1Q07 Results
0 likes306 views
1. The company reported its 1Q07 earnings results, with António Martins da Costa, Chief Executive Officer, and Antonio José Sellare, Chief Financial Officer, presenting. 2. Volume of energy distributed grew year-over-year, with increases in Enersul's concession area and the share of free customers. Programs to curb losses resulted in lower commercial losses. 3. Generation volume increased due to the full capacity of Peixe Angical and Mascarenhas' 4th engine. New contracts and authorizations expanded generation opportunities going forward.
1Q07 Results
- 1. Conference Call 1Q07 Earnings Results António Martins da Costa Chief Executive Officer Antonio José Sellare Chief Financial Officer Flavia Heller Investor Relations Officer May 02, 2007
- 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 company’s 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 company’s 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
- 4. Distribution Volume of Energy Distributed (GWh) Energy Distributed by Customer Class (% of total volume distributed) 3.0% 3.0% 5,966 6,143 6,143 5,966 793 823 1% 1% 2,037 2,105 35% 37% 3,136 3,214 64% 62% 1Q06 1Q07 1Q06 1Q07 Bandeirante Escelsa Enersul End Customers Energy in Transit Other Growth in volume of energy distributed: market recovery in Enersul’s concession area Increase in the share of free clients in total volume distributed 4
- 5. Distribution Program for Curbing Losses In 1Q07, R$10 million were invested in programs to cut down technical and commercial losses. Evolution of commercial losses (% of distributed energy - last 12 months) 6.0 7.6 7.6 5.4 5.4 5.9 6.3 5.2 2.2 2.4 2.2 2.3 Jun/05 Mar/06 Dec/06 Mar/07 Jun/05 Mar/06 Dec/06 Mar/07 Jun/05 Mar/06 Dec/06 Mar/07 12.6% 13.2% 12.9% 13.0% 3.9% ~ 167 thousand inspections were made in 1T07 4.1% 4.0% 4.1% ~ 72 thousand frauds identified 8.5% 9.3% 8.9% 8.9% ~ 700 thousand inspections are scheduled for 2007 Jun/05 Mar/06 Dec/06 Mar/07 Technical Commercial 5
- 6. Vanguard Project PDV – Capture of accumulated annualized savings Productivity (client/employee) Cost of Personnel (R$MM/year) Indirect (Accomplished) 68.4 168% 108% 101% Direct (Accomplished) 1,287 8.4 1,223 Indirect(Estimated) 1,071 1,060 1,044 943 929 Direct (Estimated) 43.6 40.8 890 40.4 776 762 5.7 654 28.8 31.9 5.2 5.2 502 462 585 456 4.2 60.0 4.0 35.2 37.9 35.6 24.8 27.7 Bandeirante Escelsa Enersul D ec/ 0 6 A cco mp lished M ar / 0 7 A cco mp lished Jun/ 0 7 D ec/ 0 7 t ill D ec/ 0 6 t ill M ar / 0 7 1998 2001 2005 2006 1Q07 IT Project Schedule 2005 2006 2007 2008 SIT-Brasil Integração 6
- 7. Generation Volume of Energy Produced (GWh) UHE Peixe UHE PCH Angical Mascarenhas São João 104% 1,469 720 1Q06 1Q07 Installed Capacity (MW) Peixe Angical and Mascarenhas’ 4th Engine: 452 50 25 1,043 – Full capacity in 1Q07 516 PCH São João: – Energy contract started in Jan/07 – Commercial operation authorized in 2005 Peixe Angical 4th Eng. PCH Current Apr/07 Masc. S. João 7
