Axia Energia Sa · BMFBOVESPA:AXIA3
Axia Energia Sa — Brazilian Electric Power — Investor Presentation (August 2014)
41 slides from Axia Energia Sa's investor presentation, Aug 27, 2014
Slide 1: Presentation to Analysts and Investors
Presentation to Analysts and Investors August 2014
Slide 2: Forward looking statements
This presentation may contain forward looking statements, Such statements are not statements of historical facts but reflect the beliefs and expectations of our management and may constitute forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and S
Slide 3: General Information
ZF General Information » Expansion » Performance » Operating Performance » Financial Performance » Business and Management Plan é Eletrobras
Slide 4: General Information
- LP » General Information — Eletrobras @é
Slide 5: Generation, Transmission, Distribution
+ GENERATION * TRANSMISSION * DISTRIBUTION LARGEST ELECTRIC POWER COMPANY IN| ———™WEROAI ATION _ LATIN AMERICA PROGRAMS + UGHT FOR ALI— Luz para Todos * ENERGY CONSERVATION— PROCEL * ALTERNATIVE SOURCES — PRO!
Slide 6: Corporate Governance
Corporate Governance Maximization of ‘company values Performance Improvement Better access () to capital e Contribution e towards continuity © ‘Alignment of interests Corporate Governance CGPAR IBGC cv, >, SEC <» Pry. DEST Corporate Governance Corporate Governance practices Bylaws Policies Internal
Slide 7: Corporate Sustainability Index
Corporate Sustainability Index MEMBER OF Indice de Dow Jones at mpreseral I SE = Sustainability Indices 2014 g In Collaboration with RobecoSAM «® For the sixth consecutive year, Eletrobras was listed in the new DISI Bletouras INE Brates the Corporate Emerging Markets Index, created to indicate Susta
Slide 8: Eletrobras System
Eletrobras System Eletrobras Cepel (400.00%) Eletrobras Eletrobras ney Eletrobras Eletronorte 1 Eletrobras BINAGIONAL “(aoo.c0%) Eletropar (89.47%) [sPEs} Eletronyciear (os.71%) rogue (30.00%) rr élica Mangue Seco 2 Eletrobras cuts Distribuigso Acre ey ne > ese = letrobras Chest Eletrobras 2 (45.00%
Slide 9: Expansion
7 LP » Expansion — Eletrobras @é
Slide 10: Generation installed capacity by company
Company Own(a) SPEs (b) Total (a+b) Physical Aggregation 2014 Not Renewed O&M Furnas 4,645 4,617 1,458 10,720 Chesf 1,403 9,212 10,858 Eletronorte 9,272 9,471 Itaipu 7,000 7,000 Eletronuclear 1,990 1,990 CGTEE Eletrosul Eletrobras Amazonas 2,204 2,204 Rondônia Total 27,785 13,907 1,985 43,677 SPEs =
Slide 11: Generation Projects Under Construction in 06/30/2014
Generation Projects Under Construction in 06/30/2014 ubatuba, $a Sete coia ios, Pitombeira e Horizonte a Teles Pires os @ —_ 1,820 MW Jan-15 Ventos de Santo ‘Santo Anténio @ TO Be: ‘Augusto e Santa Joana 3,568 MW \ 390 MW 1,854 MW operatiny A ‘Sep-15 ik Casa Nova 1 180 MW 675 MW operatiny Dec-14 Bar
Slide 12: Basics Studies and Projects — Generation
