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    4 q10 presentation 4 q10 presentation Presentation Transcript

    • OPERATING ANDFINANCIAL RESULTS 4Q10
    • Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results ► Redentor 2
    • Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results ► Redentor 3
    • Introduction Presentation of Operating and Financial Information ► The financial information contained herein is presented in consolidated figures, pursuant to Brazilian Corporate Law, based on revised financial information. The consolidated financial information represents: i) 100% of CEMAR’s results, excluding 34.89% related to minority interests, ii) 25% of Geramar’s results and iii) 100% of Equatorial Soluções Results. In view of Equatorial’s partial spin-off, as of 2Q10, we no longer consolidate Light’s figures. ► The operating information presented herein consolidates 100% of CEMAR’s results and 25% of Geramar’s results. As of 2Q10, we are no longer consolidating Light’s operating results. ► In order to facilitate comparisons, the operating and financial information of 4Q09, 3Q10, 2009 and 2010 are pro forma, so that the interest held by Equatorial in RME is not being considered. ► The following information was not reviewed by the independent auditors: i) non-financial information relating to CEMAR, Light and the PLPT (Programa Luz para Todos - Light for All Program); ii) pro forma information and its comparison with the results presented in the period; and iii) management expectations regarding the future performance of the Companies. 4
    • Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results ► Redentor 5
    • Operating Highlights ► As of 2Q10, in view of Equatorial Energia’s spin-off, we have ceased to consolidate 13.03% of Lights figures in our operating and financial information. ► CEMAR’s billed energy volume totaled 1,094 GWh in 4Q10, 11.0% more than in 4Q09. ► CEMAR’s last-12-month energy losses totaled 22.0% of required energy in 4Q10, 3.2 p.p. less than the 4Q09 ratio. ► CEMAR’s last-12-month DEC and FEC indices came to 21.8 hours and 14.1 times, respectively, in 4Q10, 7.6% and 7.2% down on the 4Q09 figures. 6
    • Financial Highlights ► Net operating revenues (NOR) totaled R$395.5 million in 4Q10, not considering the Construction Revenues, 13.0% up on 4Q09, reflecting a 9.8% increase by CEMAR and the commercial startup of Geramar. ► 4Q10 adjusted EBITDA came to R$144.4 million, 15.6% higher than the adjusted amount reported in 4Q09. ► Net income totaled R$58.3 million in the quarter, 26.2% up on the adjusted amount reported in the same period last year. ► Equatorial’s consolidated investments amounted to R$126.0 million in 4Q10, 13.9% down year-on-year, due to the conclusion of Geramar’s construction in 1Q10. ► In the Board of Directors’ Meeting held on March 29, the Company’s capital was increased by 400,347 shares, due to the exercise of the Stock Option Plan. As from now, the Company’s capital stock is represented by 109,226,672 common shares. ► Also in the same Board of Directors’ Meeting, the distribution proposal of R$196.6 million in 2010 dividends was approved, representing R$1.80 per share. 7
    • Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results ► Redentor 8
    • CEMAR – Electricity Sales Volume► CEMAR: 4Q10 energy sales moved up by 11.0%, reaching 1,094 GWh. Electricity Consumption per Segment (GWh) CONSUMPTION CLASS (GWh) 4Q09 3Q10 4Q10 Chg. 2009 2010 Chg. Residential 455.4 485.6 507.0 11.3% 1,641.1 1,916.6 16.8% Industrial 103.6 112.3 111.3 7.4% 381.9 426.4 11.7% Commercial 187.6 211.2 215.5 14.9% 703.8 817.6 16.2% Others 238.8 263.0 259.8 8.8% 839.6 985.6 17.4% TOTAL 985.4 1,072.2 1,093.6 11.0% 3,566.3 4,146.1 16.3% Energy Balance (GWh) ENERGY BALANCE (GWh) 4Q09 3Q10 4Q10 Chg. 2009 2010 Chg. Required Energy 1,295 1,379 1,421 9.8% 4,776 5,326 11.5% Sales (*) 987 1,074 1,095 11.0% 3,572 4,151 16.2% Losses 308 305 326 5.8% 1,204 1,174 -2.5% (*) Includes sales to the market, own consumption and sales to CEPISA. 9
