Axia Energia Sa · BMFBOVESPA:AXIA3
Axia Energia Sa — Brazilian Electric Power — Q2 2016 Earnings Presentation
37 slides from Axia Energia Sa's earnings presentation, Sep 19, 2016
Slide 1: Fapimec
Fapimec
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. Such statements are not statements of historical facts but reflect the beliefs and expectations of our management and may constitute forward-looking statements within the meaning of Comissdo de Valores Mobilidrios and Section 27A o
Slide 3: Eletrobras
Eletrobras General Information Operation and Expansion Financial Performance Capital Structure Net Debt and Financing Strategic Planning
Slide 4: Largest Latin American Electric Power Sector Company
Largest Latin Amer k i. 3 Electric Power secte Elecrcorae GENERATION TRANSMISSION awe EL@EFODFAS «5% Installed Capacity . 47% in a 32.9% in Brazil REDEFINITION OF ELETROBRAS'S ROLE > Restructuring of the Distribution Business > Transfer of Sectorial Funds Management
Slide 5: Corporate Governance
Corporate Governance the Companys {Creation ofthe ! Compliance and Risk 1 (| Management Office } Good Corporate Governance Practices Performance improvement _ Policies Better access to the capital Contribution to the Community Alignment of Interests Internal Committees of Norms Support to the Board
Slide 6: Independent Investigation
Independent Investigation =) i Eletrobras SHAREHOLDERS t BOARD OF FISCAL COUNCIL DIRECTORS 4 / INDEPENDENT AUDITOR Shadow Investigation INQUIRY COMMITTEE 1 b----. aad FORENSIC ' do | ACCOUNTING LOVELLS
Slide 7: Sustainability Index
Sustainability Index Indice de Sustentabilidade Empresarial 2016 For the ninth consecutive year, Eletrobras is part of the Corporate Sustainability Index (ISE) of BM&FBOVESPA . MEMBER OF Dow Jones | ; Sustainability Indices In Collaboration with RobecoSAM «® For the fourth consecutive year, Eletrobr
Slide 8: Eletrobras Companies
Eletrobras Companies > > Eletrobras Eletrobras. Cepel 0.00%) Generation and Generation Distril Shareholding aie Eletrobras rAN Eletrobras Eletrobras Eletrobras. Eletronuclear ITAIPU Distribuigbo Acre Eletropar Eletronorte = (93909 'BINACIONAL, 5700 ea7%) (0353) eno) rs ‘Wind Farm - Mangue Seco 2 49.
Slide 9: Eletrobras
Eletrobras General Information Operation and Expansion Financial Performance Capital Structure Net Debt and Financing Strategic Planning
Slide 10: Installed capacity and transmission lines
46,016 MW 24,450 MW from non- extended concessions 13,094 MW from extended concessions pursuant to Law 12,783/13 (O&M) 3,132 MW from concessions extended pursuant to Law 13,182/15 5,340 MW through participations with SPEs 69,146 km 61,981 km > 230 Kv 5,558 km from non- extended concessions 57,215 km
Slide 11: Major plants and generation capacity
Teles Pires 1,820 MW 728 MW in operation Santo Anténio 3,568.3 MW © 31150.4 MW in operation Jirau 3,750 MW 3,150 MW in operation Total mw Ad tyaro 215386 Bdtrerma 1.4050 Bip Farm 308 Btermat 5908 FE sotor 100 Total (Elb+SPEs) 23,8505 TotlELB — 12.196.0 679 | 2 Eletrobras 11,233.1 MW 1,359 MW in oper
Slide 12: Projects
2 Projects 1,254.6 MW 3 Projects 2,895 MW 1 Project 350 MW 6 Projects 4,182.8 MW 2 Eletrobras 7 Projects 1,041 MW 2 Projects Projects 2,200 MW. PA 8.040 MW PA _2,338MW 10.181 Studies and Projects = S iaataeical still Serra Quebrada MA/TO_ 1,328 MW 4.881 Units Installed Rg Bi Garabi Bra/Are 1152MW 46
Slide 13: Transmission Projects in Construction
Transmission Projects in Constrt 2 Eletrobras Eletrobras’ Transmission Lines ‘letrobras's Transmission Lines with Partners ‘Other Companies’ Transmission Lines a @ Complero Rio Parand @ Compexo Rio Paranapanema @ Complexe Rio Grande @ Compexo Rio Paranaiba © complexe Paulo Afonso i Partnership Total
