Transmissora Alianca De Energia Eletrica S.a. · BMFBOVESPA:TAEE3
Transmissora Alianca De Energia Eletrica — Taesa — Investor Presentation (November 2024)
26 slides from Transmissora Alianca De Energia Eletrica's investor presentation, November 2024
Slide 1: Corporate Presentation
Corporate Presentation November 2024
Slide 2: Disclaimer
Disclaimer The individual and consolidated financial The results are presented in both IFRS variations, such as changes in market projections were prepared in accordance and Regulatory formats, allowing conditions, the performance of the with accounting practices adopted in comparison with previous
Slide 3: Mission, Vision and Values
Mission Vision We connect Brazil with safe To be the electric power transmission and reliable electric power. company of greatest Value to society. Values We genuinely care for people. We act with integrity building relationships of trust. We seek excellence in everything we do. We are TAESA!
Slide 4: Company Overview
Company Overview 1 • TAESA’s proven growth history 2 • Geographic footprint and operating highlights 4
Slide 5: Proven growth history
1 Proven growth history 2006 2007 2008 2011 2012 2013 2017 2019 2020 TSN GTESA ETEO NTE UNISA1 (50%) TBE (~49%) Transmineiras Transmineiras (25%) São Pedro Novatrans PATESA UNISA1 (50%) Transmineiras (5%) (25%) Brasnorte (61%) São João Munirah Brasnorte (39%) ETAU (23%) Lagoa Nova Brownfield ETAU (5
Slide 6: TAESA currently possesses concessions across all regions of Brazil
2 TAESA currently possesses 44 concessions across all regions of Brazil Presence in 18 44 5 Tangará states and FD concessions operational bases 15.1k km (3.4x Brazil’s length) 4,394 km of transmission lines: 14.4k km operational and 735 km under construction 99.5% 1.7% YTD Line Availability YTD Vari
Slide 7: Investment Thesis
Investment Thesis Favorable sector dynamics that allow for predictable 1 cash flow generation Creating value for shareholders through greenfield and 2 brownfield investments 3 Portfolio of high-quality assets and best-in-class operations Solid financial performance throughout the years 4 consistentl
Slide 8: Favorable sector dynamics that allow for a predictable cash flow generation
1 Favorable sector dynamics that allow for a predictable cash flow generation 3 4 Contracted, long-term Inflation-protected revenues 1 Contracted revenues (RAP) are inflation- 30-year contract terms protected by the IPCA or IGP-M indices. 2 5 Revenue sources No demand risk ▪ Auction of new projects
Slide 9: Creating value for shareholders with attractive returns
2 Creating value for shareholders with attractive returns R$ 1.1 billion in RAP captured between 2020-2023, and another R$ 441 million contracted to become operational in the next years (%) 80 Competitive Optimized funding and tax corporate and efficiency tax structures Miracema Aimorés Hedging to S
Slide 10: Greenfield projects totaling R$ 441 million in revenues with accretive returns
2 Greenfield projects totaling R$ 441 million in revenues with accretive returns 743 km The final installation license obtained for Tangará referring to LT RS Saíra RAP/CapEx1: 182.0 / 1,176 Progress2 Açailândia – Dom Eliseu II 87.1% 100% Taesa ANEEL’s Deadline: Mar/28 Concession Maturity: Mar/53 Pi
Slide 11: Success at the last ANEEL Auction 02/2024
2 Success at the last ANEEL Auction 02/2024 Lot 3 – Juruá Located in the center of São Paulo state Proximity to our ATE and ETEO concessions Important operational efficiencies Concession in a strategic region with high growth potential via reinforcements Located in a high consumption center and with
Slide 12: Optimized corporate structure for greater tax and financing efficiencies
2 Optimized corporate structure for greater tax and financing efficiencies holding 14 Concession contracts 54.7% of total RAP Lagoa São São São Brasnorte Mariana TBE1 Janaúba ETAU AIE2 Miracema ATE III Sant’Ana Saíra5 Ananaí Pitiguari Tangará Juruá3 Nova João Pedro Gotardo 100% 100% 100% 100% 100% 1
Slide 13: Tax efficiency as a competitive advantage
2 Tax efficiency as a competitive advantage Maximum utilization of Assessment of the tax Interest on Equity (JCP) regime of companies (real profit vs. Average 18% tax deduction presumed profit) Effective tax rate – TAESA (Regulatory %) Average 6% tax deduction 34% Base corporate Consistently working
