Who we are
Transmission
Digital transformation
What to expect from Equatorial
Piauí and Alagoas
Who we are
Who weare
A successful
platform for utility
investments22%
% National territory
DISTRIBUTION
Maranhão
Pará
Piauí
Alagoas
TRANSMISSION OTHERS
Geramar
55 Soluções
Sol Energias
* 2Q19 Information (12 months)
1,161
3,968
7,5352,593
11,473
21,797*
2004 2012 2019
Custumers Billed volume (GWh)
SPVs
Intesa
6%
Contract
9%
Number ofcustumers
Until 2016 After 2021
Revenues (R$ MM)
Km of Grid3.281
1.087
Piauí and Alagoas will have their Tariff Reviews in Dec/19 and May/20, respectively
NumbersEQUATORIAL IN
Net Regulatory Base(R$ MM)
8251.121
2.069
3.309
2017201320092005
1.472
3.090
5.047
201920152011
Transmission
RevenuesTotal and operational(R$mn)
CEMAR CELPA
Cash/ ST Debt
2,2 x
Leverage(ND / 12m EBITDA)
3,6 x
1.081
Jun/19
168
Net Debt
9,9 bn
Achievements2018-2019
Transmission100%Long term funding
secured
Tax Incentive
10 of 11 Companies
Aquisition of Piauí,
Alagoas e Intesa (49%)
Greenfield construction
started
Maranhão and
ParáOn the GPTW rank
Maranhão and
Pará
Between the best on the
continuity rank
DifferentWHAT MAKES US
meritocracy People who take on challenges,
do their best and get rewarded
for results.
results We are oriented to get results,
set and achieve challenging goals
personnel The greatest asset of the
company is Competent
People, Engaged and Working
as a Team
leadership Inspirational,
responsible leadership
that takes on its role
High performance
culture
Management model
Financial Discipline
Operational efficiency
Turnaround model
Dividend history(R$ MM) Celpa’s Acquisition and turnaround
start point
0
100
200
300
400
500
600
700
800
900
1,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Payout 95% 27% 26% 26% 25% 25%106% 26% 100% 33% 25%90% 25%
M&A preparation Investments in transmission,
Piauí and Alagoas
Parcel A mismatch and credit crunch in Brazil
4.6%5.6%
8.5%9.5%
8.5%8.0%
7.5%7.0% 6.6%
6.0% 5.6%5.0%
Regulatory Wacc
7
13
7
13
7
29
20 2124 23
35
26 2624 24
35
11
20
13
0 0 0 0 0 1 02 1
3
1012
17
10
3 4
0 0 0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016.1 2016.2 2017.1 2017.2 2018.1 2018.2
39% 38% 43% 40%55% 13% 24% 40% 28% 26% 22% 12% 12% 3% 12% 36% ¹50% 55% 46%Discount over max
revenue
Equatorial studies but
doesn’t participate
Equatorial wins
8 lots
# of lots
# of empty lots
Dvidend Adj. Net revenues
Auction history
DifferentWHAT MAKES US
Management model
Financial Discipline
Operational efficiency
Turnaround model
PMSO Outperformance
126 129 126 139 171
245 291
321 367 346
397 436 415 437
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
656
535
450 473434
497 492
2012 2013 2014 2015 2016 2017 2018
CEMAR CELPA
DifferentWHAT MAKES US
Manageable
ExpensesManageable
Expenses
Regulatory
Expenses
Regulatory
Expenses
Management model
Financial Discipline
Operational efficiency
Turnaround model
turnaroundMODEL
DifferentWHAT MAKES US
Implementation of the new corporate culture
Regulation as a key element of strategy
Raise support to all stakeholders
Human Capital(attraction, retention, training and meritocracy)
Reinvention
Organic Growth
Continuous pursuit of productivity and operational excellence
Continuity
Optimize capital structure
Investment for reinforcement and modernization of the grid
Simplify organizational structure and optimize processes (strict cost control, collection and loss reduction)
Restructuring
Management model
Financial Discipline
Operational efficiency
Turnaround model
784 757
85189
341 379 416 470 512 505 559
368287
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
681
1.0601.176
1.445
1.817
1.858
Value Generation
CEMAR
Acquisition
IPO EQTL
Sell of Light
Shares
Acquisition of ¼
of Geramar
Light acquisition of
shared control
CELPA
Acquisitioin
2016/17: Acquisition of 8
Transmission projects
+
51% of Intesa
Acquisition of
Ceal, Cepisa
and 49% da
Intesa
5.1Mar 31,2006
On long term through the turnaround of the
operations and efficient Capital Allocation
ADTV30: R$ 133 million
EBITDA CAGR
(2004-2018):
+24,6%
EBITDA EQTL EBITDA Light Share price
99,02Sep 11, 2019
new structure
EQUATORIAL’s
CEO
President
Director
Superintendent
Corporativemanager
Organization of corporate functions to boost the Group's growth.
