Webcast 2 q12 eng
- 1. OPERATING AND FINANCIAL RESULTS 2Q12
- 2. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results 2
- 3. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results 3
- 4. Introduction Presentation of Operating and Financial Information ► The financial information contained herein is presented in consolidated figures, pursuant to Brazilian Corporate Law, based on revised financial information. The consolidated financial information represents: i) 100% of CEMAR’s results, excluding 34.89% related to minority interests, ii) 25% of Geramar’s results and iii) 100% of Equatorial Soluções’ results, which in turn consolidated 100% of Sol Energias’ results, excluding 49% of minority interest before Net Income. ► The operating information presented herein consolidates 100% of CEMAR’s results and 25% of Geramar’s results. ► The following information was not reviewed by the independent auditors: i) non-financial information relating to CEMAR, Light and the PLPT (Programa Luz para Todos - Light for All Program); ii) pro forma information and its comparison with the results presented in the period; and iii) management expectations regarding the future performance of the Companies. 4
- 5. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results 5
- 6. Operating Highlights ► CEMAR’s billed energy volume totaled 1,201 GWh in 2Q12, 12.5% more than in 2Q11. ► CEMAR’s last-12-month energy losses totaled 20.4% of required energy in 2Q12, 1.0 p.p. less than the 2Q11 ratio. ► CEMAR’s last-12-month DEC and FEC indices came to 21.7 hours and 11.6 times, respectively, in 2Q12, 10.6% and 0.2% up on the 2Q11 figures. ► Pursuant to a Material Fact published on June 27, Equatorial presented a proposal for the acquisition of control of CELPA (Centrais Elétricas do Pará S.A.), currently in judicial reorganization. It should be noted that the completion of this potential acquisition is subject to precedent conditions as indicated in the aforementioned proposal. 6
- 7. Financial Highlights ► Net operating revenues (NOR) totaled R$570.8 million in 2Q12, 22.1% up on 2Q11, reflecting a 19.7% increase by CEMAR. ► 2Q12 adjusted EBITDA came to R$115.2 million, 4.3% higher than the amount reported in 2Q11. ► Adjusted Net Income totaled R$38.8 million in the quarter, 11.6% down on the adjusted amount reported in the same period last year. ► Equatorial’s consolidated investments amounted to R$138.1 million in 2Q12, 24.8% up year-on-year. In CEMAR (excluding direct investments in the Light For All Program), total capex amounted to R$101.0 million, 58.1% growth. Light For All Program investments totaled R$37.1 million. ► In June 2012, CEMAR’s 4th Issuance of Debentures was concluded, where R$280 million were raised, maturing in 2020. 7
- 8. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results 8
- 9. CEMAR – Electricity Sales Volume ► CEMAR: 2Q12 energy sales moved up by 12.5%, reaching 1,201 GWh. Electricity Consumption per Segment (GWh) CONSUMPTION SEGMENTS * (MWh) 2Q11 1Q12 2Q12 Chg. 1S11 1S12 Chg. Residential 497,243 529,073 562,098 13.0% 964,901 1,091,171 13.1% Industrial 107,058 112,615 114,104 6.6% 209,113 226,719 8.4% Commercial 213,087 223,786 241,254 13.2% 411,224 465,394 13.2% Other 249,898 253,993 283,459 13.4% 479,634 535,415 11.6% TOTAL 1,067,286 1,119,467 1,200,915 12.5% 2,064,872 2,318,699 12.3% (*) Does not consider own consumption and sales to CEPISA. Energy Balance (GWh) ENERGY BALANCE (MWh) 2Q11 1Q12 2Q12 Chg. 1S11 1S12 Chg. Required Energy 1,333,988 1,394,721 1,473,569 10.5% 2,592,179 2,868,290 10.7% Sold Energy (*) 1,069,249 1,119,828 1,201,269 12.3% 2,068,532 2,321,097 12.2% Losses 264,740 274,893 272,300 2.9% 523,648 547,193 4.5% (*) Considers sale to the segments, own consumption and sales to CEPISA 9
- 10. Distribution – Energy Losses in CEMAR Total Losses over Required Energy (last 12 months) 28.7% 28.9% 28.6% 28.9% 28.5% 28.1% 28.1% 26.4% 25.2% 24.2% 23.1% 22.2% 22.2% 22.0% 21.6% 21.4% 21.2% 21.0% 20.7% 20.4% 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Regulatory Target Total Losses (from Aug-11 until Jul-12) Non-technical Losses over Low-Voltage Market (last 12 months) 30.4% 30.6% 29.9% 30.0% 29.0% 28.7% 27.3% 23.7% 21.5% 19.5% 18.9% 15.7% 15.9% 15.7% 15.2% 15.4% 15.3% 15.3% 15.2% 14.9% 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Regulatory Target Non-technical Losses (from Aug-11 until Jul-12) 10