Slide 14: Eletrobras
Eletrobras General Information Operation and Expansion Financial Performance Capital Structure Net Debt and Financing Strategic Planning
Slide 15: Highlights of the 2Q16
Highlights of the 2Q16 Net Operating Revenue of R$ 33,085 million, influenced by the RBSE; Accounting acknowledgment of the RBSE with net impact on the result amounting to R$ 17,035 million; Operating Provision for the Angra 3 Nuclear Power Plant in the amount ofR$ 4,092 million, R$ 2,414 million of
Slide 16: Net revenue, EBITDA and net profit
é Eletrobras Net Revenue +366% R$25,979 million 2916 2915 EBITDA Net Prot +5011% +1,042% $23,861 million $14,149 million 2916 2915, 2916 2915 R$ 33,085 R$ 7,106 R$ 23,385 R$ (476) R§12,791 R$ (1,358) million million million million million million ; 2% 225% -48% Managerial $169 million $656 million
Slide 17: Gross Operating Revenue - Consolidated
Gross Operating Revenue - Gonsolide R$ million CONSOLIDATED 2016 «2Q15 | «1H16— 1H15 a) Generation 4,969 5,210 9,266 10,807 Energy Sales and O&M 4,935 5,166 9,397 10,547 Construction Revenue 23 60 5 154 Itaipu Transfers cee -16 -136 106 b) Transmission 27,215 1,254 28,424 2,373 Return Rates - Transm
Slide 18: Transmission Financial Revenue (RBSE)
Transmission Financial Revenue (RBS Transmission R$ million Chesf__Eletronorte_Eletrosul__Furnas _Total Basic Network- RBSE - Historical Balance 1,187.0 1,732.9 513.5 4,530.1 7,963.5 Update - IPCA and Remuneration 8,618.0 3,034.6 = 1,447.3 12,710.3 25,810.2 Total Value of the Updated Financial Asset
Slide 19: Personnel, Materials and Services
Personnel, Materials and Services R$ million 2Q16 2Q15 % 1H16 1H15 — (%) Personnel 1,428 1,234 15.7% 2,845 2,483 14.6% Materials 72 85 -14.8% 132 143 -7.6% Services 733 556 31.9% 1,245 1,056 17.9% TOTAL 2,234 1,875 19.1% 4,222 3,682 14.7% ‘The 2015 sheets have been adjusted to exclude the expenses o
Slide 20: Operating Provisions
Operating Provisions R$ million Operating Provisio Consolidated 2Q16 2Q15 1H16 1H15 Guarantees i 13 15 12 -596 848 2,354 4,101 PCLD - Consumers and Resellers 18 151 160 253 PCLD - Financings and Loans 3 5 9 os Unsecured Liabilities in Subsidiaries 0 0 0 0 1,622 -80 4,521 -155 Losses on Investments 1
Slide 21: Impairment
Impairment - RS million Impairment Accumulated 2016 2015 1H16 2Q16 1016 Generation 11,219 8,804 2,414 2,414 i} Angra 3 8,478 6,064 2,414 2,414 0 SLE 418 418 ° 0 ° Simplicio 383 383 ° 0 0 Bazi 559 559 0 0 ) Other 1,381 1,381 0 0 7 Transmission 1,244 1,307 -66 -66 0 Distribution 518 518 ° 0 ) Total 12
Slide 22: Onerous Contracts
Onerous Contracts - R$ million Oncrous Contrects Consolidated Balance Changes in 2016 2016 2015 2Q16 1Q16 Transmission Contract 062/2001 614 729 -57 -58 TL Camagari IV - Sapeacu 95 99 -6 2 Other 50 67 -24 6 Transmission Subtotal 759 896 -87 -50 Generation Camagari 81 80 4 4 Funil 80 84 2 2 Coaracy N
Slide 23: | -44so 6-377 4222 1H16 “4275 || 8,896 - 16,826 1H15, —a -1,228 ~6,254
| -44so 6-377 4222 1H16 “4275 || 8,896 - 16,826 330 36 1H15, —a -1,228 ~6,254 -935 Net Operating Financial Result Operating Shareholding Energy Ful Revenue provision for
Slide 24: Generation and Transmission Companies' Result
Generation and Transmission panies’ Result R$ million Operating Revenue _Result of EBITDA Margin Companies Net Service EBITDA Eletrobras 1H16 1H15 1H16 1H15 1H16 1H15 1H16 1H15 1H16 1H15 Benue ‘5,490 2,988 (3,680 463 2,682 109 4,003, 593 73% 20% Chest 10,338 1,824 8,613 42 ‘5,737 500 8,697 99 84% 5%
Slide 25: Result from Distribution Companies
