apresentao institucional 4_t09_eng_final_18032010
TRANSCRIPT
InstitutionalMarch, 2010
2
7 million clients6 thousand AES People
AES Brasil Group
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Discos
Gencos
Market Share... with a 2009 result:
R$ 3.2 billion (Ebitda)R$ 1.9 billion (net income)
Investments 1998-2009:
R$ 5.8 billion after privatization
DiscoTrading Co. Telecom
Genco
3
Shareholding structure
C 99.99 %T 99.99 %
C 99.99%T 99.99%
AESCom RJ
C = Common SharesP = Preferred Shares
T = Total
C 76.46%P 7.43%T 34.80%
AESEletropaulo
AESTietê
Cia. Brasiliana de Energia
AES Corp BNDES
C 50.00% - 1 shareP 100%T 53.85%
C 50.00% + 1 shareP 0.00%T 46.15%
C 71.35%P 32.34%T 52.55%
AES EPTelecom
C 98.26%T 98.26%
AESSul
T 99.76%
AESUruguaiana
AESInfoenergy
C 100.00%T 100.00%
4
24.2% 28.3% 39.5%
16.1% 19.2% 56.2%
7.9%
8.0%
Free FloatFederal
Government or Eletrobras1
Shareholding composition
1 – Federal Government and Eletrobrás correspond to AES Eletropaulo and AES Tietê, respectively
5
Energy sector agents in Brazil
Ministry of Mines and Energy (MME)
National Council of Energy Policy (CNPE)
Electric Energy Commercialization Chamber (CCEE)Pricing and clearing of
energy transactions
Electricity Sector Surveillance
Committee (CMSE)
Brazilian Electricity Regulatory Agency
(ANEEL)
Energy Research Enterprise (EPE)
Generation companies
Transmission companies
Distribution companies
Trading companies
System Operator (ONS)
Generator resources scheduling and dispatch
(Monitors energy supply) (Ruling, Inspection & Auditing, Monitoring, and Mediation)
(Generation & Transmission Planning)
(Set Guidelines and Policies)
(Formulates Policies)
6
Energy sector in Brazil(Contracting Environment)
Trading Companies
Free Clients
Spot Market
• Main auctions (reverse auctions):
– New Energy (A-5): Delivery in 5 years, 15-30
years regulated PPA
– New Energy (A-3): Delivery in 3 years, 15-30
years regulated PPA
– Existing Energy (A-1): Delivery in 1 year, 5-15
years PPA
Regulated Market Free Market
Distribution Companies
PPAs1
Trading Companies
Free Clients
Distribution Companies
Auctions
1 – Power Purchase Agreement
7
Tariff Reset and Readjustment
• Tariff Reset is applied each 3 to 5 years − AES Eletropaulo: each 4 years
− AES Sul: each 5 years
− Parcel A costs pass trough the tariff
− Parcel B costs are set by ANEEL
• Tariff Readjustment: annually − Parcel A costs pass trough the tariff
− Parcel B cost are adjusted by IGPM +/- X(1) Factor
Energy
PurchaseTransmission
Sector Charges
Investment Remuneration
Depreciation
Reference Company(PMSO)
RemunerationAssetBase
X Depreciation
X WACC
Regulatory Ebitda
Parcel A Non-Manageable Costs
Parcel B Manageable Costs
• Remuneration Asset Base:
– Applicable investments used to calculate the Investment Remuneration (applying WACC) and Depreciation
• Reference Company:– Efficient cost structure, determined by
ANEEL (National Electricity Agency)
• Parcel A Costs− Non-manageable costs that totally
pass- through to the tariff
− Losses reduction improve the pass-through effectiveness
(1) X Factor: index that capture productivity gains
Discos regulatory methodology(Tariff Reset and Readjustment)
9
AES Eletropaulo overview
• Largest electricity distribution company in Latin America
• Serving 24 municipalities in the São Paulo Metropolitan area
• Concession area with the highest GDP in Brazil:
– 17.1% of the Brazilian GDP and 50.3% of São Paulo’s state GDP
• 46 thousand kilometers of lines
• 4,526 km2 of concession area
• 1.1 million electricity poles
• 4,360 employees
• 5.9 million of consumption units
• Total distributed volume of 41 TWh in 2009
Concession Area
São Paulo Metropolitan Area
Regional West
Regional East
Regional South Regional ABC
Regional North
Note – Data as of Dec. 2009, except GDP which is 2006
10
Ranking¹ for energy distributors
Net Revenue
2007 2008
Ebitda
1st
2nd
1st
1st
1 – Source: ABRADEE (Brazilian Association of Energy Distributors); research among 48 energy distributors in Brazil.
