JP Morgan Asia Pacific & Emerging Markets Equities Conference - London and NY

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<ul><li> 1. September 2007 </li></ul><p> 2. Disclaimer This presentation may include forward-looking statements of future events or results according to regulations of the Brazilian and international securities and exchange commissions. These statements are based on certain assumptions and analysis by the company that reflect its experience, the economic environment and future market conditions and expected events, many of which are beyond the control of the company. Important factors that may lead to significant differences between the actual results and the statements of expectations about future events or results include the companys business strategy, Brazilian and international economic conditions, technology, financial strategy, public service industry developments, hydrological conditions, financial market conditions, uncertainty of the results of future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the actual results of the company may be significantly different from those shown or implicit in the statement of expectations about future events or results. The information and opinions contained in this presentation should not be understood as a recommendation to potential investors and no investment decision is to be based on the veracity, current events or completeness of this information or these opinions. No advisors to the company or parties related to them or their representatives shall have any responsibility for whatever losses that may result from the use or contents of this presentation. This material includes forward-looking statements subject to risks and uncertainties, which are based on current expectations and projections about future events and trends that may affect the companys business. These statements include projections of economic growth and energy demand and supply, as well as information about the competitive position, the regulatory environment, potential opportunities for growth and other matters. Several factors may adversely affect the estimates and assumptions on which these statements are based.2 3. Geographical Presence In 2006, Energias do Brasil distributed 24 TWh to 3.1 million customers In 1H07, total installed capacity reached 1,043 MWLAJEADO PLANTPEIXE ANGICAL PLANT ENERSUL Installed capacity: 250 MW Installed capacity: 452 MW(adjusted for Energias do Distrib. energy: 3,126 GWhBrasils stake) Customers: 695 thousand Municipalities: 73 Concession area: 328,316 Km N. inhabitants: 2.1 million CESA and ENERGEST Installed capacity: 294.1 MWPANTANAL ENERGTICA To be constructed: 29.0 MW Installed capacity: 31.2 MW ESCELSA Distrib. energy : 8,060 GWh Customers: 1,076 thousandBANDEIRANTE Municipalities: 70 COSTA RICA Concession area: 41,241 Km2 Distrib. energy: 12,763 GWh N. inhabitants: 3.2 million Customers: 1,352 thousand Installed capacity: 16.5 MW Generation Municipalities: 28 Concession area: 9,644 Km2 Distribution N. inhabitants: 4.4 million 3 4. Current Organizational Structure EDP GroupMarket62.4% 37.6% 27.65% 160% 100% 100%100%100% Peixe Lajeado Energest2 EnertradeBandeirante EnersulAngical 100%51% 100% 100% PantanalCESA2Costa RicaEscelsaEnergtica3Generation CommercializationDistributionLegend% of the Total Capital Notes: 1 Voting capital, also represents the percentage of installed capacity allocated to Energias do Brasil. Energias do Brasil holds 23.05% of its total capital 2 Includes Escelsas generation assets 3 Includes Enersuls generation assets 4 5. Corporate Governance Board of Directors5 members appointed by controlling2 membersshareholder, including Chairman ofappointed by 2 