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Page 1: Apre 2 t07

1st HALF 2007

Page 2: Apre 2 t07
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Corporate StructureCorporate Structure

BNDESBNDES AES Holdings AES Holdings Brasil LtdaBrasil Ltda

Cia. Brasilianade Energia

AES UruguaianaAES UruguaianaInc (Cayman)Inc (Cayman) AES ELPAAES ELPA

AES Infoenergy EletropauloAES UruguaianaEmpreend. S.A. AES Tietê S.A.

C = Common SharesP = Preferred SharesT = Total

C 49.99%P 100.00%T 53.84%

C 50.01%P 0.00%T 46.15%

C 100.00%T 100.00%

C 98.26%T 98.26%

C 100.00%T 100.00%

C 100.00%T 100.00%

C 71.27%P 32.23%T 52.51%

C 77.81%P 0.00%T 30.97%

P 7.38%T 4.44%

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Eletropaulo OverviewEletropaulo Overview

Summary Operating and Financial DataSummary Operating and Financial Data

Concession AreaConcession Area

(1) Includes free customers.(2) Adjusted EBITDA = EBITDA plus pension expense plus one-time charges plus RTE amortization.

Present in 24 municipalities that make up Greater São Paulo, including the capital

42,359 Km of overhead and underground Sub-transmission lines

Distribution Installed Capacity –12,867 MVA

Directly employs about 4,336 people

Largest electricity distribution company in Latin America in terms of revenues

5.6 million of customers

Last four-year net revenue compound average growth rate (CAGR) – 6.78%

Total Assets of R$ 12.9 billion

R$ million 2005 2006 1H07

Total Energy (GWh)(1) 36,499 38,183 19,637

Net Revenue 8,321 8,354 3,490

Adjusted EBITDA (2) 2,145 2,491 1,294

Adjusted EBITDA Margin (2) 25.8% 29.8% 37.1%

Net Profit (155) 373 506

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Adjusted EBITDA of R$ 1,294.3 million, 3.2% higher than 1H06

Net Profit of R$ 505.5 million, 122.7% higher than 1H06

End of contingency with CTEEP regarding CETEMEQ property (02/16/2007) -

Agreement's total amount of R$ 125.3 million

Rating increase by S&P (04/16/2007) – National Scale from A- to A, keeping the

international rating scale in BB-

Dividends Payment (05/03/2007) – Distribution of R$ 130.4 million relative to FY

2006 earnings

Renegotiation of R$ 300 million in CCBs (05/12/2007):

– average cost from CDI + 1.82% to CDI + 1.20%

– maturity extension from 6 to 8 years

Pis and Cofins (06/30/2007) – Change in Tiete's taxation system for energy purchase

to cumulative (3.65%) applied to the amounts of energy contracted by Eletropaulo since

July, 2004 – reimbursement of R$ 192.8 million to Eletropaulo

Asset Revaluation (06/30/2007): Increase of R$ 1,537.2 million in total fixed assets

ANEEL authorized Eletropaulo a tariff review average index of -8.43%, applicable to the

Company’s tariff as from July 4th, 2007

Approved in 08/10/2007 the intermediary dividends distribution relative to 1H07, no valor

de R$ 487.8 million

1H071H07

Subsequent EventsSubsequent Events

HighlightsHighlights

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LIGHT 5.2%

Aes Eletropaulo9.1%

CEMIG5.7%

COPEL5.4%CPFL

5.3%

COELBA3.0%

ELEKTRO2.8%

Bandeirantes2.3%

RGE1.8%

AES Sul2.0%Piratininga

2.2%CELPE2.3%

Aes Eletropaulo8.4

CEMIG6.3

COPEL5.2 CPFL

4.6

LIGHT3.9

COELBA2.7

ELEKTRO2.6

RGE1.4

AES Sul1.6 Piratininga

2.0 CELPE

2.0 Bandeirantes

2.1

32.7

2.735.4

31.6

4.9

36.5

31.7

6.5

38.2

16.0

3.6

19.6

2004 2005 2006 1H07Captive Market Free Consumers

MarketMarketConsumption Evolution and Market Share (12 largest)Consumption Evolution and Market Share (12 largest)

