2. Disclaimer
The statements contained in this report regarding the outlook on business,
estimations on financial and operational results and growth prospects for COMGÁS
are merely estimations and, as such, are based exclusively on management
expectations regarding future events and tendencies, that affect or may affect the
business. These estimations are subject to many risks and uncertainties and are
made considering the information currently available, and depend, substancially on
market conditions, the Brazilian economys performance, the business sector and
international markets, and are therefore subject to change without pior notice.
Because of these uncertainties, the investor should not make any investment
decisions based on these estimations and declarations on future operations.
4. 4
Histórico
The Company’s Course– Over 100 years of history
The British company San Paulo
Gas receives authorization to
explore the concession of public
services of ilumination in São
Paulo;
Cosan aquires
60.1% of
Comgás’
social capital
from British
Gas (BG)
2012
2011
Comgás reached
customer
1,000,000;
1996
The company goes
public and is
traded on the São
Paulo Stock
Exchange
(Bovespa)
beginning in 1997;
1959
The company is
nationalized and
renamed Companhia
Paulista de Serviços
de Gás (Comgás);
1872
1912
The Canadian company
Light assumes
ownership;
1999
Privatization: The
consortium formed by
British Gas and Shell
obtain a controlling stake
in Comgás;
Comgás is consolidated as
Brazil’s largest natural gas
distributor responsible for
more than 30% of the sales
of natural gas in the
country;
2010
5. Regulada ...
5
Comgás’ Highlights
Diversified client
base
Impressive track
record: Significant
growth with profibility
and sound capital
structure
Solid regulatory
framework and
transparent concession
scheme
Favorable
prospects for
natural gas in
Brazil
Premium asset
located in a strategic
concession area
Substantial growth in
the residential
segment
7. Comgás: uma combinação de competências e princípios
7
SHELL BRAZIL
HOLDING BV
6.34%
INTEGRAL
INVESTMENTS BV
11.86%
SHELL GAS BV
100%
OTHER
SHAREHOLDERS
(free float)
21.75%60.05%
Note: On November 5th, 2012, Cosan concluded the acquisition of a 60,05% of participation in Comgás from the BG Group for the
sum amount of R$ 3.4 billion.
Comgás’ Shareholder Structure
Current Shareholder Structure
Listing of Comgás’ shares in the Stock Exchange: As inserted in the Edict of Privatisation and reflected in the Company’s Bylaws, Comgás is a
publicly traded company with its shares negotiated in the Stock Exchange, condition which must be maintained during the entire concession period.
8. 177 Cities
27% of Brazil’s GDP
Área de concessão
Segments (March 2013)
Residential: 1,230 thousand householders
Commercial: 11.4 thousand meters
Industrial: 1,011 meters
Cogeneration : 25 meters
Thermal Generation : 2 plants
NGV: 318 gas stations
Gas Brasiliano
PresidentePresidente
PrudentePrudente
AraçatubaAraçatuba
S.J. RioS.J. RioPretoPreto
MaríliaMarília
BauruBauru
CentralCentral
(Araraquara)(Araraquara)
RibeirãoRibeirãoPretoPreto
FrancaFrancaBarretosBarretos
Natural Gas
SPS
RegistroRegistro
SorocabaSorocaba COMGÁS
8
Concession Area Advantages
Pipeline intersection (GASBOL, GASAN, GASPAL)
Short distance to supply (Santos Basin)
High demographic density
Population 29.6 Mi
Homes 9.2 Mi
Vehicles 10.0 Mi
POTENTIAL (approximate data)
Concession Area
9. 9
Note: With the opening trading, in 2011, the users with consumption over 300,000 m3/month are considered potentially
free.
Market Customers
Residential and Commercial
(small volumes)
Trading and distribution during the concession period
Other Markets Customers
(large volumes)
Trading up to 12 years (starting on contract subscription date)
and distribution for the entire concession period
Production and Transportation:
ANP (Federal Parts)
..................
Distribution:
ARSESP (Government Parts)
www.arsesp.sp.gov.br
As a public service provider, Comgás’ activities
are regulated by ARSESP, a government
institution of São Paulo State, which delegated
to Comgás a 30-year term, starting in May
1999 for public service exploration with a one-
time renewal possibility for 20 more years.
