Corporate Presentation Dec
Transcript of Corporate Presentation Dec
-
7/29/2019 Corporate Presentation Dec
1/31
December, 2013
-
7/29/2019 Corporate Presentation Dec
2/31
Investment Thesis
1
-
7/29/2019 Corporate Presentation Dec
3/31
Investment Thesis
One of the largest private sector power generators in Brazil
ENEVA currently operates 2.3 GW (2.9 GW in 2014) in coal and gas-fired power pla
Integrated energy platform, with privileged access to natural resources
Only private power generator in Brazil with access to onshore gas
Short-term value triggers
- Reorganization of the companys structure and tackling of short-term debt challen
- Stronger role of E.ON, bringing technical expertise and cost discipline to ENEVA
Competitive greenfield portfolio
Licensed coal, gas and wind power generation projects
-
7/29/2019 Corporate Presentation Dec
4/31
A Brazilian thermal generator with asset exposure to energy fossil fuels (natural gas
ENEVA at a Glance
2.9 GW with inflation-protected, long-term PPAs
o 2.3 GW in operation
o 580 MW under construction
Long-term PPAs guarantee R$1.7 billion in annual inflation-adjusted
capacity payments
PPAs provide hedge against commodity price exposure
Integrated gas E&P assets supply up to 8.4 M m/day to ENEVAspower
plants
Competitive portfolio of licensed greenfield wind, coal and gas fired
capacity
Company Description
ENEVA ownership structure
Geographic Footp
Amapari EnergiaENEVA 51% / Eletronorte 49%
Diesel - 23 MW
ItaqENEVCoal
Natural GasExploratory
blocksContracted production
of 8.4 M m3/day
Free Float (38.2%)
37.9%23.9%
Other
MPX / E.ONPartipaes
Joint Venture
50%
50%
BNDES
10.3%
EikeBatista
Controlling Block
27.9%
-
7/29/2019 Corporate Presentation Dec
5/31
Company Overview
2
-
7/29/2019 Corporate Presentation Dec
6/31
2.9 GW with inflation-protected long-term PPAs developed since 2007
Company History
2007 2008 2009 ...
IPO raising US$1.1 bn
Contracts 1,080 MW inthe A-5 Auction
Acquisition of interest in 7onshore exploratoryblocks in the ParnabaBasin
Operational capacity rethe beginning of commItaqui, Parnaba I, PecIII TPPs
E.ON increased its stakof R$1.4 bn and joins c
Company name change
Contracts 365 MWin the A-5 Auction
Partnership with E.ON,including a R$1.0 bninvestment and thecreation of a JV
Acquisition ofgreenfield windprojects (Ventos)
Beginning ofcommercial operationsat Pecm I TPP ENEVAs first largescale power plant
20132012
-
7/29/2019 Corporate Presentation Dec
7/31
2.3 GW of coal and gas-fired power plants in operation
Operational Assets (1)
Pecm I
Energy Source: Coal
ENEVA Stake: 50%
Installed Capacity: 720 MW
Sold Energy: 615 MW
Fixed Revenue: R$600.3 Mp.a.
Start-up: May, 13
Energy Source: Coal
ENEVA Stake: 100%
Installed Capacity: 360 MW
Sold Energy: 315 MW
Fixed Revenue: R$317.3 Mp.a.
Start-up: Feb, 13
Itaqui
Note: 1) Fixed revenues are indexed to inf lation index IPCA (Database: Nov, 2013)
Energy
ENEVA
Instal
Sold E
Fixed
Start-
-
7/29/2019 Corporate Presentation Dec
8/31
2.3 GW of coal and gas-fired power plants in operation
Operational Assets (2)
Parnaba I (OCGT)
Energy Source: Natural Gas
ENEVA Stake: 70%
Installed Capacity: 676 MW
Sold Energy: 450 MW
Fixed Revenue: R$445.9 Mp.a.
Start-up: Apr, 13
Note: 1) Fixed revenues are indexed to inf lation index IPCA (Database: Nov, 2013)
Energy Source: Natural Gas
ENEVA Stake: 70%
Installed Capacity: 176 MW
Sold Energy: 98 MW
Fixed Revenue: R$99.0 Mp.a.
