CPFL Investor Newsletter


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CPFL Investor Newsletter - No. 30
January/February 2010

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CPFL Investor Newsletter

  1. 1. INVESTOR RELATIONS | 30 | YEAR 5 | JANUARY/FEBRUARY 2010 Net Income of R$ 1.3 billion in 2009 CPFL Energia reported net income of R$ In 2009, CPFL Energia’s capital expendi- Dividends 1.3 billion for fiscal year 2009, a result about tures totaled R$ 1.3 billion in maintenance CPFL Energia will distribute R$ 1.2 bil- 1% higher than the preceding year. The and expansion in the electric system, gener- lion in dividends to shareholders relative result reflects an increase of 4.0% in total ation, commercialization and added value to fiscal year 2009. This value corre- energy sales, which reached 48,064 GWh. services. This is 12.7% higher than our in- sponds to R$ 2.556073389 per share, Ebitda ended the year at R$ 2.8 billion from vestments in 2008. which, compared to the average share a gross operating revenue of R$ 15.7 bil- In 2009, the company intensified its price in each half year, would represent lion, an increase of 9.2% over 2008. investments in energy generation from re- a dividend yield of about 7.9% in the Good growth rates in the low tension newable sources, especially biomass-fired last 12 months. market are particularly worthy of mention, operations and wind energy. Scheduled Discounting the R$ 572 million for especially the residential and commercial to begin operations in July 2011, the Baía the first half of 2009 (paid in Sep- classes, which rose 6.0% and 5.3%, respec- Formosa plant in the state of Rio Grande tember 2009), the value to be paid tively when compared with 2008. Industrial do Norte is a sugarcane bagasse-fire plant, out in the second half of 2009 will consumption also reported a recovery in while the Santa Clara and Eurus wind farms be R$ 655 million, equivalent to R$ the concession area in 4Q09, posting an in the same state should come on stream 1.364872065 per share. increase of 2.9% over 4Q08. in July 2012. A Word from the CEO Generation Growth In 2009, CPFL Energia consolidated its lead- CPFL Bioformosa, our total capacity will We shall continue to look for growth in ership in the distribution and commercialization reach 2,409 MW. In 2012, our generation all three segments in which we operate. In sectors with market shares of 13% and 21%, complex will increase further to 2,597 MW generation, we will be assessing the country’s respectively, and during the same period, also with the conclusion of the wind farms, en- principal hydroelectric projects just as our stra- recording significant progress on the genera- ergy from which was sold through the tegic plan also envisages new business in the tion front. In 2010, installed group capacity will government Reserve Energy Auction held wind farm, biomass and SHP (Small Hydro reach 2,369 MW as a result of new operations in December 2009. In order to meet these Plants) segments. Energy from these sources is coming on stream and representing growth of targets, we shall be investing approximately clean, creates carbon credits and is aligned to 36.4%. These new operations are: Baldin Bio- R$ 1.4 billion over the next three years. Thus, our positioning as a sustainable company. mass TPP Foz do Chapecó HPP and EPASA – , the Group will be moving increasingly in the the Termonordeste and Termoparaíba TPPs. direction of becoming an even more impor- Wilson Ferreira Jr. In 2011, thanks to the inauguration of tant player in this segment. CEO of the CPFL Energia Group
  2. 2. Stock Market Stock exchange performance Due to the defensive characteristics of the company itself as well recovery in 2009, the sectors most heavily penalized in 2008 as the nature of the electric energy industry as a whole, CPFL En- were those which rallied the most. So far in 2010, CPFL Energia’s ergia’s shares saw the least price erosion in 2008, a year marked securities have risen faster than the leading benchmark stock in- by beginning of the world financial crisis. As a result, during the dexes on the BM&FBovespa and NYSE stock exchanges. Share performance – BM&F Bovespa Share performance – NYSE Jan-Feb/2010 Jan-Feb/2010 5.2% 0.5% -3.0% 1.1% -9.2% -1.0% CPFE3 IEE IBOV CPL DJBr20 DJIA Accum.2009 26.6% 59.1% 82.7% Accum.2009 71.4% 106.9% 18.8% Note: Values adjusted for dividendds Source: Economática Analysts’ Recommendations Evaluations Online interaction At the end of 2009, CPFL Energia’s shares were covered by 26 CPFL Energia publishes the institutions’ recommendations on the In- financial