Consumption Consumption -- TWhTWh R$ BillionR$ Billion

Total Billed Energy in BrazilTotal Billed Energy in Brazil2006 2006 –– 347,371 GWh347,371 GWh

15.379,315.054,7

15.741,116.035,8

2H05 1H06 2H06 1H07

Captive Market Evolution (GWh)Captive Market Evolution (GWh)Excluding all free consumers from previous periodsExcluding all free consumers from previous periods

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6,222

3,310

4,993

1,218

3,153

15,742

18,895

6,548

3,146

5,101

1,250

3,591

16,045

19,637

Residential Industrial Commercial Public Sector andOthers

Free Clients Captive Market Total Market

1H06 1H07

MarketMarketConsumption Comparison in GWhConsumption Comparison in GWh

+5.2%+5.2%

--4.9%4.9%

+2.6%+2.6%

+13.9%+13.9%

+1.9%+1.9%

+2.2%+2.2%

+3.9%+3.9%

80.2%80.2%

18.7%18.7%

1.1%

Captive Consumers

Free Clients

Potentially Free Clients

% Total Market (2Q07)% Total Market (2Q07)

NOTE: Charts do not consider own consumption

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1H07 1H07 –– Energy SupplyEnergy Supply

Eletropaulo Energy SupplyEletropaulo Energy Supply

Contracting strategy: – 100% to 103% of total demand

2.4%2.4%0.6%0.6%

96.0%96.0%HydroHydro

GasBiomass

0%

20%

40%

60%

80%

100%

2004 2005 2006 1H07

Proinfa (Alternative Sources)

Auctions

Others Bilateral Contracts

Bilateral Contract with Tietê

Initial Contracts

Itaipu

1.0%1.0% Others

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6.49

7.04 6.42 5.50 5.67 5.69

6.496.496.496.49

11.9912.9113.53

12.16 12.18

2004 2005 2006 1H06 1H07

Technical Losses Commercial Losses

99.0499.1099.0097.50 99.70

2004 2005 2006 1H06 1H07

Operating HighlightsOperating Highlights

Fraud and Clandestine Connections (1H07)

– 150.0 thousand inspections and 14.0 thousand frauds detected

– 35.0 thousand clandestine connections regularized

Collection Rate (1H07)

– Public Sector: 102.9%

– Private Sector: 99.5%

Cuts and Reconnections – monthly average (2Q06 x 2Q07)

– Cuts - decrease from 106,000 to 118,000

– Reconnections – increase from 70,000 to 71,000

+0.16%+0.16% +0.67%+0.67%

Loss Evolution (%)Loss Evolution (%) Collection Rate: Collection Rate: % over Gross Revenue% over Gross Revenue

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DEC e FEC current levels are lower than Aneel limits

No penalties in any of 58 electric clusters in 2006 and 1H07

1H07: Storms in Summer and on atypical months (April and May)

2H07 actions:

– Speed-up maintenance plan for total implementation before Summer

– Reinforce strategy on emergency attendance

DEC DEC andand FECFEC

(*) Average of ANEEL Standard established for each one from the 58 clusters

Source: ANEEL, Eletropaulo and INPE

6.91

6.83

5.52

5.80

8.49

7.87

9.08

8.21

8.94

6.41

12.3811.81 11.34

12.57 12.79

8.958.68 8.66 8.61 8.49

2003 2004 2005 2006 1H07

DEC (hours) FEC (times) DEC Aneel Standard* FEC Aneel Standard*

Nov/05 up to Mar/06

Nov/06 up to Mar/07

DEC: Cuts Duration

FEC: Cuts Frequency

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InvestmentsInvestments

33

58

297355

319

165

28

49378

193

330

404

2004 2005 2006 1H07

Capex Self - Financed

R$ millionR$ million1H07: R$ 193.2 million1H07: R$ 193.2 million

18%

10%

7%

15% 14%

36%

Custumer Service and System Expansion

Information Technology

Sefl - Financed

Maintenance

Loss Recovery

Others

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Tariff Reset 2007Tariff Reset 200722ndnd CycleCycle

