Webcast 2Q11
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- AES Eletropaulo's energy consumption increased in the captive and free markets in 2Q11 compared to 2Q10. Losses decreased and reliability indices SAIDI and SAIFI improved. - EBITDA increased 4.2% in 2Q11 over 2Q10, excluding one-time effects. Net income increased 6.1% when excluding one-time impacts. - Interim dividends of R$291 million were distributed, representing 50% of 1H11 results. The tariff reset was postponed to an undefined date due to the regulatory methodology still being determined.
Webcast 2Q11
- 2. 2Q11 Highlights Operational Operational • Higher energy consumption: captive market 2.7% and free market 4.9% • Losses: reduction of 0.7 p.p. when compared to 2Q10 • SAIDI was reduced by 17% and SAIFI by 14% in the last 12 months (June basis) • Investments with own resources of R$ 153.6 million, 23.3% higher than 2Q10 Financial Financial • Ebitda amounted R$ 525.2 million, 4.2% higher than 2Q10, disregarding one-off effect of financial liquidation of AES Eletropaulo Telecom sale to Brasiliana in Jun/10 • Financial result 64.3% higher than 2Q10 excluding one-off effect of the end of litigation concerning the agreement with Banco Santos in 2Q10 • Net Income of R$ 255.4 million, 6.1% increase compared to 2Q10, disregarding one-off effects mentioned above Dividends Dividends • Interim dividends distribution totaling R$ 291 million, representing 50% of 1H11 results, in the amounts of R$ 1.64 per common share and R$ 1.80 per preferred share Regulatory Regulatory • According to ratifying resolution 1174, AES Eletropaulo tariff reset was postponed from July 4th 2011 due to 3rd cycle undefined methodology 2
- 3. Market growth driven by the performance of residential and commercial clients Consumption Evolution (GWh)¹ +3.5% -1.8% +4.6% +1.6% +2.7% +4.9% +3.1% 11,246 10,904 8,894 9,138 3,917 4,053 2,753 2,879 2,010 2,109 1,541 1,513 683 694 Residential Industrial Commercial Public Sector Captive Market Free Clientes Total Market and Others 2Q10 2Q11 3 1 – Own consumption not considered
- 4. Losses and collection rate levels reflect the continuous efforts for internal processes improvements Losses - (%) Collection Rate (% over Gross Revenues) 11.6 11.8 11.3 102.4 101.6 102.2 10.9 10.6 101.1 98.5 5.1 5.3 4.4 4.8 4.1 6.5 6.5 6.5 6.5 6.5 2008 2009 2010 2Q10 2Q11 2008 2009 2010 2Q10 2Q11 Technical Losses¹ Commercial Losses 4 1 – Current technical losses used retroactively as a reference
- 5. SAIDI level reflects Company’s continuous investments. Excluding the effect of the cyclone, the SAIDI would be 9.87 hours SAIDI – System Average Interruption Duration Index 22.00 21.00 21.00 21.00 21.00 20.00 19.00 19.00 19.00 19.00 19.00 19.00 18.70 18.00 18.00 18.00 18.00 18.00 16.63 16.08 12.74 12.66 12.72 12.45 12.39 12.22 11.34 12.09 10.92 11.90 11.79 11.65 11.25 10.84 10.60 10.13 10.30 9.91 10.40 9.90 9.88 10.09 9.20 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 8.90 8.68 8.68 8.68 8.68 8.68 8.68 AES Eletropaulo Brazil Aneel Reference - AES Eletropaulo Source: ANEEL and AES Eletropaulo 5
- 6. Pruning plan contributed to the good performance of SAIFI SAIFI – System Average Interruption Frequency Index 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 11.72 11.74 11.34 11.00 11.00 11.00 11.00 11.00 11.00 11.00 8.49 8.41 7.87 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 6.93 6.93 6.93 6.93 6.93 6.93 6.34 6.41 6.29 6.29 6.17 6.16 6.12 6.12 5.96 5.85 5.65 5.61 5.52 5.57 5.51 5.51 5.42 5.44 5.48 5.20 5.29 AES Eletropaulo Brazil Aneel Reference - AES Eletropaulo Source: ANEEL and AES Eletropaulo 6
- 7. Extra tropical Cyclone - June 7 to 9 Action Plan: R$ 120 million Action Plan 2011 – 2012: Action Details Preventive 42 26 68 • 2011: R$ 39 million as operational expenses and R$ maintenance¹ 36 million as investments • Expand capacity on clients attendance: Customer – increase 38% call center positions (150 Attendance 35 9 43 positions) – contract 300 positions for call center in stand by condition – automated attendance increase from 2 thousand call / hour to 50 thousand call hour Tree trimming 7 7 – double SMS capacity to 100 thousand day • Deployment of mobile agency and field actions to Other process receive indemnifications requests improvements 2 • Increase on pruning, maintenance and construction teams (580 electricians) Operational expenses Investments 7 ¹ Equipment purchase and increase in maintenance and construction teams
