Institutional presentation 1 t13

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Institutional presentation 1 t13

  1. 1. 1INSTITUTIONAL PRESENTATIONFinancial and Operational ResultsMarch 31st, 2013
  2. 2. DisclaimerThe statements contained in this report regarding the outlook on business,estimations on financial and operational results and growth prospects for COMGÁSare merely estimations and, as such, are based exclusively on managementexpectations regarding future events and tendencies, that affect or may affect thebusiness. These estimations are subject to many risks and uncertainties and aremade considering the information currently available, and depend, substancially onmarket conditions, the Brazilian economys performance, the business sector andinternational markets, and are therefore subject to change without pior notice.Because of these uncertainties, the investor should not make any investmentdecisions based on these estimations and declarations on future operations.
  3. 3. Company Overview
  4. 4. 4HistóricoThe Company’s Course– Over 100 years of historyThe British company San PauloGas receives authorization toexplore the concession of publicservices of ilumination in SãoPaulo;Cosan aquires60.1% ofComgás’social capitalfrom BritishGas (BG)20122011Comgás reachedcustomer1,000,000;1996The company goespublic and istraded on the SãoPaulo StockExchange(Bovespa)beginning in 1997;1959The company isnationalized andrenamed CompanhiaPaulista de Serviçosde Gás (Comgás);18721912The Canadian companyLight assumesownership;1999Privatization: Theconsortium formed byBritish Gas and Shellobtain a controlling stakein Comgás;Comgás is consolidated asBrazil’s largest natural gasdistributor responsible formore than 30% of the salesof natural gas in thecountry;2010
  5. 5. Regulada ...5Comgás’ HighlightsDiversified clientbaseImpressive trackrecord: Significantgrowth with profibilityand sound capitalstructureSolid regulatoryframework andtransparent concessionschemeFavorableprospects fornatural gas inBrazilPremium assetlocated in a strategicconcession areaSubstantial growth inthe residentialsegment
  6. 6. 314,034899,7891999 2012#Meters17711999 2012#Municipalities2,5009,3081999 2012Network1.35.31999 2012Volumebi m³3415,2801999 2012Net RevenueR$ mm6Growth since Privatization506161999 2012CAPEX R$ mm
  7. 7. Comgás: uma combinação de competências e princípios7SHELL BRAZILHOLDING BV6.34%INTEGRALINVESTMENTS BV11.86%SHELL GAS BV100%OTHERSHAREHOLDERS(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 thesum amount of R$ 3.4 billion.Comgás’ Shareholder StructureCurrent Shareholder StructureListing of Comgás’ shares in the Stock Exchange: As inserted in the Edict of Privatisation and reflected in the Company’s Bylaws, Comgás is apublicly traded company with its shares negotiated in the Stock Exchange, condition which must be maintained during the entire concession period.
  8. 8. 177 Cities27% of Brazil’s GDPÁrea de concessãoSegments (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 stationsGas BrasilianoPresidentePresidentePrudentePrudenteAraçatubaAraçatubaS.J. RioS.J. RioPretoPretoMaríliaMaríliaBauruBauruCentralCentral(Araraquara)(Araraquara)RibeirãoRibeirãoPretoPretoFrancaFrancaBarretosBarretosNatural GasSPSRegistroRegistroSorocabaSorocaba COMGÁS8Concession Area Advantages Pipeline intersection (GASBOL, GASAN, GASPAL) Short distance to supply (Santos Basin) High demographic densityPopulation 29.6 MiHomes 9.2 MiVehicles 10.0 MiPOTENTIAL (approximate data)Concession Area
