Q1 2017 Financial Results

Analyst Presentation Abu Dhabi National Energy Company PJSC (TAQA)

Abu Dhabi, 11 May 2017

Disclaimer

5/10/2017 Abu Dhabi National Energy Company PJSC (TAQA) 1

These materials have been prepared by the Abu Dhabi National Energy Company - TAQA (“Company”).

These materials are for information purposes only and do not constitute a prospectus, offering memorandum or offering circular or an offer to sell anysecurities and are not intended to provide the basis for any credit or any third party evaluation of any securities or any offering of them and should not beconsidered as a recommendation that any investor should subscribe for or purchase any securities. The information contained herein is preliminary as ofthe date hereof, supersedes any previous such information delivered to you and will be superseded by any such information subsequently delivered. Anyinvestor who subsequently acquires any securities must rely solely on any final offering memorandum published in connection with such securities, on thebasis of which alone purchases of or subscription for any securities may be made. In addition, investors should pay particular attention to any sections ofany such final offering memorandum describing any risk factors. The information contained herein is subject to change without notice and pastperformance is not indicative of future results. The Company is under no obligation to update or keep current the information contained herein. No personshall have any right of action (except in case of fraud) against the Company or any other person in relation to the accuracy or completeness of theinformation contained herein.

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Corporate updates

Board of Directors elected at AGM

Al Hajeri re-elected as Chairman

ADWEA consolidates shareholding

S&P updates corporate credit rating

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Q1 results summary

Improvement in realised oil and gas prices

Transformation savings embedded

Steady performance in Power & Water

Oil & Gas volumes impacted by prior capex cuts

EBITDA up 23%, free cash flow up 35%

Net income of AED 77 million(a)

Strong liquidity of AED 12.8 billion

Debt reductions of AED 675 million

(a) Profit attributable to common shareholders

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Commodity price environment

Significant improvement Q/Q

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Crude oil

- Realised oil price up 62% vs Q1 2016

- Supported by OPEC cuts announced in Q4 2016

- Pressured by stronger US production growth, full

inventories, positive supply outlook in other

countries

Natural gas

- Realised gas prices up 57% vs Q1 2016

- Winter price dip due to warmer weather in 2017

- New US export capabilities shrinking inventories

30

40

50

60

2016 2017

Brent WTI

0

2

4

6

2016 2017

Henry Hub AECO NBP

Oil prices ($/bbl)

Gas prices $/mmbtu

Power & Water

Stable production and financial performance

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Power generation (GWh) Continued strong operational performance

- Total power generation 16,413 GWh

- Technical availability at 84.3%, impacted by forced

outages and maintenance

- Equivalent forced outage rate at 2.8%

- Water volumes increase to 57,216 MIG

Stable financials reflect contracted nature of

business

- Revenues at AED 2.7 billion

- EBITDA of AED 1.5 billion

Water desalination (MIG)

59,430 56,584 57,216

Q1 2015 Q1 2016 Q1 2017

15,89817,022 16,413

Q1 2015 Q1 2016 Q1 2017

Oil & Gas

Sustained efficiencies from transformation

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Average production (mboe/d) Production at 132,200 barrels of oil equivalent per day

- Production declined 14% impacted by the 70% oil & gas

capex reduction compared to 2014 (pre-transformation).

- North America at 79,300 boed; Europe at 52,900 boed

Commodity price environment stabilising

Further reductions in per barrel operating cost despite

production declines

Positive Net Backs

Revenues increase 17% to AED 1.5 billion; EBITDA up

81% to AED 839 million

Unit operating costs ($/boe)

157.9 153.7

132.2

Q1 2015 Q1 2016 Q1 2017

27.8

23.3 22.25

8.5 7.6 7.24

2015 2016 Q1 2017

Europe North America

Capital Expenditure

Increased investment focused on core operations

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Q1 2017 Capex up 69% to AED 458 million

following several years of deep cuts

2017 forecast at AED 1.8 billion

- Increase in capex in line with commodity price

recovery, to protect and sustain the value of

global assets

- Follows several years of deep cuts

- Self-funded by cash generated by the business

Capex (AED million)

