Apimec presentation 03-31-2009
Transcript of Apimec presentation 03-31-2009
Apimec
March, 2009
AES AES BrasilBrasil OverviewOverview
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► The Group consists of approximately 6 thousand employees, attending over 6 million clients
AES Brasil in 2008
Distributed Energy: 41,243 GWh
Installed Capacity: 2,651 MWNet Extension : 2,092 km
Net Extension: 2,017 km
Distributed Energy : 8,891 GWh
Negotiated Energy: 2,555 GWh
Installed Capacity: 640 MW
Safety, number 1 value of AES Safety, number 1 value of AES BrasilBrasil GroupGroup
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► Over R$12 million invested
► Tolerance Zero Program
► Safety with population: TV, Radio, Newspaper (mass media)
► Culture evolution of safety at AES Brasil Group
Reduction of Accidents
Own Employees + Contracted
5 Values of AES Brasil
► Safety at first
► Acting with integrity
► Honor commitment
► Search of excellence
► Be fulfilled at work
178
87
2007 20082006
50
111
Recent changesRecent changes
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Higher Operational Performance in 2008
Finance Restructuring by 2005 to 2008
Higher Financial Result in 2008
► FEC: lowest index in AES Eletropaulo’s history, 5.20 in 2008
► Avoiding fraud: AES Eletropaulo regularized 450 thousand illegal connections since its privatization
► Energy generation: AES Tiete generated an average of 14% above its assured energy in the last 6 years
► Amortization schedule: Average term of 4.1 years in 2005 to 5.7 years in 2008
► Reduction of financial cost: from 16.2% p.a. in 2005 to 13.3% p.a. in 2008
► No relevant amortizations in 2008 and 2009
► Net income of R$1.7 billion
► Balance of R$ 3.0 billion
AES AES BrasilBrasil ResultsResults
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Investments – R$ million Ebitda – R$ million
Net Debt – R$ million Net Income – R$ million
2007 2008
779714
2006
636
+ 22%
2007 2008
3.2342.490
2006
3.284
- 2%
2007 2008
1.695
549
2006
1.415+ 20%
2007 2008
4.2225.070
2006
7.431- 43%
Social Responsibility
March, 2009
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► 280 benefited children between 1 and 6 years old
► Own investments amounting R$ 1.5 million in 2008
► Units: Santo Amaro and Guarapiranga
► Over 4 thousand children, teenagers,and adults have been benefited
► Own and encouraged investments: approximately R$ 12 million in 2008
► Activities of acting, dancing, circus arts, visual arts, music, gymnastics, courses of income generation, and education of safe use of electrical power and the right use of natural resources
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Social responsibilitySocial responsibility
“Casa da Cultura e Cidadania” Project
“Centros Educacionais Infantis Luz e Lápis” - Project
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► Launched in December 2008;
► Objective: encourage employee to transform the low income communities and develop non governmental institutions;
► Over 1.4 thousand volunteers registered (25% of AES Brasil total employees).
Volunteer Program
Social responsibilitySocial responsibility
Apimec
March, 2009
AES Eletropaulo overviewAES Eletropaulo overview
► Largest electricity distribution company in Latin America
► Serving 24 municipalities in the São Paulo Metropolitan area,
including the capital
► 4,141 directed employees
► 5.8 million of consumption units
Concession Area
Regional West
Regional East
Regional South Regional ABC
Regional North
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2008 Consumption2008 Consumption
1 – Own consumption not considered 11
Free Clients
Commercial
15.9%15.9%
6.2%6.2%
35.0%35.0%
25.0%25.0%
Total Consumption Evolution - (GWh)1
Free Clients
2006 2007 2008
410410
38,183 39,93241,243
Captive market
31,65631,656
6,5276,527
32,57732,577
7,3557,355
33,86033,860
7,3837,383
+ 8%
Consumption Share - (GWh)1
17.9%17.9%
Residential
Others
Industrial
Investments amounted up to R$ 457 million in 2008Investments amounted up to R$ 457 million in 2008
