Growing with Return - Mziq
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Growing with Return
1 Retrospective
and Deliveries
2017
The New Neoenergia is Born
Fast merger of Elektro. Process reviews and immediate value creation.
2018
• R$ 300 MN in Opex EFFICIENCY;
• SYNERGIES! Reduction of 600 job posts;
• Insourcing with PRODUCTIVITY gains;
• OUTPERFORMANCE in Opex, regulatory
DEC and FEC;
• The way to the IPO is cleared.
2019
IPO Neoenergia
4 Growth Avenues.
Double-digit Return Projects!
1 – Based on distributors’ growth. 3 – Delivery of Chafariz Wind Complex.
Opportunity search in the free market.
+ 1.2 million new clients at each tariff cycle;
Robust pipeline to be developed.
Full recording of investments in RAB.
2 – Transmission growth. 4 – Cost discipline. Opex (R$ MN)
10 lots purchased in auctions:
+1.9%
APR’17, DEC’17 and DEC’18.
3,162 3,087 3,180 3,225
Likely participation in future auctions. 2,513
2017 2018 2019 2020 9M21
Business Environment
2019 After 2020
• Favorable Environment: economy recovery • Covid-19 Pandemic;
after presidential impeachment;
• Institutional Crisis: delayed reforms and confrontation
• New government with liberal pro-business speech; between Executive and Judiciary;
• Welfare Reform approved by Congress; • Fast macroeconomic and fiscal deterioration, commodities
pressing inflation;
• Expectation for new Reforms;
• Worse hydrological crisis in 91 years;
• Interest rate reaching the historical minimum;
• Higher costs for energy purchase pressuring tariffs.
• Controlled inflation and tax issues addressed.
Despite the worsening of the business environment,
Neoenergia delivered beyond promised!
Distribution Deliveries
Sustainable Growth in Discos
Evolution of Injected Energy (TWh) Customer-base Growth
94% 15.69
7% 15.14 15.40
from 2020 14.41 14.63 14.87
63 67 63
2016 2020 10M 2021
2016 2017 2018 2019 2020 2021
* Brazil GDP growth of 5% 2016 x 2021
Every 5 years, 1.2 MN
15.7 MM new clients are
Clients incorporated into our
Discos!
Reduction in Deliquency
IPR PANDEMIC
AFDA Result / GOI 2.54%
1.94% Adjustments to provision criteria
1.85% 1.88%
1.75%
1.62%
Campaign Discounts Sale
1.21% 1.40% 1.34%
1.13% 1.01%
0.90%
0.89%
Negotiation special matrix
0.47% 0.18% 0.13% 0.17%
Web Negotiation Portal
-2.05%
2018 2019 2020 3T21
3Q21
Neoenergia shows a trend to reduce provision
index in all Discos.
Trend to reduce Losses
Total Loss Index
12 M (%)
18.16%
17.34% 17.35% Complex Markets Shielding
16.74%
14.77%
15.29% 15.34%
14.82% Regularization of Illegal Connections
14.12%
13.06%
9.99%
9.98% 9.83%
9.58%
Data Mining
8.37%
7.79% 7.19%
6.16%
Energy Balance
2018 2019 2020 3T21
3Q21
Neoenergia shows trend to reduce losses in all
Discos.
Investments in quality and services to new customers
19.15 DEC TOTAL
DEC LIMIT 3,830 4,021
17.20 3,683
15.89 3,491
14.66
13.08
R$ 14bi Since 2018
12.23 26% in asset renewals 941 983 894 774
11.02 11.23
10.01
2018 2019 2020 2021E
2015 2016 2017 2018 2019 2020 9M21 Renovação de ativos R$M Total R$ MM
9.93 FEC TOTAL -6 hours (-37%) 1,365
1,137 1,095 1,098
FEC LIMIT In interruption time
since 2017
8.06
7.70 7.46
7.15
623 631 541 603
5.80
5.46
5.15 5.13
2018 2019 2020 2021E
Cliente
Client (Mil)
(thousand) CAPEX
CAPEXR$M
(R$MN)
-28% Solid and growing investment in quality
interruptions since 2017 improvement and Distribution business expansion
2015 2016 2017 2018 2019 2020 9M21
Transmission Deliveries
Early delivery and savings compared to deadlines and costs planned by Aneel…
April 2017 | RAP R$117 MN • Average early delivery: 15 months
Full delivery of 4 lots • Capex Saving: 20%
Santa Luzia Jalapão
Dec’2017 Auction: Lot 06 Dec’2017 Auction: Lot 04
RAP: R$63 MN RAP: R$138 MN
30% of Capex saving Start of Operation: until Dec’21
Start of Operation: Nov’21 End of Concession: Mar’48
16 MONTHS BEFORE ANEEL DEADLINE 15 MONTHS BEFORE ANEEL DEADLINE
...and we carry on progressing in the Dec’18, Dec’19 and Dec’20 projects.Renewables Deliveries 73% of the energy of the 3 projects destined to ACL.
