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Page 1: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

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INSTITUTIONAL

Page 2: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

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Rio Energy is a developing, constructing, and operating power generation platform in Brazil.

With over three billion reais invested, the company currently owns a portfolio of 629MW of

assets under or near construction and operation and an additional 2GW of development

pipeline.

Our investors are a group of large institutional investors across the globe, led by Denham

Capital, a private equity fund with extensive experience in the energy market.

WHO WE ARE

Page 3: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

Development, Construction & OperationRio Energy is a developed platform with compentencies in every phase of the investment cycle:

• Project screening and acquisition

• Pre-PPA development and optimization

• Auction strategy and commercialization

• Project finance, legal, engineering

• Construction

• Operation and maintenance

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Page 4: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

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SUPPORTIVE INVESTORS COMMITTED TO

GROWTH

TEAM WITH EXECUTION CAPABILITIES

EXPERTISE IN PROJECT FINANCE AND

ACCESS TO CAPITAL MARKETS

TRACK RECORD OF QUALITY, ON-TIME ON-

BUDGET DELIVERY

PILLARS OF RIO ENERGY

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Page 5: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

YOUTH - EXPERIENCE - DIVERSITY

T E A M T H A T C O M B I N E S

Our team has 12GW of combined experienceacross hydro, wind, solar and thermal projects.51% Women

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Page 6: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

Administration

• Design and management of

international and local corporate

structure

• Cash flow management

• Accounting

• Fiscal compliance

Environmental Licensing

• Environmental/social studies

• Planning, execution, and

monitoring of programs

Regulation and Commercialization

• Market analysis

• Energy hedge and

commercialization

Engineering

• Connection studies

• Feasibility studies

• Executive project design

• Civil, electrical, and transmission

line engineering

Insurance

• Bid Bonds and Performance Bonds

• Construction and operation

insurance

Project Finance

• Relationship with BNDES and major

commercial banks

• Secure letters of credit, and long

term financing

• Issue infrastructure debentures and

green bonds

Land

• Mapping and registry of real estate

• Land accreditation

• Negotiation with owners

• Implementation of Right of Way

Resource

• Resource measurement and

• Micrositing

Contract Management

• RFP process

• Negotiation and management of

contracts

Page 7: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

Operation and Maintenance

• Asset O&M

• Performance analysis

• Warranty inspection

Construction

• Planning and management

• Logistics

Project Management

Legal and Compliance

• General support on contract drafting

and negotiation

• Legal advice for all areas of the

company

• Oversight of compliance program

Human Resource

IT Security and Infrastructure

Community Relations

• Community outreach

• Design and implentation of social

projects

• Grievance channel and management

Health and Work Safety

Integrated Management System

Investor Relation

Budget Management

Page 8: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

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M&A | Project Finance Investor Relations | Sustainability

19CFO & Business Development

Administrative DirectorAccounting | Tax | FP&A | Treasury Human Resources | Communication Insurance | Processes and PMO | Health and Safety

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Project management | Engineering | Construction O&M

41Technical Director

Legal | Land | Compliance | Development 8

General Counsel

O R G A N I Z A T I O N A L S T R U C T U R E

4CEO

Regulatory & Trading

92Full time

employeesprojected

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Page 9: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

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OUR HISTORY OF

GROWTH

2013 2014 2015 2016 2017Aug/12 Aug/13 Jun/14 Aug/15 Nov/15 Apr/16 Jul/16Nov/13

Rio

Energy

founded

CAETITÉ

PPA

CAETITÉ EXP.

PPA

ITAREMA

PPA

ITAREMA EXP.

