Slide 1: Earnings Results Presentation 2Q20
Earnings Results Presentation 2Q20 August 14, 2020
Slide 2: Grid load decrease due to Covid-19, lower temperature and reduction of losses
Grid load decrease due to the effects of Covid-19, as well as lower temperature and reduction of losses Grid Load (GWh) Billed Market by segment (GWh) 6,913 620 5,837 Δ: +4.9 % Δ: -16.5 % 980 506 1,269 831 9,195 8,762 1,161 1,967 1,403 7,681 2,077 1,936 2T19 2Q19 2Q20 2T20 Residencial Comercial Indu
Slide 3: Reduction of energy losses for the second consecutive quarter
Reduction of energy losses for the second consecutive quarter Total Losses Evolution (12 months) 10,102 10,050 9,945 9,532 9,706 9,336 9,397 9,499 9,094 Loss Ex-REN Continuity of actions initiated in Aug’ 19 9,739 9,737 9,736 9,153 9,264 8,827 8,825 8,392 8,529 26,72% 26,76% 26,60% 25,86% 25,97% 26,
Slide 4: Reduction of energy losses for the second consecutive quarter (Cont'd)
Reduction of energy losses for the second consecutive quarter (Cont’d) Non-technical Losses Evolution (12 months) Non-technical Losses (GWh, 12 months) Non Technical Loss (GWh) 12 monhts 7,412 7,396 7,048 7,084 7,085 6,917 7,070 7,295 6,682 6,838 6,832 6,918 Non-Techinical 6,351 6,517 7,048 7,084 7,
Slide 5: IEN increase in line with the main pillar of the loss combat plan
IEN increase in line with the main pillar of the loss combat plan: focus on energy incorporation Recovery Energy - REN and Incorporated Energy - IEN (GWh) Bad Debt Provision / Gross Revenue (12 months) New Commercial Strategy 600 1200 943 500 868 6,6% 400 705 800 5,0% 5,4% 553 300 363 186 200 312 26
Slide 6: Historic result in quality service, in line with the top DisCos
Historic result in quality service, in line with the top and largest DisCos in the country DEC 12 months (hours) FEC 12 months (times) DEC (hours) 12 months FEC (times) 12 months 8.36 8.40 8.09 8.14 5.43 7.83 7.78 7.77 7.67 -21.4% 4.71 4.60 4.44 4.36 4.38 4.36 4.31 -21.1% 4.27 4.27 6.96 6.42 Jun-18
Slide 7: Consolidated EBITDA impacted by the effects of the pandemic
Consolidated EBITDA impacted by the effects of the pandemic on the Distribution business, despite the operational improvement Amounts in R$ mn 450 400 350 300 250 20 -276 200 385 -132 147 150 100 145 50 0 Adjusted EBITDA 1Q19 Net Revenue Non Manageable Expenses Manageable Expenses Provisions Adjuste
Slide 8: Reduction in JEC provisions due to lower new litigation
Reduction in JEC provisions due to lower new litigation for the third quarter in a row % Change Provisions (R$ MN) 2Q20 2Q19 2Q20/2Q19 JEC (21) (54) -61.9% Civil (38) (32) 18.8% Others (9) (3) 254.0% Total (68) (88) -23.4% Number of JEC processes (‘000) 25.0 24.2 21.9 21.3 22.4 18.9 20.0 20.7 19.4 1
Slide 9: Improvement in the Distribution business hurt by the effects of the pandemic
Improvement in the Distribution business hurt by the effects of the pandemic Amounts in R$ mn -230 385 +5 -14 -1 145 Adjusted EBITDA 2Q19 EBITDA Light SESA EBITDA Light Energia EBITDA LightCom Others Adjusted EBITDA 2Q20 The reduction in the DisCo’s EBITDA is due to the impacts of the pandemic, desp
Slide 10: Net Result also negatively impacted by the pandemic
Net Result also negatively impacted by the pandemic Amounts in R$ mn 11 -45 87 -240 1 96 1 2Q19 Result Adjusted EBITDA Financial Result Taxes Depreciation Equity Income 2Q20 Result Net Result impacted by the pandemic, despite the lower tax collection and improved Equity Income 10
Slide 11: Impacts of the pandemic overshadowed the DisCo's turnaround result
Impacts of the pandemic overshadowed the DisCo’s turnaround result Amounts in R$ mn DisCo’s turnaround result (1H20 vs 1H19) Estimated impacts of the pandemic +6 +37 Result -93 Impact of +R$132 -R$212 +89 million million -119 Reduction of losses PMS Reduction Contingencies Reduction PECLD Parcel B +
Slide 12: Robust cash position to face future debt maturities
Robust cash position to face future debt maturities 2Q20 Consolidated debt amortization, with subsequent events (R$ mn) Net debt (R$ mn) & Net Debt/EBITDA (x) 18000,0 3.75 3.75 3.75 3.75 3.75 4,000 Maturity: 16000,0 3.1 years 3.69 3,5000 14000,0 3,000 3500,0 3.06 3.07 3,003 12000,0 3.00 2.98 3000,0
Slide 13: Important Notice
Important Notice This presentation may include declarations that represent forward-looking statements according to Brazilian regulations and international movable values. These declarations are based on certain assumptions and analyses made by the Company in accordance with its experience. the econo
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