Sales ensuring expected return rates.
Projects advancing, ahead of Business Plan.
Chafariz Oitis Luzia
Early start of operation 305 MW; 80% of foundations built;
Synergies with Chafariz;
Conclusion: 471 MW | DEC’21. Conclusion: 567 MW | 1H22.
Conclusion: 149MWdc | 2H22;
Spot Price Sales in 2021!
Magnitudes: Main equipment contracted since OCT’21;
Magnitudes:
Path: 114Km (João Pessoa - Recife 120KM)
Path: 117Km (João Pessoa – Recife 120KM) 100% of energy sold until 2026!
Medium Voltage Network: 274KM (Natal - Recife
Medium Voltage Network: 275KM (Natal - Recife 300KM)
300KM)
65,000m3 of Concrete (Maracanã 80,000 m3)
70,000m3 of Concrete (Maracanã 80,000 m 3)Operation & Maintenance
Operational Excellence
Own Training
IA applied in Center
operation
Insourcing of high Integration
added value of Operation
activities
Digitalization Technology
of processes applied to
Forecasts
Third consecutive year with the best availability
People:
of internal benchmarking .
High investment in education and retention
Third consecutive year of largest reduction of of professionals, with a focus on local labor
and diversity.
operating costs of internal benchmarking.HYDROELECTRIC WIND FARMS
7 plants in operation 28 farms in operation: 820 MW
3 GW
16 farms under construction: 733 MW
SOLAR PARKS
2 parks under construction: 149 MWdc
EFFICIENCY AND AVAILABILITY
96.04% TOTAL 1.7 GW
90.93%
INTEGRATION IN OPERATION AND EXPERTISE
Hydroelectric
Wind
Wind Construction
RAD
ONS 2020
- RAD Neoenergia
Solar Construction
OBSERVING OPPORTUNITIES FOR OPTIMIZATION OF ALL RENEWABLE PORTFOLIOBRRs of Discos
Growth of 84% BRR in 5 years ... with full recognition of
R$13.9 Bi in 2016 | R$25.6 Bi in 2021... Investments.
3rd > 4th Ctycle 4th > 5th Cycle 4th > 5th Cycle 3rd > 4th Cycle 4th Cycle
97.1% 99.3% 101.6% 100.0% 97.5% 98.4% 100.4%
73.0% 78.0%
Base
Date :
Apr’13 Apr’18 Apr’17 Apr’21 Aug’15 Aug’19 Apr’13 Apr’18 Oct’21 Sep’21
Net BRR
11.2 billion 5.9 billion 5.0 billion 2.4 billion 1.1 billionNeoenergia overcoming challenges
Ongoing search for processes and systems improvement to ensure full recording of investments, by:
Dedicated Structure Opex vs Capex Project vs Execution Own Personnel Reports/ Periodic Tests
• Creation of a • Definition of separate • Developments in • Initial: control of times • Periodic business
specialized and codes and activities; systems to ensure loaded in SAP; reports (feedback and
specific team to take • Incorporating them synchronism • Now: Mobile app for adjustments);
care of BRRs, into SAP and creating between operation electricians with SAP • periodic testing of
regardless of the controls. and accounting. interface. technical adherence vs.
business. regulatory.
