Engie Brasil Energia S.a. · BMFBOVESPA:EGIE3
Engie Brasil Energia — Q2 2022 Earnings Presentation
37 slides from Engie Brasil Energia's earnings presentation, Aug 3, 2022
Slide 1: Results Presentation 2Q22
ENGIE BRASIL ENERGIA Results Presentation 2Q22 August 02, 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 2Q22 | 3
Slide 4: Highlights and ESG KPIs
01 Trairi Wind Complex Highlights and ESG KPIs ENGIE Brasil Energia S.A. Results Presentation 2Q22 | 4
Slide 5: Highlights: Adjusted EBITDA and net income vs. 2Q21
Highlights Result drivers vs. 2Q21 Adjusted EBITDA1 (R$ million) + 6.9% Average net sales price +15.4% 3,774 167 + 7.9% Sales volume (+321 aMW) 3,271 +23.8% 163 1,897 R$ 279 million Higher price and sales volume 1,532 180 3,607 163 3,108 1,369 1,717 R$ 92 million Transmission segment RAP (cash effec
Slide 6: Highlights
Highlights The Company made a successful bid in the Concluded the acquisition of the Serra do Assuruá (BA), with an Aneel Transmission Auction 01/2022 for installed capacity of approximately 880 MW, for a price up to a ceiling of R$ block 7 covering the installation of one 265 million (as of May/22)
Slide 7: Highlights
Highlights Impairment of R$ 180 million registered in ENGIE Brasil Energia was one of the highlights in the Best of the 2Q22 due to advances in the negotiations ESG 2022 awards, sponsored by Exame magazine in for the sale of Pampa Sul Thermoelectric partnership with the Ibmec Business School. Power
Slide 8: ESG 2Q22 KPIs
ESG 2Q22 KPIs INSTALLED CAPACITY AND % OF RENEWABLES EMISSION INTENSITY1 (KgCO2E/MWh) TOTAL EMISSIONS1 211 5.9 200 5.5 184 95.9% 171 86.2% 95.8% 86.2% 86.6% 8,710 8,219 8,710 8,958 8,453 -99.5% 1.4 1.5 -93.3% 0.1 1 2020 2021 2Q20 2Q21 2Q22 2020 2021 2Q20 2Q21 2Q22 2020 2021 2Q20 2Q21 2Q22 Renewable
Slide 9: Energy Sales
02 Salto Santiago Hydro Power Plant Energy Sales ENGIE Brasil Energia S.A. Results Presentation 2Q22 | 9
Slide 10: 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: 2,358 aMW ENERGY BALANCE (% OF TOTAL; AVERAGE MW) Source: Internal study based on IBGE’s cl
Slide 11: Energy Commercial Strategy: Free Customers
Energy Commercial Strategy EVOLUTION OF FREE CUSTOMERS1 2,303 (-2.5% compared to 2Q21) 2,603 2,656 Consumer Units served in 2Q223 2,359 2,358 2,293 2,329 9.5% (-1.4 p.p. compared to 2Q21) 930 877 Market share ACL in 2Q22 (of total energy in Free Market) 826 855 837 682 39% Participation of Free Clie
Slide 12: Expansion
03 Jaguara Hydro Power Plant Expansion ENGIE Brasil Energia S.A. Results Presentation 2Q22 | 12
Slide 13: Wind Project Under Implementation
Wind Project Under Implementation Santo Agostinho Wind Complex (Phase I) Overall physical progress reached 19.5% Wind project made feasible in the Free Contracting Environment (ACL). • Concreting completed of all 70 wind turbine bases (100%); • Construction of the collector substation reached physic
Slide 14: Transmission Project Under Construction: Gralha Azul
Transmission Project Under Construction Gralha Azul Transmission System RAP by section (%) 94% of the total RAP effected in 2Q22 5.3% 10.1% • Full overall completion by the end of 2Q22; 6.3% • 9 transmission lines and 4 TL sectionings were energized; 9.8% • The last section to be connected will be I
Slide 15: Transmission Project Under Construction: Novo Estado
Transmission Project Under Construction Novo Estado Transmissora de Energia At the end of 2Q22, the total work progress was 93.4%. • The Serra Pelada – Miracema C1 and C2 transmission lines entered into commercial operations in April and May of 2022, then accounting for approximately 49% of the tota
Slide 16: Transmission Project: Aneel Auction 01/2022 Block 7
Trasmission Project under implementation Block 7 – Aneel Transmission Auction 01/2022 Complementary to the Novo Estado Project, BLOCK 7 NOVO generating synergies. ESTADO • Outlook for a reduction in the total investment of approximately 30%, with anticipation of at least 24 months in startup of comm
Slide 17: 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 -23.6% 2,212 2,212 20% 2,792 14 95 95 538 538 Regulated 2,134 14 Bilateral 40% Uptime operating factor Par
Slide 18: 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 19: Financial Performance
04 Novo Estado Transmissora Financial Performance ENGIE Brasil Energia S.A. Results Presentation 2Q22 | 19
Slide 20: 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 31.1 32.3 - Total: +17% - R
