apresentação institucional 1_q13_en_final3
TRANSCRIPT
1
Institutional
May, 2013
AES Brasil Group
Service Provider
Disco
Genco
In Brazil since 1997
Operational Figures:
- Customers units: 7.7 million
- Population served: 20.2 million
- Distributed Energy: 54.4 TWh
- Generation Capacity: 3.298 MW
- Generated Energy : 14.270 GWh
7.6 thousand AES Brasil People
Investments 1998-2012: R$ 9.4 billion
Solid corporate governance and
sustainability practices
Safety our #1 Value
2
(AES Eletropaulo) (AES Tietê)
(2009 - AES
Eletropaulo)
(AES Eletropaulo)
(AES Brasil)
(AES Tietê)
(AES Tietê)
(AES Eletropaulo)
(AES Tietê)
(AES Tietê)
(AES Eletropaulo)
AES Brasil widely recognized in 2009-2013
Quality and Safety Management Excellence Sustainability
(AES Eletropaulo)
(AES Tietê) (AES Eletropaulo)
(2011- AES Tietê; 2012 – AES Eletropaulo) (AES Tietê)
(AES Brasil)
(AES Sul)
(AES Eletropaulo/ Tietê)
3
Mission & visions
Mission
Improving lives and promoting development by providing safe, reliable and sustainable energy solutions
Visions
Be a leader in operational and financial management in the Brazilian energy generation sector and expand installed capacity
Be the best distributors in Brazil
4
“Casa de Cultura e Cidadania” Project - Offers courses and activities in culture and sports. Directly benefits
approximately 5.6 thousand children and teenagers and indirectly 292 thousand people in 7 units located within
AES Brazil companies’ areas of operation
Sustainability - Corporate Social Responsibility:
annual investments of R$ 148 million
“Centros Educacionais Luz e Lápis” Project - Two units in São Paulo attending 300 children from
1 to 6 years old in condition of social vulnerability
Children educational development
Development and transformation of communities
Developed for grid connection regularization. Between 2004 and 2012, more than 500
thousand families in low income communities were benefited from better energy supply
conditions and social inclusion.
“AES Eletropaulo nas Escolas” Project - Education about safe and efficient use of energy to 4.5
thousand teachers and 404 thousand students from 900 public schools. The actions include
recreational activities offered in adapted trucks.
Education on safety and efficiency in energy consumption
Converting consumers to clients
5
AES
Serviços TC
AES
Uruguaiana
AES
Eletropaulo
AES
Tietê
AES Corp BNDES
C = Common Shares
P = Preferred Shares
T = Total
Shareholding structure
C 99.99%
T 99.99%
C 76.45%
P 7.38%
T 34.87%
Cia. Brasiliana
de Energia
C 50.00% - 1 share
P 100%
T 53.85%
C 50.00% + 1 share
P 0.00%
T 46.15%
C 71.35%
P 32.34%
T 52.55%
C 99.99%
T 99.99%
AES Sul
T 99.70%
6
US$ 3.9 bi
US$ 0.6 bi
24.2% 28.3% 39.5% 8.0%
8.5% 56.2% 19.2% 16.1%
Others² Free Float ¹ ¹
1 - Parent companies, AES Corp and BNDES, have similar voting capital on each of the Companies: approx 35.9% on AES Eletropaulo and 32.9% on AES Tietê
2 - Includes Federal Government and Eletrobrás shares in AES Eletropaulo and AES Tietê, respectively
3 - Base: 05/08/2013. Considers preferred shares for AES Eletropaulo and preferred and common shares for AES Tietê
Market Cap³
AES Tietê and AES Eletropaulo are listed
in BM&FBovespa
7
AES Brasil among the top five in
the electric sector Ebitda – 2012 (R$ billion)
Net income – 2012 (R$ billion)
Source: Companies’ financial reports 8
3.9 3.63.1
2.6 2.52.1
1.6 1.5 1.30.8
0.7 0.6-0.3
CPFL Cemig Tractebel AES Brasil Neoenergia Cesp Copel Light EDP Duke Coelce Equatorial Celesc
3.8
1.6 1.5 1.3 1.10.7 0.4 0.4 0.3 0.3 0.1 0.1 -0.3
Cemig CPFL Tractebel Neoenergia AES Brasil Copel Light Coelce EDP Duke Cesp Equatorial Celesc
Sources: ANEEL – Generation Data Source “BIG” (March, 2012) and Companies websites 2- Source: Banks’ reports
AES Tietê: 3rd largest among private
generation companies
Approximately 78% of country’s generation
installed capacity is state-owned2
18 GW of hydro capacity under construction:
– Santo Antonio and Jirau (Madeira River): 7 GW
– Belo Monte (Xingu River): 11 GW
Total Installed Capacity: 123 GW
Main privately held Companies
AES Tietê is the 3rd largest private
generator in Brazil Generation installed capacity (MW) - 20121
9
CHESF9%
Furnas8%
Eletronorte7%
CESP6%
Itaipu6%
Cemig6%
Copel4%
Petrobrás5%
Tractebel 6%
AES Tietê2,2%
CPFL2,4% Light
0,8%
ENDESA0,8%
DUKE1,7%
Eletronuclear2,8%
CGTEE0,7%
Eletrosul0,5% EDP
1,5%
Neoenergia1,2%
Demais28,9%
AES Brasil is among the top 3 largest
distribution players in Brazil Consumers – Dec/2011
63 distribution companies in Brazil
distributing 430 TWh in 2011
AES Brasil is one of the largest electricity
distribution group in Brazil:
AES Eletropaulo is the largest distribution
company in Brazil in terms of energy
distributed
AES Brasil
CPFL Energia
CEMIG
Neoenergia
Copel
Light
EDP
Outros
AES Brasil
CPFL Energia
Cemig
Neo Energia
Copel
Light
EDP
Outros
Consumption (GWh) - 2011
Source: Brazilian Association of Electricity Distributors (ABRADEE), 2011 and EPE (Energetic Research Company)
13%
12%
12%
16%7%
7%
5%
30%
13%
12%
11%
7%
6%6%6%
52%
10
Energy
distributed
(TWh)
% of the
Brazilian
market
AES Eletropaulo 45 10.5
AES Sul 8.6 2.0
AES Tietê overview
12 hydroelectric plants in São Paulo
30-year concession expiring in 2029
Installed capacity of 2,658 MW, with physical guarantee1
of 1,278 MW average
Physical guarantee contracted with AES Eletropaulo (11
GWh) through Dec, 2015 (~R$183/MWh, annually
adjusted by inflation)
369 employees as of March, 2013
Company listed at BM&Fbovespa
Rating: National International
Moody's Aa1 Baa3
Generation facilities
1 - Amount of energy allowed to be long term contracted 12
1.599 1.582 1.629
1.753
1.480
125% 124%127%
130%
102%
2010 2011 2012 1Q12 1Q13
Generation - Mwavg Generation/Physical guarantee
Generated energy shows high
operational availability
Generated energy (MW avarage1)
1 – Generated energy divided by the amount of hours * Caconde, Limoeiro, Mogi and SHPPs
1Q13 Generated energy by power plant (MW average1)
61%
11%
9%
5%
5%
4%2%3% Agua Vermelha
Nova Avanhandava
Promissão
Ibitinga
Bariri
Barra Bonita
Euclides da Cunha
Other Power Plants *
44%
17%
12%
5%
8%
6%
5% 3% Agua Vermelha
Nova Avanhandava
