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Apresentação Institucional 1Q11_En
 

Apresentação Institucional 1Q11_En

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    Apresentação Institucional 1Q11_En Apresentação Institucional 1Q11_En Presentation Transcript

    • InstitutionalMay, 2011 1
    • AES Brasil Group• Presence in Brazil since 1997• Comprised of seven companies in the sectorsof energy generation, distribution, trade andtelecommunications• 7.6 thousand AES Brasil People• Investments 1998-2010: R$ 6.9 billion• Good corporate governance practices• Sustainable practices in businesses• Safety as a main value• Strong cash generation capacity• 25% of minimum pay-out according to bylaws• Differentiated dividend practice since 2006: – AES Tietê: 100% pay-out on quarterly basis – AES Eletropaulo: 95% pay-out on semi- annually basis 2
    • AES Brasil widely recognized in 2009-2010 Quality and safety (AES Eletropaulo) (AES Sul) (AES Eletropaulo) (AES Eletropaulo) Management excellence (AES Eletropaulo) (AES Tietê) (AES Eletropaulo) (AES Tietê) (AES Tietê) Environmental concern (AES Tietê) (AES Brasil) 3
    • Shareholding Structure AES Corp BNDES C 50.00% + 1 share C 50.00% - 1 share P 0.00% P 100% T 46.15% T 53.85% Cia. Brasiliana de Energia C 71.35% C 76.45% C 99.99% C 99.00% P 32.34% P 7.38% C 98.25% C 99.99 %T 99.70% T 99.99% T 99.00% T 52.55% T 34.87% T 98.25% T 99.99 % AES AES AES AES AES AES Eletropaulo AES Sul Infoenergy Uruguaiana Tietê Eletropaulo Com Rio¹ Telecom¹ C = Common Shares P = Preferred Shares T = Total 41 – AES Atimus
    • Listed Companies Shareholding Composition Free Float Others¹ 16.1% 19.2% 56.2% 8.5% 24.2% 28.3% 39.5% 8.0% 51 – includes Federal Government and Eletrobrás shares in AES Eletropaulo and AES Tietê, respectively
    • AES Brasil is the second largest group in electric sector Ebitda1 – 2010 (R$ Billion) 4.5 4.2 3.4 3.0 2.6 2.0 1.6 1.6 1.5 0.6 CEMIG AES BRASIL CPFL NEOENERGIA TRACTEBEL CESP EDP LIGHT COPEL DUKE 1 Net Income – 2010 (R$ Billion) 2.3 2.2 1.8 1.6 1.2 1.0 0.6 0.6 0.2 0.1 CEMIG AES BRASIL NEOENERGIA CPFL TRACTEBEL COPEL EDP LIGHT DUKE CESP 61 – excluding Eletrobrás Source: Companies’ financial reports
    • AES Tietê is an important player among private energy generatorsGeneration Installed Capacity (MW) - 2010 Privately held companies 2% 2% 6% 4%  AES Tietê is the 2nd largest among private 5% 36% generation companies and 10th largest overall 6%  10 largest gencos correspond to 64% of the total 6% installed capacity 7%  There are three mega hydropower plants under 9% construction in the North region of Brazil with 18 GW 8% 8% 114 GW in installed capacity AES TIETÊ DUKE – Santo Antonio and Jirau (Madeira River): 7GW TRACTEBEL COPEL PETROBRÁS CEMIG – Belo Monte (Xingu River): 11GW ITAIPU CESP ELETRONORTE FURNAS Source: ANEEL (Regulator) – BIG (May, 2011) 7 CHESF OTHERS
    • AES Brasil is the largest distribution group in BrazilConsumption (GWh) - 2010 13% • 64 discos in Brazil distributing 419 TWh 40% 12% • AES Brasil is the largest electricity distribution group in Brazil: 10% – AES Eletropaulo: 43 TWh distributed, representing 10.3% of the Brazilian 7% 6% 6% market 6% – AES Sul: 9 TWh distributed,Consumers – Dec/2010 representing 2.2% of the Brazilian 12% market 30% 12%  There is a limited opportunity for competition in Brazil as discos are restricted to operate within their 12% concession areas 5% 7% 7% 16% 8
