Transcript
1
4Q09
Resultados
Operacionais
e Financeiros
1T08
Operating and Financial
Results
4Q09
March 30, 2010
2
4Q09
► Highlights
► Operating Results
Agenda
► Introduction
► Financial Results
► Adherence to REFIS
► Recent Events
3
4Q09
► Highlights
► Operating Results
Agenda
► Financial Results
► Adherence to REFIS
► Recent Events
► Introduction
4
4Q09
Introduction
Presentation of Operating and Financial Information
► The financial and operating information contained herein is presented in consolidated figures, pursuant to Brazilian Corporate Law, based on revised financial information. The consolidated financial information represents 100% of CEMAR’s results, excluding 34.86% related to minority interests, 25% of Light’s results, excluding 11.97% related to minority interests, and 25% of Geranorte’s result, which is currently at the pre-operating stage.
► The consolidated operating information represents 100% of CEMAR’s and 25% of Light’s results.
► In order to facilitate comparisons with 4Q08, the financial information is presented on a pro forma basis considering the same interest held by Equatorial in RME and by RME in Light at the end of 4Q09.
► Equatorial’s pro forma results for 4Q08 are based on Light’s pro forma results for the same period, which were adjusted to reflect the changes introduced by Law 11,638/07, pursuant to CVM Instruction 565/08, together with Profit Sharing, which is no longer recorded as personnel costs/expenses and is now recognized after the Income Tax line.
► 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.
5
4Q09
► Highlights
► Operating Results
Agenda
► Introduction
► Financial Results
► Adherence to REFIS
► Recent Events
6
4Q09
Operating Highlights
► CEMAR’s and Light SESA’s total energy volume amounted to 2,414 GWh in 4Q09, 8.5%more than in 4Q08. CEMAR’s quarterly volume grew by 8.2%, while Light’s increased by8.8% (considering both captive and free markets).
► CEMAR’s last-12-month energy losses totaled 25.2% of required energy by the end of4Q09, 3.7 p.p. less than the 4Q08 ratio of 28.9%. Light’s last-12-month losses came to21.8%, 1.4 p.p. up compared with 4Q08.
► CEMAR’s last-12-month 4Q09 DEC index decreased 13.6%, to 23.6 hours, while last-12-month FEC index improved 9.5%, to 15.2 times. Light’s last-12-month DEC and FEC moveddown by 9.0% and 9.2%, reaching 10.1 hours and 6.1 times, respectively.
7
4Q09
► Net operating revenues (NOR) reached R$696.6 million in 4Q09, 7.6% up over 4Q08,reflecting a 15.2% increase by CEMAR and a 1.8% upturn by Light.
► Adjusting for non-recurring effects, 4Q09 EBITDA reached R$187.6 million, up by 9.3% over4Q08.
► Adjusted net income came to R$46.3 million in 4Q09, reflecting a 7.8% decrease over 4Q08.
► In 4Q09, Equatorial’s consolidated investments fell 16.6% when compared with 4Q08.CEMAR’s investments (excluding direct investments in the PLPT program) totaled R$63.6 millionin 4Q09, while Light’s investments came to R$52.8 million in the period, up by 23.4% over 4Q08.Geranorte’s investments reached R$13.5 million in 4Q09.
Financial Highlights
8
4Q09
► Highlights
► Operating Results
Agenda
► Introduction
► Financial Results
► Adherence to REFIS
► Recent Events
9
4Q09
Consolidated
► CEMAR: 4Q09 energy sales moved up by 8.2%, fueled by the 14.3% increase of the residential consumption.
► Light: Consumption at Light’s concession area (captive + free clients*) increased 8.8% on the 4Q09, reaching 1,429 GWh, largely due to the residential (14.7%) and commercial (9.3%) segments.
Distribution – Electricity Market
Electricity Consumption (GWh) Electricity Consumption per Segment (GWh)
*To preserve comparability with the market approved by Aneel in the Tariff Review process, the energy and demand measured
of free customers Valesul, CSN and CSA were excluded as the exit of these customers to the core network is planned.
1,314
985911
1.429
4Q08 4Q09
CEMAR Light
8.2%
8.8%
8.5%2,4142,225
4Q08 3Q09 4Q09 Chg. 2008 2009 Chg.