ANEEL authorized a tariff review index of -8.43%, applicable to the tariff as from July 4th, 2007:

PART A 5,428.99

PART B 2,089.02 Remuneration 708.59

Reference Company 852.50 Bad Debts 49.45

Depreciaciation 478.48 Other Revenues (42.62)

Requeried Revenue 7,475.39

Verified Revenue 8,118.40

Req. Revenue / Ver. Revenue -7.92%

Financial Effects (38.44) Financial Effects -0.51%

Total Tariff Reset -8.43%

NET RAB: NET RAB: 4,700.204,700.20

GROSS RAB: GROSS RAB: 11,101.6211,101.62

WACC (preWACC (pre--tax): tax): 15.08%15.08%

Depreciation Rate: Depreciation Rate: 4.31%4.31%

R$ million

X Factor = 2.42%X Factor = 2.42%

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3.6% 1.7%4.8%

1.6%

8.0%

-6.2%-4.3% -2.2%

9.9%

1.6%16.9%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

2003 2004 2005 2006 2007

Part B Part A PIS/COFINS IGPM

EletropauloEletropaulo’’s Tariff Evolutions Tariff Evolution

2.1%

18.6%

11.6% 11.5%

RESIDENTIAL 307.3 301.1 -2.0%

INDUSTRIAL 240.5 257.4 7.0%

COMMERCIAL 278.7 286.0 2.6%

OTHERS 229.2 234.0 2.1%

TOTAL 278.1 282.5 1.6%

Average Tariff R$/MWh 1H06 1H07

Variation%

-8.4%

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3,357 3,490

1,710 1,814

2,0362,233

1,004 1,150

5,393 5,723

2,714 2,964

1H06 1H07 2Q06 2Q07

Net Revenue Deduction of Operating Revenue

664 747306 425

1,3861,565

664703

514342

295

2,564 2,654

1,264 1,289161

1H06 1H07 2Q06 2Q07

Operating Expenses Energy Purchase Transport

ResultsResults

Increase in the total market (captive + free consumers):

– 1H07 x 1H06: 3.9%

– 2Q07 x 2Q06: 5.1%

Tariff adjustment of 11.45% applied since July 4th, 2006

Revaluation process of judicial deposits concluded in 06/30/2007: increase of R$ 67.9 million on operating expenses

Energy Purchase Expense (2Q07 x 2Q06):– Despite the reversal of R$ 178.2 million expenses in 2Q07, due to

the change in taxation system (PIS and Cofins) the expense increased R$ 39.1 million mainly explained by the:

– Reversal of R$ 145.4 million on extraordinary expenses in 2Q06;

– Increase of R$ 72.2 million in energy purchase from Itaipu, Auctions and Proinfa in 2Q07

+6.1%

+9.2% +1.9%

Gross RevenueGross RevenueR$ millionR$ million

Operating ExpensesOperating ExpensesR$ millionR$ million

+3.5%

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EBITDAEBITDA

R$ million 1H06 X 1H07 2Q06 X 2Q07

EBITDA 947,1 996,2 523,3 605,2

RTE 163,5 162,5 82,2 80,2

Pension Fund 121,1 53,4 60,6 26,7

Provision - RTE 21,9 14,5 5,0 9,2

Judicial Deposits 0,0 67,9 0,0 67,9

Adjusted EBITDA 1.253,5 1.294,3 671,2 789,2

Adjusted EBITDA Margin 37,3% 37,1% 39,3% 43,5%

Increase +3.2% Increase +17.6%

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227.0

505.5

201.9

340.0

6.8%14.5% 11.8%

18.7%

1H06 1H07 2Q06 2Q07

Net Profit Net Margin(247.8)

9.0

(126.1)

34.41H06 1H07 2Q06 2Q07

Improvement of the financial result due to:– The increase in financial income:

Monetary Variation of R$ 70.6 million related to the accrual of judicial deposits (non-recurring event)

– The decrease of financial expenses:Reduction of R$ 441.6 million on gross debt and a lower average cost (15.4% p.y. in Jun/06 to 12.6% p.y. in Jun/07)

