Jaguara and Miranda HPPs: operational, commercial and financial characteristics
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Summary 1. ENGIE worldwide 2. ENGIE Brasil Energia 3. Auction 01/2017 4. Jaguara and Miranda HPPs 5. Annex
1. ENGIE worldwide
ENGIE is the largest private energy producer, with a diversified portfolio... ENGIE S.A. is the largest independent energy producer of the globe 1000 recharge stations Presence in EBITDA (2016): for electric cars 70 countries € 10.7 billion 112.7 GW W of installed Market Cap: Net Worth (2016): € 35.7 billion¹ € 45.4 billion capacity Management of more than 1.5 million Share price (ENGI): Net Debt/EBITDA € 14.66¹ (2016): 2.3x illumination points Responsible for Rating Global security systems in Revenue (2016): more than 60 cities € 66.6 billion Scale A- Note: 5 ¹ Based on Paris quotation as of 16/01/2018. Source: ENGIE website
...across the globe 112.7 GW ACTIVITIES IN 70 € 66.6 billion 153,09 ,090 EMPLOYEES OF INSTALLED POWER OF REVENUES IN 2016 COUNTRIES ACROSS THE WORLD PRODUCTION CAPACITY Building on its wide expertise and strong international positions in the fields of electricity, natural gas and energy services, ENGIE focuses on three growth engines: LOW CO 2 POWER GLOBAL NETWORKS CUSTOMERS SOLUTIONS GENERATION Generation of electricity mainly Development and management Customer solutions and from low CO 2 sources of global infrastructure and services for residentials, (renewables, thermal networks professionals, businesses, contracted) (gas-electricity) cities and territories *December 31, 2016 numbers 6 **Installed capacity on 100% Source: ENGIE website
2. ENGIE Brasil Energia
In Brazil, ENGIE holds a robust portfolio... ENGIE Brasil Energia is the largest private energy producer in the country. 87% % of the installed capacity in the country is Market Cap: Rating ( BR local) clean and/or renewable R$ 23 billion¹ AAA Elected by anuário Share price (EGIE3): 31 plants R$ 35.41¹ Época Negócios 360° as best st comp mpany y of f the the countr try f y for r corpo rporate rate gove verna rnance 7,868 MW MW installed Revenues (2016): capacity R$ 6.4 billion Shareh reholder r ENGIE Group is #1 Str tructure ture: Assets (2016): private generator of R$ 6.6 billion ENGIE Brasil Participações LTDA – 68.7% energy, representing 7.2% 2 of the national Free Float – 21.3% Banco Clássico S.A – 10.0% capacity ¹ Based on closing price of 01/16/2018 8 2 Considering ENGIE group Source: ENGIE
…and continues to grow in the energy sector… 31 plants Own installed capacity of 7,868 MW from 31 plants 1 operated by the Company Note: 1 The transfer of the 40% stake of ENGIE Key Brasil Part. in Jirau HPP to EBE should be examined shortly. Hydro 7,868 Thermal Complementary Proprietary Operating Installed Capacity Expansion 6,908 6,909 6,965 7,027 7,044 7,010 6,431 6,472 6,094 6,188 6% 5,918 5,890 13% 5,036 81% 4,846 3,719 3,719 Hydro Thermal Complementary 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 9
…thus guaranteeing its first position under the private energy producers nationally. In Inst stall lled Ca Capacit ity y – Brazil¹ , ² In Inst stall lled Ca Capacit ity ³ - Private Sector (GW) AES CPFL Copel 2.0% 1.6% 3.7% Cemig 4.4% 10.4 Petrobras 4.9% Other 1.0 8.2 34.3% Itaipu 0.3 5.2% EBE capacity excluding other CTG 4.0 9.4 group companies 3.7 3.2 6.1% 2.9 7.9 2.7 currently at ~7.9 1.2 1.5 1.9 0.5 1.7 GW 2.8 2.4 2.2 1.9 Eneva 6 SPIC 6 ENGIE 4,6 CTG CPFL Neoenergia AES EDP Enel 1 st Private Tietê Eletrobras ENGIE 4,6 30.6% – 7.2% Current Installed Capacity Installed Capacity Expansion 5 Source: Aneel, websites of the respective companies and internal studies Notes: ¹ The sum is effected by rounding of the subcategories. ² Value corresponds to the Sistema Interligado Nacional (SIN) ³ Including only the national proportion of Itaipu. 4 Considering the consolidated capacity of group companies. 5 Based on ANEEL, ONS and internal studies. 6 Already including the result of the auctions in 2017 and the acquisition of the Umburanas complex. 10
Diversified portfolio, combined with flexibility and safety… Contracted energy Co y per t type ype of c cli lient – Posi sition ion as s of 09/3 /30/2 /2017, , yet, , wit ithout Pioneering in attendance of clients in co cont ntribu bution ons s of of HPP Jagu guar ara a an and d Miran anda da the free market... • Flexibility (prices, Maximizing tenors and 50% 49% portfolio efficiency 49% conditions) 56% 56% • Contracts of Structuring of 3% opportunity 7% 7% products (buy/sell) 10% 10% • Largest market 47% Higher 44% 44% 34% 34% • Regulated and free predictability of market PPAs cash flows in the (contracted until long-term 2024+) 2015 2016 2017E 2018E 2019E DistCo Trading Companies Free Customers …to minimize risks and maximize efficiency of the client’s portfolio. The contracted share of the EBE portfolio will increase with the inclusion of the newly acquired assets Source: ENGIE DF 11
...resulting in a solid financial performance and value creation for shareholders ¹In BRL BRL mil millions Net revenue¹ EBITDA¹ Net Profit¹ 1,548 6,472 6,512 6,442 3,175 3,114 1,501 2,895 4,942 2,451 1,383 1,299 2014 2015 2016 9M17 2014 2015 2016 9M17 2014 2015 2016 9M17 Gross Debt¹ Net Debt¹ Net Debt/EBITDA (times) 2,237 3,988 0.8 3,758 3,239 3,088 0.6 1,464 1,214 1,093 0.4 0.3 2014 2015 2016 9M17 2014 2015 2016 9M17 2014 2015 2016 9M17 Note: 12 1 All numbers based on Q3 results published by ENGIE Brasil Energia S.A. and audited by Deloitte Touche Tohmatsu.
3. Auction 01/2017
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