3 q07 financial and operating results presentation

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3 q07 financial and operating results presentation

  1. 1. 3Q07Operating and Financial Performance
  2. 2. RESULTS PRESENTATIONAgenda 3Q07 Highlights Operating Results Financial Results Corporate Restructuring 2
  3. 3. RESULTS PRESENTATIONAgenda 3Q07 Highlights Operating Results Financial Results Corporate Restructuring 3
  4. 4. RESULTS PRESENTATIONHighlights 3Q07 Operating Results Billed energy in the 3Q07 increased by 12% (MWh) over the 3Q06 CEMAR’s third-quarter DEC and FEC ratios improved by 35.6% and 35.1% y-o-y, respectively Total losses decreased by 1p.p. in the 3Q07 when compared to the 3Q06 Financial Results Net revenue totaled R$635.4 million in the 9M07, 5.3% above the 9M06 EBITDA totaled R$275.3 million (EBITDA Margin of 43.3%) in the 9M07, 13.5% up on the R$242.6 million recorded in the 9M06 Pro-forma EBITDA, adjusted for the CVA-PLPT, stood at R$280.0 million in the 9M07, 33.5% more than the R$209.8 million posted in the 9M06 Net income reached R$104.9 million in the 9M07, 23.4% up year-on-year In August, CEMAR’s energy supply tariffs were adjusted by 8.08% 4
  5. 5. RESULTS PRESENTATIONAgenda 3Q07 Highlights Operating Results Financial Results Corporate Restructuring 5
  6. 6. RESULTS PRESENTATIONCustomer Base 3Q07 • LTM growth of 6.4% in the customer base (85,400 new consumers) Customers (thousand) Number of Customers (% per Class) 8.9% Others – 4.7% 7.5% 7.2% Comm. – 7.2% 6.9% 6.4% Ind. – 0.7% 1,327 1,349 1,373 1,398 1,412 3Q06 4Q06 1Q07 2Q07 3Q07 Res. – 87.4% Customers Annual Var. 6
  7. 7. RESULTS PRESENTATIONEnergy Volume 3Q07 • Growth of 12.0% in billed energy volume over the 3Q06 • Strong growth in the residential and industrial segments – 14.5% and 24%, respectively • Increase in 2007 market growth guidance to between 8% and 10%; Energy Sales Volume per Segment (MWh) CONSUMPTION CLASS (MWh) 3Q06 3Q07 % Chg. 9M06 9M07 % Chg. Residential 300,342 343,996 14.5% 875,372 989,520 13.0% Industrial 103,575 128,485 24.0% 276,751 335,673 21.3% Commercial 149,695 149 695 161,254 161 254 7.7% 7 7% 430,359 430 359 461,500 461 500 7.2% 7 2% Others (ex. own consumption) 185,888 194,618 4.7% 524,308 557,276 6.3% TOTAL 739,500 828,353 12.0% 2,106,789 2,343,970 11.3% Billed Energy (% per Segment) Energy Load (% Chg. MWh) Brasil vs. NE vs. CEMAR – 3Q07 x 3Q06 Res. – 41.5% Others - 23.5% 4.5% 4.9% 9.2% Comm. – 19 5% C 19.5% Ind. – 15.5% Brazil - SIN Northeast CEMAR 7
  8. 8. RESULTS PRESENTATIONEnergy Balance and Losses 3Q07 • CEMAR’s required energy grew 7.9% year-on-year in the 3Q07 • Lowest level of total losses since the 2Q04 Energy Balance - MWh ENERGY BALANCE (MWh) 3Q06 3Q07 % Ch Chg. 9M06 9M07 % Ch Chg. Required Energy * 1,085,933 1,171,724 7.9% 3,036,733 3,313,339 9.1% Sales ** 741,243 829,724 11.9% 2,111,835 2,347,827 11.2% Losses 344,690 344 690 342,000 342 000 -0 8% 0.8% 924,898 924 898 965,512 965 512 4.4% 4 4% * Includes own generation ** Includes energy sales to consumer classes, own consumption and supply to CEPISA Electricity Losses (LTM) 29.9% 29.8% 29.9% 29.5% 28.9% 3Q06 4Q06 1Q07 2Q07 3Q07 8
  9. 9. RESULTS PRESENTATIONDEC and FEC 3Q07 • Substantial investments in the electricity network have generated consistent improvements in quality ratios • CEMAR’s DEC and FEC ratios improved by 35.6% and 35.1%, respectively, in the last 12 months DEC FEC 5.7 5.9 9.8 5.3 7.8 78 7.6 6 1.2 4.8 48 -35.1% -35 1% 1.9 6.8 -35.6% 1.4 1.2 0.9 0.9 0.9 3.5 0.9 5.0 0.4 0.4 6.9 69 7.8 4.2 42 4.3 43 4.6 6.7 67 5.9 4.6 3.9 39 3.1 31 3Q06 4Q06 1Q07 2Q07 3Q07 3Q06 4Q06 1Q07 2Q07 3Q07 Distribtion Supplier CEMAR Distribution Supplier CEMAR 9