HIERARCHY
LEVELS
CEO
AdministrationCouncil
Transmission DistributionPresident’s ofthe distributors
Regulatorystrategy and
New Business
Services
Internal Audit
Legal & compliance
Investor Relations
Finance People Shared Services
Reinforced areas:
M&A Shared servicesDigital (Customers)
new architectureOf the group’s image
A Equatorial brand strengthening
and repositioning in the
distribution segment, which will
have the same identity as
Equatorial
Transmission TradingServices GenerationDistribution
Equatorial Maranhão ( EQTL MA)
Equatorial Pará ( EQTL PA)
Equatorial Piauí ( EQTL PI)
Equatorial Alagoas (EQTL AL)
New IRNew delivery
✓ Market interaction increase (internal and external)
✓ Reformulation of material
✓ Data sheet sharing
✓ Team reinforcement
✓ New IR Site
CompanyGrowth
New segments
Increase in IR service
complexity
Investor’s
interaction
Perception
Study
Feedback Investors
Day
II Ranking
New Environment
New demands
IR
turnarounds Equatorial Alagoas and
Piauí
PMSO / consumer (R$, 2018)
Piauí AlagoasPiauí + Alagoas Maranhão
1,227 1,157 2,384
91,765 47,788 139,553
3,610 3,546 7,156
28% 25% 17% -
419 360 779 608
2,359
123,033
6,203
Consumers (in thousand)
Grid (Km)
Contract (GWh)
Losses
Regulatory PMSO (R$ Mn)
Alagoas AND
EQUATORIAL
NEW TURNAROUNDS
Piauí
Maranhão Piauí Alagoas COELCE
175325 300
165
Tax Incentive
PA MA
PIAL
100daysPLANPIAUÍ AND ALAGOAS
2.719
Plan’s total actions
Total evolution
97,0%
24/06/2018Pre-Possession
Actions
18/10/2018 Post PossessionActions
Begining
2.033 91,9%
25/12/2018 Pre-PossessionActions
18/03/2019 Post PossessionActions
Piauí
Alagoas
Main topics covered in the 100-day Plan
PeopleInstitutionalimage
Contractrevision
Systems andprocesses
Regulatorymanagement
Funding and debtmanagement
Operationalefficiency
31.8
19.3
Alagoas Piauí Contract negotiation
Notice to the market. Single
Vendor Selection
100% contract
renegotiation
Anchor contract
In addition to the anchor contracts we
managed to save R$ 53,8 Mn in both
companies
By hiring Anchor Companies for field services we doubled the field workforce (896 vs 431 teams) with savings of $ 21.6 million for the operations of
Piauí and Alagoas
CONTRACT REVISION
197
367
234
529
30.7
21.5
- 64%Cost (R$
Mn)
Before After Before After
- 42%
86%
Before After Before After
126%# of teams
Anchor
contracts
# of teams
Cost (R$
Mn)
Piauí and Alagoas
processingSYSTEMS AND
Call Center Migration to 55 Solutions
Implementation of systems
ERP (AL)
Charging system
Georeferencing System
HR system
Field Billing and Reading System
Phoning system(PI)
Security system(PI)
Reversal of Convictions (R$ 75 MM)
Establishment of weekly follow-ups
Process Restructuring
New equipments and instalations
Real time monitoring
Piauí Alagoas
Delivery
Approach with the Press / Society
Visits to Strategic Publics (Government, Business, Justice and Press)
Brand Strengthening
Emergency plans for special dates (elections, carnival, new year ...)
Lamps and Refrigerators Exchange
Negotiations and field actions
Piauí and Alagoas
instituB r a n d S t r e n g t h e n i n g
tional
Piauí
67 6480
41
81
126
5456
67
54
20 20
Janeiro Fevereiro Março Abril Maio Junho
Good News x Bad News
Positivas Negativas
60 54 49
127159
39 38
52
Abril Maio Junho julho
Good News x Bad News
Alagoas
Positivas Negativas
Piauí and Alagoas
institutional
B r a n d S t r e n g t h e n i n g
Approach with the Press / Society
Visits to Strategic Publics (Government, Business, Justice and Press)
Brand Strengthening
Emergency plans for special dates (elections, carnival, new year ...)