Real Appreciation of 11.0% on last 12 months applied to Overseas II liability of the US$ 580.0 million

Intermediary dividends relative to the

accumulated earnings of 1H07, in the value

of R$ 487.8 million:

– R$ 11.00/’000 Voting Shares

– R$ 12.10/’000 Non-Voting Shares

Ex-Dividends date: 08/27/2007

Dividends Payment date: 09/03/2007

Financial ResultFinancial ResultR$ millionR$ million

Net ProfitNet ProfitR$ millionR$ million

ResultsResults

+122.7% +68.3%

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Consolidated DebtConsolidated Debt

Gross Debt: reduction of 9.1% (R$ 441.6 million)

Net Debt: reduction of 30.0% (R$ 1.3 billion)

Foreign Currency: 1.3% of total (Hedge of 99.7%)

Amendment of CCB (R$ 300 million) – May, 2007:

– Reduction of average cost from CDI + 1.82% to CDI + 1.20%

– Increase of average life from 3.5 to 5.5 years

Pension Fund: R$ 2,373 millionPrivate Creditors: R$ 2,007 millionBNDES: R$ 55 million

Short Term x Long TermShort Term x Long TermR$ millionR$ million Gross Debt Gross Debt –– 1H071H07

Debt Highlights Debt Highlights –– last 12 monthslast 12 months Average Cost and Average LifeAverage Cost and Average Life

4,606 4,435 4,4354,877

- 9.9%-30.0%

79% 80% 80%73%

21% 20% 20%27%

2,979

4,256

2,9793,606

1Q07 2Q07 1H06 1H07

R$

mill

ion

LP CP Dívida Líquida

79% 80% 80%73%

21% 20% 20%27%

105.30%102.63%104.28%97.27%101.18%5.505.465.48

3.90

5.44

%

%

%

%

%

%

2Q06 3Q06 4Q06 1Q07 2Q070

1

2

3

4

5

Avg. Cost - % CDI* p.y. Avg. Life - years

Libor1.3%

Fixed Rate11.8%

IGP-DI53.5%

CDI/Selic33.4%

*CDI index at the end of the period

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Managerial Cash FlowManagerial Cash Flow

Operating Cash Flow: increase in the net revenue billed as a result of the 5.9% rise in power consumption over 1Q07

Financial Expenses: semi-annual payments of interest on 9th debenture issuance (R$ 18.2 million) and CCB (R$ 21.1 million)

Dividends: payment of R$ 130.0 million on May 3rd, 2007 relative to FY 2006

R$ million 2Q06 3Q06 4Q06 1Q07 2Q07

Initial Cash 358 619 767 1,166 1,301 Operating Cash Generation 653 725 741 634 738 Investments (88) (75) (85) (95) (94) Net Financial Expenses (85) (176) (91) (187) (130) Net Amortization (45) (158) (111) (71) (83) Pension Fund Expenses (108) (85) (55) (48) (48) Income Tax (67) (83) - (97) (99) Dividends - - - - (130) Free Cash Flow 261 148 399 135 155 Final Cash 619 767 1,166 1,301 1,457

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Daily Average Volume - preferred shares (R$ thousand)

20,510.7

4,177.5

18,024.9

2005 2006 1H07

Corporate GovernanceCorporate Governance

Corporate Governance Level 2– Since December 13th, 2004

– Class A Preferred Shares (ELPL5): tag along of 80%

– Class B Preferred Shares (ELPL6): tag along of 100%

– 20% of Independent Board Members

Sustainability – Listed on ISE since December 1st, 2005

– Sustainability Report based on GRI standards for the first time

+331.5%

+13.8%

85

90

95

100

105

110

115

120

125

130

Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07

ELPL6 ELPL5 Ibovespa IEE

Eletropaulo x Ibovespa x IEEIndex 100 = 12/28/06

+27.0%

+22.3%

+16.4%

+14.2%

'

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ManagementManagement““SeguranSeguranççaa SempreSempre””

Frequency and Seriousness RateFrequency and Seriousness Rate Since Oct/06 the Company adopted BBS (Behavior Based on Safety), program that aims to a security behavior change