  9. 9. 9Note: With the opening trading, in 2011, the users with consumption over 300,000 m3/month are considered potentiallyfree.Market CustomersResidential and Commercial(small volumes)Trading and distribution during the concession periodOther Markets Customers(large volumes)Trading up to 12 years (starting on contract subscription date)and distribution for the entire concession periodProduction and Transportation:ANP (Federal Parts)..................Distribution:ARSESP (Government Parts)www.arsesp.sp.gov.brAs a public service provider, Comgás’ activitiesare regulated by ARSESP, a governmentinstitution of São Paulo State, which delegatedto Comgás a 30-year term, starting in May1999 for public service exploration with a one-time renewal possibility for 20 more years.REGULATED PRICES AND TARIFFS RULESRegulated FrameworkComgás is a Regulated Company
  10. 10. The Concession Agreement forcees tariff reviews every 5 years10Maximum MarginReview•Considering the WACCover the Regulatory AssetBase + Investments•Operational Costs•Depreciation•Sales VolumeMaximum Pre-defined Tariffs(discounts may be applied)•Initial Tariff Structureincludes:TariffsReadjustments• Annual Margin adjustmentby inflation index (IGPM)excluding the X Factor andthe K Factor:• Gas Costs pass through(comoddity & transport)every May 31st (oreventually before, asdefined by the regulator).In Tariff Reviews, TheX Factor and The KFactor are also Defined• X Factor: Fixed efficiencyfactor to be considered in thePO annual update. In this 3rdtariff cycle, the X Factor wasset at 0.82% per year.• K Factor: Adjustment factorthat compensates deviationsfrom the maximum marginearned regarding themaximum margin permitted.The K Factor was set at0.009991 R$/m3 in the 4thyear of the 3rd cycle.P gas + P transport +Maximum Margin Average (P0)= TariffP0 * (IGPM – X Factor) + K FactorTariff review for the 3rd Cycle (2009-2014):P0 established in 0.3052 R$/m3Commercialization Margin set at 1.9%= + +Tariff Settlement Process
  11. 11. Santos BasinPre-SaltCurrentExpansionComgás’ Concession AreaExpansion activities simultaneously progressing in thecities inside the concession area Targets for 2009-2014 period: 5,000km of network to beestablished 282km of network renewal 500k+ clients to be connected 15 working fronts simultaneously 1,000 direct employees and morethan 4,000 indirect working on theexpansion Aims for excellence in operationalsafety and integrity of thedistribution network Extensive field analysis andselection of the best opportunitiesconsidering: Distance from existingnetwork Demographic density Economic profile andpropensity for consumption Perspective of futuredevelopment Potential for integration ofvarious market segments11Business PlanGeographic Expansion
  12. 12. 1Q12 1Q1368%6%4%3%2%17%66%5%0%20%7%2%+15%12Volumein million of m31,1871,367413.7 mi R$1.4 bi m³MarginVolume72,0%6,8%5,2%3,8%2,1%10,0%Industrial Cogeneration NGV Residential Commercial Thermal Generation
  13. 13. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Industrial Segment: SectorCompositionCAGR (00-12)10.0%1,6762,2432,9523,4183,8124,3424,7615,0694,2615,253 5,2594,8354,910+8.8%13Volumein million of m372,0%6,8%5,2%3,8%2,1%10,0%Industrial Cogeneration NGV Residential Commercial Thermal Generation22.7%19.0%14.4%12.3%10.1%7.6%6.4%3.4%2.2%1.0%0.7%0.2%CHEMICAL / PETROCHEMICALCERAMICSPAPER AND CELLULOSEMETALS / FOUNDRY AND NONFERROUSGLASS / CRYSTALSDRINKS / FOODAUTOMOTIVE / PNEUMATICTEXTILE / LAUNDRY / DRYCLEANINGOTHERSSTEEL SECTORPHARMACEUTICALELECTRO / ELECTRONIC
  14. 14. Fornecimento de Gás Natural: CONTRATOS14Daily quantity contracted:approximately 13.3 millions of m³/day,besides auction contracts.Daily quantity demanded:approximately 12.9 millions of m³.ContractsNatural Gas SupplyContracts TCQ Firm Contract Auction ThermoelectricContract Models Firm Firm Firm of Short Term Back to BackGas Source Bolivian UndeterminedSurplus of PBs contracts with otherdistributors / thermal power plantsUndeterminedEnd of Contract Jun/19 Dec/13 Sep/13 Dec/13Commodity + TransportationFixed Charge +Variable ChargeTransportation: annualreadjustment according to USAInflation: CPIFixed Charge: annual readjustmentby IGP-MCommodity: quarterly correctionbased on Oil Basket+ Exchange RateVariable Charge: quarterlycorrection based on Oil Basket2.76 MMm3/dayPPI + IGPM and exchangevariation according to theAmerican dollarDQCPrice8.10 MMm3/day 5.22 MMm3/day according to bidsAccording to the bid made by theAuction Winner
