Apimec 2014 ing
description
Transcript of Apimec 2014 ing
1
PUBLIC MEETINGCTEEP 2014
2
Principal Challenges
Growth Opportunities
3Q14 Financial Results
Questions and Answers Session
Monitored Visit
A CTEEP
3
APIMEC 13 Year Seal
4
História CTEEP
1999
CTEEP is incorporated with the transmission assets of CESP
Incorporation of EPTE – Empresa Paulista de Transmissão de Energia Elétrica
Rollover of Concession Agreement 059/2001 with ANEEL, beginning a new cycle for its businesses.
The IEMadeira transmission line becomes operational and conclusion of work on IEMadeira
ISA sets out a new business vision for the long term
Adheres to Level 1 of Bovespa’s Corporate Governance
CTEEP is privatized. ISA becomes the new controller
2001
2002 2006
2012 2013 2014
Expansion to 16 Brazilian states result from participation in auctions and acquisitions
Business portfolio with 8 subsidiaries, investments of R $ 6.2 billion and RAP of R $ 670.2 MM
5
Breakdown of Shareholding - CTEEP
Preferred Shares – TRPL4(60% do total)
Common Shares - TRPL3(40% do total)
Capital Total
89.5%
9.8%
0.7%ISA Capital do Brasil
Eletrobras
Others
3.6%
52.4%
9.6%7.0%
27.4%
ISA Capital do BrasilEletrobrasState Government of São PauloVinci LtdaOthers
38.0%
35.4%
5.8%4.2%
16.7%
ISA Capital do BrasilEletrobrasState Government of São PauloVinci LtdaOthers
89.5%
9.8%
0.7%ISA Capital do Brasil
Eletrobras
Others
3.6%
52.4%
9.6%7.0%
27.4%
ISA Capital do BrasilEletrobrasState Government of São PauloVinci LtdaOthers
38.0%
35.4%
5.8%4.2%
16.7%
ISA Capital do BrasilEletrobrasState Government of São PauloVinci LtdaOthers
89.5%
9.8%
0.7%ISA Capital do Brasil
Eletrobras
Others
3.6%
52.4%
9.6%7.0%
27.4%
ISA Capital do BrasilEletrobrasState Government of São PauloVinci LtdaOthers
38.0%
35.4%
5.8%4.2%
16.7%
ISA Capital do BrasilEletrobrasState Government of São PauloVinci LtdaOthers
89.5%
9.8%
0.7%ISA Capital do Brasil
Eletrobras
Others
3.6%
52.4%
9.6%7.0%
27.4%
ISA Capital do BrasilEletrobrasState Government of São PauloVinci LtdaOthers
38.0%
35.4%
5.8%4.2%
16.7%
ISA Capital do BrasilEletrobrasState Government of São PauloVinci LtdaOthers
89.5%
9.8%
0.7%ISA Capital do Brasil
Eletrobras
Others
3.6%
52.4%
9.6%7.0%
27.4%
ISA Capital do BrasilEletrobrasState Government of São PauloVinci LtdaOthers
38.0%
35.4%
5.8%4.2%
16.7%
ISA Capital do BrasilEletrobrasState Government of São PauloVinci LtdaOthers
89.5%
9.8%
0.7%ISA Capital do Brasil
Eletrobras
Others
3.6%
52.4%
9.6%7.0%
27.4%
ISA Capital do BrasilEletrobrasState Government of São PauloVinci LtdaOthers
38.0%
35.4%
5.8%4.2%
16.7%
ISA Capital do BrasilEletrobrasState Government of São PauloVinci LtdaOthers
6
Perfil da ISA
49-year track record in the energy transmission sector Assets in energy transmission, telecoms and highways Footprint in Brazil, Chile, Argentina, Colombia, Peru, Bolivia
and Central America USD 946 million in operating revenue in the first half of
2014
Fonte: 2ºITR 2014 ISA
EBITDA by country EBITDA by business
Multilatina works with 33 companies in 8 countries and 4 busin
Colômbia
Chile
Peru
Brasil
Outros
41,1%
28,2%
15,6%
1,4%
13,6%
Transporte de Energia
Concessões Viárias
Telecomunicações
Gestão Inteligente de Tempo Real
68%
2,8% 0,8%
28,4%
7
Perfil da CTEEP
Responsible for transmission of about 25% of all the energy produced in Brazil and 60% of the energy consumed in the southeast region and approximately 100% in the state of São Paulo.