National Award for Recognition by Aneel
Innovation in Assets and the Market
ManagementCreation and optimization of the Transactional Processes center
< 2016 2016/2017 2017-2021 > 2021
240 HCs 64 HCs 79 HCs < 70 HCs
100 thousand FNs >300 thousand >400 thousand >500 thousand
year paid FNs year paid FNs year paid FNs year paid
R$ 6 bi R$ 18 bi R$ 26 bi R$ 34 bi
New Model Elektro and Brasilia
Previous Model Future Model
Implementation integration + Efficiencies
• Decentralized processes; • Geographic centralization of • Robotization
processes;
• Excess of dedicated HCs; • Massive data analysis
• HCs Optimization;
• Control Deficiency; • Business intelligence
• Authomatization (Portal NF).
• Manual work
• Reliability and control of data. • Greater EfficiencyDiscipline and Caution in Financial Management
Strategy focused on strengthening financial sturdiness and leveraging generation of value to shareholders
Leverage management
Liability Management
and debt profile
4.66 4.64
4.03 4.56 4.60 Change to debt profile and reduction of
3.53
leverage, despite intensive growth
Since 2018 Liability strategy of capital that consumes part
7.0% 6.6%
Management operations 6.4% 4.7% 4.9% 5.7% of the cash generation.
have been carried out, 2018 2019 2020 1Q21 2Q21 3Q21
extending the average term Average Debt Cost 12M Average Debt Term (years) 3.69 3.49 3. 00 2.85 2.86
of the debt from 3.53 years Debt depletion (principal + interest)
to 4.60 years, and reducing R$ Million
16,276 27,329
13,510 15,865 17,134 18,527
4,106
the average cost! 9,379
6,056 6,731
5,126
2,228
1,209 1,527
1,910 1,156 12,170
475 7,151
4,146 5,203 3,970
2017 2018 2019 2020 3Q21
2021 2022 2023 2024 2025 2026
Forward Net Debt Net Debt / EBITDADiscipline and Caution in Financial Management
Focus on Management and Innovation
Risk Management appropriate to the
Innovation, diversification ESG theme Debt by creditor (R$ MN)
business
Composition Exposion Exposion Exposion
• Liquidity indexes: minimum coverage of 12 • Diversification of creditors and by creditor with Swap
instruments with access to several
months of financial needs;
International Development Banks;
• No exposure to exchange variations.
• Disclosure of Green Finance Framework
Foreing currency debts 100% hedged all
with contribution from several
flow long; stakeholders to guide sustainable
investments
• Natural hedge between debt indexation and
revenue • R$ 3.1 bi in 5 operations with green seal
from 2018 to Oct’21.
• Low risk investments policy;
• First green emission certified to energy
• Rigorous assessment of counterparts. disco carried out at Elektro, in 2021
OthersWhat we delivered so far
Consistent delivery of results generating value to shareholders
Gross Margin Evolution| R$ MN CAGR 2017- Evolution of Operating Expenses| R$ MN CAGR 2017-
2020: 12.6% 2020: 0.7%
+43% +1.9%
c 10,233
44%
39%
c35%
32%
7,857 9,163 10,135 2,513
7,174
3,162 3,087 3,180 3,225
2017¹ 2018 2019 2020 9M21 2017¹ 2018 2019 2020 9M21
Expense / Gross Margin
2017 2018 2019 2020
CAGR 2017-
EBITDA Evolution| R$ MN CAGR 2017- Evolution Net Income | R$ MN 2020: 74.5%
2020: 21.0%
+77% +431%
c c
7,445 2,809 3,290
6,496 2,229
4,552 5,719 1,536
3,666 529
2017¹ 2018 2019 2020 9M21 2017¹ 2018 2019 2020 9M21
NOTE:(1) 12-month pro forma contemplating ElektroShare Evolution: NEOE3 since IPO
WHO Announces
80% Covid-19
Pandemic
Positive Agenda 2
in Brazil
Favorable Macro
scenario
50% 1 Rescue Intervention in
of Petrobras,
Frustration
Electric threatens to the
AP RTE Loss of Fiscal Anchor
Sector Electric Sector
Hydric Crisis
3 4
and 2nd Covid-19
wave 5
20% 6
8.12%
5
3.51%
-10% CEB-D
Auction
Current Price: R$16.92
-40% 28/06/2019 30/12/2019 30/12/2020
Average Target Price: R$ 26.04
11/11/2021
06/28/2019 12/30/2019 12/30/2020 11/24/2021
Potential for significant appreciation!2 Neoenergia
BrasiliaNeoenergia Brasilia Focus on value creation drivers!
