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Webcast 1 q13 eng

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  • 1. OPERATING ANDFINANCIAL RESULTS1Q13
  • 2. 22Agenda► Highlights► Operating Results► Introduction► Financial Results► Corporate Events
  • 3. 3► Highlights► Operating Results► Financial Results► IntroductionAgenda► Corporate Events
  • 4. 4IntroductionPresentation of Operating and Financial Information► The financial information contained herein is presented in consolidated figures, pursuant to BrazilianCorporate Law, based on revised financial information. The consolidated financial informationrepresents: i) 100% of CEMAR’s results, excluding 34.89% related to minority interests before NetIncome, resulting in participation of 65.11% ii) 100% of CELPA’s results, excluding 38.63% related tominority interests before Net Income, resulting in participation of 61.37%; and iii) 100% ofEquatorial Soluções’ results, which in turn consolidated 100% of Sol Energias’ results, excluding 49%of minority interest before Net Income.► The operating information presented herein consolidates 100% of CEMAR’s results, 100% of CELPA’sresults and 25% of Geramar’s results.► The following information was not reviewed by the independent auditors: i) non-financial informationrelating to CEMAR, Light and the PLPT (Programa Luz para Todos - Light for All Program); ii) pro formainformation and its comparison with the results presented in the period; and iii) managementexpectations regarding the future performance of the Companies.
  • 5. 5► Highlights► Operating Results► Introduction► Financial ResultsAgenda►Corporate Events
  • 6. 6Operating Highlights► CEMAR’s total billed energy volume reached 1,236 GWh in 1Q13, 10.6% higher than in 1Q12. Thetotal volume distributed by CELPA (captive and free markets) totaled 1,650 GWh in 1Q13, representinggrowth of 3.9% YoY.► In CEMAR, energy losses of the last 12 months ending 1Q13 represented 20.4% of the requiredenergy, with a reduction of 0.3 percentage points compared to 20.7% recorded in 1Q12. In CELPA, totallosses ended the year at 35.9% of the required energy.► In 1Q13, CEMAR’s DEC and FEC indexes (accumulated over the last 12 months) were 21.5 hours, adecrease of 9.3%, and 11.2 times, a decrease of 7.0%, compared to those observed at the end of 1Q12.In CELPA, these same indexes closed the quarter with improvements of 7.0% and 9.0%, respectively.Analyzing CELPA’s indexes only in the quarter, we can see improvements of 24.7% and 22.4%,respectively.
  • 7. 7► Net operating revenues (NOR) in 1Q13 reached R$1,065.9 million, almost twice 1Q12’s NOR, whichreflects the beginning of the consolidation of CELPA.► In 1Q13, EBITDA totaled R$59.8 million, a 52.2% decrease compared to the 1Q12 amount, due to the effectof the dispatch of thermal plants. If we consider the constitution or amortization of net regulatory assets,Equatorial’s Adjusted EBITDA would have been R$170.3 million, 80.8% higher than 1QT12’s.► The net result of the quarter was a loss of R$24.6 million, due to the effect of the dispatch of thermal plants.Considering the constitution or amortization of net regulatory assets, Equatorial’s adjusted net income wouldhave been R$37.4 million, 49.0% higher than 1Q12’s.► In 1Q13, Equatorials consolidated investments totaled R$169.0 million, 38.2% lower than those made in1Q12. If we consider only CEMAR’s own investments, the growth amounted to 5.0% in the quarter.► On April 19, 2013, CELPA’s EGM partially approved its capital increase, through which Equatorial now holds96.18% of CELPA’s total capital.► As of this quarter, we are no longer consolidating the interest of 25% in Geramar. On a pro-forma basis, wealso did not consolidate its numbers in previous quarters in this Earnings Release. Geramar’s results onlyimpact Equatorial’s Consolidated Income Statement in the Equity Income line.Financial Highlights
  • 8. 8► Highlights► Operating ResultsAgenda► Introduction► Financial Results► Corporate Events
