Corporate presentation

December 2015

Disclaimer

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.
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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 ENEVAs prior
written consent.

1
ENEVA Overview

Investment thesis and introduction

1 One of the largest private power players in Brazil with
2.2GW fleet fully operational

World-class assets operating in coal and gas

Significant reduction of ~30% in HoldCo headcount in the last year

PPAs secured in the captive market for 15/20 years, all inflation hedged

HoldCo operating expenses reduced by app. 40% in the last 12mo.

Pioneer in the gas-to-wire tech implementation in

Brazil with +1.4GW already running

4 Organizational streamlining successfully concluded

Only power player in Brazil with access to equity gas, which directly
supplies +1.4GW Parnaba Complex

Capital structure fully rebalanced as JR process

completed

HoldCo debt cut by R$1.4B and remaining part re-profiled inline with
projected projects cash flows

All OpCos loans re-profiled

Seasoned team with proven track history ready for

additional value creation

Favorable outcome in regulatory claims with +R$130MM recovered and

+R$2.4B avoided in the last 18mo.

Turnaround plan delivered

> 4 GW of projects ready for deployment

Parnaba I OCGT bottoming to be completed in the next 5 years

Renewable platform / attractive 600 MW potential

4
Note: (1) Renewable for more 5 years, as provided for in the agreement with Aneel to postpone Parnaba II CCGT start of operations. Depends on the implementation of certain conditions precedent.

ENEVA at a glance
A Brazilian thermal generator with asset exposure to energy fossil fuels (natural gas and coal)
Company description

Geographic footprint

2.2GW inflation-protected long-term PPAs

Amapari 23MW

Long-term PPAs guarantee R$1.7 billion in annual inflationadjusted capacity payments

Diesel-run in partnership with

Eletronorte to supply mine pit
(Currently under negotiation)

Itaqui 360MW

Coal-fired plant, strategically located in

port area capturing logistics advantages

PPAs provide hedge against commodity price exposure

Integrated gas E&P assets supply ENEVAs power plants
Competitive portfolio of licensed greenfield wind, coal and gas
fired capacity

49.57%

Pecm II 365MW

Coal plant exploring site

synergies with Pecm I (EDP)

Operated by PGN
(Cambuhy PE, ENEVA and
E.ON partnership)
Contracted production
of 8.4MM m3/day

Solar Tau 1MW

Current shareholding structure

BTG
Pactual

Natural Gas
Exploratory
blocks

1st commercial solar plant in

Brazil

E.ON

Ita
Unibanco

Ice Canyon
LLC

Bullseye

12.25%

11.65%

6.80%

6.53%

Others
(< 5% ea.)
13.21%

Parnaba Complex 1.4GW

4 gas-fired plants inaugurated the gasto-wire concept in Brazil

2
Judicial Recovery process

Judicial Recovery process

A 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)

New shareholding structure

Diversified and comprised
by relevant shareholders

Contribution of strategic and cash generators assets

Others
13,21%

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 Companys business strategy

Holding's debt reduction of approx. R$2.4Bln to R$983MM (fully allocated in the long-term)

Additional funds raised from the minority shareholders contribution (R$9.1MM)

Bullseye
6,53%
ICE
Canyon
6,80%
Ita
Unibanco
11,65%

BTG
Pactual
49,57%

E.ON
12,25%

All stages of the JR Plan fully met

New ownership structure comprised by diversified and relevant shareholders

7

3
Assets overview

Assets snapshot - Coal

725MW of installed capacity in full operation
Pecm II

Itaqui

Operational data

Operational data

Capacity: 360MW

Capacity: 365MW

Auction: A-5/2007

Auction: A-5/2008

COD: Feb 2013

COD: Oct 2013

Revenues

Revenues

Fixed Rev.: R$336 MM/year

Fixed Rev.: R$302MM/year

Variable Rev.: R$120/MWh

Variable Rev: R$126/MWh

Economics and Financial Facts

Economics and Financial Facts

EBITDA (9M15): R$107MM

EBITDA (9M15): R$131MM

Net Debt (3Q15): R$1.2B

Net Debt (3Q15): R$1.1B

Debt profile (3Q15): Project finance (99.5% LT)

Debt profile (3Q15): Project finance (98.2% LT)

9

Note: (1) Fixed revenues are indexed to inflation index IPCA (Database: Nov 2014)

Assets snapshot Natural gas

A unique case in Brazil power generation sector with 910MW already in operation
Parnaba I

Parnaba II

Parnaba III

Parnaba IV

Operational data

Operational data

Operational data

Operational data

Capacity: 676MW

Capacity: 518MW

Capacity: 178MW

Capacity: 56MW

Auction: A-5/2008

Auction: A-3/2011

Auction: A-5/2008

Free market

COD: Apr 2013

COD: Dec 2014

COD: Dec 2013

COD: Dec 2013

Revenues

Revenues

Revenues

Revenues

Fixed Rev.: R$472 MM/year

Fixed Rev.: R$398 MM/year

Fixed Rev.: R$104 MM/year

Fixed Rev.: R$54 MM/year

Variable Rev.: R$110/MWh

Variable Rev.: R$63/MWh

Variable Rev.: R$171/MWh

Variable Rev.: N.A.

