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CORPORATE
Corporate Presentation
PRESENTATION 1
DISCLAIMER
This presentation contains statements and information that are forward-looking, reflecting the Company's intentions, beliefs or current expectations. Forward-looking statements and information (i) involve all matters
that are not historical fact; (ii) are only predictions; (iii) are not guarantees of future performance; and (iv) are based upon or derive from information provided by third-party consultants or other sources. Forward-looking
statements can be identified by the use of words including “may”, “will”, “would”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “project”, “believe”, “seek”, “plan”, “predict”, “continue” and similar expressions or
their negatives. Forward-looking statements and information are subject to known and unknown risks, uncertainties, contingencies and assumptions and other factors that may not occur in the future and could cause the
Company's actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or
suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions, general economic conditions in the
applicable jurisdictions, and the Company's ability to respond to trends in its industry. Additional factors could cause actual results, performance or achievements to differ materially. Past performance is not a reliable
indicator of future results or performance, nor should be taken as an indication or guarantee of future results or performance, and no representation or warranty, express or implied, is made regarding the Company’s
future performance.
This presentation contains information about the markets in which the Company competes, including market growth, market size and information on the Company's competitive position. This information has not been
verified by independent experts or assembled collectively and is subject to change, and there is no guarantee that the information contained in this presentation is accurate or complete and not misleading nor that the
Company's definition of its markets is accurate or complete and not misleading.
This presentation contains non-accounting financial measures that are not measures of financial performance calculated in accordance with IFRS and should not be considered replacements or alternatives to net income
or loss, cash flow from operations or other IFRS measures of operating performance or liquidity. Non-accounting financial measures should be viewed in addition to, and not as a substitute for, analysis of the Company’s
results reported in accordance with IFRS. The Company presents non-accounting financial measures when it believes such information is useful and significant for the investors. The non-accounting financial measures are
provided to assist investors in their general understanding of the Company’s financial performance and its future prospects. Such measures might differ from the non-accounting financial measures utilized by other
companies. The non-accounting financial measures should be taken as additional information and not as substitute for the analysis of the Company’s financial performance reported in accordance with IFRS. The non-
accounting financial measures are limited, as they do not reflect all the values related to the Company’s operational results reported in accordance with IFRS.
2
Corporate Presentation
1 ABOUT US
2 FREE ENERGY MARKET
3 FINANCIAL
PERFORMANCE
4 BUSINESS SEGMENTS
1. About Us
About Us
COMERCIALIZADORA AND INTELIGÊNCIA GERAÇÃO GERAÇÃO DISTRIBUÍDA
+
Diversified client portfolio and focus on structuring short, Structuring of greenfield or brownfield generation Development of energy generation projects
medium and long-term transactions in the Free Market projects, to make feasible investments in (local or remote) to serve clients in the
renewable energy assets Regulated Market
Significant portion of results from Pipeline of projects with installed Compensation through discounts in the
long term transactions capacity of +3.0 GW consumption bill from local energy
distributors
Futura 1 & 2:
Robust risk management, with low exposure
Largest solar energy complex in Brazil,
and consistent results Focus on servicing low tension
with ~1,4GW of installed capacity
clients, who currently do not have
Energy service provider for large access to the Free Market
generators and consumers in the Free
Market
3 Installed Capacity:
Projects 3.0 GW
Market Intelligence with
tailor made solution
3 Marketplace for retail clients
States 2 2
Active management of energy
Operational + Projects:
(SME) with multiple organic
balances Assets: growth opportunities across
HPP
CGH SHPP Brazil.
Installed Capacity:
78 MW
5
Corporate Presentation
Seasoned management with extensive experience in the market...