Promissão
Ibitinga
Bariri
Barra Bonita
Euclides da Cunha
Demais Usinas*
1,599 1,582 1,629
1,753
1,480
125% 124%127%
130%
102%
2010 2011 2012 1T12 1T13
Geração - MW médio Geração/Garantia física
13
In December 2012, AES Tietê was the first Latin American company to receive the PASS-55 certification of the
British Standards Institute, for its reliability and sustainability of assets
38
46
55
62
0
10
20
30
40
50
60
70
80
90
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Ma
x (%
)
2001 2012 2013Historical Data Since 2001
14
Brazilian reservoir levels1 (%) AES Tietê reservoirs levels (%)
Hydrological conditions improving
and rationing is unlikely
93%
80%
97%91%90%
80%
100% 100%
Caconde A. Vermelha B. Bonita Promissão
Apr-12 Apr-13
Thermal capacity available for dispatch: 14 GW vs. 4 GW in 2001
AES Tietê Q1 13 impact of R$ 115 million due to hydrological risk sharing
- 2013 estimated impact ranges from R$ 231 million to R$ 441 million
1 – Average reservoir levels of the National System (percent of maximum storage capacity)
Allocation of physical guarantee for AES Tietê (MWm) Monthly evolution of the spot price (R$/MWh)
System physical guarantee reduction resulted in
spot market exposure since September/2012
15
375
161
89 77 76 72
-21 -42
-108
-32
-308
-85
-31
2948
26 12 1732 23 20 21
37 46
4423
51
125
193 181
118 91
119
183
280
376
260
414
215
340 320
jan feb mar apr may jun jul aug sep oct nov dec
2011 2012 2013Secondery energy Physical guarantee reduction
11,108 11,108 11,138
2,879 3,058
1,980 1,942 3,834
1,256 600
1,340 1,519
1,141
571 42
301 554
615
163 482
2010 2011 2012 1T12 1T13
AES Eletropaulo MRE Mercado Spot Outros contratos bilaterais #REF!
89% of net revenues and 73% of billed energy
came from the bilateral contract with AES
Eletropaulo in 1Q13
1 – Energy Reallocation Mechanism
Net revenues (%) Billed energy (GWh)
89%
8%
2% 1%
Eletropaulo
Bilaterais
CCEE
MRE¹11,108 11,108 11,138
2,879 3,058
1,980 1,942 3,834
1,256 600
1,340 1,519
1,141
571 42
301 554
615
163 482
2010 2011 2012 1Q12 1Q13
AES Eletropaulo MRE Mercado Spot Outros contratos bilaterais #REF!
14,729
16
-14%
16,728
15,122
4,869 4,182
89%
8%
2% 1%
AES Eletropaulo
Bilateral contracts
Spot Market
ERM¹11,108 11,108 11,138
2,879 3,058
1,980 1,942 3,834
1,256 600
1,340 1,519
1,141
571 42
301 554
615
163 482
2010 2011 2012 1T12 1T13
AES Eletropaulo ERM Spot Market Bilateral Contracts #REF!1
156135
213
17 27
19
4
3
2011 2012 2013 (e) 1Q12 1Q13
Investments New SHPPs¹
175
21
139
213
1- Small Hydro Power Plants
Investments in power plants
modernization
Investments (R$ million)
2013 major investments in Nova
Avanhandava, Ibitinga and Agua Vermelha
power plants, that represent 71% of AES
Tietê capacity
17
13%
Growth projects
“Thermal São Paulo” Project (550 MW)
Natural gas combined cycle thermal plant
Previous license granted in Oct, 2011 valid for 5 years
Pending gas supply
Next steps: Obtain installation license
“Thermal Araraquara” Project (579 MW)
Natural gas combined cycle thermal plant
Purchase option acquired in March, 2012
Pending gas supply
Next steps: Obtain installation license
18
84
307
1T12 1T13
265%
Clients portfolio evolution in 1Q13
Contracting strategy: driven to free market
Strategy post-2015: contract energy in the free market with large unregulated customers
- Currently serving 45 customers (307 MW) with 3-5 year contracts
- Current prices for delivery in 2016: $52-$57/MWh1 (annually adjusted for inflation) – driven by supply/demand
- 143 MWavg sold from 2016 onwards
2012 2016 2020
Assured Energy (1,278 MW avg)
New client
portfolio
Consolidated
portfolio
1Q12 1Q13
Antes dez/2011
1T12 2T12 3T12 4T12
32 84 90
259 320
MWmédMWavg
19 1 - AES analysis
Ebitda (R$ million) Net revenue (R$ million)
Financial highlights
75% 75% 81% 78%
Ebitda Margin
56%
20
1,3111,466 1,542
423 334
2010 2011 2012 1Q12 1Q13
-21%1,754
1,8862,112
540 598
2010 2011 2012 1Q12 1Q13
Net Revenue
Net Revenue
11%
423334
78%
56%
1T12 1T13
Ebitda Margem Ebitda (%)
21%
Steady earnings distribution on a
quarterly basis
Net income and dividend pay-out (R$ million)
25% of minimum pay-out
according to bylaws
Average payout since 2006: 105%
Average dividends since 2006:
R$ 741 million per year
742 706 737845 901
246 186
11% 11% 10%
117% 109% 108%
2010 2011 2012 1Q12 1Q13
Net Income Yield PN Payout
21
-24%
Debt profile
Net debt (R$ billion) Amortization schedule – 1st Debenture Issuance (R$ million)
1 – Brazilian Interbank Interest Rate
Covenants Average Cost Gross Debt/Adjusted Ebitda <= 2.5
Net Debt/Adjusted Ebitda <= 3.5
1Q12 1Q13
Average Cost (%CDI)¹ 115% 121%
Average Term (Years) 2,0 0,8
Interest Rate 11.3% 9.8%
300 300 300
2013 2014 2015
Debt amortization flow
22
0.4 0.40.5 0.5
0.76
0.30.4
0.5
0.70.6 0.6
0.3
0.5
0.6
1.0
2010 2011 2012 1Q12 1Q13
Net Debt Net Debt/Adjusted Ebitda Gross Debt/ Adjusted Ebitda
2 – Total Shareholders’ Return
Capital markets
Market Cap: US$ 3.9 billion / R$ 7.8 billion
BM&FBovespa: GETI3 (common shares) and GETI4 (preferred shares)
ADRs negotiated in US OTC Market: AESAY (common shares) and AESYY (preferred
shares)
3 – Index: 05/08/2013
Daily avg volume (R$ thousand) AES Tietê X Ibovespa
23
3
1 – Information until 05/08/2013. Index: 12/29/2005 = 100
703546
739
1,387
Shares negotiated (thousand)
9,683 9,315
15,844
11,717
4,2393,269
5,269
8,529
2010 2011 2012 YTD Mar/12
Preferred Common
13,922
20,246
12,584
21,113
50
100
150
200
250
300
350
400
Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12
2005 - May 2013¹
Ibovespa AES Tietê PN AES Tietê TSR² AES TIetê ON
66.8%
54.3%
69.6%
182.1%
AES Eletropaulo overview
Largest distribution company in Brazil in terms of energy
distribution
Serving 24 municipalities in the São Paulo Metropolitan area
Concession contract expire in 2028
Concession area with the highest GDP in Brazil (16,8% of
Brazilian GDP¹)
46 thousand kilometers of lines and 6.5 million consumption
units in a concession area of 4,526 km2
46 TWh distributed in 2012
6,168 employees as of March, 2013
Company listed at BM&FBovespa
Investment grade: Fitch S&P Moody’s
National AA AA- Aa1
International BBB- BB Baa3
Concession area
25 1 – Source: IBGE, 2010.
