Engie Brasil Energia S.a. · BMFBOVESPA:EGIE3
Engie Brasil Energia — Q4 2023 Earnings Presentation
40 slides from Engie Brasil Energia's earnings presentation, Feb 28, 2024
Slide 1: Results Presentation 4Q23 and 2023
ENGIE BRASIL ENERGIA RESULTS PRESENTATION 4Q23 and 2023 February 27, 2024
Slide 2: Disclaimer
Results Presentation 4Q23 and 2023 Disclaimer This publication may include forward-looking statements on events or results The information and opinions contained herein should not be understood as a pursuant to Brazilian and international securities’ regulations. These forward- recommendation to pot
Slide 3: Contents
Results Presentation 4Q23 and 2023 Contents 1. Highlights and ESG KPIs 2. Energy Sales 3. Expansion 4. Financial Performance 5. Supporting Data São Salvador Hydro Power Plant ENGIE Brasil Energia S.A. 3
Slide 4: 1. Highlights and ESG KPIs
Results Presentation 4Q23 and 2023 1. Highlights and ESG KPIs Umburanas Wind Complex ENGIE Brasil Energia S.A. 4
Slide 5: Highlights
Results Presentation 4Q23 and 2023 Highlights Adjusted Ebitda1 (R$ million) Adjusted Net Income (R$ million) +4.7% +23.8% 6,941 7,270 151 3,421 2,764 99 -5.6% -9.4% Non-recurring 6,790 7,285 3,429 1,735 1,638 904 819 2,665 Recurring 21 13 1,714 1,803 891 948 (165) (15) (129) (8) 4Q22 4Q23 2022 2023
Slide 6: 2023 Highlights
Results Presentation 4Q23 and 2023 2023 Highlights The Company becomes the largest generator of 100% Lot 5 (Asa Branca Project) was acquired at Aneel’s renewable electricity in the country, with the sale of the 01/2023 Transmission Auction, which will be approximately Pampa Sul Thermoelectric Power
Slide 7: 2023 Highlights
Results Presentation 4Q23 and 2023 2023 Highlights Approved the proposal for the distribution of mandatory and The sale of 15% of the Company’s equity stake held in complementary dividends in the amount of R$ 994.5 million TAG to CDPQ partner was signed for an amount of R$ 3.1 (R$ 1.2188/share), to
Slide 8: ESG Highlights
Results Presentation 4Q23 and 2023 ESG Highlights The Company has upgraded from a “B” rating to an “A-” ENGIE Brasil Energia has been included in the S&P Global rating in the CDP Climate Change 2023, in its second Sustainability Yearbook 2024 for the first time, in the individual report. The climate
Slide 9: ESG KPIs
Results Presentation 4Q23 and 2023 ESG KPIs TOTAL EMISSIONS AND EMISSIONS INTENSITY HEALTH AND SAFETY – FREQUENCY RATE (OWN % OF WOMEN IN THE WORKFORCE AND EMPLOYEES + SERVICE PROVIDERS)* LEADERSHIP POSITIONS 1,106,842 29.4 29.4 1.07 1.11 26.7 27.7 26.7 27.7 23.2 23.2 0.74 567,416 391,482 0.0339 0.0
Slide 10: 2. Energy Sales
Results Presentation 4Q23 and 2023 2. Energy Sales Gralha Azul Transmission System ENGIE Brasil Energia S.A. 10
Slide 11: Energy Commercial Strategy
Results Presentation 4Q23 and 2023 Energy Commercial Strategy Portfolio diversification and gradual sale of future availability, with reserve for protection against hydrological risk Energy Balance* (% of total; in aMW) | as of December 31, 2023 Free customers total sales volume for 2024: 2,014 aMW
Slide 12: Energy Commercial Strategy
Results Presentation 4Q23 and 2023 Energy Commercial Strategy Evolution of free customers¹ 2,388 2,329 2,159 3,172 41% 1,408 (+16% compared to 4Q22) Participation of Free Clients Consumer Units served in out of total physical sales in 4Q232 2023 982 877 8.6% 104.7 thousand (-1.1 p.p. compared to 4Q2
Slide 13: 3. Expansion
Results Presentation 4Q23 and 2023 3. Expansion Santo Agostinho Wind Complex (Phase I) – Construction works ENGIE Brasil Energia S.A. 13
Slide 14: Wind Project Under Implementation
Results Presentation 4Q23 and 2023 RN Wind Project Under Implementation Santo Agostinho Wind Complex (Phase I) Overall physical progress reached 95.8%. Wind project made Lajes and Pedro Avelino (RN) - Phase I feasible in the Free Contracting Environment Total Start of (ACL). Installed construction:
Slide 15: Wind Project Under Implementation
Results Presentation 4Q23 and 2023 BA Wind Project Under Implementation Serra do Assuruá Wind Project Campo Largo I and II One of the ENGIE Group’s largest Serra do Assuruá Umburanas wind projects to be implemented in a single phase BA Gentio do Ouro (BA) Total Start of Wind cluster Installed constr
Slide 16: Photovoltaic Project Under Implementation