Residential 854.8 879.2 978.9 14.5% 3,312.9 3,611.1 9.0%
Industrial 236.1 221.6 230.6 -2.4% 898.9 846.1 -5.9%
Commercial 558.5 541.4 594.4 6.4% 2,133.3 2,222.3 4.2%
Others 410.7 426.5 451.5 10.0% 1,574.7 1,657.8 5.3%
Free Clients 164.8 151.8 159.0 -3.5% 659.0 602.0 -8.6%
Total 2,224.8 2,220.4 2,414.4 8.5% 8,578.8 8,939.3 4.2%
CONSUMPTION CLASS AND
FREE CLIENTS (GWh)
10
4Q09
Distribution – Energy Losses in CEMAR
Total Losses over Required Energy
(last 12 months)
28.7%28.1%
28.9% 28.6% 28.9%28.5%
28.1%
26.4%
25.2%
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
Total Losses
25.6%
Regulatory Target
(from Aug-09 until Jul-10)
Non-technical Losses over Low-Voltage Market
(last 12 months)
30.4%
29.0%
30.6%29.9% 30.0%
28.7%
27.3%
23.7%
21.5%
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
Non-technical Losses
24.2%
Regulatory Target
(from Aug-09 until Jul-10)
11
4Q09
Energy Balance
(*) Includes sales to the market, own consumption and sales to CEPISA
(†) Does not consider basic network losses
(*) required energy + free clients
Total Losses over Wire Load (*) - Light
41.7%
42.3%
41.8%41.8%
42.4%
4Q08 1Q09 2Q09 3Q09 4Q09
20.4%
21.5%21.2%20.8%21.8%
4Q08 1Q09 2Q09 3Q09 4Q09
Non-technical Losses over Low Voltage Market - Light
Distribution – Energy Balance and Losses
ENERGY BALANCE (GWh) 4Q08 3Q09 4Q09 Chg. 2008 2009 Chg.
Required Energy 1,271 1,247 1,295 1.9% 4,712 4,776.1 1.4%
Sales (*) 913 975 987 8.1% 3,353 3,572 6.6%
Losses 358 272 308 -14.1% 1,359 1,204 -11.5%
Required Energy 1579.2 1516.3 1789.9 13.3% 6232.4 6610.7 6.1%
Sales 1,149 1,096 1,270 10.5% 4,573 4,771 4.3%
Losses (†) 430 421 520 20.9% 1,660 1,840 10.8%
CE
MA
RLi
ght
12
4Q09
11.110.1
4Q08 4Q09
-9.0%27,8
23.6
4Q08 4Q09
-13.6%
DEC (hours)
FEC (times)
16.8
15.2
4Q08 4Q09
-9.5%
CEMAR LIGHT
6.76.1
4Q08 4Q09
-9.2%
Distribution – DEC and FEC (Last 12 months)
► CEMAR: The DEC index decreased 13.6% compared to the 4Q08 and the FEC index fell 9.5% on the same period.
► LIGHT: The DEC and FEC index decreased 9.0% and 9.2% respectively.
13
4Q09
Light Energia
Light Esco
Generation and Trading
GENERATION - Light Energia (GWh) 4Q08 3Q09 4Q09 Chg. 2008 2009 Chg.
Regulated Market Sales 295 259 275 -6.8% 1,089 1,047 -3.8%
Free Market Sales 11 30 40 265.1% 87 122 39.2%
Spot Sales (CCEE) 5 26 29 517.9% 49 98 100.2%
Total 311 314 345 10.9% 1,225 1,267 3.4%
Volume - GWh 4Q08 3Q09 4Q09 Chg. 2008 2009 Chg.
Trading 16 36 62 288.8% 108 161 49.5%
Broker 72 69 69 -3.7% 331 264 -20.2%
Total 88 105 131 49.8% 439 426 -3.0%
► The volume of electricity sold on the 4Q09 was 10.9% bigger compared to the 4Q08 figure.
► The 4Q09 sales, on Trading and Broker totaled 131 GWh, 49.8% more than in the 4Q08.
14
4Q09
► Highlights
► Operating Results
Agenda
► Introduction
► Financial Results
► Adherence to REFIS
► Recent Events
15
4Q09
Consolidated Performance
Net Operating Revenues EBITDA Net Income
43,0% 46,0%
57,0%54,0%
4Q08 4Q09
CEMAR Light
7.6%696.6647.2
46,1%60,1%
53,9% 39,9%
4Q08 4Q09
CEMAR Light
-8.5%232.0
212.1
47.7%
47.0%
5.3%
4Q08 4Q09**
CEMAR Light Holdings (*)
7.1
76.9
-90.8%
(*) Holdings: Equatorial, RME and Light S.A.
