Apimec presentation 03-31-2009

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Apimec presentation 03-31-2009

  1. 1. Apimec March, 2009
  2. 2. AES Brasil Overview AES Brasil in 2008 Distributed Energy: 41,243 GWh Negotiated Energy: 2,555 GWh Installed Capacity: 2,651 MW Net Extension : 2,092 km Net Extension: 2,017 km Installed Capacity: 640 MW Distributed Energy : 8,891 GWh ► The Group consists of approximately 6 thousand employees, attending over 6 million clients 2
  3. 3. Safety, number 1 value of AES Brasil Group 5 Values of AES Brasil ► Safety at first ► Search of excellence ► Acting with integrity ► Be fulfilled at work ► Honor commitment Reduction of Accidents 87 ► ► Tolerance Zero Program ► Safety with population: TV, Radio, Newspaper (mass media) ► 178 Over R$12 million invested Culture evolution of safety at AES Brasil Group 111 50 2006 2007 2008 Own Employees + Contracted 3
  4. 4. Recent changes Higher Operational Performance in 2008 ► FEC: lowest index in AES Eletropaulo’s history, 5.20 in 2008 ► Avoiding fraud: AES Eletropaulo regularized 450 thousand illegal connections since its privatization ► Energy generation: AES Tiete generated an average of 14% above its assured energy in the last 6 years Finance Restructuring by 2005 to 2008 ► Amortization schedule: Average term of 4.1 years in 2005 to 5.7 years in 2008 ► Reduction of financial cost: from 16.2% p.a. in 2005 to 13.3% p.a. in 2008 ► No relevant amortizations in 2008 and 2009 Higher Financial Result in 2008 ► Net income of R$1.7 billion ► Balance of R$ 3.0 billion 4
  5. 5. AES Brasil Results Investments – R$ million Ebitda – R$ million - 2% + 22% 714 2007 636 2006 779 2008 Net Debt – R$ million 3.234 2.490 2006 2007 2008 Net Income – R$ million - 43% 7.431 + 20% 1.695 1.415 5.070 2006 3.284 2007 4.222 2008 549 2006 2007 2008 5
  6. 6. Social Responsibility March, 2009 6
  7. 7. Social responsibility “Casa da Cultura e Cidadania” Project ► Over 4 thousand children, teenagers, and adults have been benefited ► Own and encouraged investments: approximately R$ 12 million in 2008 ► Activities of acting, dancing, circus arts, visual arts, music, gymnastics, courses of income generation, and education of safe use of electrical power and the right use of natural resources “Centros Educacionais Infantis Luz e Lápis” - Project ► 280 benefited children between 1 and 6 years old ► Own investments amounting R$ 1.5 million in 2008 ► Units: Santo Amaro and Guarapiranga 7
  8. 8. Social responsibility Volunteer Program ► Launched in December 2008; ► Objective: encourage employee to transform the low income communities and develop non governmental institutions; ► Over 1.4 thousand volunteers registered (25% of AES Brasil total employees). 8
  9. 9. Apimec March, 2009
  10. 10. AES Eletropaulo overview Concession Area ► Largest electricity distribution company in Latin America ► Serving 24 municipalities in the São Paulo Metropolitan area, including the capital ► ► Regional West 5.8 million of consumption units Regional North Regional South 4,141 directed employees Regional ABC Regional East 10
  11. 11. 2008 Consumption Total Consumption Evolution - (GWh)1 Consumption Share - (GWh)1 + 8% 38,183 6,527 39,932 41,243 2006 15.9% 35.0% 7,383 7,355 410 31,656 6.2% 32,577 2007 Free Clients 17.9% 25.0% 33,860 2008 Captive market Residential Industrial Commercial Others Free Clients 1 – Own consumption not considered 11