Results Presentation 4Q23 and 2023 RN Photovoltaic Project Under Implementation Assú Sol Photovoltaic Complex Floresta Energy to be entirely delivered to the Free Market. Assú V Assú Sol Assú (RN) RN Total Start of Installed construction: Capacity: 3Q23 • Progress of installation Contracts for the s
Slide 17: Transmission Project Under Implementation
Results Presentation 4Q23 and 2023 PA Transmission Project Under Implementation Gavião Real Transmissora de Energia Complementary to the Novo Estado Transmission System, Contracted Concession capturing synergies. RAP1: period: R$ 7.1 30 years 138 kV Sector million Estimated Deadline to Capex1: start
Slide 18: Transmission Project Under Implementation
Results Presentation 4Q23 and 2023 Transmission Project Under Implementation PA Asa Branca Transmissora de Energia Strategic location for seamless flow of renewable energy from Northeast to the Southeast and Midwest Gavião Real Novo Estado regions. Contracted Concession RAP1: period: R$ 249.3 30 yea
Slide 19: Expansion: Jirau HPP update
Results Presentation 4Q23 and 2023 Expansion Jirau HPP | update aMW MW 3,750 50 75 2,102 Generating MW each Physical Installed Units Guarantee1 Capacity Production (average MW)2 PPA’s Portfolio (average MW) Shareholding Structure -18.4% 2,102 2,102 2,102 2,102 2,102 14 99 99 99 99 99 20% 00 1,601 53
Slide 20: Projects Under Development
Results Presentation 4Q23 and 2023 Projects Under Development ENGIE Brasil Energia has also a portfolio of assets under development. Santo Agostinho Wind Installed Evolution of projects under Complex (Phase II) – RN Capacity: 279 MW development pipeline1 (MW) RN Santo Agostinho Installed 2,160 2,139
Slide 21: 4. Financial Performance
Results Presentation 4Q23 and 2023 4. Financial Performance Estreito Hydro Power Plant ENGIE Brasil Energia S.A. 21
Slide 22: From 2016–2023: Solid Financial Performance
Results Presentation 4Q23 and 2023 From 2016 – 20233: Solid Financial Performance Investments: Good portfolio management and diversification into other regulated amounted to R$ 28.5 billion, with 84% leverage segments, such as transmission, natural gas transportation and energy contracts in the ACR,
Slide 23: Net Operating Revenue Change
Results Presentation 4Q23 and 2023 Net Operating Revenue Change NET OPERATING REVENUE (R$ MILLION) -9.7% 11,907 37 5 (10) (348) (29) (246) (568) 1,703 14% 10,748 1,135 685 11% 6% 439 4% 9,519 9,174 80% 85% NOR 2022 CCEE Price and Financial Pampa Sul Other Trading Transmission NOR 2023 sales volume a
Slide 24: Result of Equity Income
Results Presentation 4Q23 and 2023 Result of Equity Income Contribution of the Result from Transportadora Associada de Gás (TAG) to the EBITDA of the Company TAG INCOME STATMENT (R$ MILLION) Transportadora Associada de Gás - TAG • Stake of 32.5% in TAG 9,029 (2,486) contributed with R$ 993 million v
Slide 25: Ebitda Change
Results Presentation 4Q23 and 2023 Ebitda Change EBITDA (R$ MILLION) +4.7% +6.4% 242 7,270 15 7,285 266 148 7,028 94 151 6,941 115 5 (43) (62) 757 208 (348) 757 6,790 265 10% (228) 10% 572 6,607 609 (106) 15 572 8% (334) 8% 344 727 993 993 727 10% 727 993 14% 14% 11% 5,491 5,642 5,520 5,535 81% 81%
Slide 26: Net Income Change
Results Presentation 4Q23 and 2023 Net Income Change NET INCOME (R$ MILLION) +28.7% +23.8% 329 64 (288) 552 3,421 8 3,429 2,665 99 2,764 Net income Non-recurring Adjusted net Financial Adjusted Depreciation Income taxes Adjusted net Non-recurring Net income 2022 income 2022 result Ebitda and income
Slide 27: Balanced Debt
Results Presentation 4Q23 and 2023 Balanced Debt With no currency exposure DEBT OVERVIEW (R$ MILLION) 20,587 20,905 5,256 18,150 16,672 314 15,335 Total Debt / Ebitda3 Debt control, active 2.9x 2.9x management of debt costs (R$ million) 2.6x 2.6x and successful investment decisions ensure low levels
Slide 28: Debt Profile and Composition
Results Presentation 4Q23 and 2023 Debt Profile and Composition Competitive costs and defensive indexes MATURITY DEBT SCHEDULE (R$ MILLION) BREAKDOWN OF DEBT 4,593 2,660 2,802 78% IPCA AAA rating and robust cash 2,199 2,307 generation translate into 1,624 1,747 1,773 competitive costs of debt for 98
Slide 29: CAPEX
Results Presentation 4Q23 and 2023 CAPEX ALLOCATED/EXPECTED CAPEX AND CORRESPONDING FINANCING RESOURCES (R$ MILLION) 9,594 7,217 7,270 6,941 2,269 6,427 The expansion plan and maintenance CAPEX are supported by a strong cash 2,854 flow generation and prudent 4,013 3,407 3,150 3,479 funding strategy.
