Engie Brasil Energia S.a. · BMFBOVESPA:EGIE3
Engie Brasil Energia — Q1 2022 Earnings Presentation
36 slides from Engie Brasil Energia's earnings presentation, May 6, 2022
Slide 1: ENGIE Brasil Energia Results Presentation 1Q22
ENGIE BRASIL ENERGIA Results Presentation 1Q22 May 05, 2022
Slide 2: Disclaimer
Disclaimer This publication may include forward-looking statements on events or results The information and opinions contained herein should not be understood pursuant to Brazilian and international securities’ regulations. These forward- as a recommendation to potential investors and no investment
Slide 3: Contents
Contents 1 2 3 4 Highlights Energy Sales Expansion Financial Performance 5 Supporting Data ENGIE Brasil Energia S.A. Results Presentation 1Q22 | 3
Slide 4: Highlights
HIGHLIGHTS
Slide 5: Highlights
Highlights Result drivers vs. 1Q21 EBITDA (R$ million) +8.8% + 9.9% Average net sales price 1,891 1,738 R$ 203 million Higher price and sales volume R$ 83 million Lower fuel cost R$ 78 million Transmission segment contribution 1Q21 1Q22 NET INCOME (R$ million) Energy purchase for portfolio +21,9% Pu
Slide 6: Highlights
Highlights By the end of 1Q22, assets were generating The Serra Pelada – Miracema The acquisition of Paracatu (MG) around 77% of the total RAP of the transmission line entered service, and Floresta (RN) Photovoltaic Gralha Azul project. increasing RAP to approximately Complexes was concluded, adding
Slide 7: Highlights
Highlights Approved the distribution of complementary dividends for the fiscal year of 2021 in the amount of The launch of Sustainability Report 2021, an important tool R$ 549.8 million (R$ 0.6738/share). for rendering accountability to society, compliant with Global Reporting Inititative (GRI) and
Slide 8: ESG 1Q22 KPIs
ESG 1Q22 KPIs INSTALLED CAPACITY AND % OF RENEWABLES EMISSION INTENSITY (KgCO2E/MWh) TOTAL EMISSIONS 211 5.9 5.5 184 180 95.8% 95.9% 86.2% 86.2% 86.3% 160 8,710 8,710 8,790 -53,2% 8,219 8,453 75 1.6 1.4 0.4 -75.0% 2020 2021 1Q20 1Q21 1Q22 2020 2021 1Q20 1Q21 1Q22 2020 2021 1Q20 1Q21 1Q22 Renewable p
Slide 9: Energy Sales
ENERGY SALES
Slide 10: Energy Commercial Strategy
Energy Commercial Strategy Portfolio diversification and gradual sale of future energy availability, with reserve preservation to protect against hydrological risk. FREE CUSTOMERS TOTAL SALES VOLUME FOR 2022: 2,378 aMW ENERGY BALANCE (% OF TOTAL; AVERAGE MW) Source: Internal study based on IBGE’s cl
Slide 11: Energy Commercial Strategy
Energy Commercial Strategy EVOLUTION OF FREE CUSTOMERS1 2,277 (-0.3% compared to 1Q21) 2,603 2,656 Consumer Units served in 1Q223 2,377 2,378 2,293 2,329 9.7% (-1,8 p.p. compared to 1Q21) 930 877 Market share ACL in 1Q22 (of total energy in Free Market) 826 845 784 682 38% Participation of Free Clie
Slide 12: Expansion
EXPANSION
Slide 13: Wind Project Under Implementation
Wind Project Under Implementation Santo Agostinho Wind Complex (Phase I) Overall physical progress reached 14.5% Wind project made feasible in the Free Contracting Environment (ACL). • Concreting of 45 out of 70 wind turbine bases (64%); • The construction of the Collector Substation accumulates 33%
Slide 14: Transmission Project Under Construction
Transmission Project Under Construction Gralha Azul Transmission System Overall work have reached 99.8%, by the end of RAP by section (%) 1Q22 5.3% 10.1% • 77% of the total RAP effected: 9 transmission lines and 3 TL sectionings 6.3% were energized 9.8% • In April, reached 87% of total RAP with Guar
