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    Apresentao institucional 4_t09_eng_final_30032010 Apresentao institucional 4_t09_eng_final_30032010 Presentation Transcript

    • Institutional March, 2010
    • AES Brasil Group 7 million clients ... with a 2009 result: Market Share 6 thousand AES People R$ 3.2 billion (Ebitda) R$ 1.9 billion (net income) Discos 14.6% 85.4% Gencos 3.0% 97.0% Investments 1998-2009: R$ 5.8 billion after privatization AES Brasil Disco Genco Trading Co. Telecom Others 2
    • Shareholding structure AES Corp BNDES C 50.00% + 1 share C 50.00% - 1 share C = Common Shares P 0.00% P 100% T 46.15% T 53.85% P = Preferred Shares T = Total Cia. Brasiliana de Energia C 76.46% C 71.35% C 99.99% C 100.00% C 98.26% P 7.43% P 32.34% C 99.99 % T 99.76% T 99.99% T 100.00% T 98.26% T 34.80% T 52.55% T 99.99 % AES AES AES AES AES AES AES EP Sul Infoenergy Uruguaiana Com RJ Eletropaulo Tietê Telecom 3
    • Shareholding composition Federal Government or Free Float Eletrobras1 16.1% 19.2% 8.0% 56.2% 24.2% 28.3% 7.9% 39.5% 1 – Federal Government and Eletrobrás correspond to AES Eletropaulo and AES Tietê, respectively 4
    • Energy sector agents in Brazil Ministry of Mines and Energy (MME) (Set Guidelines and Policies) National Council of Energy Policy (CNPE) (Formulates Policies) Electricity Sector Brazilian Electricity Energy Research Surveillance Regulatory Agency Enterprise (EPE) Committee (CMSE) (ANEEL) (Monitors energy supply) (Ruling, Inspection & Auditing, (Generation & Transmission Monitoring, and Mediation) Planning) Distribution companies Electric Energy Transmission System Operator Commercialization companies (ONS) Chamber (CCEE) Generation Generator resources Pricing and clearing of scheduling and dispatch energy transactions companies Trading companies 5
    • Energy sector in Brazil (Contracting Environment) Regulated Market Free Market Auctions Spot Market PPAs1 Distribution Companies Trading Companies Trading Companies Free Clients Free Clients • Main auctions (reverse auctions): Distribution – New Energy (A-5): Delivery in 5 years, 15-30 Companies years regulated PPA – 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 6 1 – Power Purchase Agreement
    • Discos regulatory methodology (Tariff Reset and Readjustment) Tariff Reset and Readjustment • Tariff Reset is applied each 3 to 5 years • Parcel A Costs − AES Eletropaulo: each 4 years − Non-manageable costs that totally Energy pass- through to the tariff − AES Sul: each 5 years Purchase − Losses reduction improve the pass- − Parcel A costs pass trough the tariff Transmission through effectiveness − Parcel B costs are set by ANEEL Sector Charges • Tariff Readjustment: annually Reference • Reference Company: − Parcel A costs pass trough the tariff Company – Efficient cost structure, determined by (PMSO) − Parcel B cost are adjusted by IGPM +/- X(1) Factor ANEEL (National Electricity Agency) X WACC Investment Remuneration • Remuneration Asset Base: Remuneration Asset – Applicable investments used to Base calculate the Investment Remuneration X Depreciation Depreciation (applying WACC) and Depreciation Regulatory Parcel A Non-Manageable Costs Ebitda (1) X Factor: index that capture productivity gains Parcel B Manageable Costs 7
    • AES Eletropaulo overview Concession Area • Largest electricity distribution company in Latin America • Serving 24 municipalities in the São Paulo Metropolitan area São Paulo Metropolitan Area • Concession area with the highest GDP in Brazil: – 17.1% of the Brazilian GDP and 50.3% of São Paulo’s state GDP • 46 thousand kilometers of lines • 4,526 km2 of concession area • 1.1 million electricity poles • 4,360 employees Regional West Regional North Regional South Regional ABC • 5.9 million of consumption units Regional East • Total distributed volume of 41 TWh in 2009 Note – Data as of Dec. 2009, except GDP which is 2006 9
    • Ranking¹ for energy distributors 8.000 7.000 Net Revenue - R$ million 6.000 5.000 2007 2008 4.000 3.000 2.000 Net Revenue 1st 1st 1.000 CPFL PAULISTA BANDEIRANTE PIRATININGA ELETROPAULO AMPLA COELBA ELEKTRO COELCE CELESC COPEL CELPE CEMIG CELG LIGHT CPFL AES 1.800 1.600 Ebitda - R$ million 1.400 1.200 1.000 800 Ebitda 2nd 1st 600 400 200 CPFL PAULISTA ELETROPAULO PIRATININGA AMAZONAS COELBA ELEKTRO AMPLA CEMAR COELCE COPEL CEMIG CELPE LIGHT RGE CPFL AES 10 1 – Source: ABRADEE (Brazilian Association of Energy Distributors); research among 48 energy distributors in Brazil.