Economics and Financial Facts

Economics and Financial Facts

Economics and Financial Facts

Economics and Financial Facts

EBITDA (9M15): R$149MM

EBITDA (9M15): N.A.

EBITDA (9M15): R$54MM

EBITDA (9M15): R$19MM

Net Debt (3Q15): R$655MM

Net Debt (3Q15): R$934MM

Net Debt (3Q15): R$77MM

Net Debt (3Q15): Interco. loan

Debt profile (3Q15): PF (82% LT)

Debt

Debt profile (3Q15): PF (0% LT)

Debt profile (3Q15): N.A.

profile: 24% reprofiled in LT

(R$225.3MM w/ Ita); outstanding ST
balance to be negotiated

10
Note: (1) Fixed revenues are indexed to inflation index IPCA (Database: Nov 2014)

Assets snapshot Upstream (1)

Exposure to gas businesses upgraded to 49% with the end of capital increase

Operational data

Operational data

Contracted capacity: 5.9MM m/day

Contracted capacity: 2.5MM m/day

Before capital increase: 18%

Before capital increase: 0%

Current stake: 27%

Current stake: 100%

Economics and Financial Facts

Economics and Financial Facts

Revenues: R$582 MM

Revenues: R$250 MM

EBITDA (2014): R$396 MM

EBITDA (2014): R$164 MM

Net Debt (2014): R$634 MM

Net Debt (2014): R$(21) MM

Debt profile (2014): Debentures (96% LT)

Debt profile (2014): R$ - MM

11
Note: (1) Adjusted by Companys intereset. Full contracted capacity expected to be reached by June 2016

Assets snapshot Upstream (2)

Move in ANPs recent bidding round in order to increase knowledge of existing resources of the
Parnaba Basin
Relevant participation in the ANPs 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% Parnaba

Blocks offered in the ANPs 13th

Bidding Round (Parnaba Basin)

Participaes and 30% BPMB)

3,065Km area, located at north of the Parnaba 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 Parnaba

Complexo
Parnaba

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 Parnaba Basin

12

Assets overview summary

Focusing and strengthening after JRs capital increase conclusion

Post Capital Increase

Prior to Capital Increase

Operational
Gas
Upstream

Gas
Power Plants

Coal
Power Plants

Development
Greenfield &
Brownfield Projects

Asset

Stake

PGN
BPMB
Parnaba Blocks1
TOTAL
Parnaba
Parnaba
Parnaba
Parnaba
TOTAL

I
II2
III
IV

Pecm I
Pecm II
Itaqui
TOTAL
TOTAL
Closing Cycle (gas)
Seival (coal)
Au (gas)
Ventos (wind)
Tau (solar)
TOTAL

Size4 Net

18%
0%
13%

(R$ MM)
Rev.4

105
105

70%
100%
53%
53%

473
518
94
30
1,115

(R$ MM)

Asset

Stake

PGN
BPMB
Parnaba Blocks1
TOTAL

27%
100%
49%

100%
100%
100%
100%

MW
MW
MW
MW
MW

961
11
130
27
1,129

Parnaba
Parnaba
Parnaba
Parnaba
TOTAL

50%
50%
100%

360 MW
183 MW
360 MW
903 MW
2,018 MW

577
284
564
1,425
2,554

Pecm I
Pecm II
Itaqui
TOTAL
TOTAL

50%
75%
75%
50%
50%

180 MW
450 MW
2,475 MW
300 MW
25 MW
3,430 MW

Closing Cycle (gas)

Seival (coal)
Au (gas)
Ventos (wind)
Tau (solar)
TOTAL

I
II2
III
IV

Size4 Net Rev.4

157
250
407
676
518
178
56
1,428

MW
MW
MW
MW
MW

1,373
11
245
50
1,679

0%
50%
100%

183 MW
360 MW
543 MW
1,971 MW

284
564
848
2,527

100%
100%
100%
100%
100%

360 MW
600 MW
3,300 MW
600 MW
49 MW
4,909 MW

Notes: (1) Resulting indirect ownership in the Parnaba gas blocks based on ENEVAs share in PGN and BPMB; (2) Parnaba II is not in commercial operation; (3) Proportionate to ENEVAs stake in
each asset; (4) Proportionate ENEVA share post capital increase, based on 2014 closing numbers

