2010 Results Presentation
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Transcript of 2010 Results Presentation
2010 Results
March, 2011
2
• Ebitda amounted R$ 2,412.8 million, 35,9% higher than 2009
• Net income of R$ 1,347.7 million, 16.5% higher than 2009
• IFRS: positive impact of R$ 322.6 million in dividends
2010 Highlights
������������������• Energy volume consumption higher than 2009: captive market 2.9% and free clients 15.8%
• Losses: 90 bps lower than 2009
• Approximately 10% reduction in SAIDI and SAIFI in 2010
• Investments of R$ 682.3 million, 32.2% higher than 2009
• Receipt of 2nd installment due to São Paulo Municipality Agreement: R$ 75.5 million
• Financial settlement of the AES EP Telecom quotas in the amount of R$ 265.4 million
• Provision reversal of R$ 86.9 million (pension supplementation)
• Final settlement with Banco Santos S.A. in the amount of R$ 106.3 million
• Proposal for complementary dividends distribution and interest on equity totalizing R$ 916.4 million, composed by R$ 5.16 per ordinary share and R$ 5.68 per preferred share, to be approved on the OGSM, to be held on April 29, 2011
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• Positive tariff adjustment index of 8.00% related to 2010/2011 cycle, with an average effect of
1.62% to the consumers
Regulatory Aspects
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• New methodology proposal for the 3rd Tariff Review Cycle on study by Aneel, with a possible
postponing of the new tariffs application that according to the concession contract is should occur
as from July 4th, 2011
• On January 11th, 2011, Aneel open a proposal in public hearing in order to define the procedures for
the Discos that would have its tariff review before the approval of the methodology
• Aneel's proposal: maintain the tariff as it is for the discos with the date of the tariff review before to
the methodology approval, expected to happen up to September 2001, having the tariff review of
the discos up to 90 days after its approval
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41 – Own consumption not considered
Residential and commercial class growth higher than the captive market performance
Consumption Evolution (GWh)¹
Residential Industrial Commercial Public Sector and Others
Captive Market Free Clientes Total Market
15,014
6,032
10,752
2,638
34,436
6,832
41,269
15,546
6,137
11,081
2,671
35,434
7,911
43,345
2009 2010
+3.5% +1.7% +3.1% +1.2% +2.9% +15.8% +5.0%
5
Losses - (% - last 12 months)Collection rate (% over gross revenues)
1 - Current Technical Losses used retroactively as reference
Collection rate and losses reflect continuous efforts of operational improvements
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2008 2009 2010
98.5101.1 102.4
2008 2009 2010
6.5 6.5 6.5
5.1 5.3 4.4
11.6 11.810.9
Technical Losses¹ Commercial Losses
6
Investments and initiatives improved the SAIFI performance
Source: ANEEL e AES Eletropaulo
SAIFI – System Average Interruption Frequency Index
5.65
5.20
6.17 6.34 6.41 6.29 6.29 6.16 6.12 6.12 5.96 5.855.61 5.52 5.42 5.30
5.55
11.7211.34
11.7412.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00
11.00 11.00
8.49 8.41
7.87
7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39
6.93 6.93
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AES Eletropaulo Brazil Aneel Target - AES Eletropaulo
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Investments and recovery plan implemented from April led to SAIDI reduction
SAIDI – System Average Interruption Duration Index
Source: ANEEL e AES Eletropaulo
8.909.20
11.9012.45 12.74 12.66 12.72
12.39 12.22 12.09 11.79 11.6511.25
10.84 10.6810.18 10.30
16.0816.63
18.70 19.00 19.00 19.00 19.00
20.00
22.00
21.00 21.00 21.00 21.00
20.00 20.00
11.34 10.92
10.099.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32
8.68 8.68
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AES Eletropaulo Brazil Aneel Target - AES Eletropaulo
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Investments 2010 (R$ million)
Capex 2010 of R$ 682 million, 32% higher of 2009
Main investments:
� Enlargement of 9 Sub-stations and increase of the installed capacity of 267 MVA - R$ 174 MM
� Meet the demand of 179 thousand new clients -R$ 132 MM
� Anhanguera-Casa Verde UTL* - R$ 26 MM
� Maintenance of 3,265 km from our grid - R$ 186 MM
*Underground Transmission Line
2009 2010 4Q09 4Q10
226348
81149
260
307
96
133
29
28
15
18
516
682
192
299
Expansion Maintenance Others
9
Investments 2011 (R$ million)
2011 investments 6% higher than 2010
Main investments:
� Installation of 1,700 automatic reclosers (vs. 282 in 2010)
� Installation of 107 thousand phase spacing (vs. 33 thousand in 2010)
� 750 km of reform in the secondary grid and 5,800 km of maintenance in the primary grid (14% of the grid)
� 1 new sub-station2010 2011(e)
348 367
