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INTERIM 2016

RESULTS PRESENTATION Presented by Eng. Albert Mugo

Managing Director & CEO

29th February 2016

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KenGen's Market Share (MW) KenGen Installed Capacity

Energy Type

Installed

Capacity

(MW)

Hydro………………………… 820

Geothermal…………………. 514

Diesel &Gas………………… 258

Wind………………………….. 26

Total 1,618

KENGEN’S MARKET LEADERSHIP

KenGen1,618 MW

70%

IPP

KenGen is a market leader with an approximate 70% market share in Kenya

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STRATEGIC FOCUS AREAS

Good-To-Great (G2G)Remain committed to delivering our target of

844MW

Geothermal

Development

Sustaining current growth by stepping up

investments in geothermal generation

Funding

Secured required funding from development

partners for the next cycle of power projects

Rights issue on course, targeting June 2016

Revenue

Diversification

Continue to see high growth impact from

diversification into other revenue streams including

steam sales, and commercial drilling

Deliver capacity on

time and on budget

Geothermal and wind developments are at an

advanced stage

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2

1

4

AREA STATUS

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4

Note: Olkaria I Rehabilitation will add 6MW capacity to the existing 45MW capacity

2016 – 2020 720MW to be added

Estimated

Cost ($m)

GROWTH STRATEGY Planned Capacity Additions in the Medium Term

$57 $223 $439 $106 $ 439 $439 $ 130 $0 $1,833 $147 $25 $2,005

MW

2,339

25 70 1405.7 140

140 60 50 631 80 10

1,618

Medium Term Dominated with

Geothermal Development

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FINANCIAL & OPERATING PERFORMANCE

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Category

(Shillings, million)

1H

2015 (1)

1H

2016 (1)

%

Change

Revenue 12,183 18,52352%

EBITDA 8,069 14,23676%

EBIT 4,995 9,71795%

Profit Before tax 3,790 8,384121%

Profit After tax 4,928 5,66815%

Total Comprehensive Income 4,932 5,65315%

EPS 2.24 2.5815%

DELIVERED ON STRONG

FINANCIAL RESULTS

Strong financial performance, with a 76 % increase in EBITDA, compared to the previous period a year ago

(1) Revenue includes KShs 289m interest income in 1H 2016 and KShs 172m in 1H 2015

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Strong and increasing Revenue

CONTINUED REVENUE GROWTH

Shillings, million for the 6 months ended 31 December

12,183

18,523

1H 2015 IH 2016

+52%

REVENUE

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EBITDA EBIT

Profit Before Tax Profit After Tax

Strong and increasing profitability down the Income Statement

INCREASING PROFITABILITY

Shillings, million for the 6 months ended 31 December

8,069

14,236

1H 2015 1H 2016

4,995

9,717

1H 2015 1H 2016

3,790

8,384

1H 2015 1H 2016

4,928

5,668

1H 2015 1H 2016

+76%+95%

+121% +15%

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STRONG REVENUE GROWTH,

INCREASINGLY DIVERSIFIED

11,659

14,757

352

3,477

172

289

12,183

18,523

1H 2015 1H 2016

Electricity Revenue Other income

Interest Income

+52%

Growth

Shillings, million

1,941

538

617

191

296

161

85

352

3,477

1H 2015 1H 2016

+888%

Growth

Steam resource

maintenance services

Steam sales incomeDrilling services

Insurance compensation

Other Income

Total Revenue

Shillings, million

Other Sources of Revenue up 888%

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Capacity Revenue Growth Energy Revenue Growth

NEW GEOTHERMAL CAPACITY

DRIVING ELECTRICITY REVENUE

Shillings, million

3,764 3,840

2,971

5,036

1,566

1,5808,301

10,456

1H 2015 1H 2016

Hydro Geothermal Thermal

828 750

1,7362,631

327

27257

2392,948

3,892

Hydro Geothermal Thermal Wind

+32%

Growth

+26%

Growth

Increase is a result of realizing the

full impact of Olkaria 280MW

Increase is a result of (i) full impact of

Olkaria 280MW (ii) additional wellhead units

(iii) Ngong Wind (iv) favourable hydrology

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ELECTRICITY REVENUE SHOWING

CONTINUED GROWTH

Note: the annualised 2016 figure for electivity revenue is the half year value, doubled

