Engie Brasil Energia S.a. · BMFBOVESPA:EGIE3
Engie Brasil Energia — Q4 2022 Earnings Presentation
39 slides from Engie Brasil Energia's earnings presentation, Feb 17, 2023
Slide 1: ENGIE Brasil Energia Results Presentation 4Q22 and 2022
ENGIE BRASIL ENERGIA Results Presentation 4Q22 and 2022 February 16, 2023
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 4Q22 and 2022 | 3
Slide 4: Highlights and ESG KPIs
01 Trairi Wind Complex Highlights and ESG KPIs ENGIE Brasil Energia S.A. Results Presentation 4Q22 and 2022 | 4
Slide 5: Highlights: EBITDA and net income
Highlights Result drivers vs. 2021 2021 Non-recurring events EBITDA (R$ million) Ebitda Adjusted Ebitda1 R$ 1,276 million Impairments and result from the sale of asset +14.3% -3.8% 6,790 7,217 6,941 R$ 1,591 million Hydrological risk negotiation (GFOM) in 2021 151 5,941 1,591 +23.4% +56.1% 2022 Resu
Slide 6: Highlights
Highlights Investment of around R$ 3.3 billion was approved for Signature of a financing agreement with BNDES in the developing the Assú Sol Photovoltaic Complex, amount of R$ 1.5 billion, for the implementation of the with an installed capacity of approximately 752 MW, to be Serra do Assuruá Wind C
Slide 7: Highlights
Highlights Approved the proposal for the distribution of complementary The distribution of Interest on Shareholders’ Equity was dividends amounting to R$ 1,455.2 million (R$ approved in December 2022 in the amount of R$ 200 million 1.7834/share), to be ratified by the Annual General Meeting. (R$ 0.2
Slide 8: Highlights
Highlights Aneel granted the request for a liability waiver, made by CESTE consortium, extending the concession period of Estreito Hydroelectric Power Plant in 852 days. ENGIE Brasil Energia S.A. Results Presentation 4Q22 and 2022 | 8
Slide 9: ESG KPIs
ESG KPIs INSTALLED CAPACITY AND % OF RENEWABLES EMISSION INTENSITY1 (KgCO2e/MWh) CO2e EMISSIONS AND AVAILABLE CARBON CREDITS 211 5.9 5.3 5.5 184 4.8 95.8% 95.9% 4.4 4.4 86.2% 86.2% 158 152 89.3% 144 145 86.7% 3.0 85.0% 2.8 8,711 8,711 8,453 2.2 2.2 7,678 8,005 8,219 7,010 1.3 1.1 0.5 0.5 27 2016 201
Slide 10: Energy Sales
02 Salto Santiago Hydro Power Plant Energy Sales ENGIE Brasil Energia S.A. Results Presentation 4Q22 and 2022 | 10
Slide 11: Energy Commercial Strategy
Energy Commercial Strategy With approximately 65% of total revenues linked to regulated market and only 35% in the free energy market, we maintain a conservative contracting strategy in line with market practices ENERGY BALANCE (% OF TOTAL; AVERAGE MW) As of December 31, 2022 FREE CUSTOMERS TOTAL S
Slide 12: Energy Commercial Strategy: Free Customers
Energy Commercial Strategy EVOLUTION OF FREE CUSTOMERS1 2,734 (+13.2% compared to 4Q21) 2,603 2,656 Consumer Units served in 4Q223 2,388 2,329 2,293 9.7% (-0.8 p.p. compared to 2021) 982 930 Market share ACL in 2022 (of total energy in Free Market) 877 826 682 37% Participation of Free Clients out o
Slide 13: Expansion
03 Jaguara Hydro Power Plant Expansion ENGIE Brasil Energia S.A. Results Presentation 4Q22 and 2022 | 13
Slide 14: Wind Project Under Construction
Wind Project Under Construction Santo Agostinho Wind Complex (Phase I) Overall physical progress reached 32.5% Wind project made feasible in the Free Contracting Environment (ACL). • The collector substation, connection bay and transmission line received the necessary operational licenses and were e
Slide 15: Transmission Project Under Construction
