 238
996
Intipampa 1 553 1 527 884
(40 MW) S2: 198 1 467 939 920
132 1 500
897 939
823
111 609
851 704
S2: 137 1 000
72
63 1 271 1 296 1 371 S2: 1 549
54 1 120 1 139
40 500 918 921 960 935
39 763
33 702
22
-
2015 2016 2017 2018 2019 2020 2021e 2022e 2023e 2024e 2025e
2015 2016 2017 2018 2019 2020 2021e 2022e 2023e 2024e 2025e Free Clients Regulated Clients

Source: ENGIE, Team Analysis, COES, OSINERGMIN STRICTLY PRIVATE & CONFIDENTIAL
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DCF ANALYSIS ROCOTO CAPITAL
FREE CLIENTS

Back to the golden age…

Free Clients Income (US$ MM) Quellaveco/Gle Free Clients Contracted Power (MW)
ncore mining HQPP Project
Cerro Verde project starts starts
Southern & Las PL Project
PPA starts (189 MW) (300 MW)
Bambas (mining starts
(170 MW) (260 MW)
projects) ends
Income % growth SJ Project starts
(144 MW)
333 S2: 349 Curent PPAs New PPAs
25% 312
293 1 188 1 211 1 229
281
257 16% 272 1 047 1 065
241 13% 897 897
205 208 207 861 864
8% 7% S2: 19% 716
165 658

-20%

2015 2016 2017 2018 2019 2020 2021e 2022e 2023e 2024e 2025e 2015 2016 2017 2018 2019 2020 2021e 2022e 2023e 2024e 2025e

Free Clients Load Factor (%) Free Clients Price Outlook (US$/Mwh)
83%
78
69% 70% 68% 68% 68% 64
62% 60% 62% 49 46
39 39 45 44 42 42 41
50% 52%

2015 2016 2017 2018 2019 2020 2021e 2022e 2023e 2024e 2025e
2015 2016 2017 2018 2019 2020 2021e 2022e 2023e 2024e 2025e

Source: ENGIE, Team Analysis, OSINERGMIN STRICTLY PRIVATE & CONFIDENTIAL

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DCF ANALYSIS ROCOTO CAPITAL
REGULATED CLIENTS (Electric Distribution Companies)

Upcoming contract expiration (2024) and prices are expected to fall, in line with marginal cost (anchor cost)

Regulated Clients Income (US$ MM) Regulated Clients Contracted Power (MW)
HQPP Project starts
Bids expiration, Price PL Project (300 MW)
negociation Curent PPAs New PPAs
Flight of regulated clients to the starts
free market due to changes in
Income % growth (260 MW)
regulation SJ Project starts
1 154
(144 MW)
S2: 303 1 035
291 11% S2: 1 304
9% S2: 23% 939 939 939 920
268 897
246 851 823
228 221 217 2285% 226 221
205 209 704
-2% -1% 609
-2%

2015 2016 2017 2018 2019 2020 2021e 2022e 2023e 2024e 2025e 2015 2016 2017 2018 2019 2020 2021e 2022e 2023e 2024e 2025e

Free Clients Load Factor (%) Regulated Clients Price Outlook (US$/Mwh)
Bids expiration, Price
negociation
88% 90%
67
65 65 64
64 64
64% 62
59% 62% 60 60
57% 53% 54% 55% 56% 57% 58
56

2015 2016 2017 2018 2019 2020 2021e 2022e 2023e 2024e 2025e 2015 2016 2017 2018 2019 2020 2021e 2022e 2023e 2024e 2025e

Source: ENGIE, Team Analysis, OSINERGMIN STRICTLY PRIVATE & CONFIDENTIAL

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DCF ANALYSIS ROCOTO CAPITAL
COGS IMPACTS

Savings in the purchase of fuels due to lower thermal generation, offset by higher purchases of energy and power by the
matrix that depends more on its source of generation (wind and sun, respectively)

