Morgan Stanley Conference - Latin America CEO Conference (06 a 08-01-2010)
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Morgan Stanley Conference - Latin America CEO Conference (06 a 08-01-2010)

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Morgan Stanley Conference - Latin America CEO Conference (06 a 08-01-2010) Morgan Stanley Conference - Latin America CEO Conference (06 a 08-01-2010) Presentation Transcript

  • Summary Energy market overview CPFL Energia – Highlights and Results 2
  • Brazilian market has 64 distribution’s companies Market Share1 (%) Distribution Business – 2008 CPFL Energia 13% Distributors (#) 64 Brasiliana Energia 12% Clients (million) 63 Cemig 8% Neoenergia 8% Distributed Energy (TWh) 393 Copel 7% Market Breakdown Celesc 5% Energias do Brasil 5% • The 5 largest groups have 48% of market-share Rede Energia 4% • State-owned companies: 34% 4% Ashmore Energy • Private Company: 66% Others 34% Spreading proposes consolidation opportunities 3 1) ANEEL – Ref. 1H08
  • Brazilian market has 1,994 power plants. The public sector concentrates 70% of the assets Market Share1 (%) Generation Business – 2008 Chesf 10% Furnas 9% Hydroelectric plants (#) 1,994 Eletronorte 9% Cesp 7% Installed Capacity (MW) 111,540 Itaipu 7% Cemig 7% Tractebel 6% Market Breakdown Petrobras 5% Copel 4% • The 6 largest groups have 50% of the market AES Tietê 3% Duke 2% • State-owned companies: 70% CPFL Energia 2% • Private Company: 30% Others 29% 4th largest private generation company in Brazil 4 1) ANEEL – Ref. 1H08
  • Commercialization of electric energy in the Brazilian market Market share (% of the commercialization market) – Brasil1 21% 12% 10% 10% 5% 5% 4% 3% 3% 2% CPFL Tractebel Energias Petrobras Vale Coomex Votorantim Neoenergia Econ Comerc Energia do Brasil Captive and Free Market Energy Sales- Evolution (% of total energy market) – Brasil2 14% 23% 27% 28% 26% 24% 86% 77% 73% 72% 74% 76% 2 2004 2005 2006 2007 2008 2009 Regulated Market (ACR) Free Market (ACL) 5 5 1) January to September, 2009 2) September 2009 - Last 12 months
  • Summary Energy market overview CPFL Energia – Highlights and Results 6
  • Highlights • Brazilian’s largest player in distribution and commercialization businesses • Energy market is concentrated in the most developed regions of Brazil (South/Southeast) • CPFL is listed in the Bovespa’s Novo Mercado and NYSE’s ADR level III • Differentiated Dividend Policy: minimum payment of 50% of the net income on a semi-annual basis • Strong growth in the generation installed capacity in the last few years • Long term generation and distribution concessions • 5 distribution companies’ acquisition, 9 SPP’s and RGE’s stake (33%), Foz do Chapecó HPP’s stake (11%), Lajeado HPP’s stake (7%) and EPASA TPP’s stake (51%) in the last 3 years • First company in the Brazilian electric sector to negotiate carbon credits, through a run-of-stream HPP • Investments in energy generation from biomass: Baldin Biomass TPP and Baía Formosa Biomass TPP • 188 MW sold in the wind energy auction in December 2009 7
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  • The solidity achieved by CPFL reflects its operational efficiency and the quality of the markets in which operates Distribution1 – 9M09 Distribution Companies (#) 8 Municipalities (#) 568 Concession Area (km²) 208,226 Market Share (%) 13.0 Costumers (million) 6.5 Sales Concession Area (GWh) 48,400¹ 9 1) TUSD + Captive (Excludes CCEE sales) - LTM 9
  • The solidity achieved by CPFL reflects its operational efficiency and the quality of the markets in which operates Generation – Dec/09 In operation Installed Capacity (MW) 1,737 (e) Assured Energy (MWmedium) 864 (e) HPP (#) 7 SPP (#) 33 Under construction 5 Installed Capacity (MW) 846 Installed Capacity until 2012 (MW) 2,589 10
  • Expansion into biomass, CPFL Bioenergia’s constitution and its first deal Expansion of ethanol plants Expansion Bioelectricity² (MWmedium) 151 new plants expected to be built in the state of São Paulo by 20111 • Contract signed: Aug 2008 Baldin Project – 1st Deal • Construction of a sugar cane CPFL bagasse-fired thermoelectric generation plant Investmen CPFL will have the right to 24 MW t: R$ 98 milli of energy exported during the • Location: Pirassununga – SP on harvest season • Expected operations: April 2010 1) Source: EPE 11 2) Source: Cogem - SP
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  • A CPFL presents sales growth in the concession area and in the free market Concession Area Sales – GWh1 Free Market Sales (GWh)1 CAGR 4 years = 7.8% TUSD CAGR 4 years = 29.0% CAPTIVE 46,475 49,033 41,363 36,364 38,498 11,230 11,710 35,916 3,288 7,263 9,585 9,334 8,951 7,966 8,904 7,120 7,526 33,076 35,245 37,323 31,235 31,778 27,950 3,209 2004 2005 2006 2007 2008 9M09 2004 2005 2006 2007 2008 9M09 Concession Area Sales – GWh – 9M09 Brazil2 Southeast2 South2 -1.7% -2,4% -1.6% -3.9% -2.6% -1.9% 20 1) Excludes intercompany transactions (consolidation accounting basis), CCEE and generation sales (except to the free market) 20 1) Excludes intercompany transactions (consolidation accounting basis), CCEE and generation sales (except to the free market) 20 2) Source: EPE 2) Source: EPE
  • CPFL presents strong growth of EBITDA and Net Income in the last years EBITDA (R$ million)1 Net Income (R$ million)1 CAGR 4 years = 13.7% CAGR 4 years = 46.2% 3,345 1,641 2,789 2,808 1,404 1,276 2,120 2,019 1,021 1,681 861 279 2004 2005 2006 2007 2008 9M09 2004 2005 2006 2007 2008 9M09 Recurring EBITDA Breakdown – 3Q09 Generation 25% CPFL Energia EBITDA Margin of 29.7% Distribution Net Margin of 13.8%2 Commercialization 63% and Services 12% 21 1) 2007 and 2008 adjusted by the impact of Law 11,638 and PM 449/08 2) Excluding main non-recurring effects and items that affect Revenue, but don’t affect EBITDA
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