Slide 1: Results Presentation 3Q21
Results Presentation 3Q21 November, 2021
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 3Q21
Highlights 3Q21 FINANCIAL AND ECONOMIC R$ 1.5 bln R$ 816 mm 2.1x R$ 9.7 bln Adjusted EBITDA Investiments Net Debt/EBITDA Cash and Cash Equivalents DISTRIBUTION + 3.3% / 3,2% R$ 1.1 bln EQTL Piauí Sales / Injected Deferred Fiscal Asset Losses below regulatory level Maranhão Pará Tariff Review Tariff
Slide 4: Echoenergia | The Greatest Acquisition in Our History
Echoenergia | The Greatest Acquisition in Our History R$ 9.6 bi 1.2 GW ~97% ~15 years Enterprise Weighted Capacidade technical average term of Value instalada availability PPAs x3 x5 R$ 830mn 1.1 GW +55% Know-how Pipeline in Capacity factor High expertise of EBITDA 22(1) development from 2022 the Co
Slide 5: Portfolio Growth Driver
Portfolio Growth Driver 1 Pipeline Project I Abr/24 2 Pipeline Project II Ago/23 Value Levers Bahia Piauí Solar Wire Discount Solar Wire Discount • 80% of parks have • Agility for project 423 MWp FC 30% 280 MWp FC 28% wire-discount implementation 3 Pipeline Project III Set/23 4 Pipeline Project IV J
Slide 6: Generation
Generation Generation parameters +97% verified technical availability O&M BoP with availability above Source availability 1 generation depends on the wind Operational Parks 98% +55% Capacity factor combined Machine availability O&M WTGs assured by global tier-one portfolio high level of technical 2
Slide 7: PPA Strategy
PPA Strategy PPA’s Energy Price Price of Incentive Energy will be even more pressured by the increase in demand from new PPA's with a term of up to 4 years consumers Focus on Middle Market consumers, 50% Encouraged Energy Consumption by final consumers in the ACL was 3.9 GWm in aiming to cap
Slide 8: Operational Performance
Operational Performance
Slide 9: Energy Markets
Energy Markets Injected Energy evolution per DisCo GWh +3.2% +6.6% +1.9% +0.9% +4.8% +1.3% 2,210 2,190 10,175 +2.7% 10,448 7,985 8,238 3Q20 3T20 Ex CEEE 3Q20 CEEE 3T20 3Q20 3T20 Maranhão Pará Piauí Alagoas CEEE 3Q21 3T21 3Q21 3T21 CEEE 3T21 3Q21Ex ExCEEE-D CEEE-D Low income evolution # of consumers
Slide 10: Energy Markets
Energy Markets Sales evolution by DisCo (captive + free) GWh +5.3% +12.0% +3.0% -3.3% +5.5% +3.0% 1,761 1,820 +3.3% 8,036 7,782 6,275 5,961 3Q20 3T20 Ex CEEE CEEE 3T20 3Q20 3T20 3Q20 Maranhão Pará Piauí Alagoas CEEE 3Q21 3T21 3Q21 3T21 CEEE 3T21 3Q21Ex ExCEEE-D CEEE-D Sales evolution by segment (cap
Slide 11: Default and Collection
Default and Collection Collection Index¹ 3Q20 2Q21 3Q21 MA 101.0% 98.1% 96.7% PA 101.1% 97.8% 98.1% PI 106.2% 101.9% 99.8% AL 106.4% 101.8% 101.8% Consolidated 102.5% 99.2% 98.5% CEEE-D 98.8% 100.0% 98.7% PDA¹ 3Q20 2Q21 3Q21 MA 0.9% 0.9% 1.1% PA 1.1% 2.1% 1.6% PI -1.4% 0.3% 0.5% AL 1.7% 1.1% -2.2% C
Slide 12: Total losses over injected energy
Total losses over injected energy Losses in Piauí bellow regulatory limits only 3 years after the Acquisition. Maranhão Pará 27.6% 27.6% 27.6% Total Losses 17.7% 17.7% 17.7% Regulatory Limits 18.3% 19.2% 19.1% 29.9% 30.1% 29.8% 3T20 3Q20 2T21 2Q21 3T21 3Q21 3T20 3Q20 2T21 2Q21 3T21 3Q21 Bellow Piauí
Slide 13: DEC