2020 COGS Breakdown (%) 2025e COGS Breakdown (%)

0% 0% 1%
0%

Fuel consumption
Transmission fees 21%
25%
Energy and power purchases
Staff charges
40%
Supplies and spare parts
46%
Licensing
Electric companies contribution US$ 290 MM 6% US$ 388 MM
5%
Maintenance 2%
Other generation expenses 2%
1% 0%
Depreciation 2% 1%
7%
Amortization 0% 7%
Others 1% 2%
10% 3% 18%

Source: ENGIE, Team Analysis STRICTLY PRIVATE & CONFIDENTIAL

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MARGINS CHECK

Slight improvement in margins and strong debt coverage

Profitability Margins (%) Solvency Margins (x times)

60%
56% S2: 53% 12.00x
54% 10.50x
55% 52% 52% 52%
50% 50% 9.66x 9.66x 9.66x 9.66x 9.66x
49% 48% 10.00x
50% 48%
47%
7.68x
45% 8.00x 7.13x
6.66x
6.05x 6.18x
40% 6.00x

35% 38%
36% 36% 4.00x 3.03x 3.31x
34% S2: 39% 2.66x 2.70x 2.51x
30% 33% 33% 2.22x 1.90x 1.90x 1.90x 1.90x 1.90x
32% 31%
29% 2.00x
25% 28%
27%
0.00x
20%
2015 2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E
2015 2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E
Debt to EBITDA Net Debt to EBITDA
EBITDA Margin Gross Margin EBIT Margin EBT Margin
Interest Coverage EBITDA / Gastos financieros

Source: Company, Team Analysis, Credit Ratings STRICTLY PRIVATE & CONFIDENTIAL
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FINANCING ANALYSIS & RATIONALE ROCOTO CAPITAL
SUGGESTED PURCHASE PRICE & FINANCING CRITERIA

LBO BASE ACQUISITION PRICE FINANCING CRITERIA

Conservative proposed price.
3.5X EBITDA
Engie current
Proposed price per share Price (US$) EV / EBTIDA Weight =
debt covenant
DCF Target price 2.70 8.66x 20.0%
Max. US$ 304 MM of new debt
Trading Comps EV/EBITDA 1Y 2.01 6.90x 20.0%
Trading Comps EV/EBITDA 2Y 2.10 7.14x 20.0%
Analyst Consensus 2.22 7.43x 30.0%
Trans. Comp. Inkia 2.78 8.85x 10.0% Operation Debt
Scenario based
W. Average 2.31 7.65x 100% Amount
BASE PURCHASE PRICE
Average of multiple
Proposed price per share US$ 2,31 valuation methods
Engie Equity Value (100%) US$ 1 386 MM Cost of Debt Average Long Term Debt Rate
4.54%
Equity Purchase Price (30%) US$ 415,9 MM
Existing Debt (2020) US$ 525,3 MM
Available Cash (2020) US$ 100 MM
Use of Funds Equity Buyout and Financing
Enterprise Value US$ 1 812 MM
Proposed entry Company Projects
EV / EBITDA LTM 7,65x multiple

Source: Team Analysis STRICTLY PRIVATE & CONFIDENTIAL

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SUGGESTED PURCHASE PRICE & FINANCING CRITERIA

Multiple possible entry and exit prices for each scenario

1st SCENARIO 2nd SCENARIO
POSSIBLE PURCHASE PRICES POSSIBLE PURCHASE PRICES
Min. comparable Current market Proposed Max. comparable Min. comparable Current market Proposed Max. comparable
Description Description
multiple price price multiple multiple price price multiple
Implied Implied
6,90x 7,21x 7,65x 8,85x 6,90x 7,21x 7,65x 8,85x
EV/EBITDA EV/EBITDA
Purchase price US$ 2,01 US$ 2,13 US$ 2,31 US$ 2,75 Purchase price US$ 2,01 US$ 2,13 US$ 2,31 US$ 2,75