COGE Foundation Award 2006: Safety and Health Management

Safety and Health Management System (OHSAS –18001)

Safety Committees

801

21744

1,715

17

5.65

3.03

4.12

2.912.80

2003 2004 2005 2006 1S07

Seriousness Rate* Frequency Rate*

* NRB Criteria (Brazilian Legislation)

FrequencyFrequency RateRateNNºº. Accidents x 1,000,000 . Accidents x 1,000,000

Hours / manHours / man

SeriousnessSeriousness RateRate(Lost Days+ Debited Days) x 1,000,000 (Lost Days+ Debited Days) x 1,000,000

Hours / manHours / man

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Management Management Social ProgramsSocial Programs

Eletropaulo na Comunidade Project (5th Edition in 2006)– 30 events in public schools – total of 120 thousand participants

“Circo das Artes” and “Creches Luz e Lápis”– Social-cultural development of 650 children and teenagers

Reading Rooms– 50 reading rooms installed, giving to the poorest communities access

to culture. File of 1,000 books.

“O Consumidor é Show” (*)– Free shows to 50 thousand people and 3 ton. of food collected

Volunteer - Campaigns– “Agasalho” – collected 40 thousand clothes.

– Easter - 650 chocolate eggs

– Christmas: 615 kits

(*) With proceeds of Rouanet’s Law nº 8,313/91

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Management Management EnvironmentEnvironment

Scope extension of Management Environment System (SGA) and the Certification ISO14001:2004 (182 to 188 certified sites)

Environment License for new projects or repair. The process of environment license to the current infra-structure has already began.

PROJETO POMAR: Partnership with State Department for the Environment

Urbane Arborization: urbane arborization guide, cutting trees program, 2 R&Ds projects (R$ 630 thousand) related to arborization management and leftovers. Technology Innovation: trees registry with GPS and “palm pilots”.

GRI (Global Reporting Initiative): elaboration and publication in 2006– Sustainability Report with environment indicators

World Wide Fund for Nature (WWF) agreement renewed – Funding and Publicity for Amazon’s protection

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ConclusionConclusion

Net Profit of R$ 505.5 million in 1H07, 122.7% higher than the net profit in 1H06

Reduction of 30.0% in consolidated net debt in the last 12 months

Increase of total debt’s average life from 3.7 to 5.5 years

Rating increased by S&P in national scale from A- to A

Collection Rate of 99.7%

R$ 487.8 million of dividends relative to 1H07 earnings to be distributed on September 3rd, 2007

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Tietê OverviewTietê Overview

Summary Operating and Financial DataSummary Operating and Financial Data

Concession AreaConcession Area30 year concession expires in 2029

10 hydro plants on the rivers Tietê,

Pardo and Mogi Guaçu

Installed Capacity of 2.651 MW, 18% of

the energy generated in the State of

São Paulo

100% of assured energy is sold under

long-term contract PPA with

Eletropaulo through December 2015

Price adjusted annually for inflation

(IGP-M)

Payout of 100% of the net income

reported in 2006

Oceano Atlântico

R$ million 2005 2006 1H07

Generated Energy (GWh) 12,852 12,475 7,091

Net Revenues 1,220 1,387 740

EBITDA 939 1,097 520

EBITDA Margin 77.0% 79.1% 70.2%

Net Income 556 614 303

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Tietê represents 2.5% of Brazil’s Total Installed Capacity and also is the 9th

largest private generator company in Brazil.

The 10 largest generator companies represent 62.3% (65,941 MW) of the total installed capacity in Brazil (105,927 MW).

BrazilBrazil10 largest Generator Companies 10 largest Generator Companies -- 20062006

Fonte: ANEEL; Gasnet.

