Geti 2 t10_call_final_english
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Geti 2 t10_call_final_english Geti 2 t10_call_final_english Presentation Transcript

  • 2Q10 Results August, 2010
  • Operational Operational  Energy Generation 33% higher than physical guarantee in 2Q10  Ebitda reached R$ 299 million, with margin of 74%, in 2Q10 Financial Financial  Provision in the amount of R$ 9 million related to administrative lawsuit regarding federal tax compensation  Net income of R$ 172 million in 2Q10  1st debenture issuance in the amount of R$ 900 million and pre-payment of the only outstanding debt on May 4, 2010. Exchange of debt brought savings of approximately R$ 14 million in the quarter.  Dividend distribution in the amount of R$ 172 million related to 2Q10, representing R$ Dividends Dividends 0.43 for ordinary shares and R$ 0.47 for preferred shares. Subsequent Subsequent  Annual readjustment of bilateral contract with AES Eletropaulo by IGP-M at 5.17%; the Event Event energy price increased from R$ 152.00/MWh to R$ 159.85/MWh  The Board decided to: (i) not file an autonomous claim against Aneel; and, (ii) summon an Extraordinary General Meeting to deliberate on the matter 2
  •  AES Tietê reservoirs levels closed at 89% and the stored energy in the southeast region was kept well above the Risk Aversion Curve in 2Q10 Reservoirs Level- (%) Risk Aversion Curve – Southeast Submarket 80 % of Maximum Stored Energy 97.2 60 90.2 94.3 94.2 91.0 73.3 79.0 40 70.0 65.5 72.6 54.5 40.9 20 - Southeast South Northeast North Jan Apr Jul Out 2Q10 2009 2010 CAR 2009 2Q09 Source: National Electric System Operator – ONS 3
  •  Maintaining high operational availability. Generated energy 38% higher than physical guarantee in 1H10 Energy Generation – MW Avg.1 138% 130% 121% 119% 115% 1,809 112% 1,665 1,545 1,512 1,467 1,425 2005 2006 2007 2008 2009 1H10 Generation – MW Avg. Generation / Physical Guarantee 1- Generated energy divided by the amount of period hours 4
  •  Billed energy was 5% higher due to greater volume of secondary energy in 2Q10 Billed Energy – GWh Spot Market 7,880 10 % 7,135 949 MRE1 463 5% 1,146 1,146 132 3,605 Other Bilateral Contracts 1,105 3,438 33 239 306 5,653 433 19 580 AES Eletropaulo 5,534 80 2,639 2,747 1H09 1H10 2Q09 2Q10 5 1 – Energy Reallocation Mechanism
  •  Investments of R$ 16 million in maintenance and modernization of power plants and R$ 1 million in Jaguari Mirim SHPPs1 in 2Q10 Investments – R$ million Investments 2Q10 New SHPPs 1%1% Investments 67 7% 59 57 9 20 13 91% 58 16 44 9 39 1 4 15 5 Equip. and Maint. New SHPPs 2008 2009 2010(e) 2Q09 2Q10 IT Environment 6 1 – Small Hydro Power Plants
  •  Opportunities to increase installed capacity: Concluded Concluded  6 MW of co-generation through biomass, contracted for 15 years from 2010 (PPA1) (PPA1) Under Under  7 MW of hydro generation through SHPPs2 in Jaguari Mirim River Construction Construction – São José SHPP (4 MW) has an estimated start-up in 1H11 – São Joaquim SHPP (3 MW) has an estimated start-up in 1H11 Under  550 MW of thermo generation through natural gas Under Development Development – Location has been defined in Nov/2009 – Environmental licensing process initiated in March 2010 – Technical feasibility study in advanced stage  22 MW of hydro generation through one SHPP, in stage of technical and economic feasibility studies 7 1 – Power Purchase Agreement 2 – Small Hydro Power Plants