Customer Financed
Investments Breakdown – R$ million Investments 2008
4747
2006 2007 2008 2009(e)
301301364364
410410
6969378378
433433457457
482482
7777
8080
562562
10%10%
5%5%
12%12%
18%18%
10%10%
45%45%
Customer Service and System Expansion
Customer Financed
Loss Recovery
Maintenance
IT
Others
Capex
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Best FEC in AES Eletropaulo historyBest FEC in AES Eletropaulo history
1 – Duration of interruption 2 – Interruption frequency
Source: Aneel and Eletropaulo13
DEC1 e FEC2
11.81 11.34 10.92
9.208.907.87
2006 2007 2008
DEC (hours) FEC (times)DEC Aneel Standard FEC Aneel Standard
8.618.49 8.41
5.64 5.205.52
2006 2007 2008
ABRADEE ranking position between 28 distributors with over 500 thousand consumers
3o3o 3o 1o
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Operational indexesOperational indexes
► Cuts and Reconnection – Monthly Average (2007 X 2008)– Cuts: reduction from 112 thousand to 51 thousand
– Reconnection: reduction from 71 thousand to 36 thousand
► Bad debtor list 2008: 536 thousand
Collection Rate – % over gross revenue Loss Reduction – %
► Fraud and Illegal Connections (2008)– 435 thousand inspections and 58 thousand frauds
detected
– 75 thousand illegal connections regularized
1 - Current Technical Losses used retroactively as reference
2008
97.8
2007
99.5
2006
99.1
200820072006
5.55.5 5.15.1
6.56.5 6.56.5
11.612.0
5.05.0
6.56.5
11.5
Commercial Losses Technical Losses1
- 1.3 p.p. - 0.4 p.p.
10% revenue increase10% revenue increase
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2007 2008
7,5297,193
2006
6,852
+ 10%
Regulatory WACC (%)
2007 20082006
1,7661,6961,566
17.115.1
20072003
Gross Revenue – R$ million Ebitda – R$ million
EMBI+ BR 4.63% 2.21%
Selic Target 16.50% 11.25%
2008 Net income exceeded R$ 1.0 billion2008 Net income exceeded R$ 1.0 billion
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Net Income – R$ million
2007 2008
1,027
713
2006
373
Dividend payout – R$ million
34.9%
100.3% 101.5%
3.2%
14.4%20.3%
130 715
1,043
Dividends1 Pay-out Yield2
► Payment of 101.5% of net income in 2008 in form of dividends and IoE
2007 20082006
+ 175%
1 - including proposed complementary dividend 2 - Gross amount
Maintenance of net debt reductionMaintenance of net debt reduction
1 – Last 12 months of adjusted Ebitda 2 - Fundação Cesp = Pension Fund 3 – Exchange Rate in 12/31/2008 – US$ 1.00 = R$ 2.337017
► Extension of maturity of the Mathmetical Reserve Contract Adjustment with Fundação Cesp from 2022 to 2028
► AEs Eletropaulo average debt cost is CDI + 0.36% p.a.
Net Debt
9
524
250 250 25050 125
375258
117
117 117 117
117117
1,162
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2009 2010 2011 2012 2013 2014 2015 2016-2028
National Currency (w/out FCESP)
Amortization Schedule – R$ million
Net Debt / AdjustedEbitda1
3.73.0
2.5
2.1x
1.3x 1.2x
2007 20082006
Net Debt (R$ billion) FCESP2 Foreign Currency3
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One more year of awardsOne more year of awards
► Maintenance on ISE (Sustainability Index) for 2009 (BM&FBovespa – Nov.08)
► National Quality Award, company recognized as a reference on global management (National Quality Foundation – Oct.08)
– Finalist company category
► Value Creation Prize for Shareholders in the Sector, in the category Eletric Energy (Abrasca -Associação Brasileira das Companhias Abertas – Aug.08)
► Most acknowledged company on sustainability among companies from the public sector (Revista Imprensa – May.08)
Corporate GovernanceCorporate Governance
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AES Eletropaulo X Ibovespa X IEE
50
60
70
80
90
100
110
120
95
100
105
110
115
120
125
130
20081
20092
1 - Index –12/29/07 = 100 2- Index – 12/30/08 = 100 3 – Preferred shares Class B
dec-082 jan-09 feb-09 mar-09
dec-071 feb-08 apr-08 jun-08 aug-08 oct-08 dec-08 2005
4,171
2006 2007 2008
7,508
26,066 25,677
+80.0%+80.0%
+247.2%+247.2%
Daily Average Volume3 - R$ thousand
IBOV
IEE
ELPL6
