Corporate presentationDecember 2015
The material that follows is a presentation of general background information about ENEVA S.A. and its subsidiaries (collectively, “ENEVA” or the “Company”) as of
the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty, express or implied, is made
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 views and/or expectations of the
Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement
that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like “may”, “plan”, “believe”, “anticipate”,
“expect”, “envisages”, “will likely result”, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and
assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates
and intentions expressed in this presentation. In no event, neither the Company, any of its affiliates, directors, officers, agents or employees nor any of the
placement agents shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the
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 should consult their own advisors
in this regard.
The market and competitive position data, including market forecasts, used throughout this presentation were obtained from internal surveys, market research,
publicly available information and industry publications. Although we have no reason to believe that any of this information or these reports are inaccurate in any
material respect, we have not independently verified the competitive position, market share, market size, market growth or other data provided by third parties or
by industry or other publications. ENEVA, the placement agents and the underwriters do not make any representation as to the accuracy of such information.
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without ENEVA’s prior
written consent.
Disclaimer
ENEVA Overview
1
Investment thesis and introduction
4
• World-class assets operating in coal and gas
• PPAs secured in the captive market for 15/20 years, all inflation hedged
One of the largest private power players in Brazil with 2.2GW fleet fully operational
• Only power player in Brazil with access to equity gas, which directly
supplies +1.4GW Parnaíba Complex
Pioneer in the “gas-to-wire” tech implementation in Brazil with +1.4GW already running
• HoldCo debt cut by R$1.4B and remaining part re-profiled inline with
projected projects cash flows
• All OpCos loans re-profiled
Capital structure fully rebalanced as JR process completed
• Significant reduction of ~30% in HoldCo headcount in the last year
• HoldCo operating expenses reduced by app. 40% in the last 12mo.
Organizational streamlining successfully concluded
• Favorable outcome in regulatory claims with +R$130MM recovered and
+R$2.4B avoided in the last 18mo.
• Turnaround plan delivered
Seasoned team with proven track history ready for additional value creation
• Parnaíba I OCGT bottoming to be completed in the next 5 years¹
• Renewable platform / attractive 600 MW potential
> 4 GW of projects ready for deployment
1
2
3
4
5
6
Note: (1) Renewable for more 5 years, as provided for in the agreement with Aneel to postpone Parnaíba II CCGT start of operations. Depends on the implementation of certain conditions precedent.
A Brazilian thermal generator with asset exposure to energy fossil fuels (natural gas and coal)
ENEVA at a glance
2.2GW inflation-protected long-term PPAs
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 ENEVA’s power plants
Competitive portfolio of licensed greenfield wind, coal and gas
fired capacity
Company description Geographic footprint
Amapari – 23MWDiesel-run in partnership with Eletronorte to supply mine pit (Currently under negotiation)
Itaqui – 360MWCoal-fired plant, strategically located in port area capturing logistics advantages
Natural Gas Exploratory
blocksOperated by PGN
(Cambuhy PE, ENEVA and E.ON partnership)
Contracted productionof 8.4MM m3/day
Pecém II – 365MWCoal plant exploring site synergies with Pecém I (EDP)
Parnaíba Complex – 1.4GW4 gas-fired plants inaugurated the gas-to-wire concept in Brazil
Solar Tauá – 1MW1st commercial solar plant in Brazil
5
Current shareholding structure
BTG Pactual
12.25%49.57%
Itaú Unibanco
11.65%
Ice CanyonLLC
6.80%
Others(< 5% ea.)
