ENGIE Brasil Energia S.A. Results Presentation 2Q20
July 30, 2020
This publication may include forward-looking statements on events or results pursuant to Brazilian and international securities' regulations. These forward-looking statements are based on certain assumptions and analyzes made by ENGIE Brasil Energia S.A. ("ENGIE Brasil Energia", "Company" or "EBE"), - previously denominated Tractebel Energia S.A. -, in accordance with its experience and the economic scenario, market conditions and expected events, many of which are outside the control of ENGIE Brasil Energia. Important factors which can lead to significant differences between effective results and the forward-looking statements with respect to events or results, include the business strategy of ENGIE Brasil Energia, economic and international conditions, technology, financial strategy, development of the government services industry, hydrological conditions, conditions in the financial markets, uncertainty surrounding the results of its future operations, plans, objectives, expectations and intentions and other factors. In the light of these factors, the effective results of ENGIE Brasil Energia may differ significantly from those indicated or implicit in the forward-looking statements with respect to events or results.
The information and opinions contained herein should not be understood as a recommendation to potential investors and no investment decision should be based on the veracity, topicality or completeness of this information or these opinions. None of the advisors to ENGIE Brasil Energia or the parties related thereto or their representatives shall accept responsibility for any losses, which may occur as a result of the use or the content in this presentation.
This material includes forward-looking statements as to events subject to risks and uncertainties, which based on existing expectations and forecasts on future events and tendencies, may affect the businesses of ENGIE Brasil Energia. These forward-looking statements include forecasts of economic growth and energy supply and demand as well as information on competitive position, the regulatory environment, growth potential opportunities and other matters. Innumerous factors can affect adversely the estimates and assumptions on which these statements are based.
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 2 |
01 Highlights
02 Shareholding Structure and Business Segments
03 Energy Market in Brazil
04 Sales and Energy Trading Strategy
05 Expansion
06 Financial Performance
07 Supporting Data
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HIGHLIGHTS
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 |
Principais(in R$ million)indicadores financeiros e operacionais:2Q20 | 2Q19 | Chg. | 6M20 | 6M19 | Chg. | |||
Net Operating Revenue (NOR) | 2,686.5 | 2,176.5 | 23.4% | 5,281.1 | 4,515.2 | 17.0% | ||
(valores | ||||||||
Results from Operations (EBIT) | 1,198.8 | 848.4 | 41.3% | 2,295.3 | 1,865.1 | 23.1% | ||
Ebitda | (1) | 1,431.6 | 1,052.0 | 36.1% | 2,763.5 | 2,264.8 | 22.0% | |
Ebitda / NOR - (%) (1) | 53.3 | 48.3 | 5.0 p.p. | 52.3 | 50.2 | 2.1 p.p. | ||
Net Income | 765.8 | 385.4 | 98.7% | 1,277.8 | 950.9 | 34.4% | ||
Return On Equity (ROE) (2) | 35.5 | 30.4 | 5.1 p.p. | 35.5 | 30.4 | 5.1 p.p. | ||
Return On Invested Capital (ROIC) (3) | 19.1 | 17.5 | 1.7 p.p. | 19.1 | 17.5 | 1.7 p.p. | ||
Net Debt (4) | 10,771.9 | 11,371.2 | -5.3% | 10,771.9 | 11,371.2 | -5.3% | ||
Power Production (avg. MW) (5) | 2,190 | 4,446 | -50.7% | 2,901 | 4,859 | -40.3% | ||
Energy Sold (avg. MW) (6) | 4,073 | 4,025 | 1.2% | 4,205 | 4,107 | 2.4% | ||
Average Net Sales Price (R$/MWh) (7) | 195.79 | 189.87 | 3.1% | 193.92 | 188.96 | 2.6% | ||
Number of Employees - Total | 1,645 | 1,413 | 16.4% | 1,645 | 1,413 | 16.4% | ||
EBE Employees | 1,575 | 1,386 | 13.6% | 1,575 | 1,386 | 13.6% | ||
Employees on Under Construction Plants | 70 | 27 | 159.3% | 70 | 27 | 159.3% | ||
Notes:
- Ebitda represents: net income + income tax and social contribution + financial result + depreciation and amortization + impairment.
- ROE: net income of the past 4 quarters/shareholders' equity.
- ROIC: effective tax rate x EBIT / invested capital (invested capital: debt - cash and cash equivalents - deposits earmarked for debt servicing + SE).
- Adjusted amount, net of gains from hedge operations.
- Total gross electricity output from the plants operated by ENGIE Brasil Energia.
- Disregarding sales for quotas regime (Jaguara and Miranda HPPs).
- Net of taxes and trading operations.
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 5 |
Main effects of the Covid-19 in 2Q20:
- load reduction increasing the Generation Scaling Factor (GSF);
- average reduction of 7.8% in consumption and 5.5% in billed energy of free customers, within the contractual limits, partially compensated by energy settlement at CCEE;
- reduction of the Price for Settlement of Differences (PLD); and
- significant investments in the prevention of Covid-19 aiming at protecting employees and communities.
Actions taken to tackle the Covid-19:
- home office working widely adopted;
- operational teams working on a shift basis;
- use of rapid testing methods;
- protocols for sanitation, as well as joint initiatives with the community;
- renegotiation of payment terms for 273 average MW of energy contracted at free market, seeking to temporarily relieve the most affected sectors; and
- actions to contain defaults, maintaining historical levels;
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 6 |
Announced the acquisition of | Consistent sales of energy, | Approved the distribution of |
the additional stake of 3.25% | maintaining the level of the | interim dividends, in the |
in TAG, out of the 10% still | average net price at | amount of R$ 677.7 million (R$ |
held by Petrobras, for the | R$ 190/MWh. | 0.8305/share), equivalent to |
amount of | Uncontracted commercial | 55% of the distributable net |
R$ 327 million. | capacity decreased around 100 | income reported for the first |
average MW in 2021 and 2022, | half of 2020. | |
and above 150 average MW | The shares will trade ex- | |
from 2023 to 2025. | dividends from August 10, 2020, | |
payout to be made on a date to | ||
be decided by the Management | ||
Board. |
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New E-conomiza product | The Carbon Credits Project of |
was launched, designed to | the Campo Largo Wind |
help companies | Complex - Phase II was |
migrate to the Free Market | registered under the Clean |
for energy. | Development Mechanism (CDM) |
and will contribute to a reduction | |
of approximately 790 thousand | |
tons of CO2 emissions. |
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 8 |
SHAREHOLDING STRUCTURE
AND BUSINESS SEGMENTS
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ENGIE S.A.
99.12%
Energy International
100.00%
Brasil Participações Ltda.