Slide 21: Net Operating Revenue Change
Net Operating Revenue Change NET OPERATING REVENUE (R$ MILLION) -4.4% 279 47 (9) (134) 3,133 (310) 10 (10) 2,996 776 466 164 298 2,366 2,049 NOR 2Q21 Price and Financial Asset CCEE Trading Transmission1 Photovoltaic NOR 2Q22 sales volume Remuneration panels Generation and portfolio’s sale Trading Tr
Slide 22: 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$ 160 million via equity income to the Company’s Ebitda in the 2Q22. INCOME STATEMENT TAG (R$ MILLION) 2,054 (766) Transportadora Associa
Slide 23: Ebitda Change
Ebitda Change EBITDA (R$ MILLION) +23.8% +25.3% 177 1,897 (180) 38 12 (215) 2 44 1,720 1,717 83 92 14 279 269 2 2 1,532 92 163 (159) 269 4 160 160 1,369 159 1,373 4 4 160 159 147 147 147 1,466 1,466 1,225 1,225 1,286 1,062 (3) (3) (3) Ebitda Non Adjusted Transmission Ebitda Price and CCEE Financial
Slide 24: Net Income Change
Net Income Change NET INCOME (R$ MILLION) +23.8% +20.4% 365 (225) (31) (22) 514 (119) 108 427 395 319 Net income 2Q21 Non recurring Adjusted Adjusted Ebitda Financial result Income taxes Depreciation Adjusted Non recurring Net income 2Q22 net income and amortization net income 2Q21 2Q22 ENGIE Brasil
Slide 25: 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) 21,381 4,313 20,587 16,672 725 16,342 14,437 2.8x 2.9x 2.8x Total Debt / Ebitda3 2.6x (R$ million) 2.0x 2.1x
Slide 26: Debt Profile and Composition
Debt Profile and Composition Competitive costs and defensive indexes AAA rating and robust cash generation translate into competitive costs of debt for financing growth. BREAKDOWN OF DEBT MATURITY DEBT SCHEDULE (R$ MILLION) Fixed CDI TJLP IPCA TJLP 4,249 9% 73% IPCA 3,356 Fixed 2,803 2,339 2,188 2,2
Slide 27: 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 4,367 Debt
Slide 28: 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% 1.90 100% 1.81 1
Slide 29: Supporting Data
05 Assú V Photovoltaic Complex Supporting Data ENGIE Brasil Energia S.A. Results Presentation 2Q22 | 29
Slide 30: Main Financial and Operational Indexes
Main Financial and Operational Indexes Consolidated (In millions of R$) 2Q22 2Q21 Chg. 6M22 6M21 Chg. Net Operating Revenue (NOR) 2,996 3,133 -4.4% 6,059 6,383 -5.1% Results from Operations (EBIT) 1,456 1,132 28.6% 3,098 2,639 17.4% Ebitda 1 1,717 1,369 25.4% 3,607 3,108 16.1% Adjusted Ebitda 2 1,89
Slide 31: Diversified Portfolio of Assets
Diversified Portfolio of Assets 29 31 16 32 5 18 28 20 27 31 Installed Commercial 14 15 Hydro Power Plants 9 13 Capacity (MW) Capacity (MWm) 4 1 Salto Santiago 1,420.0 733.3 29 2 Itá 1,126.91 564.71 Installed capacity of 8,441 MW 22 23 17 3 Salto Osório 1,078.0 502.6 (4,556 aMW), +434 MW of wind ene
Slide 32: Transportadora Associada de Gás – TAG
Transportadora Associada de Gás – TAG Contracts breakdown and indebtedness DEBT PROFILE – TAG (as of June 30, 2022) Fully contracted in the regulated market for a weighted average term of approximately 9 years. Financing structure with competitive cost and protected from exchange variation - Rating
Slide 33: 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 34: Energy Balance as of June 30, 2022
Energy Balance as of June 30, 2022 Diversified contracting with duration of about 17 years in ACR and 4 years in ACL1 (in average MW) 2022 2023 2024 2025 2026 2027 Own Resources 4,386 4,535 4,702 4,988 4,995 4,995 Auction Reference Gross Price Net Price of + Purchases for Resale 1,508 1,070 799 333
Slide 35: Headcount
Headcount1 NUMBER OF EMPLOYEES BY GENDER 783 1,473 16% 26% 1,148 26% Female 32% 365 Male Administrative 84% 45% 47% Renewables 58% Thermal 74% 53% 29% 10% Administrative Operations 2Q21 2Q22 BY AGE GROUP BY ACADEMIC QUALIFICATIONS 7% 3% 2% Less than 25 21% 14% 25 to 34 Post-Graduate 34% 35 to 44 41%
Slide 36: Sustainability KPIs
Sustainability KPIs1 Item Dimension2 Index Material themes GRI disclosure3 2Q22 2Q21 Change 6M22 6M21 Change 1 Operating plants 102-7, EU1 76 68 8 76 68 8 2 Installed operated capacity 102-7, EU1 10,174 10,679 -4.7% 10,174 10,679 -4.7% 3 Installed proprietary capacity 102-7, EU1 8,453 8,958 -5.6% 8,
Slide 37: Contacts
Contacts Eduardo Sattamini Marcelo Cardoso Malta Chief Executive and Investor Relations Officer Chief Financial Officer Investor Relations Team: www.engie.com.br/investidores Rafael Bósio Investor Relations Manager rafael.bosio@engie.com (48) 9 9911-0106 Adriana Wagner Caio Miralles Investor Relatio