Engie Brasil Energia S.a. · BMFBOVESPA:EGIE3
Engie Brasil Energia — Q3 2022 Earnings Presentation
38 slides from Engie Brasil Energia's earnings presentation, Nov 9, 2022
Slide 1: ENGIE Brasil Energia Results Presentation 3Q22
ENGIE BRASIL ENERGIA Results Presentation 3Q22 November 08, 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 Highlights and ESG KPIs 01 Supporting Data 05 Energy Sales 02 Expansion 03 Financial Performance 04 ENGIE Brasil Energia S.A. Results Presentation 3Q22 | 3
Slide 4: Highlights and ESG KPIs
01 Trairi Wind Complex Highlights and ESG KPIs ENGIE Brasil Energia S.A. Results Presentation 3Q22 | 4
Slide 5: Highlights
Highlights Result drivers vs. 3Q21 Adjusted EBITDA1 (R$ million) Increase of 8.0% in price and 9.3% in +4.8% R$ 324 million sales volume 4,969 5,206 130 112 R$ 174 million CCEE Result -15.7% 4,857 5,076 R$ 121 million Transmission segment RAP (cash effect) 1,698 1,432 1,749 1,469 R$ 83 million Lower
Slide 6: Highlights
Highlights Company has evolved in its strategy of becoming a In September, the Company signed the contract for the supply generator which is 100% renewable with the of up to 188 wind turbines with Vestas do Brasil, one of the signature of the sale agreement for the Pampa Sul critical events that all
Slide 7: Highlights
Highlights Equipment supply contracts with WEG, and for construction with For the 13th time, the Company was awarded the Abengoa, were signed for Gavião Real Transmissora de Transparency Trophy, organized by Anefac-Fipecafi, Energia Project. recognizing companies with the best practices of governanc
Slide 8: Highlights
Highlights ENGIE Brasil Energia and its indirect controlling company ENGIE Approved the change in the denomination of the Administrative S.A. have endorsed the initiative of Corporate Knights and Office to People, Processes and Sustainability Global 100 Council, in which companies are committed to a
Slide 9: ESG 3Q22 KPIs
ESG 3Q22 KPIs INSTALLED CAPACITY AND % OF RENEWABLES EMISSION INTENSITY1 (KgCO2E/MWh) TOTAL EMISSIONS1 (million of tCO2e) 211 5.9 5.5 184 179 95.8% 86.8% 95.9% 86.2% 86.2% 119 8,710 8,219 8,710 9,076 8,454 -76.5% 1.6 1.6 28 0.3 -81.3% 2020 2021 3Q20 3Q21 3Q22 2020 2021 3Q20 3Q21 3Q22 2020 2021 3Q20
Slide 10: Energy Sales
02 Salto Santiago Hydro Power Plant Energy Sales ENGIE Brasil Energia S.A. Results Presentation 3Q22 | 10
Slide 11: 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: 2,339 aMW ENERGY BALANCE (% OF TOTAL; AVERAGE MW) Source: Internal study based on IBGE’s cla
Slide 12: Energy Commercial Strategy
Energy Commercial Strategy EVOLUTION OF FREE CUSTOMERS1 2,495 (+3.9% compared to 3Q21) 2,603 2,656 Consumer Units served in 3Q223 2,344 2,339 2,293 2,329 9.6% (-1.0 p.p. compared to 3Q21) 930 925 877 Market share ACL in 3Q22 (of total energy in Free Market) 864 826 682 35% Participation of Free Clie
Slide 13: Expansion
03 Jaguara Hydro Power Plant Expansion ENGIE Brasil Energia S.A. Results Presentation 3Q22 | 13
Slide 14: Wind Project Under Construction
Wind Project Under Construction Santo Agostinho Wind Complex (Phase I) Overall physical progress reached 23% Wind project made feasible in the Free Contracting Environment (ACL). • Concluded the assembly of the collector substation and connection bay equipment as well as the transmission line; • Com
Slide 15: Transmission Project Under Construction
Transmission Project Under Construction Novo Estado Transmissora de Energia At the end of 3Q22, the total work progress was 95.7%. • Serra Pelada – Itacaiúnas and Serra Pelada – Miracema C1 and C2 transmission lines already in commercial operations accounting for 49% of the total RAP; • In order to
Slide 16: Transmission Project under implementation
Trasmission Project under implementation Gavião Real Transmissora de Energia Complementary to the Novo Estado Transmission GAVIÃO NOVO System, capturing synergies. ESTADO REAL • Outlook for a reduction in the total investment of approximately 30%, with anticipation of at least 24 months in startup o
Slide 17: Wind Project Under Implementation
Wind Project Under Implementation Serra do Assuruá Wind Project Wind cluster – Bahia Energy to be delivered to the Free Market, also eventually attending the Energy self-production market Campo Largo I and II • One of the ENGIE Group’s largest projects to be implemented in a single phase; Serra do A
Slide 18: 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 -26.7% 2,212 2,212 20% 676 14 95 95 538 538 Regulated 495 14 Uptime Bilateral 40% operating factor Partner
Slide 19: Projects Under Development
Projects Under Development ENGIE Brasil Energia has also a portfolio of assets under development. Assú Photovoltaic Complex – Installed RN Capacity: ~870 MW Installed Santo Agostinho Wind Capacity: 279 MW Complex (Phase II) – RN Installed Santo Agostinho Photovoltaic Capacity: ~509 MW Complex – RN I