Alan Zelazo, CEO Eduardo Cruz, Business Development VP
BA in Business Management from PUC-RJ with post-graduate studies in Finance from
BA in Business Management from ESPM-SP with a specialization in New Businesses and
UFRJ and Marketing from IAG Marketing – PUC-RJ, Mr. Zelazo has over 19 years of
Entrepreneurship from FGV-SP, Mr. Cruz has an extensive experience as executive and
experience in the energy sector. In 2015, he founded Grupo Focus, economic group
partner in companies such as Bravo Açaí and PFG Franquias, with more than 15 years of
specialized in energy commercialization and generation. Previously, Mr. Zelazo was a
experience in financial and operational structuring of projects and M&A, having also
partner at Banco BTG Pactual, acting as Head of Sales, Trading and Services of the
actively participated in the sale of assets to investors. Since October 2020, Mr. Cruz is the
energy desk. He also worked in energy strategy and trade areas of companies such as
Business Development VP and member of the Board of Directors of Focus Energia.
El Paso Energy and EDP. Since October 2020, Mr. Zelazo is the CEO,
Commercialization VP and member of the Board of Directors of Focus Energia.
Carlos Baccan, Sales VP
BA in Business Management from FACAMP with MBA from FIA and Masters in Water and
Energy Resources Planning from Faculdade de Engenharia Civil/UNICAMP, With over 12
Alexandre Mafra , CFO years of experience in the energy market, Mr. Baccan worked in several positions of the
Free Energy Market commercial chain. Between 2009 and 2015, he worked at CPFL Energia,
Mr. Alexandre Mafra is Graduated in Electrical Engineering at Universidade Federal
where he was part of the trading analysts team, and reached the position of Manager at the
de Minas Gerais (UFMG) and post-graduated in Business Finance at Fundação Getúlio
energy trading desk, one of the largest in the country. From 2015 to 2017, Mr. Baccan led
Vargas (FGV), with extension courses at INSEAD and at Harvard University, Mr.
the trading team of the 2W Energia. In 2017 he became a partner of Focus Group, where he
Alexandre Mafra started his career at Ambev, where he worked for 13 years and
is currently responsible for the purchase and sale of energy at the trading desk. Since
assumed several executive positions. Mr. Mafra also served as CFO and Human
October, 2020, Mr. Baccan is a member of the Board of Directors of Focus Energia.
Resources Director of Totvs, as CEO of São Miguel, holding of 3 Corações, where he
Henrique Casotti, Risk VP
also assumed the position of Director, and, in recent years, has served as Managing
Director and CFO of the private equity area of Pátria Investimentos and as a member BA in Electric Engineering from UFMG and post-graduate studies in Finance and Controller
of the Board of Directors of Lavoro Agro, Athena Saúde, Alphaville Urbanismo and from IBMEC. Mr. Casotti has 12 years of experience, having acted as Director of Research,
Tenco Shoppings Center. Since May 01, 2021, Mr. Alexandre Mafra is CFO and Risk and Regulation at Clime Trading, now 2W Energia. Between 2012 and 2015, he was
Investor Relations Officer of Focus Energia. energy consultant at Votorantim Energia and, between 2010 and 2012, senior analyst at the
energy area of USIMINAS. Since October 2020, Mr. Casotti is the Regulation and Risk VP of
Focus Energia. 6
Corporate Presentation
Diverse and experienced Board of Directors
Alan Zelazo Eduardo Cruz Carlos Baccan
Management
Eduardo Wurzmann | Chairman Rubens Brandt
Economics – USP | MBA - University of Illinois | Henry Crown Fellow - Aspen Institute Mechatronics engineering- USP | MBA - Dom Cabral
Has over 30 years of experience in large institutions in Brazil, with passages in the textile industry in companies such as Has more than 25 years of experience in the energy sector, having held technical and executive positions in international companies such as ABB and
Pancostura Indústria de Máquinas, in the education sector, at Unext do Brasil, accounting services for individuals, at H&R Alstom, in Brazil, France and Sweden. He was a member of the Board of Directors of Enex O&M de Sistemas Elétricos Ltda., Altus Sistemas de
Block Brazil, and investment banks, such as Banco de Investimentos Garantia. Between 2000 and 2011, was CEO of Grupo Automação S.A. and as effective member of the Board of Renova Energia S.A in 2010 and alternate member in the following years until 2013.