Slide 30: Dividend Policy
Results Presentation 4Q23 and 2023 Dividend Policy DIVIDENDS (BASED ON DISTRIBUTABLE NET INCOME) % • By-law minimum 3.32 payout: 30% of 2.79 distributable net income 2.45 2.47 2.50 2.34 8.6% 9.2% 8.1% • Management 6.1% 5.7% 6.2% 5.6% 3.5% 3.7% 3.5% 1.82 1.53 Commitment: minimum 100% 100% 100% 100%2
Slide 31: 5. Supporting Data
Results Presentation 4Q23 and 2023 5. Supporting Data Assú V Photovoltaic Complex ENGIE Brasil Energia S.A. 31
Slide 32: Key Performance Indicators
Results Presentation 4Q23 and 2023 Key Performance Indicators Consolidated (in R$ million) 4Q23 4Q22 Chg. 12M23 12M22 Chg. Net Operating Revenue (NOR) 2,711 3,102 -12.6% 10,748 11,907 -9.7% Results from Operations (EBIT) 1,570 1,487 5.6% 6,360 5,801 9.6% 1 Notes: Ebitda 1,803 1,714 5.2% 7,285 6,790
Slide 33: Diversified Portfolio of Assets as of December 31, 2023
Results Presentation 4Q23 and 2023 27 Diversified Portfolio of Assets as of December 31, 2023 29 35 5 15 34 31 17 33 26 29 19 30 13 14 Installed Commercial 9 32 12 34 Hydro Power Plants 34 Capacity (MW) Capacity (aMW) • Own installed capacity of energy generation of 4 34 27 1 Salto Santiago 1,420.0
Slide 34: Transportadora Associada de Gás – TAG
Results Presentation 4Q23 and 2023 Transportadora Associada de Gás – TAG Contracts breakdown Protagonism for the liberalization of the gas market: access of important players to the transport network Fully contracted for a weighted average term of approximately 7 years. • 69 extraordinary agreements
Slide 35: Transportadora Associada de Gás – TAG
Results Presentation 4Q23 and 2023 Transportadora Associada de Gás – TAG Financing structure with competitive cost and protected from exchange variation - Rating AAA and International BB and Ba1 by Fitch Ratings and Moody’s, respectively. DEBT PROFILE – TAG1 (as of December 29, 2023) Details of USD
Slide 36: Energy Balance as of December 31, 2023
Results Presentation 4Q23 and 2023 Energy Balance as of December 31, 2023 Diversified contracting with duration of about 15 years in ACR and 4 years in ACL1 (in average MW) 2024 2025 2026 2027 2028 2029 Own Resources 4,130 4,556 4,734 4,734 4,734 4,734 Auction Reference Gross Price Net Price of + Pu
Slide 37: Headcount
Results Presentation 4Q23 and 2023 Headcount1 Number of Employees By gender 704 1,191 19% 1,117 32% 30% 37% 413 Administrative 48% 81% Renewables Female 58% 63% Thermal 70% Male 52% 10% Administrative Operations 4Q22 4Q23 By age group By academic qualifications 3% 4% 23% 16% Less than 25 32% 37% Pos
Slide 38: Sustainability KPIs
Results Presentation 4Q23 and 2023 Sustainability KPIs1 Unit of Performance Performance Performance Performance Aspect Theme Change Change measurement 4Q23 4Q22 12M23 12M22 Emissions intensity 2 tonCO2e/MWh 0.0123 0.0315 -61.0% 0.0131 0.0339 -61.4% 2 Emissions intensity by revenue tCO2e/million R$ 6
Slide 39: Contacts
Results Presentation 4Q23 and 2023 Contacts Eduardo SATTAMINI Eduardo TAKAMORI Chief Executive Officer Chief Financial and Investor Relations Officer Investor Relations Team: www.engie.com.br/investidores Rafael Bósio ri.brenergia@engie.com Investor Relations Manager rafael.bosio@engie.com (48) 9 99
Slide 40: www.engie.com.br
www.engie.com.br