    • Consumption evolution Total Market - (GWh)1 2009 Consumption Share - (GWh)1 + 8% 6% 17% 41,243 41,269 36% 39,932 38,183 7,383 6,832 7,355 15% 6,527 410 26% 31,656 32,577 33,860 34,436 Residential 2006 2007 2008 2009 Commercial Free Clients Captive market Free Clients Industrial Others 1 – Own consumption not considered 11
    • Most important consumption classes Residential - (GWh) Commercial - (GWh) +4,1% +4.4% 3,978 15,015 2,902 10,752 3,742 3,801 14,427 2,657 2,625 10,301 2,567 3,494 1Q09 2Q09 3Q09 4Q09 2008 2009 1Q09 2Q09 3Q09 4Q09 2008 2009 Industrial - (GWh) Captive Market¹ - (GWh) - 8.0 % +1.7% 6,559 1,695 34,436 6,032 9,084 33,860 1,546 8,742 1,465 8,493 1,327 8,118 1Q09 2Q09 3Q09 4Q09 2008 2009 1Q09 2Q09 3Q09 4Q09 2008 2009 1 – Own consumption not considered 12
    • Investments amounted up to R$ 516 million in 2009 Investments Breakdown – R$ million Investments 2009 691 7% 6% 54 5% 516 37 15% 44% 457 433 47 69 478 637 23% 410 364 Customer Service and Maintenance System Expansion Customer Financed IT 2007 2008 2009 2010(e) Loss Recovery Others Capex Paid by customers 13
    • SAIDI & SAIFI SAIDI - System Average Interruption Duration Index SAIFI - System Average Interruption Frequency Index 11.81 8.61 8.49 11.34 10.92 8.41 7.87 10.09 7.87 8.90 9.20 11.86 5.52 5.64 5.20 6.17 2006 2007 2008 2009 2006 2007 2008 2009 3o 3o 5o 3o 1o 1o SAIDI (hours) SAIDI Aneel Target SAIFI (times) SAIFI Aneel Target ABRADEE ranking position between 28 distributors with over 500 thousand consumers Source: ABRADEE, ANEEL e AES Eletropaulo 14
    • Operational indexes Collection Rate – % over gross revenue Losses – % 2.0 p.p. - 0.2 p.p. 101.1 99.1 99.5 97.8 12.0 11.8 11.5 11.6 5.5 5.0 5.1 5.3 6.5 6.5 6.5 6.5 2006 2007 2008 2009 2006 2007 2008 2009 Commercial Losses Technical Losses¹ • Disconnections and Reconnection – Monthly Average (2008 X • Fraud and Illegal Connections (2009) 2009) – 336,000 inspections e 41,800 frauds detected – Disconnections: increase from 33 thousand to 80 thousand – 80,200 illegal connections regularized – Reconnection: increase from 32 thousand to 56 thousand • Past due bill credit report (2009 average): 190 thousand 1 - Current Technical Losses used retroactively as reference 15
    • Net revenue of R$ 8.0 billion in 2009 Net Revenue – R$ million Ebitda – R$ million 2003 2007 EMBI+ BR 4.63% 2.21% Regulatory WACC (%) Selic target 16.50% 11.25% + 17.5% 17.1 8,050 15.1 7,529 7,193 6,852 1,766 1,696 1,573 1,566 2006 2007 2008 2009 2006 2007 2008 2009 16
    • Net income of R$ 1,1 billion in 2009 Net Income – R$ million Dividend payout1 – R$ million Dividends Pay-out Yield PNB + 185% 1,063 100.3% 101.5% 101.5% 1,027 34.9% 20.4% 14.4% 20.3% 713 3.2% 1,080 1,043 373 715 130 2006 2007 2008 2009 2006 2007 2008 2009 • 25% of minimum pay-out according to bylaw • Practice on semi-annual basis of maximum permitted dividend distribution, since 2006 results 1 – Gross amount 17
    • R$ 993 million paid as dividends in 2009 Managerial Cash Flow – R$ million 2008 2009 Initial Cash 1,334 1,536 Operating Cash Flow 2,019 2,332 Investments (374) (482) Net Financial Expenses (285) (291) Net Amortizations (94) (320) CESP Foundation (192) (224) Income Tax (295) (309) Dividends (577) (993) Free Cash Flow 201 (286) Final Cash 1,536 1,249 18
    • Debt profile Net Debt Amortization Schedule – R$ million 1.8x 1.8x 1.8x 1,714 1.5x 3.7 3.0 3.2 1,360 2.5 609 85 340 347 377 311 262 65 69 182 84 233 61 524 79 74 89 354 250 275 278 293 108 183 144 2010 2011 2012 2013 2014 2015 2016 2017 2018-2028 2006 2007 2008 2009 Net Debt (R$ billion) Local Currency (ex FCesp) FCesp1 Net Debt / EBITDA Adjusted with FCesp • December, 2009: – Average debt cost is 87.1% of CDI² per year which means an effective rate of 8.7% per year – Average debt maturity is 10.4 years 1 - FCesp = Pension Fund 2 - Brazil’s Interbank Interest Rate 19
