Engie Brasil Energia S.a. · BMFBOVESPA:EGIE3
Engie Brasil Energia — Q2 2023 Earnings Presentation
39 slides from Engie Brasil Energia's earnings presentation, Aug 9, 2023
Slide 1: Results Presentation 2Q23
ENGIE BRASIL ENERGIA RESULTS PRESENTATION 2Q23 August 8, 2023
Slide 2: Disclaimer
Results Presentation 2Q23 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 2Q23 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 2Q23 1. Highlights and ESG KPIs Umburanas Wind Complex ENGIE Brasil Energia S.A. 4
Slide 5: Highlights
Results Presentation 2Q23 Highlights Adjusted Ebitda1 (R$ million) Adjusted Net Income (R$ million) +2.3% +46.8% 3,774 3,862 167 88 1,688 73 -5.2% +56.8% 1,150 1,897 1,798 110 806 Recurring 180 88 3,607 3,774 1,615 73 Non-recurring 514 119 1,040 1,717 1,710 733 395 2Q22 2Q23 1H22 1H23 2Q22 2Q23 1H22
Slide 6: Highlights
Results Presentation 2Q23 Highlights The Company was successful at Aneel’s 01/2023 With the completion of the sale of the Pampa Sul Transmission Auction by acquiring Lot 5, which will be Thermoelectric Power Plant on May 31, the last coal-fired approximately 1,000 km long, to be implemented in the s
Slide 7: Highlights
Results Presentation 2Q23 Highlights Approved the distribution of interim dividends in the amount of Contract signing for the modernization of the generating R$ 767.2 million (R$ 0.9403/share), equivalent to 55% of the units 1 to 4 and common systems of Jaguara HPP, in distributable net income of th
Slide 8: ESG KPIs
Results Presentation 2Q23 ESG KPIs INSTALLED CAPACITY AND % OF RENEWABLES EMISSION INTENSITY (KgCO2e/MWh) TOTAL EMISSIONS (million of tCO2e) 5.5 95.9% 95.9% 100.0% 200.0 95.8% 86.6% 183.9 8,219 8,453 8,958 8,453 8,177 1.5 33.9 1.1 2021 2022 2Q21 2Q22 2Q23 1.0 1.4 0.1 0.1 2021 2022 2Q21 2Q22 2Q23 202
Slide 9: 2. Energy Sales
Results Presentation 2Q23 2. Energy Sales Gralha Azul Transmission System ENGIE Brasil Energia S.A. 9
Slide 10: Energy Commercial Strategy
Results Presentation 2Q23 Energy Commercial Strategy Portfolio diversification and gradual sale of future availability, with reserve for protection against hydrological risk Energy Balance (% of total; in aMW) | as of June 30, 2023 Free customers total sales volume for 2023: 2,154 aMW 5,334 377 5,03
Slide 11: Energy Commercial Strategy: Evolution of free customers
Results Presentation 2Q23 Energy Commercial Strategy Evolution of free customers¹ 2,603 2,656 2,358 2,388 2,329 2,154 982 1,030 2,680 42% 930 (+16.4% compared to 2Q22) Participation of Free Clients 877 826 837 Consumer Units served in out of total physical sales in 2Q232 2Q23 +5.9% p.y. +23.1% 8.8%
Slide 12: 3. Expansion
Results Presentation 2Q23 3. Expansion Santo Agostinho Wind Complex (Phase I) – Construction works ENGIE Brasil Energia S.A. 12
Slide 13: Wind Project Under Implementation: Santo Agostinho
Results Presentation 2Q23 RN Wind Project Under Implementation Santo Agostinho Wind Complex (Phase I) Overall physical progress reached 73%. Wind project made Lajes and Pedro Avelino (RN) - Phase I feasible in the Free Contracting Total Start of Installed construction: Environment Capacity: 2021 (AC
Slide 14: Wind Project Under Implementation: Serra do Assuruá
Results Presentation 2Q23 BA Wind Project Under Implementation Serra do Assuruá Wind Project Wind cluster – Bahia One of the ENGIE Group’s largest Campo Largo I and II wind projects to be implemented Gentio do Ouro (BA) Serra do in a single phase Assuruá Umburanas Total Start of Installed constructi