Losses Deliquency OPEX Quality
6.5X in excess of all 9X more negotiations than 20% Reduction of
+400 thousand
energy RECOVERED
in 2020
the average before merger
(Jan-Feb 2021) Opex Interruptions AVOIDED
▪ Disconnections: 70 thou | Headcount adjustment (- DEC: 8% reduction
▪ 19.4 thousand illegal ▪ ▪
R$145MN; 25%); compared to the same
connections normalized;
▪ Negotiations : 37 thou | Process Restructuring and period of previous year
▪ 29.7 thousand inspections; ▪
R$75MN; Integration; (Mar-Sept);
▪ 335 thousand updates of
▪ Collection actions: 1.2MN Integrated Purchases; ▪ 22 Self healing and 157
Street Lights; ▪
actions | R$105MN; Reclosers installed;
▪ 158 GWh | R$113MN of ▪ Voluntary Dismissal
▪ Campaigns | R$18MN. Program. ▪ 9.7 thous Km of networks
Revenue.
inspected.
3X more investments in
network than historical average R$ 80MN in 7 monthsTransformation of Distribution in Brasilia
0 new collaborators in New Headquarters
New Integrated Operating CenterTransformation of Distribution in Brasilia
Before, with an average of 9.5 years, in 2021 will be
reduced to 5 years.
Electric vehicles in operation, vehicle adjusting and
renewal of the Neoenergia standard fleet.Neoenergia Brasilia
Cost Cashback Social Energy to
Efficiency Campaings Tariff restart
▪ Renegotiation of bank ▪ Payment via digital ▪ Proactive registration ▪ Benefit offers to
fees, matching those wallets: cashback of low-income customers: attractivity
of the other for new users; customers; for adherence to digital
distributors. ▪ Higher payment rate; products;
▪ Encouragement to ▪ Up to R$40 thousand in
▪ Better customer
payment and prizes;
experience;
digitalization.
▪ Guarantee of ▪ Encouragement to good
23% revenue. debt and registration
update.
▼
R$
0.97 34 thou
R$ ▲
0.79 183%
12 thou
ANTES
BEFORE DEPOIS
AFTER ANTES
BEFORE DEPOIS
AFTERService Transformation
VIRTUAL OFFICE SOCIAL MEDIA MOBILE APP
Web Channel www.neoenergiabrasilia.com.br Instagram | Facebook | Twitter | Linkedin IOS and Android
CALL CENTER HEARING IMPAIRMENT FACE-TO-FACE SERVICE
Human 116 0800 701 01 55 On time – by appointmemt
Interaction
NEGOTIATION PORTAL WHATSAPP
Neobrasilia.negocieonline.com.br (61) 3465 9318 www.neoenergiabrasilia.com.br
NOVELTY NOVELTY NOVIDADE
Easiness
OMBUDSMAN
Ombudsman portal | 0800 644 6116
ROW
6Neoenergia Brasilia
Early Loss adjustment in Tariff Review: growth of 4.7% on parcel B,
2023! with greater OPEX coverage and Capital Remuneration.
Regulatory framework in 2022: Opex, Loss coverage 1% above business plan.
DEC, FEC and Ebitda.
Better use of tax credits! Early settlement of more expensive debts and
replacement with longer and cheaper debts.
Return above Business Plan forecast!3 Digitalization
Neoenergia Digital Connection Project
Larger R&D project of the
elecrictric sector focused on Development of +100 Investment forecast
new products and services + R$ 172 MN (R&D + Capex)
the customer
+14 MN R$ 35 MN
New App
Services
via WhatsApp
Collected by PIX
6.8 MN invoices issued
77% Digitalization of Clients
Service growth
+185% previous year Proj. Growth 60% until Dec’22 95%
94%
92%
94%
2021 Lauches Launches Predicted 90% 92% Actual
• Energy to Restart Indicator
• 30% big sale 88%
• Analytics & Big Data + Insights 85% 88%
• Low-income sale Projection
• New CRM
• WhatsApp Neoenergia Brasília
• Advantages Club
• New WhatsApp services
• New Virtual Office
• Negotiation Portal Pre-pandemic
• Portal Large Clients
• Marketing Automation Projection
• Recurring Payment with Card 2019 2020 2021 2025 2030
(YTD)Neoenergia Digitalization
NEW NEGOTIATION CHANNELS
Digital migration for all clients’ experiences, potentializing Neoenergia results.