13

4
Greenfield portfolio

ENEVAs greenfield portfolio

Attractive licensed greenfield projects in various development stages

Power
supply-demand
unbalanced

Parnaba
Complex

Hydropower
concentrated
matrix

Spot prices at
historical highs

Demand for baseload generation

Integrated to natural gas resources

Opportunities
for ENEVAs
growth

Solar Tau
1MW

Located in a tax-advantaged region

Ventos Wind
Complex
600MW

Located in one Brazils best wind resource areas

Ventos Wind
Complex

Attractive load factor

Just 30km from grid connection

Land ownership assured

Parnaba
Complex
2,166MW

Au

2,100MW Coal
3,300MW Natural Gas

Au
(Coal + Gas)

Located at a port with a regasification terminal build

license

Seival Mine

150km from Campos Basin natural gas accumulations

License granted
152Mton in proven reserves

Environmental licensed to both coal and gas operations

Sul

Sul & Seival

Integrated to the Seival Mine (proven reserves: 152 Mton)

Low operation costs

727MW

Seival
600MW

15

Parnaba I: Closing of the cycle

Highly competitive expansion to existing site

Highlights

Parnaba Site

Part of Parnaba 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 needed
Installation Environmental License issued
Plug and Play: 500kV electrical substation and water supply

Bottoming #1

Bottoming #2

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 Parnaba II combined-cycle plant at

neighboring site

Cost sharing efficiency (O&M, administrative, HSSE, spare

parts etc.) with Parnaba Generation Complex make the project
even more competitive
16
Note: (1) To enable expansion additional fuel mainly for PPA/contract harmonization and internal consumption

5
Annex I Financial and operating performance

Financial and operating performance (1)

Coal-fired portfolio
Pecm II

Itaqui

EBITDA and EBITDA Mg.

EBITDA and EBITDA Mg.

COD: Feb/13

36,1%

COD: Oct/13
55,4
82,9%

39,5%

22,7%
16,1%
24,2
-31,3

9,8%
15,2

14,7%
20,1

36,1

-5,9

47,2

32,8%

33,4%

33,3%

54,9

23,9%
46,3

112,1

35,8%

31,5%

47,3

45,8

45,8

38,2

33,5
28,8%
45,0

-28,7

-10,7

-6,1

-8,3

1Q13

2Q13

3Q13

-6,2%

-95,3

-20,3%

1Q13

2Q13

-21,6%
3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

4Q13

1Q14

2Q14

3Q14

EBITDA
EBITDA

84%

74%

2Q15

3Q15

Mg. EBITDA

Availability

77%

90%

88%

87%

87%

1Q15

Mg. EBITDA

Availability

83%

4Q14

3Q15

99%

74%

73%

99%

96%

80%

90%

89%

94%

77%

63%
56%

54%

1Q13

2Q13

3Q13

4Q13

1Q14

Note: (1) Based on Company and ONS data

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

Oct-15

N.A.

N.A.

N.A.

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

Oct-15

18

Financial and operating performance (2)

Coal-fired portfolio
Parnaba I

Parnaba IV

Parnaba III

EBITDA and EBITDA Mg.

EBITDA and EBITDA Mg.

COD: Apr/13

EBITDA and EBITDA Mg.

44,3%

COD: Oct/13
32,0

74,6%
65,6

58,8
28,2

32,0

44,8

50,3

48,2

20,3

54,4

46,9

-30,9

-20,0

-3,9

14,4

12,7

18,8%

-8,4

-8,8

15,2

22,7%

10,4

28,3

21,1%
18,7%

Not applicable due to energy trading structure

(Parnaba IV asset; and Parnaba
Comercializadora energy trading)

-5,9
28,5%

28,1%

27,7%
16,7%

9,6%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

EBITDA

-14,8%-15,9%

22,4%

21,8%

20,3%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

Mg. EBITDA

EBITDA

Availability

Availability

99% 98%
96% 95% 97% 98%
94%

100%100%

95%
86%

Mg. EBITDA

81%

87%

Availability
99%

96%

91%

89%
80% 82%

83%

69%

N.A. N.A. N.A.

Note: (1) Based on Company and ONS data

94%

91% 91%

87% 87%

80%
63%

68%

N.A. N.A. N.A. N.A.

19

Thank
you.
Thank
you.
www.eneva.com.br
www.eneva.com.br