Axia Energia Sa · BMFBOVESPA:AXIA3
Axia Energia Sa — Brazilian Electric Power — Investor Presentation (April 2015)
38 slides from Axia Energia Sa's investor presentation, Apr 3, 2015
Slide 1: Presentation to Analysts and Shareholders
Presentation to Analysts and Shareholders April2015 =) Eletrobras
Slide 2: Forward-looking statements
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 Section 27A of the Securities Act of 1933, as amended, a
Slide 3: Eletrobras Main Functions
Eletrobras Main Functions ») Eletrobras + GENERATION + TRANSMISSION + DISTRIBUTION + LIGHT FOR ALL- Luz para Todos ~COMMERCIAHIZATION: more than 15 million people benefited + ENERGY CONSERVATION- PROCEL equivalent to 2,522 MW + ALTERNATIVE SOURCES - PROINFA 2,975 Mw of installed capacity
Slide 4: Corporate Governance
Corporate Governance > Eletrobras r | Plan: PE 2015-2030 PDNG 2015-2019 Independent Auditors Internal Audit General Ombudsman on SAE (G) SGE (T) Control T Manager of projectos —-------— and Advisors
Slide 5: Corporate Governance
Corporate Governance ») Eletrobras Maximization of ‘company values Performance Improvement Better access e to capital e Contribution e towards continuity @ Alignment of Good Corporate interests Governance Corporate Governance practices CGPAR IBGC Bylaws sy v cvM Policies DEST / Internal Rules Board
Slide 6: Eighth consecutive year in Corporate Sustainability Index (ISE)
For the eighth consecutive year, Eletrobras integrates the Corporate Sustainability Index (ISE) of BM&FBOVESPA. For the third consecutive year, Eletrobras was listed in the new DJSI Emerging Markets Index, created to indicate the companies that adopt best sustainable governance practices.
Slide 7: General Information
Ø General Information Ø Expansion Ø Operational Performance Ø Financial Performance Ø Social Structure Ø Net Debt and Financing Ø Business and Management Plan
Slide 8: 44.2 GW in operation - 33.0% of Brazilian installed capacity
44.2 GW in operation- 33.0% of the Brazillian installed capacity– December 2014 Through Subsidiaries(a) Thourgh Companies Not Renewed participation Total Aggregation Physical Concessions O&M in SPEs (b) (a+b) 2014 Eletronorte 9,398 * 9,597 Chesf 1,401 9,215 11,024 Furnas 4,212 4,617 2,029 10,858 Ele
Slide 9: Installed Capacity by source
Installed Capacity by source- in 12/31/2014 (MW) Hydro Nuclear Wind+ Clean Thermal Total Solar Energy 2014 Eletrobras 37,757 1,990 40,006 4,150 44,156 % by source in the 85.5 % 4.5 % 0.6 % 90.6 % 9.4 % 100.0 % Eletrobras matrix Brasil 89,193 1,990 4,903 96,086 37,827 133,913 % by source in the 66.6
Slide 10: Main Generation Projects under Construction
Main Generation Projects under Construction s Eletrobras eeeciiis = Ma Nov=15 Sinop Ubatuba, Santa atin, Sep-15 400 MW Pitombeira , Cervantes Jan-18 and Carnatba 245 MW Teles Pit Sep-16 TSS Ri me ® Apr-15 ‘ oon H Ventos de Santo Santo Anténio ® H Bod Augusto e Santa Joana 3,568 MW - H 390 MW 2,286 M
Slide 11: Basic Studies and Projects - Generation
Basics Studies and Projects - Generation ») Eletrobras 7 Projects 14,450.6 MW 2 Projects 596 MW. 6 Projects 391 MW 2 Projects 2,200 MW ———— Main Projects Studies and Projects S.LuzdoTapajés. PA 8.040MW 30.6651 = — Suz do Tapajés PA ~—«8040 MW 30.6 Bi Power Tnetalied Jatobs "A238 MW 10.1 BI eres - po
Slide 12: Transmission Lines - Km
Transmission Lines- Km > Eletrobras Our subsidiaries(a) Through «. | h Total * Physical companies Not Renewed Participation (35) Concessions oam in SPEs(b) Eletronorte 680 10,023 1,472 12,174 814 Chesf 1,129 18,563 1,086 20,778 393 Furnas 1,148 18,759 1,361 21,267 165 Eletrosul 1.302 9,838 1,522 12,
Slide 13: Projects Under Construction