  • 9. 9► CEMAR: 1Q13 energy sales moved up by 10.6%, reaching 1,236 GWh.Energy Market - CEMARElectricity Consumption per Segment (GWh)Energy Balance (GWh)CONSUMPTION SEGMENTS * (MWh) 1Q12 4Q12 1Q13 Chg.Residential 529,073 602,968 607,543 14.8%Industrial 112,615 124,489 114,112 1.3%Commercial 224,147 253,985 248,706 11.0%Others 252,154 284,782 265,669 5.4%TOTAL 1,117,989 1,266,225 1,236,031 10.6%(*) Does not consider own consumption and sales to CEPISAENERGY BALANCE (MWh) 1Q12 4Q12 1Q13 Chg.Required Energy 1,394,721 1,619,776 1,526,616 9.5%Sold Energy (*) 1,119,982 1,268,309 1,237,996 10.6%Losses 274,738 351,466 288,619 5.0%(*) Considers sale to the segments, own consumption and sales to CEPISA
  • 10. 10Distribution – Energy Losses in CEMAR
  • 11. 11DEC (hours) FEC (times)Distribution – DEC and FEC - CEMAR► CEMAR: In 1Q13, the DEC index decreased 9.3% compared to 1Q12 while the FEC index decreased 7.0% compared to the same quarter lastyear.21.523.71Q12 1Q13-9.3%12.111.21Q12 1Q13-7.0%
  • 12. 12CELPA – TimelineBefore Nov/12Mar. 2006• Creation of 100-Day Plan.• Introduction of New Management Practices;• Election of the new Board of Directors and new managers (1st and 2nd levels)• Analysis of the operation on a daily basis;• Change in the leadership (3rd level);• Creation of the Contracts Renegotiation Comittee;• Focus on collection;• Improvement of quality indicators (DEC and FEC) through management;• Containing the growth of energy losses;• Negotiation of the Labor Collective Agreement;• Definition of the Company’s operational targets.• Creation of a Voluntary Layoff Plan;• Hiring and training teams to combat energy losses;• Improvement in the process of billing and collection;• Budgeting of the Company, following the model used in CEMAR.• Opening of the new call center in Belém, with the same provider of CEMAR.Nov-Dec/12Jan-Mar/13Apr-Jun/13
  • 13. 13► CELPA: Energy demand growth of 3.9% in energy sales in 1Q13 (Captive Market + Free), reaching 1,650 GWh.► The number of low-income consumers in CELPA grew from 263 thousand by Sep/12 to 558 thousand by Apr/13.Energy Market - CELPAElectricity Consumption per Segment (GWh)Energy Balance (GWh)CONSUMPTION SEGMENTS * (MWh) 1Q12 4Q12 1Q13 Chg.Residential 597,388 658,352 629,910 5.4%Industrial 325,249 296,871 286,923 -11.8%Commercial 343,967 389,469 371,956 8.1%Others 269,852 301,819 277,267 2.7%TOTAL (Captive Market) 1,536,466 1,646,511 1,566,057 1.9%Free Consumers 51,914 85,117 83,857 61.5%TOTAL (Captive Market + Free) 1,588,379 1,731,627 1,649,913 3.9%(*) Does not consider own consumption and sales to CEPISAENERGY BALANCE (MWh) 1Q12 4Q12 1Q13 Chg.Energy Sales (Captive + Own Consumption) 1,544,511 1,591,187 1,572,212 1.8%Total Losses 787,912 860,770 956,065 21.3%Required Energy 2,332,437 2,451,949 2,528,196 8.4%Own Generation 90,058 96,741 102,633 14.0%Energy Purchase (Contracts) 2,300,136 2,407,254 2,231,622 -3.0%Energy Purchase (Spot) 61,204 60,005 247,460 304.3%Basic Network Losses (118,961) (112,050) (53,519) -55.0%
  • 14. 14Distribution – Energy Losses in CELPA
  • 15. 15DEC (hours) FEC (times)Distribution – DEC and FEC► CELPA: In 1Q13, the DEC index improved 7.0% compared to 1Q12 while the FEC index decreased 9.0% compared to the same quarter lastyear. Analyzing CELPA’s indexes only in the quarter, we can see improvements of 24.7% and 22.4%, respectively.CELPA – Last 12 months101.2 94.11Q12 1Q13-7.0% 52.547.71Q12 1Q13-9.0%CELPA – Quarterly30.723.11Q12 1Q13-24.7%10.813.91Q12 1Q13-22.4%
  • 16. 16► Highlights► Operating ResultsAgenda► Introduction► Financial Results► Corporate Events
  • 17. 17Quarterly ResultsEquatorial’s EBITDAConsolidated EBITDA decreased 52.9% in the 1Q13 compared to 1Q12. However, the regulatory EBITDAfor the quarter (which considers the formation or amortization of regulatory assets and liabilities) totaledR$170.3 million, up 80.8% compared to the value of the same quarter last year.Consolidated EBITDA decreased by 52.9% on the 1Q13 when compared to the 1Q12 figures.