    • AES Tietê OverviewConcession Area  16 hydroelectric plants within the states of São Paulo and Minas Gerais  30-year concession valid until 2029; renewable for another 30 years  Installed capacity of 2,657 MW, with physical guarantee1 of 1,280 MW  All amount of energy that AES Tietê can sell in the long term is contracted to AES Eletropaulo until the end of 2015  As a pure energy generator, AES Tietê can only invest in its core business  328 employees 101 - Amount of energy allowed to be long term contracted
    • Energy sector in Brazil: supply perspectivesInstalled Energy Capacity in Brazil  Total installed capacity is expected to reach 167 GW by 2019  Brazilian energy matrix is not expected to materially change over the next 10 years 2010 2019 Natural gas; 8% Natural gas; 7% Biomass; 5% Biomass; 5% SHPP; 4% SHPP; 4% Oil; 3% Oil; 5% Nuclear; 2% Nuclear; 2% Others; 9% Coal; 1% Others; 14% Coal; 2% Hydro; 74% Hydro; 70% Diesel; 1% Diesel; 1% Wind; 4% Wind; 1% Steam; 1% Steam; 0% 112 GW* Annual Growth: 4.5% p.a. 167 GW 111 - Small Hydro Power Plant * Source: EPE (Energetic Research Company, May/2010)
    • Energy sector in Brazil: contracting environment Regulated Market Free Market Auctions Spot Market PPAs1 Trading Trading Distribution Companies Companies Companies Free Clients Free Clients • Main auctions (reverse auctions): Distribution – New Energy (A-5): Delivery in 5 years, 15- Companies 30 years regulated PPA1 – New Energy (A-3): Delivery in 3 years, 15- 30 years regulated PPA – Existing Energy (A-1): Delivery in 1 year, 5-15 years PPA 121 – Power Purchase Agreement
    • Billed energy growth due to high availability and bilateral contracts Energy Generation (MW average1) Billed Energy (GWh) 143% 136% 130% 14,706 14,729 125% 13,148 117 301 1,150 1,340 118% 331 1,680 2,331 1,980 1,979 4,276 1,665 1,599 1,612 11,138 11,108 11,108 3,645 1,512 52 643 108 566 424 587 3,015 2,526 2008 2009 2010 1Q10 1Q11 2008 2009 2010 1Q10 1Q11 2 Generation - MWAvg Generation / Physical Guarantee AES Eletropaulo MRE Spot market Other bilateral contracts 131- Generated energy divided by the amount of hours 2- Energy Reallocation Mechanism
    • Investments in the modernization of Nova Avanhandava, Ibitinga and Caconde power plants Investments1 (R$ million) 2011 Investments 158 89% 6 82 57 12 5% 6% 13 152 35 70 4 8 43 30 1 7 Equipment and Modernization 2009 2010 2011 (e) 1Q10 1Q11 2 New SHPPs Investments New SHPPs IT projects1 - Do not include capitalization of interests during plants modernization and development of projects 142 - Small Hydro Power Plants
    • Expansion of 550 MW of installed capacity through the Termo SP ProjectPlant localization (Canas/SP) • Project objectives - Expansion of installed capacity in the State of São Paulo - Offering competitively energy prices • Project features - Combined cycle using natural gas - 2 gas turbines, 2 heat recovery boilers and 1 steam turbine - Estimated investment of R$ 1.1 billion - Natural gas consumption: 2.5 million m3/day • Expected Timetable - May 26, 2011: Public hearing - July/11: Expectation of issuance of environmental license (expected) - 2nd half of 2011: Power auction realization (expected) Project Website: www.aestiete.com.br/termosaopaulo 15
    • Financial highlights* Net Revenue (R$ million) Ebitda (R$ million) : 3% CAGR : 5% CAGR 1,254 1,255 1,320 1,605 1,670 1,754 460 416 378 338 2008 2009 2010 1Q10 1Q11 2008 2009 2010 1Q10 1Q11(*) 2009 and 2010 numbers in IFRS 16