    • Capital market AES Eletropaulo1 X Ibovespa X IEE Average Daily Volume3 - R$ thousand 2009 D 83% 180 26,066 25,677 C 60% 160 B 21,960 59% 140 A 120 7,508 100 80 Dec-082 Mar-09 Jun-09 Sep-09 Dec-09 2006 2007 2008 2009 ELPL6 IEE IBOV • A) 02/25/2009 – Finsocial and São Paulo municipality agreement • B) 04/16/2009 – Public Consultation of Tariff Reset • C) 06/16/2009 – Second Periodic Tariff Reset Revision • D) 10/18/2009 – Parcel A discussion on media 1 – Preferred shares class B adjusted by the dividends declared in the related period 2 – Index: 12/30/08 = 100 3 – Preferred shares class B 20
    • AES Tietê overview Concession Area • 30 year concession, expires in 2029, renewable for another 30 years • 10 hydroelectric plants in the State of São Paulo at Tietê, Pardo and Mogi Guaçu rivers Atlantic Ocean • Installed capacity of 2,657 MW, with physical guarantee1 of 1,280 MW Name and Installed Capacity of AES Tietê’s Plants: Água Vermelha (1,396 MW) Ibitinga (132 MW) • 100% of physical guarantee contracted with AES Nova Avanhandava (347 MW) Euclides da Cunha (109 MW) Eletropaulo until the end of 2015 Promissão (264 MW) Caconde (80 MW) Barra Bonita (141 MW) Limoeiro (32 MW) • 315 employees Bariri (143 MW) Mogi-Guaçu (7 MW) 1 - Amount of energy allowed to be long term contracted 22
    • Operational Performance Energy Generation – MW average Billed Energy – GWh 2010 Prices (R$ / MWh) 130% AES Eletropaulo 152.00 121% 118% MRE 8.51 112% Spot (2009 avg.) 38.74 1,662 1,543 1,510 13,421 14,436 1,424 13,148 12,774 956 573 330 536 1,740 1,680 2,372 1,130 11,108 11,138 11,108 11,108 2006 2007 2008 2009 2006 2007 2008 2009 Generation – MW Avg. Generation / Physical Guarantee1 AES Eletropaulo MRE2 Spot Market 1 - Generated energy divided by the amount of period hours 2 - Energy Reallocation Mechanism 23
    • Investments Investments – R$ million 2009 Investments New SHPPs1 Investments 68 24% 1 59 57 51 54% 47 20% 8 20 13 12 2% 67 35 43 44 39 Equip. and Maint. New SHPPs 2006 2007 2008 2009 2010(e) IT Environment 1- Small Hydro Power Plants Jaguari Mirim and Piabanha 24
    • 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 • Popular law action against Federal Government, Aneel, AES Tietê, and Duke – Status: Defense filed on first instance in October 2008 by AES Tietê. In December, 2008, the author replied AES Tietê defense and, since this, both parties are waiting judge movement about the necessity of proves production • 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 25
    • Projects - expansion requirement AES Tietê has been seeking opportunities to increase its installed capacity to comply with the 15% increase requirement in the State of São Paulo • 6MW of co-generation by biomass contracted for 15 years (initiating in 2010) Concluded Concluded (PPA1)) (PPA1 • 7 MW of hydropower generation through SHPPs2 in Jaguari Mirim river In Progress In Progress – SHPP São José (4 MW) is expected to begin the operation in 2H10 – SHPP São Joaquim (3 MW) is expected to begin the operation in 2H10 Under Under • 500 MW of natural gas fired thermo plant Evaluation Evaluation – Location has been defined – Initiation of the environmental licensing process, with entry on CETESB in March, 2010 • 32 MW of hydropower generation through SHPPs under technical and economic viability study 26 1 - Power Purchase Agreement 2 - Small Hydro Power Plant
    • Net revenue of R$ 1.7 billion in 2009 Net Revenue – R$ million Ebitda – R$ million + 20% + 15% 1,670 1,605 1,260 1,449 1,254 1,387 1,097 1,099 2006 2007 2008 2009 2006 2007 2008 2009 27