Start-up: Oct, 13
Parnaba III (OCGT)
-
7/29/2019 Corporate Presentation Dec
9/31
Additional 580 MW under construction
Power Plants with COD in the next months
Note: 1) Fixed revenues are indexed to inflation index IPCA (Database: Nov, 2013)
Energy Source: Natural Gas
ENEVA Stake: 70%
Installed Capacity: 56 MW
Sold Energy: 46 MW (Free
Market)
Fixed Revenue: R$54.0 Mp.a.
Start-up: 4Q13
Parnaba IV
Energy Source: Natural Gas
ENEVA Stake: 100%
Installed Capacity: 517 MW
Sold Energy: 450 MW
Fixed Revenue: R$373.7 Mp.a.
Start-up: 1H14
Parnaba II (CCGT)
-
7/29/2019 Corporate Presentation Dec
10/31
All Parnaba gas-fired power plants are supplied by Parnaba Gs Natural
(Parnaba GN), owner and operator of 8 onshore exploration blocks
ENEVA has an interest of 33.3% in Parnaba Gs Natural
Declaration of commerciality with Development Plan for 3 gas fields: Gavio
Real, Gavio Branco and Gavio Azul
Gas supply agreements secured for 8.4 MM m/day
Highlights
Integrated Natural Gas E&P
Parnaba GN Ownership Structure
33.3%
Parnaba Gs Natural
66.6%
Blocks 1-7 Block 8
50%30%50%70%
Imetame, DELP,Orteng
PN-T-48 PN-T-49
PN-T-67
PN-T-84
PN-T-85
Geographic Fo
Strong competitive position in gas-fired generation
-
7/29/2019 Corporate Presentation Dec
11/31
35 wells drilled, of which 24 have gas indications
o 17 wells with discoveries
o 7 wells with gas indications
Declaration of commerciality with Development Plan for 3 gas fields:
o Gavio Real
o Gavio Azul
o Gavio Branco
Gavio Real field is producing since Jan, 2013:
o 13 producing wells out of 3 clusters
o Daily Production: 5.7MM m/day of natural gas
o Connected to a 6.6MM m/day GTU Gas Treatment Unit (as of
today)
o All gas dedicated to ENEVAsParnaba TPPs
Exploration Campaign
Integrated Natural Gas E&P
2014 / 2015:
o Connection of 3 additional production
8.4MMm/day
o Gavio Branco production developmen
assessment plan for new discoveries (Ma
Upcoming Events
Current capacity allows connection
generating unit of Parnaba II
Power PlantParnaba I and
Parnaba IIIParnaba IV
Parnaba II
Wells 13 16
Production Ramp-up (MM m/day)
5,76,6
Current 4Q13 (L
-
7/29/2019 Corporate Presentation Dec
12/31
Cambuhy/E.ON Investment in Parnaba Gs NaturalSecuring ENEVAs power plants gas supply
On October 30, ENEVA entered into a subscription agreement with Cambuhy Investimentos, E.ON and OGX, pursuant
o Parnaba Gs Naturalsshareholders envisaged a capital increase in the total amount of R$250MM
o Cambuhy and E.ON have agreed to subscribe for R$200MM and for R$50MM, respectively
Capital Increase will guarantee funds to cover Parnaba Gs Natural capex needs in 2014
E.ON E&P team will provide technical and operational expertise
Cambuhy also entered into share purchase agreements with the purpose to either:
o OGX: Buy for R$200MM the remaining stake of OGX; or
o ENEVA: Buy for R$200MM the eventually foreclosed shares of OGX by Parnaba Gs Naturalslending banks
All steps of the transaction are subject to approval by CADE, ANP and OGXsbankruptcy protection judge
18.2%
Parnaba Gs Natural
36.3%9.1% 36.4%
Controlling Block (63.7%)