  10. 10. RESULTS PRESENTATIONAgenda 3Q07 Highlights Operating Results Financial Results Corporate Restructuring 10
  11. 11. RESULTS PRESENTATIONNet Revenues 3Q07 • Excluding the impact of the “CVA PLPT”, our net revenues grew by 9.1% between the 3Q06 and the 3Q07 Net Revenues (R$ million) 54.4% 5.3% 7.8% 13.6% 12.6% Annual Chg. -5.9% 248.4 206.6 195.1 206.4 233.9 603.6 635 635.4 Net Revenues 3Q06 4Q06 1Q07 2Q07 3Q07 9M06 9M07 Adjusted Net Revenues (Ex. CVA PLPT - R$ million) 32.9% 11.6% 13.6% 9.1% 7.8% 12.6% Annual Chg. Adjusted Net Revenues 213.9 206.6 195.1 206.4 233.5 569.1 635.1 3Q06 4Q06 1Q07 2Q07 3Q07 9M06 9M07 11
  12. 12. RESULTS PRESENTATIONManageable Costs and Expenses 3Q07 • PMSO (excluding provisions) totaled 13.3% of NOR in the 3Q07, 0.3 p.p. above the 3Q06 • Personnel: R$10.1 million in the 3Q07, 19.8% less than in the 3Q06 due to the end of restructuring • Thi d Party Services: stand-by services, SAP maintenance, customer service center and Third P t S i t db i i t t i t d third-party customer service increased by 10.3% over the 3Q06 Manageable Costs and Expenses R$ Million 3Q06 3Q07 Var.% 9M06 9M07 Var.% Personnel 12.6 10.1 -19.8% 41.5 33.3 -19.9% Material 1.1 1.7 60.9% 3.5 4.1 19.6% Services 16.8 18.6 10.3% 44.8 51.2 14.2% Others 1.8 0.8 -55.9% 8.1 2.9 -64.0% PMSO 32.4 31.2 -3.5% 97.9 91.5 -6.5% PMSO (% N R Net Revenues) ) 13.0% 13 0% 13.3% 0,3 13 3% 0 3 p.p. 16.2% 16 2% 14.4% 1 8 14 4% -1,8 p.p. Provisions 9.0 6.3 -30.2% 21.1 23.0 8.6% Allowance for Doubtful Accounts and Losses 7.2 5.2 -28.3% 15.7 16.8 7.5% % of Gross Revenues 2.3% 1.6% -0,9 p.p. 1.9% 1.9% 0 p.p. Provision for Contigencies and other provisions P i i f C ti i d th i i 1.8 18 1.1 1 1 -37.7% 37 7% 5.4 54 6.1 61 14.2% 14 2% Other Non Recurring Expenses 5.7 0.0 N/A 5.7 0.0 N/A MANAGEABLE COSTS AND EXPENSES 47.0 37.5 -20.3% 124.7 114.5 -8.2% MANAGEABLE COSTS AND EXPENSES (% Net Revenues) 18.9% 16.0% -2,9 p.p. 20.7% 18.0% -2,7 p.p. 12
  13. 13. RESULTS PRESENTATIONProductivity 3Q07 • Continuous productivity and efficiency gains in manageable expenses • The PMSO/Customer ratio fell 9.6% year-on-year in the 3Q07 • 4.7% increase in the Customer/Employee ratio between the 3Q06 and the 3Q07 PMSO per Customer (R$/Customer) Customers per Employee* 4.7% -9.6% 24.6 23.1 23.5 20.5 22.2 1,130 1,161 1,176 1,188 1,183 3Q06 4Q06 1Q07 2Q07 3Q07 3Q06 4Q06 1Q07 2Q07 3Q07 * Excluding third-party workers 13
  14. 14. RESULTS PRESENTATION EBITDA and EBITDA margin 3Q07 • EBITDA of reached R$104.7 million in the 3Q07, 4.1 down on the 3Q06 • EBITDA Margin of 44.8% in the 3Q07, 0.9 p.p. up on the 3Q06 EBITDA (R$ million) and EBITDA Margin (% of Net Revenue) 47.5% 13.5% 43.9% 45.3% 44.8% EBITDA Margin 39.5% -4,1% 242.6 275.3 EBITDA 109.2 98.1 77.0 93.6 104.7 3Q06 4Q06 1Q07 2Q07 3Q07 9M06 9M07 EBITDA (R$ million) and EBITDA Margin (% of Net Revenue) Adjusted for the CVA-PLPT* 47.5% 45.3% 44.6% 32.2% 39.5% EBITDA Margin 34.9% 39,8% 74.7 98.1 77.0 93.6 104.4 208.1 275.0 EBITDA 3Q06 4Q06 1Q07 2Q07 3Q07 9M06 9M07* R$34.5 million in the 3Q!06 and R$0.4 million in the 3Q07 14
  15. 15. RESULTS PRESENTATIONProfitability 3Q07 • Profitability comparisons are jeopardized due to the CVA-PLPT in the 3Q06, but annual trajectory is still upward EBITDA per Customer (R$/Customer) EBITDA per MWh (R$/MWh) -14.4% -10.1% 82.9 73.3 56.6 67.5 74.5 147.6 121.7 106.2 118.4 126.4 3Q06 4Q06 1Q07 2Q07 3Q06 3Q06 4Q06 1Q07 2Q07 3Q07 15