28
37
19
31
38
23
15 9
Brasil AES Eletropaulo
Residential Commercial Industrial Others
Consumption evolution
Total market1 (GWh) Consumption by class1 – 1Q13 (%)
1 – Net of own consumption 26
2% 68%
46%
State of São Paulo GDP growth 3.3% (5-year average) - Expectation for 2013 3.0%, grows to 3.5% in 2014-2015
35,434 36,817 37,570
9,250 9,309
7,911 8,284 7,987
1,906 2,092
43,345 45,102 45,567
11,156 11,401
2010 2011 2012 1Q12 1Q13
Captive Market Free Clients
-15%
-10%
-5%
0%
5%
10%
15%
Ju
l-07
No
v-0
7
Mar-
08
Ju
l-08
No
v-0
8
Mar-
09
Ju
l-09
No
v-0
9
Mar-
10
Ju
l-10
No
v-1
0
Mar-
11
Ju
l-11
No
v-1
1
Mar-
12
Ju
l-12
No
v-1
2
Mar-
13
Industrial production SP (% 12 months) Industrial (% 12 months)
Economic recovery Economic crisis
Industrial class
1 – As of March, 2013. 27
Vehicles, Chemical, Rubber,
Plastics and Metal
Products49%
Other industries
51%
Economic crisis
Industrial class X Industrial production in
São Paulo state
Consumption of industrial class by activity1 –
AES Eletropaulo
258
220
192 199
203 207
213 219
223 228 229
234 236
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
- 8.5%
Residential class
Residential class X Average income in São Paulo Metropolitan Area
1 - Two quarters of delay in relation to consumption
Consumption per consumer (in kWh)
Rationing
1
2,300
2,800
3,300
3,800
4,300
4,800
1,200
1,300
1,400
1,500
1,600
1,700
1,800
1,900
2,000
2,100
2,200
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2007 2008 2009 2010 2011 2012 2013
Res
iden
tial
-G
Wh
Avg
Rea
l In
com
e R
$ -S
P (Q
-2*)
Residential Consumption x Real Income - São Paulo (Q-2*)
Residential consumption reflects
GDP per capita growth
Average growth of the residential
class (aggregate) in the last 5
years: 4.8%
Consumption per residential
consumer: average growth of 1.5%
in the last 5 years
28
Investments focused on grid automation,
operational reliability and
system expansion Investments breakdown (R$ million)
-21%
29
717 796
621
177 134
22
35
26
7 11
739
831
647
184
145
2011 2012 2013(e) 1Q12 1Q13
Own Resources Funded by the clients
2013 investments plan:
substation repowering, adding 133 MVA
capacity to the system
29.7 km of new transmission lines
maintenance in over 5,200 km of
distribution grid
regularization of 75,000 illegal
connections and replacement of 125,000
obsolete meters.
SAIDI below regulatory reference
and in its lowest level since 2006
SAIDI¹ (last 12 months) SAIDI1 (YTD)
1 - System Average Interruption Duration Index
Sources: ANEEL and AES Eletropaulo
2009 2010 2011
11.86 10.60 10.36
SAIDI (hours)
10.09 9.32
8.68
SAIDI Aneel Reference
ABRADEE ranking position among the 28 utilities with more than 500 thousand customers
7th 6th
10.60 10.36
8.35 9.57
8.32
9.32 8.68
8.67
8.67
8.49
2010 2011 2012 1Q12 1Q13
DEC (horas) Referência Aneel4th
30
-9%
3.36 3.06
Jan-Apr 12 Jan-Apr 13
SAIDI (hours)
1.76 1.68
Jan-Apr 12 Jan-Apr 13
FEC (vezes)
SAIFI below regulatory reference
SAIFI¹ (last 12 months) SAIFI1 (YTD)
1 - System Average Interruption Duration Index
Sources: Aneel and AES Eletropaulo
3rd
ABRADEE ranking position among the 28 utilities with more than 500 thousand customers
4th
7.87 7.39
6.93
SAIFI Aneel Reference
2009 2010 2011
6.17 5.43 5.45
SAIFI (times)
5.46 5.45 4.65 5.09 4.60
7.39 6.93 6.87 6.87 6.64
2010 2011 2012 1Q12 1Q13
FEC (vezes) Referência Aneel3th
31
-5%
Regulatory Reference² - Total Losses (last 12 months) Losses (last 12 months)
Losses level within regulatory threshold
1 – In January 2012, the Company improved the assessment of the technical losses.