271

458

Q1 2016 Q1 2017

Financial performance

Relatively stable cash flows despite commodity price volatility

Abu Dhabi National Energy Company PJSC (TAQA)5/10/2017 8

Revenues (AED billion)

Net Income (AED billion)* Free cash flow** (AED billion)

EBITDA (AED billion)

**Free Cash Flows represents Operating less Investing Cash Flows

3.91

4.14

Q1 2016

Q1 2017

-0.61

0.08

Q1 2016

Q1 2017

1.97

2.43

Q1 2016

Q1 2017

1.50

2.03

Q1 2016

Q1 2017

*Profit attributable to common shareholders

Liquidity and key ratios

Strong liquidity and proactive management of maturities

Abu Dhabi National Energy Company PJSC (TAQA)5/10/2017 9

Q1 2016 Q1 2017

Net debt / net capital 87% 85%

EBITDA/Interest 2.0x 2.6x

Net Debt/EBITDA* 7.8x 7.5x

Key ratios

Robust liquidity position:

- Cash and cash equivalents: AED 3.7 billion

- Undrawn credit facilities: AED 9.1 billion

Staggered and manageable maturity profile:

- March 2017 maturity refinanced ahead of time in

October 2016

- Evaluating options for Oct 2017 maturity ($500m)

Improving ratios

- Recovering ratios following improved financial

performance

0

1,000

2,000

3,000

17 18 19 20 21 22 23 24 26 36

Bonds Drawn RCF Undrawn RCF JPY Loan

Debt Maturity Profile ($ million)*

*as at 31 March 2017

Concluding remarks

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Transformation savings sustainably

embedded across organisation

Ongoing focus on cost discipline and

operational efficiency

Balance sheet strengthened following

land transfer from ADWEA

Investing in most profitable assets to

maximise cash flow

Appendix

Operational Data – Power & Water KPIs

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International plants Q1 2016 Q1 2017

Power generation (GWh) 4,403 4,077

Technical availability (%) 87.0 82.7

UAE domestic plants Q1 2016 Q1 2017

Power generation (GWh) 12,619 12,336

Water desalination (MIG) 56,584 57,216

Technical availability (%) 87.1 84.7

Operational Data – Oil & Gas Production

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Europe Q1 2016 Q1 2017

Crude oil (mbbls/day) 53.3 40.3

Natural gas (mmcf/day) 76.8 67.9

Natural gas liquids (mboe/day) 1.4 1.2

Average (mboe/day) 67.5 52.9

North America Q1 2016 Q1 2017

Crude oil (mbbls/day) 14.3 13.5

Natural gas (mmcf/day) 361.7 323.4

Natural gas liquids (mboe/day) 11.5 11.9

Average (mboe/day) 86.1 79.3

Total Production Q1 2016 Q1 2017

Crude Oil (mbbls/day) 67.7 53.8

Natural Gas (mmcf/day) 438.6 391.3

Natural Gas Liquids (mboe/day) 12.9 13.1

Average (mboe/day) 153.7 132.2

Operational Data – Oil & Gas Pricing

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Europe Q1 2016 Q1 2017

Crude oil ($/bbl) 33.58 54.48

Natural gas ($/mcf) 4.19 6.09

Natural gas liquids ($/boe) 22.98 37.69

Average ($/boe) 31.76 49.71

North America Q1 2016 Q1 2017

Crude oil ($/bbl) 22.27 39.39

Natural gas ($/mcf) 1.36 2.24

Natural gas liquids ($/boe) 15.98 27.52

Average ($/boe) 11.56 19.99

Operational Data – Oil & Gas Netbacks

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Europe Q1 2016 Q1 2017

Gross price ($/boe) 31.76 49.71

Royalties ($/boe)0.00 -

Net sales price ($/boe) 31.76 49.71

Operating costs ($/boe) 19.04 22.25

Operating netback ($/boe) 12.72 27.46

North America Q1 2016 Q1 2017

Gross price ($/boe) 11.56 19.99

Royalties ($/boe) 0.63 2.58

Net sales price ($/boe) 10.94 17.41

Operating costs ($/boe) 6.38 7.24

Operating netback ($/boe) 4.55 10.17