Sustainability Report ENEVA 2020 slide image

Sustainability Report ENEVA 2020

10.1 MACROECONOMIC SCENARIO National Gross Domestic Product (GDP) was R$7.4 trillion in 2020, a decrease of 4.1% compared to 2019, after three years of subsequent growth. The drop - the most significant of the annual series started in 1996 and measured by the Brazilian Institute of Geography and Statistics (IBGE) - was caused by the total or partial shutdown of several economic activities due to the Covid-19 pandemic. Brazil's official inflation, measured by the Extended National Consumer Price Index (IPCA), is expected to rise to 4.52% in 2020 (4.31% in 2019). In comparison with 2019, Brazilian exports and imports also dropped. The nominal exchange rate ended 2020 with depreciation of 28.93% from the previous period. The interest rate, measured by the Selic Rate, was 2% in the period. The average unemployment rate for the year was 13.5%, the highest since 2012, with about 13.4 million people looking for work in the country, according to data from IBGE's National Continuous Household Sample Survey (PNAD Contínua), also impacted by the Covid-19 pandemic. 10.2 ECONOMIC-FINANCIAL PERFORMANCE [GRI 103-1 | 103-2 | 103-3-201] Despite the scenario of economic contraction and reduced levels of thermal power plant dispatch, we generated net revenues of R$3.243 million, a growth of 3.4% compared to 2019. The lower dispatch of thermal power plants led to a decrease in operating costs, mainly fuel costs, which totaled R$1,745 million for the year. Operating expenses grew by 20% to R$449 million, due to the increase in the number of employees resulting from our growth strategy and various expenses related to the initiatives to prevent and combat Covid-19. As a result, our EBITDA totaled R$1,616 million, an increase of 8.2% over the previous year. Net income for the year grew 67.7%, in the same comparison, reaching R$1,007 million. ECONOMIC-FINANCIAL INDICATORS Net Operating Revenue 2019 2020 Change 3,137.4 3,243.3 3.4% EBITDA ICVM 527/12 1,456.7 1,598.9 9.8% EBITDA excluding dry wells' 1,493.7 1,616.9 8.2% - EBITDA Margin (excluding dry wells) 47.6% 49.9% 2.2 p.p. Net Result 600.8 1,007.6 67.7% Investments 1,056.2 2,272.4 115.1% Notes: Operating Cash Flow 1,413.6 1,292.0 -8.6% Net Debt (R$ Billion) 3.9 5.2 35.6% Net Debt/EBITDA2 2.7 3.3 23.5% The results are detailed in our 2020 Financial Statements, available on the Investor Relations website. https://bit.ly/3ydDloX 1 EBITDA calculated in accordance with the guidelines of ICVM 527/12 and the accompanying Note, adjusted to exclude the impact of dry wells. 2 Calculated considering the cumulative EBITDA as per the ICVM 527/12 guidelines for the last 12 months. ABOUT LETTER FROM ABOUT FIGHTING THIS REPORT MANAGEMENT ENEVA COVID-19 INTELLECTUAL & ORGANIZATIONAL CAPITAL SOCIAL & MANUFACTURED HUMAN NATURAL CAPITAL CAPITAL RELATIONSHIP CAPITAL CAPITAL FINANCIAL CAPITAL APPENDICES GRI CONTENT INDEX SASB CONTENT INDEX SUSTAINABILITY REPORT ENEVA 2020 PAGE 114
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