Energisa S.A. (BVMF:ENGI11)
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Apr 28, 2026, 1:55 PM GMT-3
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Investor Update

Dec 21, 2018

Speaker 1

Good morning, ladies and gentlemen. I would like to thank you for your time. On the talk about yesterday's auction. We have the whole group here, Mr. Itad Boaterlo, President Petersburg, Cautio, President of Corporate Finance, Realtio Motta, VP of Generation and Transmission, Mariana and Brendan.

I'll use some visual resources and we'll have a time for Q and A After the presentation, I would like to mention the purpose of our participation in this auction. We are always trying to abide by some requirements to find synergy with our distributors with lots that we made that we have purchased or may purchase in the future. We do not consider the impact of the synergies with the distributors in that first moment. We had yesterday lots 415 were taking concession rooms, lots 15 in Randonia. Lot 15, we tried for, but we weren't successful.

We were successful in Lot number level 4, 772 kilometers, 1 route through Tocanjes and another through the state of Bahia. We want to work on the potential of the transportation and photovoltaic energy in this state. And that is in the state of Chocanci. That is how and where the operation is and it will improve the system of distribution of the company of energy generation of toxins that has achieved its limits. And there we have a second point undergoing construction, which is a third point.

And that's why Energiza is one of the most interested parties as a stakeholder due to the gains in terms of energy distribution and generation in the state of proteins. We haven't considered those advantages initially in our base model. We analyzed the technical and land conditions. It's a lot very difficult to decommissioned due to its extension, which is 7 72 kilometers. Slide number 4, we'll make some comments on that.

And we'll talk about the reality. We have our return on investment rates that are equivalent to previous options. We were very competitive and very prudent. We had 9 competitors in on this occasion and we were very close to the 2nd runner-up R100 R1160 dollars were additional to avoid that confidence. CapEx wise, 15% to 18% We're seeing considering here the network benefit, EGP emission, It's a nationwide company capital mostly national.

We analyzed the technical capacity and the robustness of the company in all aspects. It's in transmission projects in the order of 250 at this point in terms of delivery dates. We have the optimization with a certain margin of safety and security here. We have 14 months as a deadline and we could go even further, but that sounded reasonable. Environmentally, we have the same thing in terms of the authorities and that work was considered.

We have the projects that are in portfolio that are already undergoing development and that will be in 1 year's time already in execution and the EPC holder lots foresee bonuses for the higher than purchased lots. And there is the other side that requires organization in terms of avoiding delays. It's located in 2 states that allows for this benefit. And we have the possibility to have presumed profit the model. We are going to work infrastructure and we have in support of Energizer, the Energizer Bank.

We have previous projects that were similar and the answer came before the auction. We had the building of the emission of the ventures for the transmitting companies, BRL260 1,000,000 in 7 to 10 years, 15% a year. And the lease effort was the basis for this. In this debt market, we are operating with rates that we expected better than expected back in April when we started talking this option. In terms of the leveraging of the group and this project, we are going to be around 3 folds.

The net debt, Slide number 5 now entered for commenting on data related to generation of energy, which is one step further. We have scalability. We have more assets that as is estimated by Capa $1,800,000,000 dollars and we are expecting $1,500,000,000 at November, 4,984 in terms of units of generation. And under the management of Energizer Solar Sewing Solutions, it's responsible for the transmission projects for all levels. This unit is present in 15 Brazilian states and it already serves great company, herbs.

Energizer Solutions, it already serves the state of the company, managing $900,000,000 CapEx, 5 0 6 kilometers of transmission lines, 5, 7 substations. And further, we have the optimization of O and M, because it comes from knowing the region rather well. We have slide number 7. We have more information further information on existing projects. Energy WAIs 41% of advancements and Para 38%.

And then just at Para 1, September October 2018, that's when it started. Nicolas, it started just after 1 year after the signature execution of the concession project and contract. And as yet, Rahung had a similar situation. Our licensing was supposed to happen in after 24 months and we were able to get it within 3 months. Energia Para 2, a lot purchased in June 2018, The concession contract was signed in September this year.

We have topographic studies and the analysis, operational analysis have been started and are undergoing. We have the studies undergoing and we started the project after 30 days of the concession contract will have the fiscal benefit of the network into the project and showing results by 30 days after the project. I think this is my top of the presentation. We open for Q and A. Now we'll start the Q and A session.

If there are any questions, please Please take your phone off the hook upon asking the question. Therefore, there will be better quality in the sound of the transmission. Please hold on while we collect the questions. We have a first question from Gabriel from Bradesco Asset. Please proceed.

Good morning, ladies and gentlemen. I had a question in terms of financing of the project. The lot has a small share in Bahia state. Therefore, are you eligible for BMDD financing? And if yes, the financing will take into consideration investment in the state of Bahia or Top 10 or not?

I'll pass on to Mr. Claudio Brendon that will handle your question. Pietro Brendon, this morning. This project has some flexibility in terms of financing Energiza has access to the capital markets. As we did yesterday in the event mentioned by Mr.

Morris, we have access to financing by the Northeastern Bank of Brazil Bank. FMO as well, we have access to financing of that. Hope we can present more details upon the hiring and contracts, it's important to turn that we have many options. Our next question comes from Ms. Carolina Carnejo for CACI Point.

Good morning, ladies and gentlemen. Thank you for this call conference call. EPC provider, you mentioned the EPG transmission. Please remind us who are the other EPC providers that you were working with the other transmission lines so that we understand why you have chosen this EPC provider. And in terms of the schedule, you mentioned 14 months of anticipation down to 14 months.

I would like to know how is the construction of the other lots that you are working with in terms of the planned scheduled for those, if you see possibility of anticipation in ongoing projects. I'll pass the floor to Mr. Gabriel. He'll handle their questions. Good morning, Carolina.

Providers wise, we have a good relationship with them. We have a good network. We have many projects. We have good options available in the market. But for a matter of price and risk allocation, we made a choice for the mentioned one and for the one that will help us with this one.

In terms of deadlines for the other projects, we have an estimate of an anticipation of by 1 year and the advancement in terms of risk has been very promising. Paraou has good levels of management in terms of the risk factors. We have been working at a very good rate during flat times. And now during the dry season, we are going to make even further advances. In order to ask questions, Once again, I remind Thank you.

I would like to pass the floor to Mr. Ricardo Borkelos for his final remarks. Please, Mr. Ricardo, you may proceed. Good morning, ladies and gentlemen.

We have taken a step further in terms of our transmission portfolio and we are strengthening that footprint and each additional project gives us benefits the benefit of scalability. In April 2017, we purchased different lots and with a certain of our decisions, we have a state of the art team that is surprising us what the projects already undergoing progress. And the rhythm is more tastefully than the others. We are consolidating the platform model of business that allows for a synergy in the assets. It sounds intangible right now.

But in the future, we will have that proven as possible. And our clients will be simply way more satisfied. Once again, I'd like to thank the trust of our shareholders and wishing you a Merry Christmas and a Happy New Year. Thank you. Thank you.

The teleconference by Energica is now adjourned. Please disconnect your lines now.

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