Monthly average of Negotiations
Online Negotiation Portal
Online Portal WhatsApp +12%
Call Center Negotiation May 20 May 21
+85%
283 thou 72 thou
negotiations negotiations
Negatiation by WhatsApp 76
68
R$ 252 MN R$ 32 MN
48
recovered recovered
26
CONTINUOUS GROWTH OF THE More Practical
Volume of Amount recovered
Negotiations (R$ million)
VOLUME OF NEGOTIATIONS (thousands)
More agility
2020 2021Neoenergia Digitalization
Digitalization of Payment Means
Payment Channel Digital invoices (million)
Credit Card Payment by Installments
Pix 24x +12%
+38%
+18%
Mar.20 Nov.20 Apr.21
41.6% 43.2%
31.3% 1.8
Sep.21 1.1 1.3
Oct.20 Jan.21
Energy to Cashback Recurrence on 2019 2020 2021 2019 2020 2021
Restart credit card
Average Collection Tariff
More Payments R$ 0.81
-12%
R$ 0.71 -11%
More Practical R$ 0.63
More Loyalty 2019 2020 2021
Disregarding inflation adjustmentNeoenergia Digitalization
Expansion of the use of digital technologies focused on operating excellence
and efficiency contributing to strategic goals.
Automation Operational
Centers
Reduction of Agility in Intelligent Shorter Service
incidents Recovery Dispatch Time
Telecommunications Smart Reading
Loss Control
and Cybersecurity Metering Efficiency
Reduction of Operating
Displacement Efficiency Deliquency
Control
Service Quality Operating Efficiency Loss Reduction Emmision Reduction
21.0% 20.5% 6.1% 7.2%
DEC OPEX/client Losses ton CO24 Regulation
Business Environment
Brazilian Electric Sector carries on providing many growth opportunities with attractive returns and well
developed regulatory environment.
• Public meetings • Agility Innovation and quick responses to crisis
• Subsidy taking • Coordination
• Public consultations • 2014 ACR Account
• Regulatory impact
analysis • Covid Account
Regulatory Solution
Governance Building • Tariff Flags
• Measures to reduce tariff resets
• Reprofiling of basic grid
• Itaipu deferral
Regulatory
Upgrading • Evolution • Partial use of Pis/Cofins credits
• New business Enhancement
models • Better
• Correction of international
asymmetries practises Structured credit operations under development
to reduce the impacts of short-term costsTariff Resets and Reviews
Tariff Reset
∆% VPB 9.1% 30.6% 29.9% 32.5% 4.7%
∆% VPA 18.9% 16.2% 18.5% 0.4% 10%
Total before
measures 13.7% 21.1% 21.9% 25.6% 33.3%
Increase to 8.99% 8.96% 8.98% 11.5% 11.1%
Consumer
Increase in VPB 1% increase on
despite reduction Application of IGP-M without coverage of
of WACC deferral of Parcel B regulatory lossesEvolution of the Electric Sector
ENHANCEMENT UPGRADING
Energy safety and Expansion of
Installed Capacity
Regulatory Losses
Dec 21 Capacity Auction
• Public Consultation closed; Hybrid and Associated Plants
• Technical note with analysis of contributions disclosed; 2nd phase of Public Consultation awaiting
• Awaiting Board decision. ANEEL analysis
Rationalization of Subsidies
Regulatory Operating Costs Distributed Generation
Offshore Windfarms
• 2nd phase of Public Consultation;
• Awaiting analysis of contributions. 2 Bills pending in Congress
Forecast of MME Public Consultation
ACTIVE PARTICIPATION
• Technical arguments;
• Creativity in the construction of regulatory solutions;
• Regulatory/Institutional Relations.Market Liberalization
FREE MARKET
Source: ABRACEEL 2021
+ than 80 Million │ Distributor Balance
clients │ (D&C segregation)
Mercado potencialmente livre
(Average GW)
│ Demand for investments in
grid digitalization
│ Remuneration of the last
2024
forward
resort supplier5 Market
LiberalizationLiberalized – Free market