Generation in BrazilGeneration in Brazil2006 – 403,6 TWh R$ BillionR$ Billion

AES Tietê

CHESF

Furnas

CESP

Itaipú

Cemig - GT

Tractebel

Copel - GER

Eletronorte

Duke

14.0%

8.1%13.0%

8.1%

2.6%

2.5%

13.6%12.1%

23.0%

3.1%

2.1%

4.6%

9.5%

8.1%

8.5%

18.7%

12.0%11.3%

20.1%

4.9%

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HighlightsHighlights

On April 10th, Aneel, approved the acquisition of Licenses to build three small hydropower plants in the state of Rio de Janeiro

On August 10th, the Board of Directors authorized the payment of R$ 142.1 million in dividends, which correspond to 100% of 2Q07 net earnings:

– R$ 1.42 per 1,000 common shares– R$ 1.56 per 1,000 preferred shares

1H071H07

Subsequent EventsSubsequent Events

PIS/Cofins – Positive impact of R$ 49.2 million on Net Income in 2Q07

Increase on transmission expense (TUSDgeneration) – Negative effect of R$ 61.1 million on Net Income in 2Q07

Ebitda of R$ 519.8 million in 1H07, 4.2% lower than 1H06

Net Income of R$ 302.5 million in 1H07, reduction of 1.0% compared to 1H06

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Generation Generation –– MW averageMW average Billed Energy Billed Energy -- GWhGWh

Energy Balance Energy Balance –– 1H071H07

Increase of 15.3% in energy generated (1H07 x 1H06)

Generation was 28.7% above the assured energy

(1,275 MW average)

Growth of 22.5% in volume sold to CCEE/MRE (1H07

x 1H06)

Eletropaulo tariff:July/2006 to May/2007 - R$ 133.87/MWh

Since June/2007 – R$ 127.03/MWh

MRE tariff – R$ 7.47/MWh

CCEE tariff* – R$ 44.05/MWh

* Average 1H07

1,040 1,258

1,392 1,363 1,467 1,424

1,642

80.7% 97.6% 109.2% 106.9% 115.1% 111.7% 128.7%

2001 2002 2003 2004 2005 2006 1S07

Generation - MW Average Generation / Assured Energy

914

738

5,587 5,557

961

177

7,239 6,749

1H06 1H07

Eletropaulo MRE CCEE/Losses

+7.3%

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ReliabilityReliability

Failure Index (FI) and Equivalent

Availability Factor (EAF) figures exceed

the requirements established by the

National Ecectic Energy Agency – ANEEL:

2.9% for (FI) and 92.0% for EAF

Average of 8.3 years operating without

accidents that require removal of

personnel from the worksite

Failure Index x AvailabilityFailure Index x Availability Period without Period without AccidentsAccidents

Plant Period WithoutAccidents - Years

Ibitinga 19.5MogiGuaçu 12.9Nova Avanhandava 10.0 Água Vermelha 9.4Limoeiro 7.3Barra Bonita 7.3Promissão 5.8Caconde 4.7Euclides da Cunha 4.3Bariri 2.0

2.2

3.0

2.5

1.6 1.7

0.8

2.3

92.5%93.0%92.6%90.9%

96.1%94.2%96.8%

2001 2002 2003 2004 2005 2006 1H07

Failure Index (FI) Equivalent Availability Factor

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1H071H07

CapexCapex

Capex – 1H07: R$ 21.7 million

– Restoration and upgrade in equipments – R$ 12.0 million

– Environment (reforestation) – R$ 5.0 million

– Small Hydropower Plants – R$ 3.5 million

– Others (SAP, Hidroway etc.) – R$ 1.2 million

Forecasted Capex - 2007: R$ 75.5 million

– R$ 22.4 million: Construction of three small hydropower plants

located in the interior of São Paulo State. Together, they will

boast na installed capacity of 8MW.

– R$ 36.6 million: Restoration and upgrading of the plants

– R$ 11.7 million: Environment

– R$ 4.8 million: SAP

Investment in Small Hydropower Plants

– Acquisition of License to build three small hydropower plants in

the State of Rio de Janeiro, with a total installed capacity of 52

MW and average 28.97 MW of assured energy, approved by

ANEEL – forecasted investments of R$ 225 million in 2 years,

from which R$ 15.3 million were already invested.

R$ millionR$ million

12.421.9

27.5

46.5

21.7

75.5

2003 2004 2005 2006 1H07 2007e

16.2% 2.4%

3.0% 22.9%

55.5%

Equip.