307336
28 17
682 720
Expansion Maintenance Others
101 – Reversal of monetary change revenue regarding sale of fixed assets 2- Borrowing costs, Pension Fund, Stock Options, Fixed Assets and Intangible
IFRS introduction impacts (R$ million)
IFRS adoption positively impacted the dividend distribution basis in R$ 323 million
Net incomebefore IFRS
adoption
RegulatoryAssets andLiabilities
Taxes of Lands
Revaluated
ConcessionContract
Reversion ofExchangeVariation¹
Others² 2010IFRS
Net Income
Openingbalance
adjustments
Adjustmentsrelated to
2009
Realizationof equityvaluation
adjustment
Legal Reserve
5%
2010Distribuiton
Basis
1,186 1,1861,422 1,372 1,352 1,348 1,348 1,348 1,384 1,477 1,542 1,542
236 20 (70)(19) (5)
36 93
121 (56)
11
2009 2010 4Q09 4Q10
8,786 9,697
2,446 2,651
4,5455,017
1,283 1,323
13,331
14,714
3,728 3,975
Net Revenue Deduction to Gross Revenue
Gross revenue (R$ million)
+10%
+10% +7%
+8%
The growth of 10% in net revenues reflects the tariff adjustment (+1.62%) effect, captive market growth
(+2.9%) and IFRS adoption as from 2010
12
PMS0 reduction due to lesser expenses with contingencies
1 - Depreciation not include and other operating income and expenses 2 - Personnel, Material and Services
Operating Costs and Expenses¹ (R$ million)
+7%
+5%
-4%
7%
+17%
-27%
2009 2010 4Q09 4Q10
5,125 5,490
1,238 1,454
1,3061,255
393 285
6,431 6,745
1,631 1,739
Energy Supply and Transmission Charges PMS² and Others Expenses
13
PMS and other expenses (R$ million)
Extraordinary items growth was offset by provision reversal and reduction of lawsuit expenses
2009 Personnel Material and Third Party Services
Others Expenses
2010
1,306 1,3061,405
1,255 1,255
99
91 (240)
14
79
35 40
ConsultingITSAIDI/SAIFI Recovery ProjectsOthers Expenses
34
18 15
33
RAC - Apportionment of the Headquarters’ ExpensesHealth Pan - Law 9656SAT - Occupational Accident InsuranceOthers Expenses
34
1815
33 34
1815
Personnel cost, materials and third-party services without non-recurring items, would have grown,
respectively, 11% and 14%
Materials and Third-party Services (R$ million)Personnel (R$ million)
R$ 99 million variation - 33% R$ 91 million variation - 26%
79
35
40
15
Ebitda (R$ million)
Market growth, non recurring events, lower provisions and contingencies, positively
contributed Ebitda
1 – Personnel, Materials, Services and Others 2 – One-off effect items: R$ 265.4 million AES EP Telecom liquidation, R$ 75.5 million Sao Paulo Municipality Agreement and R$ 86.9 million reversal of provisions referred to supplementary pension plan litigations
2009 Market PMSO¹ Otherrevenues
andexpenses
2010without IFRS and One-off
Effects
IFRS One-offeffects²
2010
1,775 1,775 1,898 1,829 1,829 1,8291,985
2,413
218 (96)(69) 156
428
16
2009¹ 2010² 4Q09 4Q10
270
103
268
31
Financial Result (R$ million)
-62%
Positive effect of the settlement with Banco Santos in 2010, lower than impact of application to Refis in 2009
-88%
1 – Application to Refis R$ 275 million 2 – Settlement with Banco Santos R$ 106 million
17
2009 2010 4Q09 4Q10
782997
327 218
374
350
298
81
1,156
1,348
625
300
Recurring One-off effects
101.6%114.4%
20.4%
28.6%
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Pay-out¹ Dividend Yield
-30%
-50%+29%
+17%
2010 pay-out reaches 114.4%, impacted by net income growth of 17%
1 – Pay-out in 2009 calculated based on net income and distributable in 12.31.2009
Net Income (R$ million) Final Cash (R$ million)
+33%
2009 2010
1,2491,664
18
2008 2009 2010
2.5
2.7
2.4
Net Debt (R$ billion)
1.5x 1.4x
0.9x
Net Debt/Ebitda Adjusted with Fcesp
Average Cost and Average Term (Principal)Net Debt
1 - Last 12 months of EBITDA Adjusted 2 – Brazil’s Interbank Interest Rate percentage
¹
Reduction of 11% in net debt and 2010 refinancing contributed positively to reduce cost and the length of term of the debt
2008 2009 2010
102.8%
114.9%110.0%
CDI²
7.1 7.0
7.2
Average Term - Years
19
� �������� ������� • Preferred Shares Class A conversion into Class B, ensuring 100% of tag along to all preferred shares issued by the Company
• Maintenance of AES Eletropaulo shares in ISE – BM&FBovespa Sustainability Index, for the 6th consecutive year
• AES Eletropaulo entry in ICO2 Index - BM&FBovespa Carbon Efficiency Index –reinforcing the commitment with the adoption of transparency practices related to its greenhouse gas emission
• Highlight among the most admired companies in Brazil, according to the ranking elaborated by Carta Capital Magazine
• Prêmio Ibero-Americano de Qualidade (Iberian-American Award of Quality), which recognizes management excellence of the participating companies and organizations
• Prêmio Consumidor Moderno de Excelência em Serviços ao Cliente (Clients Services Excellency Award), in Electric Energy category, from Consumidor Moderno Magazine
Governance and Recognition
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