    • Distribution – Energy Losses in CEMAR Total Losses over Required Energy (last 12 months) 28.7% 28.9% 28.6% 28.9% 28.5% 28.1% 28.1% 26.4% 24.2% 24.3% 25.2% 22.2% 22.2% 22.0% 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Regulatory Target Total Losses (from Aug-10 until Jul-11) Non-technical Losses over Low-Voltage Market (last 12 months) 30.4% 30.6% 30.0% 29.9% 29.0% 28.7% 27.3% 21.5% 21.5% 23.7% 19.5% 15.7% 15.7% 15.9% 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Regulatory Target Non-technical Losses (from Aug-10 until Jul-11) 10
    • Distribution – DEC and FEC (Last 12 months) ► CEMAR: The DEC index improved 7.6% compared with 3Q09 and the FEC index improved 5.7% in the same period. DEC (hours) FEC (times) -7.6% 23.6 21.8 -7.2% 15.2 14.1 4Q09 4Q10 4Q09 4Q10 11
    • Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results ► Redentor 12
    • Consolidated Performance Net Operating Revenues* EBITDA* (without Construction Revenues) 395.5 13 . 0 % 2.8% 350.0 14 9 .4 - 13 .5% 0.1% 12 9 .4 6.7% 97.1% 100.0% 100.0% 93.3% 4Q09 4Q10 4Q09 4Q10 CEM A R EQTL So luçõ es Geramar CEM A R Geramar Net Income* 35.5 5.6% 94.4% - 12 . 8 4Q09 4Q10 CEM A R Geramar*Only operating companies and showing positive figures are being considered in these graphs. 13
    • EBITDA CEMAR – IFRS Effects EBITDA CEMAR IFRS x BR GAAPEBITDA (R$ million) 4Q09 1Q10 2Q10 3Q10 4Q10 2009 2010EBITDA CEMAR - BR GAAP 130.5 88.8 107.1 186.9 106.3 470.4 488.9Net Regulatory Assets Write-off (32.4) (31.0) (31.6) 51.3 (15.3) (39.1) (26.7)Transfer of Profit Sharing to Personnel 7.6 2.7 2.7 7.7 2.7 14.0 15.7EBITDA CEMAR - IFRS 155.3 117.1 136.0 127.9 118.9 495.5 499.9Non-recurring Effects (24.5) - - - 15.0 (14.4) 15.0EBITDA CEMAR - IFRS recurring basis 130.8 117.1 136.0 127.9 133.9 481.1 514.9► We show above the conciliation between CEMAR’s EBITDA as reported in the previous quarters (according to BR GAAP), and the EBITDA reported in 4Q10. Basically, two differences should be noted:► Regulatory Assets and Liabilities: By the IFRS standards, regulatory assets and liabilities should not be accounted, not affecting the quarterly EBITDA and, consequently, there should be no more asset or liability in the Balance Sheet.► Profit Sharing: This expense was transferred from a specific line above the Net Income, to the Personnel in the PMSO, negatively affecting the company’s EBITDA. 14
    • Pro-forma EBITDA Adjusted EBITDA 15.6% 24.5 15.0 144.4 149.4 124.9 129.4 EBITDA REFIS Fine Adjust. Adjust. Legal Deposits EBITDA 4Q09 Reduction 4Q09 EBITDA 4Q10 EBITDA 4Q10► REFIS’ Adherence: In the 4Q09, R$24.5 million were excluded from the EBITDA due to fine reduction in CEMAR’s adherence to REFIS.► Judicial Deposits: In the 4Q10, we did not consider R$15.0 million in expenses arising from updating CEMAR’s judicial deposit balance made in previous years.► Thus, Equatorial’s EBITDA on a recurring basis grew 15.6% in 4Q10. 15
    • Consolidated Performance Adjusted Net Income 26.2% 8.3 14.5 58.3 46.2 35.5 59.0 -12.8 4Q09 REFIS 4Q09 Adjust. 4Q10 Adjust. Legal Mon. 4Q10 Net Income Income Tax Net Income Net Income Deposits Restatement Net Income Provisions► REFIS’ Adherence: In the 4Q09, the consolidated net effect of CEMAR’s adherence to REFIS was negative by R$59.0 million.► Judicial Deposits: In the 4Q10, the final result was negatively affected in R$8.3 million by the updating of the judicial deposits balance in CEMAR.► Provisions for Contingencies’ Monetary Restatement: Also in the 4Q10, the Provisions for Contingencies were monetary restated, which reduced Equatorial’s Net Income by R$14.5 million. 16
