Apresentação fundo de pensão eng final


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Apresentação fundo de pensão eng final

  1. 1. Pension FundFundação CespMarch, 2013
  2. 2. How the expense is calculated? The expense with Fcesp is calculated in accordance to CVM Resolution 695/2012 The projected expense of Fcesp for the following year is calculated through the difference between the actuarial liabilities and the expected return on plan assets, added by the current service costs. The return rate shall be equal to the discount rate 2
  3. 3. How the cash disbursement is l l t d? i calculated? Cash disbursement results from the valuation of FCesp’s actuarial liabilities, prepared by an actuary and in accordance to the rules issued by Previc (National Superintendency of Pension Funds) Actuarial valuation is reviewed on a annual basis at the end of the year basis, 3
  4. 4. Calculating the difference of expenditure and disbursement ACCOUNTING CASH EXPENSE DISBURSEMENTRegulatory Agency CVM PREVIC Difference between interest on actuarial Determination Result of the FCesp actuarial valuation liabilities and plan assets Calculated in accordance to market Calculated in accordance to a FCesp’s Study Discount rate value (National Treasury Notes/NTN-B) Notes/NTN B) (Resolution CNPC No. 9): 5.5% p.a. on 12/31/2012: 3.75% p.a. Recognition Company Financial Statements FCesp Financial Statements 4
  5. 5. Main amendments on accounting rules g Until 12.31.2012 From 01.01.2013 (Res. CVM 600) 600)¹ (Res. CVM 695) Expected return on Determined by a study of a specialized Corresponds to the actuarial liabilities plan assets company (6.79% for 2012) discount rate (3.75% for 2013) Accrued over the years in the "corridor" Actuarial Gains Fully recognized in the Companys balance (10% excess of actuarial liabilities and losses sheet (Liabilities and Shareholders‘ Equity) recognized in the income statement) Amortized over the average future Corridor over 10% There is no impact (fully recognized in the of plan liabilities service period of active participants balance sheet of the Company) and recognized in income statement1 – Revoked by CVM Resolution 695, on December 13, 2012 5
  6. 6. Impact on the income statement due to changes imposed by CVM g p y 2012 2013 R$ million R$ milllion Service cost 16.3 16 3 Discount rate decreases from 5 5% to 3 75% 5.5% 3.75% 29.3 29 3 Rate costs 916.6 Discount rate decreases from 5.5% to 3.75% 1,018.1 Expected return (788.6) Rate of return decreases from 6.79% to 3.75% (696.5) on plan assets Amortization of actuarial 15.3 Extinction of the corridor method -gains and lossesTotal expenditure 159.7 350.9• Increase on expense shall be reversed through equity in the coming years due a grater expected p g q y g y g p profitability of the plan compared to the expected return on plan assets used in the calculation• Average return over the last five years on 16% (above the actuarial target period) 6
  7. 7. Cash impacts with the plan  Amendments set forth by CVM 695 has no influence on assumptions and on the calculation method of the pension plan cash disbursement 2012 +4.4% 2013 R$ million R$ million Cash disbursement IGP DI IGP-DI discount rate decreases from +6% to +5.5%, 6% 5.5%, 271.7 283.6before and after CVM 695 offset by marking securities to market  For 2014 is not expected a significant increase on cash disbursement, since the actuarial assumptions were maintened 7
  8. 8. Companys balance sheet x FCesp balance sheet p Balanc e Sheet AES Eletropaulo Fundaç ão (Dec /2012) CV M 600 CV M 695 CESPActuarial Liabilities 12,389 12 389 12,389 12 389 8,319 8 319 Total Liabilities 12,289 12,289 10,120 Debt Agreement - - (1,802)Value of Assets 8,525 8,525 8,365Defic it / (Surplus) 3,963 3,963 (44) Will be recorded in Other b d d i Oth Comprehensive Income,Losses not recognized in the balance sheet ("corridor") (2,830) n/a n/a in the Shareholders‘Liability rec orded on the balanc e sheet 1,133 3,963 n/a Equity  Companys balance sheet: in accordance to the CVM’s rules  Calculation of actuarial liabilities in accordance to the market discount rate (NTN-B)  Assets at market value  Recognition of the liability and expense that affect the Companys income  Fundação CESP balance sheet: in accordance to the PREVIC’s rules  C l l ti Calculation of actuarial liabilities according t th di f t i l li biliti di to the discount rate set f th on PREVIC’ rules t t t forth PREVIC’s l  Part of the assets marked on the curve  Calculation of employer contributions (cash disbursement) 8
  9. 9. Conclusion The variation of the liabilities has no correlation with the Companys cash disbursement Increase on cash disbursement may occur in case of amendments on Fcesp’s actuarial assumptions if previously approved by Eletropaulo assumptions, Amendments on accounting rules do not affect Company’s covenants. 9
  10. 10. The statements contained in this document with regard to the businessprospects, projected operating and financial results, and growth potentialare merely forecasts based on the expectations of the Company’sManagement in the relation to its future performance. Such estimates arehighly dependent on the market behavior and on the conditions affectingBrazil’s macroeconomic performance as well as the electric sector andinternational market, and they are therefore subject to changes.