(**) In the 4Q09, CEMAR’s net result was negative.
16
4Q09
Net Operating Revenues EBITDA Net Income
Breakdown by Segment
Consolidated Performance
(*) Holdings: Equatorial, RME and Light S.A
96.0%
1.2%2.7%
Distribution Generation
Trading
6.5%
1.2% -3.2%
95.4%
Distribution Generation
Trading Holdings (*)
66.6%
6.3%
27.1%
Distribution Generation
Trading
17
4Q09
Adjusted EBITDA
Adjusted EBITDA
► Financial Additional: Positive non-recurring effect in the 4Q08 of R$26.9 million, due to the accounting of financial additional fromprior years arising from Light’s Tariff Review Process.
► Braslight Provision Reversal: Positive non-recurring effect of R$33.5 million, arising from the provision reversal of Braslightpension fund in the 4Q08.
► REFIS’ Fine Reduction: R$24.5 million positive effect in the 4Q09, due to the reduction of interest and fines through CEMAR’sadherence to the federal program.
26.9
24.5
212.1187.6
232.0
171.6
33.5
4Q08
EBITDA
Fin. Additional
Light
Provision Reversal
Braslight
Light
4Q08
EBITDA
Adjust.
4Q09
EBITDA
Adjust.
REFIS' Fine
Reduction
CEMAR
4Q09
EBITDA
9.3%
18
4Q09
Consolidated Performance
Adjusted Net Income
► Financial Additional: Net effect of R$9.2 million due to the accounting of financial additional from prior years arising from Light’sTariff Review Process.
► Braslight Provision Reversal: Net effect of R$17.5 million from the provision reversal of Braslight pension fund in the 4Q08.
► Adherence to REFIS (Light): The net effect of Light’s adherence to REFIS amounted to a positive R$19.8 million.
► Adherence to REFIS (CEMAR): Regarding CEMAR’s adherence to REFIS, the net effect was negative in R$59.0 million.
7.1
9.2
17.5 19.8
59.0
50.2
76.9
46.3
4Q08
Net Income
Fin. Additional
Light
Braslight
Effect
Light
4Q08
Adj. Net
Income
4Q09
Adj. Net
Income
Refis
Light
Refis
CEMAR
4Q09
Net Income
-7.8%
19
4Q09
Debt: Schedule of Gross Debt Maturities
Consolidated Gross Debt
(100% CEMAR + 25% Light + 25% Geranorte)
1,217.2
148.3
170.3
166.7
278.0
101.9
352.0
616.3
73.4
119.1
97.6
114.3
125.0
86.9
83.3 83.3
TOTAL Short Term 2011 2012 2013 2014 After 2014
CEMAR
Light
Geranorte
20
4Q09
(*) Not considering debt with Braslight
100% CEMAR + 25% Light +25% Geranorte
Net Debt - Consolidated
Net Debt (R$MM)(*) and Net Debt/ EBITDA
(Last 12 months)
Net Debt Reconciliation (R$MM)
1,130.0
777.6
1,112.91,199.7
805.5
1.5
1.0
1.4 1.5
1.0
4Q08 1Q09 2Q09 3Q09 4Q09
648.0
1,130.0
1,917.0
139.0
Gross Debt Regulatory
Assets
Cash Net Debt
21
4Q09
(*) Not considering debt with Braslight
Net Debt (R$MM)(*) and Net Debt/ EBITDA
(Last 12 months)
Net Debt Reconciliation (R$MM)
65.12% CEMAR + 13.03% Light + 25% Geranorte
Net Debt – Pro-Rata
425.4
719.9680.0
403.1
688.90.90.9
1.61.41.7
4Q08 1Q09 2Q09 3Q09 4Q09
424.1
688.9
1,197.3
84.3
Gross Debt Regulatory
Assets
Cash Net Debt
22
4Q09
► CEMAR: In the 4Q09, total capex reached R$132.8 million, of which R$63.6 million are own capex and R$69.2 million regarding the Light for All Program (PLPT).
► In the 4Q09, Light invested R$52.8 million, amount 23.4% higher when compared to the 4Q08 figure.
