Engie Brasil Energia S.a. · BMFBOVESPA:EGIE3
Engie Brasil Energia — Q1 2023 Earnings Presentation
39 slides from Engie Brasil Energia's earnings presentation, May 5, 2023
Slide 1: ENGIE Brasil Energia Results Presentation 1Q23
ENGIE BRASIL ENERGIA RESULTS PRESENTATION 1Q23 May 4, 2023
Slide 2: Disclaimer
Results Presentation 1Q23 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 potential in
Slide 3: Contents
Results Presentation 1Q23 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 1Q23 1. Highlights and ESG KPIs Umburanas Wind Complex ENGIE Brasil Energia S.A. 4
Slide 5: Highlights: EBITDA and net income vs. 1Q22
Results Presentation 1Q23 Result drivers vs. 1Q22 Highlights EBITDA1 (R$ million) R$ 100 million Transmission segment RAP (cash effect) R$ 86 million Increase of 3.1% in price and 1.0% in sales volume +9.1% R$ 75 million TAG contribution 2,064 1,891 R$ 37 million CCEE Net Result R$ 20 million Lower
Slide 6: Highlights
Results Presentation 1Q23 Highlights In February, the Company energized the final stretch of the Fitch Ratings reaffirmed the Long-Term National Rating Gralha Azul Transmission System and concluded the in ‘AAA(bra). The long-term international ratings in foreign implementation and energization of th
Slide 7: Highlights: complementary dividends
Results Presentation 1Q23 Highlights Approved the distribution of complementary dividends for the fiscal year of 2022 in the amount of R$ 1,455.2 million (R$ 1.7834/share). Shares will trade ex-dividends from May 09, 2023 and the payment date will be decided upon later by the Management Board. Trair
Slide 8: Highlights: Sustainability Report 2022
Results Presentation 1Q23 Highlights The launch of Sustainability Report 2022, an important management tool for rendering accountability to the stakeholders, compliant with Global Reporting Initiative (GRI) and with Bureau Veritas Assurance. In this edition, the highlights were: • Deepening the Clim
Slide 9: ESG KPIs
Results Presentation 1Q23 ESG KPIs INSTALLED CAPACITY AND % OF RENEWABLES EMISSION INTENSITY (KgCO2e/MWh) TOTAL EMISSIONS (million of tCO2e) 184 5.5 95.9% 95.9% 95.9% 160 95.8% 86.3% 8,219 8,453 8,790 8,453 8,460 75 1.6 34 1.1 0.4 1 0.1 2021 2022 1Q21 1Q22 1Q23 2021 2022 1Q21 1Q22 1Q23 2021 2022 1Q2
Slide 10: 2. Energy Sales
Results Presentation 1Q23 2. Energy Sales Gralha Azul Transmission System ENGIE Brasil Energia S.A. 10
Slide 11: Energy Commercial Strategy
Results Presentation 1Q23 Energy Commercial Strategy Portfolio diversification and gradual sale of future energy availability, with reserve preservation to protect against hydrological risk Energy Balance (% of total; in aMW) | as of March 31, 2023 Free customers total sales volume for 2023: 2,176 a
Slide 12: Energy Commercial Strategy: Evolution of free customers
Results Presentation 1Q23 Energy Commercial Strategy Evolution of free customers¹ 2,603 2,656 2,388 2,378 2,329 2,176 982 968 930 (+10.2% compared to 1Q22) 877 Participation of Free Clients 826 784 Consumer Units served in out of total physical sales in 1Q232 1Q23 +5.9% p.y. +23.5% (-0.4 p.p. compar
Slide 13: 3. Expansion
Results Presentation 1Q23 3. Expansion Santo Agostinho Wind Complex (Phase I) – Construction works ENGIE Brasil Energia S.A. 13
Slide 14: Wind Project Under Construction
Results Presentation 1Q23 RN Wind Project Under Construction Santo Agostinho Wind Complex (Phase I) Overall physical progress reached Wind project made Lajes and Pedro Avelino (RN) - Phase I feasible in the Free Contracting Total Start of Installed construction: Environment Capacity: 2021 (ACL). Win