Basics Studies and Projects — Generation jects 1,479 MW 1 Project 350 MW 2 Projects 596 MW 6 Projects : 1,412.2 MW a 5 Projects 483 MW 2 Projects 2,200 MW . = - Main Projects ese ‘5. Luiz do Tapajos: PA 8,040 MW. a Installed a Jatoba PA 2,338 MW Rewer USE) copay 2 Masse PA 1,850MW Basic Project 04 3
Slide 13: Transmission lines by company
Company Own(a) SPEs (b) Total (a+b) Physical Aggregation 2014 Not Renewed O&M Furnas 16,389 1,024 18,209 Chesf 1,107 17,788 1,042 19,937 Eletronorte 8,690 10,260 Eletrosul 1,302 7,919 9,513 Amazonas - - - Total 4,250 50,786 3,248 58,284 SPEs = proportional share of Eletrobras
Slide 14: Transmission Lines — Main Projects under Construction
Eletrobras Transmission Lines — Main Projects under Construction in 06/30/2014 UT Eletrobras System — ---- LTs Eletrobras System with Partnership: —— == ts other companies — @ Rio Parana Complex Q Bio Paranapanema Complex G Ro Grande Complex @ Bo Paranaiva Complex © Pauio Afonso Complex FullParticip
Slide 15: Distribution companies description
Description DC Acre DC Alagoas D C Amazonas DC Piauí DC Rondônia DC Roraima Total Increase 2014 Extension of Distribution Lines Km 19,248 40,789 44,462 86,306 57,652 3,487 251,944 3,569 Number of Customer Assisted 237,728 998,667 848,613 1,121,174 569,757 100,546 3,876,485 72,525 Number of cities at
Slide 16: Distribution Lines Extension - Km
Distribution Lines Extension - Km SS Bice Amazonas [Bh Alagoas Piaui " Rondénia 1) roraima Number of Customers 14
Slide 17: Performance
7 LP » Performance — Eletrobras @é
Slide 18: Operational Performance
xg os a » Operational Performance fé — Eletrobras
Slide 19: Eletrobras Companies Generated Energy
Eletrobras Companies Generated Energy (GWh) 1S14 1S13 Variation Eletronorte 28,370 27,101 1,269 Chesf 14,514 17,804 3,290 Furnas 13,864 13,529 Eletrosul Eletronuclear 8,008 6,298 1,710 CGTEE 1,246 1,656 Itaipu Binacional 45,313 50,013 4,700 Amazonas Energia 3,026 2,932 DC Rondônia Holding Eletrobras
Slide 20: Distribution energy sales by class
Classes DC Acre DC Alagoas DC Amazonas Energia DC Piauí DC Rondônia DC Roraima 1S14 1S13 % Industrial 22,369 282,933 871,086 237,311 257,612 7,755 1,679,066 1,469,576 14.3% Residential 197,317 664,063 940,135 673,700 554,006 181,072 3,210,293 2,907,869 10.4% Commercial 95,431 370,124 621,438 310,299
Slide 21: Performance — Distribution — Losses
Performance — Distribution — Losses - Global Losses on Injected Energy of Distributors Companies 2009 2010 2011 2012 2013 Jun/14 Due to the methodology, it has been considered the non-billed income and the corresponding loss. SS .
Slide 22: Investment
Investment June 2014 Budget Realized Generation 6,930 2,178 Corporate Expansion 2,973 SPEs Expansion 3,091 1,247 Maintenance Transmission 4,294 2,004 Corporate Expansion 2,512 1,004 SPEs Expansion 1,168 Maintenance Distribution 2,082 Corporate Expansion 1,807 Maintenance Others Research, Infra Struc
Slide 23: Financial Performance
@ — Eletrobras
Slide 24: Eletrobras Systems Result
Eletrobras Systems Result — RS million Evolution of the Results in 2014 -105 1Q14 2014 1814 Does not include the proportionate share relating to non-controlling. a .