POSSIBLE EXIT PRICES POSSIBLE EXIT PRICES

Current Market Target Current Market Current Market Proposed
Description Proposed Price Description Proposed Price Target Price
Price Price Multiple Multiple multiple
Implied Implied
5,07x 5,37x 6,05x 7,21x 4,92x 5,54x 7,21x 7,67x
EV/EBITDA EV/EBITDA
Exit price US$ 2,13 US$ 2,31 US$ 2,70 US$ 3,38 Exit price US$ 2,31 US$ 2,72 US$ 3,84 US$ 4,15

DEBT STRUCTURE OF BASE SCENARIO 1 DEBT STRUCTURE OF BASE SCENARIO 2

% of debt-financed Equity 55% % of debt-financed Equity 45%
Debt for Equity buyout US$ 228,7 MM Debt for Equity buyout US$ 187,5 MM
Debt for company projects US$ 74,8 MM Debt for company projects US$ 116,1 MM

Source: Team Analysis STRICTLY PRIVATE & CONFIDENTIAL

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 IRR ANALYSIS ROCOTO CAPITAL
IRR AND CASH RETURN SENSITIVITY ANALYSIS
Scenario 1: Engie can support the LBO debt repayment up to a 55% leverage level given the proposed entry price. At that leverage
model, the 25% IRR goal can be met most of the time. Lower entry prices allow to take more levereage and increase the potential
IRR.
1st SCENARIO
PRICES AND MULTIPLES IRR SENSITIVITY ANALYSIS CASH RETURN SENSITIVITY ANALYSIS
Entry price Exit price Entry Exit LBO Debt Proportion LBO Debt Proportion
(US$) (US$) multiple multiple 45% 50% 55% 60% 45% 50% 55% 60%
2.01 2.13 6.90x 5.07x 21.34% 23.43% 25.74% 28.46% 2.45x 2.67x 2.93x 3.26x
2.01 2.31 6.90x 5.37x 22.92% 25.04% 27.39% 30.15% 2.61x 2.84x 3.13x 3.48x
2.01 2.70 6.90x 6.05x 26.20% 28.40% 30.83% 33.69% 2.97x 3.24x 3.57x 3.98x
2.01 3.38 6.90x 7.21x 31.09% 33.40% 35.94% 38.95% 3.59x 3.92x 4.32x 4.83x
2.13 2.13 7.21x 5.07x 19.56% 21.54% 23.80% 26.49% 2.30x 2.50x 2.74x 3.05x
2.13 2.31 7.21x 5.37x 21.12% 23.14% 25.44% 28.17% 2.45x 2.66x 2.93x 3.26x
2.13 2.70 7.21x 6.05x 24.38% 26.47% 28.86% 31.69% 2.79x 3.04x 3.34x 3.72x
2.13 3.38 7.21x 7.21x 29.24% 31.43% 33.94% 36.92% 3.37x 3.68x 4.05x 4.52x
2.31 2.13 7.65x 5.07x 17.20% 19.11% 21.34% 23.92% 2.11x 2.29x 2.51x 2.79x
2.31 2.31 7.65x 5.37x 18.75% 20.69% 22.97% 25.59% 2.25x 2.44x 2.68x 2.98x
Base price 2.31 2.70 7.65x 6.05x 21.97% 23.98% 26.36% 29.08% 2.56x 2.79x 3.06x 3.41x
(proposed) 2.31 3.38 7.65x 7.21x 26.77% 28.89% 31.39% 34.27% 3.10x 3.38x 3.72x 4.15x
2.78 2.13 8.85x 5.07x 11.85% 13.63% 15.58% 17.72% 1.71x 1.85x 2.02x 2.23x
2.78 2.31 8.85x 5.37x 13.46% 15.29% 17.28% 19.45% 1.83x 1.98x 2.17x 2.40x
2.78 2.70 8.85x 6.05x 16.55% 18.46% 20.54% 22.79% 2.09x 2.27x 2.49x 2.76x
2.78 3.38 8.85x 7.21x 21.19% 23.22% 25.41% 27.78% 2.53x 2.75x 3.03x 3.37x