2 – Values estimated by the Company to make them comparable to the reference for non-technical losses determined by the Aneel
4.4 4.0 4.1 4.0 4.0
6.5 6.5 6.1 6.4 6.1
10.9 10.5 10.4 10.4 10.1
2010 2011 2012 1Q12 1Q13
Non Technical Losses Technical Losses ¹
10.6 10.3 9.8 9.4
2011/2012 2012/2013 2013/2014 2014/2015
32
1,648 1,473
476 92 122
426 933
339
442
179
206 6
2,413
2,848
636
298 128
2010 2011 2012 1Q12 1Q13
Adjusted Ebitda
Non-recurring¹
Regulatory assets and liabilities
9,697 9,097 9,128
2,286 2,146
5,017 5,405 5,354
1,362 993
739 831
186 145
14,714 15,240 15,314
3,835 3,283
2010 2011 2012 1Q12 1Q13
Net revenue ex-construction revenue
Deduction to Gross Revenue
Construction revenues
Ebitda (R$ million) Net revenues (R$ million)
Financial highlights
1 – Non recurring 2011 : Includes sale of AES Eletropaulo Telecom with a R$ 707 million impact on Ebitda.
-14% -57%
33
1 – Gross amount
Net income and dividend payout1 (R$ million)
Average payout of 74% p.a. since 2006
25% of minimum pay-out
according to bylaws
Average payout since 2006:
74% per year
Average dividends since 2006:
R$ 890 million per year
2– Non recurring 2011 :Includes sale of AES Eletropaulo Telecom with a R$ 467 million impact on net income 34
640 586
(174) (121) (30)
350 621
358
365
229 218 29
1,348
1,572
55 97
(1)
28.6% 17.1%
2.8%
2010 2011 2012 1Q12 1Q13
Adjusted Net Income
Non-recurring²
Regulatory assets and liabilities
Yield PN
114.4%
54.4%25.0%
Pay-out
640 586
(174) (121) (30)
350 621
358
365
229 218 29
1,348
1,572
55 97
(1)
28.6% 17.1%
2.8%
2010 2011 2012 1Q12 1Q13
Adjusted Net Income
Non-recurring²
Regulatory assets and liabilities
Yield PN
114.4%
54.4%25.0%
Pay-out
640 586
(174) (121) (30)
350 621
358
365
229 218 29
1,348
1,572
55 97
(1)
28.6% 17.1%
2.8%
2010 2011 2012 1Q12 1Q13
Adjusted Net Income
Non-recurring²
Regulatory assets and liabilities
Yield PN
Cost management excellence
35
1 - Personnel, Material, Third Party Services and Other Costs and Expenses
2 - Eletropaulo peers: CPFL Paulista, Light, Cemig. EDP Bandeirante. Sul Peers: Elektro, RGE, CPFL Piratininga. Eletropaulo metric excludes SIRP (one timer R$29)
Started in 2007 and evolved from cost cutting to
business process transformation
- Strategic sourcing
- Shared services
- Process redesign
- IT tools implementation
2010-2012 cumulative P&L savings of R$ 331 million
Reducing manageable costs estimated at R$ 100
million from 2013 onwards
AES Eletropaulo among the lowest cost operators in
the country
PMSO¹ per customer (R$ million) Efficiency programs and results
178
207
AES Eletropaulo Comparable peers²
302
533
228 337
226
436 321
400
2013 2014 2015 2016 2017 2018 2019 2020 - 2028
Local Currency (ex FCesp)
53 85
180
589 478
688
323 221 180
2013 2014 2015 2016 2017 2018 2019 2020 2021 - 2028
Local Currency (ex FCesp)
36
Decrease in debt amortization volume for 2013-15 by R$ 750 million
Increase in the average debt maturity from 6.6 years to 7.2 years
Debt average costs decrease from CDI+1.29% to CDI+1.27%
More flexible covenants
Debt amortization schedule
Benefits
Debt refinancing conclusion of R$ 1 billion
with more flexible covenants
36
After restructuring (as of October, 2012)
R$ 1,063 million R$ 319 million
Before restructuring (as of September, 2012)
2012 2013 2014 2015 2016 2017 2018 2019 2020 -2028
249 302
533
228337
226
436321
180
4871
45
48
52
55
59
63
677
297372
579
276
388
281
495
385
857
Moeda Nacional (s/ Fundação CESP) Fundação CESP Market debt in R$ (ex-pension plan debt )
2012 2013 2014 2015 2016 2017 2018 2019 2020 -2028
249 302
533
228337
226
436321
180
4871
45
48
52
55
59
63
677
297372
579
276
388
281
495
385
857
Moeda Nacional (s/ Fundação CESP) Fundação CESP Market debt in R$ (ex-pension plan debt )
Covenants change
Gross debt / Adjusted Ebitda < 3.5
FROM
Net debt / Adjusted Ebitda < 3.5
(equivalent to 4.5x Gross Debt / Adjusted Ebitda)
TO
If the limit is exceeded in any quarter If the limit is exceeded for two consecutive
quarters
Not considered in the calculation Considered in the calculation
(same as before IFRS adoption)
Total debt recognized in liabilities Debt recognized in liabilities excluding the
“corridor” concept
Considered in the calculation of debt Out of debt calculation
Financial Index
Default
Regulatory assets
and liabilities
Pension plan debt
Compulsory loans
37
Covenants limits amended due to tariff
reset delay and higher energy costs
Amendment of covenants limits
completed in March/2013:
Net Debt / Adjusted Ebitda:
- 5.5x in 1Q13;
- 3.75x in 2Q13;
- 3.5x from 3Q13 onwards
Covenants breach is not expected to
repeat since:
- no impact on LTM Ebitda after May/13
related to regulatory liability
(Jul11/Jun2012);
- higher cost of energy funded by CDE
or reflected in tariff adjustment
38
Accounting impacts due to
tariff reset postponement
Higher net debt
Covenants consider Ebitda adjusted
by regulatory assets/liabilities
Jun/12: tariff reset regulatory liability
final release (R$ 287 million)
Higher cost of energy since Sep/12
lowered cash position
Net Debt/Adjusted Ebitda <= 3.5x
- Q1 13: limit amended to 5.5x
- Q2 13: limit amended to 3.75x
Adjusted Ebitda/Financial Expenses >= 1.75x
1 – According the new covenants 2 – Brazilian Interbank Interest Rate 3 – Inflation Index
Debt profile
Net debt Average cost
12.0% 11.7% Interest Rate
6.6 6.9
Average Time - years
2011 2012
0.0% 0.0%
% of CDI
6.6 6.9
Average Time - years
2011 2012
0.0% 0.0%
% of CDI
112.2% 109.8%
6.4 6.7
1Q12 1Q13
% of CDI² Average Time - years
39
Covenants
2.4 2.33.1
2.4
3.0
1.1x
4.4x
0.9x 0.8x
4.9x
2010 2011 2012 1Q12 1Q13
Net Debt (R$ billion) Net Debt/Ebitda Adjusted¹
Debt profile
40
Debt amortization schedule (financial liabilities as of March, 2013)
50 87 182
590 480690
325 221 18179 5548
5255
59
6368
679
79 119 130
138147
156
166177
1,719
209 260360
780682
905
554465
2,578
2013 2014 2015 2016 2017 2018 2019 2020 2021-2028