13.21%
E.ON Bullseye
6.53%
Judicial Recovery process
2
7
Judicial Recovery processA fundamental path concluded to prepare ENEVA for a new phase
Implementation of JR Plan measures
o JR plan approved by 99% of creditors and 81.5% of total credits held by creditors that attended
Creditor Meeting held on 30/Apr
o Holding indebtedness fully allocated in the long-term and reduced by R$1.4Bln (remaining balance
of approx. R$983MM)
o Contribution of strategic and cash generators assets
Capital increase completed on 05/Nov with the contribution of R$2.3Bi
o Strengthening ENEVA with the contribution of R$1.3Bln in assets which are cash generating and
aligned to the Company’s business strategy
o Holding's debt reduction of approx. R$2.4Bln to R$983MM (fully allocated in the long-term)
o Additional funds raised from the minority shareholders contribution (R$9.1MM)
All stages of the JR Plan fully met
New ownership structure comprised by diversified and relevant shareholders
New shareholding structure
Diversified and comprised
by relevant shareholders
BTG
Pactual
49,57%
E.ON
12,25%
Itaú
Unibanco
11,65%
ICE
Canyon
6,80%
Bullseye
6,53%
Others
13,21%
Assets overview
3
Assets snapshot - Coal725MW of installed capacity in full operation
9Note: (1) Fixed revenues are indexed to inflation index – IPCA (Database: Nov 2014)
Operational data
Capacity: 360MW
Auction: A-5/2007
COD: Feb 2013
Revenues
Fixed Rev.¹: R$336 MM/year
Variable Rev.: R$120/MWh
Economics and Financial Facts
EBITDA (9M15): R$107MM
Net Debt (3Q15): R$1.2B
Debt profile (3Q15): Project finance (99.5% LT)
Itaqui
Operational data
Capacity: 365MW
Auction: A-5/2008
COD: Oct 2013
Revenues
Fixed Rev.¹: R$302MM/year
Variable Rev: R$126/MWh
Economics and Financial Facts
EBITDA (9M15): R$131MM
Net Debt (3Q15): R$1.1B
Debt profile (3Q15): Project finance (98.2% LT)
Pecém II
Assets snapshot – Natural gasA unique case in Brazil power generation sector with 910MW already in operation
10Note: (1) Fixed revenues are indexed to inflation index – IPCA (Database: Nov 2014)
Operational data
Capacity: 676MW
Auction: A-5/2008
COD: Apr 2013
Revenues
Fixed Rev.¹: R$472 MM/year
Variable Rev.: R$110/MWh
Economics and Financial Facts
EBITDA (9M15): R$149MM
Net Debt (3Q15): R$655MM
Debt profile (3Q15): PF (82% LT)
Parnaíba I
Operational data
Capacity: 178MW
Auction: A-5/2008
COD: Dec 2013
Revenues
Fixed Rev.¹: R$104 MM/year
Variable Rev.: R$171/MWh
Economics and Financial Facts
EBITDA (9M15): R$54MM
Net Debt (3Q15): R$77MM
Debt profile (3Q15): PF (0% LT)
Parnaíba III
Operational data
Capacity: 56MW
Free market
COD: Dec 2013
Revenues
Fixed Rev.¹: R$54 MM/year
Variable Rev.: N.A.
Economics and Financial Facts
EBITDA (9M15): R$19MM
Net Debt (3Q15): Interco. loan
Debt profile (3Q15): N.A.
Parnaíba IV
Operational data
Capacity: 518MW
Auction: A-3/2011
COD: Dec 2014
Revenues
Fixed Rev.¹: R$398 MM/year
Variable Rev.: R$63/MWh
Economics and Financial Facts
EBITDA (9M15): N.A.
