1 q05 results presentation
0 likes167 views
CPFL Energia reported strong financial results for the 1st quarter of 2005. Net income increased to R$166 million compared to a net loss of R$12 million in the prior year. EBITDA grew 21% and gross revenue increased 14%. Energy sales rose 4.3% while demand in the concession area grew 7.3%. The company expects continued growth in energy sales and efficient management. Business outlook includes increasing generation capacity and focus on debt profile and corporate governance.
1 q05 results presentation
- 1. 1
- 2. 1th quarter 2005 Results Wilson Ferreira Jr. – CEO José Antônio Filippo – CFO Vitor Fagá de Almeida – Investor Relation May, 2005 2
- 3. CPFL Energia – Highlights 1Q05 Confirmation as a leading player in the electricity market Net income of R$ 166 million in 1Q05 reverting a net loss of R$ 12 million in 1Q04 EBITDA growth of 21% and gross revenue increase of 14% comparing 1Q05 and 1Q04 4.3%¹ increase in the total energy sales and 7.3% demand increase in the Group`s concession area Conclusion of CPFL Paulista tariff revision in April, set as definitive Financial indebtness profile improvement: •total net debt of R$ 3.7 billion •net debt / EBTIDA ratio of 2.1 Planned investment of R$ 2.6 billion on business expansion and maintenance by 2008 IFC loan conversion into equity - US$ 10 million ¹- Calendar adjustment 3
- 4. CPFL ENERGIA 4
- 5. CPFL Energia –1Q05 Results Sales (GWh) Gross Revenue 8.700 9.076 4.3% 2.500 14% 2.189 1Q04 1Q05 1Q04 1Q05 Sales increase of 4.3%1 Gross revenue increase of 14% 5.1%, 8.7% and 2.3% consumption increase 4.3% increase in energy sold rate in the residential, commercial and Increase in energy tariff of Paulista, RGE and industrial segments, respectively Piratininga Increase number of customers of 4.4% TUSD revenue increase of 171% Increase in energy sold to free customers by Start up of Monte Claro HPP operation CPFL Brazil Inflation adjustment in generation contracts 1 With calendar adjustment. 5
- 6. CPFL Energia –1Q05 Results EBITDA (R$ million) 21% 507 EBITDA increase of 21% 420 Gross revenue increase of 14% Efficient management on operations Increasing generation participation in the business portfolio 1Q04 1Q05 Net Income (R$ million) Increase net income of 1485% 166 Financial expenses reduction of 14% 1485% Reduction of goodwill amortization cost -12 1Q04 1Q05 6
- 7. All business units have positively contributed to the consolidated net income Generation Commercialization Distribution R$ Million 1Q04 1Q05 +13% +15% 1765 +12% +44% 1.635 1530 1.448 178 256 Net revenue 81 91 +21% +24% 507 +10% +25% 420 376 304 74 81 46 57 EBITDA +1485% 166 +613% 122 +44% +26% 17 24 Net Income 26 39 -12 -24 7
- 8. Business Highlights 8
- 9. Distribution – 1Q05 Results Gross Revenue (R$ million) EBITDA (R$ million) Net Income (R$ million) 2.322 122 376 2.082 304 11% 24% 613% (24) 1Q04 1Q05 1Q04 1Q05 1Q04 1Q05 Increase in the gross revenue of 11% EBITDA increase of 24% Energy sold increase of 7%1 Increase of gross revenue Tariff revision and readjusts effects Efficient management on operations TUSD revenue increase of 171% Increase net income of 613% Effective commercial losses management Financial expenses reduction of 35% 92 thousand inspections achieved Goodwill amortization cost reduction Net proceeds of R$ 12 million 1 With schedule adjustment 9
- 10. Commercialization – 1Q05 Results Gross Revenue (R$ million) EBITDA (R$ million) Net Income (R$ million) 39 296 57 31 25% 46 25% 189 57% 1Q04 1Q05 1Q04 1Q05 1Q04 1Q05 Highlights Increase in energy sales of 133% Gross revenue increase of 57% CPFL Brasil has a strong and reliable brand which allows differentiation Sales of value added service growing significantly 10
- 11. Gereneration – 1Q05 Results Gross Revenue (R$ million) EBITDA (R$ million) Net Income (R$ million) 101 81 24 87 74 10%¹ 44% 16% 17 1Q04 1Q05 1Q04 1Q05 1Q04 1Q05 Barra Grande - overview Highlights All generated energy contracted in self –dealing basis Energy supply contracts indexed to IGP-M EBITDA margin of aprox. 90% in the 1Q05 Inflation adjustment in generation contracts New projects will increase installed power capacity by 2.5x with the addition of 1,177 MW – 56% to be delivered by January, 2006 11
- 12. Perspectives 12
- 13. Business Outlook Growth in energy sales Distribution Efficient management on operations 1,5% reduction in commercial losses in the next 2 years Installed capacity increase to 1.456 MW in jan/06 with Barra Grande and Campos Novos HPP start up Generation EBITDA margin over 90% Experience in planning, management and implementation of generation projects – responsible for 35% of the Brazilian new energy by 2008 Work closely to free customers Comercialização Sales of value added service Competitive energy sales and purchase Focus on debt profile: Optimum capital structure with cost Corporate reduction and increasing average debt maturity Best practices in Corporate governance and Investors Relations 13
- 14. 1th quarter 2005 Results Wilson Ferreira Jr. – CEO José Antônio Filippo – CFO Vitor Fagá de Almeida – Investor Relation May, 2005 14