  12. 12. Investments amounted up to R$ 457 million in 2008 Investments 2008 Investments Breakdown – R$ million 562 433 378 10% 80 457 12% 47 45% 5% 69 10% 77 18% 482 364 410 301 Customer Service and System Expansion Customer Financed 2006 Capex 2007 2008 2009(e) Maintenance IT Loss Recovery Others Customer Financed 12
  13. 13. Best FEC in AES Eletropaulo history DEC1 e FEC2 3o 3o 3o 11.81 11.34 8.90 10.92 8.61 1o 8.49 8.41 5.64 5.20 2007 2008 9.20 7.87 5.52 2006 DEC (hours) 2007 2008 DEC Aneel Standard 2006 FEC (times) FEC Aneel Standard ABRADEE ranking position between 28 distributors with over 500 thousand consumers 1 – Duration of interruption Source: Aneel and Eletropaulo 2 – Interruption frequency 13
  14. 14. Operational indexes Collection Rate – % over gross revenue Loss Reduction – % - 1.3 p.p. 99.1 99.5 - 0.4 p.p. 97.8 5.0 5.1 6.5 6.5 2006 2008 11.6 6.5 2007 11.5 5.5 2006 12.0 2007 2008 Commercial Losses ► Cuts and Reconnection – Monthly Average (2007 X 2008) – Cuts: reduction from 112 thousand to 51 thousand – ► Fraud and Illegal Connections (2008) – 435 thousand inspections and 58 thousand frauds detected – 75 thousand illegal connections regularized Reconnection: reduction from 71 thousand to 36 thousand ► Bad debtor list 2008: 536 thousand 1 - Current Technical Losses used retroactively as reference Technical Losses1 14
  15. 15. 10% revenue increase Gross Revenue – R$ million Ebitda – R$ million 2003 Regulatory WACC (%) EMBI+ BR 4.63% 2007 2.21% Selic Target 16.50% 11.25% + 10% 17.1 6,852 2006 7,193 15.1 7,529 1,766 2007 2008 2006 1,566 1,696 2007 2008 15
  16. 16. 2008 Net income exceeded R$ 1.0 billion Dividend payout – R$ million Net Income – R$ million Dividends1 Yield2 Pay-out + 175% 100.3% 1,027 34.9% 14.4% 713 20.3% 3.2% 1,043 373 130 2006 101.5% 2007 2006 2008 715 2007 2008 ► Payment of 101.5% of net income in 2008 in form of dividends and IoE 1 - including proposed complementary dividend 2 - Gross amount 16
  17. 17. Maintenance of net debt reduction Net Debt Amortization Schedule – R$ million 2.1x 1.3x 3.7 1.2x 1,162 117 3.0 2.5 27 258 9 2006 2007 2008 2009 2010 117 117 117 250 524 250 250 117 50 2011 2012 2013 2014 National Currency (w/out FCESP) FCESP2 Net Debt (R$ billion) 117 375 125 2015 2016-2028 Foreign Currency3 Net Debt / AdjustedEbitda1 ► Extension of maturity of the Mathmetical Reserve Contract Adjustment with Fundação Cesp from 2022 to 2028 ► AEs Eletropaulo average debt cost is CDI + 0.36% p.a. 1 – Last 12 months of adjusted Ebitda 2 - Fundação Cesp = Pension Fund 3 – Exchange Rate in 12/31/2008 – US$ 1.00 = R$ 2.3370 17
  18. 18. One more year of awards ► Maintenance on ISE (Sustainability Index) for 2009 (BM&FBovespa – Nov.08) ► National Quality Award, company recognized as a reference on global management (National Quality Foundation – Oct.08) – Finalist company category ► Value Creation Prize for Shareholders in the Sector, in the category Eletric Energy (Abrasca Associação Brasileira das Companhias Abertas – Aug.08) ► Most acknowledged company on sustainability among companies from the (Revista Imprensa – May.08) public sector 18
  19. 19. Corporate Governance AES Eletropaulo X Ibovespa X IEE Daily Average Volume3 - R$ thousand 20081 +247.2% 120 26,066 25,677 2007 2008 110 100 90 +80.0% -11.6% 80 70 -29.9% 60 7,508 4,171 -41.2% 50 dec-071 feb-08 apr-08 130 jun-08 aug-08 oct-08 dec-08 2005 2006 20092 125 18.1% 120 ELPL6 IEE 115 110 3.6% 2.8% 105 100 IBOV 95 dec-082 1 - Index –12/29/07 = 100 jan-09 feb-09 2- Index – 12/30/08 = 100 mar-09 3 – Preferred shares Class B 19
  20. 20. Apimec March, 2009
