CTEEP's Results Presentation 1Q16
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Announcement of Results 1Q16 April 29. 2016
Transcript of CTEEP's Results Presentation 1Q16
Announcement of Results 1Q16
April 29. 2016
2
Highlights 1Q16
Increase of 6.3% in Net Revenue compared with 1Q15 reporting R$ 269.5 MM Costs and expenses below inflation period Ebitda of R$ 151.5 MM and a Margin of 56.2% Net Income of R$ 98.2 MM in the period
Increase of 17.6% in Net Revenue in relation to 1Q15 reporting R$ 237.4 MM Costs and expenses below inflation period Ebitda of R$ 124.4 MM and a Margin of 52.4% Net Income of R$ 66.1 MM in the period
FinancialIFRS
Financial Regulatory
Regulatório
3
Consolidated Revenue
Conclusion of upgrading projects in substations and transmission lines
Correction of RAP for inflation
Inclusion of CAIMI in the RAP
Monetary restatement for the period and new investments in concession assets
(R$ MM)
1.233,11.096,3 1.089,3
Growth of 7.4% in Gross Revenue
IFRS
0.1
Compensation Asset Concession 14.7
Operation and Maintenance 30.9
Infrastructure
Others
-24.4
Gross Revenue 1Q15 285.7
269.5Net Revenue
+7.4%
Deduction -37.5
Gross Revenue 1Q16 307.0
4
Consolidated Revenue
Entry into operation of new investments amounting to R$ 4.2 million
Correction of RAP for inflation
Inclusion of CAIMI in the RAP
1.233,11.096,3 1.089,3
Growth of 18.4 % in Gross Revenue
Regulatory
230.0
237.4
42.4
Gross Revenue1Q15
+18.4%
Deductions -35.0
Net Revenue1Q16
Gross Revenue1Q16
Others 0.1
272.4
RAP (O&M and CAAE*)
* CAAE Remuneration of Annual Cost of Electricity Assets
(R$ MM)
5
Evolution in Costs and Expenses
Collective bargaining agreement of 8.2%. June/15
Increase in material and services due to the outsourcing of pending contracts in 1Q15 in the amount of R$ 5.5 MM (non-recurring)
Recognition of provisions for labor contingencies in 1Q15 (outsourced services)
1.233,11.096,3 1.089,3
Increase in recurring costs and expenses below the level of
inflation for the period
IFRS
1Q16 117.4
Contigencies
Sub-Total
Others*
MaterialServices
Personnel
1Q15 116.1
2.1
128.4
4.1
6.1
-11.0
(*) Includes depreciation
(R$ MM)
6
Evolution in O&M Consolidated Costs and Expenses
Collective bargaining agreement of 8.2%. June/15
Increase in material and services due to the outsourcing of pending contracts in 1Q15 in the amount of R$ 5.5 MM (non-recurring)
Recognition of labor contingencies in 1Q15 (out-sourced services)
1.233,11.096,3 1.089,3
Regulatory
4.5
4.3
1Q16 129.3
Contigencies
Sub-Total
-11.0
Others*
140.3
MaterialServices
3.7
127.71Q15
Personnel
(*) Includes depreciation
(R$ MM)
Increase in recurring costs and expenses below the level of
inflation for the period
7
Consolidated Financial Result
Termination of restatment of accounts receivable by reversal restated according to IPCA + 5.59 under Law 12.783
Increase in monetary variation with the restatement of provisions for legal contingencies
1.233,11.096,3 1.089,3
Termination of the RBNI receipts flow
IFRS
-8.1
6.5
InterestReceivable
1Q15
Monetary (net) -24.0
1.0
Interest andexpenses
Others
-0.5
-25.21Q16
(R$ MM)
8
Equity Income Result
Increase of gross profit due to the remuneration of concession assets of the IEMadeira subsidiary
Increase in financial expenses due to debt at IEMadeira and IEGaranhuns subsidiaries
Increase in IT/CSLL expenses at the IEMadeira subsidiary
Remuneration of financial asset at IEGaranhuns
1.233,11.096,3 1.089,3
Growth of R$ 2.8 MM
IFRS
1Q15
7.3
1Q16
19.0
+17.3%
-1.1
12.8
6.3
9.6
0.3
16.2
IEGaranhuns IENNE and IESULIEMadeira
(R$ MM)
9
Equity Income Result
Reduction in the RAP at the IEMadeira subsidiary due to a negative adjustment parcel for the 2015/2016 cycle
Increase of financial expenses due to debt at the IEMadeira and IEGaranhuns subsidiaries
Entry into commercial operation of the IEGaranhuns subsidiary at the end of 2015
1.233,11.096,3
1.089,3
Entry into operation of IEGaranhuns
Regulatory
10.6
1.3
-0.9-0.2
1.6
-79.6%
1Q16
2.1
1Q15
10.3
IENNE/IESULIEGaranhunsIEMadeira
(R$ MM)
10
Net Income
IFRS Regulatory
▲ Receipt of CAIMI in RAP▲ Entry into operation of IEGaranhuns at the end of 2015▼ Financial Revenue: termination of the indemnification receivables flow from RBNI
(R$ MM)
+13.5%
+7.3%
1Q16
66.1
1Q15
61.6
1Q16
98.2
1Q15
86.6
Basic earnings per share in IFRS reached R$ 0.58546 in 1Q16
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Consolidated EBITDA ICVM 527/12
EBITDA (R$ million)IFRS REGULATORY
1Q15 1Q16 1Q15 1Q16
Net Income 86.6 98.2 61.6 66.1
Income tax and social contribuition 21.0 25.4 21.5 18.8
Financial Results (6.5) 25.2 (6.5) 25.2
Depreciation and Amortization 10.1 2.8 20.0 14.3
EBITDA ICVM nº 527/12 111.2 151.5 96.6 124.4
EBITDA ICVM Nº 527/12 Margin 43.8% 56.2% 47.9% 52.4
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Net Debt
▲ Payment of R$ 13 MM of debt servicing on BNDES funds▼ Termination of the receivables indemnification flow from RBNI
75.3% of the debt is long term
(*) The Company’s financial investments are concentrated in exclusive investment funds. also used as investment vehicles by subsidiaries and jointly controlled subsidiaries. The investment funds comprise highly liquid units readily convertible into cash irrespective of the maturity of the assets.. The corresponding value held by subsidiaries jointly is R$ 96.4MM (participation of non-controlling shareholder).
Debt 1.096,7 1.104,6 0,7%
Short-term Debt 251,9 272,5 8,2%
Long-term Debt 844,8 832,1 -1,5%
Cash CTEEP and 100%* 267,4 313,4 -29,8%
Net Debt 829,3 694,7 6,8%
Cash* 178,8 96,4 -46,1%
Net Debt Consolidated 650,5 694,7 6,8%
Debt(R$ million) Δ%1Q162015
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Order 120 – Ministry of Mines and Energy
1. Cost of capital plus monetary restatement (IPCA)
2. Definition of the Cost of Equity (Ke) and WACC which will be applied to the
indemnity amount
3. Tax gross up mechanism
4. Average term of depreciation of assets
5. Recognition in the balance sheet of the effects of the Ordinance
6. Ratification of the indemnification amount – application for reconsideration