Slide 25: Consolidated
CONSOLIDATED 1S14 1S13 %
Slide 26: Gross Revenue by segment
a) Generation Supply for Distributors 5,558 4,724 17.7% Supply 1,666 1,666 0.0% CCEE 2,718 1,489 82.5% Operation and Maintenance Revenue 0.7% Construction Revenue 75.2% Itaipu Transfer 135.7% b) Transmission Return on Investment fees 1,154 1,088 6.1% O&M Revenue 32.2% Construction Revenue 8.6% c) Di
Slide 27: EBITDA
EBITDA 1S14 1S13 % Period Result 562% + Income Tax and Social Conntribution Provision - 87 - 651% + Financial Result - 708 - 101% + Amortization and Depreciation 09% = EBITDA 2,152 4,117%
Slide 28: Consolidated Balance
Consolidated Balance 2014 Moviment 2014 2013 2012 2Q14 1Q14 Transmission Contract 061/2001 Contract 062/2001 1407 Others 1,160 1,491 Generation Itaparica 1,019 Jirau 1,608 Camaçari Termonorte II Funil Complex Paulo Afonso Coaracy Nunes Others 1,288 2,319 3,665 TOTAL 2,448 3,224 5,156
Slide 29: Results by generation and transmission company
Company Net Operating Revenue Service Result Profit/loss of Period EBITDA Margin EBITDA 1S14 1S13 1S14 1S13 1S14 1S13 1S14 1S13 1S14 1S13 Furnas 2,940 2,072 1,023 34.8% 14.6% Chesf 1,730 2,186 (51) (679) (265) (39) (596) (2.3%) (27.3%) Eletronorte 3,186 2,274 1,606 1,273 1,543 1,888 1,519 59.3% 66.8
Slide 30: Results by distribution company
Company Net Operating Revenue Service Result Profit/Loss of Period EBITDA Margin EBITDA 1S14 1S13 1S14 1S13 1S14 1S13 1S14 1S13 1S14 1S13 Amazonas Energia 1,643 1,271 (89) (132) (624) (336) (37) (57) (3.7%) (4.5%) EDE Alagoas (114) (131) (151) (142) (98) (117) (30.1%) (27.6%) EDE Piauí (110) (14) (1
Slide 31: Parent Company Result
Parent Company Result- R$ million 209 45 82 1s14 881 oO 456 7 1813 o32 831 = 20 —— 18 1,694 oo__ Equity Transfer Net Financing Net Monetary Net Exchange Chages on ‘Others Taxes Net Income Participation —_—Itaipu revenue Adjustments Adjustments Shareholders Funds Financial Result ae .
Slide 32: Consolidated Equity Structure
Consolidated Equity Structure The Consolidated Assets R$ 141.8 billion SEED Liabilities Investment/Fixed Asset J Equity shareholders Financial Asset - Concession [i Provisions for Contingencies Others Reimbursement Right [fl] Reimbursement obligations Indemnities i | ‘Suppliers ‘Securities RGR Se Re
Slide 33: Capital Structure
Capital Structure Common Shares Preferred Shares 80.4% 19.6% Residents: Il Federal Government I envespar _ BNDES "Government Funds and CEF © Minorities a *
Slide 34: Net debt
Total: R$ 32.8 billion R$ 25.0 billion (-) Cash + Securities R$ 9.3 billion (-) Receivables Financing without RGR (=) Net Debt without RGR BL
Slide 35: Financial debt
Total: R$ 20.6 billion Financial Xx foe
Slide 36: Sources
Sources \ Receivable R$ 28.3 ‘Own Resources 17.2 10.8 SES 27, 0.3 0.4 Real US Dollar Others @receivable _@payable 33
Slide 37: Financing receivable from Itaipu
Financing receivable from Itaipu — R$ million 2,225 1,867 1550 1558 1568 1579 1,592 1,606 1 713 l 118 - F = 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Se 6
Slide 38: Business and Management Plan
Ge 4 » Business and Management Plan dé —— Eletrobras
Slide 39: Operating Efficiency, Sustainable Expansion
Operating Sustainable Efficiency Expansion
Slide 40: Sustainable Expansion and Operating Efficiency Improvement
Sustainable Expansion Operating Efficieny Improvement Optimization in Expenses/ Electric System Quality Management O&M Performance Improvements Business Model / Management Corporate Organizational Management/Corp. gov oe Gov. Model paper Management |} Management 37
Slide 41: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: August 26, 2014 CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS By: / S / Armando Casado de Arauj
Brazilian Electric Power — Investor Presentation (August 2014) on 6ix