    • Practice of 100% pay-out on quarterly basis* Net Income and Dividend Pay-out1 (R$ million) 110% 117% 100% 12% 11% 11% 692 706 737 220 193 2008 2009 2010 1Q10 1Q11 Net income Pay-out Yield PN 171 – Gross amount (*) 2009 and 2010 numbers in IFRS
    • Debt profile Net Debt (R$ billion) Amortization Schedule – Principal (R$ million) 0.4x 0.3x 0.3x 0.3x 0.3x 300 300 300 0.5 0.4 0.4 0.4 0.4 2013 2014 2015 2008 2009 2010 1Q10 1Q11 Net debt Net debt / EBITDA • March, 2011: – Average debt cost in 1Q11 was 114% of CDI1 p.a. or 14% p.a. – Average debt maturity of 3.1 years – Net debt: R$ 0.5 billion – Net debt/EBITDA: 0.4x 181 – Brazilian Interbank Interest Rate
    • Capital Markets AES Tietê X Ibovespa X IEE Daily Avg. Volume (R$ thousand)120 1Q111110 +10% 13,922 +3% 13,253100 10,187 -1% 8,160 4,239 3,274 2,101 90 2,692 8,086 9,683 9,979 5,468 80 Dec-10 Jan-11 Feb-11 Mar-11 2008 2009 2010 1Q11 Preferred Common • Common shares and preferred shares listed on BM&FBOVESPA under the tickers GETI3 and GETI4 • ADRs at US OTC Market under the tickers AESAY and AESYY 191 – Index: 12/31/2010 = 100
    • AES Eletropaulo OverviewConcession Area  Largest electricity distribution company in Latin America  Serving 24 municipalities in the São Paulo Metropolitan area  Concession contract valid until 2028  Concession area with the highest GDP in Brazil  45 thousand kilometers of lines, 1.2 million electricity poles and 6.1 million consumption units in a concession area of 4,526 km2  Total distributed volume of 43 TWh in 2010  As a pure energy distributor, AES Eletropaulo can only invest within its concession area  5,629 employees 21
    • Energy sector in Brazil: demand perspectives Macroeconomic Scenario EPE’s1 Assumptions: GDP - Annual growth • Global financial sector recovery will not 2004-2008 2010-2014 2015-2019 take longer; World 4.6 4.2 4.0 Brazil 4.7 5.2 5.0 • Brazilian economic growth will outpace global average growth, even in an Brazilian Consumption Evolution (TWh) international context of moderate expansion; 5.0% p.a 633 • Emerging markets – especially China – 4.4% p.a. will grow faster than developed economies, positively affecting industrial 420 393 388 sector in Brazil; 358 378 331 346 • Income elasticity of energy demand (2010- 2019): 1.04 • Households growth: 2.2% p.a 2004 2005 2006 2007 2008 2009 2010 2019 221 - Source: EPE (Energetic Research Company)
    • Energy sector in Brazil: regulatory methodologyTariff Reset and Readjustment• Tariff Reset is applied each 4 years for AES Eletropaulo • Parcel A Costs − Next Jul/2011 − Non-manageable costs that totally − Parcel A: costs pass trough the tariff Energy pass- through to the tariff Purchase − Losses reduction improve the pass- − Parcel B: costs are set by ANEEL Transmission through effectiveness Sector Charges• Tariff Readjustment: annually − Parcel A costs pass trough the tariff Reference − Parcel B cost are adjusted by IGPM +/- X(1) Factor • Reference Company: Company (PMSO) – Efficient cost structure, determined by ANEEL (National Electricity Agency) X WACC Investment Remuneration • Remuneration Asset Base: Remuneration Asset Base – Applicable investments used to calculate the Investment Remuneration X Depreciation Depreciation (applying WACC) and Depreciation Regulatory Parcel A - Non-Manageable Costs Ebitda Parcel B - Manageable Costs 23 (1) X Factor: index that capture productivity gains