Ibmec Educacional, and national Manager of H&R Block Brazil until 2014. Currently, he is Chairman of the Board of Through Grupo Energia, is one of the shareholders of Futura Holding, developer of Projects Futura 1 and 2, and of Ápia Projetos de Energia Eólica
Directors of Locamerica S.A., member of the Board of Mills Engenharia S.A., Yduqs Participações S.A., Alper Consultoria e Fotovoltaica e EmpreendimentosImobiliários Ltda., developer of ProjectFutura 3/Ápia.
Seguros S.A., Hospital Israelita Albert Einstein, Descomplica and Rede Alumni. He is also member of the Consulting Board of
Hinode, general secretary of Confederação Israelita do Brasil, member of the Board of Governors of University of Tel Aviv
and memberof the Fiscal Committeeof Unibes Cultural.
Dario Albagli | Independent Member
Business Management – USP | MBA Finance - IBMEC | Masters - International Management for
Executives - American School of International Management Committees supporting the
Holds an extensive experience in the energy sector. Between 1996 and 2017, was Energy Director and Executive Director of Board of Directors
Energy and Governmental Matters at Alcoa Alumínio S.A., with a passage at Alcoa Europe. He was a member of the Board of
Directors of ABRACE, ABIAPE, of the Consortium Estreito, SEFAC, Maesa and ABAL, and Chairman of the Board of Directors of • Investment and Financial
BAESA and Director of Instituto Alcoa. Acted as Regulations and Expansion Director at S.A. In October 2017, he founded Fator • Project Implementation
Energy,whereheservesasCEO.
• Audit
• People & Management
7
Corporate Presentation
… sucessfully building an integrated energy platform
80
2015/2016 2017 2018 2019 2020 2021
Start of the energy Acquisition of the two first Structuring of the largest Focus Energia consolidates Corporate Reorganization, Initial Public Offering (IPO)
commercialization generation assets: CGH Ilhéus transaction at the MCSD1 its position as one of the with Focus Energia
operation and CGH Lavras largest players in the becoming the holding
Strengthening of the renewable energy market
Structuring of the risk Negotiation of the longest PPA Corporate Governance:
company of Focus Group
management area tenure held by an independent constitution of the Board of Structuring of Focus+
trader (18 years) Directors Distributed Generation Launch of the energy
marketplace
Acquisition of CGH
Camanducaia
Nominated as the Best
Energy Company in 2018 &
2019 by
¹ Compensation Mechanism for Surpluses and Deficits
8
Corporate Presentation
2. Free Energy Market
9
Corporate Presentation
Energy Market and Scenario
Average PLD Evolution (R$/MWh) and ANE¹ (%LTA²) – Southeast/Mid-West Storage Evolution – Southeast/Mid-West
R$/MWh and %LTA (%)
503 55%55%
53%
200 %
51%
48%
500
317 327 337 180 %
274 289 267 243 45%
237 220 227 219
300
186 154 166
160 %
42%
82 115 89 85 101 109 133 39% 40%
100
40 72 140 %
35%35%
33% 32%
105%103%
120 %
31% 30%
-100
29%
86% 87% 25%
100 %
80% 82% 80% 77% 79% 85% 75% 22% 24% 23%
74% 70% 73%
19%20%
70% 66% 63% 63% 66% 18%19%
-300 80%
59% 63% 60% 63%
53% 60%
-500
40%
-700
20%
-900 0%
Jun-…
Mar-…
Sep-…
Dec-…
Dec-…
Nov-…
Aug-…
Jan-…
Feb-…
Apr-…
May-…
Aug-…
Oct-…
Nov-…
May-…
jun/20
jul/19
jul/20
aug/19
feb/20
may/20
mar/20
aug/20
feb/21
may/21
mar/21
jun/21
sep/19
nov/19
sep/20
nov/20
oct/19
jan/20
oct/20
jan/21
dec/19
apr/20
dec/20
apr/21
Sep-19
Jul-19
Jan-21
Feb-21
Apr-21
Jun-21
Mar-21
Oct-19
Jul-20
ANE Avg. PLD
Source: CCEE, ONS³ Source: ONS³
✓ Southeast/Mid-West reservoirs, a region that accounts for approximately
✓ 2Q21: Average PLD of R$230/MWh (vs. R$ 76/MWh 2Q20)
70% of the system's storage, ended June with only 29% of its capacity.