- 11. Distribution – DEC and FEC (Last 12 months) ► CEMAR: In 2Q12, the DEC and FEC rates increased respectively 10.6% and 0.2% over the same quarter last year. DEC (hours) FEC (times) 21.7 11.5 0.2% 11.6 19.6 10.6% 2Q11 2Q12 2Q11 2Q12 11
- 12. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results 12
- 13. Quaterly Results ► In 2Q12, adjusted EBITDA totaled R$115.2 million, down 4.3% over the amount recorded in 2Q11. Adjusted EBITDA (3.0) 5.5 (9.8) -4.3% 123.3 120.3 125.0 115.2 EBITDA Adjusted EBITDA Adjusted EBITDA Energy EBITDA 2Q11 REFIS 2Q11 2Q12 Purchase 2Q12 13
- 14. Quaterly Results ► Adjusted Net Income for the quarter was R$38.8 million, a decrease of 11.6% compared to the same amount of the previous year. Adjusted Net Income (0.4) (5.4) -11.6% 44.3 43.9 44.2 33.8 NI Adjusted NI Adjusted NI Energy NI 2Q11 REFIS 2Q11 2Q12 Purchase 2Q12 14
- 15. Debt: Schedule of Gross Debt Maturities Consolidated Gross Debt (100% CEMAR + 25% Geramar) 103.3 Geramar 401.6 - 118.2 - 165.5 - 158.7 1,538.5 - 141.1 103.3 CEMAR 553.2 Gross Debt Short Term 2013 2014 2015 2016 After 2016 15
- 16. Net Debt - Consolidated 100% CEMAR + 25% Geramar Net Debt (R$MM)(*) and Net Debt/ EBITDA Net Debt Reconciliation (R$MM) (Last 12 months) 2.1 2.0 2.0 2.0 2.2 1,082.6 1,108.3 (4,2) 994.2 974.6 1,002.4 537,6 1.641,7 1.108,3 2Q11 3Q11 4Q11* 1Q12 2Q12 Dív. Bruta Ativo Reg. Disponível Dív. Líq. Líquido 16
- 17. Net Debt – Pro-rata 65.11% CEMAR + 25% Geramar Net Debt (R$MM) and Net Debt/ EBITDA Net Debt Reconciliation (R$MM) (Last 12 months) 2.1 2.0 2.0 2.1 2.1 674.7 681.7 735.0 751.0 661.5 356.6 1,104.9 751.0 (2.7) 2Q11 3Q11 4Q11* 1Q12 2Q12 Gross Debt Net Cash Net Debt Regulatory Asset 17
- 18. Capex - Equatorial ► CEMAR: In 2Q12, total capex reached R$138.1 million, of which R$101.0 million are own capex and R$37.1 million regarding the Light for All Program (PLPT). INVESTMENTS (R$MM) 2Q11 1Q12 2Q12 Chg. 1S11 1S12 Chg. CEMAR Own (*) 63.8 73.8 101.0 58.1% 106.4 174.8 64.2% Light For All Program 46.8 44.5 37.1 -20.7% 84.5 81.7 -3.4% Total 110.7 118.4 138.1 24.8% 191.0 256.5 34.3% Geramar Generation 0.0 0.2 0.0 -13.9% 0.2 0.2 0.1% TOTAL 110.7 118.5 138.1 24.8% 191.2 256.7 34.3% (*) Including indirect Light For All Program investments 18
- 19. Contacts Eduardo Haiama CFO and IRO Thomas Newlands Investor Relations Telephone 1: +0 55 (21) 3206-6635 Telephone 2: +0 55 (21) 3217-6607 Email: ir@equatorialenergia.com.br Website: http://www.equatorialenergia.com.br/ir 19
- 20. Disclaimer • This presentation may contain forward-looking statements, which are subject to risks and uncertainties, as they were based on the expectations of Company’s management and on available information. These prospects include statements concerning the Company’s current intentions or expectations for our clients; this presentation will also be available at our website www.equatorialenergia.com.br/ir and in the IPE system of the Brazilian Securities and Exchange Commission (CVM). • Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market share and competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factors and values that can establish these results are outside Company’s control or expectation. The reader/investor is advised not to completely rely on the information above. • The words “believe", “can", “predict", “estimate", “continue", “anticipate", “intend", “forecast" and similar words, are intended to identify estimates, which refer only to the date on which they were expressed. Hence, the Company has no obligation to update said statements. • This presentation does not constitute any offering, invitation or request of subscription offer or purchase of any marketable securities. And, this statement or any other information herein, does not constitute the basis for any contract or commitment of any kind. 20