DEC Beginning of the Turnaround process at CEEE-D already brings a reduction in the indicator. Bellow Maranhão Pará Regulatory Levels 27.6 26.2 26.2 17.4 Total Losses 16.1 16.1 Regulatory Limits 13.6 19.6 23.5 21.0 19.9 20.0 3T20 3Q20 1T21 2Q21 2T21 3Q21 3T21 3T20 3Q20 1T21 2Q21 2T21 3Q21 3T21 Piauí
Slide 14: FEC
FEC All DisCos below regulatory level, except CEEE-D (turnaround) Bellow Bellow Maranhão Regulatory Levels Pará Regulatory Levels 22.2 20.7 20.7 10.8 9.7 9.7 Total Losses Regulatory Limits 7.7 11.1 10.8 10.9 6.0 8.7 3T20 3Q20 1T21 2Q21 2T21 3Q21 3T21 1T21 3T20 3Q20 2T21 2Q21 3T21 3Q21 Bellow Bellow
Slide 15: Economic and Financial Performance
Economic and Financial Performance
Slide 16: Manageable Expenses
Manageable Expenses CEEE-D already shows reduction. Adjusted OPEX Pandemic (R$ Mn) PMSO Adjust. Savings(3Q20) MA PA Transmissão IPCA –12 months -6,1% +16,3% +128% 10.25% 127 134 8 8 OPEX by 125 155 22 119 119 130 126 Consumer¹ 10 0% +23% 3T19 3Q20 3T20 2Q21 3T21 3T19 3Q20 3T20 2Q21 3T21 3T20 3T21 Ma
Slide 17: Equatorial Consolidated
Equatorial Consolidated Adjusted EBITDA on the quarter (ex-new assets) (R$ Mn) CEEE-D +21.3% +23.8% -195 193 94 -104 -113 97 276 +51.4% 1.543 1,272 1.454 1,174 1.360 898 Reported EBITDA EBITDA Reportado Adjustments Ajustes Adjusted EBITDA Ajustado VNReand VNR IFRSIFRS EBITDA EBITDA exVNR EBITDA ex V
Slide 18: Equatorial Consolidated – Contribution per Asset
Equatorial Consolidated – Contribution per Asset Adjusted EBITDA on the quarter (R$ Mn) +23.8% +100% +45% -30% +79% 80 38 -82 -20 -105 +27% 292 75 Distribution: R$ + 486 million 1,558 1,454 1,174 +32.7% Adjusted EBITDA EBITDA Ajustado Maranhão Pará Piauí Alagoas Transmissão Outros Negócios Others (I
Slide 19: Investments
Investments Main Investments - Quarter (R$ Mn) 32 85 Distribution Distribuição - Own - Próprio 187 Distribution Distribuição - PLPT - PLPT 51 698 816 576 Transmission Transmissão 337 Others Outros 3T20 3T21 Main Investments 4,808 (R$ Mn) 2,904 2,051 1,508 2017 2018 2019 2020 Distribution- -Próprio D
Slide 20: Debt
Debt Cons. Net Debt and Net Debt/EBITDA LTM Cash and Short Term Debt Debt per indicator (R$ Bln) (%) 15,000 2.3 2.1 2.2 14,000 2.1 2.1 2.2 2.0 2.1 0.4% CDI 13,000 2.0 2,0x 12,000 1.9 Fixed Pré- 11,000 1.8 fixado Rate 1.7 46.8% 45.8% 10,000 IGP-M 9,000 1.6 9,7 1.5 8,000 IPCA 1.4 2,6 4,8 7,000 10,4 10
Slide 21: Final Considerations
Final Considerations
Slide 22: Final Considerations
Final Considerations RECENT ACHIEVEMENTS • Echoenergia Acquisition • Amapá Sanitation reinforcing value generation • expanding operations to the trajectory Sanitation sector • Maranhão Tariff Review and • CEEE-D Turnaround Process Pará Tariff Adjustment (Voluntary Layoff Program and Liability Manage
Slide 23: Thank You!
Thank You! GRUPO ENERGIA
Slide 24: Maranhão 2021 Tariff Review
Maranhão 2021 Tariff Review Asset Base EBITDAReg= R$ 870 Mn (Gross | Net) 4º Cycle (2016) 78 R$ 3.3 738 110 1,685 5º Cycle (2021) 244 R$ 4.4 bi 516 Investment Rem. K Depreciation QRR CAIMI Regulatory PMSO Regulatory PDD Parcela B Remuneration Operating Costs Default Losses (%) x WACC x Depreciation
Slide 25: CEEE-D | Important Turnaround Steps
CEEE-D | Important Turnaround Steps VOLUNTARY LAYOFF PROGRAM LIABILITIES RESTRUCTURING OTHER INITIATIVES Launched in September Contract renegotiations: Contracting of R$ 2.5 billion raised on the 3Q21 Record Adhesion (46% of the effective| Commercial Anchor 1st issue of Debentures (BRL 1.5