Local Currency (ex FCesp) Fcesp (ex Corridor¹) Fcesp (Corridor¹)
Due to the ICVM 695, the corridor (accumulated gains and losses) became fully recognized in the
Company balance sheet from January, 2013 on
AES Eletropaulo: challenges
2010 Dec/12 Sep/12 Mar/13 Jan/13
“Criando
Valor”
(Creating
Value) project
launch
Apr/13 Jul/12
3rd Tariff
Reset Cycle
and 2012
Tariff
Adjustment
Jul/13
41
Filling of
administrative
appeals at
Aneel
Debt
restructuring
(R$ 1 billion)
Beginning of
out-of-the-merit
thermals
dispatch,
affecting discos
cash flows
Sale of real
estate property
“Cambuci” (R$
160 million),
subject to
Aneel’s approval
Pension plan
accounting
changes
imposed by
CVM
Resolution 695
Extraordinary Tariff
Adjustment due to
Energy Cost
Reduction
Program, with 20%
average tariff
reduction
Covenants
limits
amendment
Starting to
receive
monthly
CDE1 funding
to cover
higher energy
costs
2013 Tariff
Adjustment
Expected events: Decision
by Aneel regarding
administrative appeals and
regulatory liabilities start to
be returned through tariffs,
due to the postponement of
the 3rd Tariff Reset Cycle
1 – CDE: Energy Development Account
24,496 26,897
23,057 22,895
2010 2011 2012 YTD Mar 13
Preferred
1 – Information until 05/08/2013. Index: 12/29/2005 = 100
2 – Total Shareholders’ Return
Capital markets
3 – Index: 05/08/2013
Daily avg volume (R$ thousand) AES Eletropaulo X Ibovespa
42
2009 2010 2011 YTD September
21,960 24,496
26,897 24,427
Preferred
• Market cap³: US$ 0.6 billion/R$ 1.3 billion
• BM&FBOVESPA: ELPL3 (common shares) and ELPL4 (preferred shares)
• ADRs at US OTC Market: EPUMY (preferred shares)
14,824
23,60619,589
28,254
9,683 9,315
15,844
11,717
4,2393,269
5,269
8,529
2010 2011 2012 Acm Mar/13
Preferred Common
13,922
20,246
12,584
21,113
703546
739
1,387
Shares negotiated (thousand)10
60
110
160
210
260
310
360
Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12
2005 - May 2013¹
Ibovespa AES Eletropaulo PN AES Eletropaulo TSR²
66.8%
-69.1%
66.7%
Attachment AES Sul and AES Uruguaiana Overview
AES Sul overview
Overview and Business Drivers
Overview
Serving 118 Municipalities in the State of Rio Grande do Sul
Concession area: 99,512 km2
1.2 million consumption units
1,308 directed employees
Concession valid until November, 2027
Business drivers
Regional GDP growth 2.5% (5-year average)
- Expectation for 2013 3.6%, grows to 4.3% in 2014-2015
2013 tariff reset concluded in April – in-line with our
expectations
Quality of services: SADI/SAIFI ~30% better than 2009 levels
Consolidation of efficiency programs, leading to operating
costs below regulatory levels (~2%)
Dividend payout of 63% in 2012 2011 clearing of regulatory
restrictions allowed distribution of dividends)
44
Net revenues (R$ million) Ebitda (R$ million) Net income (R$ million)
AES Sul financial highlights
1,866 2,027
2,341
586 543
2010 2011 2012 1Q12 1Q13
45
-7%
281
490
373
137
49
2010 2011 2012 1Q12 1Q13
199 246 255
60 61
2010 2011 2012 1Q12 1Q13
-64% 2%
Overview and Business Drivers
Overview
Independent natural gas-fired thermal power generation Company with
commercial operations achieved in 2000
Authorization expiration in 2027
Installed capacity of 640 MW
Located in the State of Rio Grande do Sul – city of Uruguaiana
Suspended operations in 2008 due to lack of gas supply from YPF in Argentina
(pending arbitration)
Business Drivers
Emergency operation from February 2013 to March 2013 to support reservoir
recovery
Working to return the plant to long-term service
Leveraging on AES Brazil-Argentina relationship
AES Uruguaiana overview
46
Attachment
Energy Sector in Brazil
1 - Interconnected National System, as of 2011
2 - Small Hydro Power Plants
3 - Aneel Fiscalization Report Sources: EPE, Aneel, ONS and Banks’ reports
13 groups controlling 76% of
total installed capacity
22% private sector
2,809 power plants
121 GW of installed capacity³
66% hydroelectric
27% thermoelectric
3% SHPP²
2% wind
2% nuclear and others
Contracting environment – free
and regulated markets
68 companies
68% private sector
High voltage transmission
(>230 kV)
103,362 km in extension lines
(SIN¹)
Regulated public service with
free access
Regulated tariff (annually
adjusted by inflation)
64 companies
448 TWh of energy
distributed in 2012
72 million consumers
67% private sector
Annual tariff adjustment
Tariff reset every four or five
years
Regulated public service
Regulated contracting
environment
Consumption of 14.770 MWavg
(26% of Brazilian total market)
Conventional sources: above
3,000 kW
Alternative sources: between
500 kW and 3,000 kW
Large consumers can purchase
energy directly from generators
Free contracting environment
Generation Transmission Distribution Free Clients
Energy sector in Brazil: business segments
48
Auctions: New Energy
and Existing Energy Bilateral contracts (PPAs1)
Main auctions (reverse auctions):
– New Energy (A-5): Delivery in 5 years, 15-30 years regulated PPA1
– New Energy (A-3): Delivery in 3 years, 15-30 years regulated PPA
– Existing Energy (A-1): Delivery in 1 year, 5-15 years regulated PPA
– Extraordinary (A-0): Delivery at the same year, 1-yearr regulated PPA
Energy sector in Brazil:
contracting environment
Generators, Independent Power Producers
(IPPs), Trading companies and Auto producers
Free clients Distribution companies
Generators and Independent
Power Producers (IPPs)
Regulated market Free market
1 – Power Purchase Agreement 49
Electric sector in Brazil:
generation market overview
Installed capacity (GW)
~ 3% annual GDP growth over the last 5 years
~ 4% annual demand growth through 2021, implying 60 GW of additional capacity needed (~6 GW/year) – 35 GW
already auctioned
Gas-fired thermal to leverage on the dispatchability benefit and on the hydrology risk
Growth by source - new auctions (GW)
Sources: EPE (Energetic Research Company): Ten-year Energy Plan 2021; AES analysis
Total: 25 GW
2
50