-29.9%
2.8%
18.1%
-11.6%
-41.2%
3.6%
Apimec
March, 2009
AES AES TietêTietê overviewoverview
► 30 year concession, expires in 2029
► 10 hydroelectric plants in the State of Estado de São Paulo at Tietê, Pardo
and Mogi Guaçu rivers
► Installed capacity 2,651 MW
► Since 2005, 100% of net income distributed as dividends and IoE
Concession Area
UHE Bariri
UHE Nova Avanhandava
UHE Ibitinga
UHE Barra Bonita
UHE Promissão
UHE Água Vermelha
PCH Mogi-Guaçu
UHE Euclides da Cunha
UHE Caconde
UHE Limoeiro
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Operational disposalOperational disposal
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Energy Generation – MW average1
Generation – MW Average
Generation / Assured Energy
2006 2007 2008
1,4241,543 1,510
112%112%121%121% 118%118%
Billed Energy– R$ million
AES Eletropaulo MRE
Spot Market
13,421
573
1,740
11,108
13,148
330
1,680
11,138
2006 2007 2008
12,774536
1,130
11,108
1- Generated energy divided by the amount of period hours
Investments up to R$ 59 million in2008Investments up to R$ 59 million in2008
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Investments – R$ million 2008 Investments
1- SHPP Jaguari Mirim and Piabanha
36%36%
3%3%
12%12%
48%48%
Equip. and Maint.
EnvironmentIT
New SHPP’s
67671212
88
3333
12
2228
4751
59
101
393935354343
2020
New SHPP’s1
Investments
28282222
1212
2003 2004 2005 2006 2007 2008 2009(e)
17% increase in revenues17% increase in revenues
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Gross Revenues – R$ million Ebitda – R$ million
2007 2008
1,6211,464
2006
1,387
+ 17%
2007 2008
1,254
1,099
2006
1,097
+ 14%
Sustainable profitability and dividend paymentSustainable profitability and dividend payment
► 100% payout of net income throughout IoE and dividends
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Net Income – R$ million Dividend Payout – R$ million
2006
100 %
2007
100 %
2008
100 %
12 % 10 % 12 %
614 609692
Dividends1 Pay-out Yield PN2
2007 20082006
609692
614
+ 13%
1 - including proposed complementary dividend 2 - Gross amount
DebtDebt
► Eletrobrás Debt
– Balance: R$ 1,216 million– Monthly amortization– Maturity: in May 15, 2013– Interest of 10% p.a and monetary adjustment of IGP-M
Net Debt (R$ billion)
Net Debt / Ebitda
2006 2007 2008
0.7
0.4
0.7
0.3x0.6x0.6x
Net Debt
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Another year of recognitionAnother year of recognition
► Maintenance on 2009 Corporate Sustainability Index (BMF&Bovespa – Nov.08)
► One of the 20 model corporation on sustainability on Brazil (Guia de Sustentabilidade da Revista EXAME –
Oct.08)
► One of the 150 best corporations to work (Revista Você S.A. / EXAME – Sep. 08)
► Best performance on electricity industry sector for Valor 1000 (Jornal Valor Econômico – Jul.08)
► Most profitable corporation on the electricity industry (Guia Maiores e Melhores (Revista EXAME – Jul.08)
► Most profitable company in the last 5 years among the 500 largest publicly companies in Brazil
(Revista Conjuntura Econômica, da FGV – Jul.08)
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Corporate governanceCorporate governance
AES Tietê X Ibovespa X IEE – 12 Months1 Daily Average Volume - R$ thousand
2005 2006 2007 2008
+72 %+72 %
+54 %+54 %
3,325
5,761
5,4685,531
1,724
4,188
2,6923,566
1,573
1,601
8,1609,097
Preferred Common
1 - Data Base: 12/28/07 = 100 2 – Data Base: 12/29/08 = 100
IBOV
IEE
GETI4
+ 13%
+ 4%+ 3%
- 11%- 12%
- 41%
40
60
80
100
120
Dec-071 Mar-08 Jun-08 Sep-08 Dec-08
80
100
120
Dec-082 Jan-09 Feb-09
2008
2009
The statements contained in this document with regard to the business prospects, projected operating and financial results, and growth potential are merely forecasts based on the expectations of the Company’s Management in relation to its future performance. Such estimates are highly dependent on market behavior and on the conditions affecting Brazil’s macroeconomic performance as well as the electric sector and international market, and they are therefore subject to changes.