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Cpfl energia institucional jun11_eng_final
 

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    Cpfl energia institucional jun11_eng_final Cpfl energia institucional jun11_eng_final Presentation Transcript

    • Foz do Chapecó HPP Overview: dam | reservoir
    • Disclaimer This presentation may contain statements that represent expectations about future events or results according to Brazilian and international securities regulators. These statements are based on certain assumptions and analyses made by the Company pursuant t it experience and th economic environment, market conditions and expected f t C t to its i d the i i t k t diti d t d future events, many t of which are beyond the Companys control. Important factors that could lead to significant differences between actual results and expectations about future events or results include the Companys business strategy, Brazilian and international economic conditions, technology, financial strategy, developments in the utilities industry, hydrological conditions, financial market conditions uncertainty regarding the results of future operations plans objectives expectations and intentions conditions, operations, plans, objectives, intentions, among others. Considering these factors, the Companys actual results may differ materially from those indicated or implied in forward-looking statements about future events or results. The information and opinions contained herein should not be construed as a recommendation to potential investors and no investment decision should be based on the truthfulness, timeliness or completeness of such information or opinions. None of the advisors to the company or parties related to them or their representatives shall be liable for any losses that may result from the use or contents of this presentation. This material includes forward-looking statements subject to risks and uncertainties which are based on current forward looking uncertainties, expectations and projections about future events and trends that may affect the Companys business. These statements may include projections of economic growth, demand, energy supply, as well as information about its competitive position, the regulatory environment, potential growth opportunities and other matters. Many factors could adversely affect the est ates a d assu pt o s o estimates and assumptions on which these statements are based. c t ese state e ts a e based2
    • AgendaCorporate OverviewOperational EfficiencyGrowth in the Generation BusinessWide Portfolio of Services
    • Corporate overview – Highlights 1st private player in the electric sector in terms of M k Cap t i l Market C The largest (R$ 22 billion in Mar, 2011) private player R$ 3.4 billion EBITDA and R$ 1.6 billion Net Income in 2010 in the Brazilian Electric Sector Main player in Renewable Energy in Latin America Leadership in the distribution business through 8 distributors. Energy market is concentrated in t e most d bu o gy a co ce t ated the ost developed regions of Brazil 2,640 MW(e) generation installed capacity in FY11, 93% renewable sources. 17 wind farms, 5 biomass plants and 1 S Small Power Plant under construction ll P Pl t d t ti Successful strategy in the commercialization business Bovespa’s B ’ Novo Mercado and NYSE’s ADR Level III d NYSE’ Differentiated Dividend Policy: minimum 50% of the net income semi-annually. Practices 95% Most sustainable electricity company in Latin America for the 3rd consecutive year by Management & Excellence4
    • Brazilian’s largest player in the electric setor CPFL Energia | 2010 Market-share ALIZATION Distribution CPFL 13%1 Concession Area (captive + TUSD)COMMERCIA • 6.7 million customers Others: • 569 municipalities 87% • Sales of 52,378 GWh2 3 major Market leader players p y : 34% Generation (Aug, 11e) CPFL 2%3 Focused mainly in renewables • 60 power plants operating Others: ON 2,640 2 640 MW installed capacity GENERATIO • 98% • 19 plants under construction 3 major 3rd private generator players: 28% Comercialization DISTRIBUTION N CPFL 11%4 Energy free market and Services • 152 free customers • Sales of 13,000 GWh Others: • Services: revenues of R$ 120 million $ 89% D 2nd player 3 major players: 30% 5 1) Aneel – last available information 2) Concession area sales (excludes CCEE) 3) In Apr, 2011. Generation figures after ERSA and Jantus’ deals closing 4) In Feb, 2011
    • Current Corporate Structure Notes: (1) Includes the 0.1% stake of the company Camargo Corrêa S.A.; (2) Controlling shareholders; (3) Comprises 13 companies: Santa Clara I, II, III, IV, V and VI, Eurus VI,6 Campo dos Ventos I, II, III, IV and V and Eurus V.