Net Revenue - R$ million
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
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Ebitda - R$ million
200
400
600
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1.000
1.200
1.400
1.600
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11
Consumption evolution
Free Clients
Commercial
Total Market - (GWh)1 2009 Consumption Share - (GWh)1
Residential
Others
Industrial
Free Clients Captive market
1 – Own consumption not considered
2006 2007 2008
410
38,18339,932
41,243
31,656
6,527
32,577
7,355
33,860
7,383
+ 8%
34,436
6,832
41,269
2009
36%
15%
17%
26%
6%
121 – Own consumption not considered
Residential - (GWh) Commercial - (GWh)
Industrial - (GWh) Captive Market¹ - (GWh)
Most important consumption classes
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- 8.0 % +1.7%
13
Investments amounted up toR$ 516 million in 2009
Paid by customers
Investments Breakdown – R$ million Investments 2009
Capex
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Maintenance
IT
Others
Customer Service and System Expansion
Customer Financed
Loss Recovery
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SAIDI - System Average Interruption Duration Index
SAIDI & SAIFI
Source: ABRADEE, ANEEL e AES Eletropaulo
SAIFI - System Average Interruption Frequency Index
SAIDI (hours) SAIFI (times)SAIDI Aneel Target SAIFI Aneel Target
ABRADEE ranking position between 28 distributors with over 500 thousand consumers
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Operational indexes
• Disconnections and Reconnection – Monthly Average (2008 X
2009)
– Disconnections: increase from 33 thousand to 80 thousand
– Reconnection: increase from 32 thousand to 56 thousand
• Past due bill credit report (2009 average): 190 thousand
• Fraud and Illegal Connections (2009)
– 336,000 inspections e 41,800 frauds detected
– 80,200 illegal connections regularized
1 - Current Technical Losses used retroactively as reference
Commercial Losses Technical Losses¹
Collection Rate – % over gross revenue Losses – %
97.899.599.1
200820072006
5.5 5.1
6.5 6.5
11.612.0
5.0
6.5
11.5
2.0 p.p.- 0.2 p.p.
101.1
2009
6.5
5.3
11.8
200820072006 2009
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Regulatory WACC (%)
20072003
EMBI+ BR 4.63% 2.21%
Selic target 16.50% 11.25%
Net revenue of R$ 8.0 billion in 2009
Net Revenue – R$ million Ebitda – R$ million
2007 2008
7,5297,193
2006
6,852
+ 17.5%
2009
8,050
2007 20082006
1,7661,6961,566
17.115.1
2009
1,573
171 – Gross amount
34.9%
100.3% 101.5%
3.2%
14.4% 20.3%
130
715
1,043
Dividends Pay-out Yield PNB
2007 20082006 2009
Net income of R$ 1,1 billion in 2009
Net Income – R$ million Dividend payout1 – R$ million
• 25% of minimum pay-out according to bylaw• Practice on semi-annual basis of maximum permitted
dividend distribution, since 2006 results
2007 2008
1,027
713
2006
373
+ 185%
2009
1,063
1,080
20.4%
101.5%
18
R$ 993 million paid as dividends in 2009
Managerial Cash Flow – R$ million
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Debt profile
1 - FCesp = Pension Fund 2 - Brazil’s Interbank Interest Rate
Amortization Schedule – R$ million
• December, 2009:– Average debt cost is 87.1% of CDI² per year which means an effective rate of 8.7% per year
– Average debt maturity is 10.4 years
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Capital market
AES Eletropaulo1 X Ibovespa X IEE Average Daily Volume3 - R$ thousand
2006 2007 2008
7,508
26,06625,677
2009
21,960
IBOVIEEELPL6Dec-082 Dec-09
60%
83%
59%
Mar-09 Jun-09
2009
AA
BBCC
Sep-09
80
120
140
160
180
100
1 – Preferred shares class B adjusted by the dividends declared in the related period 2 – Index: 12/30/08 = 100 3 – Preferred shares class B
• A) 02/25/2009 – Finsocial and São Paulo municipality agreement