REGULATED PRICES AND TARIFFS RULES
Regulated Framework
Comgás is a Regulated Company
10. The Concession Agreement forcees tariff reviews every 5 years
10
Maximum Margin
Review
•Considering the WACC
over the Regulatory Asset
Base + Investments
•Operational Costs
•Depreciation
•Sales Volume
Maximum Pre-
defined Tariffs
(discounts may be applied)
•Initial Tariff Structure
includes:
Tariffs
Readjustments
• Annual Margin adjustment
by inflation index (IGPM)
excluding the X Factor and
the K Factor:
• Gas Costs pass through
(comoddity & transport)
every May 31st (or
eventually before, as
defined by the regulator).
In Tariff Reviews, The
X Factor and The K
Factor are also Defined
• X Factor: Fixed efficiency
factor to be considered in the
PO annual update. In this 3rd
tariff cycle, the X Factor was
set at 0.82% per year.
• K Factor: Adjustment factor
that compensates deviations
from the maximum margin
earned regarding the
maximum margin permitted.
The K Factor was set at
0.009991 R$/m3 in the 4th
year of the 3rd cycle.
P gas + P transport +
Maximum Margin Average (P0)
= Tariff
P0 * (IGPM – X Factor) + K Factor
Tariff review for the 3rd Cycle (2009-2014):
P0 established in 0.3052 R$/m3
Commercialization Margin set at 1.9%
= + +
Tariff Settlement Process
11. Santos Basin
Pre-Salt
Current
Expansion
Comgás’ Concession Area
Expansion activities simultaneously progressing in the
cities inside the concession area
Targets for 2009-2014 period:
5,000km of network to be
established
282km of network renewal
500k+ clients to be connected
15 working fronts simultaneously
1,000 direct employees and more
than 4,000 indirect working on the
expansion
Aims for excellence in operational
safety and integrity of the
distribution network
Extensive field analysis and
selection of the best opportunities
considering:
Distance from existing
network
Demographic density
Economic profile and
propensity for consumption
Perspective of future
development
Potential for integration of
various market segments
11
Business Plan
Geographic Expansion
14. Fornecimento de Gás Natural: CONTRATOS
14
Daily quantity contracted:
approximately 13.3 millions of m³/day,
besides auction contracts.
Daily quantity demanded:
approximately 12.9 millions of m³.
Contracts
Natural Gas Supply
Contracts TCQ Firm Contract Auction Thermoelectric
Contract Models Firm Firm Firm of Short Term Back to Back
Gas Source Bolivian Undetermined
Surplus of PB's contracts with other
distributors / thermal power plants
Undetermined
End of Contract Jun/19 Dec/13 Sep/13 Dec/13
Commodity + Transportation
Fixed Charge +
Variable Charge
Transportation: annual
readjustment according to USA
Inflation: CPI
Fixed Charge: annual readjustment
by IGP-M
Commodity: quarterly correction
based on Oil Basket
+ Exchange Rate
Variable Charge: quarterly
correction based on Oil Basket
2.76 MMm3
/day
PPI + IGPM and exchange
variation according to the
American dollar
DQC
Price
8.10 MMm3
/day 5.22 MMm3
/day according to bids
According to the bid made by the
Auction Winner
15. Key growth strategy for Comgás:
Geographic expansion, capturing the
existing potential and connecting
around 100.000 clients per year
Increase average unit consumption by
optimizing and expanding customer
base
High potential market, with growth
driven by:
New real estate developments
Gas conversions in built residences
Large customer base with more than 1
million residential clients
Alternative for LPG and electricity
Concession Area Potential(1)
15
+ 47 thousand new buildings
(launches/developments) to be captured
Residential
Description
Note(1): MM of households
Casas
7.5
Apart.
