Axia Energia Sa · BMFBOVESPA:AXIA3
Axia Energia Sa — Brazilian Electric Power — Q2 2019 Earnings Presentation
27 slides from Axia Energia Sa's earnings presentation, Aug 14, 2019
Slide 1: Presentation of Results 2Q19
Slide 2: Disclaimer
This presentation may include estimates and forecasts that are not statements of facts that happened in the past they rather reflect beliefs and expectations of our management and may stand as estimates and forecasts about future events according to Section 27A of the Securities Act of 1933, as amen
Slide 3: Corporate Highlights
CORPORATE HIGHLIGHTS Controlling Shareholder’s Deliberation: CAPITALIZATION Authorization for further studies on the eventual privatization of Eletrobras. IG-SEST GOVERNANCE Maximum score in the 4th cycle of IG-SEST in August 2019. Inclusion of all operating subsidiaries in |G-Sest — Level 1 (excell
Slide 4: Corporate Highlights
CORPORATE HIGHLIGHTS 49,902 MW of installed capacity with aggregation of 508 MW in 2019 and increase of 2.6% compared 2Q18 Increase of BRL 1.1 Billion in revenues 71,042 Km from Transmission Lines, with increment of 145 Km in 2019 and decrease of 1.1% decrease compared 2Q18 owing to the sale of SPE’
Slide 5: Safety of Dams
SAFETY OF DAMS CORPORATE HYDROPOWER PLANT PROJEC According to Aneel Resolution 696/2015, the dams of the Eletrobras companies’ corporate ventures must carry out the Periodic Safety Review (RPS) between 2022 and 2025. Dam Safety Plans - PSB and the Emergency Action Plan - PAE on time; v No accident r
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS (BRL MILLION) NET INCOME BRE W372) BRL 5,561 BRL7,076 RS7.911 BRI ggg BRL 3,113
Slide 7: Evolution of Our Businesses
Slide 8: Hydraulic
HYDRAULIC 90%, In 2019, tet 49,902 MW. SUSI netalied Highlights: Capacity Belo Monte — entry of — of 30.2% of UG14 turn. 8,990 MW country Belo Monte the power plant 100% brazilian, currently with onuclear+ — | 8,789 MW. Itaipu 165,479 MW. 5. 4% of Total/Brazil country Source: Aneel +5,098 MW Brazil
Slide 9: Sector Context and Performance Eletrobras
SECTOR CONTEXT AND PERFORMANCE ELETROBRAS The Generation Revenue increased from BRL 4.2 Billion to 5.3 Billion, accounting for 25% compared to 2Q18 Market ACL (free GSF PLD ACR (Regulated Market) y eat cate market) 2Q18:16% 2018: Exploration | O&M Law No. 12,783/13 Revenue 2Q19: 11% 2Q19: Revenue Mw
Slide 10: Generation Projects Under Construction
GENERATION PROJECTS UNDER CONSTRUCTION Belo Monte HPP Total: 11,233.1 MW OC: 8,788.64 MW UG15 — Aug/19 * *Concatenation: Jan/20 aA AP a AM x MA AC a wr TO Sinop HPP A ~ Total’ 401.88 MW é Tomar eo ie) Augit9 ie Map Key: MS SP Furnas Eletronorte nudear =e Eletronuclear 10 7 Comp. Eol. Fortim Total: 1
Slide 11: Transmission
TRANSMISSION THE LARGEST TRANSMISSION COMPANY IN LATIN AMERICA total Eletrobras transmission lines amounting to 2 230 kV In2Q19, of phsysical aggregation in Chesf al RAF in| Eletrobras companies in 2019, with the highlight of Chesf with BRL 23.16 Million. With + 477.2 km, 13.5% with participation of
Slide 12: Financial
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Slide 13: Income Statement 2Q19
INCOME STATEMENT 2Q19 Recurring BRL million 2018 «2019 % 2a1e 2a19 % ROL 5913 6643 12% 5,901 6570 11% (-)PMSO -2,034 14% -2,139 T% (-) Operating Costs and Expenses 1,358 -1,575 16% 1,247 -1,394 12% () Operating Provisions 785 0,2 -26 -15464% (+) Equity interest 230 102 56% 230 102 56% Ebitda 3,535 1
Slide 14: Gross Revenue 2Q19
GROSS REVENUE 2Q19 i +13% + BRL 908 Million Recurring 302 144 -180 -281 73 7,911 74 8,058 7,089 12 7,076 $e 99 : +14% -59% a : _ | oe Gross Revenue Construction 2Q18 Recurring Generation- Generation- Transmission - Transmission- Transmission - Transmission - Other 2Q19 Recurring Construction G/ _ IF
Slide 15: Operating Costs