• B) 04/16/2009 – Public Consultation of Tariff Reset
• C) 06/16/2009 – Second Periodic Tariff Reset Revision
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22
AES Tietê overview
• 30 year concession, expires in 2029, renewable for
another 30 years
• 10 hydroelectric plants in the State of São Paulo at Tietê,
Pardo and Mogi Guaçu rivers
• Installed capacity of 2,657 MW, with physical guarantee1
of 1,280 MW
• 100% of physical guarantee contracted with AES
Eletropaulo until the end of 2015
• 315 employees
Concession Area
Água Vermelha (1,396 MW)
Nova Avanhandava (347 MW)
Ibitinga (132 MW)
Barra Bonita (141 MW)
Promissão (264 MW)
Bariri (143 MW) Mogi-Guaçu (7 MW)
Euclides da Cunha (109 MW)
Caconde (80 MW)
Limoeiro (32 MW)
Name and Installed Capacity of AES Tietê’s Plants:
1 - Amount of energy allowed to be long term contracted
Atlantic Ocean
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Energy Generation – MW average Billed Energy – GWh
AES Eletropaulo MRE2 Spot Market
13,421
1,740
11,108
13,148330
1,680
11,138
2006 2007 2008
12,774
536
1,130
11,108
573
Operational Performance
2010 Prices (R$ / MWh)
AES Eletropaulo 152.00MRE 8.51
Spot (2009 avg.) 38.74
1 - Generated energy divided by the amount of period hours 2 - Energy Reallocation Mechanism
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2006 2007 2008 2009 2009
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Investments – R$ million 2009 Investments
1- Small Hydro Power Plants Jaguari Mirim and Piabanha
Investments
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EnvironmentIT
New SHPPs
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Expansion requirement of 15%
� Increase installed capacity in Sao Paulo State by 15% (400 MW), either in greenfield projects or through long term
purchase agreement with new plants
� The obligation was supposed to be accomplished by December 2007, however AES Tietê was not able to comply with this
requirement due to the following restrictions:
– Insufficient remaining hydro resources within the State of São Paulo
– Environmental restrictions
– Insufficiency of gas supply / timing issue
– More restricted regulation on energy sale established by the New Model of Electric Sector (Law # 10,848/2004)
which eliminated the self dealing
• In August 2008, Aneel informed that the issue is not linked to the concession
• Popular law action against Federal Government, Aneel, AES Tietê, and Duke
– Status: Defense filed on first instance in October 2008 by AES Tietê. In December, 2008, the author replied AES
Tietê defense and, since this, both parties are waiting judge movement about the necessity of proves production
• On July 27, 2009, AES Tietê was notified by the State Government Attorney’s Office to present arguments on compliance
with the expansion obligation
– The Company filed a response on July, 29th, which exhausts the procedure for notification. Possible deployment
depends on new manifestation of the Prosecution
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Concluded(PPA1)Concluded(PPA1)
1 - Power Purchase Agreement 2 - Small Hydro Power Plant
AES Tietê has been seeking opportunities to increase its installed capacity to comply with the 15% increase requirement in the State of São Paulo
In ProgressIn Progress
Under EvaluationUnder Evaluation
• 6MW of co-generation by biomass contracted for 15 years (initiating in 2010)
• 7 MW of hydropower generation through SHPPs2 in Jaguari Mirim river– SHPP São José (4 MW) is expected to begin the operation in 2H10– SHPP São Joaquim (3 MW) is expected to begin the operation in 2H10
Projects -expansion requirement
• 500 MW of natural gas fired thermo plant– Location has been defined– Initiation of the environmental licensing process, with entry on CETESB in March, 2010