Transmission Project Under Construction Novo Estado Transmissora de Energia At the end of 4Q22, the total work progress was 99.2%. • Serra Pelada – Itacaiúnas and Serra Pelada – Miracema C1 and C2 transmission lines already in commercial operations accounting for 49% of the total RAP; • Civil work,
Slide 16: Transmission Project Under Implementation
Trasmission Project Under Implementation Gavião Real Transmissora de Energia Complementary to the Novo Estado Transmission GAVIÃO NOVO System, capturing synergies. ESTADO REAL • Outlook for a reduction in the total investment of approximately 30%, with anticipation of at least 24 months in startup o
Slide 17: Wind Project Under Implementation
Wind Project Under Implementation Serra do Assuruá Wind Project Wind cluster – Bahia Energy to be delivered to the Free Market, also eventually attending the Energy self-production market Campo Largo I and II • One of the ENGIE Group’s largest wind projects to be implemented in a single phase; Serra
Slide 18: Photovoltaic Project Under Implementation
Photovoltaic Project Under Implementation Assú Sol Photovoltaic Complex Assú Sol Energy to be entirely delivered to the Free Market Floresta • Preliminary License and land use agreements already signed; Assú V • Assú Sol Supply and services agreements are currently at stage of contracting; RN • Cons
Slide 19: Expansion: 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)2 SHAREHOLDING STRUCTURE -15.6% 2,212 2,212 20% 1,899 14 95 95 -37.0% 1,601 538 538 Regulated 14 Bilateral 40% 1,154 Uptime operat
Slide 20: Projects Under Development
Projects Under Development ENGIE Brasil Energia has also a portfolio of assets under development. Santo Agostinho Wind Installed Complex (Phase II) – RN Capacity: 279 MW Installed Santo Agostinho Photovoltaic Capacity: ~509 MW Complex – RN Installed Umburanas Wind Complex Capacity: 250 MW Evolution
Slide 21: Financial Performance
04 Novo Estado Transmissora Financial Performance ENGIE Brasil Energia S.A. Results Presentation 4Q22 and 2022 | 21
Slide 22: Solid Financial Performance
Solid Financial Performance From 2016 – 20223: Creation of shareholder value: financial discipline and efficient capital allocation. Investments amounted to: R$ 25.7 billion, with 75% leverage ROE1 - ADJUSTED RETURN ON EQUITY (%) Proprietary installed capacity: 33.0 34.7 32.8 29.9 ❑ Total: +21% ❑ Re
Slide 23: Net Operating Revenue Change
Net Operating Revenue Change NET OPERATING REVENUE (R$ MILLION) -5.1% 1,187 40 (62) (214) (428) 12,541 (1,133) 31 (24) 11,907 7 2,836 1,703 685 1,113 9,512 8,561 NOR 2021 Price and Indemnifications Financial Asset CCEE Trading Transmission1 Photovoltaic NOR 2022 sales volume and others Remuneration
Slide 24: 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$ 727 million via equity income to the Company’s Ebitda in 2022. INCOME STATEMENT TAG (R$ MILLION) 8,426 (2,722) Transportadora Associada
Slide 25: Ebitda Change
Ebitda Change EBITDA (R$ MILLION) +14.3% 220 125 (6) (71) (695) 247 348 (1,591) 1,187 1,276 7,217 (268) 264 6,949 228 6,941 (151) 6,790 6,713 602 602 344 572 572 5,941 727 727 727 264 602 6,351 6,351 5,642 5,642 5,491 5,075 (4) Ebitda Non- Adjusted IFRS* Ebitda Price and Transmission CCEE Fuel Equit
Slide 26: Net Income Change
Net Income Change NET INCOME (R$ MILLION) +70.3% +16.7% 53 54 (276) 564 2,764 (99) 2,665 804 2,369 1,565 Net income 2021 Non-recurring Adjusted net Financial result Depreciation Income taxes Ebitda Adjusted net Non-recurring Net income 2022 income 2021 and amortization income 2022 ENGIE Brasil Energ