Slide 15: Transmission Project Under Construction
Transmission Project Under Construction Novo Estado Transmissora de Energia At the end of 1Q22, the total work progress was 92.6%. • The Serra Pelada – Miracema C1 and C2 transmission lines entered into commercial operations, then accounting for approximately 50% of the total RAP in the beginning of
Slide 16: Expansion: Jirau HPP update
Expansion Jirau HPP | update aMW MW 2,212 3,750 50 75 PHYSICAL GUARANTEE INSTALLED CAPACITY GENERATING UNITS MW EACH PRODUCTION (average MW)1 PPA’s PORTFOLIO (average MW) SHAREHOLDING STRUCTURE +2.7% 2,212 2,212 20% 3,006 3,089 14 95 95 538 538 Regulated 14 Bilateral 40% Uptime operating factor Part
Slide 17: Projects Under Development
Projects Under Development Assú Photovoltaic Complex – RN Installed Capacity: 870 MW ENGIE Brasil Energia has also a portfolio of Sto. Agostinho Wind Complex (Phase II) – RN assets under development. Installed Capacity: 279 MW Serra do Assuruá Wind Complex - BA Installed Capacity: ~880 MW Umburanas
Slide 18: Financial Performance
FINANCIAL PERFORMANCE
Slide 19: Solid Financial Performance
Solid Financial Performance From 2016 – 20213: Creation of shareholder value: financial discipline and efficient capital allocation. Investments amounted to: ~R$ 22.5 billion, with 82% leverage ROE1 - ADJUSTED RETURN ON EQUITY (%) Proprietary installed capacity: 33.0 34.7 33.4 - Total: +17% - Renewa
Slide 20: Net Operating Revenue Change
Net Operating Revenue Change NET OPERATING REVENUE (R$ MILLION) -5.8% 203 26 16 (95) (335) 3,250 8 (3) 3,062 7 837 502 165 260 2,388 2,145 NOR 1Q21 Price and Financial Asset CCEE Trading Transmission1 Photovoltaic NOR 1Q22 sales volume Remuneration panels and other Generation and portfolio’s sale Tr
Slide 21: Result of Equity Income
Result of Equity Income Contribution of the Result from Transportadora Associada de Gás (TAG) to the EBITDA of the Company Stake of 32.5% in TAG contributed with R$ 173 milhões via equity income to the Company’s Ebitda in the 1Q22 INCOME STATEMENT TAG (R$ MILLION) 2,051 (703) Transportadora de Gás -
Slide 22: Ebitda Change
Ebitda Change EBITDA (R$ MILLION) +8.8% 32 26 7 (52) (237) 83 203 13 1,891 78 1,738 1 25 2 234 156 175 173 1,407 1,458 (2) Ebitda 1Q21 Price and Fuel Personnel Financial CCEE Hydrological Purchases Transmission Other/non Ebitda 1Q22 sales volume and 3rd party asset risk for portfolio recurring servi
Slide 23: Net Income Change
Net Income Change NET INCOME (R$ MILLION) +21.9% 140 8 (18) (23) 9 645 529 Net income 1Q21 Adjusted Ebitda Financial result Depreciation Income taxes Non-recurring Net income 1Q22 and amortization ENGIE Brasil Energia S.A. Results Presentation 1Q22 | 23
Slide 24: Balanced Debt
Balanced Debt With no currency exposure Debt control, active management of debt costs and sound investment decisions ensure low levels of the Net Debt/Ebitda ratio. DEBT OVERVIEW (R$ MILLION) 21,491 4,588 20,587 16,672 858 16,045 14,437 Total Debt / Ebitda3 2.9x 2.9x 2.8x 2.6x R$ million 2.2x 2.0x 2
Slide 25: Debt Profile and Composition
Debt Profile and Composition Competitive costs and defensive indexes AAA rating and robust cash generation translate into competitive costs of debt for financing growth. BREAKDOWN OF DEBT MATURITY DEBT SCHEDULE (R$ MILLION) IPCA TJLP 68% 3,970 9% 3,382 3,103 2,261 2,100 2,168 Fixed 1,394 1,492 10% 1