• 32 MW of hydropower generation through SHPPs under technical and economic viability study
27
Net Revenue – R$ million Ebitda – R$ million
2007 2008
1,6211,464
2006
1,387
+ 20%
1,254
1,0991,097
+ 15%
2007 20082006
Net revenue of R$ 1.7 billion in 2009
2009
1,670
2009
1,260
28
Net Income – R$ million Dividend Payout1 – R$ million
1 - Gross amount
100 % 100 % 100 %
12% 10% 12%
614 609
692
Dividends Pay-out Yield PN
+ 27%
2007 20082006
• 25% of minimum pay-out according to bylaw • Practice on quarterly basis of maximum permitted
dividend distribution, since 2006 results
Sustainable profitability and dividend payment
2009
780
11%
100 %
614 609
692
2007 20082006 2009
780
29
Managerial Cash Flow – R$ million
Strong cash flow
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Net Debt
• Eletrobras Debt
– Balance: R$ 969 million
– Monthly amortization
– Maturity: May 15, 2013
– Interest of 10% p.a. and monetary adjustment of IGP-M
Net Debt (R$ billion)
Net Debt / Ebitda
Debt
2005 2006 2007 2008 2009
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Daily Average Volume - R$ thousand
Capital market
Preferred(GETI4)
Common(GETI3)
5,760
9,067
2006 2007 2008 2009
2,1011,572
2,692
10,187
8,160
5,468
8,086
3,5664,188
5,531
AES Tietê1 X Ibovespa X IEE
IBOV IEEGETI4
1 – Shares were adjusted by declared dividend of the period under analysis 2 – Data Base: 12/30/08 = 100
20092
+ 83%
+ 59%
+ 41%
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Social Responsibility andEnvironmental Actions
33
Social responsibility
• Launched in December, 2008;
• Objective: to get the co-workers committed to the transformation of low income communities and development of non-governmental institutions;
• 1,137 volunteers
Volunteering Program
Acting to Transform
Enterprising in the Community
\distributing Energy of
Good
Specific social mobilization or emergency campaign.
Winter clothes, Christmas campaign, among others.
Opportunities for volunteering in social organizations, which are
partners of AES Brazil
Co-workers can enroll in volunteer activities available at AES Brazil volunteering portal
since September/09www.energiadobem.com.br
Acknowledgement and support of projects for the
development of social organizations.
Volunteers may submit projects to help other
organizations develop. Launch scheduled for January/10.
34
• 302 benefited children between 1 and 6 years old
• Own investments amounting R$ 1.5 million in 2009
• Units: Santo Amaro and Guarapiranga
• Over 5.2 thousand children, teenagers,and adults have been benefited
• Own and incentive investments: approximately R$ 14 million in 2009
• 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
• 6 units operating
“Casa da Cultura e Cidadania” Project
“Centros Educacionais Infantis Luz e Lápis” - Project
Social responsibility
35
• Carbon Credit– Clean Development Methodology (CDM) approved by United Nations Framework Convention on Climate Change
(UNFCCC), allows up to 10,000 hectare reforestation on reservoir borders– AES Tietê is seeking for good business opportunities, and has not transacted credits so far
• Reforestation– One million of seedlings production in seed-plot of Promissão hydroelectric power plant– Donation of seedlings to the society, rural producers, city halls, and non-governmental organizations
• Fish Farming– Reproduction of 2.5 million fishes in 10 reservoirs of AES Tiete's plants
• Archeological Park– Community involvement into archeological artifacts conservation and better understanding of its scientific
importance– Social access to the archeological history of the reservoir area
Environmental actions
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:[email protected]
+ 55 11 2195 7048