- 8. Generation – Growth Opportunities PCHs under construction: +29 MW (Santa Fé) Power upgrades: +51 MW (under study) 18 PCHs projects to be presented to ANEEL: +438 MW Feasibility studies for 7 hydro power plants: +590 MW (225 MW in partnership with Eletronorte) Authorization to build coal-fired thermal plant: +350 MW (UTE Maranhão) Coal and biomass thermal plants: preliminary studies Participation in energy auctions Acquisition of existing assets Own initiatives 8
- 9. Commercialization Volume of Energy Distributed (GWh) 2.4% 1,657 1,697 303 235 1,354 1,462 1Q06 1Q07 Other ENBR Group companies Number of customers Growth of volume sold to free customers 35.2% 73 offset reduction of self-dealing and end of contract with Enerpeixe 54 Contract renewal: opportunity to increase customer base 1Q06 1Q07 9
- 11. Financial Performance Net Revenues (R$ MM) EBITDA (R$ MM) 13.0% 20.2% 1,114 339 986 2% 10% 282 11% 11% 27% 6% 7% 16% 82% 79% 78% 71% 1Q06 1Q07 1Q06 1Q07 Distribution Generation Commercialization Distribution Generation Commercialization Net Income (R$ MM) 28.9% 128 99 1Q06 1Q07 11
- 12. EBITDA 1Q06 x 1Q07 (R$ MM) EBITDA (R$ MM) +18 -10 +63 -7 -5 -23 +2 339 +19 282 1Q06 Distribution Genera- Commer- Tariff * Contingen- Bad Debt PMSO Other 1Q07 tion cialization cies EBITDA EBITDA Margin Margin 28.6% 30.4% * Enersul’s tariff readjustment and change in Bandeirante RAB 12
- 13. Costs and Expenses Manageable costs should be reduced as result of efficiency programs Costs and Expenses Breakdown of Manageable Expenses Breakdown 1Q07 st Manageable Expenses 1 Quarter % R$ million 2007 2006 Non- Personnel 69.8 70.8 -1.0 -1.4% Manageable manageable costs costs Material 9.7 8.1 1.5 18.6% R$ 549 million R$ 226 million (29%) Third Party Services 78.6 67.3 11.3 16.8% (71%) Provisions 36.5 21.6 14.9 68.9% Other 31.7 19.9 11.8 59.4% Total 226.2 187.7 38.5 20.5% R$ 775 million Third Party Services Provisions Other + R$ 3.0 MM: O&M + R$ 10.5 MM: + R$ 6.0 MM: shortfall Peixe Angical labor in reconciliation of contingencies accounts between + R$ 5.5 MM: Market Note: ENBR and Investco 1 Depreciation and amortization were excluded growth 13
- 14. Investments and Indebtedness Indebtedness – 1Q07 (R$ Million) Total Debt Index Net Debt evolution (Mar/07) 3% 1.8x* 3,126 1.6x* (734) 33% Net Debt / Ebitda (542) 1,850 1,879 60% 4% US$ TJLP Gross Debt (-) Cash and (-) Regulatory Net Debt Net Debt ** Fixed rate Floating rate Mar.07 Marketable Assets and Mar.07 Dec.06 Securities Liabilities ** Includes Selic, CDI, IGP-M and INPC * Ratio: Net Debt / EBITDA 12 months Investments* – does not include LFA** (R$ MM) Universalization Program R$MM 658 (includes LFA **) 192 105 466 76 22 16 54 2007 (E) 1Q07 (A) 2007 (E) 1Q07 (A) Distribution Generation * Does not include interest capitalization and/or new projects **LFA: Light for all 14
- 15. Reconhecimento 2005 Best Listed Honorable Ranked #1st Finalist Member in Company Mention Listed Company 2006 Volume R$ Th. Market Capitalization: R$5.0 billion 190 70,000 180 +88% 60,000 170 +81% 160 50,000 150 +79% 40,000 140 +68% 30,000 130 120 20,000 110 10,000 100 90 0 7/12/2005 8/30/2005 10/20/2005 12/12/2005 2/1/2006 3/24/2006 5/17/2006 7/6/2006 8/24/2006 10/16/2006 12/7/2006 1/31/2007 3/23/2007 Volume R$ ENBR3 ENBR3 Ibovespa IEE IBX Updated until March 31, 2007 15
- 16. Conference Call 1Q07 Earnings Results www.energiasdobrasil.com.br