Slide 15: Photovoltaic Project Under Implementation
Results Presentation 2Q23 RN Photovoltaic Project Under Implementation Assú Sol Photovoltaic Complex Floresta Energy to be entirely delivered to the Free Market. Assú V Assú (RN) Assú Sol RN Total Start of Installed construction: Capacity: 3Q23 ~752 MW Commercial Full Installation Signed the main St
Slide 16: Transmission Project: Gavião Real
Results Presentation 2Q23 PA Transmission Project Under Implementation Gavião Real Transmissora de Energia Complementary to the Novo Estado Transmission System, Contracted Concession capturing synergies. RAP1: period: R$ 7.1 30 years Earthmoving activities million Estimated Deadline to Novo Estado G
Slide 17: Transmission Project: Asa Branca (Lot 5)
Results Presentation 2Q23 Transmission Project Under Implementation PA Asa Branca Transmissora de Energia (Lot 5 – Transmission Auction 01/2023) Strategic location for seamless flow of renewable energy from Northeast Novo Estado Gavião Real to the Southeast and Midwest regions. Contracted Concession
Slide 18: Expansion: Jirau HPP update
Results Presentation 2Q23 Expansion Jirau HPP | update aMW MW 50 75 2,102 3,750 Generating MW each Physical Guarantee1 Installed Capacity Units Production (average MW)2 PPA’s Portfolio (average MW) Shareholding Structure -11.7% 2,102 2,102 2,102 2,102 2,102 2,134 14 99 99 99 99 99 20% 00 538 0 1,883
Slide 19: Projects Under Development
Results Presentation 2Q23 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 2Q23 4. Financial Performance Estreito Hydro Power Plant ENGIE Brasil Energia S.A. 20
Slide 21: From 2016 – 2022: Solid Financial Performance
Results Presentation 2Q23 From 2016 – 20223: Solid Financial Performance Investments: Good portfolio management and diversification into other regulated amounted to R$ 25.7 billion, with 75% leverage segments, such as transmission, natural gas transportation and energy contracts in the ACR, result i
Slide 22: Net Operating Revenue Change
Results Presentation 2Q23 Net Operating Revenue Change NET OPERATING REVENUE (R$ MILLION) -12.9% 2,996 2 (57) (60) (57) (214) 466 16% 2,610 252 164 10% 5% 107 4% Generation and portfolio’s sale 2,366 2,251 Trading 79% 86% Transmission NOR 2Q22 CCEE Price and Financial asset Trading Transmission NOR
Slide 23: Result of Equity Income
Results Presentation 2Q23 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) 2,283 (609) Stake of 32.5% in TAG Transportadora Associada de Gás - TAG (147) contributed with R$ 208 (552) million vi
Slide 24: Ebitda Change
Results Presentation 2Q23 Ebitda Change EBITDA (R$ MILLION) -5.2% +10.9% 83 (57) 239 (60) 1,897 (63) 48 1,907 (71) 68 (109) 1,798 180 (177) 160 51 1,717 269 1,720 1,710 14% 3% (88) 51 92 208 3% 269 208 12% 160 208 16% 160 12% 8% 160 9% 1,288 1,468 1,539 1,451 1,539 75% 77% 1,468 86% 85% Ebitda Non-
Slide 25: Net Income Change
Results Presentation 2Q23 Net Income Change NET INCOME (R$ MILLION) +85.6% +56.8% 489 28 (99) (126) 806 (73) 733 119 514 395 Net income Non-recurring Adjusted net Financial result Depreciation Adjusted Ebitda Income taxes Adjusted net Non-recurring Net income 2Q22 income 2Q22 and income 2Q23 2Q23 am
Slide 26: Balanced Debt
Results Presentation 2Q23 Balanced Debt With no currency exposure DEBT OVERVIEW (R$ MILLION) 20,587 18,150 18,955 4,754 16,672 2.9x Total Debt / Ebitda3 2.7x 311 13,890 Debt control, active 2.6x 2.6x management of debt costs (R$ million) 2.3x and successful investment 2.0x 2.0x decisions ensure low
Slide 27: Debt Profile and Composition