Lamps and Refrigerators Exchange
Negotiations and field actions
Brand
Strengthening
AlagoasPiauíP I A U Í A N D A L A G O A S
Med ias Elevators
Radio
Magazines
LRV’s Doors
Backbus
Paper Ads
TV
Outdoors
Social Networks
Thermovision, maintenance and retrofit Line intervention
002 C882664 A P2 001 DESP LV
REG.003 REG.004
Evidência da Execução
Fase(s)
Registro do cenário antes Registro do cenário depois
ITEM Insp Quantid. Classe EquipeCÓDIGO Serviço realizado Informação adicional Nº Poste Prioridade
CN11 Substituir conexão paralelo para
cunha.Em_N1XN3_4/0.CAA
Tree pruning / component maintenance / loop automation mapping
HIGH, MEDIUM AND
LOW VOLTAGE
Thorough and
thermographic inspection,
Preventive and
Corrective Maintenance
in feeders and network.
SUBSTATIONS AND
SUBTRANSMISSION LINES
Thorough and thermographic
inspection, Preventive and
Corrective Maintenance:
Piauí
38 lines
90 substations
Alagoas
87 lines
32 subsations
M A I N T E N A N C E O F T H E
high, medium and low voltage
E Q U A T O R I A L P I A U Í Technical operational efficiency
P I A U Í A N D A L A G O A SCommercial and operational efficiency
289
307
# of Customers with Social Rate (Low Income)Largest Increase of Low Income Registrations at Equatorial base, with an increase potential of
over 207 thousand
Nº de
Clientes
2018
(Mil)162
269
mai/19 AtualAtual
PI AL
Crescimento
de 58,75% da
Base
Crescimento
de 16,2% da
Base
R$ 29 MM / year more subsidies for the Equatorial Group
Government AgreementFor low income registration
Client monitoringsoftwares and field trip
Non read clientes reductionPiauí and Alagoas
High and Low Voltage
regularization
Public Iluminationre-registration
Piauí and Alagoas
operaR E S U LT S
tional
Piauí
1,85 pp
98,7100,6
jan a jul de 2018 jan a jul de 2019
IAR
Alagoas
97,7101,8
jan a jul de 2018 jan a jul de 2019
4,11 pp
IAR
28,527,8
1º TRI 2º TRI
Energy
losses
DEC FEC
9.75.8
1º tri 2º tri
4.22.5
1º tri 2º tri
-40,2% -40,5%
DEC FEC
12,67,1
1º tri 2º tri
3,83,0
1º tri 2º tri
-43,7% -21,1%
1S18 1S19
1S18 1S19
1Q 2Q 1Q 2Q
1Q 2Q 1Q 2Q
Piauí
539
136
1S18 1S19
Adj. PMSO
-110
65
1S18 1S19
Adj. EBITDA
1S19
-75%
Alagoas
Adj. EBITDA Adj. PMSO
-122
59
1S18 1S19
110
76
1S18 1S19
2Q19
financialRESULTS
-31%
2Q18
2Q192Q18
TransmissionEvolution
ConstructionSPEs (%)
86
78
113
205
95
117
99
138
RevenueANEELdate
feb/22
feb/22
feb/22
feb/22
feb/22
feb/22
feb/22
jul/22
works
32
71.6
34.1
0
10.3
23.7
5.6
52.4
58.4
TOTAL
SPE 8
SPE 7
SPE 6
SPE 5
SPE 4
SPE 3
SPE 2
SPE 1
931
funding Source Secured Disbursed %
SPV 1 Banco do Nordeste 343 288
Debentures 55 55
Total 398 343 86%
SPV 2 Banco do Nordeste 353 150
Debentures 45 45
Total 398 195 49%
SPV 3 Banco do Nordeste 425 179
Debentures 90 90
Total 515 269 52%
SPV 4 BNDES 822 490 60%
SPV 5 Banco do Nordeste 356 79
Debentures 66 66
Total 422 145 34%
SPV 6 BNDES 419 40 10%
SPV 7 FDA 293 -
Debentures 130 130
Total 423 130 31%
SPE 8 FDA 495 -
Debentures 189 189
Total 684 189 28%
Total Equatorial Transmissão 4.081 1.801 44%
100%Secured
44%Obtained
Mediun leverage
80%
TransmissionOperations Center
transmission
U P D A T E SThe operations center can operate twice as many operating points as current assets
IN OPERATION IN CONSTRUCTION
SynchronousCondenser(SPE 08)Comercial Operation:
June 2019.