Not viable because of debt and cash constraints

Source: Team Analysis STRICTLY PRIVATE & CONFIDENTIAL
ESG INVESTMENT SUGGESTED FINANCING IRR ANALYSIS & 19
INTRODUCTION VALUATION SUMMARY
RATIONALE ANALYSIS & RATIONALE EXIT STRATEGY
 IRR ANALYSIS ROCOTO CAPITAL
IRR AND CASH RETURN SENSITIVITY ANALYSIS

Scenario 2: Engie can support the LBO debt repayment up to a 45% leverage level given the proposed entry price. At that leverage
model, the 25% IRR goal can be met most of the time. Higher exit prices could be archieved given the additional investments made
in this Scenario.
2nd SCENARIO
PRICES AND MULTIPLES IRR SENSITIVITY ANALYSIS CASH RETURN SENSITIVITY ANALYSIS
Entry price Exit price Entry Exit LBO Debt Proportion LBO Debt Proportion
(US$) (US$) multiple multiple 35% 40% 45% 50% 35% 40% 45% 50%
2.01 2.31 6.90x 4.92x 16.88% 18.46% 20.20% 22.24% 2.14x 2.30x 2.48x 2.69x
2.01 2.72 6.90x 5.54x 20.18% 21.82% 23.64% 25.77% 2.46x 2.64x 2.85x 3.11x
2.01 3.84 6.90x 7.21x 27.58% 29.38% 31.37% 33.69% 3.31x 3.56x 3.86x 4.22x
2.01 4.15 6.90x 7.67x 29.34% 31.17% 33.20% 35.57% 3.55x 3.82x 4.14x 4.52x
2.13 2.31 7.21x 4.92x 15.34% 16.87% 18.60% 20.58% 2.01x 2.15x 2.32x 2.52x
2.13 2.72 7.21x 5.54x 18.60% 20.21% 22.01% 24.09% 2.31x 2.48x 2.67x 2.91x
2.13 3.84 7.21x 7.21x 25.94% 27.70% 29.67% 31.95% 3.11x 3.35x 3.63x 3.96x
2.13 4.15 7.21x 7.67x 27.68% 29.48% 31.49% 33.82% 3.34x 3.59x 3.89x 4.25x
2.31 2.31 7.65x 4.92x 13.22% 14.70% 16.42% 18.32% 1.84x 1.97x 2.12x 2.30x
2.31 2.72 7.65x 5.54x 16.45% 18.00% 19.81% 21.80% 2.12x 2.27x 2.45x 2.66x
Base price 2.31 3.84 7.65x 7.21x 23.70% 25.40% 27.39% 29.58% 2.86x 3.07x 3.32x 3.63x
(proposed) 2.31 4.15 7.65x 7.67x 25.42% 27.16% 29.18% 31.43% 3.06x 3.29x 3.56x 3.89x
2.78 2.31 8.85x 4.92x 8.63% 10.03% 11.59% 13.34% 1.50x 1.61x 1.72x 1.87x
2.78 2.72 8.85x 5.54x 11.78% 13.26% 14.91% 16.76% 1.73x 1.85x 2.00x 2.16x
2.78 3.84 8.85x 7.21x 18.83% 20.49% 22.32% 24.37% 2.35x 2.52x 2.73x 2.97x
2.78 4.15 8.85x 7.67x 20.50% 22.20% 24.07% 26.17% 2.52x 2.71x 2.93x 3.19x

Not viable because of debt and cash constraints

Source: Team Analysis STRICTLY PRIVATE & CONFIDENTIAL
ESG INVESTMENT SUGGESTED FINANCING IRR ANALYSIS & 20
INTRODUCTION VALUATION SUMMARY
RATIONALE ANALYSIS & RATIONALE EXIT STRATEGY
IRR ANALYSIS & EXIT STRATEGY ROCOTO CAPITAL
GAME CHANGERS