After the capital increase After execution of the sale and purch
18.2%
Parnaba Gs Natural
9.1% 7
Controlling Block (100%)
-
7/29/2019 Corporate Presentation Dec
13/31
Short-Term Value Triggers
3
-
7/29/2019 Corporate Presentation Dec
14/31
Operational Performance (Itaqui)
-95,3
-31,3
-5,9
1Q13 2Q13 3Q13
Itaqui EBITDA (R$MM)
38%
65% 71%
1Q13 2Q13 3Q13
Itaqui Availability
Operations are gradually stabilizing with increased availability and reduced operating
EBITDA amounted -R$5.9MM, impacte
mostly attributable to:
o Unavailability charges (R$21.7MM)
o High fuel costs: Coal (R$55.6MM), dies
(R$3.9MM)
1Q13 2Q
Fuel Costs per Gross EnergyGenerated (R$/MWh)
166.5 124
-
7/29/2019 Corporate Presentation Dec
15/31
Operational Performance (Parnaba I)
-5,9
28,2
58,8
1Q13 2Q13 3Q13
Parnaba I EBITDA (R$MM)
96% 91% 96%
1Q13 2Q13 3Q13
Parnaba I Availability
Full capacity and stable operations reflect on strong EBITDA
EBITDA amounted to R$58.8MM (E
reflecting full operations of all four gene
-
7/29/2019 Corporate Presentation Dec
16/31
Significant improvement throughout 2013
-143,4
-63,8
40,1
1Q13 2Q13 3Q13
Operational Performance (Pecm I)
Pecm I EBITDA (R$MM)
Pecm I Availability
NOTE: 1) Figures consider 100% of Pecm I
1st quarter with positive EBITDA since
operations
Operating costs impacted by:
o Unavailability charges (R$27MM)
o High fuel costs: Coal (R$86.4MM), dies
(R$2.2MM)
1Q13 2Q
Fuel Costs per Gross EnergyGenerated (R$/MWh)
119.3 106
71%
40%
64%
1Q13 2Q13 3Q13
-
7/29/2019 Corporate Presentation Dec
17/31
Operational Performance of New Plants
Pecm II (MWavg) Parnaba III (MWavg)
COD granted on October 22COD granted on October 18
Pecm II
o Synchronized to the system on Oct 15 and was granted authorization for commercial operation on Oct 18
o Stable operations since then, resulting from actions carried out within the recovery plan designed for the coal plan
o Availability to mid-November >90%
Parnaba III
o Reached full capacity on the same day it synchronized to the system (Oct 14) and has been stable since then
364 365
294
Oct, 19
Oct, 25
Oct, 26
Nov, 1
Nov, 2
Nov, 9
166 164
Oct, 19
Oct, 25
Oct, 26
Nov, 1
-
7/29/2019 Corporate Presentation Dec
18/31
5,584
5,195
150
357
5,733
5,551
2Q13 3Q13
Net Debt Cash and Cash Equivalents
Refinancing of Holding DebtOngoing efforts for debt maturity lengthening
Consolidated Debt (R$MM)
Total Gross DebtR$5,551MM
Consolidated Gross Debt Profile (R$MM)
After positive first round discussions w
past months, now ENEVA initialized th
of HoldCo debt
2,52846%3,023
54%
Short Term Long Term
-7.0%(net debt)
November
S M T W T F S S
1 2 1
3 4 5 6 7 8 9 8
10 11 12 13 14 15 16 15
17 18 19 20 21 22 23 22
24 25 26 27 28 29 30 29
Banks approval process+ Documentation
Dm
ENEVAs Bankers Day
1,44257%
1,08643%
Hold Co. Project Related
-
7/29/2019 Corporate Presentation Dec
19/31
Regulatory IssuesMain ongoing discussions with Aneel
Ongoing
Solved
Variable Cost ICB & ICB ICB Online
Change in pass-through criteria for power purchased to fulfill contractual obligations. The reimbuthe current/online cost to the system (ICB Online).