100.00% | 40.00% | 68.71% | 100.00% |
Geramamoré | Energia | EGIEY | ||||||||||||||||||||||||
ADR | ||||||||||||||||||||||||||
Part. e Comerc. | Sustentável do | |||||||||||||||||||||||||
de Energia | Brasil | NÍVEL I | Brasil Energia | ENGIE Soluções | ||||||||||||||||||||||
S.A. | ||||||||||||||||||||||||||
100.00% | 48.75% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 99.99% | 100.00% | 32.50% | 99.90% | ||||||||||||||||
Companhia | ITASA | Companhia | Companhia | Lages | ENGIE | |||||||||||||||||||||
Energética | Itá Energética | Pampa Sul | Energética | Energética | Brasil Energia | Geração Solar | Transmissão | |||||||||||||||||||
Brasil Energias | Bioenergética | |||||||||||||||||||||||||
Estreito | S.A. | Jaguara | Miranda | de Energia | ||||||||||||||||||||||
Complementares | Comercializadora | Distribuída |
40.07% | 100.00% | 100.00% | |||
CESTE | Tupan | Hidropower | |||
Consórcio | |||||
Estreito Energia |
Note:
1 Simplified chart for illustrative purpose only.
95.00% 100.00%
IbitiúvaEnergias
Bioenergética Eólicas do Nordeste
100.00% | 100.00% | 100.00% | 100.00% | 99.90% | 100.00% | 100.00% | |||||||
Energias | Gralha Azul | Novo Estado | |||||||||||
Ferrari | Eólicas do | Campo Largo | Assú V | Transmissão | Umburanas | Transmissora | |||||||
Ceará | de Energia S.A. | de Energia |
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 |
10 |
IN A DIVERSIFIED PORTFOLIO OF ASSETS
60 power plants operated
with own installed capacity of
8,710.5 MW (as from 06/30/2020)
DISTRIBUTED SOLAR | |
~2,800 Km of | GENERATION |
transmission lines | Total of 2,526 installed |
under implementation | systems, with |
44,497 kWp | |
of capacity | |
(as from 06/30/2020) |
NATURAL GAS
(TAG)
4,500 Km of pipelines | TRADING | |
Start of | ||
in the Southeast, Northeast | ||
operations in 2018 | ||
and North regions | ||
• | EBE's stake of 32.5% | |
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 |
1
60 plants
73%
Hydro
14%
Thermal
13%
Complementary
Key
Hydro
Thermal
Complementary
Expansion
Transmission
TAG
Note:
1 The transfer of the 40% stake of ENGIE Brasil Part. in Jirau HPP to EBE should be examined timely.
11
RELEVANCE AMONG POWER PRODUCERS
EBE is part of the largest independent power producer group in the country and is positioned to capture business opportunities.
Energy Generation | Proprietary Operating Installed Capacity (MW)
8,711 8,711
7,678 8,005
6,908 6,909 6,965 7,027 7,044 7,010
5,890 5,918 6,094 6,188 6,431 6,472
4,846 5,036
3,719 3,719
1998 1999 2000 2001 2002 2003- 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2Q20 2006
Private Sector - Own Installed Capacity1 (GW)
10.6 | Current installed capacity | ||||||||||||||||
1.9 | |||||||||||||||||
5.8 | 4.9 | Installed capacity under expansion5 | |||||||||||||||
4.4 | 4.6 | 4.7 | |||||||||||||||
8.7 | 0.1 | 1.1 | 2.8 | ||||||||||||||
5.8 | 1.3 | 2.0 | 1.9 | 1.8 | |||||||||||||
4.3 | 3.8 | 0.1 | |||||||||||||||
3.3 | |||||||||||||||||
2.7 | 2.7 | 1.9 | 1.8 | ||||||||||||||
ENGIE | CTG | CPFL | Neoenergia | AES | EDP | Enel | Eneva | SPIC | |||||||||
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 |
Brazil - Existing Installed Capacity2,3
CPFL AES ENEL Cemig3.4% 2.6% 2.1% 1.6%
Copel
3.6%
CTG 3.6%
Petrobras
4.1%
Itaipu | Other |
4.3% | 41.5% |
ENGIE4
6.3%
Eletrobras
26.9%
Source: Aneel, Companies' websites and in-house studies.
Notes:
- Apparent sum-related errors are a result from rounding of addends.
- Amount corresponding to National Interlinked System (SIN), considering the Operation Monthly Program (PMO) as of January 2020.
- Includes only the Brazilian part of Itaipu.
- Considering the consolidated installed capacity of the group in Brazil, including HPP Jirau.
- Based on information from Aneel, ONS and internal study.
12
TRANSPORTADORA ASSOCIADA DE GÁS (TAG)
Increase of equity interest in TAG confirming the ability to capture opportunities in the Brazilian infrastructure energy segments.
RR
Solimões AM Basin
AP | |||
PA | MA | CE | RN |
PI | PB | ||
PE | |||
Characteristics
- ~4,500 km of high-pressure gas pipelines:
3,700 km on the coast
800 km in the Amazon region
- Contracted firm capacity for transporting more than 70 million m3/day, without construction and volume risk (ship or pay contracts).
- 11 compression stations.
- Network with various interconnection points:
- 10 gas distributors
- 90 delivery points
- refineries, fertilizer and power production plants supplied
- 13 active gas entry points (including 2 LNG terminals)
AC
RO
New Shareholding Structure
ENGIE S.A. | ENGIE Brasil | |
Energia | ||
32.5% | 32.5% | 35.0% |
TO | AL | |
MT | BA | SE |
GO | Recôncavo | |
Basin | ||
MG | ES | |
MS | ||
Espírito Santo | ||
SP | RJ | |
Basin | ||
PR | ||
SC | Campos Basin | |
RS | Santos Basin | |
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EXPANDING ITS SHARE IN THE ELECTRIC POWER INDUSTRY
Presence in the energy transmission segment materializing the strategy of diversification in energy infrastructure.
Transmission Segment - Main numbers
Brazil Auctions 2013-2019 - Market Share (%RAP)2
- Total Maximum Annual Allowed Revenue (RAP) of transmission companies: R$ 25.8 billion1.
- Considering all auctions from 2013 to 2019, over than 55 thousand km of lines (R$ 12 billion RAP) were auctioned.
- The auction originally scheduled for June, 2020 was canceled due to the Covid-19 scenario, according to MME3. A single transmission auction will be held in 2020, in December.
Notes:
- Total RAP of transmission companies in the 2019-2020 cycle was approved in REH 2,565/2019.
- Considering the winners in the auctions and the acquisition of Novo Estado Transmissora de Energia by EBE.
- Ministry of Mines and Energy.
Other 28%
Energisa
1%
Elektro
1%
Copel
2%
Sterlite 3%
Cteep
4%
Abengoa
4%
EDP 4%
Taesa
5% Alupar
5%
ENGIE 5%
State Grid
13%
Equatorial
7%
Eletrobras
6%
CYMI 6%
Neoenergia 6%
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 14 |
GREATER PROMIXITY TO THE FINAL CONSUMER
The B2B segment, responsible for projects involving larger installed capacity, strengthens the relationship with large companies,
accounted for 86.3% of commercialized capacity in 2Q20.
ENGIE Geração Solar
Distribuída (EGSD)
Presence in
17 states
Total of 2,526 installed
systems, with 44,497 kWp
of capacity.
Number of units and installed capacity
1,261 | 20,014 | |||||
5,510 | 10,059 | 8,562 | ||||
352 | 666 | 6,793 | ||||
3,920 | ||||||
459 | ||||||
27 | 113 | 130 | 49 | |||
2016 | 2017 | 2018 | 2019 | 1H20 | 2Q19 | 2Q20 |
Installed | Photovoltaic systems installed |
capacity (kWp) | |
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ENERGY MARKET
IN BRAZIL
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 16 |
- Supply: in the past, supplied by hydroelectric plants with reservoirs. Currently, a greater presence of thermoelectric and hydroelectric run-of-river plants. Continuous expansion of supply from intermittent sources and water shortages recurrence
- Demand: with the pandemic, demand decreased. The resumption of load will depend on the return of economic activity.