  16. 16. RESULTS PRESENTATIONIncome Tax and Social Contribution 3Q07 • Low effective rate • Expected effective tax rate for 2007 is between 6% and 9% Income Tax / Social Contribution (R$ million) I T S i l C t ib ti illi ) 9M06 9M07 Earnings Before Taxes (1) 166,5 218,2 Expense Income Tax/ Social Contribution (Income Statement) (37,2) (63,5) ( ) (+) Reversal in Tax Provision - 2005 ( ) (9,4) 0,3 (-) Deferred Tax Asset 22,1 34,5 (-) ADENE Incentive 4,0 5,2 (=) Income Tax/Social Contribution (20,6) (23,6) (+) Fiscal Credits - 7,6 76 (=) Tax - Cash Basis (2) (20,6) (16,1) Effective Tax Rate = (2)/(1) -12,3% -7,4% 16
  17. 17. RESULTS PRESENTATIONNet Income 3Q07 • Net income of R$104.9 million in the 9M07, 23.4% up on the 9M06 Net Income (R$ million) and Net Margin (%NR) 16.5% 16 5% 23.2% 14.1% 19.4% 17.1% 15.8% 16.5% 51.8 40.4 30.8 34.1 40.0 85.0 104.9 3Q06 4Q06 1Q07 2Q07 3Q07 9M06 9M07 Net Income Net Margin 17
  18. 18. RESULTS PRESENTATIONIndebtedness 3Q07 • • Gross debt of R$725.9 million at the close of the 3Q07, R$30.6 million up on the previous quarter due to the release of a R$35.1 million tranche of the BNB financing line DEBT PROFILE • Average cost: 10.9% p.a. (LTM) or 87.9% of the CDI • Average term: 9.3 years Amortization Schedule – 3Q07 Gross Debt – 3Q07Maturity R$ milion Total % Avg. Spread (per Avg. Due Date Avg. Maturity Reference Part. (%)Short Term 18.031 2.5% year) (month-year) (in years)Long Term 707.854 97.5% Libor Libor + 0,8% aa ago-18 11.3 0.7% IGP-M IGP M 4,0% 4 0% aa dez-23 dez 23 16.0 16 0 17.8% 17 8%2008 18.835 2.6% TJLP 4,8% aa mar-12 5.0 4.2%2009 46.758 6.4% Fixed (R$) 11,5% aa fev-17 10.0 17.7%2010 49.843 6.9% RGR 6,1% aa ago-17 10.2 9.3%2011 119.052 16.4% 119 052 16 4% Fixed (US$) 6,7% aa jun 20 jun-20 13.3 0.9%After 2011 473.366 65.2% FINEL* 9,8% aa dez-15 8.0 8.2%Total 725.885 100.0% CDI 105,4% do CDI mai-13 6.2 41.1% * The FINEL sector index accounts for 20% of the IGP-M 18
  19. 19. RESULTS PRESENTATIONNet Debt 3Q07 • Maintenance of high liquidity level and low financial leverage Consolidated Net Debt (R$ million) Ownership Adjusted Net Debt (R$ million) 88.3 57.7 0.7 x 198.4 EBITDA 129.7 0.4 x EBITDA 195.6 195.6 725.9 243.6 474.4 91.4 gulatory gulatory Ca and Ca Eq. Cash and Ca Eq. Ne Debt Cas and Cas Eq. Cas and EMAR Gross Cas Eq. Assets Net Debt EQTL Debt EMAR Gross ssets 3Q07 EQTL Debt Net Q07 ash Net ash ash sh sh sh sh 3Q G et D N CE E As Reg Reg 3 G t A CE E 19
  20. 20. RESULTS PRESENTATIONConsolidated Net Debt 3Q07 • Maintenance of high liquidity level and low financial leverage Consolidated Net Debt (R$ million) and Net Debt / EBITDA (LTM) 0.7 0.6 0.5 0.3 0.3 105.1 105.0 176.0 241.7 243.6 3Q06 4Q06 1Q07 2Q07 3Q07 Net Debt Net Debt / EBITDA (LTM) 20
  21. 21. RESULTS PRESENTATIONInvestments 3Q07 • CEMAR investments of R$48.4 million in the 3Q07* • Expected CAPEX: 2007: R$200-R$220 million / 2007-2009: R$500-R$550 million CEMAR’s CAPEX (R$ million) 56.1 0,5 48,4 9.5 45.0 Others 1.0 0.4 3.3 3.3 Equipment and q p 16.4 Systems 31.5 31.5 Network Expansion 0.2 4.5 2.9 1.9 27.1 32.0 Network Maintenance 12.8 18.1 29.6 14.0 14.3 12.1 8.7 3Q06 4Q06 1Q07 2Q07 3Q07 *Excluding direct investments related to the PLPT 21
  22. 22. RESULTS PRESENTATIONPLPT (Luz Para Todos – Light for All Program) 3Q07 Direct Investments in the PLPT (R$ million) -14.4% 58.1 51.2 35.4 41.6 49.7 3Q06 4Q06 1Q07 2Q07 3Q07 Connected Customers 128,994 119,589 111,826 103,067 80,577 18,134 22,490 8,759 7,763 9,355 3Q06 4Q06 1Q07 2Q07 3Q07 Quarterly Connections Accumulated Connections 22
  23. 23. RESULTS PRESENTATIONAgenda 3Q07 Highlights Operating Results Financial Results Corporate Restructuring 23