1.7
31.2%
65.5%
3.3%
87.8%
10.9%
1.3%
customers to be captured
market to be studied
already connected to NG
16. 16
Industrial
Description
Comgás is present in all of the relevant industries in the concession area;
A diversified customer base with more than 1,000 corporate clients;
A multi-use product: from the production of heat and low-pressure steam to more
complex processes;
Many advantages compared to other fuels:
No storage requirements
Environmental issues
Guarantee of supply
Low operational costs
Growth Strategy:
Maintain a strong consumer base with future growth in line with growth in GDP / industrial
production
Approach small and medium enterprises (SMEs) to anchor expansion projects
Bring new industrial corporate clients into the concession area
17. Natural gas vehicle (NGV) may be used as fuel for both individual and mass
transportation;
Stands out for savings and environmental benefits:
Currently, it is more cost competitive than gasoline and ethanol
Strong economic benefit for heavy users
Comgás is currently working with the government to implement public policies that
should benefit the sector:
Fiscal incentives (IPVA reduction)
Public transportation policy
Growth Strategy:
Project in development: use of NGV in public transportation and other heavy users
17
Natural Gas Vehicle- NGV
Description
18. Over 11.1 thousand clients;
Focus on medium and large establishments;
Growth platform integrated with the expansion of the residential segment;
New applications have a high development potential:
Emerging market with high consumption potential
Structure dedicated in developing non conventional application development: acclimatization,
commercial cogeneration and generation during peak hours
18
Commercial
Description
19. Cogeneration:
Industrial strategic decision aiming efficiency and energy security in the medium and
long term
Sustainable growth depends on firm gas supply and price visibility vis-a-vis electricity
Market with a high potential development
Thermal Generation:
Demand depends on the level of thermal dispatch (determined by the government)
Back to back gas contracts
19
Cogeneration and Thermal Generation
Description
21. 21
Highlights
1Q13
Total volume of 1,367mm³ during 1Q13, 15% above that of 1Q12;
Growth of 44% in investments compared to 1Q12, summing R$ 175mm in 1Q13;
EBITDA of R$ 314mm, variation of +43% compared to 1Q12, due to the regulatory current account;
Network extension of 300 km during the quarter, 15% above that of the same period in 2012;
Third issuance of the Company’s promissory notes in the value of R$ 400mm.
22. Meters
22
Total per Segment
*UDA’s (Unidade Domiciliar Autônoma)
897,974 887,162 840,915 1.2% 6.8%
1,229,713 1,202,805 1,116,668 2.2% 10.1%
11,435 11,268 10,595 1.5% 7.9%
1,011 1,008 1,010 0.3% 0.1%
2 2 2 0.0% 0.0%
25 25 23 0.0% 8.7%
318 324 347 -1.9% -8.4%
910,765 899,789 852,892 1.22% 6.79%
1,242,504 1,215,432 1,128,645 2.2% 10.1%
1Q13 4Q12 1Q12 1Q13 x 1Q12
RESIDENTIAL
NUMBER OF UDA's*
COMMERCIAL
INDUSTRIAL
1Q13 x 4Q12
THERMAL GENERATION
COGENERATION
AUTOMOTIVE
TOTAL METERS
TOTAL CUSTOMERS
24. 75
129 122
1Q12 4Q12 1Q13
220
258
314
1Q12 4Q12 1Q13
269 270 262
1Q12 4Q12 1Q13
110
143
92
1Q12 4Q12 1Q13
22%
43%
-5%
63%
-3%
-3%
-36%
-16%
EBITDA
in million of R$
Normalized IFRS
Net Income
Financial Performance
24
25. 25
Financial Performance
in thousand of R$
1,447,744 1,467,168 1,120,356 -1.3% 29.2% 5,279,523 4,102,660 28.7%
-1,032,376 -1,083,253 -801,415 -4.7% 28.8% -3,881,871 -2,996,617 29.5%
415,368 383,915 318,941 8.2% 30.2% 1,397,652 1,106,043 26.4%
-99,656 -124,929 -94,249 -20.2% 5.7% -426,442 -387,744 10.0%
-1,358 -1,520 -4,516 -10.7% -69.9% -9,450 -2,015 369.0%
314,354 257,466 220,176 22.1% 42.8% 961,760 716,284 34.3%
-79,702 -73,438 -67,124 8.5% 18.7% -290,008 -240,595 20.5%
-50,023 -28,957 -39,749 72.7% 25.8% -163,650 -159,960 2.3%
184,629 155,071 113,303 19.1% 63.0% 508,102 315,729 60.9%
121,591 129,280 74,509 -5.9% 63.2% 366,655 236,139 55.3%
Normalized by Current Account (unaudited figures)
-46,420 18,757 53,916 -347.5% -186.1% 230,528 380,025 -39.3%
262,013 269,935 268,735 -2.9% -2.5% 1,169,892 1,107,120 5.7%
91,893 142,598 110,077 -35.6% -16.5% 522,561 490,712 6.5%NET INCOME
Financial Results
OPERATIONAL RESULT
NET INCOME
CURRENT ACCOUNT
EBITDA
Cost of Assets and / or Services Rendered
GROSS MARGIN
Expenditures with Sales, General and Adm.