    • Sustainable profitability and dividend payment Net Income – R$ million Dividend Payout1 – R$ million Dividends Pay-out Yield PN + 27% 100 % 100 % 100 % 100 % 11% 12% 10% 12% 780 780 692 692 614 609 614 609 2006 2007 2008 2009 2006 2007 2008 2009 • 25% of minimum pay-out according to bylaw • Practice on quarterly basis of maximum permitted dividend distribution, since 2006 results 1 - Gross amount 28
    • Strong cash flow Managerial Cash Flow – R$ million 2008 2009 Initial Cash 634 836 Operating Cash Flow 1.219 1.241 Investments (52) (55) Net Financial Expenses (49) (48) Net Amortization (194) (224) Income Tax (67) (308) Dividends and Interest on Equity (656) (829) Free Cash Flow 202 (223) Final Cash – Parent Company 836 613 Final Cash of Subs. And Assoc. Comp. 5 2 Final Cash 840 615 29
    • Debt Net Debt 0.7x 0.6x • Eletrobras Debt 0.6x 0.3x 0.3x – Balance: R$ 969 million 0.7 0.7 0.7 – Monthly amortization 0.4 0.4 – Maturity: May 15, 2013 – Interest of 10% p.a. and monetary adjustment of IGP-M 2005 2006 2007 2008 2009 Net Debt (R$ billion) Net Debt / Ebitda 30
    • Capital market AES Tietê1 X Ibovespa X IEE Daily Average Volume - R$ thousand 10,187 20092 9,067 8,160 190 + 83% 8,086 170 5,760 + 59% 5,531 150 5,468 + 41% 130 4,188 110 3,566 2,692 2,101 90 1,572 70 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 2006 2007 2008 2009 GETI4 IBOV IEE Preferred Common (GETI4) (GETI3) 1 – Shares were adjusted by declared dividend of the period under analysis 2 – Data Base: 12/30/08 = 100 31
    • Social Responsibility and Environmental Actions
    • Social responsibility Volunteering Program distributing Acting to Enterprising in Energy of Transform the Community Good Specific social mobilization or Opportunities for volunteering in Acknowledgement and emergency campaign. social organizations, which are support of projects for the partners of AES Brazil development of social organizations. Winter clothes, Christmas Co-workers can enroll in campaign, among others. volunteer activities available at Volunteers may submit AES Brazil volunteering portal projects to help other since September/09 organizations develop. Launch www.energiadobem.com.br scheduled for January/10. • Launched in December, 2008; • Objective: to get the co-workers committed to the transformation of low income communities and development of non-governmental institutions; • 1,137 volunteers 33
    • 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$ 14 million in 2009 • 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 • 6 units operating “Centros Educacionais Infantis Luz e Lápis” - Project • 302 benefited children between 1 and 6 years old • Own investments amounting R$ 1.5 million in 2009 • Units: Santo Amaro and Guarapiranga 34
    • Environmental actions • Carbon Credit – Clean Development Methodology (CDM) approved by United Nations Framework Convention on Climate Change (UNFCCC), allows up to 10,000 hectare reforestation on reservoir borders – AES Tietê is seeking for good business opportunities, and has not transacted credits so far • Reforestation – One million of seedlings production in seed-plot of Promissão hydroelectric power plant – Donation of seedlings to the society, rural producers, city halls, and non-governmental organizations • Fish Farming – Reproduction of 2.5 million fishes in 10 reservoirs of AES Tiete's plants • Archeological Park – Community involvement into archeological artifacts conservation and better understanding of its scientific importance – Social access to the archeological history of the reservoir area 35
    • Contacts: ri.eletropaulo@aes.com ri.aestiete@aes.com + 55 11 2195 7048 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.