  24. 24. Corporate Restructuring 1. Increase in the Controlling Interest of Equatorial and CEMAR 2. Merger of PCP Energia by Equatorial 3. Listing on the Novo Mercado 4. Post-Restructuring Strategy 24
  25. 25. 1. Increase in the Controlling Interest ofEquatorial and CEMAR On November 5, GP Energia and PCP Latin America Power Fund entered into an agreement to transfer the total ownership interest held by GP Energia in Equatorial Energia Holdings, LLC, a company that indirectly controls Equatorial and CEMAR, to PCP Latin America Power Fund The amount to be paid to GP Energia in reference to the transfer is R$203.8 million, implying a price of R$18.64/Unit The transaction is contingent upon the prior consent by ANEEL and will only be implemented if and when this consent is obtained On conclusion of the transaction, corporate control of Equatorial and CEMAR will be held solely by PCP Latin America Power Fund C 25
  26. 26. 1. Increase in the Controlling Interest ofEquatorial and CEMAR • Current Structure • Structure after Increase in Controlling Interest PCP Latin America GP Energia Brasil LP PCP Latin America Power Fund Limited Power Fund Limited 46.25% total 53.75% total 100% total Equatorial E E t i l Energia i Equatorial E E t i l Energia i Holdings, LLC Holdings, LLC 100% total 100% total Brasil Energia I LLC Brasil Energia I LLC Abroad Abroad 55.60% ON 55.60% ON 3.80% PN 3.80% PN 30.70% total Brazil 30.70% total Brazil Equatorial Energia Equatorial Energia S.A. S.A. 65.07% ON 65.07% ON % 65.02% total 65.02% total CEMAR CEMAR 26
  27. 27. 2. Merger of PCP Energia by Equatorial • Structure of Interest in Light S.A. PCP Latin America After the increase in controlling interest, Power Fund Limited PCP Latin America Power Fund will aim to 99.96% ON Abroad consolidate its investments in the energy 99.96 total Brazil sector PCP Energia Participações S.A. The proposal is to merge PCP Energia by 25.00% ON Equatorial 25.00% total RME – Rio Minas 99.90% quotas Energia S.A. PCP Energia indirectly holds 13.06% of 99.90% total Light through RME and shares its Lidil Commercial corporate control through a shareholders’ Ltda. 49.50% ON 49.50% total agreement 2.74% ON Light S.A. 2.74% total 27
  28. 28. 2. Merger of PCP Energia by Equatorial Energy Sales – 9M07 (Captive) Light S.A. Others Residential 17.5% 40.2% RR AP AM MA CE PA RN PB PI AC PE Commercial TO RO SE AL 31.3% Industrial MT BA 10.9% DF GO 13,753 GWh MG MS ES EBITDA per Segment – 9M07 SP RJ PR Trading SC Generation 0.3% 11.8% RS Holding with presence in distribution, generation and trading distribution 3rd largest distributor in Brazil in terms of energy sales* Distribution 4th largest customer base in Brazil* 87.9% Plants with 981 MW of installed capacity Over R$6 billion i gross revenues i th 9M07 O billi in in the R$1,032 Million Source: ABRADEE and Light; * 2006 28
  29. 29. 2. Merger of PCP Energia by Equatorial On November 5, 2007, the Board of Directors of Equatorial approved the execution of a protocol establishing the terms and conditions for the merger of PCP Energia into Equatorial E t i l The protocol establishes an exchange ratio between Equatorial and PCP Energia shares based on the weighted average of the quoted value of Equatorial Units (EQTL11) and Light common shares (LIGT3) d i th last 90 t di sessions at Bovespa until November 5, h during the l t trading i tB til N b 5 2007 The average price for EQTL11 was R$19.31/Unit and for LIGT3 was R$27.85/thousand shares, shares equivalent to an exchange ratio of 0.6934 Equatorial Unit per thousand Light 0 6934 common shares Equatorial will hire an independent specialized company to prepare an appraisal report of Equatorial and PCP Energia to provide additional information in regard to the value of the companies The merger will only be implemented upon the conclusion of the transfer of GP Energia s Energia’s interest to PCP Latin America Power Fund and the transaction’s approval by a general shareholders’ meeting, where holders of preferred shares will have the same voting rights as holders o co o de s of common shares o s a es 29
