1 1Q09 Results May 07, 2009 EDP - Energias do Brasil
1
1Q09 Results
May 07, 2009
EDP - Energias do Brasil
2
Aviso Importante
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.
Disclaimer
33
Highlights of 1Q09
EBITDA: + R$ 340 mm and Net Income: + R$ 117 mm
• Gain in 1Q08 with high prices for spot market and elimination of Enersul figures: reduction of 7.6% of Net Revenue
• Energy volume sold by the generation business totaled 1,890 GWh, 23% up on 1Q08 as a result of the asset swap operation;
• Excluding Enersul´s figures, the energy volume sold to final customers by the distribution business increased 0.5% in 1Q09 compared with 1Q08, totaling 3,266 GWh
Low-risk operations: mixed growth of expansion + ef ficiency
• Increase in Moody’s ratings for the Group and its distributors with a stable outlook.
• Manageable expenses down 17.4%, dropping for the fifth quarter in a row
• Start of the “Vencer” (“WIN”) Transformation Program
• Approval of 3 credit lines: (i) BEI: R$270 mm, (ii) IDB: Pecém I and (iii) BNDES: R$ 76 million for Santa Fé SHP;
44
Consolidated Performance
55
1Q09: Consolidated financial highlights
(R$ million) 1Q09 1Q08 Chg.%
EBITDA 340.1 383.4 -11.3%
Net Income 117.3 166.4 - 29.5%
Capex 120.1 155.8 - 23.0%
EBITDA – Capex 220.1 227.6 - 3.3%
Focus on Efficiency and Cash-Flow Generation
Adjusted EBITDA 353.3 327.4 + 7.9%
Net Revenue 1,116.3 1,208.4 - 7.6%
EBITDA (adjusted) – Capex 233.3 171.6 + 35.9%
Manageable Expenses 184.9 223.8 - 17.4%
66
1Q09 EBITDA breakdown
1Q08 1Q09
176.0 176.6
17.4
383.4
353.3
340.1
327.4
70.5 94.2
57.3
73.585.2
+34%
+16%
2.8
Bandeirante
Escelsa
-11%
% YoY Changes
+8%
Enersul
EBITDA stable in Generation due to the Asset Swap; Distribution with double-digit growht
Adjusted EBITDAAdjusted EBITDA excludes:
• 1Q09: R$ 13.2 MM of Vencer Project
• 1Q08: R$ 56 MM of more energy avalilable from generation
Generation
Distribution
Commercialization
7
Manageable expenditures: dropped for the fifth quar ter in a row
Among the fourth quarter 2007and the first quarter 2009, th e averagereduction in Manageable Expenditures was 7.2%
7
Total of Manageable Expenses
(R$ million)
Personnel
- 5.8%
-
-
-
Total ( - ) Depreciation
Third Party Services
Material
Others
277.7
203.9
1Q09
257.0
184.9
303.2
8.4
53.9
87.1
CAGR 1Q08-1Q09
Depreciation and Amortization 79.3 -
-74.5
6.6
60.5
72.1
75.9
41.9
-17.4%
1Q08∆ 1Q08 /
1Q09
223.8 206.3 198.5
4Q07
248.9
4Q083Q082Q08
326,2 278.9289.4 -15.2%
-21.5%
-30.5%
-9.1%
1.8%
-22.2%
- 7.2%
88
Generation
9
1Q08 1Q09
1Q08 1Q09 1Q08 1Q09
1Q08 1Q09
9
Generation performance reflects the asset swap and lower dispatch of energy
Energest
Lajeado Total
Enerpeixe1,538 1,891
542561
693
284
553
176.0
1679
33105
55
64
6
28
34
29
-14%
60
39
219
+6.5%
795
5374
119
26
80
100
233
-33%
-28%
+285%
176.6
-39%
-40%
+394%
+0.3%
+367%
-13%
-52%
10691
+23%
-20%
-3%
+180%
� Minority Shareholders
Volume of Energy Sold (GWh)Volume of Energy Sold (GWh) Net Revenue (R$ mm)Net Revenue (R$ mm)
EBITDA (R$ mm)EBITDA (R$ mm) Net Income (R$ mm)Net Income (R$ mm)
1010
Distribution
11
2,113 1,592
3,2663,250
1Q08 1Q09
11
Decrease in captive industrial was offset by resident ial/commercial classes and lower free customers consumption
Despite of the decline in free customers consumptio n, the lower volume did not reflect the contracted energy
Volume Breakdown (GWh)Volume Breakdown (GWh)
1Q09 highlights :
• Rural: Growth was mainly driven by Escelsa in high temperatures and low rainfall (Escelsa)
• Free Customers: The discos also collects the appropriate sector charges, which are then passed on to other entities and calculated on the basis of energy consumption in MWh
• Increase in customer base of 3.7%
• The distributor has a six-month period to grant the reduction in demand
• Process canceled by a Escelsa´s important client that was negotiating demand reduction
94
5,456
106
4,964
Free Customers
Captive Customers
Others
+ 13%
- 25%
+0.5 %
-9%
12
1Q08 1Q09 1Q08 1Q09
1Q08 1Q091Q08 1Q09
Net Income (R$ mm)Net Income (R$ mm)
12
EBITDA increased 25% due to the increase in average tarif f
EBITDA (R$ mm)EBITDA (R$ mm)
Net Revenue (R$ mm)Net Revenue (R$ mm)
Escelsa
Enersul
Bandeirante
+12%
