conference merrill lynch (02 e 03-02-06)*
TRANSCRIPT
Summary
CPFL Energia Highlights and Results
Performance in Capital Market
Value Creation Agenda
6
7
8
Distribution – 3Q05 Results
R$ 324 million Gross Revenue increase (14%)3.1% energy sales growth in concession area
111% “TUSD” revenue growth
Tariff adjustment of distribution companies
CPFL Piratininga: 14% (Oct/04)
CPFL Paulista: 18,76%1 (Apr/05)
RGE: 21,93% (Apr/05
Gross Revenue – R$ million
7.443
6.656
2.5592.235
3Q04 3Q05 9M04 9M05
14%
12%
EBITDA– R$ million
1.242
867
443219
3Q04 3Q05 9M04 9M05
103%
43%
R$ 224 million EBITDA increase (103%)
324 million gross revenue increase (14%)
54 million Taxes2 increase (8%)
6% operating expenses increase
Net Income – R$ million
501
103
190
(21)
3Q04 3Q05 9M04 9M05
1.026%
385%
R$ 211 million Net Income increase (1026%)
R$ 224 million EBITDA increase (103%)
R$ 55 million financial income3 improvement (57%)
1 In April/05: 17,74% + adjustment of 1,01% homologated by ANEEL in July/05 3 Expense net of revenue
2 Revenue deduction
Commercialization – 3Q05 ResultsGross Revenue – R$ million
1.013
649
373257
3Q04 3Q05 9M04 9M05
45%
56%
R$ 116 million Gross Revenue increase(45%)
85% energy sales growth in Free Market
77% Value Added Services Revenue increase
EBITDA – R$ million
R$ 11 million EBITDA increase (31%)
R$ 116 million revenue increase (45%)
Energy Cost growth above the gross revenue increase
164
114
4938
3Q04 3Q05 9M04 9M05
31%
44%
Net Income – R$ million112
76
3425
3Q04 3Q05 9M04 9M05
38%
48%R$ 9 million Net Income Increase (38%)
R$ 11 million EBITDA increase (31%)
Financial revenues Growth
Generation – 3Q05 ResultsGross Revenue – R$ million
R$ 33 million Gross Revenue increase (42%)
Beginning of HPP Monte Claro operation, increasing 88 GWh in 3Q05 (9% of the total)
Average price increaseSemesa 12,42% (Jan/05)Centrais Elétricas 11,12% (Apr/05)
320
243
11077
3Q04 3Q05 9M04 9M05
42%
31%
EBITDA – R$ million
258208
8965
3Q04 3Q05 9M04 9M05
36%
24%
R$ 24 million EBITDA increase (36%)
R$ 33 million gross revenue increase (42%)
Taxes: R$ 7 million Pis/Cofins increase (182%)
Net Income – R$ million87
52
32
14
3Q04 3Q05 9M04 9M05
125%
66% R$ 18 million Net Income increase (125%)
R$ 24 million EBITDA increase (36%)
6% Financial income improvement
12
CPFL will invest around R$ 2,6 billion for business maintenance and expansion, until 2008
544 523 467 398
179
161159
158
2005E 2006E 2007E 2008E
Expansion Maintenance
723681
626559
% oftotal
Total Capex
Capex – Expansion, Generation andDistribution
Capex - Debt
Total Capex -Expansion
Capex - Equity
171 149 156 158
104 93
270218
180
6053
320
2005E 2006E 2007E 2008E
373 374 311 240
544 523467
398
Generation Distribution
25%
75%
164143 150 151
1510915
2005E 2006E 2007E 2008E
Distribution Generation
% oftotal
Capex - Maintenance
179
158 159 1617%
93%
Summary
CPFL Energia Highlights and Results
Performance in Capital Market
Value Creation Agenda
Performance in Capital Market - Returns
Shares Performance - BOVESPA1 Shares Performance - NYSE1
1 2005. Share´s price on 30/12/2005: CPFE3 (R$ 28,00) – CPL (US$ 34,85)2 2005
60% 61%
39%40%
IPO 28-dez-05
49,6%
50,4%
Stock Total Trading Volume2
ADRON
Liquidity maintenance in both markets
65%
43%
28%
IBOVESPA IEE CPFE3
-1%
48%
85%
Dow Jones DJ BR 20 CPL
15
BOVESPA
ITAGDifferentiated Tag Along Shares Index
IGCDifferentiated Corporate Governance Shares Index
NYSE
IBrX Brazil Index – IBrX (IBX-100)
IEE Electric Energy Index
3,6
7,1
Bovespa Bovespa + Nyse
CPFL EnergiaDaily average trade volume - 2005
R$ million
ISE Corporate Sustainability Index
Performance in Capital Market - Liquidity
DJBr20 Dow Jones Brazil Titans 20 ADR Index
Negotiability Index: 68th place over 12 last months
Aiming for inclusion in IBX-50
16
Summary
CPFL Energia Highlights and Results
Performance in Capital Market
Value Creation Agenda
18
20