Net Debt (3Q15): R$934MM
Debt profile: 24% reprofiled in LT
(R$225.3MM w/ Itaú); outstanding ST
balance to be negotiated
Parnaíba II
Assets snapshot – Upstream (1)Exposure to gas businesses upgraded to 49% with the end of capital increase
11Note: (1) Adjusted by Company’s intereset. Full contracted capacity expected to be reached by June 2016
Operational data
Contracted capacity¹: 5.9MM m³/day
Before capital increase: 18%
Current stake: 27%
Economics and Financial Facts
Revenues: R$582 MM
EBITDA (2014): R$396 MM
Net Debt (2014): R$634 MM
Debt profile (2014): Debentures (96% LT)
Operational data
Contracted capacity¹: 2.5MM m³/day
Before capital increase: 0%
Current stake: 100%
Economics and Financial Facts
Revenues: R$250 MM
EBITDA (2014): R$164 MM
Net Debt (2014): R$(21) MM
Debt profile (2014): R$ - MM
Assets snapshot – Upstream (2)Move in ANP’s recent bidding round in order to increase knowledge of existing resources of the
Parnaíba Basin
12
Relevant participation in the ANP’s 13th Bidding Round
o Winning bid for the Block PN-T-84 (Signing bonus: R$2.1MM)
Investment through a consortium of subsidiaries fully-owned by ENEVA (70% Parnaíba
Participações and 30% BPMB)
3,065Km² area, located at north of the Parnaíba Basin
Exploratory campaign to be held over the next 4 years
Investment in order to increase knowledge of existing resources in the region of the Parnaíba
Basin
o Acquisition, directly or through subsidiaries, of participation in other 6 blocks, out of a total of 35
onshore blocks:
PN-T-69 e PN-T-87: 49,1% ENEVA (30% BPMB and 70% PGN)
PN-T-146 e PN-T-163: 27,3% ENEVA (100% PGN)
PN-T-101 e PN-T-103: 17,7% ENEVA (65% PGN and 35% others)
All blocks are located in the Parnaíba Basin
ComplexoParnaíba
Blocks offered in the ANP’s 13th
Bidding Round (Parnaíba Basin)
Assets overview summaryFocusing and strengthening after JR’s capital increase conclusion
13Notes: (1) Resulting indirect ownership in the Parnaíba gas blocks based on ENEVA’s share in PGN and BPMB; (2) Parnaíba II is not in commercial operation; (3) Proportionate to ENEVA’s stake in each asset; (4) Proportionate ENEVA share post capital increase, based on 2014 closing numbers
• Parnaíba I • Parnaíba II2
• Parnaíba III • Parnaíba IVTOTAL
• Parnaíba I• Parnaíba II2
• Parnaíba III • Parnaíba IV TOTAL
• Pecém I • Pecém II • ItaquiTOTAL
• Pecém I• Pecém II• ItaquiTOTAL
• Closing Cycle (gas)• Seival (coal)• Açu (gas)• Ventos (wind)• Tauá (solar)
• Closing Cycle (gas)• Seival (coal)• Açu (gas)• Ventos (wind)• Tauá (solar)
• PGN• BPMB• Parnaíba Blocks1
• PGN• BPMB• Parnaíba Blocks1
GasUpstream
GasPower Plants
CoalPower Plants
Greenfield & Brownfield Projects
Prior to Capital Increase Post Capital Increase
18%0%
13%
70%100%53%53%
50%50%
100%
50%75%75%50%50%
27%100%49%
100%100%100%100%
0%50%
100%
100%100%100%100%100%
Asset Stake(R$ MM)
Net Rev.4 StakeAsset
105-
96111
13027
1,129
577284564
1,425
-----
157250
-284564848
1,37311
24550
1,679
-----
Size4
473 MW518 MW94 MW30 MW
1,115 MW
360 MW183 MW360 MW903 MW
180 MW450 MW
2,475 MW300 MW25 MW
360 MW600 MW
3,300 MW600 MW49 MW
-183 MW360 MW543 MW
676 MW518 MW178 MW56 MW
1,428 MW
Operational
DevelopmentTOTAL 2,554 2,527TOTAL2,018 MW 1,971 MW
TOTAL TOTAL3,430 MW 4,909 MW
(R$ MM)
Net Rev.4Size4
TOTAL 105 407TOTAL
Greenfield portfolio
4
ParnaíbaComplex
Integrated to natural gas resources
Located in a tax-advantaged region