S3 Substantially offset by more

efficient generation that leaves
higher margins

• Carry out M&A processes, managing every thermal

-
S2

LIKELIHOOD
Invest in exploration of asset buy/sell deal with enough margin fot be able to
new resources create synergies in the mid-term

S1 Diversify the NCR matrix

Take advantage of
new tech developements
with high potential • 100% dependence on green efficient generation matrix

• Even greater exposure to marginal energy costs in the spot market or facing a lower plant factor than
initially expected in preliminary technical studies
• Increases in the spot cost of electricity due to the current controversy over the declaration of gas prices by thermal power plants, which would harm over-
contracted power generators (Engie case)

• Greater dependence on unstable natural factors, such as the “El Niño” phenomenon(1) that can affect the resources involved in a certain kind of generation,
worsening the load factor of the NCR plants
• NCR projects feasibility due to unexpected variation in the natural source of energy generation that can translate into greater purchases of energy in the system,
increasing exposure to the energy spot price to cover the contracted demand

- IMPACT +
Source: ENGIE, Team Analysis
Notes: (1) e.g., in 2016 due to the El Niño phenomenon, the country's hydro production contracted, and several diesel-fired power plants operated at high costs

ESG INVESTMENT SUGGESTED FINANCING IRR ANALYSIS & 21

INTRODUCTION VALUATION SUMMARY
RATIONALE ANALYSIS & RATIONALE EXIT STRATEGY
EXIT STRATEGY ROCOTO CAPITAL
MANY PLAYERS AS POTENTIAL ESG INVESTORS IN THE MID-TERM

Previously shown exit prices depend upon many factors of the exit strategy

Potential Acquirers Examples

Engie Group -

Local pension funds Integra, Profuturo, Prima, Habitat

I Squared Capital (Kallpa), Sigma del

ESG and Energy Investment Funds Perú (Fenix), AES Energy
(Termochilca)
Enfoca, Effic Partners, Faro Capital,
Local Private Equity firms
etc.
Enel Group, Colbun (Fenix), Kallpa
Competitors
(Inkia)

Source: Team Analysis, SMV STRICTLY PRIVATE & CONFIDENTIAL

ESG INVESTMENT SUGGESTED FINANCING IRR ANALYSIS & 22
INTRODUCTION VALUATION SUMMARY
RATIONALE ANALYSIS & RATIONALE EXIT STRATEGY
ESG Investment
R O C O T O C A P I T A L

Bankers:
Daniel Vallenas Yrigoyen
dvallenasy@gmail.com

David Ramirez Lizares

dramirezlizares@gmail.com

Luciana Acosta Catacora

lucianaacostac2206@gmail.com

Vanesa Espinoza Vigil

vanesaespinoza348@gmail.com

Fiorella Lombardi Mendez

fiorellalombardim@gmail.com
23
ESG Investment
R O C O T O C A P I T A L

ANNEXES

24
ANNEX 1 ROCOTO CAPITAL
FREE CLIENTS INCOME MODELLING

Free clients Summary 2015 2016 2017 2018 2019 2020 2021e 2022e 2023e 2024e 2025e
Technical Contracted power MW 658 861 716 864 897 897 1,047 1,065 1,188 1,211 1,229
Power adjustment ratio % 107% 107% 107% 107% 107% 107% 107% 107% 107% 107% 107%

Commercial Contracted power MW 702 918 763 921 960 935 1,120 1,139 1,271 1,296 1,315
% growth % 123% 31% -17% 21% 4% -3% 20% 2% 12% 2% 1%

Load factor % 62% 69% 83% 70% 68% 49% 51% 60% 63% 67% 68%

Energy consumption GWh 3,602 5,170 5,222 5,295 5,306 3,860 4,637 5,528 6,509 7,023 7,262
% growth % 45% 44% 1% 1% 0% -27% 20% 19% 18% 8% 3%