Slide 14: Competitive auction landscape provides future brownfield opportunities
2 Competitive auction landscape provides future brownfield opportunities 6 lots won by TAESA2 Discount WACC1 Better returns with less competition 60.3% 50.7% 55.2% 10.3% 10.0% 10.1% 49.1% 46.7% 44.8% 40.5% 42.2% 33.7% 8.3% 23.1% 25.1% 19.3% 12.3% 5.6% 4.7% 4.6% 36.5% 8.6% 12.0% 7.9% 7.8% 7.4% 7.3% 6
Slide 15: System Operations Center designed for efficient coordination, sustainable and strategic growth
3 System Operations Center designed for efficient coordination, sustainable and strategic growth… 99.9% 1.2% average line average Variable availability rate Portion / RAP in the last 10 years in the last 10 years Consistent operating Low levels of performance Variable Portion New center inaugurated
Slide 16: Integrated systems and qualified professionals strategically located
3 …associated with integrated systems and qualified professionals that are strategically located COGMA Observation Center Asset Management and Monitoring Integrated systems Cyber Healthcare and Broad presence of Security Monitoring technical team Financial Teams 100% trained RDO Control for maintena
Slide 17: Strong financial performance throughout the years
4 Strong financial performance throughout the years Regulatory Net Revenues (R$ MM – Taesa with proportional consolidation) 2,899 3,337 1,924 1,999 2,125 2,187 1,950 1,956 2,307 2,445 1,807 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 9M24 Growth driven by disciplined EBITDA and EBITDA Margin f
Slide 18: Adequate debt profile with competitive costs and extended terms
4 Adequate debt profile with competitive costs and extended terms Debt Amortization Profile Index Profile (R$ MM – Taesa with proportional consolidation) Average cost of debt (real): CDI 7,529 5.04% (pre-tax) 31% 1,605 Average debt term: 3% 66% Cash IGP-M Balance 1,295 1,566 1,013 4.8 years IPCA 410
Slide 19: Consistently paying high dividends
4 Consistently paying high dividends Dividends + Interest on Equity Payment1 (R$ MM) 1,552 1,672 Adequate shareholder compensation 1,106 sustained by diligent 1,011 932 960 1,004 986 757 management and financial 608 651 discipline 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20241 87% average D
Slide 20: Earnings distribution proposal
4 Earnings distribution proposal Base Reg. Net Income 2024 ≥ 75% 2025+ = 90-100% ≥ 50% IFRS Net Income Calculation basis for Payment of earnings From the 2025 fiscal The values determined distribution of earnings equivalent to a year onwards, the must be equal to or becomes Regulatory minimum of 75
Slide 21: Corporate governance as an important strategic tool
5 Corporate governance as an important strategic tool Balanced decision-making framework between controlling shareholders Governance practices Controlling block1 Minority Shareholders’ Agreement ◼ Relevant resolutions at Board meetings require nine votes for approval 21.7% 14.9% 63.4% Cemig ISA Bras
Slide 22: World-class management team supported by local shareholders
5 World-class management team supported by local shareholders Rinaldo Pecchio Junior CEO and IRO 18 years in the electric sector At Taesa since May 2023 (ISA CTEEP, Grupo AES Brasil, Elektro S.A.) Fábio Fernandes Rinaldo Pecchio Junior Luis Alves New Business and Jell Andrade CFO (interim) Technical
Slide 23: Solid ESG framework
5 Solid ESG framework Environmental Social Governance ▪ ISO 14001 Certification for ▪ ISO 45001 Certification for ▪ Signatory of the UN Global Compact Environmental Management Occupational Health and Safety committed to the 2030 Agenda Management (SDG) ▪ Sustainability report based on GRI guidelines
Slide 24: Regulatory Agenda
Regulatory Agenda Concession maturity Proactively capture reinforcements and improvements Residual and indemnity values Climate change: discussions regarding the national grid 24
Slide 25: Innovation and efficiency: an important opportunity
Innovation and efficiency: an important opportunity Shared cost service center Organizational changes focused on the following areas: Hiring of consulting firm specialized in cost optimization ➢ Technical / operational ➢ Asset management Information technology master plan ➢ Innovation Review of corp
Slide 26: taesa
taesa’