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8/12/2019 ENEVA Corporate Presentation ? June 2014
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June, 2014
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Company Overview
1
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One of the largest private sector power generators in Brazil
ENEVA currently operates 2.4GW in coal and gas-fired power plants (2.9 GW until
Integrated energy platform, with privileged access to natural resources
Only private power generator in Brazil with access to onshore gas
Ongoing restructuring initiatives
- Reorganization of the companys structure and continuous TPPs operation stabiliz
- Strengthening of the companys capital structure
Competitive greenfield portfolio
Licensed coal, gas and wind power generation projects
Company Overview
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A Brazilian thermal generator with asset exposure to energy fossil fuels (natural gas
ENEVA at a Glance
2.9GW inflation-protected, long-term PPAs
o 2.4GW in operation
o 517MW under construction
Long-term PPAs guarantee R$2.2 billion in annual inflation-adjusted
capacity payments
PPAs provide hedge against commodity price exposure
Integrated gas E&P assets supply up to 8.4MM 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 - 23MW
ItaqENEVCoal
Natural GasExploratory
blocksContracted production
of 8.4MM 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%
Note: 1) Ownership structure assumes future MPX / E.ON Participaes JV incorporation, as disclosed on the Material Fact Notice as of July 3, 2013
8/12/2019 ENEVA Corporate Presentation ? June 2014
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Strong Operating Asset Base2.4 GW of Thermal Power Operating, Seeded Investments for Renewables and Innovatio
Coal
100% ENEVA
360 MW Installed Capacity
Fixed Revenue: R$316MMp.a.
Coal
50% ENEVA
720 MW Installed Capacity
Fixed Revenue: R$598MMp.a.
Coal
100% ENEVA
365 MW Installed Capacity
Fixed Revenue: R$283MMp.a.
Itaqui
PecmI
PecmII
ParnabaI Natural Gas
70% ENEVA
676 MW Installed Capacity
Fixed Revenue: R$443MMp.a.
Natural Gas
70% ENEVA(3)
176 MW Insta
Fixed Revenue
Natural Gas
70% ENEVA(3)
56 MW Install
Fixed Revenue
Oil (Diesel)
51% ENEVA
23 MW Install
Fixed Revenue
Parnaba
III
Parnaba
IV
Amapari
Tau
Solar
100% ENEVA
1 MW Installed
Revenue2: R$0
Notes: (1) Fixed revenues are indexed to inflation index - IPCA (Database: Nov, 2013); (2) Based on 2013 average,;(3) Post ENEVA Par. Integration; and (4) None regulated revenues.
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Energy Source: Natural Gas
ENEVA Stake: 100%
Installed Capacity: 517MW
Sold Energy: 450MW
Fixed Revenue: R$373.7MMp.a.
Parnaba II (CCGT)
Note: 1) Fixed revenues are indexed to inf lation index IPCA (Database: Nov, 2013)
517 MW under construction
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Outstanding management capabilities
Financial strength and discipline
Sector know-how: E.ON E&P looks at a volume delivery of +170k
barrels/day and +60 licenses in GB and Norway
Tried and tested Parnaba experience, know-how of Parnaba Complex
rooted within PGN
Strong Shareholders
All Parnaba gas-fired power plants are supplied by Parnaba Gs Natural,
owner and operator of 8 onshore exploration blocks
ENEVA has a direct interest in PGN as key supplier of its TPPs
Declaration of commerciality with Development Plan for 3 gas fields:
Gavio Real, Gavio Branco and Gavio Azul
Gas supply agreements secured for 8.4MM m/day
R$250 million capital injection concluded in Feb, 2014
Highlights
Integrated Natural Gas E&PStrong competitive position in gas-fired generation
Parnaba Gs Natural
18.2%9.1% 72.7%
Geographic Foo
Note: 1) Ownership structure after execution of the sale and purchase agreement between OGP and Cambuhy, subject to approval by OGPs creditors, under its judicial recovery procedur
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Operating & Financial Performance of Power
2
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Operating Costs
Operational Performance (Itaqui)
EBITDA (R$MM)
Availability Variable Revenue X Variable Cos
Sources: ONS & Company
Positive EBITDA driven by improved operational performance and reduced operating
COD:Feb 5, 2013
24.2
36.1
4Q13 1Q14
63%
83% 84%87%
75%
1Q13 2Q13 3Q13 4Q13 1Q14
4Q1
Operating Costs1(R$ 000) 125,6
Gross Energy Generated (GWh)
Operating Costs per GrossEnergy Generated (R$/MWh)
19
NOTE: 1) Does not include Depreciation & Amortization.
261232
144159
128149
112
141
107 106 103 102 102 100 104 108
Variable Cost VarAvailability reduction in 1Q14 due to mainly maintenance in coal
mils, fan equipment and emissions control systems
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Operational Performance (Parnaba I)
EBITDA (R$MM)
Availability Variable Revenue X Variable Cost
Sources: ONS & Company
OBS: Dispatch margin captured by Parnab
Growth in operating costs per MWh justified by increase in Henry Hub prices and offseincrease in variable revenues
COD:Feb 1st, 2013 to
Apr 12, 201396%
91%96% 96% 99%
1Q13 2Q13 3Q13 4Q13 1Q14
32.0
44.8
4Q13 1Q14
77 74 65 7580
68 77 78
80 8294 99 100 96 93 99
Variable Cost Var
NOTE: 1) Does not include Depreciation & Amortization.
Operating Costs
4Q1
Operating Costs1(R$ 000) 183,5
Gross Energy Generated (GWh) 1,3
Operating Costs per GrossEnergy Generated (R$/MWh)
13
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Operating Costs
Operational Performance (Pecm I)
Availability
NOTES: 1) Figures consider 100% of Pecm I; 2) Does not include Depreciation & Amortization.