NEOENERGIA IS IN A POSITION TO CAPTURE GROWTH WITH VALUE GENERATION
Number of Consumers Free Market (thou) CURRENT MARKET POTENTIAL
+ 32% p.y. 9.5
8.6
7.1 AT consumers with Demand ≥ 0.5 MW
5.8 Brazil
5.2
4.1
1.8
+ 13 thou UCs + 3 GWm
AT consumers with Demand ≥ 0.3 and < 0.5 MW
2015 2016 2017 2018 2019 3Q2021
2020 3T 2021 Brazil
Energy in Free Market (GWm)
+ 9 thou UCs + 1 GWm
34%
32% 35%
25 29% 30% 30% 23
26% 19 20 20 30% AT consumers with Demand ≥ 0.1 and < 0.3 MW
20 24% 18 Brazil
16 25%
15
15 20%
10 15%
10%
+ 75 thou UCs + 3 GWm
5
5%
0 0% Source: CCEE, Internal
2015 2016 2017 2018 2019 2020 3Q
3T2021
2021
BRAZIL IS UNDERGOING MARKET LIBERALIZATIONSome of today’s numbers from the trading company
We are the
country’s 8th
+694 +193 95% 740 largest trader in
energy supply to
Energy Mngt Satisfaction Index of MWm final consumers
customers customers Energy Mngt Clients Traded Source: CCEE
Data from Sept/21
- 2021 MONTHLY
+70% +86%
Covid Impact
491 notices of 130 clients and 6.7 TWh 9.5 thou consumer agents liberalized in Brazil
renegotiated, minimizing the final impact without
relevant economic loss for the company. 7.2% are clients of Neoenergia Group
Note: % of comparative increase from DEC’19 to SEP’21ROTEIR
O
Growth of energy volume contracted for
Business Strategy final clients (TWh)
Through
Interaction among Renewables areas – Liberalized + 24%
4.3
+ 8% 4.6
5.7 Neoenergia
Growth of renewable park (GW) Comercializadora,
4.5
we sell the
Chafariz 2020 2021 2022
9X 3.5 Oitis COD
2022 Volume of energy sold during the year
(TWh)
+ 43% 10.1 Renewable energy,
1.2 + 11% 7.0
6.4
0.5 0.8
allowing the
2003 2011 2015 2019 2022
2019 2020 3Q21
3T21
expansion of our
• Company’s portfolio management, responsible solar and wind
28 7
for liberalized and renewables gross margins;
• Commercial teams dedicated to long-term PPAs plants.
and large volumes of energy;
• Performance in retail market with Retail Trader.
Wind Farms HydroelectricLiberalized – solutions for customers
Products and services client portfolio Commercial Team RR
AP
* (thou)
+ 19% 101
456
+ 88% 85
+ 89% AM
PA MA CE RN
+ 77% 243
+ 24% 45 PI PB
AC
137 RO TO PE
110
AL
MT BA SE
2019 2020 3T21 2025 2019 2021 2025
GO
MG
Occupation area MS
Some current figures... > 550 ES
SP
Engineering projects 2022 expansion
PR RJ
90% > 1,625
Customers served RS
SC
Of clients refer Neoenergia to in solar GD
relatives and friends
79
2nd Satisfaction Survey with
Recharge points
Solar clients 2021 Strategic growth seeking commercial
opportunities in high potential regions.
* Product and service clients include: solar, massified, mobility and engineering6 ESG
Sustainability in the DNA
ESG INTEGRATED INTO THE BUSINESS MODEL
• Sustainable practices
• Independent Audit SOX Validation
ISE B3 ranking on first Mention in the Sustainability
• Transparency and Disclosure
submission yearbook on first submission
STRATEGIC ACTIONS OTHER HIGHLIGHTS
Policies: Governance and Sustainability System
Neoenergia Institute: Contribution in enhancing
Electricians school: Governance of society support institutions
4.2 thousand graduate students
71% hired, 240 women Diversity: boosting women’s sports
Recognized by ONU in the XI Award “Corresponsables da
Iberoamérica”, which values the best initiatives and good practices in
Long-term Incentive: ESG Goals
social responsibility, sustainability and communicationsOur commitment to ESG | Goals
CO2 Emissions Representativity
Goal: Reduce in 50% our carbon emission Global Goal: 35% women in the
until 2030 and be carbon neutral until 2050. Company until 2030.