Slide 27: 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) 20,587 18,150 2,236 16,672 229 15,685 14,437 2.8x 2.9x 2.6x 2.6x Total Debt / Ebitda3 2.3x (R$ million) 2.0x
Slide 28: Debt Profile and Composition
Debt Profile and Composition Competitive costs and defensive indexes AAA rating and robust cash generation translate into competitive BREAKDOWN OF DEBT costs of debt for financing growth. MATURITY DEBT SCHEDULE (R$ MILLION) CDI TJLP TJLP 10% IPCA IPCA 76% 3,320 2,592 2,264 2,117 2,192 CDI 1,747 1,62
Slide 29: 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) 7,217 6,941 6,427 5,163 5,223 6,346 5,223 4,903 4,013 3,407 3,150 Ponta Grossa Substation 5,180 8
Slide 30: 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) 3.32 2.79 2.45 2.47 2.50 8.6% 9.2% 8.1% 7.1% 6.3% 6.1% 5.7% 6.2% 3.5% 3.7% 3.5% 1.90 1
Slide 31: Supporting Data
05 Assú V Photovoltaic Complex Supporting Data ENGIE Brasil Energia S.A. Results Presentation 4Q22 and 2022 | 31
Slide 32: Main Financial and Operational Indexes
Main Financial and Operational Indexes Consolidated (In millions of R$) 4Q22 4Q21 Chg. 12M22 12M21 Chg. Net Operating Revenue (NOR) 3,102 2,769 12.0% 11,907 12,541 -5.1% Results from Operations (EBIT) 1,487 750 98.3% 5,801 4,898 18.4% Ebitda 1 1,714 1,084 58.1% 6,790 5,941 14.3% Adjusted Ebitda 2 1,
Slide 33: Diversified Portfolio of Assets as of Dec. 31, 2022
Diversified Portfolio of Assets as of Dec. 31, 2022 27 16 31 33 34 5 18 29 20 28 33 Installed Commercial 14 15 Hydro Power Plants 9 Capacity (MW) Capacity (aMW)* 30 13 Installed capacity of 8,453 MW (4,556 aMW), 4 1 Salto Santiago 1,420.0 733.3 27 2 Itá 1,126.91 564.71 +2,032 MW of wind and solar en
Slide 34: Transportadora Associada de Gás – TAG
Transportadora Associada de Gás – TAG Contracts breakdown and indebtedness DEBT PROFILE – TAG (as of December 31, 2022) Fully contracted in the regulated market for a weighted average term of approximately 8 years. Financing structure with competitive cost and protected from exchange variation - Rat
Slide 35: 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 extraordina
Slide 36: Energy Balance as of December 31, 2022
Energy Balance as of December 31, 2022 Diversified contracting with duration of about 16 years in ACR and 4 years in ACL1 (in average MW) 2023 2024 2025 2026 2027 2028 Own Resources 4,085 4,226 4,674 4,722 4,722 4,722 Auction Reference Gross Price Net Price of + Purchases for Resale 1,212 823 342 29
Slide 37: Headcount
Headcount1 NUMBER OF EMPLOYEES BY GENDER 806 1,135 1,191 18% 32% 28% 36% Female 385 Male Administrative 82% 50% 58% Renewables 54% Thermal 72% 50% 9% 10% Administrative Operations 4Q21 4Q22 BY AGE GROUP BY ACADEMIC QUALIFICATIONS 3% 1% 5% 14% Less than 25 22% 25 to 34 Post-Graduate 36% 35 to 44 40%
Slide 38: Sustainability KPIs
Sustainability KPIs1 Item Dimension2 Index Material themes GRI disclosure3 4Q22 4Q21 Change 12M22 12M21 Change 1 Operating plants 102-7, EU1 76 68 8 76 68 8 2 Installed operated capacity 102-7, EU1 10,174 9,939 2.4% 10,174 9,939 2.4% 3 Installed proprietary capacity 102-7, EU1 8,453 8,219 2.9% 8,453
Slide 39: Contacts
Contacts Eduardo Sattamini Marcelo Cardoso Malta Chief Executive and Investor Relations Officer Chief Financial Officer Investor Relations Team: www.engie.com.br/investidores ri.brenergia@engie.com Rafael Bósio Investor Relations Manager rafael.bosio@engie.com (48) 9 9911-0106 Adriana Wagner Caio Mi