00:00There's been a lot going on in Davos, but frankly, since January 1st, there's been a lot overall.
00:04It's Venezuela, concerns over Iran, then the tariffs that yesterday Donald Trump said he
00:09won't impose on Greenland. What does it mean for a big utility company like Engie?
00:12Yes, and good morning, Francine. So for us, indeed, uncertainty, fluidity, like we've
00:18rarely experienced before. What's quite interesting for a company like us is the
00:25fact that energy is top of mind. And by energy, I mean energy security. So as we talked a lot about
00:33energy transition, we talked a lot more about climate before. Climate, we talked a little bit
00:38less before, even though now, even though it's still very important, it's really about energy
00:44security. And so it has a lot of consequences for us, for a company like Engie, energy security.
00:50In what way? Energy is top of mind. Every country, it's not just every region, every country wants
00:58to ensure a higher degree of sovereignty when it comes to energy. So it's, can I depend more on
01:06myself? And that's obviously turns into an opportunity for a company like Engie. As you know, we are very
01:12engaged in energy transition, but some might call it energy addition, because energy demand remains very
01:20strong. And so for companies is how do I meet this energy demand, which is growing, but relying more
01:27on myself. And this is where it gets really interesting, because renewables is indeed a very
01:34important part of the answer. And as you know, Engie is very engaged in renewables development. So
01:40this is where, you know, we have very interesting discussions with most of our stakeholders.
01:45Under your leadership, there's been quite a lot of divestments for Engie. Is there anything that
01:49you're looking to buy now? So we have a very clear strategy at Engie, which is really a growth on two
01:55pillars. One is around generation of smart electrons. So it's renewables, it's storage, flexible assets
02:03that we tend to do more organically. We have an objective of 95 gigawatts. So you know, we have 50. So
02:11it's still a lot of growth to 2030. Then the second pillar of growth is infrastructure, because we are
02:17utility, we like to have regulated assets, infrastructure. And for that pillar, we will be
02:23looking potentially at external growth. And we've said that in the past, but always keeping in mind,
02:29you know, capital discipline, of course, because we want to create value at Engie. That's very
02:34important. And it's part of the contract we have with our stakeholders, including our investors,
02:38of course. So how are valuations looking at the moment? Well, obviously, infrastructure assets are
02:45scarce when they are of quality. But you know, we'll be looking at and we would be patient,
02:50Francine. So we'll take the time to make sure that, you know, we look at what's available and
02:54we have some time to deliver on our strategy. But because of the criticalness actually of your
03:00industry and the fact that, as you say, there's a lot more sovereignty involved, it feels like,
03:04you know, I don't know if it's an arms race, but certainly people and countries want more control
03:09of their supply chain and their critical industries. Do you think there will be a kind of race for more
03:15M&A or to become bigger? I don't know necessarily whether it's an M&A topic. I think it's for sure
03:21making sure that every country develops the right energy system for its own situation. And this is
03:28what's really interesting on what's happening today is that it's not just that we're looking at
03:33regionalization. It's really every country itself is trying to develop better sovereignty. And so
03:39they'll be looking at generation, which is the right mix. And then, of course, indeed, infrastructure,
03:44a lot of capital needed to reinforce grids as electrification is underway, as you know. And so
03:50we will be looking to be part of that only in the countries where we are already operating,
03:55where we are present, because obviously we don't want to be everywhere. So we will remain quite
04:00focused geographically. Talk to me a little bit about France. There's quite a lot of political
04:04uncertainty still. There are, you know, questions about taxes. How does it impact your investments
04:08in the country? So, you know, France is a big country for us. We are historical operator. We operate
04:15the gas infrastructures. And we will always have this ask to our government that we would like to have
04:21stability, particularly on the fiscal front. But France is an important country, and that won't change
04:28anytime soon. I think the budget needs to be passed, and we look forward to more stability, as we have also
04:35enjoying to some extent in Europe. You know, stability is sometimes a bit relative. And when we look at France
04:42and Europe, actually, we can find source of hope by looking at the stability, the fact that
04:47energy transition remains very important on the agenda, decarbonation, the need to invest in
04:53renewables, in infrastructure, that is still there in Europe. And we see that as a positive as an
04:59investor and developer. But in terms of tax increases, does it actually change anything for
05:04how much capital you have to put into new projects? For a company like us, you know, the tax element
05:10that is being discussed in France, we can live with it. We don't like it, but we can live with it.
05:15It's not going to really change, you know, our plans. But I think what's important is also for
05:20the rest of the economy, the stability is needed to make sure that companies and industry thrives.
05:25And of course, these are our customers. So it's very important also that there is this framework of
05:30stabilization that is offered for industry to thrive in France and in Europe. And that's good for us as
05:36well. Catherine McGregor, how difficult or different was this Davos? There seems to be
05:41a feeling amongst some European CEOs that they were being pushed around by the U.S. I know the
05:47president of the United States had walked down some of the comments, but is the mood very different
05:52to previous years? Yeah, the mood is bizarre. I would really summarize this Davos as the mood is
05:59bizarre. On the other hand, you know, when it comes to the energy world, again, you know, I go back to
06:04my first comment. Energy is so top of mind. So when you're a utility, you feel that you're
06:09really doing something important for the different country where you operate. And that's really
06:13what I will retain from the situation here.
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