Climate Action Policy that formalizes We have 33% women in the executive board
The Group’s commitment
Biodiversity Suppliers’ Sustainability
Goal: Reach “zero net loss” for new Corporate goal: 70% of large suppliers
ventures by 2030. classified as sustainable until 2022 and
100% by 2030.
Environment protection Policy and respect for biodiversity Sustainability in the supply chain7 The Future
Perspectives of the Brazilian Electric Sector
Charge 2031 vs. 2019 53% Generation Expansion of reference scenario (GW)
Source: Energy Expansion Decennial Plan 2031
Source: Energy Expansion Decennial plan 2030
43%
Impact
Covid- 32%
19
4% 103% 483% 12% 171% 9%
(Average GW)
+4 GW +16 GW +21GW +2,5GW +5GW +1GW
67.8
2020 2030
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Superior Reference
Referência Inferior Hidrelétrica
Hydro Eólica
Wind GD Térmica
Thermo Solar Biomassa
Biomass
Transmission 23%
2020 Free Market
Source: Decennial of Energy Expansion Plan 2030
+130 thou MVA
2030
Alta Tensão
High Voltage
33%%
Potentially Free Market
+37 thou km BT > 5GWh
(Average GW)
BT > 1GWh
Source: ABRACEEL 2021
BT < 1GWh
163 200 395 525
Thou Km
Mil Km Thou MVA
Mil MVA 2019 2020 2021 2022 2023 a2024
partir
Forward
2024Organic Growth in Distribution
Balanced Portfolio
Per capita GDP Market Share by Region 2020 Average residential
consumption
1st Distrito Federal 2.24
2.32
2.12 2.08
2nd Sao Paulo
1.54
3rd Rio de Janeiro
4th Santa Catarina 64%
5th Rio Grande do Sul
6th Mato Grosso
36% Norte
North Nordeste
Northeast Sudeste
Southeast Sul
South Centro-Oeste
Midwest
7th Mato Grosso do Sul
Northeast: Lower average residential
consumption and CAGR of the 2020-
Sao Paulo and Brasíiia: Demand 2030 expansion is 0.6 p.p. higher than
for upgrade and quality Brazil average:
Factors marked by perspectives of Brazil: 20% of average consumption per
market liberalization capita (MWh/person) of USA and 52% of
China
Source: Empresa de Pesquisa Energética
Sopurce: IBGE, 2018 data
Neoenergia distributors grow by 1.2MN clients every 5 yearsDigitalization
Short Term Medium Term Long Term
Networks and Operation Digitalization Smart Real-Time Systems Large-Scale Digitalization
• Automation of networks and • Quality and efficiency in the field; • Automation of networks with the
substations with self-healing; • Advanced Distribution use of new technologies (IoT, AI,
• Mobility in the field; Management System. 5G);
• Open Innovation Platform. • Smart metering of low-voltage
customers;
Intelligence and Management
• Consumption management in real
Relations time;
• Customer Relationship • Automatic reading and billing.
• Chatbot / WhatsApp Evolution; Management;
• Expansion of digital means of • Analytics to guide actions.
payment.