    • Best corporate governance practices Advanced Corporate Governance Practices: 1st Brazilian company • Shares listed on differentiated segments: • Bovespa Novo Mercado • ADR III - NYSE Annual Client Leadership Award IFC 2008 • Compliance with the Sarbanes-Oxley Act • Board of Directors made up of 7 members: • 1 Independent Member I d d tM b Member of the Companies • 3 Board Advisory Committees Circle – OCDE/IFC • Self-Assessment through Fiscal Council • General Shareholders Meeting Participation Manual • Securities Information Disclosure and Trading Manual 1st Place Energy Sector – The Most Sustainable Large • Dividend Payout Policy: Companies in Latin America for the 3rd consecutive • Minimum dividends of 50% of net income, paid twice a year year May, May 2011 • Succession Plan Ranked on the 50 Largest Sustainable Latin American companies list (2008/2009) Ranked on Ibovespa’s Transparency in Sustainability list of companies (2nd place - 2009) y p ( p )7
    • Comparative of global electricity consumption Electricity consumption | per capita/GDP1 14.000 12.000 000 United onsumption pe capita (KWh) ) States 10.000 Australia 8.000 Japan France er Taiwan T i Singapure Germany 6.000 South Korea UK Greece Spain Brazil Italy Hong Kong 4.000 Venezuela 2014 Portugal Chile Brasil Co Argentina 2.000 2010 China Mexico Peru GDP per 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 capita (US$) Brazil 2010 2014 2019 ∆ % Population (million)2 194.1 200.2 206.6 12.5 6 Electricity consumption (TWh) y p ( ) 415.9 506.8 633.0 217.1 52 Consumption per capita (MWh/year) 2.1 2.5 3.0 0.9 469 1) Source: U.S Energy Information Administration 2) Source: PDE 2019
    • 10
    • Capex – Investments in the distribution and generation business Investments by business segment (in R$ million) Total 1997-2005: R$ 3,2 billion Total 2006 2010 R$ 6,2 billion T l 2006-2010: 6 2 billi 1.773 1 773 645 1.316 1.167 1.121 570 445 502 793 606 627 266 565 512 1128 255 331 343 294 746 676 665 193 220 191 527 157 174 32 39 368 193 218 235 261 157 174 188 152 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Distribution Generation11
    • 12 Doesn’t include the figures of Jantus and ERSA’s deals
    • 1Q11 Debt Profile The largest private player in the Brazilian TJLP | 31% Electric Sector 1) Excludes Judicial Deposits of R$ 493 million – includes hedging operations; excludes regulatory assets/liabilities; EBITDA (LTM) 2) Includes debts from Santa Clara I, II III, IV, V,13 VI and Eurus VI; Includes BITDA (LTM)(e) from CPFL Bioenergia, EPASA and Foz do Chapecó
    • Capital market performance14 1) Closing price in March 31th, 2011 – adjusted per dividends (CPFE3: R$ 45,40/CPL: US$ 85.61) 2) Closing price not adjusted per dividends
    • TSR Performance Total Shareholder Return1 - 2005-2010(e) [% a.a.2] 25% 21% 20% 19% 17% 17% 16% Average3 = 14 4% 3% AES Tietê Ti ê Copel C l Tractebel T b l Cemig C i Light Li h AES Edp Ed Eletrobras El b Eletropaulo Note: 2010 dividends estimates from a research report (Itaú) 1) TSR: shareholder TIR – market cap values in Dec, 04 and Dec, 10.15 2) Values updated by IGP-M 3) Source: Thomson Financial; Economática and Itaú Securities
    • AgendaCorporate OverviewOperational EfficiencyGrowth in the Generation BusinessWide Portfolio of Services
    • 17 CPPFL CPFL 4,5 Moc coca 4,6 Mococa CP PFL CPFL Santa 5,1 Paulista 5,5 Cruz CPFFL CPFL 5,2 Piratini inga 5,7 Paulista FEC1 | 2010 DEC1 | 2010 Eletropa aulo CPFL 5,4 6,9 Piratininga Coe elce 5,6 Coelce 7,5 Elek ktro CPFL Leste 5,7 8,3 Paulista Li ight 5,8 Escelsa 9,0 Esc elsa CPFL Sul 6,3 9,2 Paulista CPFL Santa CPFL 6,5 z Cruz 9,2 Jaguari Ce emig 6,6 Elektro 9,5 Cos sern 7,0 Eletropaulo 10,6 Bandeira ante 7,1 Light Ce elpe 7,3 73 Copel CPFL Leste L 7,7 77 Paulis sta Bandeirante 11,3 11,5 12,2 CPFL Sul L 7,8 78 Paulista Cosern C CPFL 7,8 78 Jaguari Cemig Operational Efficiency – Distribution companies opel Co 9,5 Celesc 12,7 13,0 13,5 R RGE 9,7 RGE 14,7 AES Sul Celpe 17,1 Cel lesc , 10,1 10,2 AES Sul 17 1 18,0 Coe elba 11,2 Cemar Am mpla 12,7 CEEE 21,5 21,6 Cem mar 14,0 Ampla1) DEC-Duration of outages per consumer per year (in hours); FEC-Frequency of outages per consumer per year (number of outages). Excluding power outage effect in Nov, 09. 23,8 CE EEE 15,0 Coelba 26,6