Variable Revenue X Variable Cos
EBITDA negatively impacted by high unavailability costs due to outage of Turbine #1
Sources: ONS & CompanyIn Jan, 14, Turbine #1 was 744 hours unavailable primarily due toshaft maintenance and hydrogen seal replacement, started in
4Q13
COD:Dec 1st, 2012May 10, 201372%
41%
66%
51%
71%
1Q13 2Q13 3Q13 4Q13 1Q14
61.7
48.8
4Q13 1Q14
151127 118
318
154
117139 138
109
111 105 104 100 99 99 97 102 105
Variable Cost Vari
4Q1
Operating Costs2(R$ 000) 265,3
Gross Energy Generated (GWh) 6
Operating Costs per GrossEnergy Generated (R$/MWh)
38
EBITDA1(R$MM)
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Operating Costs
Operational Performance (Parnaba III)
NOTES: 1) Figures consider 100% of Parnaba III; 2) Does not include Depreciation & Amortization.
Availability Variable Revenue X Variable Cost
Sources: ONS & CompanyOBS: Dispatch margin captured by Parnab
EBITDA margins negatively impacted by energy acquisition costs as full capacity was only in February 2014
COD:Oct 22, 2013
N.A. N.A. N.A.
100%
96%
1Q13 2Q13 3Q13 4Q13 1Q14
1.1
14.4
4Q13 1Q14
75 71 69
161 161 161
Jan-13...Out-13 Nov-13 Dec-13 Jan-1
Variable Cost Var
4Q1
Operating Costs2(R$ 000) 124,
Gross Energy Generated (GWh)
Operating Costs per GrossEnergy Generated (R$/MWh)
EBITDA1(R$MM)
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Ongoing Restructuring Initiatives
3
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R$1.5 billion Capitalization and Debt Measures
Capitalization and Debt Maturity Profile Extension
Private capital increase in two steps, amounting up
to R$1.5 billion:
o Phase I
Amount: up to R$316.5 million
Price: R$1.27/share (closing price May 9, 2014)
E.ON commitment: R$120 million
o Phase II
Amount: R$1,500 million minus funds raised in Phase I
E.ON commitment: up to R$450 million (potentially
partially by injecting Pecm II)
Sale of Pecm II
o ENEVA will dispose of 50% or 100% of Pecm II in a
structured bidding process
o In parallel to Phase I of the Capital Increase
o E.ON to backstop sale of 50% of Pecm II at a
maximum price of R$400 million
Capital Increase and Sale of Pecm II
HoldCo financing banks to provid
bridge of R$100 million in para
Capital Increase
Push-down of R$600-700 m
operating subsidiaries/projects
5-year maturity extension of rem
with amortization starting only in
Financing banks to issue LT financo Banks to provide additional Pe
amounting to R$150 million in par
of the sales process of Pecm II
ENEVA committed to reduce Hold
sustainable level of R$80 million/
Debt Measures & Cost Reduction
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Consolidated Debt (end of 1Q14)Significant reduction of short-term indebtedness secured by agreement with banks si
Total GrossDebt
R$6,099MM
Consolidated Gross Debt Profile (R$MM)
Gross Short-Term DebtR$2,478MM
Consolidated Short-Term Debt (R$MM)
2,47841%
3,62159%
Short Term Long Term
1,60665%
87235%
Hold Co. Project Related
March 31, 2014 After Financial Restructuri
Consolidated Gross Debt P
Consolidated Short-Term
~15%
~85%
Short Term Long T
100%
Hold Co. Project
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Financial Restructuring
Additional funding secured
o Minimum R$570 million of fresh cash guaranteed by E.ON commitment
o Significant upside of additional take up in the capital increases by minority shareholders
o Additional R$150 million in new financing guaranteed on project level by HoldCo financing banks
Adequate capital structure to allow ENEVA to fulfill working capital and CAPEX nee
conclusion of:
o Ongoing plant stabilization efforts;
o Implementation of cost reduction initiatives; and
o Pending regulatory discussions
ENEVA enabled to pursue new business development/growth opportunities
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Ongoing Regulatory Discussions
Pecm I and Itaqui filed in Jan, 2014 a lawsuit against
Aneel questioning hourly-based unavailability charges;
On Jan 24, 2014, a Federal Court granted an injunction
halting unavailability charges as measured, establishing
the methodology provided for in PPAs (60-month rolling
average);
The lawsuit also claims the reimbursement of amounts
paid since PPAsbeginning;
Request for revision for ADOMP methodology is being
discussed with Aneel
Unavailability Charges
Parnaba II sold 450MWavg in the 2
PPA started in March, 2013;
Construction of power plant and gas
are delayed;
On May 20, Aneel responded to
suspending the payment of penalties
In this timeframe, ENEVA is disc
balanced solution to address the mat
Parnaba II
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Brazilian Power Market and Greenfield Por
4
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Southeast Reservo
~70% of total storage ca
Source: ANEEL
Brazils Generation Capacity: 136 GW
Breakdown by source April, 2014
Brazil is highly dependent on hydro generation with increasingly faster depletion of re
Brazilian Energy Matrix
63.5%10.5%
2.5%
1.5%
2.2%
19.8%
Hydro Gas Coal Nuclear Wind Others
Dry Sea
67%
76%
38%
40%
35%36%
39%
20%
30%
40%
50%
60%
70%
80%
90%
Jan Feb Mar Apr May Jun Jul
Average 2007-2011 2012
l l b l
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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
65
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
Reservoi
rsAutonomy(Months)
2013
Current reservoirautonomy ~6 months
ENEVA G fi ld P tf li
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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
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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.
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Thank you.www.eneva.com.br