- Surplus of capacity in the short-medium term, with a scarcity of energy and storage
- Outlook for low growth in 2020 in the light of Covid-19
- Smaller volatility of spot prices at a lower level
Theoretical Supply x Demand | Distribution of Supply by Source |
MW) | 26.000 | 90 | 800 | ||||||||||||||||||||||||||||||||||||||
24.000 | |||||||||||||||||||||||||||||||||||||||||
(av. | 22.000 | 80 | 700 | ||||||||||||||||||||||||||||||||||||||
20.000 | |||||||||||||||||||||||||||||||||||||||||
andSupplyDemand | GW)(Av. | 200 | (R$/MWh) | ||||||||||||||||||||||||||||||||||||||
4.000 | |||||||||||||||||||||||||||||||||||||||||
18.000 | 70 | 600 | |||||||||||||||||||||||||||||||||||||||
16.000 | 60 | 500 | |||||||||||||||||||||||||||||||||||||||
14.000 | |||||||||||||||||||||||||||||||||||||||||
12.000 | 50 | 400 | |||||||||||||||||||||||||||||||||||||||
10.000 | |||||||||||||||||||||||||||||||||||||||||
40 | |||||||||||||||||||||||||||||||||||||||||
8.000 | 300 | ||||||||||||||||||||||||||||||||||||||||
30 | |||||||||||||||||||||||||||||||||||||||||
6.000 | |||||||||||||||||||||||||||||||||||||||||
betweenDifference | Supply2001 | - Demand2004 2005 | (net of GSF)2009 | 2011 | 2012 | 2013 | Supply2015 | - Demand2017 2018 | (disregarding2020E 2021E 2022E | GSF)2024E | 20 | 2002 | 2003 | 2006 2007 | 2008 | 2009 | 2010 | 2015 | 2016 | 2017 | 2018 | 2024E | |||||||||||||||||||
2001 | |||||||||||||||||||||||||||||||||||||||||
2.000 | 10 | 100 | |||||||||||||||||||||||||||||||||||||||
0 | |||||||||||||||||||||||||||||||||||||||||
2002 | 2003 | 2006 | 2007 | 2008 | 2010 | 2014 | 2016 | 2019 | 2023E | 0 | 2004 | 2005 | 2011 | 2012 | 2013 | 2014 | 2019 | 2020E | 2021E | 2022E | 2023E | 0 | |||||||||||||||||||
GSF | Secondary energy | Reserve Energy | |||||||||||||||||||||||||||||||||||||||
Secondary energy | Small Plants | Official Demand | Thermoelectric | ||||||||||||||||||||||||||||||||||||||
GSF | Hydroelectric | Average PLD SE Submarket |
Source: ENGIE Brasil Energia internal study based on official sector documents.
Source: Internal study based on Aneel and ONS data.
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 17 |
SALES AND
ENERGY TRADING STRATEGY
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTTION 2Q20 | 18 |
AMONG DISTRIBUTION, FREE CUSTOMERS AND TRADING COMPANIES
Client Breakdown (based on contracted energy)
First to consistently serve the free market…
56% | 47% | 48% | 47% | 48% |
10% | 17% | 14% | 14% | 11% |
34% | 36% | 38% | 39% | 41% |
2017 | 2018 | 2019 | 2020E | 2021E |
- Flexibility (prices, terms and conditions)
- Opportunistic contracts (purchase/sale)
- Largest consumer market
- Regulated and unregulated contracts (signed until 2004)
Maximizes portfolio's efficiency
Product assembly
Long-term cash flow predictability
Distribution Companies | Trading Companies | Free Customers | |||
…to minimize risks and to maximize portfolio's efficiency.
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 19 |
Free customer industry diversification and a strict credit assessment policy allow for a zero-default reality in the Free Contracting Environment (ACL) and attenuates fluctuations in consumption.
Free customers total sales volume for 2020: 2,625 aMW | Evolution of free customers1 | |||||||||||||||||||||||
17.1% | 2,603 | 2,569 | 2,625 | |||||||||||||||||||||
2,366 | 2,293 | |||||||||||||||||||||||
2,126 | ||||||||||||||||||||||||
11.4% | ||||||||||||||||||||||||
8.8% | 8.3% | 7.4% | ||||||||||||||||||||||
6.6% | 6.0% | 687 | ||||||||||||||||||||||
5.4% | 5.3% | 621 | ||||||||||||||||||||||
4.9% | 4.4% | 569 | ||||||||||||||||||||||
3.9% | 3.8% | 3.4% | 515 | |||||||||||||||||||||
3.3% | ||||||||||||||||||||||||
228 | 280 | |||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2Q19 | 2Q20 | |||||||||||||||||||
Amount of free customers | Free customers contracted volume (aMW) | |||||||||||||||||||||||
Note: | ||||||||||||||||||||||||
Source: Internal study based on IBGE's classification. | ¹ Net of trading operations. |
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 20 |
CONSIDERS THE GRADUAL SALE OF FUTURE ENERGY AVAILABILITY
Uncontracted energy1 (average MW) | Uncontracted energy compared to the availability of a given year |
as of June 30, 2020 | 59% | |||||||||||||||||||||
2,129 | 29% | 13% | 41% | 26% | 13% | 12% | 36% | 20% | 17% | 48% | 43% | 33% | 26% | 50% | 44% | 38% | ||||||
1,658 | 40.9% | |||||||||||||||||||||
1,088 31.6% | ||||||||||||||||||||||
808 | 571 | 765 | ||||||||||||||||||||
19.9% | ||||||||||||||||||||||
12.8% | 13.4% | |||||||||||||||||||||
9.9% | ||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2020 | 2021 | 2022 | 2023 | 2024 | ||||||||||||
Note: | 12/31/2016 | 12/31/2017 | 12/31/2018 | 12/31/2019 | ||||||||||||||||||
¹ Percentage of total resources. | ||||||||||||||||||||||
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 21 |
(in average MW) | 2020 2021 2022 2023 2024 2025 | |||||||||||||
Own Resources | 4,699 | 4,844 | 4,913 | 4,909 | 4,909 | 4,907 | Auction | Reference | Gross Price | Net Price of | ||||
+ Purchases for Resale | 1,623 | 917 | 785 | 561 | 338 | 294 | Gross Price | Date | Adjusted | PIS/COFINS/P&D | ||||
= Total Resources (A) | 6,322 | 5,761 | 5,698 | 5,470 | 5,247 | 5,201 | (R$/MWh) | (R$/MWh) | (R$/MWh) | |||||
Government Auction Sales | 1 | 2,010 | 2,010 | 2,010 | 2,010 | 2,005 | 2,005 | |||||||
2005-NE-2010-30 | 200 | 200 | 200 | 200 | 200 | 200 | 115.1 | Dec-05 | 239.3 | 215.0 | ||||
2006-NE-2009-30 | 493 | 493 | 493 | 493 | 493 | 493 | 128.4 | Jun-06 | 263.1 | 236.4 | ||||
2006-NE-2011-30 | 148 | 148 | 148 | 148 | 148 | 148 | 135.0 | Nov-06 | 274.2 | 246.4 | ||||
2007-NE-2012-30 | 256 | 256 | 256 | 256 | 256 | 256 | 126.6 | Oct-07 | 247.0 | 222.0 | ||||
Proinfa | 19 | 19 | 19 | 19 | 19 | 19 | 147.8 | Jun-04 | 305.3 | 294.2 | ||||
1st Reserve Energy Auction | 12 | 12 | 12 | 12 | 12 | 12 | 158.1 | Aug-08 | 296.1 | 285.3 | ||||
Auction Mix (New Energy / Reserve / DG) | 14 | 14 | 14 | 14 | 9 | 9 | - | - | 288.9 | 278.4 | ||||