PPA

SERRA DA BABILÔNIA

PPA

CAETITÉ

COD

SERRA DA BABILÔNIA

EST. COD

Nov/182018 Aug/18

629 MW TOTAL UNDER OR NEAR CONSTRUCTION

AND OPERATION

ITAREMAs

CODs

SERRA DA BABILÔNIA 3

PPA

CAETITÉ

FINANCIAL CLOSE

ITAREMA

FINANCIAL CLOSE

Oct/15

SERRA DA BABILÔNIA

FINANCIAL CLOSE

Mar/17

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Page 10: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

• Rio Energy enjoys support from a group of international investors, led by Denham Capital, a

US$9Bn private equity fund with over 50 GW regional power experience1

• Provide Rio with not only capital commitment but also valuable knowledge and access to a global

network

Latin America

6 GW

Australasia

10 GW

Europe16 GW

Africa /

Middle East24 GW

Denham or

PC Offices

O U R I N V E S T O R S

Page 11: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

Itarema Wind Complex (207 MW)

Caetité Wind Complex (54.4 MW)

Babilônia Wind Complex (223.25 MW)

Rio Energy

Headquarters

RIO ASSETSIN OPERATION

Babilônia 3 Wind Complex (144 MW)

RIO ASSETSNEAR CONSTRUCTION

TOTAL OF

629MW11

Page 12: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

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WIND COMPLEX

C A E T I T ÉLocation: Caetité, State of Bahia

Auction: 2013 Reserve and 2013 A-3

Wind Turbines: 32 x General Electric 1.7 MW

Installed Capacity: 54.4 MW (3 SPVs)

Substation: 34.5 kV/230 kV with 90 MVA

Grid connection: SE Igaporã II (21.5 km),

Transmission line230 kV (223 MVA) SE Caetité A – SE Igaporã II

COD: August 2015

Pre-PPA operation: 1 month

PPA Price: R$158/MWh

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Page 13: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

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Location: Itarema, State of Ceará

Auction: A-3 in 2013 and A-3 in 2014

Wind Turbines: 69 x Acciona 3.0 MW

Installed Capacity: 207 MW (9 SPVs)

Substation: 34.5 kV/230 kV with 240 MVA

WIND COMPLEX

I T A R E M AGrid connection: SE Acaraú II (26.5 km)

Transmission Lineof 230 kV (307 MVA) SE Itarema V – SE Acaraú II

COD: January to August 2016

Pre-PPA operation: 1 to 8 months

PPA Price: R$167/MWh

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Page 14: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

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Location: Várzea Nova & Morro do Chapéu, State of Bahia

Install Capacity: 223,25 MW (8 SPVs)

Wind Turbines: 95 x Wobben Enercon 2.35 MW

Substation: 34.5 kV/230 kV with 300MVA

Grid connection: SE Morro do Chapéu II (75 km)

Transmission line230 kV: SE Serra da Babilônia – SE Morro do Chapéu II

Projected COD: October 2018

PPA Price: R$226/MWh

WIND COMPLEX

SERRA DA BABILÔNIA

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Page 15: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

RIO ASSETSU N D E R D E V E L O P M E N T

TOTAL UNDER DEVELOPMENT

2.4+ GW

Southern Cluster

Bahia Cluster

Ceará Cluster

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Page 16: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

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F I N A N C I N G

300MM

1.1B1.2B

2.1B2.2B

2014 2015 2016 2017 2018

R$ 2.2 B of financing

Financing Partners

Rio is one of the first

Brazilian companies to have issued green bonds

Forecasts and projections contained herein are based on internal information and/or outside sources believed to be reliable. There can be no assurance that any forecast or projection will be realized. Past performance is not an

indication of future results. See “Notice to Recipients” for important additional information.

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Page 17: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

TO SUSTAINABILITY AND SOCIAL RESPONSIBILITY

C O M M I T M E N T

E&S Management Systems in place

Delivering projects to the highest ESG standards (national and international standards)

Dedicated ESG team (10 people)

Tremenbés indigenous people Chief João Venâncio - Itarema/CE

Forecasts and projections contained herein are based on internal information and/or outside sources believed to be reliable. There can be no assurance

that any forecast or projection will be realized. Past performance is not an indication of future results. See “Notice to Recipients” for important additional information.