OPERATING COSTS BRL Million Consolidated 2ais 219 % & IFRS Operating Costs 1,358 1,575 16% 4 = oy, Chargesfor Use + BRL28 million Recurring Operating Costs 4280. 766 26% ofthe Electrical + Reduction dueto lower transmission charges Grid (TUST). OE 181 Construction Dp Generation: CONSTRUCTION 111 ‘TR
Slide 16: Personnel, Materials, Services and Other
PERSONNEL, MATERIALS, SERVICES AND OTHER BRL Million + BRL 136 million: = + +BRL71 jon Holding Consolidated 2018, _ 201) 6 + #BRL 60 million: Processo INEPAR (Furnas) + +BRL47 million: ajustes eliminagdes intercompanhia 2718 PMSOIERS 2,084 2314 15.8% + -BRL3 million PDC (2719) e +BRL 24 million (271
Slide 17: Operating Provisions
OPERATING PROVISIONS BRL Million Pn onre i Guarantees “81 58 “172% Reversal of BRL 140 Million owing to the sale of Amazonas Distribuigéo Contingencies -377 -369 -2% Reversal of BRL 198 Million mainly owing to the reclassification of the risk of lawsuit 9 Compuispby) lean -167 40 -124% cases from pr
Slide 18: EBITDA 2Q19
18 EBITDA 2Q19 7 R$ million - BRL 2,185 million a Highlights +BRL 225 + Contingencies: -BRL 544 million Contingencies: -BRL 329 + PAE: -BRL 24 SPE Gain + BRL 64 + Onerous C.: BRL 216 PCLD: RGR Transfer: -R$ 119 + Impairment: -BRL 210 Onerous C.: +BRL 248 + TFRH: +BRL 1,334 Prov. for Losses with Inve
Slide 19: Net Earning
19 |; | | =e = ——— NET EARNING i R$ million Highlights + EBITDA Adjustments Slide 16 + Discontinued Operation - BRL 3,374 + 3774% 5260 m + R$ 2,247 Highlights: + EBITDA Adjustments Slide 16 + Discont. Operation BRL 919 m 1,372 res +8% +104% Net Profit IFRS Nonrecurring Recurring EBITDA Snares ee Inc
Slide 20: IFRS EBITDA Eletrobras Companies
IFRS EBITDA ELETROBRAS COMPANIES BRLMillion Eletronuclear Eletronorte Furnas Chesf AmazonasGT Eletrosul SPEs CGTEE Eletropar 20 54 2Q18 TFRH BRL 1,334 million 829 1.905 180% 73% 14% 103% 476% 30% 33% 26% 100% ~ Eletrobras esa, e ene Dee
Slide 21: IFRS Result Eletrobras Companies
IFRS RESULT ELETROBRAS COMPANIES BRLMillion 2Q18 2019 Eletronuclear 0.4 192 y Eletronorte 4,151 Y 70% Furnas -936 t 160% Chesf 9 t Amazonas GT a t Eletrosul | 38 t 292% SPE’s . BF 300% CGTEE 28 fl _ gy 3% Eletropar 3 a | 68% Discon. Oper. 919 5,260 tT 472% 5,561 fF 305% nS Eletrobras Consolidated 1,
Slide 22: Financial Discipline
FINANCIAL DISCIPLINE +) Short-term Debt (Current Liabilities; BRL Million uo i , _(+) Long-term Debt GROSS DEBT Net Debt 5 () Transfer RGR to CCEE (1) ee is Adjusted EBITDA = Proforma GROSS DEBT () Cash and Cash Equivalents + Deeds and Net Debt/Ebitda Securities -) Financings Receivable ¢ 26.1 25.7
Slide 23: Realized Investments
23 REALIZED INVESTMENTS BRL million Nature of Realized in| Realized in| Budgeted| % 1419} Investments 219) 1H19| PDNG2019| ” Total Corporate 427.1 782 4,681.9 16.7% Generation 47.4 85.5 1,248.6 6.9% Transmission 165.8 263.4 1,411.1 18.7% Generation= 121.2 287.3 9245 31.1% Maintenance Me 59.5 83.5 73
Slide 24: Current Organization Structure
CURRENT ORGANIZATION STRUCTURE Estimate of Accomplishment Estimate of Evolution of SPE’s s Current Position 147 Eletrobras Sold at Eletrobras 01/2018 Auction 40 (under transfer process) R&D EQUITY To be Sold a 145 SPE's ("! Cee To be Merged 14 2 SPE's zis To be Extinguished 25 Total Estimated in 202
Slide 25: Future Prospects
25 FUTURE PROSPECTS Merger of Eletrosul and CGTEE - waiting approval by government agencies and creditors for AGE’s of Eletrosul and CGTEE - September/2019; Business Start (proportional to the participation of Eletrobras) of 1,221.73 MWin Belo Monte, 196.92 MWin Sinop, and 210.25 MW in wind power ge
Slide 26: Eletrobras Market
ELETROBRAS MARKET Market Value X Book Value 2010 to 2019 (BRL Billion) B 76.8 Book Value Market Value 2010 2011 2012 2013 2014 2015 2016 2017 2018 1819 ~ Eletrobras 26
Slide 27: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: August 13, 2019 CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS By: / S / Elvira Baracuhy Cavalca
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