13,726 Km in transmission
lines
19,189 Km of circuits
107 substations
45.737 MVA of installed
transformation capacityData: 30/set/14
8
Expansion in Brazil
Present in 16 Brazilian states
Subsidiarie State(s)CTEEP
Participation
RAPTotal(R$)
Pinheiros SP 100% 34.8 MM
Serra do Japi
SP 100% 32.6 MM
IEMG MG 100% 14.3 MM
Evrecy MG e ES 100% 10 MM
Madeira RO, MT, GO, MG e SP 51% 445.4 MM
Garanhuns PB, PE, AL 51% 81.4 MM
IESUL PR, SC e RS 50% 14.1 MM
IENNE MA, PI e TO 25% 37.9 MM
9
CTEEP
Growth Opportunities
3Q14 Financial Results
Questions and Answers Session
Monitored Visit
Principal Challenges
10
Vision 2020
11
Value Drivers
O&M
EFFICIENCY
Investments
PROFITABILITY
Subsidiaries
GOVERNANCE
Indemnification
FAIR VALUE
Contingencies
REDUCTION
Optimization of Costs
Tax Optimization
Optimization O&M Model
Optimization of CapEx
Utilization of Inventory
Centralization of FIN/ADM 100% in CTEEP
Controls of IEMG and Evrecy via COT
RBSE Report
Área de Assuntos Regulatórios
Strategic Project for Liability Management
12
Operation and Maintenance
Costs/Tax Optimization
Actions already adopted Review of support and operational processes
Contract renegotiation Adequacy of scope Review of assumptions anticorrosive treatmen
Adjustment of investments in R&D
PIS/COFINS credit for Inputs and Fixed Assets
Studies in Progress Optimization of the O&M model, capture of efficiency 2015- 2020 Other support processes (services agreements) Logistics and Supplies
R$ MM
(*) exclui custos de construção e despesa de depreciação
13
Investments
Principal Initiatives
Equilibrium of Profitability from Projects
Analysis of insourcing of inspection and commissioning activities
CTEEP Prices Bank vs Aneel
Optimization of Inventory
Review of investments governance
Optimization of CapEx
14
Subsidiaries
Governance and Efficiency
IEMadeira Conclusion of work in May 2014 Economic and financial rebalancing of Lote D requested of ANEEL
Cost overrun: R$ 342 million / Loss of RAP R$ 251million / Readjustment of 26.8% in RAP
Stakes in 8 subsidiaries Total investment of R$ 6.2 bi Capital injections by CTEEP of
R$ 1.6 bi RAP 14/15 of R$ 670.6 million Portfolio totally operational in
2015
Wholly-owned Subsidiaries Evrecy and IEMG controlled by
COT Coordination and centralization
of the financial/administrative functions
ES
PBPE A
L
15
Indemnification
Status
Indemnification as offset for reduction in RAP for the anticipated return of capital
RBNI (Upgrades and Improvements): R$ 2,891 million 50% cash paid in January 2013 and 50% in monthly installments for January 2013 through July 2015, Interest at IPCA +
5.59% p.a
RBSE (Basic Network – Existing System): pending since December 2012 Absolute priority of Management Independent report delivered to ANEEL on August 14 with a value of R$ 5,186 million
16
Indemnification
Physical Inventory of 140 ESs, 85 locations isolated from Telecom and 2,000 km of transmission lines (sample), distributed throughout the state of São Paulo in 4 months;
Transformers: 600 units Circuit breakers: 1,600 units Load break switch disconnectors: 7,000 units CT’s/PT’s: 9,000 units Towers: 31,000 towers, totaling 44,000 tons. Conductors: 14,000 km length of line totaling 150,000 tons.