independent the Board (CEO and CFO are also minority membersmembers of the Board) shareholdersBoard CommitteesCorporate Governance AuditSupervisory Compensation and SustainabilityChair: IndependentChair: Chairman of theChair: Chairman of theChair: IndependentBoard Board Composition 1 Apptd. by MinorityCEO 1 Independent 1 Apptd. by Minority 1 Apptd. by Controlling CFO 1 Apptd. by Controlling 1 Apptd. by Controlling 5 6. Distribution 7. Distribution Assets 7 8. Operating PerformanceVolume of Energy Distributed Energy Distributed by Customer Class (GWh) (% of Total Volume Distributed)+3.8% +3.8%23,061 23,948 23,061 23,948 1% 3,1261% 3,10830%36% 8,060 +4.0% +4.0% 7,639 11,93812,411 11,93812,411 1,635 2%1% 1,55636%37% 4,028 4,23469%62%12,315 12,76362%62% 6,354 6,54320052006 1H06 1H07 2005 2006 1H06 1H07 Bandeirante Escelsa EnersulEnd Customers Energy in TransitOther 8 9. Market Profile Volume 1H07 Bandeirante EnersulEscelsaEnergias do Brasil(GWh)(GWh)(GWh)(GWh) 6,542.61,635.04,233.7 12,411.3 20%13% 18%21% 29%39%36%42% 24%12%22%18% 14% 12% 7% 12%20% 12% 13% 16% ResidentialIndustrial CommercialRural and otherEnergy in transit9 10. Market Profile Revenues 1H07 BandeiranteEnersulEscelsa Energias do Brasil* (R$ MM)(R$ MM)(R$ MM)(R$ MM)1,224.8 518.3 787.2 2,526.8 5% 12% 13% 16% 8% 35%21% 33% 35% 38%13%16% 18%24%20%26%12% 19% 16%20%ResidentialIndustrialCommercialRural and other Energy in transit Note: Data in R$ refers to Revenue net of ICMS Tax, RTE, Own Consumption and ECE/EAE, but including Low Income. * Only the Distribution Business is considered 10 11. Efficiency Indicators DEC (hours) FEC (x)BandeiranteEscelsa EnersulBandeirante Escelsa Enersul13.613.810.4 12.09.9 10.011.8 11.0 8.7 9.2 9.2 8.8 10.19.1 8.3 8.16.66.0 6.3 6.2 6.2 7.8 5.55.4 2005 2006 1H06 1H072005 2006 1H06 1H072005 2006 1H06 1H072005 2006 1H06 1H072005 2006 1H06 1H072005 2006 1H06 1H07 TMA (minutes) Productivity (000 clients / employee)BandeiranteEscelsa EnersulBandeirante Escelsa Enersul 187 1721.291.24 160 155139144 1.071.07 1.061.06 119 112 0.90 0.93 0.780.92112 103 1200.89 980.76 2005 2006 1H06 1H072005 2006 1H06 1H072005 2006 1H06 1H07 2005 2006 1H06 1H07 2005 2006 1H06 1H07 2005 2006 1H06 1H0711 12. Project Vanguarda Organizational structure implemented before IPO allowed capture ofsynergies among Bandeirante, Escelsa and EnersulVanguarda Phase 1 Establishment of standard policies andprocedures among 3 companies Reduction in personnel: Voluntary DismissalProgramCapture Cost fully booked in june/06: R$ 52 millionof Estimated reduction in personnel after Synergies conclusion: 16% Vanguarda Phase 2 Development of standard ITplatforms Redesign of critical processes(Lean methodology) 12 13. Curbing Losses In 1H07, R$ 38 million were invested in actions aimed at cutting downcommercial losses (R$ 13 million in Opex and R$ 25 million in Capex).Commercial losses (% of energy distributed - last 12 months)Bandeirante Escelsa EnersulEDB7.8 ~ 330k inspections in 1H076.0 5.9 6.65.0 5.4 ~ 148k frauds identified 4.1 3.8 4.22.2 2.3 2.4 ~ R$ 17 MM in revenues recovered ~ 700k inspections scheduled for 2007Jun Jun Jun Jun Jun Jun Jun Jun JunJun Jun Jun 0506 07 0506 07 0506 070506 07 Delinquency (%)Bandeirante EscelsaEnersul 2.52 2.42 Bandeirantes delinquency rate in1.88 1H07 affected by R$ 11.7 MM provision1.28 1.401.21 1.31 1.13for non-transfer of revenue by0.95 collection agentJun JunJunJun Jun Jun JunJun Jun 0506 07 05060705 0607 13 14. Capex Capex Breakdown* (R$ MM) 466 2007 E376 149 323 130 Grid Expansion116 58Grid Modernization 12215313222Automation, Telecom and IT92 66Actions to curb losses164109 128 78Vanguarda Project200520062007E 114 Other466 TOTALBandeiranteEscelsa EnersulExcludes Capex for Universalization Program. 