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Page 18: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

ENVIRONMENTAL AND SOCIAL PROGRAMS

C A E T I T É

Investment of R$1.5 MM in7 social programs

28 actions and social events

Covering:

Water Supply

Waste Management

Art and Culture

Agro-ecology

Water Collection & Storage Technologies

Forecasts and projections contained herein are based on internal information and/or outside

sources believed to be reliable. There can be no assurance that any forecast or projection will be realized. Past performance is not an indication of future results. See “Notice to Recipients”

for important additional information.

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Page 19: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

ENVIRONMENTAL AND SOCIAL PROGRAMS

I T A R E M A

Investment of R$5 MM in 27 social programs

52 actions and social events

Covering:

Health

Income Generation

Social Strengthening

Water Supply

Road System

Promotion of Indigenous Culture

Forecasts and projections contained herein are based on internal information and/or outside

sources believed to be reliable. There can be no assurance that any forecast or projection will be realized. Past performance is not an indication of future results. See “Notice to Recipients”

for important additional information.

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Page 20: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

ENVIRONMENTAL AND SOCIAL PROGRAMS

S E R R A D A B A B I L Ô N I A

Estimated investment of R$6.7 MM in social programs

Social programas

Concluded or underway

Seedling Nursery

Waste Management

Culture and Art - Cine pedal

Community Transit

Forecasts and projections contained herein are based on internal information and/or outside

sources believed to be reliable. There can be no assurance that any forecast or projection will be realized. Past performance is not an indication of future results. See “Notice to Recipients”

for important additional information.

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Page 21: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

I n v e s t m e n t i n

Anti-Corruption Program

a n dCOMPLIANCEEXCELLENCE

Process Management

Project Management Best Practices

Corporate Governance

Leadership

Technical Training

Work Safety

Code of Conduct

Performance Standards

Forecasts and projections contained herein are based on internal information and/or outside sources believed to be reliable. There can be no assurance that any forecast or projection will be realized. Past performance is not an

indication of future results. See “Notice to Recipients” for important additional information.

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Page 22: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

I n v e s t m e n t i n

a n dCOMPLIANCEEXCELLENCE

Internal and External Guidelines

Rio Energy Compliance and Procurement Policies

U.S. Foreign Corrupt Practices Act

U.K. Bribery Act

Federal anti-corruption law n.12.846/2013

Denham Capital Management LP International Power

Environmental, Social, and Corporate Governance Policy

Principles of the United Nations Global Pact

Universal Declaration of Human Rights

Declaration of the International Labor Organization (ILO) on

Fundamental Principles and Rights at Work

IFC environmental standard

ISO 9001 (Quality of Management System)

Global Reporting Initiative’s Environmental Indicators

Forecasts and projections contained herein are based on internal information and/or outside sources believed to be reliable. There can be no assurance that any forecast or projection will be realized. Past performance is not an

indication of future results. See “Notice to Recipients” for important additional information.

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Page 23: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

CONTACT US

www.rioenergyllc.com

facebook.com/rioenergyoficial

linkedin.com/rioenergy/

Use your camera to visit us

Page 24: INSTITUTIONAL - Rio Energy...2018/10/29  · This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the

Essa apresentação foi preparada pela Rio Energy Projetos de Energia Ltda e seu conteúdo é estritamente confidencial e de propriedade da Companhia.

Essa apresentação não pode ser reproduzida, distribuída ou publicada pelo receptor ou usuário em nenhuma hipótese sem o consentimento por

escrito da Rio Energy. Embora as informações contidas nesse documento sejam obtidas por meio de fontes confiáveis, a Rio Energy não garante a

precisão e/ou veracidade das mesmas. As opiniões expostas nesse documento representam as percepções da Rio Energy no presente momento e como

tais são sujeitas a ajustes e alterações.

This presentation was prepared by Rio Energy Projetos de Energia Ltda and the content herein is strictly confidential and property of the company. This

presentation cannot be reproduced, distributed or published by the recipient or used for any purpose whatsoever without the prior written consent of

Rio Energy. Although the information contained herein was obtained from sources deemed reliable, Rio Energy cannot guarantee the accuracy and

truth thereof. The opinions presented herein represent those of Rio Energy at the present time and are, therefore, subject to amendment and alteration.

DISCLAIMER