- 8. Increasing capex: R$ 159 million in 2Q11, 21% higher than 2Q10 CAPEX (R$ million) 2Q11 Investments (R$ million) 784 800 51 682 26 700 11 28 41 600 516 5 5 500 37 11 34 400 759 654 +21% 300 478 159 200 131 5 6 Maitenance 100 154 125 Client Service 0 System Expansion 2009 2010 2011(e) 2Q10 2Q11 Losses Recovery Capex Paid by Customers IT Paid by the Clients Others 8
- 9. Revenues increased 5% due to residential and commercial classes expansion (+3.5% and +4.6%) and tariff readjustment (+1,6%) Gross Revenue (R$ million) +7% 6,990 7,466 2,406 2,651 240 324 +5% 3,558 3,732 1,234 1,342 4,344 4,490 131 160 2,193 2,231 1H10 1H11 2Q10 2Q11 Net revenue ex-construction revenue Construction revenues Deduction to gross revenue 9
- 10. Energy purchase cost kept at the same level benefited by exchange rate impact Operating Costs and Expenses ¹ (R$ million) +3% 3,315 3,410 670 710 +3% 1,650 1,704 329 363 2,644 2,700 1,321 1,341 1H10 1H11 2Q10 2Q11 Energy Supply and Transmission Charges PMS² and Others Expenses 10 1 - Depreciation and other operating income and expenses are not included 2 - Personnel, Material and Services
- 11. Increase on operating expenses impacted by non- recurring items aiming at operational improvements PMS and Other Expenses (R$ million) 16 21 (14) 3 7 363 336 336 336 346 329 329 2Q10 Personnel and FCesp Others ¹ SAIDI and One-off: 2Q11 payroll SAIFI consulting, improv. IT proj. and public lighting ¹ ADA, write-off, provisions for contingencies, losses and agreements and others operational expenses. 11
- 12. Market growth and lower expenses with pension fund positively contributed to Ebitda Ebitda (R$ million) (265) 66 (20) (21) 14 (23) 5 770 551 529 529 520 520 525 504 504 504 2Q10 One-off: 2Q10 Net Revenues En. purchase Salary Fcesp SAIDI/ SAIFI, Others¹ 2Q11 Eletropaulo ex and trans. adjustment IT, consulting Telecom sale one-off usage and public light. liquidation rate exp. ¹ Others: ADA, provisions for conitingencies, losses and agreements and other operational revenues/expenses. 12
- 13. Financial results positively impacted by exchange rate (Itaipu) and higher investments income Financial Results (R$ million) Financial Results (R$ million) – ex one-offs1 78 46 1H10 1H11 2Q10 2Q11 (11) (10) (11) (10) (28) 1H10 1H11 2Q10 2Q11 +82% +64% (60) ¹ One-off regarding the receipt of Banco Santos bankruptcy agreement in 2Q10. 13
- 14. 2Q11 recurring net income in line with the same period of the previous year Net Income (R$ million) 709 245 537 Dividends 1H11 (R$ Million) 486 Net Income ‐ June 30, 2011 537.3 162 117 Realization of equity valuation adjustments 44.7 245 255 Legal reserve ‐ +9% Distribution basis 582.0 47 - 5% 70 346 376 Distribution basis proposal 291.0 194 185 R$ 1.64 per common share and R$ 1.80 per preferred share 1H10 1H11 2Q10 2Q11 0 Q 0 Q Net Income - ex one-off and regulatory assets and liabilities Regulatory assets and liabilities One-off Ex-dividends date: 08/11/11; Payment date: 09/22/11 14
- 15. Operational cash generation reflects market and collection rate growth Operational Cash Generation (R$ million) Final Cash Balance (R$ million) +12% -42% 654 1,786 584 1,043 2Q10 2Q11 2Q10 2Q11 15
- 16. Net debt increase reflects reduction in cash balance Net Debt Average Cost and Average Term (Principal) 1.3x 0.9x 7.1 6.8 2.4 3.0 106.4% 108.9% 2Q10 2Q11 2Q10 2Q11 Net Debt (R$ billion) 13.0% Efective rate 13.6% Net Debt/Ebitda Adjusted with Fcesp 1 Average term - Years % of CDI² 16 1 - EBITDA Adjusted in last 12 months 2 – Brazil’s Interbank Interest Rate
- 17. 2Q11 Results The statements contained in this document with regard to the business prospects, projected operating and financial results, and growth potential are merely forecasts based on the expectations of the Company’s Management in relation to its future performance. Such estimates are highly dependent on market behavior and on the conditions affecting Brazil’s macroeconomic performance as well as the electric sector and international market, and they are therefore subject to changes. 17