14 15. Luz Para Todos Program In 1H07, R$ 26 million were invested in the Luz Para Todos Program Investments in the LPT Program 2007ENew connections(R$ MM) (*units until August 17, 2007)11,90855.511,000 10%46.38,53415%10% 9,860 15%6,71735%4,0085,4793,85265% 4,0002,3002,0483,3992,684 40% 85846143110% EscelsaEnersul2004 2005 2006 2007* 2007E 2008E CDERGR Own resources State Gov. BandeiranteEscelsaEnersul Note: Bandeirante LPT Program concluded in 1H07. Total investment in 2007 was R$ 3.5 million.15 16. Tariff Readjustment MechanismSectorial Energy PurchasesTransmission CostsTaxesParcel A (non-manageable costs) Net Gross Rate ofDepreciation ReferenceRegulatory x Regulatory xCompanyAsset Base ReturnAsset BaseRateEfficient Return on Investment Regulatory DepreciationOperating CostsParcel B (manageable costs)16 17. Tariff Review Process EFFICIENCYSupply ChargesGAINST1T2 T3X=0; infl. =0X&gt;0; infl. =0TimeReview 1 Review 2 17 18. Escelsas Tariff ReviewBreakdown of Tariff Readjustment Index - August 2007-2.59% Energy PurchaseParcel-1.40% Sectorial TaxesA Tariff -0.89% Transmission ChargesRealignment Rate -1.07% Return on Investment-6.92%Parcel-0.74% Assets ReinstatementBAverage tariffreadjustment0.08%Reference Company -9.62% -0.31% Other RevenuesVariation inAccounts of 4.76%Financial Adjustments Financial Nature-7.46% 2006 Financial Adjustments to be excluded-2.70% X Factor = 1.45%18 19. Bandeirantes Tariff Review Preliminary Figures Gross RABR$ 2,694 MM Net RABR$ 1,287 MMModel CompanyR$ 237 MM Average tariffreadjustment Delinquency R$ 12 MM-11.97%Regulatory Depreciation4.62% Required Revenue*R$ 1,976 MMX Factor: -1.51% Net of Other Revenues19 20. Generation 21. Installed CapacityLajeado Peixe Angical Installed capacity and Assured Energy+452MW *(MW / Average MW) Suia1,018 1,043 Alegre Jucu 631645 Mimoso Fruteiras516So Joo I Paraso 334 So Joo II ViosaCoxim Rio BonitoCosta RicaSo Joo200520062007ECorumb +25MW **Mascarenhas Installed Capacity Assured Energy4th Engine * Capacity added in 2006 ** Startup of operations in 1Q07 +50MW * 21 22. Operating PerformanceVolume of Energy ProducedVolume of Energy Sold (GWh)(GWh) +101.8%4,747 +42.6% 3,929+29.3% +62.1% 2,756 2,6552,409 2,3522,0531,486200520061H061H072005 2006 1H06 1H07 22 23. Contracting ScheduleEnergy Available for Sale (Average MW)151 130Average PriceR$ 81.4/MWh (2Q07)83451111 111111 2008 2009201020112012 20132014 2015 201623 24. Growth Opportunities Construction to start upon granting of Installation License: PCH Santa F: +29 MW (startup estimated for 2009) Estimated capex: R$ 120 MM Power upgrades: + 50 MW Approved by ANEEL: +25 MW Under Study: +25 MW Coal-fired thermal plants in partnership with MPX Minerao eEnergia: + 525 MW (50% of each of the following projects) UTE Maranho: + 350 MW UTE Pecm: + 700 MW Estimated capex: 50% of US$ 1.9 bi Small Hydro Plants (PCHs): + 438 MW Projects expected to be concluded and presented to ANEEL in 1Q08: +212 MW Projects expected to be concluded and presented to ANEEL in mid 2008: +226 MW Estimated capex: R$ 100 120 MM / plant Feasibility Studies for 7 medium sized hydro power plants:+590 MW24 25. Commercialization 26. Energy Prices Short-term Price Outlook(R$ / MWh) 30025020015010050 Jan-02Jul-02 Jan-03 Jul-03Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 HistoryCCEE officialNote: January 2002 price affected by energy rationing 26 27. Operating PerformanceVolume of Energy Commercialized Number of Large Customers (GWh) (Units) EnertradesMarket Share as+5.1% of Jun 07: 8.24%+1.6% 6,3796,70264 +20.9%63 1,193522,567+3.1%433,503 3,612 749581 5,509 3,8122,754 3,031 2005 20061H061H07 20052006 1H06 1H07Others ENBR Companies27 28. 