Note: the annualised 2016 figure for Revenue / MW assumes a constant capacity of 1,618MW

Electricity Revenue Over Time

11,548 12,652 10,998 14,389 15,999 16,451 17,424

25,602

14,757

11.49 12.43

10.41

12.54 12.00

13.28 12.97

15.83

9.12

18.24

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2008 2009 2010 2011 2012 2013 2014 2015 1H 2016(and FY 2016)

Electricity Revenue (Shillings, million)

Revenue/MW (shillings million / MW pa)Dotted lines represent

annualised figures

29,514

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ELECTRICITY REVENUE

DRIVEN BY GEOTHERMAL

Full Geothermal impact of 280MW at Olkaria is now being realised

Note: FX adjustment of KES409m not included. Based on 1,618Mw of installed capacity

Electricity Revenue for 6 Months Ended December 2015

239

1,852

4,590

7,667

9.19

7.18

5.60

14.92

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Wind Thermal Hydro Geothermal

Electricity Revenue (Shillings, million)

Revenue/MW (shillings million / MW pa)

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1,693 1,844

1,352

1,820

330

2203,383

3,914

1H 2015 1H 2016

Hydro Geothermal Thermal Wind

RENEWABLES DRIVING STRONG

ELECTRICITY SALES GROWTH

8

30

+16% Total

Growth

Geothermal

Generation grew from

40% to 47% of our

portfolio, with a 35%

growth in units sales

Wind unit sales grew

275%

Hydro unit sales

grew by 9% due to

favourable hydrology

Reduced expensive

thermal generation

Electricity Units Sales (GWh)

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INCOME STATEMENT BREAKDOWN

(1H 2016)

Shillings, million

Energy

Revenue

Capacity

Revenue10,456

14,236

9,7178,384

5,668

3,892

2,479

998

3,998

4,519289

1,622

2,716

409

14,757Net Forex

Adjustment

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CASH GENERATION BREAKDOWN

(1H 2016)

New Loans: Shs 4.5 billion

Loan repayments: Shs 3.8 billion

Shillings, million

3,2922,564

10,836

674

12,238

Balance(1 July 2015)

Net Cash fromOperating Activities

Net Cash fromFinancing Activities

Net Cash used inInvesting Activities

Balance(31 December 2015)

Capex:

Shs 12,233

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FINANCIAL POSITION

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Debt Mix as of December 2015

Weighted

Average

Maturity

15.40

years

Weighted

Average

Cost of Debt

4.09%

JPY – Kshs 34.6 bn

Euro – Kshs 32.5 bn

USD – Kshs 63.6 bn

Kshs – Kshs 19.3 bn

KenGen is able to source attractive debt financing packages

87.1%

12.9%

FINANCIAL POSITION

Looking at our Debt

Shillings, million

42,799(28.5%)

69,510 (46.3%)

37,731(25.2%)

Governmentof KenyaGuaranteedloans

Governmentof KenyaOn-lentloans

Direct loans

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FINANCIAL POSITION BREAKDOWN

(1H 2016)

Shillings, million

312,912

355,009

10,536

145,819

355,009

20,20721,891

57,662

77,621

122,418

20,152

45,342

9,874

11,405

209,191

Awaiting conversion in the

upcoming Rights Issue

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CONCLUSION

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WHY KENGEN?

Delivering

on

Mega

Capacity

Emerging

World

Geothermal

Leader

Large

Asset

Base

Serves as

a Solid

Growth

Platform

Strong

Growth &

Profitability

Consistent

&

Stable

Dividends

Market

Leader

1 32 4 5 6

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QUESTIONS ?