    • Debt: Schedule of Gross Debt Maturities Consolidated Gross Debt (100% CEMAR + 25% Geramar) 107.9 68.6 Geramar 194.2 222.7 - 336.2 1,257.9 - CEMAR 110.2 - 105.3 39.3 289.3 Gross Debt Short Term 2012 2013 2014 2015 After 2015 17
    • Net Debt - Consolidated 100% CEMAR + 25% Geramar Net Debt (R$MM)(*) and Net Debt/ EBITDA Net Debt Reconciliation (R$MM) (Last 12 months) 1.7 1.7 1.7 1.5 57.0 1.4 768.7 754.3 775.7 758.7 550.1 733.4 1,365.8 758.7 4Q09 1Q10 2Q10 3Q10 4Q10 Gross Debt Net Reg. Cash Net Debt Assets 18
    • Net Debt – Pro-Rata 65.11% CEMAR + 25% Geramar Net Debt (R$MM)(*) and Net Debt/ EBITDA Net Debt Reconciliation (R$MM) (Last 12 months) 1.7 1.7 1.7 1.4 1.5 37.1 512.7 390.7 500.7 494.7 483.3 499.1 926.9 499.1 4Q09 1Q10 2Q10 3Q10 4Q10 Gross Debt Net Reg. Cash Net Debt Assets 19
    • Capex - Equatorial► CEMAR: In the 4Q10, total capex reached R$125.6 million, of which R$67.3 million are own capex and R$58.3 million regarding the Light for All Program (PLPT).► Ever since the conclusion of the construction of its plants, Geramar has only maintenance capex. INVESTMENTS (R$MM) 4Q09 3Q10 4Q10 Chg. 2009 2010 Chg. CEMAR Own (*) 63.6 48.0 67.3 5.8% 239.2 197.0 -17.6% Light For All Program 69.2 65.0 58.3 -15.7% 179.8 202.1 12.5% Total 132.8 113.1 125.6 -5.4% 418.9 399.1 -4.7% Geramar Generation 13.5 0.3 0.4 -97.2% 106.9 16.2 -84.8% TOTAL 146.3 113.3 126.0 -13.9% 525.8 415.4 -21.0% (*) Including indirect Light For All Program investments 20
    • Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results ► Redentor 21
    • Redentor► In March 14, 2011, Redentor’s EGM approved the Company’s Capital Reduction, through which its shareholders should receive R$1.001 per shareThe shares started being traded ex-Capital Reduction in March 16, 2011.► Redentor’s Management, in a Board of Directors’ Meeting held in March 28, 2011, proposed the distribution of dividends amounting to R$0.419 per share. PCP Latin America FIP PCP Free Float Free Float Power 54.1% 45.9% 53.9% 46.1% Redentor Equatorial Energia S.A. Energia 100% RME 65.1% 25% 100% Rio Minas Energia Equatorial CEMAR Geramar Soluções 13.0% Light S.A. 22
    • Contacts Eduardo Haiama CFO and IRO Thomas Newlands Investor Relations Telephone 1: +0 55 (21) 3206-6635 Telephone 2: +0 55 (21) 3217-6607 Email: ir@equatorialenergia.com.br Website: http://www.equatorialenergia.com.br/ir 23
    • Disclaimer• This presentation may contain forward-looking statements, which are subject to risks and uncertainties, as they were based on the expectations of Company’s management and on available information. These prospects include statements concerning the Company’s current intentions or expectations for our clients; this presentation will also be available at our website www.equatorialenergia.com.br/ir and in the IPE system of the Brazilian Securities and Exchange Commission (CVM).• Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market share and competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factors and values that can establish these results are outside Company’s control or expectation. The reader/investor is advised not to completely rely on the information above.• The words “believe", “can", “predict", “estimate", “continue", “anticipate", “intend", “forecast" and similar words, are intended to identify estimates, which refer only to the date on which they were expressed. Hence, the Company has no obligation to update said statements.• This presentation does not constitute any offering, invitation or request of subscription offer or purchase of any marketable securities. And, this statement or any other information herein, does not constitute the basis for any contract or commitment of any kind. 24