Implicit Price (energy and power) $ /MWh 78 64 49 39 39 43 45 44 42 42 41

% growth % -14% -17% -24% -21% 1% 9% 4% -2% -4% 0% -1%

Income $ MM 281 333 257 205 208 165 207 241 272 293 301
% growth % 24% 19% -23% -20% 1% -20% 25% 16% 13% 8% 3%

STRICTLY PRIVATE & CONFIDENTIAL

ANNEX 2 ROCOTO CAPITAL
REGULATED CLIENTS INCOME MODELLING

Regulated clients 2015 2016 2017 2018 2019 2020 2021e 2022e 2023e 2024e 2025e
Technical Contracted power MW 682 488 564 660 719 753 753 737 709 799 799
Power adjustment ratio % 125% 125% 125% 125% 125% 125% 125% 125% 125% 125% 125%

Commercial Contracted power MW 851 609 704 823 897 939 939 920 884 996 996
% growth % -13% -28% 16% 17% 9% 5%

Load factor % 88% 90% 64% 57% 53% 54% 55% 56% 57% 59% 61%

Energy consumption GWh 5,182 3,805 3,137 3,228 3,294 3,507 3,572 3,550 3,462 4,083 4,176
% growth % 3% -27% -18% 3% 2% 6%

Implicit Price (energy and power) $ /MWh 56 60 65 65 67 62 64 64 64 60 59

% growth % -1% 7% 9% -1% 4% -8%

Income $ MM 291 228 205 209 221 217 228 226 221 246 247
% growth % 2% -22% -10% 2% 6% -2%
 ANNEX 3 ROCOTO CAPITAL
PEERS SELECTION FOR TRADING COMPS
12 000 LEGEND
Américas
GENERATION

10 000 DISTRIBUTION

INTEGRATED
Market Capitalization (MM USD)

8 000

BRASIL
6 000

CHILE
4 000

2 000
PERÚ
GENERACIÓN
DISTRIBUCIÓN
CHILE
-
0 0.5PERU 1 1.5CHILE 2 2.5
COLOMBIA 3 3.5
BRASIL 4 4.5
ARGENTINA 5

Source: Bloomberg STRICTLY PRIVATE & CONFIDENTIAL

INTRODUCTION DCF TRADING DEAL LBO VALUATION 27
ANALYSIS COMPS COMPS ANALYSIS SUMMARY
ANNEX 4 ROCOTO CAPITAL
PEERS SELECTION FOR TRADING COMPS
Generation capacity Thermoelectric
SELECTION CRITERIA Company Country EV/EBITDA FY1 EV/EBITDA FY2 P/E FY1 P/E FY2
(MW) capacity (%)
Generation
Activities AES Gener SA CHILE 5,226 71% 4.9 6.3 2.5 5.7

Thermo-power Engie Energia

CHILE 2,200 92% 4.6 4.6 7.5 7.0
plants Chile SA

Avoid Colbun CHILE 3,907 50% 6.7 7.2 13.1 19.6

conglomerate
Engie Brasil
BRASIL 10,431 12% 8.6 7.5 12.4 10.6
Information and Energia SA
forecast available
Mean (Multiple chosen to valuation) 6.1 6.3 8.9 10.7

Comparable Multiples EV/EBITDA Engie Energía Perú

15 Historic Multiple chosen
Engie Energia
Colbun
Brasil
7.8
10
P/E 1Y

Engie Energia Chile 7.0

6.6
5 6.3
6.2 6.1
AES Gener SA

0
3 4 5 6 7 8 9 10 2017 2018 2019 2020 2021E 2022 E
EV/EBITDA 1Y
Source: Bloomberg STRICTLY PRIVATE & CONFIDENTIAL
INTRODUCTION DCF TRADING DEAL LBO VALUATION 28
ANALYSIS COMPS COMPS ANALYSIS SUMMARY
ANNEX 5 ROCOTO CAPITAL
PEERS SELECTED

