Transmissora Alianca De Energia Eletrica S.a. · BMFBOVESPA:TAEE3
Transmissora Alianca De Energia Eletrica — Taesa — Investor Presentation (May 2025)
27 slides from Transmissora Alianca De Energia Eletrica's investor presentation, May 2025
Slide 1: Corporate Presentation
Corporate Presentation May 2025
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 99.96% 1.0% YTD Line Availability1 YTD Va
Slide 7: Investment Thesis
Investment Thesis Favorable sector dynamics that allow for predictable 1 cash flow generation Significant capacity to create value to shareholders 2 through greenfield and brownfield investments, efficiency and innovation 3 Portfolio of high-quality assets and best-in-class operations Strong financi
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: Significant capacity to create value to shareholders via greenfield and brownfield investments, efficiency and innovation
2 Significant capacity to create value to shareholders via greenfield and brownfield investments, efficiency and innovation R$ 1.2 billion in RAP captured between 2020-2024, and another R$ 398 million contracted to become operational in the next years (%) 80 Competitive Cost optimization funding and
Slide 10: Projects under construction totaling R$ 398 million in revenues with accretive returns
2 Projects under construction totaling R$ 398 million in revenues with accretive returns ▪ Novatrans reinforcements delivered 3 to 6 months ahead of schedule and total 743 km authorized RAP of R$ 38.9 MM (R$ 20.8 MM in 2024; R$ 18.1 MM in Feb/25) RS Saíra RAP/CAPEX1: 182.0 / 1,176 Progress² 92.9% 10
Slide 11: Last ANEEL Auction 02/2024
2 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 potential grow
Slide 12: Optimized corporate structure for greater tax and financing efficiencies
2 Optimized corporate structure for greater tax and financing efficiencies holding 4 subsidiaries incorporated into the holding company in 14 Concession contracts the last 1.5 years 54.7% of total RAP Lagoa São São São Brasnorte Mariana Janaúba TBE¹ ETAU AIE2 Ananaí Pitiguari Tangará Juruá3 Nova Joã
Slide 13: Partnerships: TBE & AIE
2 Partnerships: TBE & AIE TBE AIE1 49,98% 49,98% 49,99% 19,09% 21,95% 49,0% 24,95% 49,00% EATE EATE ETEP ENTE ECTE ERTE (e) EBTE(g) EDTE (d) Transmineiras 50,0% 50,0% 50,0% 100,0% 18,45% 100% ESDE (f) STC (a) ETSE (i) 61,55% STC (a) Paraguaçu Aimorés Ivaí 38,02% ERTE (e) 80,0% Lumitrans (b) 50,1% ED
Slide 14: Tax efficiency as a competitive advantage
2 Tax efficiency as a competitive advantage Maximum utilization of Consistently working Assessment of the tax Interest on Equity towards renewal of the regime of companies SUDAM/SUDENE tax (real profit vs. Average 18% tax benefit presumed profit) deduction Average 6% tax deduction Average 6% tax ded
Slide 15: 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 16: 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 17: Integrated systems and qualified professionals strategically located
3 …associated with integrated systems and qualified professionals that are strategically located COGMA Integrated systems Observation Center Asset Management and Monitoring Ongoing SAP upgrade Cyber Healthcare and Security Monitoring Broad presence of technical team Financial RDO Control Teams 100%
Slide 18: Strong financial performance throughout the years
4 Strong financial performance throughout the years Regulatory Net Revenues (R$ MM – TAESA with proportional consolidation) 2,125 2,187 2,307 2,899 3,304 3,287 Growth 1,999 1,950 1,807 1,956 836 driven by disciplined 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1Q25 financial management aimed a
Slide 19: 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) IGPM Average cost of debt (real): 2% 6,459 5.48% (pre-tax) CDI 32% 1,232 2,089 Average debt term: 66% Cash 1,598 Balance 980 1,060 4.7 years IPCA
Slide 20: Consistently paying high dividends
4 Consistently paying high dividends Dividends + Interest on Equity Declared1 (R$ MM) 1,552 1,672 Adequate shareholder compensation 1,106 sustained by diligent 932 960 1,004 986 757 720 management and financial 608 651 discipline 2015 2016 2017 2018 2019 2020 2021 2022 2023 20241 2025 YTD Regulatory
Slide 21: 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 22: 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 23: World-class management team supported by local shareholders
5 World-class management team supported by local shareholders Rinaldo Pecchio Junior CEO 18 years in the energy sector At TAESA since May 2023 (ISA CTEEP, Grupo AES Brasil, Elektro S.A.) Catia Pereira Luis Alves Mauricio Dall’Agnese Jell Andrade CFO and IRO Technical Officer New Business Officer Imp
Slide 24: 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 25: Regulatory Agenda
Regulatory Agenda Concession renewal Residual and indemnity values Proactively capture reinforcements and improvements Climate change: discussions on improving the national grid 25
Slide 26: 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 27: taesa
taesa’