Hidroway

PCH

IT

Environment

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Expansion RequirementExpansion Requirement

Requirement: increase installed capacity by at least 15% (400 MW), until December 2007:

– Increasing the installed capacity in São Paulo State; or – Purchasing energy from new plants, located in São Paulo, through long term agreements

(at least 5 years)

Restrictions to increase the capacity:– State of São Paulo – no hydro resource and environmental restrictions to thermal plants – Gas supply– “New Model of the Electric Sector” (Law # 10,848/04)

Proposal from AES Tietê to the State Government of São Paulo:– To be supported by a specialized consulting company to produce a report in 12 months

regarding technical, financial, regulatory and environmental aspects, of the generation capacity expansion possibilities in the State of São Paulo and in compliance with the “New Model of the Electric Sector”

Neither ANEEL nor the São Paulo State Government have sent a formal reply to AES Tietê with regard to this issue so far

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+70.8%+70.8%

+33.2%+33.2%

34 33 16 16

8245

4416

74 175

36132

1H06 1H07 2Q06 2Q07

190

253

96

164380.7

348.8

740.4 698.0

1H06 1H07 2Q06 2Q07

ResultsResults

+6.1%+6.1%

+9.1%+9.1%

Net Revenues in 1H07 up 6% from 1H06:

(i) 0.9% price adjustment granted in July06 for the energy sold under the bilateral contract

(ii) Higher energy volume sold to Eletropaulo and to CCEE / MRE in 1Q07.

(iii) Positive impact of R$ 28.5 million due to PIS/Cofins taxation system.

Increase of 33.2% in costs and operational expenses mainly due to extraordinary items occurred in 1H07:

(i) Power Purchase – R$ 92.5 million extraordinary expense due to the increase of the transmission charge (TUSDgeneration) – Ratifying Resolution 497/07

Net RevenuesNet RevenuesR$ millionR$ million

Costs and Operational ExpensesCosts and Operational ExpensesR$ millionR$ million

Power Purchase and sector charges

Operational ExpensesDepreciation

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33

ResultsResults

EBITDAEBITDAR$ millionR$ million

--4,2%4,2%

--13,5%13,5%

EBITDA Margin

542.5519.8

268.8232.6

77.1%

61.1%

70.2%77.7%

1H06 1H07 2Q06 2Q07

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34

(47.1)

(18.9)(23.7)

10.1

1H06 1H07 2Q06 2Q07

142.1 152.6

302.5 305.5

1H06 1H07 2Q06 2Q07

ResultsResults

Positive impact in 2Q07, explained by the accounting of inflation gains on PIS/Cofins tax credits, which totaled R$ 36.6 million

IGP-M reduction of 50.0% (2Q07 x 2Q06)

Payment of R$ 142.1 million in dividends, which correspond to 100% of the net earnings obtained in 2Q07

– R$ 1.42 per 1,000 common shares– R$ 1.56 per 1,000 preferred shares

Ex-Dividends: August 27, 2007 Payment: September 3, 2007

Financial ResultsFinancial ResultsR$ millionR$ million

Net IncomeNet IncomeR$ millionR$ million

--6.9%6.9%

43.8% 40.9%

37.3%43.8%--1.0%1.0%

Net Margin

--59.9%59.9%

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Net DebtNet DebtR$ MillionR$ Million

DebtDebt

Cash availability = R$ 578 million (June, 2007)– Marketable securities with durations lower than 90 days– Average profitability around 100% of CDI

R$ million

1,4061,254

1,096

661682676

0.7x 0.6x 0.7x 1.4x

2.0x

3.2x

2002 2003 2004 2005 2006 1S07

Net DebtNet Debt / EBITDA

VencimentoAmount Creditor Maturity Cost Collateral

1,305.2 Eletrobras May, 2013 IGP-M + 10% p.a. Receivables

4.9 FunCesp III Sep, 2027 IGP-M + 6% p.a. Receivables

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Cash FlowCash Flow

2Q07 free cash flow was negative of R$ 112.3 million, mainly due to payments of R$ 165.1 million and R$ 160.5 million corresponding to dividends on the 4Q06 and 1Q07 net income respectively.

