Naturgy Energy Group S.A.

High share (more than 60% of estimated 2018 EBITDA) of low-risk regulated gas and electricity distribution activities in Spain and Latin America. Good geographic and group diversification, mainly linked to operations growth in the international liquefied natural gas (LNG) midstream sector and in Latin America. Industrial and commercial integration of electricity and gas business in Spain. Aggressive shareholding structure, with 40% of share capital owned by infrastructure and private equity funds. Exposure to foreign exchange and country risk in Latin America, notably in Mexico and Argentina. Gas, power, and service sales and international LNG (about 17% of estimated 2018 EBITDA), suffering from weak operational performance and increasing competition. Stable and predictable cash flows generated from the high share of low-risk

...Business Risk: Strong Financial Risk: Significant + High share (more than 60% of estimated 2018 EBITDA) of low-risk regulated gas and electricity distribution activities in Spain and Latin America. + Good geographic and group diversification, mainly linked to operations growth in the international liquefied natural gas (LNG) midstream sector and in Latin America. + Industrial and commercial integration of electricity and gas business in Spain. + Aggressive shareholding structure, with 40% of share capital owned by infrastructure and private equity funds. + Exposure to foreign exchange and country risk in Latin America, notably in Mexico and Argentina. + Gas, power, and service sales and international LNG (about 17% of estimated 2018 EBITDA), suffering from weak operational performance and increasing competition. + Stable and predictable cash flows generated from the high share of low-risk regulated gas and electricity distribution activities in Spain and Latin America. + Strong liquidity,...

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