Slide 1: Results 1Q20
RESULTS 1Q20 June 2020 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements, which are subject to risks and uncertainties, as they were based on the expectations of Company’s management and on available information. These prospects include statements concerning the Company’s current intensions or expectatio
Slide 3: Highlights 1Q20
Highlights Consolidated Adjusted EBITDA reached R$ 1.1 billion on the quarter. 1Q20 Equatorial ended the quarter with R$ 5.7 billion in consolidated cash. Distribuição • Losses reduction in 3 out of 4 DisCos. • FEC: All DisCos compliant to the regulatory levels. Consolidated billed volume grows 6.2%
Slide 4: Updates
Updates 4
Slide 5: Covid Account
Covid Account Coverage: I – Overcontraction financial effects; II – Regulatory Assets being accrued; III – Sector charges neutrality; IV – postponement of tariff adjustments until June 30, 2020; V – Regulatory Assets under amortization; VI – Tariff deferral prior to ANEEL’s Decision; VII – Parcel B
Slide 6: Raising Initiatives
Raising Initiatives Delivery Payment Campaign “Energia em Dia” Website payment Bank Slip Payment 6
Slide 7: Digital
Digital Interactions with Clara – Whatsapp Virtual Attendant Site in numbers (000’s) (000’s) MARANHÃO 600 Interactions Monthly Mean Monthly Mean +53% Var. % (thousands) Before Covid After Covid 500 +108% Services 400 Requested1 7 49 + 547% Alagoas 300 Piauí Viewed Maranhão Informations2 216 374 + 73
Slide 8: Operational Performance
Operational >—>- Performance \
Slide 9: Energy Market
Energy Sales evolution by DisCo (captive + free) GWh +6.2% Market +7.3% +5.3% +6.9% 5,581 +5.0% 5,256 1T19 1Q19 Maranhão Pará Piauí Alagoas 1Q20 1T20 Sales evolution by segment (captive + free) GWh +6.2% +5.3% +10.4% +4.9% 5,581 +3.4% +7.9% 5,256 1T19 1Q19 Residential Residencial Industrial Commerci
Slide 10: Energy Market
Energy Injected energy evolution per DisCo GWh +3.6% Market +3,5% -0,8% +5,3% +5,3% 7.338 7.083 1T19 1Q19 Maranhão Pará Piauí Alagoas 1T20 1Q20 Low income evolution # of consumers 20.2% (+ 322) +54.2% + 86 1,920 +10.8% +25.1% + 38 + 118 +13.0% + 81 1,598 1Q19 1T19 Maranhão Pará Piauí Alagoas 1Q20 1T
Slide 11: Operational Data
Operational Data Injected Energy April + May Chg. 20/19 Maranhão Pará Piauí Alagoas Consolidated -0,1% -1,6% -3,0% -5,7% -8,2% Billed April + May Chg. 20/19 Maranhão Pará Piauí Alagoas Consolidated -0,9% -1,7% -2,2% -2,8% -5,4% 11
Slide 12: Operational Data
Operational Data Low Income Consumers # of consummers Mar/20 +/- May/20 % (thousands) Maranhão 702 56 758 8.1% Pará 587 91 678 15.5% Piauí 387 25 412 6.6% Alagoas 245 51 296 20.7% Consolidated 1,921 223 2,144 11.7% • Possibility to register for low income through WebSite and WhatsApp; • Full Tariff
Slide 13: Total losses over injected energy
Total losses over injected energy L o s s e s i n P i a u í d r o p f o r t h e 4 th c o n s e c u t i ve q u a r t e r . Total Losses Regulatory Target Maranhão Pará 18.3% 18.3% 18.0% 18.0% 18.0% 27.5% 27.5% 27.5% 18.0% 18.0% 26.8% 26.8% 17.7% 17.8% 17.3% 29.2% 30.1% 30.3% 30.1% 29.5% 1T19 2T19 3T1
Slide 14: DEC
DEC M a r a n h ã o a n d P a r á b e a t i n g t h e t a r g e t . P i a u í a n d Al a g o a s a r e a f f e c t e d b y a n a d j u s t m e n t in the calculation methodology Maranhão 8th place in Aneel’s Quality Rank Pará 2nd place in Aneel’s Quality Rank 28.5 28.5 28.5 28.5 27.6 17.3 17.3 17.3
Slide 15: FEC
FEC Al a g o a s I n d e x b e l o w r e g u l a t o r y l e v e l s . . Maranhão Pará 10.8 10.8 10.8 10.8 10.8 23.4 23.4 23.4 23.4 22.2 6.7 14.5 14.1 6.5 6.4 6.6 13.5 12.2 11.7 5.5 1T19 2T19 3T19 4T19 1T20 FEC Regulatory Target 1T19 2T19 3T19 4T19 1T20 Piauí 14.0 14.0 14.0 14.0 Alagoas 14.1 13.3 13
Slide 16: Financial Performance
Financial <\’77 7 ON Performance
Slide 17: Manageable Expenses
Manageable Expenses P i a u í a n d Al a g o a s p r e s e n t i n g r e c u r r i n g c o s t s b e l o w r e g u l a t o r y. . Maranhão Pará +1,7% INPC -3,6% 12 months 2.92% 117 122 115 118 IPCA 12 months 2.89% 1T19 1T20 1T19 1T20 OPEX per consumer 1Q20 Piauí Alagoas Maranhão Pará -7,0% -34,1% R$
Slide 18: EBITDA
EBITDA P i a u í a n d Al a g o a s p r e s e n t i n g p o s i t i v e Ad j u s t e d E B I T D As Maranhão Pará +13,5% 4 +56,3% 15 13 223 17 296 187 182 1T19 1T20 1T19 1T20 Piauí Alagoas Financial Asset Update(VNR) +51,4% 1 54 53 35 -127 1T19 1T20 1T19 1T20 18
Slide 19: Equatorial Consolidated
Equatorial Consolidated Adjusted EBITDA on the quarter (R$ Mn) 62 +77% 26 1.069 1,149 578 604 Reported EBITDA EBITDA 1Q20 Reportado 1T19 Ajustes Adjustments EBITDA Ajustado Adjusted 1T19 EBITDA 1Q20 EBITDA Ajustado Adjusted EBITDA 1T20 1Q20 Ajustes Adjustments EBITDA Reportado Reported 1T20 EBITDA 1
Slide 20: Debt
Debt Cons. Net Debt and Net Debt/EBITDA LTM Pro-rata Net Debt and Net Debt/EBITDA LTM (R$ Mn)1 (R$ Mn)2 12.0 3.8 4.0 3.6 3.9 3.8 12.0 4.2 3.7 4.1 10.0 3.4 3.6 3.5 4.0 3.9 3.4 10.0 3.8 3.7 3.3 3.6 8.0 3.2 3.1 4.0 3.5 3.0 3.4 3.3 2.6 2.9 8.0 3.7 3.6 3.2 2.8 3.1 3.0 2.7 2.9 6.0 2.6 2.8 2.5 6.0 2.7 2.2
Slide 21: Investments
Investments Main Investments - Quarter (R$ Mn) 1 34 276 101 302 937 814 626 410 1T19 1T20 Transmission Transmissão Distribution- -Próprio Distribuição Own Distribution--PLPT Distribuição PLPT Outros Others Main Investments – Yearly History (R$ Mn) 2017 207 1051 235 15 1,508 2018 778 916 315 42 2,051
Slide 22: Thank You
Thank Yous; 22