2014-NE-2019-25 | 295 | 295 | 295 | 295 | 295 | 295 | 183.5 | Mar-14 | 260.0 | 233.6 | ||||
2014-NE-2019-25 | 10 | 10 | 10 | 10 | 10 | 10 | 206.2 | Nov-14 | 271.5 | 261.6 | ||||
2014-NE-2019-20 | 82 | 82 | 82 | 82 | 82 | 82 | 139.3 | Nov-14 | 184.0 | 167.0 | ||||
2015-NE-2018-20 | 46 | 46 | 46 | 46 | 46 | 46 | 188.5 | Aug-15 | 233.1 | 211.6 | ||||
8th Reserve Energy Auction | 9 | 9 | 9 | 9 | 9 | 9 | 303.0 | Nov-15 | 356.3 | 323.3 | ||||
2014-EN-2019-20 | 48 | 48 | 48 | 48 | 48 | 48 | 136.4 | Nov-14 | 184.3 | 167.3 | ||||
Government Auction - Quotas regime | ||||||||||||||
2018 - Quotas (UHJA) - 2018-30 | 239 | 239 | 239 | 239 | 239 | 239 | - | Jul-17 | 148.4 | 141.6 | ||||
2018 - Quotas (UHMI) - 2018-30 | 139 | 139 | 139 | 139 | 139 | 139 | - | Jul-17 | 167.4 | 159.7 | ||||
+ Bilateral Sales | 3,504 | 3,180 | 2,923 | 2,372 | 1,584 | 1,067 | ||||||||
= Total Sales (B) | 5,514 | 5,190 | 4,933 | 4,382 | 3,589 | 3,072 | ||||||||
Balance (A - B) | 808 | 571 | 765 | 1,088 | 1,658 | 2,129 | ||||||||
2,3 | 190.0 | 190.3 | 190.4 | |||||||||||
Sales Average Price (R$/MWh) (net) : | ||||||||||||||
4 | 180.1 | 177.3 | 171.7 | |||||||||||
Purchases Average Price (R$/MWh) (net) : |
1 XXXX-YY-WWWW-ZZ, where: XXXX -> year of auction
- ->EE = existing energy or NE = new energy
- ->year of delivery start
- ->supply contract duration (in years)
- Sales price, including trading operations, net of ICMS and taxes over revenue (PIS/Cofins, R&D), i.e. future inflation is not being considered.
- Disregarding sales for quotas regime (Jaguara and Miranda HPPs).
- Purchase net price, considering trading operations and benefits from PIS/Cofins credits, i.e. future inflation is not being considered.
Notes:
- The balance refers to the settlement point (net of losses and internal consumption of the plants).
- The average prices are considered simply estimates and are based on financial planning revisions, not capturing volume changes, which are updated quarterly.
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 22 |
EXPANSION
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 23 |
JIRAU HPP | UPDATE
aMW | MW | 50 |
2,212 | 3,750 | |
GENERATING | ||
PHYSICAL | INSTALLED | |
UNITS | ||
GUARANTEE | CAPACITY | |
CAPEX: approximately R$ 20 billion
Financing conditions:
- R$ 9.5 bilhões (initial R$ 7.2 billion + R$ 2.3 billion) with amortization in 20 years: 100% financed by BNDES
- interested rate: TJLP + spread from 2.25% to 2.65%
Majeure lawsuit - recognition of 535 days in First Instance. Analysis processing in the Second Instance.
The transfer of the stake of ENGIE Brasil Part. in Jirau HPP to EBE has put on hold, awaiting more favorable conditions for the discussions to resume.
75
MW
EACH
Energia Sustentável do Brasil (ESBR)
Shareholding Structure
ESBR - estrutura acionária
20%
40%
20%
20%
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 24 |
JIRAU HPP | UPDATE
Options to create additional value
- Constant reservoir level
- Recalculation of transmission tariff
- Sale of carbon credits
Actions in response to Covid-19: | |||
• | Additional long-term tax breaks | • Adoption of standstill agreements with BNDES | |
• Recalculation of GFOM/Renegotiation of GSF | • | Donations of PPEs for hospitals and basic kits | |
• | Rebalancing of the agreement | • | Support to the production of face covers |
Production (MW average)1
-27.7%
3,041
2,199
Uptime
operating factor in 2Q20: 99.6%1
ESBR PPA's portfolio (MW average)
Portfólio de contratos da ESBR (MW médios)
2,212 | 2,212 | ||||
95 | 95 | ||||
14 | |||||
538538
14
Regulated | ||||
Bilateral | ||||
1,565 | 1,565 | Partners | ||
Uncontracted
Losses
2Q192Q20
Note:
1 Subject to final CCEE booking.
2020-20342035-2043
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 25 |
CAMPO LARGO WIND COMPLEX (PHASE II)
Sales contracted in the free market enables the installation of the project
Synergies with the Company's other wind power complexes in the region.
- Medium voltage networks are being installed, interlinking the wind turbines to the collector substation, together with expansion works on this substation.
- Intermittent stoppages persisted in the second quarter due to the Covid-19 pandemic.
D = 150 meters
195 meters | 120 meters |
H = |
Unloading the T1 section of the tower on the CL XIV - 02 platform
Campo Largo Wind Complex - Phase II
BA
CE Campo Largo
Sento Sé and
Umburanas (BA) (Phase II)
Total Installed Capacity:
361.2 MW
Commercial Capacity:
192.5 aMW
Investment (R$mm)1: ~R$ 1,600
Start of
construction: 2019
Nº of wind turbines: 86 (~ 4.2 MW each)
Note:
1 Value as of January 2019.
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 26 |
GRALHA AZUL TRANSMISSION SYSTEM
Investment below Aneel projections
- Civil work in progress at the site of the Ponta Grossa substation and other substations.
- Work on installing the 525KV and 230KV transmission lines also proceeds.
- Restrictions due Covid-19-related preventive measures have had no impact on the start-up of the project scheduled for September 2021.
RAP by section (%)
5.3%
10.1% | ||||||||
6.3% | ||||||||
9.8% | ||||||||
68.5% | ||||||||
Section 1 | Section 3 | Section 5 | ||||||
Section 2 | Section 4 | |||||||
First transmission tower of Gralha Azul
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 |
PR
Gralha Azul
Transmission
Line - PR
Contracted RAP (R$ mm): 231.71
15 lines | Line tension: | |
525 kV | ||
totaling around | ||
1,000 km | (around 526 Km) | |
and five | 230 kV | |
substations | ||
(around 474 Km) | ||
Estimated Capex1: R$ 1.7 billion | ||
Deadline to start | Concession period: | |
operation: March 2023 | 30 years | |
Substation capacity: | ||
1 substation from | 4 substations from | |
525 to 230 kV: | 230 to 138 kV: | |
2,016 MVA | 1,350 MVA |
Note:
1 Value as of December 2017.
27
NOVO ESTADO TRANSMISSORA DE ENERGIA
The project's installation license has already been issued by IBAMA and civil work began on May 18.