Other Operational Results
EBITDA
Depreciation and Amortization
2012 2011 2012 x 2011
NET SALES
1Q13 4Q12 1Q12 1Q13 x 4Q12 1Q13 x 1Q12
26. 26
Financial Indicators
Annualized figures
19.15 18.84 11.02
4.06 4.32 2.49
0.99 0.97 1.55
2.15 2.27 2.74
0.40 0.39 0.33
0.68 0.58 0.62
28.7% 26.2% 28.5%
21.7% 17.5% 19.7%
8.4% 8.8% 6.7%
7.8% 8.7% 6.6%
21.2% 22.9% 22.6%
Normalized by Current Account (unaudited figures)
27.6% 30.1% 35.4%
19.9% 20.5% 25.8%
7.0% 10.8% 25.8%
1Q13 4Q12 1Q12
Gross Revenue (%)
Equity per share ($)
Earnings per share ($)
Net Debt over Equity (x)
Net Debt over EBITDA (x)
Short Term Debt over Total Debt (x)
Current Ratio (x)
Gross Revenue (%)
EBITDA Margin (%)
Net Margin (%)
Return on Assets (%)
Return on Equity (%)
Net Margin (%)
EBITDA Margin (%)
27. 27
Current Account
in million of R$
29 12
-55
-157
-230
-198
-128
-5
150
204
360 362
381
334
dec.09 mar.10 jun.10 sep.10 dec.10 mar.11 jun.11 sep.11 dec.11 mar-12 jun.12 sep.12 dec.12 mar.13
28. 751
244 162 186 101 188
297
55
94 99 276 147
2013 2014 2015 2016 2017 2018
forward
Local Currency ForeignCurrency
Estrutura de Endividamento
299
256 285
377 335
1,048
Debt Structure
in thousands of R$
Debt Amortization Schedule (R$ mm) Debt Composition – Mar/13
*EBITDA considering the last 12 months
Short
Term
40%
Long
Term
60%
EIB
20%
BNDES
41%
Others
38%
Debt Mar 13 Mar 12
Short Term Debt 1,048,314 708,298
Long Term Debt 1,551,233 1,437,644
Total Debt 2,599,547 2,145,942
(-) Cash 327,504 104,341
(=) Net Debt 2,272,044 2,041,601
EBITDA 1,057,385 744,082
Net Debt / EBITDA 2.15 2.74
Short Term Debt / Total Debt 0.40 0.33
29. Investimentos
29
Investments
in million of R$
121
175
mar/12 mar/13
+44%
262
300
mar/12 mar/13
Network Extension (in thousands of km)
São João da Boa Vista
Hortolândia
Monte Mor
Capivari
Taubaté
Piracicaba
Osasco II
Rio Claro
Main Projects
+15%
30. 2.6 2.9
3.3 3.6 3.9
4.5
4.9 5.1
5.7
6.2
6.9
8.0
9.3
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
100
229
200
230
276
474
426
397 403 406 405
510
616
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Investimentos
Main Projects:Network Extension (in thousand of km):
Mogi das Cruzes
Taubaté
Osasco II
Guarulhos
São José dos Campos
Itaquera
São Bernardo do Campo
Rio Claro
Jabaquara II
Hortolândia
Campinas II
Piracicaba
New Projects:
SJBV / Aguaí
Taboão da Serra
Santo André
Santos Noroeste
30
71
municipalities
connected
Investments
in million of R$ +21%
31. 31
PAY OUT Previous Accountability
PAY OUT IFRS
Shareholder Remuneration
in million of R$
Nota: Payout calculated based on remuneration deliberated by the Company during the period
11 16
27 25
303
330 334
275 268
427
450
200
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
17% 15%
26%
10%
95%
77% 75%
53%
73%
105%
92%
38%
74%
190%
55%
32. 32
Market Performance
(Jan – Mar 2013)
-
2.000
4.000
6.000
8.000
10.000
12.000
14.000
80
85
90
95
100
105
Volume CGAS5 IBOV
CGAS5
Dec 12 = R$ 58.50
Mar 13 = R$ 56.00
Var = -4.27%
IBOV
Dec 12 = 60,952
Mar 13 = 56,352
Var = -8.16%
Base 100 Vol CGAS5(R$ 000)