    • Operational Efficiency – Distribution companies Delinquency1 (%) | CPFL Energia Apr, 10 1Q11 Q Dec, Dec 09 1,52 1,42 1,16Mar, 08 Jun, 08 Sep, 08 Dec, 08 Mar, 09 Jun, 09 Sep, 09 Dec, 09 Mar, 10 Jun, 10 Sep, 10 Feb,11 Program f R d ti P for Reduction of C f Commercial L i l Losses 2007 – 2010 2 million of consumer units (CU) inspected • 305 thousand CU identified and regularized • 211 thousand CU with fraud • 413 thousand measuring equipments replaced • 37 thousand regularization of illegal connections18 1) Bills overdue more than 30 days - % of 12 months billings. In 2010 it doesn’t consider: CPFL Leste Paulista, Sul Paulista, Jaguari and Mococac
    • CPFL Energia Group’s Awards Abradee Best Electric Energy Distribution Economic-Financial Management: Company in Brazil: CPFL Paulista – 1999|2000|2008 CPFL Paulista–2000|2003|2006|2008|2009 Paulista 2000|2003|2006|2008|2009 CPFL Piratininga – 2004|2007 RGE – 2010 Management Quality: Best Electric Energy Distribution CPFL Paulista – 2005|2006|2008|2009 Company in the South Region CPFL Piratininga – 2010 RGE – 2003|2009|2010 Best Social Responsibility: Operational Management: CPFL Paulista – 2002|2003|2004|2005|2008 CPFL Paulista – 2001|2003|2005|2007|2008 RGE – 2009|2010 RGE – 2010 PNQ® – National Quality Award Awarded Awarded Finalist19
    • AgendaCorporate OverviewOperational EfficiencyGrowth in the Generation BusinessWide Portfolio of Services
    • Incorporation of CPFL Renováveis | Corporate structure21 Source: ERSA (IR)
    • Incorporation of CPFL Renováveis | Corporate structure22 Source: ERSA (IR)
    • CPFL Energias Renováveis | Portfólio CPFL Renováveis | Projects into commercial operation - Aug, 11(e) á Preliminary figures. It depends on approval by competent bodies 1) Source: ERSA (IR) 2) Includes SIIF Énergies Brazils assets 3) Assured energy/guaranteed power output23 4) Expectation to increase 0.8 avg.MW after review by ANEEL 5) Considers review of Varginha SPP’s assured energy by ANEEL in April 20, 2011
    • CPFL Energias Renováveis | Portfolio Installed capacity (MW) Installed capacity Assured energy (AvgMW) 3,341 4,375 (Total: 4,375 MW) SPP 18% 1,359 1,832 Bio 36% 386 Wind 648 306 45% 167Operating (Aug, 11) Under Under Total construction development 4,375 Assured Energy Estimated Evolution (Total 1,832 AvgMW) Installed capacity (MW) Assured energy (AvgMW) SPP 2,092 2 092 25% 1,692 1,832 1,174 Bio 907 742 920 31% 648 410 538 Wind 306 44% 2011 2012 2013 2014 2015 Total24
    • Expansion in Generation | Acquisition of 1,078 MW in wind farms in Mar, 11 210 MW in operating and 867 MW for development Note: Load factor – estimates values according to historical production and certification 1) Excludes additional investment of R$ 70 million in case of Quintanilha Machados’s25 acquisition 2) Proinfa PPA: as of June, 2010 Note: Illustrative picture
    • 26
    • 27
    • Generation – Termonordeste TPP commercial startup in Dec, 2010 and Termoparaíba TPP in Jan, 2011 Epasa TPPs – CPFL Stake (51%) • Installed Capacity: 174.2 MW • Investment: R$ 310 million • Capital structure: ~35% equity / 65% debt • Location: Paraíba Start of Commercial Start-up: construction Termonordeste: Dec, 10 Oct, 09 Termoparaíba: Jan, 11 Annual fixed revenue around of R$ 85 million28
    • Expansion in Generation | Projects under construction Sugarcane – fired termoelectric power plants29 1) As of Mar, 11
    • Expansion in Generation | Projects under construction Wind farms30 Note: Illustrative picture 1) As for Mar, 11 2) Guaranteed power output
    • Expansion in Generation | Installed capacity growth 1) Guarantee of 51.54% of the assured energy until 2028 2) Hydroelectric power projects with less than 1,000 Kw that are not considered concession by the grantor31 3) From 9 SPPs from CPFL Jaguariúna (today are in the Distribution), 6 are in the situation described in note 2
    • Brazilian generation – expansion Northeast • Wind potential North • Local thermal • High hydro- generation (LNG) eletric potential available • Nuclear • Thermal generation using Wind potential: 75 GW2 imported coal Potential used: 5% Hydro potential: 111 GW1 Potential used: 9% South Southeast/CO • Local thermal • Local thermal generation using generation domestic coal (biomass, pre-salt and LNG) p g • Developing Wind potential: 23 GW1 wind potential Biomass potential: Potential used: 3% 23 GW332 1) Source: MME 2) Source: EPE. Consider the energy contracted until 2013 3) Source: COGEN (expected by 2019)
    • AgendaCorporate OverviewOperational EfficiencyGrowth in the Generation BusinessWide Portfolio of Services
    • 34
    • Foz do Chapecó HPP Overview: dam | reservoir