  •  Bilateral Contract with AES Eletropaulo 2000 - 2003 2005 - 2007 2010  2000  2005  August, 2010 – Aneel1 approved the bilateral – Aneel denied approval to the – The administration of AES contract signed by the Company amendment Eletropaulo has chosen to and AES Eletropaulo valid until – AES Eletropaulo placed a request withdraw the lawsuit the end of 2015 for an administrative remedy – The administration of AES Tietê appeal at Aneel and filed a decided not to file an lawsuit against Aneel autonomous claim against Aneel regarding the extension of the  2003  2007 contract due to the remote – Aneel dismissed AES chance of obtaining a final — AES Tietê and AES Eletropaulo Eletropaulo’s administrative decision before 2015; and (ii) signed an amendment to the remedy appeal and upheld its summon an Extraordinary bilateral contract, submitted to decision of denying the General Meeting to deliberate on Aneel for approval, which amendment the matter extended its duration to June 14, 2028 8 1 – Brazilian Electric Energy Agency (Regulator)
  •  Allocation to 1Q10 of part of annual volume to be sold to AES Eletropaulo contributed for 3% reduction in net revenues Net revenues – R$ million 862 832 26 4% 17 36 5 3% 414 403 791 819 20 10 2 10 392 383 1H09 1H10 2Q09 2Q10 AES Eletropaulo Other Bilateral Contracts CCEE / MRE 9
  •  Costs were impacted by provision related to administrative lawsuit regarding federal tax compensation, increase on energy purchased for resale and spending on equipment and third parties Costs and operational expenses1 – R$ million 186 165 16 57 10% 67 12% 103 90 11 Operational Provisions 30 Other Costs and Expenses2 108 103 37 60 55 Energy Purchase, Transmission and Connection Charges, and Water Resources 1H09 1H10 2Q09 2Q10 1 – Do not include depreciation and amortization 2 - Personnel, Material, Third Party Services and Other Costs and Expenses 10
  •  8% reduction on Ebitda, with 74% margin Ebitda – R$ million 80% 78% 78% 74% 2% 8% Ebitda Margin 677 667 325 299 1H09 1H10 2Q09 2Q10 11
  •  Negative impact due to 1,24 b.p. increase in IGP-M from April to May, 4th 2010. Disregarding debt exchange, the financial result would be reduced in R$ 14 million Financial Result – R$ million 1H09 1H10 2Q09 2Q10 (4) (7) 378% 217% (21) (22) 12
  •  Company registered a net income of R$ 172 million in 2Q10 and will distribute 100% of the result Net Income – R$ million 100% 100% 100% 100% 1% 414 Pay-out 411 13% 199 172 1H09 1H10 2Q09 2Q10 13
  •  Cost of debt was reduced from IGP-M + 10% p.a. to CDI + 1,20% p.a. Net Debt 2Q10 Characteristic of 1st debenture issuance  R$ 900 million 0.3x 0.3x 0.3x 0.4x  Period of 5 years  CDI + 1,20% p.a.  Biannual basis interest payment 0.4 0.4 0.4 0.4  Annual amortization and equal installments in the 3rd, 4th and 5th years  Purpose: Pre-payment of Eletrobrás Debt 2008 2009 2Q09 2Q10 Net Debt Net Debt/ Ebitda 14
  •  Growth of 4% in operational cash flow generation Consolidated Managerial Cash Flow – R$ million 2Q09 1Q10 2Q10 Initial Cash 814 615 574 Operational Cash Generation 332 368 346 Investments (9) (8) (16) Net Financial Expenses (13) (12) (4) Net Amortization (55) (60) (34) Income Tax (20) (328) (33) Free Cash Flow 236 (41) (259) Dividends and Interest on Equity (409) 0 (379) Final Cash 641 574 455 15
  •  40% growth in daily average volume traded in 2Q10 AES Tietê X Ibovespa X IEE Daily Avg. Volume - R$ thousand - 12 months 14,231 140 10,187 130 + 18% 8,160 120 + 18% 9,583 110 8,086 100 + 2% 5,468 90 80 GETI4 IEE Jun-091 Sep-09 Dec-09 Mar-09 Jun-10 4,648 2,692 2,101 IBOV 110 2Q10 105 + 8% 2008 2009 2Q10 100 - 1% 95 Preferred Common 90 -13% 85 80 Mar-102 Apr-10 May -10 Jun-10 16 1 – Index: 06/30/09= 100 2 - Index: 03/31/10 =100
  • 2Q10 Results 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. .