Results Presentation 2Q23 Debt Profile and Composition Competitive costs and defensive indexes MATURITY DEBT SCHEDULE (R$ MILLION) BREAKDOWN OF DEBT 3,652 2,932 80% IPCA AAA rating and robust cash 2,078 2,192 2,294 1,931 generation translate into competitive costs of debt for 1,284 1,166 972 454 11%
Slide 28: CAPEX
Results Presentation 2Q23 CAPEX ALLOCATED/EXPECTED CAPEX AND CORRESPONDING FINANCING RESOURCES (R$ MILLION) 7,217 6,941 6,427 5,163 6,960 The expansion plan and 4,903 maintenance CAPEX are supported by a strong cash 4,013 3,796 flow generation and prudent 3,407 3,150 3,251 funding strategy. 5,180 81
Slide 29: Dividend Policy
Results Presentation 2Q23 Dividend Policy DIVIDENDS (BASED ON DISTRIBUTABLE NET INCOME) % • By-law minimum 3.32 2.45 payout: 30% of payable 2.79 net income 8.6% 9.2% 2.47 2.50 8.1% 6.3% 6.1% 5.7% 6.2% • Management 3.5% 3.7% 3.5% 2.3% 1.81 1.82 Commitment: minimum 100% 100% 100% 100% 1.53 100%2 100%
Slide 30: 5. Supporting Data
Results Presentation 2Q23 5. Supporting Data Assú V Photovoltaic Complex ENGIE Brasil Energia S.A. 30
Slide 31: Key Performance Indicators
Results Presentation 2Q23 Key Performance Indicators Consolidated (in R$ million) 2Q23 2Q22 Chg. 6M23 6M22 Chg. Net Operating Revenue (NOR) 2,610 2,996 -12.9% 5,523 6,059 -8.8% Results from Operations (EBIT) 1,478 1,456 1.5% 3,315 3,098 7.0% Ebitda 1 1,710 1,717 -0.4% 3,774 3,607 4.6% Adjusted Ebitd
Slide 32: Diversified Portfolio of Assets as of June 30, 2023
Results Presentation 2Q23 Diversified Portfolio of Assets as of June 30, 2023 27 15 31 26 29 34 5 17 33 19 29 Installed Commercial 30 Hydro Power Plants 13 Capacity (MW) Capacity (aMW) Installed capacity of 8,176.9 MW (4,055.9 aMW), 4 9 32 12 14 1 Salto Santiago 1,420.0 702.2 27 2 Itá 1,126.91 528.7
Slide 33: Transportadora Associada de Gás – TAG
Results Presentation 2Q23 Transportadora Associada de Gás – TAG Contracts breakdown and indebtedness DEBT PROFILE – TAG1 (as of June 30, 2023) Fully contracted in the regulated market for a weighted average term of approximately 7 years. Financing structure with competitive cost and protected from e
Slide 34: Transportadora Associada de Gás – TAG
Results Presentation 2Q23 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 • 18 clients (including Petrobras) from 11 different economic
Slide 35: Energy Balance as of June 30, 2023
Results Presentation 2Q23 Energy Balance as of June 30, 2023 Diversified contracting with duration of about 15 years in ACR and 3 years in ACL1 (in average MW) 2023 2024 2025 2026 2027 2028 Own Resources 4,064 4,146 4,598 4,718 4,718 4,718 Auction Reference Gross Price Net Price of + Purchases for R
Slide 36: Headcount
Results Presentation 2Q23 Headcount1 Number of Employees By gender 713 1,148 1,123 18% 32% 29% 37% 410 Administrative 48% 82% Female Renewables 58% 63% Thermal 71% Male 52% 10% Administrative Operations 2Q22 2Q23 By age group By academic qualifications 4% 5% 22% 15% Less than 25 38% Post-Graduate 34
Slide 37: Sustainability KPIs
Results Presentation 2Q23 Sustainability KPIs1 Item Dimension2 Index Material themes GRI disclosure3 2Q23 2Q22 Change 6M23 6M22 Change 1 Operating plants EU1 76 76 0 76 76 0 2 Installed operated capacity EU1 9,898 10,174 -2.7% 9,898 10,174 -2.7% 3 Installed proprietary capacity EU1 8,177 8,453 -3.3%
Slide 38: Contacts
Results Presentation 2Q23 Contacts EDUARDO Sattamini EDUARDO Takamori 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 A
Slide 39: www.engie.com.br
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