Postponement of PPAs start datesInitial Date Modified Date
Itaqui Jan, 2012 Dec 21, 2012
Pecm I Jan, 2012 Jul 23, 2012
Pecm II Jan, 2012 Jun 1, 2013
Parnaba I Jan, 2013 Apr 1, 2013
ADOMP
ADOMP Criteria: Plant unavailability is measured on an hourly basis
ENEVA is challenging the ADOMP criteria on the basis that it goes against PPA conditions
Pecm II fixed revenue and Pecm II ICB reimbursement
Fixed revenue reimbursement request for Pecm II from the moment it was ready to operate
granted COD. Additionally ICB reimbursement request is still pending (R$15MM)
-
7/29/2019 Corporate Presentation Dec
20/31
Cost Reduction Program
ENEVA is currently working on a Medium Term Plan 2014-2016, to be approved by
Directors in the end of October, aimed at achieving significant cost reduction at holdin
level through:
Leaner organizational structure
Headcount reduction
Decrease in third-party services
Reduction of fixed costs at project level
-
7/29/2019 Corporate Presentation Dec
21/31
Brazilian Power Market and Greenfield Por
4
B ili E M t i
-
7/29/2019 Corporate Presentation Dec
22/31
Southeast Reservo
~70% of total storage ca
Source: ANEEL
Brazils Generation Capacity: 131 GW
Breakdown by source 2012
68.7%
9.9%
2.2%
1.6%1.6%
16.0%
Hydro Gas Coal Nuclear Wind Others
Brazil is highly dependent on hydro generation with increasingly faster depletion of re
Brazilian Energy Matrix
67%
76%
38%
46%
54%
62% 63% 64% 61%
5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Jan Feb Mar Apr May Jun Jul A
Average 2007-2011 20
Dry Seas
El t i S t R li bilit
-
7/29/2019 Corporate Presentation Dec
23/31
Source: ONS
Autonomy = Storage Capacity / (Load Thermal Generation)
Economic growth will boost
leading to a supply defi
Water storage capacity has stagnated,
leading to decreased system autonomy
65.2
64.7
60
65
70
75
80
85
90
2013 2014 2015 2016 201
GWavg
2016-on: New generatio~8 GWavg required un
Electric System ReliabilityNew thermal plants are necessary to guarantee reliable power supply
0
5
10
15
20
25
30
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
ReservoirsAutonomy(Months)
2013
Current reservoirautonomy ~6 months
ENEVA G fi ld P tf li
-
7/29/2019 Corporate Presentation Dec
24/31
ParnabaComplex
Integrated to natural gas resources
Located in a tax-advantaged region
Ventos WindComplex
Located in one Brazilsbest wind resource areas
Attractive load factor
Just 30km from grid connection
Land ownership assured
Au(Coal + Gas)
Located at a port with a regasification terminal buildlicense
150km from Campos Basin natural gas accumulations
Environmental licensed to both coal and gas operations
Sul & Seival Integrated to the Seival Mine (proven reserves: 152 M ton)
Low operation costs
Power
supply-demand
unbalanced
Hydropower
concentrated
matrix
Spot prices at
historical highs
Demand for base-
load generation2 3 4 51
Sul727 MW
ParnabaComplex
2,166 MW
Se600
Solar 1 MW
ENEVAs Greenfield PortfolioAttractive licensed greenfield projects in various development stages
-
7/29/2019 Corporate Presentation Dec
25/31
Appendix | Images
5
Pecm I & II
-
7/29/2019 Corporate Presentation Dec
26/31
Pecm I & II
Itaqui
-
7/29/2019 Corporate Presentation Dec
27/31
Itaqui
Parnaba Complex
-
7/29/2019 Corporate Presentation Dec
28/31
Parnaba Complex
Natural Gas: Parnaba E&P
-
7/29/2019 Corporate Presentation Dec
29/31
Natural Gas: Parnaba E&P
-
7/29/2019 Corporate Presentation Dec
30/31
Disclaimer
The material that follows is a presentation of general background information about ENEVA S.A. and its subsidiaries (collectively, ENE
the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty,
concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of this information.
This presentation may contain certain forward-looking statements and information relating to ENEVA that reflect the current view
Company and its management with respect to its performance, business and future events. Forward looking statements include, with
that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like may, p
expect, envisages, will likely result, or any other words or phrases of similar meaning. Such statements are subject to a numb
assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, object
and intentions expressed in this presentation. In no event, neither the Company, any of its affiliates, directors, officers, agents o
placement agents shall be liable before any third party (including investors) for any investment or business decision made or ac
information and statements contained in this presentation or for any consequential, special or similar damages.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities.
Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.
Recipients of this presentation are not to construe the contents of this summary as legal, tax or investment advice and recipients shou
in this regard.
The market and competitive position data, including market forecasts, used throughout this presentation were obtained from intern
publicly available information and industry publications. Although we have no reason to believe that any of this information or these
material respect, we have not independently verified the competitive position, market share, market size, market growth or other dat
by industry or other publications. ENEVA, the placement agents and the underwriters do not make any representation as to the accurac
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or i
written consent.
-
7/29/2019 Corporate Presentation Dec
31/31
Thank you.www.eneva.com.br