Slide 26: CAPEX
CAPEX The expansion plan and maintenance CAPEX are supported by a strong cash flow generation and prudent funding strategy. ACCOMPLISHED/EXPECTED CAPEX AND CORRESPONDING FINANCING RESOURCES (R$ MILLION) 7,217 Adjusted Ebitda 6,427 Shareholder’s equity funded, including 5,163 acquisitions 4,367 Debt
Slide 27: Dividend Policy
Dividend Policy • By-law minimum payout: 30% of payable net income • Management commitment: minimum payout of 55% of payable net income • At least 2 dividends per year DIVIDENDS (BASED ON DISTRIBUTABLE NET INCOME) 2.79 2.45 2.47 2.50 8.6% 9.2% 7.1% 6.3% 6.1% 5.7% 6.2% 3.5% 3.7% 3.5% 1.90 100% 1.81 1
Slide 28: Supporting Data
SUPPORTING DATA
Slide 29: Main Financial and Operational Indexes
Main Financial and Operational Indexes Consolidated (In millions of R$) 1Q22 1Q21 Chg. Net Operating Revenue (NOR) 3,062 3,250 -5.8% Results from Operations (EBIT) 1,641 1,507 8.9% Ebitda 1 1,891 1,738 8.8% 2 Adjusted Ebitda 1,878 1,738 8.1% 1 Ebitda / NOR - (%) 61.8 53.5 8.3 p.p. 2 Adjusted Ebitda
Slide 30: Diversified Portfolio of Assets
Diversified Portfolio of Assets 27 16 31 5 18 29 20 31 Installed Commercial 28 14 15 Hydro Power Plants 9 13 Capacity (MW) Capacity (MWm) 4 1 Salto Santiago 1,420.0 733.3 27 2 Itá 1,126.91 564.71 Installed capacity of 8,441 MW 22 23 17 3 11 Salto Osório 1,078.0 502.6 (4,556 aMW), +434 MW of wind ene
Slide 31: Transportadora Associada de Gás – TAG
Transportadora Associada de Gás – TAG Contracts breakdown and indebtedness DEBT PROFILE – TAG (as of March 31, 2022) High level of contracted volume in the regulated market, for a weighted average term of approximately 9 years. Financing structure with competitive cost and protected from exchange va
Slide 32: Transportadora Associada de Gás – TAG
Transportadora Associada de Gás – TAG Initiatives for the liberalization of the gas market: access of important players to the transport network • Use of POC – Capacity Offer Platform, in partnership with TBG and NTS – for the negotiation of online transportation capacity; • Signature of Flexibility
Slide 33: Energy Balance as of March 31, 2022
Energy Balance as of March 31, 2022 Diversified contracting with duration of about 17 years in ACR and 4 years in ACL1 (in average MW) 2022 2023 2024 2025 2026 2027 Own Resources 4,388 4,535 4,602 4,592 4,589 4,589 Auction Reference Gross Price Net Price of + Purchases for Resale 1,486 1,047 793 333
Slide 34: Headcount
Headcount1 NUMBER OF EMPLOYEES BY GENDER 767 1,472 16% 26% 1,129 26% Female 32% 362 Male Administrative 84% 44% 48% Renewables 58% Thermal 52% 74% 29% 10% Administrative Operations 1Q21 1Q22 BY AGE GROUP BY ACADEMIC QUALIFICATIONS 7% 4% 2% Less than 25 20% 14% 25 to 34 Post-Graduate 35% 35 to 44 41%
Slide 35: Sustainability KPIs
Sustainability KPIs1 Item Dimension2 Index Material themes GRI disclosure4 1Q22 1Q21 Change 1 Operating plants 102-7, EU1 76 63 13 2 Installed capacity 102-7, EU1 10,174 10,511 -3.2% 3 Proprietary capacity 102-7, EU1 8,453 8,790 -3.8% 4 Number of certified plants 102-7, EU1, EU6 11 12 -1 5 Certified
Slide 36: Contacts
Contacts Eduardo Sattamini Marcelo Cardoso Malta Chief Executive and Investor Relations Officer Chief Financial Officer Investor Relations Team: www.engie.com.br/investidores Rafael Bósio Investor Relations Manager rafael.bosio@engie.com (48) 9 9911-0106 Adriana Wagner Caio Miralles Investor Relatio