  30. 30. 2. Merger of PCP Energia by Equatorial Structure after the Increase in Controlling Interest PCP Latin America Power Fund Limited 100% total Equatorial Energia Holdings, LLC 100% total Brasil Energia I LLC Abroad 99.96% ON 55.60% ON 99.96 total 3.80% PN PCP Energia 30.70% total Brazil Participações S.A. Equatorial Energia 25.00% ON S.A. 25.00% total RME – Rio Minas 99.90% quotas Energia S.A. 99.90% total 99 90% t t l 65.07% 65 07% ON 65.02% total 49.50% ON 49.50% total 2.74% ON Lidil Commercial 2.74% total Light S.A. CEMAR Ltda. 30
  31. 31. 2. Merger of PCP Energia by Equatorial C alc ulation of the E quity Value of E quatorial E nerg ia and P C P  E nerg ia P artic ipaç ões P C P  E nergia P art. S t k (% ) take(% 25,0% 25 0% S take (R $) R $ 740.036.708,96 R ME  / L idil S take (% ) 52,24% S take (R $) k ( R $ 2 960 6 83 8 $ 2.960.146.835,85 E Q T L 11 (R $/Unit) L IG T 3 (R $/000 s hares ) Weighted Average P rice* R $                           19,31 (1) R $                           27,85 (2) Number of Units  /S hares                          66.218.483               203.462.739.012 Market C ap R $         1.278.678.900,29 R $         5.666.437.281,48 Implict E xchange R atio (1)/(2) 0,6934 * 90 trading days C alc ulation of the E xc hang e R atio between E quatorial E nerg ia and P C P  E nerg ia P artic ipaç ões E quatorial E nergia P C P  E nergia P art. E quity Value R $ 1.278.678.900,29 R $ 740.036.708,96 Number of s Number of s hares                     198.655.448                      179.831.100 P rice per S hare R $ 6,44 (1) R $ 4,12 (2) E xhange R atio (2)/(1)                               0,6393    .50%  C ommon S hares  Is s ue                               0,3197    .50%  P referred S hares  Is s ue 50% P referred S Is                              0 3197 0,3197 31
  32. 32. 2. Merger of PCP Energia by Equatorial • Structure after Increase in Controlling Interest and Merger of PCP Energia PCP Latin America Power Fund Limited 100% total Brasil Energia I LLC Abroad 71.5% ON 40.0% PN 56.1% 56 1% total Brazil Equatorial Energia S.A. 25.00% ON 25.00% total RME – Rio Minas Energia S.A. 65.07% ON 99.90% quotas 49.50% 49 50% ON 65.02% total 99.90% total 99 90% t t l 49.50% total 2.74% ON Lidil Commercial 2.74% total Light S.A. CEMAR Ltda. 32
  33. 33. 3. Listing on the Novo Mercado After the merger, Equatorial shareholders will deliberate the following matters: • p p p The conversion of all preferred shares into common shares in the proportion of 1 common share for each preferred share • A reverse stock split in the proportion of 1 common share for each 3 common shares • A amendment t th By-Laws in order to comply with th hi h t corporate An d t to the B L i d t l ith the highest t governance standards • The listing of Equatorial shares on the Bovespa’s Novo Mercado The conversion of all preferred shares into common shares will not dilute those shares representing more than 50% of Equatorial’s voting capital. These shares shall Equatorial s capital continue to be held by a single shareholder 33