Result from Distribution Comp R$ million Profit/Loss in . i Result of Margin Eletrobras Gperating Service* pine EBITDA EBITDA Companies rerio Net 1H16 1H15 1H16 1H15 = 1H16 1H15 1H16 1H15 1H16 1H15 ESaixe 228 181 -56 -12 -116 -37 48 4 21% -2% ED Alagoas me ose 2981 7 BH Amazonas Distribuigo de Energ
Slide 26: Investment
nvestment - 20 R$ million 2016 Investment Budgeted* vested (%) Generation 7,352.9 2,737.8 475 Corporate Expansion 4,531.8 704.8 ise SPEs Expansion 2,409.6 1,942.8 cad Maintenance 411.6 90.2 ors Transmission 3,736.6 1,238.9 cad Corporate Expansion 2349.6 651.3 _ SPEs Expansion 920.4 440.1 ad Maintena
Slide 27: Eletrobras
Eletrobras General Information Operation and Expansion Financial Performance Capital Structure Net Debt and Financing Strategic Planning
Slide 28: Capital Structure
Capital Structure Common 80.4% Total R$ 31.3 billion 11.9%, 35.5% 41.0% 6.9% 4.7% i | Federal Government i | BNDESpar [By pxves Government Funds and CEF i | Minority Preferred 82.8% Ticker BM&FBovespa Elet3 (Common) Elet6 (Preferred B) NYSE - OTC EBRBY (Common) XELTO (Common) XELTB (Preferred B) 19.
Slide 29: Evolution of the Shares
Evolution of the Shares ‘——IBOV Index ==IEE Index --ELET3 ——-ELET6 jul-1S ago-15 set-15 out-15 nov-15 dez-15 jan-16 fev-16 mar-16 abr-16 mai-16 jun-16 “—EBRYY Index “—EBRBY Index jul-15 ago-15 set-15 out-15 nov-15 dez-15 jan-16 fev-16 mar-16 abr-16 mai-16 jun-16 Quotation Average Volume Average Volu
Slide 30: Eletrobras
Eletrobras General Information Operation and Expansion Financial Performance Capital Structure Net Debt and Financing Regulatory Aspects Strategic Planning
Slide 31: Net Debt
23 Eletrobras Parent Company Financial Institutions Financial Total 2016 Institutions R$ 45.1 billion Consolidated Financing excludingRGR = R$ 393 billion () Cash + Securities = RS 75billion Total 2016 R$ 26.5 billion Consolidated Financing excluding RGR = R206 billion () Cash + Securities = R$ 4.9
Slide 32: Leverage and Debt Profile
verage - R$ billion 18.2 ‘mms Managerial Leverage Managerial Leverege/Managerl Ebeda = 2 = Wrage LeveregelManagerl Ebeda ) 2Q15 3Q15 Managerial EBITDA * 2.3 Managerial EBITDA excl. DisCo. 0.9 3.3 Adjusted Debt = Consolidated financing excluding RGR — Cash and Securities ~ Financing Receivables exclu
Slide 33: Structure of the Consolidated Asset
Structure of the Consolidated Asset Eletrobras. Total of Consolidated Assets 4% R$ 173.0 billion ° hid 26% =% 30% 29% f Liabilities 3% 19% 12% Ho% 32% 2% 17% Investment / Fixed Assets Stockholders Equity Financial Assets - Concessions Provisions - Contingencies Other Other Rights to Compensation Obl
Slide 34: Eletrobras
Eletrobras General Information Operation and Expansion Financial Performance Capital Structure Net Debt and Financing Strategic Planning
Slide 35: Distribution Companies
8 Distribution Companies : Eletrobras 165th Extraordinary General Meeting: Rendering of Not approval of Approval the services up to the extension of transference of December 31st the concession the shareholdin 2017 or the c © The transfer of shareholding control of the distribution companies will be
Slide 36: Strategic Planning Guidelines
Strategic Planning Guidelines The Five-Year Business and Management Plan is under revision and, its new Management edition should include, the following guidelines: efficiency © Investments Review; © Strengthening of investment management. Improvement of business model, governance and management of
Slide 37: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: September 16, 2016 CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS By: / S / Armando Casado de Ar
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