- Expanded participation in energy transmission via acquisition.
- Entry into operations forecasted for December 2021.
SE XINGU 500
KV (EXPANSION)SE ITACAIUNAS 500 KV
(EXPANSION)
SE SERRA
PELADA 500 KV
(NEW)
SE MIRACEMA 500 KV
(EXPANSION)
PA
Novo Estado | TO |
Transmission | |
Project - PA/TO | |
Contracted RAP (R$ mm): 313.11 |
-
Around 1,800 km of 500 kv
transmission lines, crossing 22
municipalities
Estimated Capex: R$ 3.0 billion1
Deadline to start | Concession period: |
operation: March 2023 | 30 years |
Substations:
1 new | Expansion of 3 |
substation | existing |
of 500 Kv | substations |
Note:
1 Value as of March 2020, does not consider cost of acquisition.
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 28 |
ENGIE Brasil Energia has also a portfolio of assets under development. Some of them are presented below.
Assú I, II, III and IV Photovoltaic Centrals - RN
Installed Capacity: 120 MW
Sto. Agostinho WC - RN
Installed Capacity: 800 MW
Umburanas WC - BA (Phase II)
Installed Capacity: 250 MW
Campo Largo WC - BA (Phase III)
Installed Capacity: 250 MW
Campo Largo Photovoltaic Complex - BA
Installed Capacity: 400 MW
Alvorada Photovoltaic Complex - BA
Installed Capacity: 90 MW
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 29 |
FINANCIAL PERFORMANCE
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTTION 2Q20 | 30 |
Efficiency in the management of the portfolio and the focus on contracting strategies has enabled the Company to report consistent results despite periods of economic instability and accelerated investment cycles.
Net Operating Revenue | Ebitda | Net Income |
(R$ million) | (R$ million) | (R$ million) |
9,804 | ||||||||||||||
8,795 | 5,163 | 2,315 | 2,311 | |||||||||||
7,010 | 4,367 | 2,005 | ||||||||||||
3,520 | ||||||||||||||
+23.4% | +36.1% | +98.7% | ||||||||||||
2,687 | 1,432 | 766 | ||||||||||||
2,176 | ||||||||||||||
1,052 | ||||||||||||||
385 | ||||||||||||||
2017 | 2018 | 2019 | 2Q19 | 2Q20 | 2017 | 2018 | 2019 | 2Q19 | 2Q20 | 2017 | 2018 | 2019 | 2Q19 | 2Q20 |
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 31 |
Net operating revenue change (R$ million)
9,804 | |||||||||||||||
8,795 | |||||||||||||||
7,010 | 27% | 29% | 4th Quarter | ||||||||||||
6,472 | 6,512 | 6,442 | |||||||||||||
5,569 | 3 | rd | Quarter | ||||||||||||
27% | 26% | 26% | 29% | 25% | 5,281 | % of the net | |||||||||
27% | 28% | ||||||||||||||
2nd Quarter | operating revenue | ||||||||||||||
27% | 25% | 25% | 24% | 51% | |||||||||||
25% | 24% | 22% | 1st Quarter | ||||||||||||
24% | |||||||||||||||
23% | 21% | 24% | 24% | ||||||||||||
24% | 49% | ||||||||||||||
25% | 25% | 25% | 25% | 23% | 21% | ||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||
128 | 411 | (15) | 2,6871 9 | ||||||||||||
(37) | |||||||||||||||
2,176 | 80 | 37 | 36 | 20 | (10) | 2 | (15) | 434 | |||||||
254 | |||||||||||||||
269 | 23 | ||||||||||||||
22 | Generation and portfolio's sale | ||||||||||||||
Trading | |||||||||||||||
1,862 | 1,990 | Transmission | |||||||||||||
Photovoltaic panels | |||||||||||||||
NOR 2Q19 | Tax | Average | Sales | Indemnities | Rem. | ST trading/ | Other | Trading | Transmission Photovoltaic NOR 2Q20 | ||||||
recovery | sales price | volume | received | financial | CCEE | panels | |||||||||
assets | |||||||||||||||
Note: |
1 Apparent sum-related errors are a result from rounding of addends.
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 32 |
CONTRIBUTION OF THE RESULT FROM TRANSPORTADORA ASSOCIADA DE GÁS (TAG) TO EBE'S EBITDA
EBE's 29.25% stake in TAG contributed with R$ 161,5 million via equity income to the Company's Ebitda in 2Q20.
Income Statement TAG (R$ million) | |||||||
1,414 | (563) | ||||||
(31) | (346) | ||||||
(168) | 246 | 552 | |||||
162 | Contribution to EBE's Ebitda | ||||||
NOR TAG | Costs of | General and | Financial | Income taxes | Credit on | Net income | |
2Q20 | services | administrative | result | tax incentives | TAG 2Q20 | ||
expenses |
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 33 |
Ebitda change (R$ million)
5,163 | ||||||||||||||||||||||||||||||||||||||||||||
3,520 | 4,367 | 26% | 4th Quarter | |||||||||||||||||||||||||||||||||||||||||
25% | % of the | |||||||||||||||||||||||||||||||||||||||||||
3,043 | 2,895 | 3,115 | 3,176 | 3rd Quarter | ||||||||||||||||||||||||||||||||||||||||
31% | 31% | 2,764 | accumulated | |||||||||||||||||||||||||||||||||||||||||
21% | 26% | 23% | 2nd Quarter | |||||||||||||||||||||||||||||||||||||||||
31% | 31% | annual Ebitda | ||||||||||||||||||||||||||||||||||||||||||
20% | 52% | |||||||||||||||||||||||||||||||||||||||||||
27% | 25% | 1st Quarter | ||||||||||||||||||||||||||||||||||||||||||
35% | 25% | 28% | 20% | |||||||||||||||||||||||||||||||||||||||||
24% | ||||||||||||||||||||||||||||||||||||||||||||
24% | 24% | |||||||||||||||||||||||||||||||||||||||||||
19% | ||||||||||||||||||||||||||||||||||||||||||||
10% | 23% | 48% | ||||||||||||||||||||||||||||||||||||||||||
28% | 24% | 25% | 25% | 25% | 24% | |||||||||||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||||||||||||||||
188 | 1,4322 | |||||||||||||||||||||||||||||||||||||||||||
24 | 20 | (37) | ||||||||||||||||||||||||||||||||||||||||||
73 | 34 | 30 | (20) | (18) | (13) | (3) | 18 | 4 | 162 | |||||||||||||||||||||||||||||||||||
1,052 | 80 | 21 | 3 | |||||||||||||||||||||||||||||||||||||||||
3 | 1,251 | Generation and portfolio's sale | ||||||||||||||||||||||||||||||||||||||||||
1,078 | Trading | |||||||||||||||||||||||||||||||||||||||||||
Transmission | ||||||||||||||||||||||||||||||||||||||||||||
Photovoltaic panels | ||||||||||||||||||||||||||||||||||||||||||||
Equity income (TAG) | ||||||||||||||||||||||||||||||||||||||||||||
(1) | 0 | |||||||||||||||||||||||||||||||||||||||||||
(4) | ||||||||||||||||||||||||||||||||||||||||||||
(27) | ||||||||||||||||||||||||||||||||||||||||||||
Ebitda | Tax | Price and | Purchases | Fuel Royalties | Indemnities | Rem. | Third party | ST trading/ | Charges | Photovoltaic Transmission Trading Equity | Ebitda | |||||||||||||||||||||||||||||||||
2Q19 | recovery | sales | for | received | financial | services, | CCEE1 | for use | panels | income | 2Q20 | |||||||||||||||||||||||||||||||||
volume | portfolio | assets | oper. | of the | (TAG) | |||||||||||||||||||||||||||||||||||||||
provisions, | electricity | |||||||||||||||||||||||||||||||||||||||||||
and other | grid |
Notes:
- Considers the combined effect of changes in revenue and expenses.