► At the final steps in the plants’ construction, Geranorte invested R$13.5 million. Currently, the plants are in commercial operation
Capex - Equatorial
CAPEX (R$MM) 4Q08 3Q09 4Q09 Chg. 2008 2009 Chg.CEMAR
Own (*) 105.6 62.2 63.6 -39.8% 278.3 239.2 -14.1%
PLPT 66.0 46.1 69.2 4.8% 187.0 179.8 -3.9%
Total 171.6 108.4 132.8 -22.6% 465.3 418.9 -10.0%
LightDistribution 30.2 31.9 37.5 24.4% 113.9 112.6 -1.1%
Generation 7.4 2.3 7.8 5.1% 12.0 13.0 8.4%
Energy Trading 0.2 0.1 0.5 0.0% 0.2 1.1 425.0%
Administration 5.1 3.0 7.1 38.2% 10.7 14.4 35.2%
Total 42.8 37.2 52.8 23.4% 136.7 141.0 3.2%
GeranorteGeneration 24.2 63.6 13.5 -44.2% 24.2 106.9 340.9%
TOTAL EQUATORIAL 238.7 209.2 199.1 -16.6% 626.2 666.8 6.5%(*) Including the indirect PLPT investments
CAPEX (R$MM) 4Q08 3Q09 4Q09 Chg. 2008 2009 Chg.CEMAR
Own (*) 105.6 62.2 63.6 -39.8% 278.3 239.2 -14.1%
PLPT 66.0 46.1 69.2 4.8% 187.0 179.8 -3.9%
Total 171.6 108.4 132.8 -22.6% 465.3 418.9 -10.0%
LightDistribution 30.2 31.9 37.5 24.4% 113.9 112.6 -1.1%
Generation 7.4 2.3 7.8 5.1% 12.0 13.0 8.4%
Energy Trading 0.2 0.1 0.5 0.0% 0.2 1.1 425.0%
Administration 5.1 3.0 7.1 38.2% 10.7 14.4 35.2%
Total 42.8 37.2 52.8 23.4% 136.7 141.0 3.2%
GeranorteGeneration 24.2 63.6 13.5 -44.2% 24.2 106.9 340.9%
TOTAL EQUATORIAL 238.7 209.2 199.1 -16.6% 626.2 666.8 6.5%(*) Including the indirect PLPT investments
23
4Q09
► Highlights
► Operating Results
Agenda
► Introduction
► Financial Results
► Adherence to REFIS
► Recent Events
24
4Q09
Adherence to REFIS
► In 2009, CEMAR and Light entered into the New REFIS, which consists of a Federal Government program to refinance
fiscal debts. The cash outlay of the installments, already net of the discounts obtained and tax credits used for
compensation, stands at R$38.5 million to CEMAR and R$80.8 million for Light (already considering the 25% stake
consolidated in Equatorial).
► It is worth noting that from the R$52.0 million of tax credits used by CEMAR R$18.0 million were considered in the 2009
results.
REFIS Impact CEMAR Light*
Debit entered into REFIS 115.3 178.6
Interest and Fines Reduction (24.8) (32.2)
Net Total 90.5 146.4
Tax Credits Offsetting (52.0) (65.6)
REFIS - Cash Outlay 38.5 80.8
* Considering the 25% consolidated by Equatorial
25
4Q09
► Highlights
►Operating Results
Agenda
► Introduction
► Financial Results
► Recent Events
► Adherence to REFIS
26
4Q09
► On December 30, 2009, FIP PCP (Equatorial’s controlling shareholder), announced the sale of its indirectstake in Light for R$785 million.
► As from February 2010, the 2 power plants in the Geranorte Project had their start up authorized by ANEELand, thus, are entitled to receive the annual fixed revenue according to the Y-3 energy auction held in 2007.
► In February 2010, CEMAR and Light entered into an Addendum to the Concession Agreement withANEEL, in which the effects of the energy market growth on sector charges are neutralized.
► Proposal of changes in the Company’s Management: Mr. Carlos Piani intends to resign to the ChiefExecutive Officer (CEO) position and will be nominated to the Presidency of the Board of Directors.Meanwhile, Mr. Firmino Sampaio, currently President of the Board of Directors, will resign, being nominatedas the Company’s CEO.
► The Board of Directors approved the distribution proposal of minimum dividends, amounting to R$ 50.8million (or R$0.47/share) in order to maintain the Company’s financial flexibility to possible deal opportunitiesin the energy sector.
Recent Events
27
4Q09
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
Contacts
28
4Q09
• 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.
Disclaimer
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