    • Consumption Evolution Total Market1 (GWh) 1Q11 Consumption Share1 (GWh) CAGR: 3% 6% 41,243 43,345 14%45,000  39,932 36% 36%40,000  7,911 7,355 7,38335,000  6% 18%30,000  13% 27%25,000  26%20,000  33,860 35,43415,000  32,577 11,119 18% 10,35710,000  1,813 2,041 5,000  8,544 9,078 0  Residential 2008 2009 2010 1Q10 1Q11 Commercial Free Clients Captive Market Free Clients Industrial Others 1 – Net of own consumption 24
    • Investments amounted R$ 156 million in 1Q11 Investments Breakdown (R$ million) Investments 1Q11800  720 682700  36 57 28600  3 457 5500  8 37 47400  9 654 684300  37 156200  410 98 5100  10 152 88 0  Maitenance 2009 2010 2011(e) 1Q10 1Q11 Customer Service System Expansion Capex Paid by Customers Losses Recovery IT Paid by the Clients Others 25
    • SAIDI & SAIFI SAIDI - System Average Interruption Duration Index SAIFI - System Average Interruption Frequency Index 8.49 7.87 10.92 7.39 10.09 9.32 9.20 11.86 10.68 12.66 9.91 5.64 6.17 5.43 6.29 5.44 2008 2009 2010 1Q10 1Q11 2008 2009 2010 1Q10 1Q11 5th 8th 1st 7th SAIDI (hours) SAIDI Aneel Reference SAIFI (times) SAIFI Aneel Reference ► 2011 SAIDI ANEEL Reference: 8.68 hours ► 2011 SAIFI ANEEL Reference: 6.93 times ABRADEE ranking position among the 28 utilities with more than 500 thousand customersSources: ANEEL, AES Eletropaulo and ABRADEE 26
    • Operational Indexes Losses (%) Collection rate (% over Gross Revenues) 102.4 102.5 11.6 11.8 11.5 101.1 99.6 10.9 10.8 98.5 5.1 5.3 4.4 5.0 4.3 6.5 6.5 6.5 6.5 6.5 2008 2009 2010 1Q10 1Q11 2008 2009 2010 1Q10 1Q11 Technical Losses ¹ Commercial Losses 271 – Current technical losses used retroactively as a reference
    • Financial Highlights* Net Revenues (R$ million) Ebitda (R$ million) 0% 5 % R: 1 R: 1 CAG CAG 2,413 9,697 2,500 10,000  8,786 9,000  8,000  7,193 2,000  1,775 1,566 7,000  6,000  1,500  5,000  4,000  1,000  2,260 2,423 549 3,000  498 2,000  500  1,000  0  0  2008 2009 2010 1Q10 1Q11 2008 2009 2010 1Q10 1Q11 28(*) 2009 and 2010 numbers in IFRS
    • Practice of 95% pay-out on semi-annually basis* Net Income and Dividend Payout1 (R$ million) 120.0% 114.4% 35.0% 101.5% 93.4% 28.6% 30.0% 100.0% 25.0% 80.0% 20.3% 20.4% 20.0% 60.0% 15.0% 40.0% 10.0% 20.0% 1,348 5.0% 1,156 1,027 0.0% 0.0% 223 282 2008 2009 2010 1Q10 1Q11 Net Income Pay-out Yield PN 291 – Gross amount (*) 2009 and 2010 numbers in IFRS
    • Debt ProfileNet Debt (R$ billion) Amortization Schedule – Principal (R$ million) 1.8x 1.4x 1.1x 0.9x 0.9x 1,105 3.0 578 2.7 2.4 2.4 2.4 926 53 391 442 309 319 343 277 286 69 49 60 64 46 526 56 64 273 294 331 373 244 221 222 1792008 2009 2010 1Q10 1Q11 2011 2012 2013 2014 2015 2016 2017 2018 from Net Debt/Ebitda Adjusted with Fcesp 2019 to Net Debt (R$ billion) 2028 Local Currency (ex FCesp) Fcesp² • March, 2011: – Average debt cost in 1Q11 was 108% of CDI1 or 13.9% p.a. – Average debt maturity of 6.9 years – Net debt: R$ 2.4 billion – Net debt/EBITDA of 0.9x adjusted with Pension Fund 30¹ Brazilian Interbank Interest Rate ² Pension Fund
    • Capital MarketsAES Eletropaulo X Ibovespa X IEE Average Daily Volume (R$ thousand)115 1Q11 1 0 25,677 +12% 24,496 0110 23,009 + 10% 0 21,960105 0100 - 1,0% 0 95 0 0 90 Dec-10 Jan-11 Feb-11 Mar-11 2008 2009 2010 1Q11 Ibovespa IEE AES Eletropaulo PN • Common shares and preferred shares listed on BM&FBOVESPA under the tickers ELPL3 and ELPL4 • ADRs at US OTC Market under the tickers EPUMY and ELPSY 311 – Index: 12/31/2010 = 100