Permanent mobilization of 110 employees to assist the valuation company in its
work; Reconciling Physical-Book of 171 thousand registrations; Analysis of 5 thousand acquisitions of machines/equipment to make up the Prices Bank; Analysis of 700 ES and TL projects and the classification of 157 thousand registrations
for determining the percentages of COM and CA, Verification of eligibility in the case of 2 thousand land deed registers and 19 thousand
rights of way; Analysis and classification of 110 thousand assets either in the from of Existing Systems
or Upgrades and Improvements
17
Indemnification
Valuation Report
ANEEL Inspection - October 14 to 31, 2014
Inspection Monitoring Report – scheduled for the first half
of January 2015
Ratification of the Report by ANEEL’s Executive Board
NRV R$ 20.212 million
RBV : R$ 5,186 million
Baseline date: December 31, 2012
Prices Bank CTEEP average Aneel average Corrected booking
Baseline date: December 31, 2012Critérios
Etapas Futuras
Resultado
18
O&M | Investments | Indemnification
Institutional Relations
Public Hearing 021/2014 – Review of Resolution REN 443/2011 Inclusion of revenues for Improvements for the period 2013/18 Treatment of Assets at the end of their useful regulatory life Treatment of revenue for emergency investments (accidents and claims)
Public Hearing 022/2014 – Creation of a Minimum Maintenance Plan To establish the Minimum Maintenance Plan for Transmitters To establish exemption from the Variable Parcel for scheduled downtime
REN589/2013 Regulatory Annuity Baseline – BAR: remuneration, amortization and depreciation in the
form of annuities, To define the cost of the BAR, 5% of AOM costs since Jan/2013
Public Hearing 027/2014 – Revision of REN 270/2007 Equilibrium in the application of the Variable Parcel Revise the Permitted Outage Times for the Resumption of Transmission Line
Operations
Creation of a Regulatory Unit underscores Management priorities and focus on themes critical to the Company
19
CTEEP
Principal Challenges
3Q14 Financial Results
Questions and Answers Session
Monitored Visit
Growth Opportunities
20
Ten Year Energy Expansion Plan to 2022
Increase of 205.5 TWh in Brazilian electric energy consumption from 2013 to 2022 59.2% of the increase in Brazilian consumption will be in the Southeast. Center –
West where CTEEP is the leading transmission company for energy transportation Need for expansion via auctions or authorizations
Electricity consumption in the network by subsytem
21
CTEEP
Principal Challenges
Growth Opportunities
Questions and Answers Session
Monitored Visit
3Q14 Financial Results
22
Highlights 3Q14
Increase in Net Income for 9M14
Increase in Ebitda and Ebitda Margin in 9M14
Readjustment in Annual Allowed Revenue (RAP)
Increase in Capital
23
559.235.6 20.1 574.8 3.9 578.8
555.4
RAP 13/14 IPCA / IGPM Tariff Review RAP 13/14 Adjust.Parcel
Total RAP14/15
Total RAP13/14
Annual RAP Readjustment
(R$ million)
+21,7%
+6,9%
+4,2%
CTEEP
Jointly Controlled Subsidiaries
Subsidiaries
100%
581.837.3
19.6 638.821.1 659.9
542.0
RAP 13/14 IPCA / IGPM Reinfor. RAP 14/15 Adjust.Parcel
Total RAP14/15
Total RAP13/14
6.1 -1.4 91.9 -0.1 91.7 85.8
RAP 13/14 IPCA / IGPM Tariff Review RAP 14/15 Adjust.Parcel
Total RAP14/15
Total RAP13/14
87.2
24
Breakdown of Revenue
9M13 9M14
Growth of 13.3% in net revenue
406.4
110.0
131.1
647.5
(86.6)
560.9 530.8
138.8
122.3
791.9
(89.2)
702.7
18.0
38.7
88.4145.1
(11.8)
133.3
19.7
19.2
61.1 100.0(5.3)
94.7
424.4
148.8
219.5 792.6 (98.4)
694.2
550.5
158.0
183.4 891.9 (94.5)
797.4
O&M Construction Financial/Others
GrossRevenue
Deductions NetOperatingRevenue
O&M Construction Financial/Others
GrossRevenue