- Apparent sum-related errors are a result from rounding of addends.
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 34 |
Net income change (R$ million) | ||||||||||||
2,315 | 2,311 | |||||||||||
2,005 | 27% | 4th Quarter | ||||||||||
1,548 | 33% | |||||||||||
1,437 | 1,383 | 1,501 | 35% | rd | Quarter | % of the | ||||||
32% | 1,278 | 3 | accumulated | |||||||||
20% | 40% | 31% | 21% | 2nd Quarter | ||||||||
35% | 18% | annual net income | ||||||||||
28% | 60% | |||||||||||
39% | 23% | 26% | 25% | 25% | 17% | 1st Quarter | ||||||
22% | 21% | |||||||||||
14% | ||||||||||||
5% | 24% | |||||||||||
22% | 21% | 40% | ||||||||||
30% | 21% | 23% | 22% | |||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||
122 | (92) | |||||||||||
380 | (29) | 766 | ||||||||||
385 | ||||||||||||
Net income | Ebitda | Financial | Income | Depreciation | Net income | |||||||
2Q19 | result | taxes | and amortization | 2Q20 |
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 35 |
Creation of shareholder value: high levels of ROE and ROIC.
ROE1 - Return on Equity (%) | ROIC2 - Return Over Invested Capital (%) | ||
36.6 | 35.5 | ||
33.0 | |||
22.8 | 23.0 | ||
29.3 | 30.4 | ||
20.8 | |||
17.5 | 19.1 | |||||||||||||
2017 | 2018 | 2019 | 2Q19 | 2Q20 | 2017 | 2018 | 2018 | 2Q19 | 2Q20 |
Source: ENGIE Brasil Energia internal study based on the Company's Financial Statements.
Notes:
- ROE: net income of the past 4 quarters / shareholders' equity.
- ROIC: effective tax rate x EBIT / invested capital (invested capital: debt - cash and cash equivalents - deposits earmarked for debt servicing + SE).
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 36 |
WITH NO CURRENCY EXPOSURE
Adjustment in leverage, at competitive cost, fostering growth opportunities.
Debt Overview (R$ million)
15,8231 | 4,799 | ||||||
14,4371 | 100% | ||||||
100% | |||||||
2.8x | 2.8x | 251 | 10,772 | ||||
9,4981 | |||||||
million) | |||||||
6,7381 | 100% | ||||||
2.2x | 2.0x | ||||||
(R$ | 1.9x | 100% | 1.9x | ||||
1.6x | |||||||
0.46
0.38 | 0.29 | |
1.3x | 0.25 | |
3Ebitda / Debt Total
2017 | 2018 | 2019 | 2Q20 | Cash and | Escrow | Net debt | |
equivalents | deposits | 2Q20 | |||||
Local Currency Debt | FFO2 / Total Debt | Total Debt / LTM Ebitda3 | Net debt / LTM Ebitda3 | ||||
% |
Notes:
- Debt net of hedge operations.
- Funds from Operations.
- Ebitda in the past 12 months.
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 37 |
Net debt change (R$ million)
604 | 271 | 199 | 134 | 37 | 32 | 11 | 9 | 5 | (1,237) | |||||||||||
(322) | ||||||||||||||||||||
11,084 | (53) | (2) | 10,772 | |||||||||||||||||
Net debt | Working | Dividends | Accrued | Investments Concessions | Income | Acquisitions Capitalized | Leases | Operating | Dividends | Fx change Others | Net debt |
03/31/2020 | capital | and IoSE | interest1,2 | paid | taxes | interest | paid | activities | received | over debt, | 06/30/2020 |
variation | paid | net1,2 | |||||||||
(TAG) | |||||||||||
Notes:
- Does not impact the Company's cash position.
- The interests and FX change refer only to the Company's financial debt (loans, financing and debentures).
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 38 |
COMPETITIVE COSTS AND DEFENSIVE INDEXES
AAA rating and robust cash generation translate into competitive costs of debt for financing growth.
Maturity debt schedule (R$ million) | Breakdown of debt |
3,241 | 3,434 | ||||||||||
2,600 | |||||||||||
1,254 | 1,676 | 1,459 | |||||||||
982 | |||||||||||
378 | 583 | ||||||||||
216 | |||||||||||
Jul/20 to | Jul a 2022 | 2023 2024 2025 2026 | 2031 2036 | 2041 | |||||||
Jun/21 | Dec/21 | to 2030 to 2035 to 2040 to 2044 |
New expansion cycle represented an opportunity to optimize EBE's capital structure.
TJLP
21% IPCA
49%
CDI 30%
Nominal cost of debt: 5.8% p.y.
(8.0% in 2Q19)
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 39 |
The expansion plan and maintenance CAPEX are supported by a strong cash flow generation and prudent funding strategy.
Accomplished/expected CAPEX and corresponding financing sources (R$ million)
5,538
3,1763,520
2,005
1,548
1,190
636
554
20162017
3,864
5,163 | ||||
4,367 | 4,9032 | |||
4,434 | ||||
3,452 | ||||
2,315 | 2,311 | 2,485 | ||
2,386 | 5,1802 | 4,567 | 1,510 | |
1,066 | (277) | (133) | 975 | 247 |
2018 | 2019 | 2020E | 2021E | 2022E |
Ebitda
Net income
Shareholder's equity funded, including acquisitions
Debt funded, including acquisitions liabilities1
Notes:
- Does not consider interests incurred during the construction.
- Considering the acquisition of a stake in TAG, which closing took place on 06/13/2019.
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 40 |
- By-lawminimum 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)
1.75 1.90 1.81
2.79
2.45 |
1.82 |
1.53 |
0.93 | 0.76 |
72% | |
5.7% | 58% |
5.0% | |
0.81 100% 100% 100%0.96
55% | 8.2% | 7.1% | 6.3% | 55% |
4.5% | 3.5% | |||
1.02 | 100% | 100% | 100% | 0.83 | |
57% | |||||
55% | 6.1% | 8.6% | 9.2% | 55% | |
3.7% | 3.5% | ||||
1.9% | |||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 20194 | 6M20 | ||
Dividend per Share (R$)1 | Payout2 | Dividend Yield3 | ||||||||||||
Notes:
- For the purposes of comparability between fiscal years, an adjustment in dividend per share was made in the light of the share bonus approved on December 07, 2018.
- Considers the annual payable net income.
- Based on volume-weighted closing price of ON shares in the period.
- Figures for 2019 were resubmitted in the light of the AGM's decision on the retention of interim dividends for fiscal year 2019.