Ventos Wind Complex
Located in one Brazil’s best wind resource areas
Attractive load factor
Just 30km from grid connection
Land ownership assured
Açu (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 Mton)
Low operation costs
Power
supply-demand
unbalanced
Hydropower
concentrated
matrix
Spot prices at
historical highs
Demand for base-
load generation
Opportunities
for ENEVA’s
growth2 3 4 51
Sul727MW
ParnaíbaComplex2,166MW
Seival600MW
Açu2,100MW – Coal3,300MW – Natural Gas
Solar Tauá1MW
Ventos Wind Complex600MW
Seival MineLicense granted 152Mton in proven reserves
ENEVA’s greenfield portfolioAttractive licensed greenfield projects in various development stages
15
Part of Parnaíba II Agreement settled with Aneel in Nov 2014
Bottoming of open cycle gas turbines from Parnaiba I power
plant provides extra 360MW
Competitive project as no additional gas needed¹
Installation Environmental License issued
Plug and Play: 500kV electrical substation and water supply
already built
Known technology, original design of Parnaiba Generation
Complex done to enable modular expansion, leading to
efficient implementation and operation
o ENEVA recent experience in Parnaíba II combined-cycle plant at
neighboring site
Cost sharing efficiency (O&M, administrative, HSSE, spare
parts etc.) with Parnaíba Generation Complex make the project
even more competitive
Highlights Parnaíba Site
Bottoming #1 Bottoming #2
Note: (1) To enable expansion additional fuel mainly for PPA/contract harmonization and internal consumption
Parnaíba I: Closing of the cycleHighly competitive expansion to existing site
16
Annex I – Financial and operating performance
5
-95,3
-31,3 -5,9
24,2 36,1 20,1
112,1
-28,7
15,2 47,2 45,0
-20,3%
-6,2%
16,1%
22,7%
14,7%
82,9%
-21,6%
9,8%
39,5%28,8%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
EBITDA Mg. EBITDA
-10,7 -6,1 -8,3
55,4
46,3
33,5
45,8
54,9
45,8
38,2
47,3
31,5%
23,9%
36,1% 35,8%32,8% 33,4% 33,3%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
EBITDA Mg. EBITDA
Itaqui
18
EBITDA and EBITDA Mg.
Pecém II
EBITDA and EBITDA Mg.
Availability¹ Availability¹
COD: Feb/13 COD: Oct/13
Note: (1) Based on Company and ONS data
63%
83% 84%87%
74%77%
87%
73%
88%
74%
90%
56%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Oct-15
N.A. N.A. N.A.
80%
99%96%
77%
99%
89%
54%
90%94%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Oct-15
Financial and operating performance (1)Coal-fired portfolio
Parnaíba I
19
EBITDA and EBITDA Mg.
Parnaíba III
EBITDA and EBITDA Mg.
Parnaíba IV
EBITDA and EBITDA Mg.
Not applicable due to energy trading structure
(Parnaíba IV – asset; and Parnaíba
Comercializadora – energy trading)
Availability¹ Availability¹ Availability¹
COD: Apr/13 COD: Oct/13
Note: (1) Based on Company and ONS data
96% 95% 97% 98% 99% 98%94%
86%81%
87%83%
95%
N.A. N.A. N.A.
100%100%
80% 82%
69%
96%
89%
80%
91%
N.A. N.A. N.A. N.A.
99%
63%
91% 91%
68%
94%
87% 87%
-5,9
28,2
58,8
32,044,8 50,3
20,3
65,6
48,254,4
46,9
27,7%
74,6%
16,7%20,3%
9,6%
28,1%
21,8%
28,5%
22,4%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
EBITDA Mg. EBITDA
-30,9-20,0 -3,9
32,014,4
-8,4 -8,8
12,7 15,2 10,4 28,3
18,8%
-14,8%-15,9%
22,7%18,7%
21,1%
44,3%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
EBITDA Mg. EBITDA
Financial and operating performance (2)Coal-fired portfolio
Thank you.www.eneva.com.brThank you.www.eneva.com.br