institutions, of which four initiated coverage in 2009. vestor Relations site. To check out the full table log on to: http:// Based on their valuations, 77% of these institutions had buy www.cpfl.com.br/ir, click on “Market Evaluation” and choose the op- or hold recommendations . tion, Analysts’ Coverage. Investor Relations Program Open doors for investors Last year proved one of the most intensive for environment as well as to discuss the situation and tals around the country (São Paulo, Rio de Janeiro, activities in CPFL Energia’s always dynamic Investor outlook for the company and the sector. Porto Alegre, Florianópolis, Belo Horizonte, Distrito Relations area. A total of 214 meetings was held CPFL Energia’s executives took part in two non- Federal, Salvador and Fortaleza). The company or- with investors between conferences and group deal international roadshows in Europe and in the ganized chatrooms and featured in three editions meetings. This allowed CPFL Energia to enhance United States in addition to five more in Brazil. The of ExpoMoney, thus promoting an approximation relations and increase transparency with the market Company also participated in nine investor confer- with retail investors. – fundamental when set against a background of ences, four of them involving domestic audiences The program for shareholders and investors also world financial crisis. and the other five, international gatherings. included visits to Group generating plants and the In such a scenario, the market becomes risk All the quarterly results were supported by on- reception of groups from universities. averse and tends to migrate to companies with line webcasts together with the disclosure of de- As part of the commemorations of the fifth an- recognized corporate governance, transparency, tailed press releases in the www.cpfl.com.br/ri site. niversary of the Group’s IPO (in September 2004), financial discipline, stability and good dividends. Presentations to investors through the medium of we ran a “Bovespa goes to you” program for The Investor Relations area sought to maintain the the Apimec meetings were another highlight in the employees with eight meetings in the cities of market correctly informed on the financial and op- this evolving company-investor relationship. Ten Campinas, Santos, Ribeirão Preto, Bauru, Sorocaba, erational impacts inherent to the adverse business meetings were held in 2009 in different state capi- Caxias do Sul, Jaguariúna and Piraju. 2
  3. 3. Generation Successful funding for power plants In December, successful funding op- stake – raised a bridging loan through Baldin Biomass TPP erations were concluded for financing a debenture issue of R$ 450 million (R$ BNDES Financing ongoing work at two new projects for 228 million equivalent to CPFL’s stake). Finem (TJPL* + 1.9% p.a.) and Finame (4.5% p.a. fixed) expanding CPFL Energia’s generation In addition, negotiations are already in Finem: 1.5 years of grace period + 11.5 years capacity - the Baldin Biomass-fired Ther- progress for a long-term line of finance Finame: 1.5 years of grace period + 8.5 years moelectric Power Plant and the EPASA with drawdown scheduled during the Capital structure: 24% equity and 76% debt thermoelectric power plants - Termo- course of 2010. *Long Term Interest Rate paraíba TPP and Termonordeste TPP. The planned start-up of the Baldin TPP In the case of the Baldin TPP, R$ 45 is expected for April 2010 and the EPASA EPASA (CPFL: 51%) million was raised from the National TPPs in the third quarter of 2010. 1st Debenture Issue Economic and Social Development This funding for financing of the Bridge Loan Bank - BNDES through FINEM and projects at suitable rates and tenors is R$ 228 million FINAME lines. Meanwhile, the EPASA in line with CPFL’s commitment to fi- 112.6% of CDI* Tenor: 1 year (Dec/ 2010) TPPs – in which CPFL holds a 51% nancial discipline. *Interbank Deposit Certificate sxc.hu CVM (Brazilian SEC) Great Exposure to the Market Issuer The capital markets are moving fast in the di- the pricing of securities trading in the market and select group of about 35 companies (according rection of greater transparency. With this in mind, facilitating analysis of information provided. to CVM estimates at the time of the preparation the Brazilian Securities and Exchange Commission As an A category, requirements are stricter for of the draft version of the Instruction submitted (CVM) has created A and B issuers for the purpose CPFL Energia: the completion of the entire Ref- for public hearing). of registering information as well as being more ap- erence Form is mandatory, eventual