Improvement to DEC quality and reduction of expenses per customerInvestment in the transmission segment
Integrated Assets and Efficient Management
Wide-reaching operation in the national territory, with 6.6 thousand
km of line extension (between completed and under construction)
Investment Strategy Value Addition
JALAPÃO (BA, PI and TO)
Synergies • Regions with high economic SOBRAL (CE)
dynamism; SANTA LUZIA (PB and
Wind and
• Expansion pipeline by Investment in CE)
solar
projects existing projects (additional
remuneration w/out the need for NARANDIBA (RN)
auctions). POTIGUAR SUL (RN)
Distribution Project Selection
AFLUENTE T (BA)
concession • Better supply quality and Neoenergia RIO
areas distributors’ market growth; FORMOSO NARANDIBA (BA)
(BA)
• Wind and solar generation flow. MORRO DO CHAPÉU
(BA, MG and ES)
DOURADOS ITABAPOANA (RJ and MG)
(MS and SP)
GUANABARA (RJ)
ATIBAIA (SP)
Our Advantages: ▪ Own personnel; VALE DO ITAJAÍ
(PR and SC) BIGUAÇU (SC)
▪ Centralized purchases | scale gains; LAGOA DOS PATOS (SC and RS)
▪ Operating track record;
▪ Access to competitive funding. Dec. 2017 Dec. 2018 Dec. 2019 In Operation Dec. 2020
Auction Auction Auction Nov’21 AuctionGrowth in Reneawbles Wind in operation
PIPELINE: 4.8 GW ONSHORE WIND and SOLAR Wind under construction
Piauí 965 Solar under construction
Rio Grande do Norte 167
Project Portfolio
Pernambuco 772
Minas Gerais 1,464 Onshore Wind
Bahia 956 Solar
Rio Grande do Sul 463
Total 4,787
100% 77% 1
Project with
Registered Registered
grant
with ANEEL with EPE
request
UFV Luzia
LT Santa Luzia
STRATEGY GOVERNANCE
Chafariz Complex
▪ Synergy with other Group’s assets ▪ Projects with high level of maturity (land
▪ Support from Trading Company with regularization, preliminary licenses,
management and sale of the parks’ geological sudies)
energy ▪ Mitigation of CAPEX variation by pre
▪ 80% of resources sold until 2024 agreements with suppliers
with medium and long-term ▪ Exchange variation protection via hedge
contracts ▪ Alignment with sector regulationLiberalized
TERMOPERNAMBUCO OPPORTUNITIES
Purchase in capacity reserve auctions
Supply options - GNL or gas tube
Firm energy demand scenario and energy services in the
system
SHORT TERM
Plant control to increase flexibility and allow operating as
capacity reserve
2nd 25%
Improves start-up time, reliability and yields (Turbine startNew Technological Opportunities
Technology cost 85%
85% 49%
reduction
2010-2018
Source: BloombergNEF - New Energy Outlook 2019
Offshore Wind Generation Green Hydrogen
Wind potential of 697 GW¹ Brazil will be among the lowest global costs of
green hydrogen by 2050
197
Coreia do Sul
Japão
356
Alemanha
França
China
Espanha
47 Índia
EUA
Brasil
97
0 0,5 1 1,5 2
Source: Wind Atlas Source: BNEF (2021, apud TENGLER
¹ Up to 50 meters profundity and wind speed from 7m/s (2021))Remuneration
Profit and Results Sharing | Short-Term Incentives:
from the CEO to the electrician, all have goals linked to the
operational and financial performance of the businesses.
Long-Term Incentive: pluriannual Results and ESG
goals, paid in shares | vesting of 3 years.
Variable remuneration permeating ALL employees, ensuring
alignment and full convergence of interests.Growth until 2025
In the electric sector! Organically and in selected greenfield opportunities with value creation!
Distribution
Growth of +250 thousand new customers per year; Renewables
Investments with full recording in RAB; Execution of Pipeline opportunities;
Neoenergia Brasília included in the Regulatory EBITDA Delivery of Wind Complex Oitis and Luzia Solar Plant.
until 2022.
Transmission Liberalized
Selected search of projects; Recontracting of Termopernambuco;
Delivery of Dec’18, Dec’19 and Dec’20 lots. Expansion of Trading Company.
Capex of R$25 bi until 2025 Leverage at the level of 3.0x
Cost discipline: grow below inflation Risk-adjusted returnNeoenergia will carry on being a case of
growth with efficiencies to generate
value. Projects with double-digit returns!
DISCOS’ ORGANIC GROWTH
GROWTH IN RENEWABLES
GROWTH IN TRANSMISSION
COST DISCIPLINE
RIGHT AND ENGAGED TEAMTHANK YOU!
Investors Relations
Website: ri.neoenergia.com
E-mail: ri@neoenergia.com
Telephone: +55 (21) 3235-9828You can also read