  34. 34. 3. Listing on the Novo Mercado • Structure after Increase in Controlling • Structure after Increase in Controlling Interest , Merger of PCP Energia and Interest and Merger of PCP Energia Listing on the Novo Mercado PCP Latin America PCP Latin America Power Fund Limited Power Fund Limited 100% total 100% total Brasil Energia I LLC Brasil Energia I LLC Abroad Abroad 71.5% ON 56.1% ON 40.0% PN 56.1% total Brazil 56.1% total Brazil Equatorial Energia Equatorial Energia S.A. S.A. 25.00% ON 25.00% ON 25.00% total 25.00% total 65.07% ON 65.07% ON RME – Rio Minas 65.02% total RME – Rio Minas 65.02% total Energia S.A. Energia S.A.99.90% quotas 99.90% quotas 49.50% ON 99.90% total 49.50% ON99.90% total 49.50% total 49.50% total 2,74% ON 2.74% ON Lidil Commercial 2,74% total Light S.A. CEMAR Lidil Commercial 2.74% total Light S.A. CEMAR Ltda. Ltda. 34
  35. 35. 4. Post-Restructuring Strategy Cemar and Light: outstanding returns Continue the restructuring process at Cemar and Light through above-average aiming to capture additional efficiency gains, decrease operational and financial operating expenses and reduce commercial losses performance Acquisition of control, independently or jointly Consolidation of distributors in Brazil and Add value through operational and financial in Latin America restructuring, synergy gains and reduced energy losses Heavy investments in generation will be required over Investments in the next years in Brazil Generation and Transmission g This scenario will generate attractive investment and co-investment opportunities for Equatorial 35
  36. 36. Corporate Restructuring The main consequences of the proposed restructuring are: • elimination of geographical restrictions on Equatorial’s growth strategy • exchange of best practices between the controlled companies • better governance standards through listing on the Novo Mercado • concentration of the controlling shareholder’s energy sector investments in a single asset 36
  37. 37. RESULTS PRESENTATIONContact 3Q07 Carlos Piani CEO Leonardo Dias CFO and IRO Gabriel Arrais IR Analyst Phone1: +0 XX (98) 3217-2198 Phone2: +0 XX (98) 3217 2113 3217-2113 E-mail: ir@equatorialenergia.com.br Website: http://www equatorialenergia com br/ir http://www.equatorialenergia.com.br/ir 37
  38. 38. RESULTS PRESENTATIONDisclaimer 3Q07 This document may contain prospective statements, which are subject to risks and uncertainties, as they were based on the expectations of Company’s management and on available information. These prospects include statements concerning the Company’s current intensions or expectations for our clients; this presentation will also be available on our website www equatorialenergia com br/ir and also in the IPE system at the Brazilian www.equatorialenergia.com.br/ir Security Exchange Commission – CVM. Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market share and competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factors and values that can establish these results are outside Company’s control or expectation. The reader/investor is prevented not to completely rely on the information above . The words “believe", “can", “predict", “estimate", “continue", “anticipate", “intend", “forecast" and similar words, are intended to identify affirmations. Such estimates refer only to the date in which they were expressed, therefore Company has no obligation to update said statements. statements This presentation does not consist of offering, invitation or request of subscription offer or purchase of any marketable securities. And, this statement or any other information herein, does not consist of a contract base or commitment of any kind. 38

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