Projects Under Construction > Eletrobras Existent Future TLEletrobras System — Tis Eletrobras System with Partnership TLs Other Companies (0) Rio Parané Complex i} Rio Paranapanema Complex (0) Rio Grande Complex @ Rio Paranaiba Complex @ Paulo Afonso Complex Partnership _—Total Participation Capex:
Slide 14: Financial Performance agenda
Ø General Information Ø Expansion Ø Operational Performance Ø Financial Performance Ø Capital Structure Ø Net Debt and Financing Ø Strategic Planning
Slide 15: Evolution of the Result in 2014
Evolution of the Result in 2014 2 Eletrobras 986 R$ million —— 1914 2Q14 |2014| 7105 1,174 -2,738 -3,031 Disregards the portion attributable to non-controlling shareholders. 18
Slide 16: Gross Operating Revenue - Consolidated
Gross Operating Revenue - Consolidated s Eletrobras
Slide 17: Gross Revenue by segment
R$ million CONSOLIDATED 2014 2013 % a) Generation Energy Sold and Maintenance and Operation 21,114 16,435 % Construction Revenue -67 % Itaipu Transfers -98 -244 % b) Transmission Transmission Return Rate % Maintenance and Operation 2,201 2,156 % Construction Revenue 1,786 1,797 -1 % c) Distribution
Slide 18: Investment
Maintenance 664 394 59 % R$ million Investment December 2014 Budget Invested (%) Generation 7,896 6,278 % Corporate Expansion 3,078 2,183 % SPEs Expansion 4,154 3,701 % Transmission 5,096 4,026 % Corporate Expansion 2,771 2,111 % SPEs Expansion 1,642 1,437 % Maintenance % Distribution % Corporate Ex
Slide 19: EBITDA
R$ million EBITDA 2014 2013 (%) Results of the period -2,963 -6,192 -52 % + Provision Income Tax and Social Contribution 1,701 1,367 % + Financial Result -695 -377 % + Depreciation and Amortization 1,777 1,512 % = EBITDA -180 -3,689 -95 % + Atypical Events 1,643 3,767 -56 % = ADJUSTED EBITDA 1,463 1
Slide 20: Positive and negative effects on results
R$ million Positively Energy Sold 12,175 Reversal of Provision - Onerous Contracts 1,800 Tributary Credit Tax 1,200 Reversal of Provision – Financial Assets Recognition of CVA – Distribution Companies Reversal of Provisions – Losses on Investments Negatively Electric Energy Purchase for Resale -10,4
Slide 21: Onerous Contracts
Onerous Contracts R$ million Consolidated Balance Amounts due 2014 2014 2013 2012 4Q14 3Q14 2Q14 1Q14 Transmission Contract 061/2001 - - -384 - Contract062/2001 1,407 - Others - - -114 -15 - 1,491 -25 -255 - Generation Itaparica - 1,019 Jirau - 1,608 Camaçari - -06 Termonorte II - - - - - - Funil -5
Slide 22: Operational Provisions II
Operational Provisinons II 2 Eletrobras Investments realized in Renewed Assets under Law 12,783/2013 R$ 1,199 million 2013 ANEEL Resol in 64: —— Reversal of Provision 09M14 Effects on the Results R$ 792 million Total Provisioned R$ 1,199 million Reversal of Provision 24
Slide 23: Compensation Account for Portion A items (CVA)
R$ million Eletrobras Compensation Account from variation of the Companies items of "Portion A” – CVA Amazonas Energia 89,5 Distribuição Acre 11,1 CELG D 224,7 Distribuição Alagoas 173,4 Distribuição Piauí 193,8 Distribuição Rondônia 47,1 Distribuição Roraima 0,4 Total 740,0
Slide 24: Operating Provisions
Operating Provisions 2 Eletrobras R$ million Operating Provisions oa ated Guarantees 115 84 3,656 1,399 PCLD - Costumers and Resselers 84 -793 PCLD - Financing and Loans -269 106 1,800* 71,925 Losses vestments -314 143 Impairment 149 2,462 Ajustment to Market Value 111 - Provision for losses on Fixe
Slide 25: PMS expenses
R$ million PMS 2014* 2013 (%) Personnel 5,532 6,650 -16.8 % Material 3.8 % Services 2,440 2,299 6.1 % Total 8,279 9,245 -10.4 % * Excludes CELG D expenses that affected only the year 2014.