R$ million 2Q06 3Q06 4Q06 1Q07 2Q07

Initial Cash 852 777 674 691 687

Operating Cash Flow 308 290 280 288 308

Investments (6) (8) (24) (10) (12)

Net Financial Expenses (18) (15) (19) (16) (18)

Net Amortization (44) (50) (45) (46) (48)

Income Tax (20) (16) (32) (220) (17)

Dividends and Interest on Equity (295) (305) (143) - (325)

Free Cash Flow (74) (104) 17 (4) (112)

Final Cash 777 674 691 687 574

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GETI4

GETI3

Capital MarketsCapital Markets

Tietê x Ibovespa x IEE Tietê x Ibovespa x IEE -- Index 100 = June, 2006Index 100 = June, 2006

Daily Average VolumeDaily Average Volume(R$ thousand)(R$ thousand) Dividend YieldDividend Yield

100%

96.9%

95.0%

Sustainability– Sustainability Report based on

GRI standards for the first time.

64.0%

72.4%

3,441

5,930

9,726

48.5%

90

100

110

120

130

140

150

160

170

jun/06 sep/06 dec/06 mar/07 jun/07

57.6%

44.1%44.2%

13.,2%

11.4%

13.4%

13.2%

12.0%

12.3%2004

2005

2006

GETI3 GETI4 Ibovespa IEE

PayoutPayout

1,698

1,8134,232

5,714

1,6284,012

2005 2006 1H07

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“Generating Citizenship” Project– Involves the selection and support of cultural, educational

and/or human development projects which benefit communities in the interior of the Estate of São Paulo

Music for the Environment Project– 9 free outdoor concerts held in different cities. – Total public of 18 thousand people and collection of 2.3

tons of goods donated to several institutions

Reading Rooms Project– 25 Reading Rooms with approximately one thousand

books

Guri Project– Sponsorship of 5 units. More than 700 children from low

income families. Opportunity to learn how to play musical instruments and to sing in a coral

ManagementManagementSocial ProgramsSocial Programs

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ManagementManagementEnvironmentEnvironment

Global Connections– Alignment of the Company’s initiatives to International agreements and summits– Actions from AES Brazil adopted as “Best Practice” actions for AES Corp– Positive repercussion towards Environmental Authorities and NGOs that work in this

field.

Carbon Credits– Evaluation of ongoing projects

Flora Program– Produced 1 million saplings in the Promissão Plantnursery and donated them to rural communities, producers, municipal governments and NGOs

Fishery Management Project– Bred and released 2.5 million young fishinto 10 reservoirs

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ConclusionConclusion

Generation was 29% higher than assured energy in 1S07

Net Income of R$ 302.5 million in 1H07, reduction of 1.0% compared to 1H06. Net margin of 40.9% compared to 43.8% in 1H06

– The reduction on net income is mainly due to the increase of R$ 92.5 million in transmission expenses (TUSDgeneration) - extraordinary event

Payment of R$ 302.6 million in dividends, which corresponds to 100% of 1H07* net earnings

AES Tietê has been analyzing new opportunities of investments and expansion, aiming at increasing the Company’s results

* R$ 160.5 million refer to 1Q07 net earnings distributed in June 06, 2007 and R$ 142.1 million refer to 2Q07 net earnings that will be paid on September 03, 2007

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The statements contained in this document with regard to the busThe statements contained in this document with regard to the business prospects, iness prospects, projected operating and financial results, and growth potential projected operating and financial results, and growth potential are merely forecasts based are merely forecasts based on the expectations of Company Management in relation to its futon the expectations of Company Management in relation to its future performance. Such ure performance. Such estimates are highly dependent on market behavior and on the conestimates are highly dependent on market behavior and on the conditions affecting ditions affecting BrazilBrazil‘‘s macroeconomic performance as well as the electricity sector ans macroeconomic performance as well as the electricity sector and international d international market, and they are therefore subject to change.market, and they are therefore subject to change.

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ELETROPAULO METROPOLITANA ELETROPAULO METROPOLITANA ELETRICIDADE DE SÃO PAULO S.A.ELETRICIDADE DE SÃO PAULO S.A. AESAES TIETÊ S.A.TIETÊ S.A.


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