  21. 21. AES Tietê overview Concession Area ► 30 year concession, expires in 2029 ► 10 hydroelectric plants in the State of Estado de São Paulo at Tietê, Pardo and Mogi Guaçu rivers ► ► UHE Bariri UHE Caconde UHE Ibitinga UHE Euclides da Cunha UHE Promissão UHE Limoeiro UHE Nova Avanhandava Since 2005, 100% of net income distributed as dividends and IoE UHE Água Vermelha UHE Barra Bonita Installed capacity 2,651 MW PCH Mogi-Guaçu 21
  22. 22. Operational disposal Energy Generation – MW average1 Billed Energy– R$ million 121% 118% 112% 13,148 573 330 1,740 1,680 11,108 1,510 13,421 1,130 1,424 1,543 11,108 11,138 2006 2007 2008 12,774 536 2006 2007 2008 Generation – MW Average AES Eletropaulo Generation / Assured Energy MRE Spot Market 1- Generated energy divided by the amount of period hours 22
  23. 23. Investments up to R$ 59 million in2008 Investments – R$ million 2008 Investments 101 New SHPP’s1 Investments 33 36% 59 47 22 28 12 12 22 28 12 51 8 20 3% 67 35 43 48% 12% 39 Equip. and Maint. 2004 2005 2006 1- SHPP Jaguari Mirim and Piabanha 2007 2008 New SHPP’s IT 2003 Environment 2009(e) 23
  24. 24. 17% increase in revenues Gross Revenues – R$ million Ebitda – R$ million + 14% + 17% 1,254 1,621 1,387 1,464 1,097 2006 2007 2008 1,099 2006 2007 2008 24
  25. 25. Sustainable profitability and dividend payment Net Income – R$ million Dividend Payout – R$ million Dividends1 Yield PN2 Pay-out 100 % 100 % 100 % 12 % 10 % 12 % 614 609 2006 2007 + 13% 692 614 609 2006 2007 2008 692 2008 ► 100% payout of net income throughout IoE and dividends 1 - including proposed complementary dividend 2 - Gross amount 25
  26. 26. Debt Net Debt 0.6x 0.7 0.6x 0.3x 0.7 0.4 ► Eletrobrás Debt – – – – 2006 2007 Balance: R$ 1,216 million Monthly amortization Maturity: in May 15, 2013 Interest of 10% p.a and monetary adjustment of IGP-M 2008 Net Debt (R$ billion) Net Debt / Ebitda 26
  27. 27. Another year of recognition ► Maintenance on 2009 Corporate Sustainability Index (BMF&Bovespa – Nov.08) ► One of the 20 model corporation on sustainability on Brazil (Guia de Sustentabilidade da Revista EXAME – Oct.08) ► One of the 150 best corporations to work (Revista Você S.A. / EXAME – Sep. 08) ► Best performance on electricity industry sector for Valor 1000 ► Most profitable corporation on the electricity industry (Jornal Valor Econômico – Jul.08) (Guia Maiores e Melhores (Revista EXAME – Jul.08) ► Most profitable company in the last 5 years among the 500 largest publicly companies in Brazil (Revista Conjuntura Econômica, da FGV – Jul.08)
  28. 28. Corporate governance Daily Average Volume - R$ thousand AES Tietê X Ibovespa X IEE – 12 Months1 9,097 2008 +54 % 120 3,566 100 +72 % - 12% - 11% 80 60 5,761 8,160 2,692 1,573 3,325 1,601 - 41% 4,188 5,531 5,468 2007 2008 1,724 40 Dec-071 Mar-08 Jun-08 Sep-08 Dec-08 2005 2009 120 2006 Preferred + 13% Common + 4% 100 + 3% GETI4 IEE 80 Dec-082 1 - Data Base: 12/28/07 = 100 Jan-09 Feb-09 IBOV 2 – Data Base: 12/29/08 = 100 28
  29. 29. The statements contained in this document with regard to the business prospects, projected operating and financial results, and growth potential are merely forecasts based on the expectations of the Company’s Management in relation to its future performance. Such estimates are highly dependent on market behavior and on the conditions affecting Brazil’s macroeconomic performance as well as the electric sector and international market, and they are therefore subject to changes.

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