Slide 26: Indemnities - 1st and 2nd Tranche
1 st Tranche R$ million Recognized Value* Received by2014 Receivable 14.437 12.593 3.738 * Values based on base date of December 2012. 2 nd Tranche: Claimed value by March 2015 of supplementary indemnities: R$ 15,037 million Book Value Claimed Value Approved Value (1) Eletrobras (R$ million) (R$ mil
Slide 27: Results by generation and transmission company
R$ million Eletrobras Net Operating Revenue Service Result Profit/Loss in the Period EBITDA EBITDA Margin Companies 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 Eletronorte 6,046 4,856 1,735 2,033 1,221 1,255 2,240 20.8 % 46.1 % Chesf 3,563 4,098 -1,210 -1,118 -466 -1,040 3.2 % -25.4 % Furnas 6
Slide 28: Results by distribution company
R$ million Eletrobras Net Operating Revenue Service Result Profit/Loss in the Period EBITDA EBITDA Margin Companies 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 Distribuição Acre -105 -152 -94 28.8 % -27.4 % Amazonas Energia 3,610 2,711 -852 -415 -1,655 1,085 -697 30.0 % -25.7 % Distribuição Al
Slide 29: Parent Company Result
Parent Company Result- R$ million > Eletrobras 2013 (236) ‘bomen - —= 585 ve) 708 (180) (1.586) LI a | = (1.360) (1.313) (6,187) Equity Transfer taipu Net Financial Net Monetary Net Exchange Chargeson Provisionsfor Operational Others. Taxes Profit Participation Revenue Update Update Shareholder Cont
Slide 30: General Informations
Ø General Informations Ø Expansion Ø Operational Performance Ø Financial Performance Ø Capital Structure Ø Net Debt and Financing Ø Strategic Planning
Slide 31: General Information
Ø General Information Ø Expansion Ø Operational Performance Ø Financial Performance Ø Capital Structure Ø Net Debt and Financing Ø Strategic Planning
Slide 32: Consolidated Financing
Consolidated Financing- R$ billion > Eletrobras Holding RGR Total: R$ 39.5 billion Consolidated Financing without RGR = R$ 32.1 billion (-) Cash + Marketable Securities = R$ 5.1 billion (-) Financing to Receive without RGR = R$ 9.2 billion (-) Itaipu Reimbursement = R$ 2.6 billion (=) Net Debt witho
Slide 33: Holding Financing
Holding Financing 2 Eletrobras Total: R$ 26.0 billion Financial Institutions Consolidated Financing without RGR = R$ 18.6 billion 37
Slide 34: Holding Financing
Holding Financing- R$ billion > Eletrobras To Receive To Pay R$ 35.2 R$ 26.0 "albu Reimbursement Sources 22-0 441 7A 04 04 Real US Dollar Others @ro receive Qo pay 38
Slide 35: Strategic Planning agenda
Ø General Informations Ø Expansion Ø Operating Perfomance Ø Financial Performance Ø Capital Structure Ø Net Debt and Financing Ø Strategic Planning
Slide 36: Strategic Planning 2015-2030: Overview
Strategic Planning 2015-2030: Overview = a Eletrobras Sustainable Operational Guidelings for Expansion Efficiency Action Model 41
Slide 37: Mission, Vision and Values
Mission Operating in energy market: integrated, profitable and sustai Vision Being among the top three global companies of clean energy and among the ten world's largest electricity companies with profitability recognized by all its stakeholders Values Focus on Result Ethics and Transparency Appreci
Slide 38: Thank You!
Thank You! The Eletrobras Investor Relations Management is on your disposal for any questions or information. www. eletrobras. com. br/elb/ir Investor Relations invest@eletrobras. com Phones: +55 (21) 2514-6331 +55 (21) 2514-4637
Brazilian Electric Power — Investor Presentation (April 2015) on 6ix