  15. 15.  Key growth strategy for Comgás: Geographic expansion, capturing theexisting potential and connectingaround 100.000 clients per year Increase average unit consumption byoptimizing and expanding customerbase High potential market, with growthdriven by: New real estate developments Gas conversions in built residences Large customer base with more than 1million residential clients Alternative for LPG and electricityConcession Area Potential(1)15+ 47 thousand new buildings(launches/developments) to be capturedResidentialDescriptionNote(1): MM of householdsCasas7.5Apart.1.731.2%65.5%3.3%87.8%10.9%1.3%customers to be capturedmarket to be studiedalready connected to NG
  16. 16. 16IndustrialDescription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 morecomplex 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 / industrialproduction Approach small and medium enterprises (SMEs) to anchor expansion projects Bring new industrial corporate clients into the concession area
  17. 17. Natural gas vehicle (NGV) may be used as fuel for both individual and masstransportation;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 thatshould benefit the sector: Fiscal incentives (IPVA reduction) Public transportation policyGrowth Strategy: Project in development: use of NGV in public transportation and other heavy users17Natural Gas Vehicle- NGVDescription
  18. 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 hours18CommercialDescription
  19. 19. Cogeneration:Industrial strategic decision aiming efficiency and energy security in the medium andlong termSustainable growth depends on firm gas supply and price visibility vis-a-vis electricityMarket with a high potential developmentThermal Generation:Demand depends on the level of thermal dispatch (determined by the government)Back to back gas contracts19Cogeneration and Thermal GenerationDescription
  20. 20. Financial and Operational Highlights
  21. 21. 21Highlights1Q13 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. 22. Meters22Total 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 1Q12RESIDENTIALNUMBER OF UDAs*COMMERCIALINDUSTRIAL1Q13 x 4Q12THERMAL GENERATIONCOGENERATIONAUTOMOTIVETOTAL METERSTOTAL CUSTOMERS
  23. 23. 23Volume per Segmentin thousands of m3*Excluding Thermal Generation41,815 50,469 40,882 -17.1% 2.3% 198,872 183,028 8.7%25,793 28,274 26,196 -8.8% -1.5% 111,662 108,272 3.1%928,145 937,275 934,538 -1.0% -0.7% 3,788,744 3,850,930 -1.6%82,659 89,344 86,034 -7.5% -3.9% 357,530 345,754 3.4%59,961 66,759 67,679 -10.2% -11.4% 274,809 290,878 -5.5%1,138,373 1,172,121 1,155,329 -2.88% -1.47% 4,731,617 4,778,862 -1.0%12.6 12.7 12.7 12.9 13.1527,014 55,884 843.0%1,367,015 1,428,911 1,187,547 -4.33% 15.11% 5,258,631 4,834,746 8.8%228,642 256,790 32,218 -11.0% 609.7%TOTALMMm³/day*THERMAL GENERATIONTOTALINDUSTRIALCOGENERATIONAUTOMOTIVERESIDENTIALCOMMERCIAL2012 2011 2012 x 20111Q13 4Q12 1Q12 1Q13 x 4Q12 1Q13 x 1Q12
  24. 24. 75129 1221Q12 4Q12 1Q132202583141Q12 4Q12 1Q13269 270 2621Q12 4Q12 1Q13110143921Q12 4Q12 1Q1322%43%-5%63%-3%-3%-36%-16%EBITDAin million of R$Normalized IFRSNet IncomeFinancial Performance24