¹ Afluent Natural Energy
² Long-Term Average 10
Corporate Presentation ³ National System OperatorEnergy Market and Scenario
Market Pricing for 2021 – Southeast/Mid-West Market Pricing for 2022 & 2023 - Southeast/Mid-West
R$/MWh R$/MWh
650
Conventional
550 552
400 360
350
450 460 300 247
R$/MWh
250
R$/MWh
337 200
350
150
100
250 215
50
Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
133
150 2022
Incentive Source Swap 50%
2023
50
60 57
Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
55
apr/21 may/21 jun/21 3Q21 4Q21 50 46
45
R$/MWh
40
35
The uncertainties of the humid period throughout 1Q21, brought more volatility 30
to the prices of short-term energy contracts, increasing the prices of energy 25
contracts during 2Q21, which continue to grow in the coming months of the year. 20
Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
¹Market pricing projected by the Company
11
Corporate PresentationEnergy Market and Scenario
GSF¹ Evolution
(%)
180%
160%
70%
140% Annual avg. ▪ The current condition of the System
120%
111.5% 118.9% indicates the possibility of a lower GSF
111.2%
level in the coming months compared
100% to the levels observed in recent years.
87.1%
70.1%
80% ▪ As observed in May, the red tariff flag is
67.3% 65.3% 64.3% expected to be maintained during the
60%
48.0% 45.6% 45.4% 52.6% next months of 2021.
40%
20%
0%
Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21
2021 - Verified 2021 - Market 2019 2020
Source: CCEE, Company projections
¹ Generation Scaling Factor
12
Corporate Presentation3. FINANCIAL
PERFORMANCE
13
Corporate PresentationConsolidated Financial Performance
✓ R$ 40.4 million added to the energy forward contracts
R$ MM ∆2Q21/ ∆2Q21/ Gross Profit and Gross Margin
2Q21 2Q20 1Q21
(except in %) 2Q20 1Q21 R$MM & %
Energy Traded (GWh) 1,624 1,636 (0.7%) 1,361 19.4% 60.0 25.0%
12.7% 12.1% 20.0%
Net Operational Revenue (1) 312.6 265.7 17.7% 248.8 25.7% 7.8% 15.0%
6.4%
40.0 3.0% 10.0%
Gross Profit Before MTM (2) 21.8 2.7 721.3% 28.3 (23.0%) 5.0%
0.0%
Commercial Margin (2/1) 7.0% 1.0% 6.0 p.p. 11.4% -4.4 p.p. -5.0%
20.0 37.9 -10.0%
31.5
MTM Result¹ 16.1 18.0 (10.3%) 3.2 402.0% 20.6 -15.0%
16.4 11.6 -20.0%
Gross Profit (3) 37.9 20.6 83.9% 31.5 20.3% - -25.0%
2Q20 3Q20 4Q20 1Q21 2Q21
Gross Margin (3/1) 12.1% 7.8% 4.4 p.p. 12.7% -0.5 p.p.