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
116 116 116 116 116 116 116 116 116 116
5 14 22 27 33 37 40 41 41 41 1 2 4 6 11 17 25
121 130 138 144 151 157 163 168
174 182
Current installed capacity Auctioned Upcoming Auctions
Hydro 10 GW
Wind 10 GW
Thermal 5 GW
Attachment Regulatory Environment
Regulatory
Opex
(PMSO)
Investment
Remuneration
Depreciation
Energy
Purchase
Transmission
Sector Charges
Tariff reset and adjustment
• Tariff Reset is applied each 4 years for AES Eletropaulo
− Next tariff reset: Jul/2015
− Parcel A: costs are largely passed through to the tariff
− Parcel B: costs are set by ANEEL
• Tariff Adjustment: annually
− Parcel A : costs are largely passed through to the tariff
− Parcel B: cost are adjusted by IGPM +/- X(1) Factor
Remuneration
Asset Base
X Depreciation
X WACC
Regulatory
Ebitda
Parcel A - Non-Manageable Costs
Parcel B - Manageable Costs
• Remuneration Asset Base:
– Prudent investments used to calculate
the investment remuneration (applying
WACC) and depreciation
• Regulatory Opex:
– Efficient operating cost determined by
ANEEL (National Electricity Agency)
• Parcel A Costs
− Non-manageable costs that are largely
passed through to the tariff
− Incentives to reduces costs
1 – X Factor: index that captures productivity gains
Distribution companies:
tariff methodology
52
3rd Cycle of tariff reset – X factor
X FACTOR
= Pd
Q
T
+ +
Distribution
productivity Quality of service
Operational expenses
trajectory
Capture productivity
gains
Stimulate
improvement of
service quality
Implement
operational expenses
trajectory
Defined at tariff reset,
considers the average
productivity of sector
adjusted by market
growth and
consumption variation
Defined at each tariff
readjustment, considers
variation of SAIDI and
SAIFI and comparative
performance of discos
Defined at tariff reset,
considers reference
company and
benchmarking
methodologies
DEFINITION
OBJECTIVE
APPLICATION
53
Distribution companies:
tariff methodology
3rd Cycle of Tariff Reset
for AES Eletropaulo
Gross Regulatory Asset Base: R$ 10,748.8 million
Net Regulatory Asset Base: R$ 4,445.1 million
Parcel B: R$ 2,007.1 million
Non Technical Losses (referenced in the low voltage market): start point at 11.56% and get to 8,56%,
by the end of the cycle
Average effect to be perceived by the consumer: -9.33%
Economical Effect: -5.60%
Average effect to be perceived by the consumer : +5.51%
Economical Effect: +4.45%
In 17th July, Company filed as administrative appeal at Aneel about the Regulatory Asset Base and
the non-technical losses trajectory. Aneel’s decision expected to be rendered by July, 2013
Average effect to be perceived by the consumer : -2.26%
Tariff Review
Tariff Adjustment
Tariff Review +
Adjustment
Administrative
Appeal
54
Benchmark company is an outlier, previous
number of 0.49% shall be restored
Exclusion R$ 1,260 million from shielded
RAB:
- Exclusion of cables: R$ 728 million
- Reclassification/equipment volume: R$
533 million
Shielded RAB approved in 2003,
reconfirmed in 2007, based on global
consistency criteria
R$ 446 million investments not recognize,
related to Minor Components and
Additional Costs (“CA”)
Changed the benchmark in Public Hearing
(regulatory losses reduction from 0.49% to
1%)
Adequacy of regulatory standards versus
actual spending
Shielded RAB
Investments
Losses
Arguments Discussion
Discussions with the Regulator
55
3rd Cycle of Tariff Reset
for AES Sul
Gross Regulatory Asset Base: R$ 2,503.0 million
Net Regulatory Asset Base: R$ 1,488.5 million
Parcel B: R$ 542.2 million
Non Technical Losses (referenced in the low voltage market): start point at 4.91% will be kept
during the entire tariff cycle (no trajectory)
Average effect to be perceived by the consumer: 3.92%
Economical Effect: 4.49%
Tariff Review
The Company will file an administrative appeal at Aneel about Regulatory Technical Losses,
that were not adequately calculated by the methodology
Administrative
appeal
56
Extension for 30 years with effects anticipated for 2013:
- Evaluation of assets using new replacement value methodology
Concession renewal will be based on O&M costs, industry charges, fees and network usage
Extension for 30 years, as per contract
Rules for renewal has not been defined
Generation &
Transmission
Concessions
Distribution
Concessions
Regulatory pressure to lower tariffs…
57
“Energy Cost Reduction Program” established by Provisional Measure 579 and Law 12.783
- Valid for concessions granted before 1995
- 20% average reduction in electricity costs, funded by:
- Generation and transmission concessions expiring 2015-2017: -13%
- Lower sector charges: -7%
-Minimal impact on AES Brasil businesses – concessions expire between 2027-2029
Overview
Low affluence impacting reservoirs level
Thermals dispatch of 12 GW since Sep, 2012
Out-of-merit-order: higher EES¹
Within-the-merit-order: rising
energy costs
… combined with poor hydrological conditions
impacted discos cash position…
Energy Cost Reduction
Program2
Hydrological risk transferred to
discos through quotas allocation
Non-renewal of some generation
concessions
Exposure to the spot market
(~ 2 GWavg)
Impact on cash position of discos since Sep/2012
1 - ESS (Service System Charges), which pays for the dispatch of thermals that are out-of-merit 2 – Provisional Measure 579 and Law 12.783 58
Component
After
Decree #7.945
ESS¹ (out-of-the-
merit-order thermal
dispatch)
Energy Purchase
(within-the-merit-order-
thermal-dispatch)
59
Involuntary
Exposure¹
Hydrological risk¹
CDE funding via
CCEE settlement
Tariff Adjustment
1 – Before Decree # 7.945, such costs would be passed-through via Tariff Adjustment.
… resulted in a measure to preserve discos
financial stability
Spot price new methodology
Previous
Regulation
CNPE Resolution # 3/2013
Transitory regulation
(April to July, 2013)
1 - Proportional to average commercialized energy of the last 12 months.