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 41 |
STRATEGIC INDUSTRY
- Defensive profile in times of crisis ✓ Projects with high bankability
- Diversification among segments in the power sector
PREMIUM RATING
- Fitch Ratings rated the Company's Local Long-Term Rating as 'AAA(bra)' and in global scale "BB", one notch
above the Brazilian sovereign rating
HIGH-CALIBER CORPORATE
GOVERNANCE AND SUSTAINABILITY
- Diversified and qualified team
- First class controlling shareholder
- Component of B3's Novo Mercado and ISE (since its inception in 2005)
INDUSTRY LEADERSHIP
- Largest independent power producer group in Brazil
- Market cap: R$ 34.3 billion in 06/30/2020
- Controlled by ENGIE S.A., world leader in energy
CLEAR COMMERCIAL STRATEGY
✓ Heavily contracted in the next years
- Diversified portfolio between free customers and regulated ones
- Benefits from windows of opportunities
STABLE FINANCIAL PERFORMANCE
✓ Strong cash flow
- ROE and ROIC above sector median
- No FX exposure
CASH FLOW PREDICTABILITY
- Inflation-indexedcontracts
- Hydro based, with diversification on complementary sources and active portfolio management
- Long-termcontracting strategy
HIGH OPERATIONAL PERFORMANCE
- Benchmark indexes of availability
- ISO 9001, 14001 and OHSAS 18001 certified plants
- Use of advanced technology for remote operations and predictive maintenance
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 42 |
SUPPORTING DATA
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 43 |
Hydro Power Plants | Installed | Commercial | |
Capacity (MW) | Capacity (aMW)7 | ||
1 | Salto Santiago | 1,420.0 | 733.3 |
2 | Itá | 1,126.91 | 564.71 |
3 | Salto Osório | 1,078.0 | 502.6 |
4 | Cana Brava | 450.0 | 260.8 |
5 | Estreito | 435.61 | 256.91 |
6 | Jaguara | 424.0 | 341.0 |
7 | Miranda | 408.0 | 198.2 |
8 | Machadinho | 403.91 | 165.31 |
9 | São Salvador | 243.2 | 148.2 |
10 | Passo Fundo | 226.0 | 113.1 |
11 | Ponte de Pedra | 176.1 | 133.6 |
Total | 6,391.7 | 3,417.7 | |
Thermal Power Plants | Installed | Commercial | |
25 | ||||||
29 | 5 | |||||
26 | 29 | |||||
9 | ||||||
Installed capacity of 8,710.5 MW | 4 | |||||
KeyL genda | 20 | 21 | ||||
(4,970.9 aMW), | ||||||
11 | 7 | |||||
4,500 Km of operating pipelines | idrelétrica | 6 | ||||
22 | ||||||
Hydro | ||||||
ermelétrica | 17 | |||||
and ~2,800 Km of transmission | Thermal | |||||
Complementar | 28 | |||||
lines under implementation. | Complementary | 3 1 23 | ||||
m Construção | ||||||
Expansion | 10 2 | 19 24 | ||||
Transmission | ||||||
8 12 | ||||||
TAG | 13 | |||||
Gas Pipelines | Size | Compression Stations | ||||
25 Transportadora Associada de Gás (TAG) | 4,500 Km | 11 |
16 |
18
142715
25
Capacity (MW) | Capacity (aMW) | ||
12 | Jorge Lacerda Complex2 | 857.0 | 649.9 |
13 | Pampa Sul | 345.0 | 323.5 |
Total | 1,202.0 | 973.4 | |
Complementary P. Plants | Installed | Commercial | |
Capacity (MW) | Capacity (aMW) | ||
14 | Umburanas Complex (Wind)3 | 360.0 | 213.3 |
15 | Campo Largo I Complex (Wind)4 | 326.7 | 166.5 |
16 | Trairi Complex (Wind)5 | 212.6 | 100.8 |
17 | Ferrari (Biomass) | 80.5 | 35.6 |
18 | Assú V (Solar) | 30.0 | 9.2 |
19 | Lages (Biomass) | 28.0 | 16.5 |
20 | Rondonópolis (SHP) | 26.6 | 14.0 |
21 | José G. da Rocha (SHP) | 24.4 | 11.9 |
22 | Ibitiúva (Biomass) | 22.91 | 12.01 |
23 | Nova Aurora (Solar) | 3.0 | n/a |
24 | Tubarão (Wind) | 2.1 | n/a |
Total | 1,116.8 | 579.8 |
Expansion
Generation | Installed Capacity | Commercial Capacity | |
(MW) | (aMW) | ||
26 | Jirau (Hydro)6 | 1,500.0 | 884.6 |
27 | Campo Largo II Complex (Wind) | 361.2 | 192.5 |
Total | 1,861.2 | 1,077.1 | |
Transmission | Size | Substations | |
28 | Gralha Azul | ~ 1,000 Km | 5 |
29 | Novo Estado | ~ 1,800 Km | 1 new and expansion of 3 |
existing | |||
Total | ~ 2,800 km |
Notes:
- Portion owned by ENGIE Brasil Energia.
- Complex comprised by three power plants.
- Complex comprised by 18 wind farms.
- Complex comprised by 11 wind farms.
- Complex comprised by eight wind farms.
- The transfer of the 40% stake of ENGIE Brasil Part. in Jirau HPP to EBE should be examined timely.
- Considers the physical guarantee revision in effect from January 1, 2018, pursuant to MME Ordinance 178/2017.
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 44 |
CONTRACTS BREAKDOWN AND INDEBTEDNESS
High level of contracted volume in the regulated market, for an average term of approximately 10 years. Financing structure with competitive cost and protected from exchange variation.
Contracts breakdown | Debt profile - TAG | ||||||
as of June 30, 2020 | |||||||
Approx. | Agreement | Termination of | Contracted | % of the Net | |||
Gas Pipelines | size | Volumes | Operating | ||||
Maturity1 | Authorization | R$ 9.9 billion | |||||
(km) | (MM m³/day) | Revenue2 | Foreign market | ||||
R$ 14.0 billion |
Gasene | 1,400 | Nov-2033 | Mar-2039 | 30.3 | 36.9% |
Malha NE | 2,000 | Dec-2025 | Mar-2039 | 21.6 | 24.0% |
Pilar-Ipojuca | 200 | Nov-2031 | Nov-2041 | 15.0 | 6.6% |
Urucu-Coari- | 800 | Nov-2030 | Nov-2040 | 6.7 | 32.5% |
Manaus | |||||
Lagoa Parda | 100 | Under | Mar-2039 | 0.7 | - |
Vitoria | negotiation | ||||
Total | ~4,500 | 74.3 | 100.0% | ||
Notes:
- Following the expiry of the agreements, a five-year tariff revision cycle will be triggered, which will decide the revised maximum permitted revenue flow (RAP).
- Variations in revenue representativeness between GTAs may occur.
R$ | 7 | Domestic market |
R$ | 13.6 billion |
Domestic market: ~CDI + 1.80% p.y., with semi-annual amortizations and maturing in June 2026.
Foreign market*: Libor + initial spread of 2.3%, with semi-annual amortizations and maturing June 2027.
*The portion of the debt denominated in foreign currency was converter by Ptax of R$ 5.476 as of June 30, 2020 and is linked to US Dollar sales under part of the Gasene agreement, thus being a symmetry between revenue and debt servicing.
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 45 |
Number of employees
1,386 | 1,575 | Administrative | |||||||
31.4% | |||||||||
29.9% | Renewables | ||||||||
Thermal | |||||||||
40.1% | 40.4% | ||||||||
30.0% | 28.2% | ||||||||
2Q192 | 2Q20 | ||||||||
By age group | |||||||||
8% | 7% | ||||||||
15% | Less than 25 | ||||||||
36% | 25 to 34 | ||||||||
35 to 44 | |||||||||
45 to 54 | |||||||||
34% | More than 55 | ||||||||
Notes:
- Does not consider employees posted to projects under construction.