    • Social Responsibility
    • Social Responsibility“Casa da Cultura e Cidadania” Project • Over 5.2 thousand children, teenagers, and adults have been benefited • Own and incentive investments: approximately R$ 17 million in 2010 • 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 • 7 operating units“Centros Educacionais Infantis Luz e Lápis” - Project • 300 benefited children between 1 and 6 years old • Own investments amounting R$ 2.1 million in 2010 • Units: Santo Amaro and Guarapiranga 33
    • Social Responsibility Volunteering Program Distributing Acting to Energy of Transform Good Specific social mobilization or Opportunities for volunteering in emergency campaign. social organizations, which are partners of AES Brazil Winter clothes, Christmas Co-workers can enroll in campaign, among others. volunteer activities available at AES Brazil volunteering portal since September/09 www.energiadobem.com.br• Launched in December, 2008;• Objective: to get the co-workers committed to the transformation of low income communities and development of non-governmental institutions;• 1,199 volunteers 34
    • Attachments
    • Costs and ExpensesCosts and operational expenses1 (R$ million) 415 433 351 187 201 112 246 82 78 239 214 34 29 48 49 2008 2009 2010 1Q10 1Q11 Energy Purchase, Transmission and Connection Charges, and Water Resources 2 Other Costs and Expenses 1 – Do not include depreciation and amortization 2 - Personnel, Material, Third Party Services and Other Costs and Expenses 36
    • Costs and Expenses Costs and operational expenses1 (R$ million) 6,745 6,431 5,537 1,255 1,306 1,440 5,125 5,490 4,097 1,665 1,707 342 348 1,323 1,359 2008 2009 2010 1Q10 1Q11 Energy Supply and Transmission Charges PMS and Others Expenses²1 – Do not include depreciation and amortization 2 - Personnel, Material, Third Party Services and Other Costs and Expenses 37
    • Expansion Requirement of 15% Increase installed capacity in Sao Paulo State by 15% (400 MW), either in greenfield projects or through long term purchase agreement with new plants The obligation was supposed to be accomplished by December 2007, however AES Tietê was not able to comply with this requirement due to the following restrictions: – Insufficient remaining hydro resources within the State of São Paulo – Environmental restrictions – Insufficiency of gas supply / timing issue – More restricted regulation on energy sale established by the New Model of Electric Sector (Law # 10,848/2004) which eliminated the self dealing• In August 2008, Aneel informed that the issue is not linked to the concession• On July 27, 2009, AES Tietê was notified by the State Government Attorney’s Office to present arguments on compliance with the expansion obligation – The Company filed a response on July, 29th, which exhausts the procedure for notification. Possible deployment depends on new manifestation of the Prosecution• Popular law action against Federal Government, Aneel, AES Tietê, and Duke – 2008 – In October, defense filed on first instance by AES Tietê; In December, the author replied AES Tietê defense – 2010 – In September, due to the plaintiffs failure to specify the individuals that should be named as Defendants, a favorable decision was rendered by the 1st Instance Court (but there can be appeals) 38