2 - ESS (System Service Charges), which pays for the dispatch of thermals that are out-of-merit
3 – Risk Aversion Curve
From August, 2013 on
Includes out-of-the-
merit-order thermal
dispatch
Charged from
all market
agents:1 • Discos
• Free cust.
• Generators
• Traders
Other 50%
for:
• Agents
with
exposure
to spot
prices
Resolution CNPE #3/2013:
Methodology for adequacy of risk aversion
mechanisms for spot prices formation
- Risk Aversion Curve (“CAR”) of 5 years
(starting from Aug/2013)
System Service Charges (“ESS”): prorated
among all market players (including generators)
Uptrend in spot prices, which should influence
prices in energy contracts representing an
opportunity to AES Tietê
Charged
from:
• Discos
• Free cust.
Spot
Price
ESS²
ESS
ESS
ESS
Spot
Price
Spot
Price
60
Attachment AES Tietê: Expansion Obligation
AES Eletropaulo: Eletrobrás Lawsuit
AES Tietê's expansion obligation
Efforts being made
by the Company to
meet the obligation :
• Long-term energy
contracts (biomass)
totaling an average of
10 MW
• SHPP São Joaquim -
started operating in
July, 2011, with 3 MW
of installed capacity
• SHPP São José -
started operating in
March, 2012, with 4
MW of installed
capacity
• Thermal SP - Project
of a 550MW gas fired
thermo plant
• Thermal Araraquara
- Acquisition of a
purchase option
1999 Jul/09 Oct/08 Aug/08 Sep/11 Sep/10
Privatization Notice
established the
obligation to expand the
installed capacity in
15% (400 MW) until
2007, either in
greenfield projects
and/or through long
term purchase
agreements with new
plants
Aneel informed
that the issue is
not related to
the concession
agreement and
must be
addressed with
the State of São
Paulo
Judicial Notice:
The Company was notified
by the State of São Paulo
Attorney's Office to present
its understanding on the
matter, having filed its
response on time, the
proceedings were ended,
since no other action was
taken by the Attorney's
Office
In response to a
Popular Action
(filed by individuals
against the Federal
Government, Aneel,
AES Tietê and
Duke), the Company
presents its defense
before the first
instance
Popular Action:
Due to the plaintiffs
failure to specify the
persons that should be
named as Defendants, a
favorable decision was
rendered by the first
Instance Court
(an appeal has been
filed)
AES Tietê was
summoned to answer a
Lawsuit filed by the
State of São Paulo,
which requested the
fulfillment of the
obligation in 24 months.
An injunction was
granted in order to have
a project submitted
within 60 days.
Nov/11 2007
Company faces restrictions until
deadline:
• Insufficiency of hydro resources
• Environmental restrictions
• Insufficiency of natural gas
supply
• New Model of Electric Sector
(Law # 10,848/2004), which forbids
bilateral agreements between
generators and distributors
Apr/12
Lawsuit:
The Company
appealed to the
State of Sao
Paulo State
Court of
Appeals and
the injunction
was kept
In March, 19th the
Company’s appeal
was denied. Thus,
on April, 26th AES
Tietê presented
“Thermo São Paulo”
project as the plan
to fullfill the
obligation to
expand the installed
capacity.
Dec/12
In December 6th was joined
to the process a
manifestation of the State of
São Paulo over the
Expansion Plan Capacity
presented by AES Tietê
Next Steps:
shortly, the Company shall
be intimated to pronounce
on the manifestation
62
Eletrobrás lawsuit
Nov/86
Stated-owned
Eletropaulo borrowed
money from Eletrobrás
Dec/88
State-owned
Eletropaulo and
Eletrobrás disagreed on
how to calculate
interest over that loan
and two lawsuits, which
were later merged into
one, were initiated
Sep/03
Based on the spin-off
protocol, the 2nd
Instance Court
excluded AES
Eletropaulo from the
lawsuit
Jun/06
The SCJ annulled the
2nd Instance Court
decision and sent the
Execution Suit back to
the 1st Instance Court,
with the determination
to identify the amount
to be paid and who
should be liable for
such payment, which
should be done through
an appraisal procedure.
Jan/98 Oct/05
Eletrobrás and CTEEP
appealed to the
Superior Court of
Justice (SCJ)
Sep/01
Eletrobrás, after
winning the interest
calculation discussion,
filed an Execution Suit
aiming the collection of
the amounts that were
in default
State-owned
Eletropaulo was spun-
off into four companies
and, according to our
understanding based
on the spin-off
agreement, the
discussion was
transferred to CTEEP
Privatization event .
State-owned
Eletropaulo became
AES Eletropaulo
Apr/98
63
Eletrobrás lawsuit
May/09
In accordance to the
procedure that was
stipulated by 2nd
Instance Court after
an appeal from AES
Eletropaulo,
Eletrobrás requested
the 1st Instance
Court to appoint an
expert
Dec/10
Eletrobrás requested
the beginning of the
appraisal procedure
before the 1st
Instance Court
Jul/11
The 1st Instance
Court determined
AES Eletropaulo and
CTEEP to present
their arguments,
which occurred in
August
Next Steps:
1 - The appraisal procedure (AP) is
expected to begin in the 1st half of
2013 and is expected to last over 6
months
2 – AP is not expected to be
concluded in a period shorter than 6
months from its beginning
3 - After AP’s conclusion, a 1st
Instance Court decision will be issued
> In case of an unfavorable decision:
4 – Appeal to the 2nd Instance Court
and file an injunction to stay the
execution proceedings
5 – If the injunction is not granted, the
execution proceeding can be resumed
and Eletropaulo will have to post a
guarantee
6 – Eletrobrás can request the seizure
of the guarantee
7 - Appeals to the Superior Courts and
file an injunction to stay the execution
proceedings
Dec/12
Eletrobrás requested
the withdrawal of the
judicial deposit made
by state-owned
Eletropaulo in 1988,
which now amounts
for R$ 95 MM
(principal of the loan
taken in 1986), as a
direct consequence of
Eletrobrás’ victory on
the merits
The 1st instance
Court dismissed the
parties’ requests of
producing evidences
and rendered a
decision stating AES
Eletropaulo’s
responsibility for the
debt pursuant to the
Spin-Off Protocol
Jan/12
AES Eletropaulo filed an
appeal on Jan 7th arguing that
the decision is invalid, because
the procedure preceding such
decision should encompass full
discovery, pursuant to Superior
Courts determination. Also,
the Company requested a
preliminary injunction to stay
the execution proceedings until
the ruling of the appeal
The Rio de
Janeiro State
Court of Appeals,
granted on 15th a
preliminary
injunction that
suspended the
effects of the
December 2012
decision
Feb/12
On 21st, AES
Eletropaulo became
aware of the
favorable decision
granted by the
TJRJ, which fully
annulled the first
instance decision
and determined the
return of the case to
the 1st instance
64
Attachment AES Eletropaulo: Pension plan
ACCOUNTING
EXPENSE
CASH
DISBURSEMENT
CVM (Brazilian SEC) Regulatory Agency PREVIC (Pension plans regulator)
Difference between interest on actuarial
liabilities and assets Determination Result of the FCesp actuarial valuation
Calculated in accordance to market
value (National Treasury Notes/NTN-B)
on 12/31/2012: 3.75% p.a.