Slide 20: Financial Performance
04 Novo Estado Transmissora Financial Performance ENGIE Brasil Energia S.A. Results Presentation 3Q22 | 20
Slide 21: 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 33.7 33.2 29.9 ❑ Total: +17
Slide 22: Net Operating Revenue Change
Net Operating Revenue Change NET OPERATING REVENUE (R$ MILLION) -18.9% 324 14 (102) (109) 3,389 (90) (677) 2 890 (2) 2,747 213 269 179 2,228 2,355 NOR 3Q21 Price and Other Financial Asset CCEE Trading Transmission1 Photovoltaic NOR 3Q22 sales volume Remuneration panels Generation and portfolio’s sal
Slide 23: 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$ 202 million via equity income to the Company’s Ebitda in the 3Q22. INCOME STATEMENT TAG (R$ MILLION) 2,159 (612) Transportadora Associa
Slide 24: Ebitda Change
Ebitda Change EBITDA (R$ MILLION) -15.7% +7.3% 51 (372) 83 188 324 (236) 1,749 (51) 1,698 (150) 58 1,661 (229) 144 1,548 (104) 121 4 1,432 1,469 144 115 152 4 37 4 152 152 202 202 202 1,457 1,406 1,406 1,377 1,340 1,340 (4) (4) (6) (4) (114) (114) Ebitda Non Adjusted IFRS* Ebitda Price and CCEE Fuel
Slide 25: Net Income Change
Net Income Change NET INCOME (R$ MILLION) +14.9% +17.2% 387 (266) (13) (4) 710 24 734 639 (33) 606 Net income 3Q21 Non recurring Adjusted net Financial result Adjusted Ebitda Depreciation Income taxes Adjusted net Non recurring Net income 3Q22 income 3Q21 and amortization income 3Q22 ENGIE Brasil En
Slide 26: 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) 20,587 19,410 3,765 16,672 664 14,437 14,980 2.8x 2.9x Total Debt / Ebitda3 2.6x 2.6x (R$ million) 2.0x 2.0x
Slide 27: Debt Profile and Composition
Debt Profile and Composition Competitive costs and defensive indexes AAA rating and robust cash generation translate into competitive BREAKDOWN OF DEBT costs of debt for financing growth. MATURITY DEBT SCHEDULE (R$ MILLION) Fixed CDI TJLP IPCA TJLP 9% 72% IPCA 3,437 Fixed 2,787 2,564 2,257 2,178 4%
Slide 28: 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) Adjusted Ebitda 7,217 6,427 Shareholder’s equity funded, including acquisitions 5,163 Debt funded
Slide 29: 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% 3.1% 1.90 100% 1
Slide 30: Supporting Data
05 Assú V Photovoltaic Complex Supporting Data ENGIE Brasil Energia S.A. Results Presentation 3Q22 | 30
Slide 31: Main Financial and Operational Indexes
Main Financial and Operational Indexes Consolidated (In millions of R$) 3Q22 3Q21 Chg. 9M22 9M21 Chg. Net Operating Revenue (NOR) 2,747 3,389 -18.9% 8,805 9,772 -9.9% Results from Operations (EBIT) 1,216 1,509 -19.4% 4,314 4,148 4.0% Ebitda 1 1,469 1,749 -16.0% 5,076 4,857 4.5% 2 -15.7% 4.8% Adjuste
Slide 32: Diversified Portfolio of Assets
Diversified Portfolio of Assets 27 32 16 33 5 18 29 20 28 32 Installed Commercial 14 15 Hydro Power Plants 9 Capacity (MW) Capacity (aMW) Installed capacity of 8,453 MW 30 13 4 1 Salto Santiago 1,420.0 733.3 27 2 Itá 1,126.91 564.71 (4,556 aMW), +1,280 MW of wind energy 22 23 17 3 Salto Osório 1,090
Slide 33: Transportadora Associada de Gás – TAG
Transportadora Associada de Gás – TAG Contracts breakdown and indebtedness DEBT PROFILE – TAG (as of September 30, 2022) Fully contracted in the regulated market for a weighted average term of approximately 8 years. Financing structure with competitive cost and protected from exchange variation - Ra
Slide 34: Transportadora Associada de Gás – TAG
Transportadora Associada de Gás – TAG Protagonism 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; • More than 50 new extraor
Slide 35: Energy Balance as of September 30, 2022
Energy Balance as of September 30, 2022 Diversified contracting with duration of about 16 years in ACR and 3 years in ACL1 (in average MW) 2022 2023 2024 2025 2026 2027 Own Resources 4,371 4,293 4,389 4,682 4,691 4,691 Auction Reference Gross Price Net Price of + Purchases for Resale 1,545 1,115 809
Slide 36: Headcount
Headcount1 NUMBER OF EMPLOYEES BY GENDER 810 1,461 18% 27% 1,185 28% Female 32% 375 Male Administrative 82% 43% 49% Renewables 58% Thermal 72% 51% 29% 10% Administrative Operations 3Q21 3Q22 BY AGE GROUP BY ACADEMIC QUALIFICATIONS 6% 3% 2% Less than 25 21% 14% 25 to 34 Post-Graduate 35% 35 to 44 40%
Slide 37: Sustainability KPIs
Sustainability KPIs1 Item Dimension2 Index Material themes GRI disclosure3 3Q22 3Q21 Change 9M22 9M21 Change 1 Operating plants 102-7, EU1 76 71 5 76 71 5 2 Installed operated capacity 102-7, EU1 10,174 10,796 -5.8% 10,174 10,796 -5.8% 3 Installed proprietary capacity 102-7, EU1 8,454 9,076 -6.9% 8,
Slide 38: Contacts
Contacts Eduardo Sattamini Marcelo Cardoso Malta Chief Executive and Investor Relations Officer Chief Financial Officer Investor Relations Team: www.engie.com.br/investidores ri.brenergia@engie.com Rafael Bósio Investor Relations Manager rafael.bosio@engie.com (48) 9 9911-0106 Adriana Wagner Caio Mi