- Reclassification of employees in 2Q19 for comparison purposes between periods under analysis.
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 |
By gender
1,081 | |||
22% | 12% | ||
494 | |||
88% | Female | ||
43% | Male | ||
78%57%
Administrative Operations
By academic qualifications
1%
15%
Post-Graduate | |||
50% | University-educated | ||
33% | High School Diploma | ||
Primary School | |||
46
Item | Dimension2 | Index3 |
1 | Operating plants | |
2 | Installed capacity | |
3 | Proprietary capacity | |
4 | Number of certified plants | |
5 | Certified installed capacity (MW) | |
6 | Certified installed capacity in relation to the total | |
7 | Installed capacity from renewable sources | |
Quality | ||
8 | Installed capacity from renewable sources in relation to the total | |
9 | Energy generation (GWh) | |
10 | Certified energy generation | |
11 | Certified energy generation in relation to the total | |
12 | Energy generation from renewable sources (GWh) | |
13 | Energy generation from renewable sources in relation to the total | |
14 | Uptime ratio, excluding scheduled stoppages | |
15 | Uptime ratio, including scheduled stoppages | |
16 | Saplings donated and planted (sum-total of planted and donated | |
saplings) | ||
Material themes
- Prioritization of renewable sources for energy generation
- Emissions Managemen
- Emissions Management |
GRI disclosure4 | 2Q20 | 2Q19 | Change | 6M20 | 6M19 | Change | ||||
102-7, EU1 | 60 | 60 | 0 | 60 | 60 | 0 | ||||
102-7, EU1 | 10,431 | 10,430 | 0.0% | 10,431 | 10,430 | 0.0% | ||||
102-7, EU1 | 8,710 | 8,710 | 0.0% | 8,710 | 8,710 | 0.0% | ||||
102-16, EU6 | 12 | 12 | 0 | 12 | 12 | 0 | ||||
102-16, EU6 | 8,127 | 8,127 | 0.0% | 8,127 | 8,127 | 0.0% | ||||
102-16, EU6 | 77.9% | 77.9% | 0.0 p.p. | 77.9% | 77.9% | 0.0 p.p. | ||||
102-7, EU1 | 9,229 | 9,229 | 0.0% | 9,229 | 9,229 | 0.0% | ||||
102-7, EU1 | 88.5% | 88.5% | 0.0 p.p. | 88.5% | 88.5% | 0.0 p.p. | ||||
EU2 | 4,784 | 9,709 | -50.7% | 12,669 | 21,108 | -40.0% | ||||
102-16, EU6 | 2,813 | 7,803 | -63.9% | 8,879 | 17,645 | -49.7% | ||||
102-16, EU6 | 58.8% | 80.4% | -21.6 p.p. | 70.1% | 83.6% | -13.5 p.p. | ||||
EU2 | 3,892 | 8,906 | -56.3% | 10,284 | 19,343 | -46.8% | ||||
EU2 | 81.4% | 91.7% | -10.4 p.p. | 81.2% | 91.6% | -10.5 p.p. | ||||
EU30 | 96.7% | 97.3% | -0.5 p.p. | 96.8% | 97.2% | -0.4 p.p. | ||||
EU30 | 91.8% | 89.7% | 2.1 p.p. | 91.4% | 91.3% | 0.1 p.p. | ||||
304-2,413-1 | 3,917 | 77,675 | -95.0% | 27,746 | 200,647 | -86.2% |
- Environment and climate
- change
19
20
- Occupatio- nal Heath
- and Safety
- (OH&S)
24
25
26
27 Social
Responsibi-
28 lity7
29
30
Number of visitors at the plants and environmental education
CO2 Emissions (fossil fuel plants) (t/MWh)
CO2 Emissions from Tractebel Energia's generation complex(t/MWh)
Frequency Rate ("Taxa de Frequência" - TF) own employees5
Severity Rate ("Taxa de Gravidade" - TG) own employees6
Frequency Rate ("Taxa de Frequência" - TF) own employees + long term service providers5
Frequency Rate ("Taxa de Frequência" - TF) short term service providers + ongoing constructions5
Non-incentivized investments
Investments through the Infancy and Adolescence Fund (FIA)
Investments through the Culture Incentive Law (Rouanet)
Investments through the Sport Incentive Law
Investments through National Program of Support to Oncology Care (Pronon)
Investments through the National Care Support Program for People with Special Needs (Pronas/PCD)
Investments through the Municipal Fund for the Elderly
- Boost of prosperity on |
local communities |
- Biodiversity |
- Teams and community |
safety |
- Foster good social and |
environmental practices |
between suppliers and |
customers. |
- Generation of |
economic result and
value sharing with society
- Boost of prosperity on local communities
413-1 | 340 | 28,916 | -98.8% | 3,113 | 38,289 | -91.9% | ||||
D305-1,D305-2,D305-3 | 0.920 | 0.942 | -2.3% | 0.935 | 0.944 | -0.9% | ||||
D305-1,D305-2,D305-3 | 0.171 | 0.067 | 154.3% | 0.176 | 0.076 | 131.9% | ||||
403-2 | 0.000 | 0.000 | - | 0.000 | 0.000 | - | ||||
403-2 | 0.000 | 0.000 | - | 0.000 | 0.000 | - | ||||
403-2 | 0.000 | 0.860 | 0.851 | 0.890 | ||||||
403-2 | 0.425 | 2.630 | 0.257 | 1.120 | ||||||
203-2,413-1 | 2,593.8 | 824.6 | 214.6% | 3,090.5 | 1,365.3 | 126.4% | ||||
203-2,413-1 | 0.0 | 149.6 | -100.0% | 596.4 | 1,606.4 | -62.9% | ||||
203-2,413-1 | 318.0 | 3,376.0 | -90.6% | 2,525.4 | 6,642.0 | -62.0% | ||||
203-2,413-1 | 0.0 | 0.0 | - | 184.0 | 340.0 | -45.9% | ||||
203-2,413-1 | 0.0 | 0.0 | - | 0.0 | 0.0 | - | ||||
203-2,413-1 | 0.0 | 0.0 | - | 0.0 | 0.0 | - | ||||
203-2,413-1 | 0.0 | 45.0 | -100.0% | 300.8 | 583.1 | -48.4% |
Notes:
- Additional indices are available at Sustainability Report (www.engie.com.br/en/investors/financial- information).
- Reference: ENGIE Sustainable Management Policy.
- Value as of 06/30/2020.
- GRI: Global Reporting Initiative, Standards version and sector supplement version G4.
- TF = number of occupational accidents for every million hours of exposure to hazards.
- TG = number of days lost due to occupational accidents for every one thousand hours of exposure to hazards.
- Amounts in thousand of reais (R$).
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 |
47
Eduardo Sattamini
Chief Executive and Investor Relations Officer eduardo.sattamini@engie.com
Rafael Bósio
Investor Relations Manager
rafael.bosio@engie.com
(48) 3221 7225
www.engie.com.br/investidores
7/30/2020 | ENGIE BRASIL ENERGIA S.A. RESULTS PRESENTATION 2Q20 | 48 |
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ENGIE Brasil Energia SA published this content on 30 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2020 22:30:11 UTC