760Excluding Enersul
978838
334310
450
218
+8%
504
-14%838
+ 10%
+6%
131Excluding Enersul
190140
5753
78
59
+8%
83
-27%
140
+ 6%
+32%
144Excluding Enersul
201 180
8574
71
57+15%
94
-10%
180
+ 25%
+50%
63Excluding Enersul
8582
3733 +12%
45
82
+ 30%
Manageable Expenditures (R$ mm)Manageable Expenditures (R$ mm)
-4%
30
22
R$ 4.5M
R$ 3.7M
“Vencer” Program
1313
Total losses increased by 0.5 p.p. as a result of the distri buted energy volume reduction
dec 07 dec 08 mar 09
BandeiranteBandeirante
dec 07 dec 08 mar 09 dec 07 dec 08 mar 09
EscelsaEscelsa ENBR - ConsolidatedENBR - Consolidated
11,9% 12,1% 12,2% 12,0% 12,5%
CommercialTechnical
Commercial Losess (%)
Total Energy Losses (%)Total Energy Losses (%)
6.6 6.4 6.6 6.6 6.7
5.5 5.7 5.6 5.4 5.8
mar 08 jun 08 sep 08 dec 08 mar 09
5.7% 5.5% 5.8%6.0%
5.2%5.8% 5.8% 5.4% 5.8%
� Opex and Capex: ~ R$ 9.1 mm disbursed in programs for controlling losses
� 42 thousand inspections; dismantling of nearly 23 thousand illegal hook-ups
�Revenue recovery: ~ R$ 5.5 million originated from recovery of unpaid bills
1414
Commercialization
15
17
3
1Q08 1Q09
12
3
1Q08 1Q09
194 175
1Q08 1Q09
15
Volume reduction due to the flexibility in contract s and lower short term selling prices
Volume of Commercialized Energy (GWh)Volume of Commercialized Energy (GWh) Net Revenue (R$ mm)Net Revenue (R$ mm)
EBITDA (R$ mm)EBITDA (R$ mm) Net Income (R$ mm)Net Income (R$ mm)
� Reduction because of the flexibility envisaged in the sales contracts for accommodating fluctuations in consumption.
- 10%
� Lower selling price in 1Q09 due to the high spot market prices in 1Q08
-84%- 77.4%
1Q08 1Q09
1,788 1,726
Others
Group companies
- 3.5%
218 177
1,570 1,550
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ConsolidatedInvestment and Debt
17
2009e 2010e 2011e
Repowering
Distribution
Others
Santa Fé
Pecém
17
Consolidated Capex Breakdown
Investment Plan regards more than R$ 3.0 billion fro m 2009 to 2011.
+ R$ 3.0 billion
18%
34%
R$ 1.1m R$ 1.1m
R$ 0.84m
41%28%
4%
18%34%
24%
33%30%
6% 4%
Generation
EnergestEnerpeixe
Santa FéLajeado/Investco
1Q08 1Q09 ∆%
Distribution 107.6 -37.9
52.0 8.3%
Others 1.2 377.0
Investments (R$ mm)
Pecém
0.9 -70.229.321.4 -26.8
1.4 -79.214.6 -2.413.7 n.d.
Bandeirante 25.8 -4,8Escelsa 41.0 -13.9Enersul
66.8
48.0
0.3
3.0
0.8 14.9
-
27.247.6 32.8- n.a.
18
481 471334
729
423
923
1.9632.131
1.680
2.390 2.348
1,81,7 1,4
1,8 1,8
0
1 .000
2 .000
-1-101122334455
Net Debt/EBITDA (x)
Net Debt Evolution
(R$ MM)
Set/08Jun/08Mar/08
Net DebtNet Debt/EBITDA
Debt Maturity Schedule
Cash and Cash Equivalents
(Mar/09)
2009 2010 20122011 After2012
Gross Debt Breakdown
(Mar/09)
Dez/08
* Includes CDI and IGP-M
Low FX exposure and stable debt
Mar/09
2,140 2,348 2,390
797(423) (165)
2,937
Div ida Bruta Caixa At. Reg Dív ida Líquida Div . L iq. Dez/08Gross Debt(Mar/09)
Cash and Marketable Securities
Regulatory Assets and Liabilities
Net Debt(Mar/09)
Net Debt(Dec/08)
38%
49%
5%
8%
Floating Rates *
TJLP
Fixed Rates
US$
383*
806
(*) Shares in treasury as of market price on March 31, 2009
19
Cash and Marketable Securities(Mar/09)
Porto doPecémBridgeLoan
423280
923257
Credit Line Distribution
174
212
Generation Total2009
383 *
(*) Shares in treasury as of market price on March 31, 2009
806
Short Term Debt Breakdown
- Postpone of the payment date of Porto do Pecém Credi t Line from April 30, 2009 to July 29, 2009
- Amortization of R$ 83 million of Bandeirante ´s debentures
20
Institution Total approved Limit date to use the resource
Approved credit lines (Apr-09)
Total of credit lines 3,246
BNDES / IDB (Porto do Pecém) 2,000 2009
BNDES - CALC 900 2014
BEI 270* 2012
(R$ million)
Used
0
0
0
2,000
900
270
Available
3,246
BNDES (PCH Santa Fé) 76 20090 76
EDP Energias do Brasil – Credit Limits
* Credit line totaled EUR 90 million (EUR45 each di stribution company)
Besides these short term credit lines, EDP Energias do Brasil has others lower value pre-approved cred it line
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Visit EDP Energias do Brasil website
Site: www.enbr.com.br
Mayte S. D. de Albuquerque
Cleverson Murakawa
Rogério Pacheco
E-mail: [email protected]
Phone: +55 11 2185-5907
Investor Relation Department