RAP: R$ 18 mm
SPV 08 was the last lot
acquired by Equatorial and
the first to enter into partial
commercial operation
Digital Transformation
In four months:
V I R T U A L
A S S I S TA N T
Clara is the first initiative of its nature in
the electricity sector. It is already able to
offer the services of
2 via, Payment Code, Debt Inquiry,
Reporting Power Failure and
Reconnection via WhatsApp
These are the most sought after
services in our service channels.
More than 65,000
customers have talked
to Clara
Over 15,000 orders
have been fulfilled
Unproductive calls
reduction:
Compared to other
channels, Clara is 60%
more effective in
combating unproductive
CLARA
26 67 80197
339
264
443
523
1310
1777
Abril Maio Junho Julho Agosto
Generatedservices
Call Center(month)
Clara(month)
110.000 2.400
Service time
URA + employee
(min)
Clara(min)
4,2 4,0
Cost per call
Call Center Clara
R$ 1,92 R$ 0,52
numbersCLARA IN
sLack of energyopening
Clients calling the Call Center
Number of clientes using Clara
84%Call Retention Average for Call Center
Reduction on calls to Call
Center till 2020
Cost reduction (in R$
mN)
projectGOALS
je
12%
4,3MM
IDEASN E W
Digital and
Innovation
Management
Business
areas
New
technologies
Group needs
Market
Electric
Sector
ANEEL
New
Business
Communication
Innovation can come
from anywhere
We always encouraged innovation,
but our initiatives were scattered
across our different departments.
Digital and Innovation
Management was created to
oversee, better communicate and
direct these initiatives to the latent
needs of the Group, with a view to
macro, not just micro.
R&D PROJECTS
IN PROGRESS39
DRONES AND MACHINE LEARNING
Machine Learning application
for management of mutual
use Telecom and IP in the
power distribution network.
Application of Machine Learning
techniques for Network Inspection and
Distribution elements up to 138KV.
AUGMENTED REALITY
Electrical System
Maintenance and Operation
Support System using
Augmented Reality and
biometric monitoring.
SMART SENSORS
Dynamic Monitoring of
EPI's / EPC's Use in the
Field Using Biometrics
Techniques.
INTERNET OF GRIDS
Internet of Grids - IoG: The
Internet of Things concept
applied to the electrical
distribution system
BIG DATA FORECASTING
Computational intelligence to
identify consumers'
predisposition to prosecution.
A.I.
Auto-read power
consumption with periodic
self-audit based on image
processing.
Distribution Transformer Tracking System
Using Electronic Label and Communication
Network Based on LORA Technology
The Equatorial Group has already
begun its path to Digital
Transformation by reviewing how
to see and seize opportunities
MIND
C H A N G E
SET
RPA projectsROBOTIC PROCESS AUTOMATION
Project goals:
Mappedprocesses
Automatizedprocesses:
12
RESULTS
Earlier cash inflow
Increase in productivity
Time reduction
Informationsecurity
Customersatisfaction
Cost reduction goal
25
R$ 2,8MM
jurídicoTRANSFORMAÇÃO DO 4.0Legal
AUTOMATIZATION
Information extraction directly from databases, automatic
data crossing, scheduled update and SQL queries
BUSINESS INTELLIGENCE
Data collection, organization, analysis, action and monitoring to
make better decisions in the process management and
contingency use.
LEGAL INFORMATION
Data centralization, workflow standardization, providing fast processing of demands
DATA SCIENCE
Use of scientific methods, processes, algorithms and systems to extract knowledge and insights from databases.
MACHINE LEARNING
Implementation of artificial intelligence techniques to find patterns in consumers, with analysis of business and legal data.
LegalTRANSFORMATION
Economy with third party
services for legal routinesR$ 2mn/yr
Contingency gains Partial scenario only:
R$ 1mn/yr
Reports
automatization
IA for prediction of
judicial actions
Contingency gainsparcial gains:
R$ 1mn/yr
BI and Jurimetry
Assertiveness gains
Quality
What to expectfrom Equatorial
Strategical themes
Long term ambitions
per segment
Strategic goals
Quality
indicators
StrategicalPlan
V I S I O NFUTURE
Sectoral
attractiveness
Targets M&A
Valuation
Funding and
debt
assumptions
Capital allocationmatrix
Segment sizeResults
Stock price
Thank you