Discount rate Calculated in accordance to a study performed
by FCesp (Resolution CNPC No. 9): 5.5% p.a.
Pension plan expenses and disbursements
are calculated using different assumptions
Company Financial Statements
Recognition FCesp Financial Statements
66
Main amendments on accounting rules
Until 12.31.2012
(Res. CVM 600)¹
From 01.01.2013
(Res. CVM 695)
Determined by a study of a specialized
company (6.79% for 2012)
Expected return on
plan assets
Corresponds to the actuarial liabilities
discount rate (3.75% for 2013)
Accrued over the years in the "corridor"
(10% excess of actuarial liabilities
recognized in the income statement)
Actuarial Gains
and losses
Fully recognized in the Company's balance
sheet (Liabilities and Shareholders‘ Equity)
Amortized over the average future
service period of active participants
and recognized in income statement
Corridor over 10%
of plan liabilities There is no impact (fully recognized in the
balance sheet of the Company)
1 – Revoked by CVM Resolution 695, on December 13, 2012 67
916.6 Rate costs 1,018.1 Discount rate decreases from 5.5% to 3.75%
(788.6) Expected return
on plan assets (696.5) Rate of return decreases from 6.79% to 3.75%
15.3
Amortization
of actuarial
gains and losses
- Extinction of the corridor method
2012
R$ million
2013
R$ milllion
159.7 Total expenditure 350.9
16.3 Service cost 29.3 Discount rate decreases from 5.5% to 3.75%
Impact on the income statement due to
changes imposed by CVM
Increase on expense shall be reversed through equity in the coming years due a grater expected
profitability of the plan compared to the expected return on plan assets used in the calculation
Average return over the last five years on 16% (above the actuarial target period) 68
Cash impacts with the plan
Amendments set forth by CVM 695 has no influence on assumptions and on the calculation
method of the pension plan cash disbursement
271.7 Cash disbursement
before and after CVM 695
2012
R$ million
2013
R$ million
283.6 IGP-DI discount rate decreases from +6% to +5.5%,
offset by marking securities to market
+4.4%
For 2014 is not expected a significant increase on cash disbursement, since the actuarial
assumptions were maintened
69
Attachment
Other subjects
Shareholders agreement
Any party with an intention to dispose its shares should first provide the other party the right to buy
the corporate interest at the same price offered by a third party
Once the offering party exercises the Drag Along clause, offered party is obligated to dispose of all
its shares at the time, if the Right of 1st Refusal is not exercised by offered party
In the case of change in Brasiliana’s control, tag along rights are triggered for the following
companies (only if AES is no longer controlling shareholder):
– AES Eletropaulo: Tag along of 100% on its common and preferred shares
– AES Tietê: Tag along of 80% on its common shares
– AES Elpa: Tag along of 80% on its common shares
On Dec-2003 AES and BNDES executed a Shareholders’ Agreement to regulate their relationship as shareholders of
Brasiliana and its controlled companies. The Agreement is available at www.aeseletropaulo.com.br/ri,
http://ri.aestiete.com.br/ and http://www.aeselpa.com.br/.
Shareholders can dispose its share at any time, considering the following terms:
Right of 1st
refusal
Drag along
rights
Tag along
rights
71
Costs and expenses
Costs and operational expenses1 (R$ million)
1 – Do not include depreciation and amortization 2 - Personnel, Material, Third Party Services and Other Costs and Expenses
72
246 245
372
66
224
187 174
198
51
41
2010 2011 2012 1Q12 1Q13
Energy Purchase, Transmission,Connection Charges and Water Resources
Other Costs and Expenses
433
117
419
570
264
²
126%
Operating costs and expenses¹ (R$ million)
Energy costs pushed the costs and
operating expenses in the 1Q13
1 - Not including depreciation and amortization 73
117 117
282 271 267 264
165
2 8 4 3
1Q12 electric energy purchased for resale
operat. Provisions and Other Exp.
personnel, material and third party services
transmission and Conection
financ. comp. for use of wat. resources
1Q13
Costs and expenses
Costs and operational expenses1 (R$ million)
1 – Do not include depreciation and amortization
2 - Personnel, Material, Third Party Services and Other Costs and Expenses
PMS2 and other expenses (R$ million)
4,354 4,464 5,376
1,211 1,422
1,255 1,251
1,551
421 450
5,609 5,715
6,927
1,632 1,872
2010 2011 2012 1Q12 1Q13
Energy Supply and Transmission Charges¹
PMS² and Others Expenses
74
647546
725
190 211
443513
565
132 134
165 192
261
99 106
1,255 1,251
1,551
421 450
2010 2011 2012 1Q12 1Q13
Personnel and Payroll Material and Third Party Others
15%
7%
75
Manageable PMSO¹ items
below the inflation in 1Q13 PMS and other expenses¹ – 1Q13 (R$ million)
-1.4%
421
356
297 297 294 292 292 292
362
450
(65)
(60)(3) 1 (3)
69
88
1Q12 FCesp Contingencies, ADA and
Write-Offs
1Q12Manageable
Personal Materials and
Third Party Services
Others 1Q13Manageable
Contingencies, ADA and
Write-Offs
FCesp 1Q13
1 - Personnel, Material, Third Party Services and Other Costs and Expenses
Brazilian main taxes
AES Eletropaulo
• Income Tax / Social Contribution:
– 34% over taxable income
• ICMS: 22% over Revenue (average rate)
– Residential: 25%
– Industrial and commercial: 18%
– Public entities: free
• PIS/Cofins:
– 9.25% over revenue minus Costs
AES Tietê
• Income Tax / Social Contribution:
– 34% over taxable income
• ICMS (VAT tax)
– deferred tax
• PIS/Cofins (sales tax):
– Eletropaulo´s PPA: 3.65% over Revenue
– Other bilateral contracts: 9.25% over Revenue
minus Costs
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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.
Contacts:
+ 55 11 2195 7048