CHILE BRASIL

Colbún S.A. is a company ENGIE BRASIL S.A. is the

AES Gener S.A. is the ENGIE ENERGÍA CHILE S.A.
of Chilean origin dedicated largest private electric
largest thermal generator is the fourth power
to the generation of power producer in Brazil,
and the second largest generator by installed
electrical energy. It has 25 with its own installed
electricity generator in capacity and the third
generation plants in Chile capacity of 10,211 MW in 61
Chile. The company has operator in terms of
and Peru, through which it plants, which represents
operations in Chile, transmission in Chile.
has a total installed around 6% of the country's
Colombia and Argentina, The company has nearly
capacity of close to 3,900 capacity. The company has
with a diversified portfolio 50% market share in
MW distributed in 90% of its installed capacity
of power plants, including generation and transports
different types of in Brasil and operates with
facilities that operate with natural gas and offers
generation technologies. renewable sources of low
coal, natural gas, biomass energy solutions.
Also, has 941 kilometers of gases emission of
and water.
transmission lines greenhouse, such as
hydroelectric, wind, solar
and biomass.

Source: Bloomberg, Bnamericas, Engie Chile, Colbun, Engie Brasil. STRICTLY PRIVATE & CONFIDENTIAL
INTRODUCTION DCF TRADING DEAL LBO VALUATION 29
ANALYSIS COMPS COMPS ANALYSIS SUMMARY
 ANNEX 6
8.85x & 15.62x EV/EBITDA FOR DEAL COMPS
On October 19, 2018 Nautilus Inkia Energy LLC (Inkia) completed the acquisition of
the 25% equity stake in Kallpa Generación S.A. (Kallpa) and Samay I S.A. (Samay)
from Energía del Pacífico S.A. (EdP). Kallpa owns and operates three natural gas
plants and three hydroelectric plants in Peru. They are the 870 MW combined cycle
plant, Peru’s largest power generation facility, the 193 MW Las Flores open cycle
plant and the 192 MW open cycle plat. In addition, Kallpa owns and operates the
following hydroelectric planes: the 557 MW Cerro del Aguila plant, the 266MW
Cañon del Pato plant and the 94 MW Carhuaquero plant. . Samay is a 632 MW
cold-reserve thermoelectric plant located in the southern coast of Peru, which
began to operate in May 2016.
ROCOTO CAPITAL
Peruvian Opportunity Company SAC, dated November 2, 2020, initiated a
Public Offering of to acquire up to 66'622,985 common shares with voting
rights representing the capital stock of Luz del Sur SAA. The main economic
activity of Luz del Sur is the public electricity distribution service in a superior
area on 3,500 km2 of indefinite concession and involving 30 of the most
important districts of Metropolitan Lima and the province of Cañete.
Additionally, it receives income from the use of its electricity transmission
and distribution systems, which corresponds to the energy consumption
billed by other suppliers other than the company itself.

SUMMARY SUMMARY
II. Luz del Sur
Stake 13.68%
I. Inkia
Number of shares 66,622,985
Stake 25.00%
Precio compra 8.535 US$
Deal 342 $ MM
Deal 569 MM US$
Equity Value Luz del Sur 4,156 MM US$
Kallpa Samay Total
EBITDA 2017 271.00 40.00 311 Luz del Sur
EBITDA 2019 307.51 MM US$
Debt 2017 1,049 382 1,431
Debt 2019 657 MM US$
Cash 2017 47 47
Cash 2019 12 MM US$
Equity value 1,368
Equity value 4,156 MM US$
Enterprise Value 2,752
Enterprise Value 4,802 MM US$
EV/EBITDA 2017 8.85x EV/EBITDA 2019 15.62x

Source: Lexlatin, AES Energy, Gestión STRICTLY PRIVATE & CONFIDENTIAL

INTRODUCTION DCF TRADING DEAL LBO VALUATION 30
ANALYSIS COMPS COMPS ANALYSIS SUMMARY