Slide 15: Transmission Project Under Implementation
Results Presentation 1Q23 PA Transmission Project Under Implementation Gavião Real Transmissora de Energia Complementary to the Novo Novo Estado Gavião Real Estado Transmission System, Contracted Concession RAP1: period: Gavião Real Transmissora de Energia: integrated to Novo Estado Transmission Sys
Slide 16: Wind Project Under Implementation
Results Presentation 1Q23 BA Wind Project Under Implementation Serra do Assuruá Wind Project Wind cluster – Bahia Campo also eventually Largo I and II Gentio do Ouro (BA) attending the self-production Serra do Assuruá Umburanas energy market. Total Start of Installed construction: BA Capacity: 2023
Slide 17: Photovoltaic Project Under Implementation
Results Presentation 1Q23 RN Photovoltaic Project Under Implementation Assú Sol Photovoltaic Complex Assú Sol Floresta Energy to be entirely delivered to the Assú V Assú (RN) Assú Sol RN Total Start of Installed construction: Capacity: 3Q23 ~752 MW Commercial Full Capacity: commercial Assú Sol Photo
Slide 18: Expansion: Jirau HPP update
Results Presentation 1Q23 Expansion Jirau HPP | update aMW MW Generating MW each Physical Guarantee1 Installed Capacity Units Production (average MW)2 PPA’s Portfolio (average MW) Shareholding Structure -34.6% 2,102 2,102 2,102 2,102 2,102 3,089 14 99 99 99 99 99 20% 00 538 0 402 424 Uptime 22 14 14
Slide 19: Projects Under Development
Results Presentation 1Q23 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 Photovol
Slide 20: 4. Financial Performance
Results Presentation 1Q23 4. Financial Performance Estreito Hydro Power Plant ENGIE Brasil Energia S.A. 20
Slide 21: Solid Financial Performance From 2016 – 2022
Results Presentation 1Q23 From 2016 – 20223: Solid Financial Performance Stability and predictability of results due to good portfolio management and Investments: diversification into other segments, which brought greater exposure to regulated businesses - such as transmission, natural gas transport
Slide 22: Net Operating Revenue Change
Results Presentation 1Q23 Net Operating Revenue Change NET OPERATING REVENUE (R$ MILLION) -4.9% 3,062 86 (29) (7) (64) (128) 7 (7) 2,913 502 374 165 101 Generation and portfolio’s sale Trading 2,388 2,438 Transmission Photovoltaic panels NOR 1Q22 Price and CCEE Financial asset Trading Transmission1
Slide 23: Result of Equity Income
Results Presentation 1Q23 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) 2,354 (637) Stake of 32.5% in TAG Transportadora Associada de Gás - TAG (26) (528) contributed with R$ 248 million via
Slide 24: Ebitda Change
Results Presentation 1Q23 Ebitda Change EBITDA (R$ MILLION) +9.1% 170 2,064 +13.1% 1,891 (217) 75 1,894 287 37 20 (21) 100 117 (77) 234 86 1,674 17 248 248 173 173 1,484 1,484 1,529 1,529 Ebitda IFRS* Ebitda Price and CCEE Fuel Purchase Charges, Transmission Equity Ebitda IFRS* Ebitda 1Q22 transmiss
Slide 25: Net Income Change
Results Presentation 1Q23 Net Income Change NET INCOME (R$ MILLION) +36.7% 104 22 (62) 882 173 645 Net income 1Q22 Ebitda Financial result Depreciation Income taxes Net income 1Q23 and amortization ENGIE Brasil Energia S.A. 25
Slide 26: Balanced Debt
Results Presentation 1Q23 Balanced Debt With no currency exposure DEBT OVERVIEW (R$ MILLION) 20,587 18,150 18,428 2,942 16,672 2.9x 271 15,216 Total Debt / Ebitda3 Debt control, active 2.6x 2.6x 2.6x management of debt costs (R$ million) 2.3x and sound investment 2.0x 2.1x decisions ensure low level
Slide 27: Debt Profile and Composition