    • Eletrobras Lawsuit State-owned Eletropaulo was Eletrobras spun-off into four requested the Eletrobras, after companies and, beginning of the winning the according to our Eletrobras and Eletrobras appraisal Stated-owned interest understanding CTEEP appealed requested the 1st procedure , which Eletropaulo calculation based on the to the Superior level of court is under 5th Civilborrowed money discussion, filed spin-off Court of Justice judge to appoint Court analysis. from Eletrobras an Execution Suit agreement, the (SCJ) an expert AES Eletropaulo to collect the due discussion was and CTEEP should amount transferred to be notified during CTEEP next months Next Steps: 1 - The auditing procedure will be Nov/86 Dec/88 Jan/98 Apr/98 Sep/01 Sep/03 Oct/05 Jun/06 May/09 Feb/10 Dec/10 concluded in at least 6 months 2 - After conclusion of the expert work, the 1st level of court decision will be released State-owned The 2nd level of Eletropaulo and Privatization 3 - Appealing to court excluded The SCJ decided The Judge Eletrobras event . State- the 2nd level of AES Eletropaulo to send the appointed the disagreed on how owned court from the Execution Suit expert who will to calculate Eletropaulo discussion based back to the 1st indicate the amount 4 - Appealing to interest over that became AES on the spin-off level of court and the debtor the 3rd level of loan and a lawsuit Eletropaulo agreement court was started 39
    • Shareholders AgreementOn Dec 2003 AES and BNDES signed a Shareholders’ Agreement to regulate their relationship as shareholders ofBrasiliana and its controlled companies. The Agreement is available at www.aeseletropaulo.com.br/riShareholders can dispose its share at any time, considering the following terms:Right of 1st  Any party with an intention to dispose its shares should first provide the other party the right to buyrefusal that participation at the same price offered by a third partyTag along  In the case of change in Brasiliana’s control, tag along rights are triggered for the followingrights companies (only if AES is no longer controlling shareholder): – AES Eletropaulo: Tag along of 100% in its common and preferred shares – AES Tietê: Tag along of 80% in its common shares – AES Elpa: Tag along of 80% in its common sharesDrag along  Once the offering party exercises the Drag Along clause, offered party is obligated to dispose of allrights its shares at the time, if the Right of 1st Refusal is not exercised by offered party 40
    • Brazilian Main Taxes AES Tietê AES Eletropaulo• Income Tax / Social Contribution: • Income Tax / Social Contribution: – 34% over taxable income – 34% over taxable income• ICMS (VAT tax) • ICMS: 22% over Revenue (average rate) – deferred tax – Residential: 25%• PIS/Cofins (sales tax): – Industrial and Commercial: 18% – Eletropaulo´s PPA: 3.65% over Revenue – Public Entities: free – Other bilateral contracts: 9.25% over Revenue • PIS/Cofins: minus Costs – 9.25% over Revenue minus Costs 41
    • Contacts: ri.aeseletropaulo@aes.com ri.aestiete@aes.com + 55 11 2195 7048The statements contained in this document with regard to the business prospects, projected operating and financialresults, and growth potential are merely forecasts based on the expectations of the Company’s Management inrelation to its future performance. Such estimates are highly dependent on market behavior and on the conditionsaffecting Brazil’s macroeconomic performance as well as the electric sector and international market, and they aretherefore subject to changes.