Deductions NetOperatingRevenue
Company Subsidiaries
25
498.6434.3
55.1
37.4
9M13 9M14
TOTAL
Company Subsidiaries
553.6
471.7
Operating Costs and ExpensesEfficiency in the management of costs and expenses
-14.8%
O&M
Construction
General/Adm
(R$ million)
228.8 197.0
9.415.2
238.3212.2
128.6 111.4
3.1 3.1
131.7 114.5
141,2 115,4
42,517,5
9M13 9M14
183.7145.0
26
-415.8
166.8
-324.2
384.1
13.9
6.1
25.0
14.2
100.5192.1
13.9
25.0
3Q13 3Q13 exProvisonSEFAZ
3Q14 9M13 9M13 exProvisonSEFAZ
9M14
Company Subsidiaries
114.4
172.8
(292.2)
217.1
398.3
(401.9)
Ebitda ICVM 527 and Ebitda Margin
28.4%
46.9%
Ebitda Margin
(R$ million)
39.7%
50.4%
31.3%50.6%
27
Equity
(R$ million) 9M13 9M14
Total Equity Income: R$ 53.8 Total Equity Income : R$ 71.843,0
1,0 0,1 0,4
Madeira Garanhuns IENNE IESUL
60.2
1.8
(9.7)1.4
54.8
12.4
3.8 0.9
28
18.0
3.2
78.0
28.6
-4.7 -4.2
-13.8 -13.0
Company Subsidiaries
13.3
3T13 9M133T14 9M14
64.3
15.6
(1.0)
13.3
3T13 9M133T14 9M14
64.3
15.6
(1.0)
Financial Result
(R$ million) -71,5%
-107,5%
Remuneration of the indemnification for upgrades and improvements (NI)
29
Net Income
(R$ million)
+46,7%
+47,5%
Earnings per share reached R$ 1.9579 in 9M13
-245.3
95.5140.1
-126.9
213.9
315.7
3Q13 3Q13 exProvision
SEFAZ
3Q14 9M13 9M13 exProvision
SEFAZ
9M14
3T133T13
3Q13 9M13
30
Net Debt
R$ 127.7 million increase in Capital
(*) As from January 2013, the Company channeled its financial investments into exclusive investment funds. The investment fund units are highly liquid and are readily convertible into cash irrespective of the maturity of the assets.
Debt 1,286.2 1,239.5 3.8%
Short-term Debt 375.0 377.7 -0.7%
Long-term Debt 911.2 861.8 5.7%
Cash* 777.7 600.0 29.6%
Net Debt 508.5 639.5 -20.5%
Debt(BRL millions)
9M14 2013 Δ%
31
Amortization of Debt
Settlement of 1st Series Debentures
(R$ million)Future Cash (NI) 2014 2015 Total
Accounts Receivable (NI) - (projection) 142.4 332.2 474.6
Interest Income on the Accounts Receivable (projection)
11.6 12.0 23.5
Total 153.9 344.2 498.1
Cash and Financial Investments on 09/30/14: R$ 777.7 millions
207.7
150.9
197.5 197.6 179.0
13.0
59.4 29.2
9.7
35.7
26.5 26.5 26.5
85.4
15.0
217.4186.6
224.0 224.1 205.5
39.5
2014 2015 2016 2017 2018 2019 2020 a 2024 2025 a 2029
Company Subsidiaries
144.8
44.2
26.5
32
Gross Debt of Joint Subsidiaries
1.245,1
101,257,9 18,9
Madeira Garanhuns IENNE IESUL
CTEEP stake
2013 3T14
(R$ million)
Total Gross Debt: R$ 1,423.2 Total Gross Debt: R$ 1,484.4
1,245.1
101.257.9 18.9
1,242.9
166.6
57.1 17.8
33
Performance in the Capital Markets
220.6 thousand
transactions up to
09/30/2014.
Daily Average of 1,161
transactions.
Market cap. In
09/30/2014 R$ 6.3
billion.
Share performance up to 09/30/2014
75.00
100.00
125.00
150.00
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14
TRPL3 TRPL4 IBOVESPA IEE
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14
Trade Financial - 09/30/2014(R$ million)
Total R$ 1.312 Million Daily Average / Day R$ 6.9 million
34
CTEEP
Principal Challenges
Growth Opportunities
3Q14 Financial Results
Visita Monitorada
Questions and Answers Session
35
Disclaimer
All statements contained herein with regard to the Company’s
business prospects, projected results and the potential growth
of its business aremere forecasts, based on local management
expectationsin relation to the Company’s future performance.
Dependent as they are on market shifts and on the overall
performance of the Brazilian economy and the sector
and international markets, such estimates
are subject to changes.
36
Sessão de Perguntas e Respostas
Monitored Visit
A CTEEP
Principais Desafios
Oportunidades de Crescimento
Resultados Financeiros do 3T14