  25. 25. 25Financial Performancein thousand of R$1,447,744 1,467,168 1,120,356 -1.3% 29.2% 5,279,523 4,102,660 28.7%-1,032,376 -1,083,253 -801,415 -4.7% 28.8% -3,881,871 -2,996,617 29.5%415,368 383,915 318,941 8.2% 30.2% 1,397,652 1,106,043 26.4%-99,656 -124,929 -94,249 -20.2% 5.7% -426,442 -387,744 10.0%-1,358 -1,520 -4,516 -10.7% -69.9% -9,450 -2,015 369.0%314,354 257,466 220,176 22.1% 42.8% 961,760 716,284 34.3%-79,702 -73,438 -67,124 8.5% 18.7% -290,008 -240,595 20.5%-50,023 -28,957 -39,749 72.7% 25.8% -163,650 -159,960 2.3%184,629 155,071 113,303 19.1% 63.0% 508,102 315,729 60.9%121,591 129,280 74,509 -5.9% 63.2% 366,655 236,139 55.3%Normalized by Current Account (unaudited figures)-46,420 18,757 53,916 -347.5% -186.1% 230,528 380,025 -39.3%262,013 269,935 268,735 -2.9% -2.5% 1,169,892 1,107,120 5.7%91,893 142,598 110,077 -35.6% -16.5% 522,561 490,712 6.5%NET INCOMEFinancial ResultsOPERATIONAL RESULTNET INCOMECURRENT ACCOUNTEBITDACost of Assets and / or Services RenderedGROSS MARGINExpenditures with Sales, General and Adm.Other Operational ResultsEBITDADepreciation and Amortization2012 2011 2012 x 2011NET SALES1Q13 4Q12 1Q12 1Q13 x 4Q12 1Q13 x 1Q12
  26. 26. 26Financial IndicatorsAnnualized figures19.15 18.84 11.024.06 4.32 2.490.99 0.97 1.552.15 2.27 2.740.40 0.39 0.330.68 0.58 0.6228.7% 26.2% 28.5%21.7% 17.5% 19.7%8.4% 8.8% 6.7%7.8% 8.7% 6.6%21.2% 22.9% 22.6%Normalized by Current Account (unaudited figures)27.6% 30.1% 35.4%19.9% 20.5% 25.8%7.0% 10.8% 25.8%1Q13 4Q12 1Q12Gross Revenue (%)Equity per share ($)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. 27Current Accountin million of R$29 12-55-157-230-198-128-5150204360 362381334dec.09 mar.10 jun.10 sep.10 dec.10 mar.11 jun.11 sep.11 dec.11 mar-12 jun.12 sep.12 dec.12 mar.13
  28. 28. 751244 162 186 101 1882975594 99 276 1472013 2014 2015 2016 2017 2018forwardLocal Currency ForeignCurrencyEstrutura de Endividamento299256 285377 3351,048Debt Structurein thousands of R$Debt Amortization Schedule (R$ mm) Debt Composition – Mar/13*EBITDA considering the last 12 monthsShortTerm40%LongTerm60%EIB20%BNDES41%Others38%Debt Mar 13 Mar 12Short Term Debt 1,048,314 708,298Long Term Debt 1,551,233 1,437,644Total Debt 2,599,547 2,145,942(-) Cash 327,504 104,341(=) Net Debt 2,272,044 2,041,601EBITDA 1,057,385 744,082Net Debt / EBITDA 2.15 2.74Short Term Debt / Total Debt 0.40 0.33
  29. 29. Investimentos29Investmentsin million of R$121175mar/12 mar/13+44%262300mar/12 mar/13Network Extension (in thousands of km)São João da Boa VistaHortolândiaMonte MorCapivariTaubatéPiracicabaOsasco IIRio ClaroMain Projects+15%
  30. 30. 2.6 2.93.3 3.6 3.94.54.9 5.15.76.26.98.09.32000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012100229200230276474426397 403 406 4055106162000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012InvestimentosMain Projects:Network Extension (in thousand of km):Mogi das CruzesTaubatéOsasco IIGuarulhosSão José dos CamposItaqueraSão Bernardo do CampoRio ClaroJabaquara IIHortolândiaCampinas IIPiracicabaNew Projects:SJBV / AguaíTaboão da SerraSanto AndréSantos Noroeste3071municipalitiesconnectedInvestmentsin million of R$ +21%
  31. 31. 31PAY OUT Previous AccountabilityPAY OUT IFRSShareholder Remunerationin million of R$Nota: Payout calculated based on remuneration deliberated by the Company during the period11 1627 25303330 334275 2684274502002001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 201217% 15%26%10%95%77% 75%53%73%105%92%38%74%190%55%
  32. 32. 32Market Performance(Jan – Mar 2013)-2.0004.0006.0008.00010.00012.00014.00080859095100105Volume CGAS5 IBOVCGAS5Dec 12 = R$ 58.50Mar 13 = R$ 56.00Var = -4.27%IBOVDec 12 = 60,952Mar 13 = 56,352Var = -8.16%Base 100 Vol CGAS5(R$ 000)
  33. 33. INVESTOR RELATIONSinvestidores@comgas.com.brwww.comgas.com.br/en/investorsROBERTO LAGECFO andIROANDRÉ SALGUEIROInvestor RelationsRua Olimpíadas, nº 205, 10º floor - Vila Olímpia - CEP 04551-000 / São Paulo - SP - Brazil33

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