Gross Margin
Value added to the energy forward contracts
2Q21 vs. 1Q21
MTM Breakdown¹ R$ MM
R$ MM 2Q21 2S21 2022 2023 2024 a 2035 Total
1Q21 24,2 39,0 42,3 27,1 171,4 304,0
2Q21 0,0 52,4 49,2 41,0 177,6 320,1
∆2Q21/1Q21 (24,2) 13,4 6,8 13,9 6,3 16,1
14
Corporate Presentation
¹ The MTM result is obtained through the variation of the mark to market balance of energy forward contracts in the reference period versus the mark to market balance of contracts in the previous period.Consolidated Financial Performance
Energy Sold EBITDA and EBITDA Margin
GWh R$ MM & %
2,50 0
50.0 20.0%
15.0%
8.5% 8.5%
2,00 0
40.0
5.6% 10.0%
1,875
0.6%
5.0%
30.0
1,50 0
1,636 1,624 0.0%
1,425 26.7
1,361 20.0
-0.4% -5.0%
1,00 0
21.1
-10.0%
14.9
10.0
-15.0%
500
1.6 -20.0%
0.0
-1.4 -25.0%
-
-10.0 -30.0%
2Q20 3Q20 4Q20 1Q21 2Q21
2Q20 3Q20 4Q20 1Q21 2Q21
EBITDA Margin
15
Corporate Presentation4. Business Segments
16
Corporate PresentationFutura Project
Updates
Futura 1 – Under construction
Main characteristics
✓ Publication of installation License (“LI) for the 500kV Transmission Line in the Official Gazette
Installed Capacity: 671.0 MW of the State of Bahia on June 30th;
COD (est.) : Apr/2022 ✓ Signing the Transmission System Use Agreements (“CUST”) by the ONS and Transmission
Capex¹ (est.): R$ 2.74 billion (100% contracted) Facilities Connection Agreement (“CCT”) by Chesf;
✓ Contracting 100% of the FX hedge for the Project;;
Generation capacity (P50): 231 MWm
✓ Protocol of Intent signed on July 13, 2021 – Donating R$ 4.0 million to the health area of the
Average PPA term: 16 years
municipality of Juazeiro;
Installation License: Issued ✓ Signing financing contracts with Banco do Nordeste do Brasil S.A. (“BNB”) totaling 450 million;
✓ Manufacturing the 1st step-up transformer coils completed in July;
✓ Replacement of Photovoltaic Module Manufacturer Supplier – TRINA, as announced in a
Material Fact on July 20th;
✓ First batch of inverters shipped (China) on July 23rd; and
✓ First stake placed on August 4th;
17
Corporate PresentationFutura 1 Project - Schedule
Trackers Assembly
Pull-out
Test ✓ Start of Vegetal
Supression ✓ Anticipation of the PV ✓
Start of cold commissioning
Delivery of the 1st elevator transformer
modules delivery
Feb/21 May/21 Jul/21 Sep/21 Oct/21 Feb/22 Apr/22
Mar/21 Apr/21 Aug/21 Dec/21
Energization of the
EPC operator
Start of
Civil works ✓ Start of
trackers delivery ✓ Start of inverters’ delivery
1st Solar Park
and assembly
Mobilization/
Executive ✓ Delivery of the 2nd
Project elevator transformer
Start of the construction of transmission
line and electric substation 18
Corporate PresentationFutura 1 Project
Construction of the pioneer site
Origin of the workforce¹
22%
619
Workers
78%
State of Bahia
Vegetal Suppression
Advancement of vegetal suppression
32%
of total UFVs
19
Corporate Presentation
¹ As of July 30,2021Futura Project 1
Equipments¹
Trackers - SOLTEC Inverters – SUNGROW Photovoltaic Modules - TRINA Elevator Transformers -GE/PROLEC
➢ First stake placed on August 4th; ➢ First shipment (China) held on ➢ First shipment (China) held on ➢ Site delivery confirmed for
July 23 and expected to arrive August 13 and expected to December 2021
in Brazil on September 1 arrive in Brazil on September
19
20
Corporate Presentation
¹Real photosProject Futura 1 contracting level
Contracting Level PPAs avg. Price & Market
104.2 74.5 16.0 82.1 350
346
7.2%
33.0% 260
37.8%
20.0% 198
95.4%
92.8% 167 156
62.2%
47.0%
4.6%
2022 2023 2024-2027 2028-2042 2022 2023 2024-2027 2038-2042
PPA LT Contracted PPA ST Contracted
LT & ST avg. price Current Market Prices for an uncontracted tranche
Uncontracted Uncontracted volume (MWm)
21
Corporate PresentationAddress Av. Magalhães de Castro, 4800 Continental Tower, suite 91 Cidade Jardim | São Paulo-SP IR Contact ri@focusenergia.com.br +55 11 3557-9333 ri.focusenergia.com.br/en
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