  • 18. 18Quarterly ResultsNet IncomeThis quarter’s result was a loss of R$24.6 million.However, if we adjust the results for the quarter by the formation of net regulatory assets, would havemade ​​a profit of R$37.4 million, 49.0% better than the adjusted profit for 1Q12.
  • 19. 19Debt: Schedule of Gross Debt MaturitiesConsolidated Gross Debt(100% CEMAR + 100% CELPA)1.380,1212,6115,5182,8172,6154,2542,41.912,6408,06,66,87,47,81.476,0Gross Debt Short Term 2014 2015 2016 2017 After 2017CEMARCELPA
  • 20. 20100% CEMAR + 100% CELPANet Debt - ConsolidatedNet Debt (R$MM) and Net Debt/ EBITDA(Last 12 months)Net Debt Reconciliation (R$MM)We adjusted Equatorial’s net debt of previous quarters excluding the 25% stake in Geramar due to thechange in the accounting consolidation rule.Despite the consolidation of 100% of CELPA’s gross debt, its EBITDA contribution to Equatorial’sconsolidated figure represents values as from November and December 2012.1,403.4968.51,429.5931.5988.72.92.61.82.01.91Q12 2Q12 3Q12 4Q12 1Q131,435.71,403.43,292.6321.8Gross Debt NetRegulatoryAssetCash Net Debt
  • 21. 2165.11% CEMAR + 61.37% CELPANet Debt – Pro-rataNet Debt (R$MM) and Net Debt/ EBITDA(Last 12 months)Net Debt Reconciliation (R$MM)We adjusted Equatorial’s net debt of previous quarters excluding the 25% stake in Geramar due to thechange in the accounting consolidation rule.Despite the consolidation of 100% of CELPA’s gross debt, its EBITDA contribution to Equatorial’sconsolidated figure represents values as from November and December 2012.606.6627.8605.3600.8637.92.01.71.82.01.91Q12 2Q12 3Q12 4Q12 1Q13606.62,072.31,184.8297.7Gross Debt NetRegulatoryAssetCash Net Debt
  • 22. 22► CEMAR: In 1Q13, total capex reached R$83.0 million, of which R$77.5 million are own capex and R$5.5 million regarding theLight for All Program (PLPT).► CELPA: In 1Q13, total capex reached R$85.9 million, of which R$83.3 million are own capex and R$2.6 million regarding the Lightfor All Program (PLPT).Capex - EquatorialINVESTIMENTS (R$MM) 1Q12 4Q12 1Q13 Chg.CEMAROwn (*) 73.8 150.2 77.5 5.0%PLPT 44.5 45.4 5.5 -87.6%Total 118.4 195.5 83.0 -29.9%CELPAOwn (*) 138.2 57.5 83.3 -39.7%PLPT 16.6 5.0 2.6 -84.2%Total 154.8 62.5 85.9 -44.5%GeramarGeneration 0.2 0.1 0.0 -81.7%TOTAL EQUATORIAL 273.4 258.1 168.9 -38.2%(*) Including indirect Light For All Program investments
  • 23. 23► Highlights► Operating ResultsAgenda► Introduction► Corporate Events► Financial Results
  • 24. Corporate Events► On April 19, 2013, CELPA’s EGM partially approved its capital increase, through which Equatorial now holds96.18% of CELPA’s total capital.
  • 25. 25Eduardo HaiamaCFO and IROThomas NewlandsInvestor RelationsTelephone 1: +0 55 (21) 3206-6635Telephone 2: +0 55 (21) 3217-6607Email: ir@equatorialenergia.com.brWebsite: http://www.equatorialenergia.com.br/irContacts
  • 26. 26• This presentation may contain forward-looking statements, which are subject to risks and uncertainties, as they were based on theexpectations of Company’s management and on available information. These prospects include statements concerning the Company’scurrent intentions or expectations for our clients; this presentation will also be available at our website www.equatorialenergia.com.br/ir andin 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 shareand competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factorsand values that can establish these results are outside Company’s control or expectation. The reader/investor is advised not to completelyrely on the information above.• The words “believe", “can", “predict", “estimate", “continue", “anticipate", “intend", “forecast" and similar words, are intended to identifyestimates, 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.Disclaimer