Results Presentation 1Q23 Debt Profile and Composition Competitive costs and defensive indexes MATURITY DEBT SCHEDULE (R$ MILLION) BREAKDOWN OF DEBT 3,361 2,645 77% IPCA 2,526 AAA rating and robust cash 2,151 2,217 generation translate into 1,531 1,659 competitive costs of debt for 1,104 911 14% fin
Slide 28: CAPEX
Results Presentation 1Q23 CAPEX ALLOCATED/EXPECTED CAPEX AND CORRESPONDING FINANCING RESOURCES (R$ MILLION) 7,217 6,941 6,427 5,163 6,359 The expansion plan and 4,903 5,034 maintenance CAPEX are supported by a strong cash 4,013 flow generation and prudent 3,407 3,150 funding strategy. 5,180 814 3,64
Slide 29: Dividend Policy
Results Presentation 1Q23 Dividend Policy DIVIDENDS (BASED ON DISTRIBUTABLE NET INCOME) • By-law minimum 3.32 2.79 payout: 30% of payable 2.45 2.50 2.47 net income 7.1% 6.3% 8.6% 9.2% 8.1% 6.1% 5.7% 6.2% • Management 3.5% 3.7% 3.5% 1.90 1.81 1.82 1.53 100% 100% 100% 100% 100% 100% 100%2 100% Commitm
Slide 30: 5. Supporting Data
Results Presentation 1Q23 5. Supporting Data Assú V Photovoltaic Complex ENGIE Brasil Energia S.A. 30
Slide 31: Key Performance Indicators
Results Presentation 1Q23 Key Performance Indicators Consolidated (In millions of R$) 1Q23 1Q22 Chg. Net Operating Revenue (NOR) 2,913 3,062 -4.9% Results from Operations (EBIT) 1,837 1,641 11.9% 1 Ebitda 2,064 1,891 9.1% Non-recurrent effects adjusted Ebitda 2 1,894 1,674 13.1% Notes: Ebitda / NOR
Slide 32: Diversified Portfolio of Assets as of Mar 31, 2023
Results Presentation 1Q23 Diversified Portfolio of Assets as of Mar 31, 2023 28 30 35 30 5 16 32 27 18 34 20 31 Installed Commercial 14 Hydro Power Plants Installed capacity of 8,459.5 MW (4,347 aMW), 9 33 13 15 Capacity (MW) Capacity (aMW) 4 28 1 Salto Santiago 1,420.0 702.2 +2,026 MW of wind and s
Slide 33: Transportadora Associada de Gás – TAG
Results Presentation 1Q23 Transportadora Associada de Gás – TAG Contracts breakdown and indebtedness DEBT PROFILE – TAG1 (as of March 31, 2023) Fully contracted in the regulated market for a weighted average term of approximately 8 years. Financing structure with competitive cost and protected from
Slide 34: Transportadora Associada de Gás – TAG
Results Presentation 1Q23 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 • 16 clients (including Petrobras) from 11 different economic
Slide 35: Energy Balance as of March 31, 2023
Results Presentation 1Q23 Energy Balance as of March 31, 2023 Diversified contracting with duration of about 16 years in ACR and 4 years in ACL1 (in average MW) 2023 2024 2025 2026 2027 2028 Own Resources 4,087 4,195 4,676 4,718 4,718 4,718 Auction Reference Gross Price Net Price of + Purchases for
Slide 36: Headcount
Results Presentation 1Q23 Headcount1 Number of Employees By gender 821 1,221 18% 1,129 28% 33% 32% Administrative 400 Renewables 49% 82% Female 58% 57% Thermal 72% Male 51% 10% 10% Administrative Operations 1Q22 1Q23 By age group By academic qualifications 4% 0% 5% 22% 14% Less than 25 Post-Graduate
Slide 37: Sustainability KPIs
Results Presentation 1Q23 Sustainability KPIs1 2 3 Item Dimension Index Material themes GRI disclosure 1Q23 1Q22 Change 1 Operating plants EU1 77 76 1 2 Installed operated capacity EU1 10,181 10,174 0.1% 3 Installed proprietary capacity EU1 8,460 8,453 0.1% 4 Number of certified plants EU6 11 11 0 5
Slide 38: Contacts
Results Presentation 1Q23 Contacts Chief Executive and Investor Relations Officer Chief Financial Officer Investor Relations Team: www.engie.com.br/investidores Rafael Bósio ri.brenergia@engie.com Investor Relations Manager rafael.bosio@engie.com (48) 9 9911-0106 Adriana Wagner Caio Miralles Investo
Slide 39: www.engie.com.br
——— CNGIC www.engie.com.br