waivers that The principal advantage is agility in the process propriate to the specific exposure of each company. exist for category B in the provision of information of a public offering of shares – which can be criti- CPFL Energia is classified in the A category since its not being permitted. cal for the success of an operation to the extent shares are available for trading in the market. The creation of the Great Exposure to the that it allows favorable market ‘windows’ to be Under the new rules, the CVM has created a Market Issuer (GEMI) has also been important maximized. However, this differentiated treat- Reference Form replacing the Annual Informa- for CPFL Energia. Currently, the company would ment is still contingent on the approval of CVM tion Form (IAN). This new form involves high classify for the GEMI category since it has a free Instruction 400, the publication of which is ex- standards of transparency, helping to improve float in excess of R$ 5 billion, making it part of a pected during March. CPFL Structure In line with the Group strategy of continued and synergetic growth, a Busi- New Business ness Development Vice Presidency has been established with Adriana Waltrick at the helm since January. Development Vice The new structure is a response to the growing dynamism in the electric energy sector and the strategy of company consolidation in order to leverage Presidency mergers and acquisitions of the CPFL Energia Group’s companies, identifying opportunities for growth, synergies and for new businesses. 3
  4. 4. Sustainability CPFL Energia good deed token Divulgation The year 2010 will be one more in which all BM&F Bovespa has put together a portfolio of semination of the BM&F Bovespa’s proposal those taking part in CPFL’s Apimec meetings will projects with the objective of attracting resources with the public at large. receive their ‘CPFL good deed token’ allowing the in a transparent and reliable form. This initiative, To make a donation, all that the holder of donation of R$ 25 to BM&FBovespa’s Social and which is a pioneering project on the world stage, the ‘CPFL good deed token’ has to do is to ac- Environmental Values Exchange (BVS&A). is recognized by Unesco - United Nations Educa- cess the www.cpfl.com.br/ri website to learn An idea rolled out by the Stock Exchange in tional, Scientific and Cultural Organization. about the projects and allocate the resources. 2003, BVS&A seeks to encourage projects – con- CPFL Energia was the first company in the Signing up to this initiative is in line with CPFL’s ducted by Brazilian NGOs - for promoting improve- electric energy sector to support BVS&A. By commitment of acting responsibly and sustain- ments in the country’s social and environmental distributing the vouchers at its Apimec meet- ably and contributing to the well-being of peo- perspectives. Analogous to the equity market, ings, the Company also contributes to the dis- ple and the development of society. CMDCAs receive more than R$ 1.4 million CPFL Energia Group distributors have just donated R$ 1.4 million to the sxc.hu Municipal Councils for Children’s and Teenager’s Rights (CMDCA), benefit- ing 90 cities in its area of operations in the upcountry region of the state of São Paulo and the Baixada Santista (the city of Santos coastal region). Benefited projects were chosen on the basis of the underlying crite- ria for CPFL Energia’s corporate responsibility initiatives. In all, support has been extended to more than 170 projects for attending the needs of children and teenagers. The purpose is to improve investments made for the benefit of the child and the teenager in the municipalities of the areas where the company has its operations. This arrangement fosters a healthy and transparent relationship with the councils and social institutions. During 2010, the Company will be monitoring the execution of these projects and the proposed results. The Investor is an energy investor relations publication, edited by the Office of Corporate Communications and Institutional Relations, Rodovia Campinas Mogi Mirim, Km 2.5 - Jd. Santana - Campinas/SP, Zipcode 13.088-900. Phone: (19) 3756-8456 Fax: (19) 3756- 8040 - informativos@cpfl.com.br. Financial Vice President and Head of Investor Relations: Wilson Ferreira Jr., RMI Director: Gustavo Estrella, Corporate Communications Officer: Augusto Rodrigues. Manager of Journalism: Carlos Henrique Matos Ramos. Journalist Responsible: Maria Helena Portinari MTB15577. Content and Editing: Marcos Sambo. Design: Leonardo Castagna. Site: Investor Relations: www.cpfl.com.br/ir - email: ri@cpfl.com.br. 4