1H07: Financial Performance 29. Financial Performance DistributionNet RevenuesEbitda (R$ MM)+3.5%(R$ MM) +1.8% 801829 4,071 4,14621% 20% 35%+36.3% 21% +19.5%45433% 30% 31%2,02530% 333 24% 1,695 25%21%34% 21% 31%31% 46% 49% 49% 31% 34% 44% 42%48% 48%200520061H06 1H07 2005 2006 1H061H07Net Income-7.9% (R$ MM)361 332 15%45%+123% 42%17422%43% 78 37% 43% 14%44% 41%11% 42% 2005 2006 1H06 1H07 BandeiranteEscelsaEnersul29 30. Financial Performance GenerationNet Revenues Ebitda(R$ MM) +170%(R$ MM) +165% 458273 25%+91.5% 21%+38.4%193 26817% 17351%19417%101 46%10124% 56% 52%33%55% 51%44% 25% 28%29% 26%45% 31%31%49% 41% 2005 2006 1H06 1H07 2005 2006 1H061H07Net Income (R$ MM) +0.8%13013119%+56.6%8541% 15%87%5419% 40%30%40% 45% 13%50% 200520061H061H07 EnergestEnerpeixeEDP Lajeado 30 31. Financial Performance Commercialization Net Revenues Ebitda (R$ MM) (R$ MM) +14.9%-93.7%495431 54+18.2%-12.6%298 252 2824 320052006 1H06 1H072005 20061H061H07 Net Income(R$ MM) -81.0%48 -15.2%2118920052006 1H061H0731 32. EBITDA 1H07 x 1H06Ebitda (R$ MM) 19 118650 (13)(29)109444 2 June/06 Enertrade Generation Distribution Accounting Contingencies BadJune/07and other debtop.expenses 23.4% EBITDA Margin 28.6%32 33. Expenses Expenses Breakdown 1H07 Breakdown of Manageable Expenses(R$ MM)st Manageable Expenses 1 Half Chg.% R$ million 20072006 Chg.Personnel 155.9 197.4 -41.5-21.0%1,149.4 471.7 Material 19.719.9-0.3 -1.3% (71%)(29%) Third-party services163.3 136.027.3 20.0%Provisions 78.537.041.5112.1%Other54.340.114.3 35.6%Total 471.7 430.441.29.6% 1,621.1 Provisions + R$ 30.5 MM: allowance for bad debt (including R$11.7 MM due to the non-transfer of revenues from a Non-manageable expensescollection agent and R$ 6.0 MM in receivables from Manageable expensesAmpla)Note: Depreciation and amortization were excluded+ R$ 11.0 MM: civil and labor contingencies33 34. Financial Result The decrease in financial revenues reflects mainly the reduction in thereturn on regulatory assets due to the fall in SELIC interest rate R$ million1H071H06Chg.%Financial Revenues 119.3 137.5 -13%Financial Expenses (189.3) (188.8) 0%Net FX Result(28.9) (34.5) -16% Net Result from Swap Operations (77.9)(73.4) 6% FX gains (loss) 49.138.926%TOTAL(98.9) (85.8)15%34 35. Indebtedness Indebtedness 1H07 Total Debt Index (Jun/07) (Net Debt Evolution - R$ MM) 2% 5% Floating rates ***Average Long Term Basic3,012Interest Rate (TJLP)Cost of Debt 34%2Q07: 11.3% 59%ShortUS$Term(698) 726 Fixed rate(425)*** Includes Selic, CDI, IGP-M and INPCLongTerm Net Debt / Ebitda1,8892,2861,850(Jun/07) 2,3451,879 1,889 1,702 1,850 3.0Gross Debt(-) Cash (-) Regulatory Net DebtNet Debt Jun/07andAssets and Jun/07Mar/071.9 1.8 MarketableLiabilities1.61.5 Securities * 2004 20052006Mar/07Jun/07 * Includes R$ 5.5 million of deposits related to debt with BNDES ** Ratio: Net Debt / EBITDA 12 monthsNet Debt (R$ MM) Net Debt / Ebitda (x) ** 35 36. Debt Maturity ScheduleJun/07 vs Jul/07* Escelsa: Debentures Issuance in Jul/07 R$250 MillionDecrease in short-term debt Term: 7 yearsExtension of average term Interest and Principal grace period: 5 yearsDecrease in average cost Rate: 105% of CDI Debt Maturity Schedule(R$ MM)As of June 30, 2007After Debentures issuance and Senior Notes repayment698 583529512 529512491491 307307262 220 241 179207158 124 131131Cash2007 2008 2009 2010 2011 2012 2013 2014 After 2014 2007 2008 2009 2010 2011 2012 2013 2014 After 2014 Jun/07* Debentures issuance was concluded on July, 200736 37. CapexCapex Breakdown*(R$ MM)658 592192 217192466 37519 1732006 2007E 1H07 Distribution Generation * Does not include Universalization Program37 38. Stock Performance in 2007 Market Capitalization: R$ 5.7 billion (ENBR3 x Indexes Performance)*140 130 ENBR3 = 8.5%120IBOV = 21.8%110IEE = 21.9%10090 IB...</p>